Document:

Exhibit 10.1

EXECUTION
COPY

DISTRIBUTION AGREEMENT

By and Among

TMCT, LLC,

TRIBUNE COMPANY,

CANDLE HOLDINGS
CORPORATION,

FORTIFY HOLDINGS
CORPORATION,

CHANDLER TRUST NO.
1,

and

CHANDLER
TRUST NO.2

September 21, 2006

 

 

DISTRIBUTION
AGREEMENT

This Distribution Agreement (the “Agreement”), dated as of September
21, 2006, is by and among TMCT, LLC, a Delaware limited liability company (the “Company”),
Tribune Company, a Delaware corporation (“Tribune”), Candle Holdings
Corporation, a Delaware corporation (“Candle”), Fortify Holdings Corporation, a
Delaware corporation (“Fortify” and, collectively with Tribune and Candle, the “Tribune
Members”), Chandler Trust No. 1 (“Trust 1”) and Chandler Trust No. 2 (“Trust 2”
and, collectively with Trust 1, the “Trust Members”).  The Tribune Members and the Trust Members are
collectively referred to herein as the “Members.”  Capitalized terms used herein but not
otherwise defined shall have the meanings ascribed to them in the Limited
Liability Company Agreement of the Company, dated as of August 8, 1997 (the “Operating
Agreement”).

R E C I
T A L S

WHEREAS, the Company desires to
make a distribution to Tribune (the “Distribution”); and

WHEREAS,
concurrently with the Distribution, the Members desire to amend and restate the
Operating Agreement.

A G R E E M E N T

NOW, THEREFORE, in
consideration of the mutual promises, covenants and conditions hereinafter set
forth, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

Distribution

1.1          Distribution.  On the Closing Date (as defined below), the
Company shall make a distribution to Tribune in respect of the Interest held by
Tribune by delivering to Tribune (a) certificates representing 9,719,780
shares of the common stock, $.01 par value per share, of Tribune (the “Common
Stock”) and (b) certificates representing 442,596 shares of the Series C
Preferred Stock, no par value, of Tribune (the “Preferred Stock).  All such shares shall be distributed,
transferred and delivered to Tribune free and clear of any lien (statutory or
other), claim, charge, security interest, pledge, hypothecation, assignment,
conditional sale or other title retention agreement, preference, priority or
other security agreement or preferential arrangement of any kind or
nature.  Concurrently with the
Distribution, the Members will enter into an Amended and Restated Limited
Liability Company Agreement for the Company in the form attached hereto as
Exhibit A (the “Amended Operating Agreement”). 
Each of the Members acknowledges and agrees that the sole interest of
such Member in the Company following the Closing Date shall be the Interest of
such Member as provided in, and governed by, the terms of the Amended Operating
Agreement.

1.2          Consent to Transactions.  For all purposes of the Operating Agreement,
including, without limitation, Section 6.5 of the Operating Agreement, each of
the Members hereby agrees and consents to the transactions described in this
Agreement,

 1
 

 

 

including, without limitation, the
Distribution.  Each of the Members
further agrees to execute and deliver the Amended Operating Agreement in order
to carry out the purpose and intent of this Agreement.  Each of the Members (other than Tribune)
acknowledges that the Distribution provided for in this Agreement is being made
solely to Tribune and hereby waives any right it may have to receive a
concurrent distribution in accordance with the provisions of Article IX of
the Operating Agreement due to or on account of the Distribution.

1.3          Continuation of Company.  Each of the Members hereby agrees that at all
times relevant hereto the Company shall continue and shall not be dissolved or
deemed dissolved or terminated due to or on account of the Distribution or any
of the transactions herein or any other reason. 
Each of the Members agrees that it will not claim or assert in any forum
a position which is contrary to the purpose and intent of this Section 1.3.

ARTICLE II

Closing

2.1          Closing Date and Location.  Subject to the provisions of this Agreement,
the closing of the transactions contemplated hereby (the “Closing”) shall be
held on September 22, 2006 or at such other time on or before September 22,
2006 as may be mutually agreed upon in writing by the parties.  The date of the Closing is sometimes referred
to herein as the “Closing Date.”  The
Closing shall take place at the Offices of Gibson, Dunn & Crutcher LLP, 333
South Grand Avenue, Los Angeles, California 
90071.

2.2          Deliveries by the Tribune Members.  In addition to, and without limiting any
other provision of this Agreement, the Tribune Members agree to deliver or
cause to be delivered to the Company and the Trust Members at or prior to the
Closing the following:

(a)           Authorizations.  Certified resolutions of the Board of
Directors of each of the Tribune Members authorizing the execution, delivery
and performance of this Agreement and the transactions contemplated herein; and

(b)           Amended Operating Agreement.  A copy of the
Amended Operating Agreement duly executed by each of the Tribune Members.

2.3          Deliveries by the Company  In addition to, and without limiting any
other provision of this Agreement, the Company agrees to deliver or cause to be
delivered at or prior to the Closing the share certificates to Tribune
described in Section 1.1, in the amounts and at the times indicated in Section
1.1, together with any stock or other applicable powers, duly executed on
behalf of the Company, as may be necessary to register the transfer of the
shares represented by such certificates.

2.4          Deliveries by the Trust Members  In addition to, and without limiting any
other provision of this Agreement, the Trust Members agree to deliver or cause
to be

 2
 

 

 

delivered to the Company and the Tribune
Members at or prior to the Closing a copy of the Amended Operating Agreement
duly executed by each of the Trust Members.

2.5          Conditions Precedent.

(a)           Conditions to Obligations of the Company.  The obligation of the Company to consummate
the transactions provided for hereby are subject to the satisfaction, on or
prior to the Closing Date, of each of the following conditions, any of which
may be waived by the Company:  (i) the
representations and warranties made by the Members herein shall be true and
correct in all material respects as of the date hereof and (ii) the Members
shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by the Members hereunder through and including the Closing Date,
and shall have obtained all approvals, consents and qualifications necessary to
complete the transactions described herein.

(b)           Conditions to Obligations of the Tribune Members.  The obligation of the Tribune Members to
consummate the transactions provided for hereby are subject to the
satisfaction, on or prior to the Closing Date, of each of the following
conditions, any of which may be waived by the Tribune Members:  (i) the representations and warranties made
by the Company and the Trust Members herein shall be true and correct in all
material respects as of the date hereof and (ii) the Company and the Trust
Members shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by the Company and the Trust Members hereunder through and
including the Closing Date, and shall have obtained all approvals, consents and
qualifications necessary to complete the transactions described herein.

(c)           Conditions to Obligations of the Trust Members.  The obligation of the Trust Members to
consummate the transactions provided for hereby are subject to the
satisfaction, on or prior to the Closing Date, of each of the following
conditions, any of which may be waived by the Trust Members:  (i) the representations and warranties made
by the Company and the Tribune Members herein shall be true and correct in all
material respects as of the date hereof and (ii) the Company and the Tribune
Members shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by the Company and the Tribune Members hereunder through and
including the Closing Date, and shall have obtained all approvals, consents and
qualifications necessary to complete the transactions described herein.

ARTICLE III

Representations And Warranties

3.1          Representations and Warranties of
Tribune Members. 
Each of the Tribune Members, jointly and severally, represents and
warrants to the Company and the Trust Members as follows:

 3
 

 

 

(a)           Organization and Good Standing.  Each of the Tribune Members is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all
requisite corporate power and authority to own its properties and assets and to
carry on its business as now conducted and as presently proposed to be
conducted.

(b)           Due Authorization.  All corporate action on the part of each of
the Tribune Members, its officers, directors and stockholders necessary for the
authorization, execution and delivery of, and the performance of all
obligations of such Tribune Member under, this Agreement has been taken.  Each of the Tribune Members has duly
authorized, executed and delivered this Agreement, and this Agreement is a
valid and binding obligation of each of the Tribune Members enforceable in
accordance with its terms, subject, as to enforcement of remedies, to
applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
affecting creditors’ rights generally and to general equitable principles.

(c)           No Conflicts.  Neither the execution and delivery of this
Agreement or the consummation of any of the transactions contemplated hereby,
nor compliance with or fulfillment of the terms, conditions and provisions
hereof, by any of the Tribune Members will conflict with, result in a breach of
the terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under (a) the certificate of incorporation,
by-laws or other constitutional documents of such Tribune Member (b) any
material agreement, note, instrument, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which such
Tribune Member is a party or any of its respective assets or business is
subject or by which such Tribune Member is bound, (c) any order, writ,
injunction or decree to which such Tribune Member is a party or any of its
assets or business is subject or by which such Tribune Member is bound or (d)
any applicable laws affecting such Tribune Member or its respective assets or
business.

(d)           Consents.  No consent, approval
or authorization of, declaration to, or filing or registration with, any
governmental or regulatory authority, or any other person, is required to be
made or obtained by the Tribune Members or any of their affiliates in
connection with the execution, delivery and performance by the Tribune Members
of this Agreement and the consummation of the transactions contemplated hereby,
other than filings that Tribune may make pursuant to the requirements of the
Securities Exchange Act of 1934, as amended.

(e)           Representations of Tribune as Managing
Member.

(i)            Financial Statements.  Tribune heretofore has delivered to the
Members true and correct copies of (A) the Company’s audited balance sheets
dated as of December 31, 2004 and December 31, 2005 and (B) the related
statements of the Member’s capital accounts for each of the years ended
December 31, 2004 and December 31, 2005 (collectively, the “Financial
Statements”).  The Financial Statements (1) have been prepared in all
respects in accordance with the terms of the Operating Agreement (except that
all Financial Statements have been prepared on a tax basis not in accordance

 4
 

 

 

with generally accepted accounting
principles), (2) are in accordance with the books and records of the Company
and (3) fairly present the financial position of the Company as of the
respective dates thereof.  The Company
keeps books, records and accounts that, in reasonable detail, accurately and
fairly reflect in all material respects the transactions and dispositions of
assets of the Company.

(ii)           Schedule of Members.  Attached hereto as Exhibit B is a true,
complete and accurate copy of the Schedule of Members as of the date hereof as
required by the Operating Agreement.

(iii)         Compliance with Operating
Agreement.  To the
knowledge of Tribune, since January 1, 2005, the Company has been operated in
compliance with the Operating Agreement in all material respects.

(iv)          Tax Elections.  No election under Section 754 of the Internal
Revenue Code of 1986, as amended (the “Code”), is in effect with respect to the
Company.

(f)            Rights Plan.  None of the transactions contemplated
hereby, or the direct or indirect acquisition of beneficial ownership of
additional securities of Tribune by the Company or the Trust Members as a
result of the consummation of the transactions contemplated hereby, shall cause
either of the Trust Members or the Company to be an “Acquiring Person” pursuant
to that certain Rights Agreement, between Tribune and First Chicago Trust
Company of New York, dated as of December 12, 1997 and as amended by Amendment
No. 1 on June 12, 2000 and Amendment No. 2 on September 21, 2006 (the “Rights
Plan”).

3.2          Representations and Warranties of
Trust Members. 
Each of the Trust Members, jointly and severally, represents and
warrants to the Company and the Tribune Members as follows:

(a)           Due Authorization.  All action on the part of each of the Trust
Members and its trustees necessary for the authorization, execution and
delivery of, and the performance of all obligations of such Trust Members
under, this Agreement has been taken. 
Each of the Trust Members has duly authorized, executed and delivered
this Agreement, and this Agreement is a valid and binding obligation of each of
the Trust Members enforceable in accordance with its terms, subject, as to
enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors’ rights generally and to
general equitable principles.

(b)           No Conflicts.  Neither the execution and delivery of this
Agreement or the consummation of any of the transactions contemplated hereby,
nor compliance with or fulfillment of the terms, conditions and provisions
hereof, by any of the Trust Members will conflict with, result in a breach of
the terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under (a) the constitutional documents of such
Trust Member, (b) any material agreement, note, instrument, mortgage, lease,
license, franchise, permit or other authorization, right, restriction or

 5
 

 

 

obligation to which such Trust Member is a
party or any of its respective assets or business is subject or by which such
Trust Member is bound, (c) any order, writ, injunction or decree to which such
Trust Members is a party or any of its assets or business is subject or by
which such Trust Members is bound or (d) any applicable laws affecting such
Trust Members or its respective assets or business.

(c)           Consents.  No consent, approval
or authorization of, declaration to, or filing or registration with, any
governmental or regulatory authority, or any other person, is required to be
made or obtained by the Trust Members or any of their affiliates in connection
with the execution, delivery and performance by the Trust Members of this
Agreement and the consummation of the transactions contemplated hereby.

(d)           Lack of Knowledge of Certain
Actions.  To
the knowledge of each Trust Member (i) the Company, since January 1, 2005,
has been operated in compliance with the Operating Agreement in all material
respects and (ii) Tribune has not engaged at any time prior to the date of this
Agreement, and is not currently engaged as of the date hereof, in any
misconduct in its capacity as Managing Member of the Company.

3.3          Representations and Warranties of
the Company. 
The Company represents and warrants to the Tribune Members and the Trust
Members as follows:

(a)           Organization and Good Standing.  The Company is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all
requisite power and authority to own its properties and assets and to carry on
its business as now conducted and as presently proposed to be conducted.

(b)           Due Authorization.  All action on the part of the Company, its
officers, managers and members necessary for the authorization, execution and
delivery of, and the performance of all obligations of the Company under, this
Agreement has been taken.  The Company
has duly authorized, executed and delivered this Agreement, and this Agreement
is a valid and binding obligation of the Company enforceable in accordance with
its terms, subject, as to enforcement of remedies, to applicable bankruptcy,
insolvency, moratorium, reorganization and similar laws affecting creditors’
rights generally and to general equitable principles.

(c)           No Conflicts.  Neither the execution and delivery of this
Agreement or the consummation of any of the transactions contemplated hereby,
nor compliance with or fulfillment of the terms, conditions and provisions
hereof, by the Company will conflict with, result in a breach of the terms,
conditions or provisions of, or constitute a default, an event of default or an
event creating rights of acceleration, termination or cancellation or a loss of
rights under (a) the certificate of formation or other constitutional documents
of the Company, (b) any material agreement, note, instrument, mortgage, lease,
license, franchise, permit or other authorization, right, restriction or
obligation to which the Company is a party or any of its respective assets or
business is subject or by which the Company is bound, (c) any order, writ,
injunction or decree to which the Company is a party or any of its assets or
business is subject or by

 6
 

 

 

which the Company is bound or (d) any
applicable laws affecting the Company or its respective assets or business.

(d)           Consents.  No consent, approval
or authorization of, declaration to, or filing or registration with, any
governmental or regulatory authority, or any other person, is required to be
made or obtained by the Company or any of their affiliates in connection with
the execution, delivery and performance by the Company of this Agreement and
the consummation of the transactions contemplated hereby.

ARTICLE IV

Covenants of the Parties

4.1          Further Assurances.  The parties hereto shall execute and deliver
such other documents, certificates, agreements and other writings and shall
take such other actions as may be reasonably necessary or desirable in order to
consummate or implement expeditiously the transactions contemplated by this
Agreement, including, without limitation, the transfer to the Tribune Members
of ownership of the shares as provided in Section 1.1.

4.2          Confidentiality; Public Announcements.  The parties hereto shall use their best
efforts to keep this Agreement and the execution and terms hereof confidential,
and shall consult with each other before issuing any press release or making
any public statement with respect to this Agreement or the transactions
contemplated hereby.  The foregoing
obligations of confidentiality do not pertain to the disclosure of information
which is available publicly, is required to be disclosed by any court or any party
discloses, upon advice of counsel, in order to comply with applicable law or
the applicable rules of the New York Stock Exchange.  The parties agree to jointly prepare and to
distribute (singly or jointly) a press release disclosing the execution and
delivery of this Agreement and the substance of the transactions contemplated
hereby.

4.3          Tax Matters.

(a)           Treatment of Distribution.  All payments to Tribune pursuant to this
Agreement shall be treated as distributions pursuant to Section 731(a) and
Section 732(a) of the Code and the corresponding provisions of any applicable
state or local tax laws.

(b)           Allocations.  Each of the Tribune Members’ distributive
share of the Company’s income, gain, loss and deduction for the taxable year of
the Company that includes the Closing Date shall be determined on the basis of
an interim closing of the books of the Company as of the close of business on
the Closing Date.  Such items shall be
allocated to the Members based on the Operating Agreement in effect prior to the
Closing Date.  Furthermore, all cash held
back by the Company that is attributable to income earned or accrued prior to
the Closing Date shall be distributed to the Members on or before December 14,
2006 in accordance with Article IX of the Operating Agreement as in effect
prior to the Closing Date.  For the month
of September 2006, ordinary income, rent and dividends from the Properties,
Fixed Income Portfolio and

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Equity Portfolio shall be pro-rated based on
the number of days before, up to and including the Closing Date and the number
of days after the Closing Date.  The
parties have tried to reflect all allocations and distributions from the
operations of the Company from January 1, 2006 until the Closing Date in the
Capital Accounts as described in subsection (d)(ii) below.  To the extent that the ultimate allocations
of the Company’s gain, loss, income or deduction for the period January 1, 2006
until and including the Closing result in Capital Account balances immediately
prior to the Distribution (having given effect to all such allocations as well
as the allocations of unrealized gain or loss as described in subsection
(d)(ii) below) that are different than the Capital Account balances agreed to
by the parties pursuant to subsection (d)(ii) below, the relevant Members shall
contribute cash to the Company or the Company shall distribute cash to the
relevant Members to the extent necessary to eliminate such discrepancies.  The parties agree to effect the foregoing
promptly once the Company has obtained the information to enable the necessary
computations.  The parties shall
cooperate in good faith in obtaining the necessary information and making the
foregoing determinations.

(c)           Tax Returns.  The parties shall each file all required
Federal, state and local income tax returns and related returns and reports in
a manner consistent with the foregoing provisions of this Agreement.

(d)           Capital Accounts.  For
purposes of determining pre-Distribution and post-Distribution Capital
Accounts, as defined in section 4.3 of the Operating Agreement, the parties
hereby agree as follows:

(i)            The fair market values of the assets of the
Company immediately prior to the Distribution are as follows:

	
  Real Estate

  	
   

  	
  $

  	
  175,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fixed Income Portfolio

  	
   

  	
  $

  	
  192,968,411

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Equity Portfolio

  	
   

  	
  $

  	
  66,769,484

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trust Portfolio

  	
   

  	
  $

  	
  53,455,594

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tribune Common Stock

  	
   

  	
  $

  	
  387,478,352

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tribune
  Preferred Stock

  	
   

  	
  $

  	
  208,366,195

  	
   

  

 

(ii)           The Company shall compute gain and
loss with respect to such assets as if such assets were to be sold for their
agreed fair market values set forth above. 
Any gain or loss shall be allocated to the Members in accordance with
Article VIII of the Operating Agreement. 
Based on such allocations, the parties agree that the resulting Capital
Accounts immediately prior to the Distribution shall be as follows:

	
  Tribune

  	
   

  	
  $

  	
  535,631,187

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Candle

  	
   

  	
  $

  	
  1,129,570

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fortify

  	
   

  	
  $

  	
  1,129,570

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trust 1

  	
   

  	
  $

  	
  483,105,790

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trust
  2

  	
   

  	
  $

  	
  63,021,921

  	
   

  

 

 8
 

 

 

(iii)         The fair market value of the Common Stock to be
distributed to Tribune pursuant to Section 1.1 is $301,215,978 and the fair
market value of the Preferred Stock to be distributed to Tribune pursuant to
Section 1.1 is $208,366,195 (the sum of such amounts, the “Aggregate
Distribution”).  Tribune’s Capital
Account immediately prior to the Distribution, as agreed above, shall be
reduced by the Aggregate Distribution. 
There shall be no changes to the Capital Accounts of the other Members
as described above.

(iv)          Immediately after the Distribution,
the Members’ Capital Accounts will be as follows:

	
  Tribune

  	
   

  	
  $

  	
  26,049,013

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Candle

  	
   

  	
  $

  	
  1,129,570

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fortify

  	
   

  	
  $

  	
  1,129,570

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trust 1

  	
   

  	
  $

  	
  483,105,790

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trust
  2

  	
   

  	
  $

  	
  63,021,921

  	
   

  

 

4.4          Indemnification by Tribune.

(a)           Indemnification.  Subsequent to the Closing, Tribune shall
indemnify the Company, the Trust Members and their respective affiliates (“Indemnified Parties”) against, and
hold each of the Indemnified Parties harmless from, any damage, claim, loss,
cost, liability or expense, including without limitation, interest, penalties,
reasonable attorneys’ fees and expenses of investigation, consequential
damages, response action, removal action or remedial action (collectively “Damages”) incurred by such
Indemnified Party that arise out of or relate to, whether directly or
indirectly, the willful misconduct of Tribune in its capacity as Managing
Member of the Company during any period prior to the Closing.  Notwithstanding anything contained herein to
the contrary, (i) the rights of Tribune to exculpation, indemnification,
expense reimbursement or insurance in accordance with the terms of the
Operating Agreement shall not be adversely affected or reduced by the
provisions of this Section 4.4 and (ii) the foregoing indemnification
provisions are in addition to, and not in derogation of, any statutory,
equitable or common law remedy any party may have for breach of representation,
warranty, covenant or agreement.

(b)           Procedures.  Any Indemnified Party seeking indemnification
hereunder shall give to Tribune a notice (a “Claim Notice”) describing in reasonable detail the facts giving
rise to any claims for indemnification hereunder and shall include

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in such Claim Notice (if then known) the
amount or the method of computation of the amount of such claim; provided, that a Claim Notice in respect of any action at
law or suit in equity by or against a third person as to which indemnification
will be sought shall be given promptly after the action or suit is commenced;
and provided further, that failure to give
such notice shall not relieve Tribune of its obligations hereunder except to
the extent it shall have been prejudiced by such failure.  Tribune shall have thirty days after the
giving of any Claim Notice pursuant hereto to (i) agree to the amount or
method of determination set forth in the Claim Notice and to pay such amount to
such Indemnified Party in immediately available funds or (ii) to provide
such Indemnified Party with notice that it disagrees with the amount or method
of determination set forth in the Claim Notice (the “Dispute Notice”).  Within fifteen days after the giving of the
Dispute Notice, a representative of Tribune and such Indemnified Party shall
negotiate in a bona fide attempt to resolve the
matter.  In the event that the
controversy is not resolved within thirty days of the giving of the Dispute
Notice, the parties shall proceed to binding arbitration pursuant to the
following procedures:

(1)           Any
party may send another party written notice identifying the matter in dispute
and invoking the procedures of this Section 4.4(b).  Within 14 days, each party involved in the
dispute shall meet at a mutually agreed location in Denver, Colorado, for the
purpose of determining whether they can resolve the dispute themselves by
written agreement, and, if not, whether they can agree upon a third-party
arbitrator to whom to submit the matter in dispute for final and binding
arbitration.

(2)           If
such parties fail to resolve the dispute by written agreement or agree on the
arbitrator within said 14-day period, any such party may make written
application to the American Arbitration Association (“AAA”) for the appointment
of a panel of three arbitrators (collectively, the “Arbitrator”) to resolve the
dispute by arbitration.  At the request
of AAA the parties involved in the dispute shall meet with AAA at its offices
within ten calendar days of such request to discuss the dispute and the
qualifications and experience which each party respectively believes the
Arbitrator should have; provided,
however, that the selection of
the Arbitrator shall be the exclusive decision of AAA and shall be made within
30 days of the written application to AAA.

(3)           Within
120 days of the selection of the Arbitrator, the parties involved in the
dispute shall meet in Denver, Colorado with such Arbitrator at a place and time
designated by such Arbitrator after consultation with such parties and present
their respective positions on the dispute. 
The arbitration proceeding shall be held in accordance with the rules
for commercial arbitration of the AAA in effect on the date of the initial
request for appointment of the Arbitrator, that gave rise to the dispute to be
arbitrated (as such rules are modified by the terms of this Agreement or may be
further modified by mutual agreement of the parties).  Each party shall have no longer than five
days to present its position, the entire proceedings before the Arbitrator
shall be no more than ten consecutive days, and the decision of the Arbitrator
shall be made in writing no more than 30 days following the end of the
proceeding.  Such an award shall be a
final and binding determination of the dispute and shall be fully enforceable
as an arbitration decision in any court having jurisdiction and venue over such
parties.  The prevailing party (as
determined by the Arbitrator) shall in addition be awarded by the Arbitrator

 10
 

 

 

such party’s own attorneys’ fees and expenses
in connection with such proceeding.  The
non-prevailing party (as determined by the Arbitrator) shall pay the Arbitrator’s
fees and expenses.

(c)           Third Person Claims.  If a claim by a third person is made against
an Indemnified Party, and if such party intends to seek indemnity with respect
thereto under this Section 4.4, such Indemnified Party shall promptly notify
Tribune in writing of such claims, setting forth such claims in reasonable
detail.  Tribune shall have 20 days after
receipt of such notice to undertake, conduct and control, through counsel of
its own choosing and at its own expense, the settlement or defense thereof, and
the Indemnified Party shall cooperate with it in connection therewith; provided that the Indemnified Party may participate in such
settlement or defense through counsel chosen by such Indemnified Party and paid
at its own expense; and provided further
that, if in the opinion of counsel for such Indemnified Party, there is a
reasonable likelihood of a conflict of interest between Tribune and the
Indemnified Party, Tribune shall be responsible for reasonable fees and
expenses of one counsel to such Indemnified Party in connection with such
defense.  So long as Tribune is
reasonably contesting any such claim in good faith, the Indemnified Party shall
not pay or settle any such claim without the consent of Tribune.  If Tribune does not notify the Indemnified
Party within ten days after receipt of the Indemnified Party’s notice of a
claim of indemnity hereunder that it elects to undertake the defense thereof,
the Indemnified Party shall have the right to undertake, at Tribune’s cost,
risk and expense, the defense, compromise or settlement of the claim but shall
not thereby waive any right to indemnity therefore pursuant to this
Agreement.  Tribune shall not, except
with the consent of the Indemnified Party, enter into any settlement that does
not include as an unconditional term thereof the giving by the person or
persons asserting such claim to all Indemnified Parties of an unconditional
release from all liability with respect to such claim or consent to entry of
any judgment.

4.5          Rights
Agreement.  Tribune shall
take all action reasonably necessary in order to prevent the Company or the
Trust Members from becoming “Acquiring Persons” under the Rights Plan as a
result of the consummation of the transactions contemplated hereby.

4.6          Post-Closing Distribution; Voting.

(a)           No
later than 30 days following the Closing Date, the Trust Members shall cause
the Company to distribute all shares of Common Stock held by the Company to the
Members in accordance with their Percentage Interests.

(b)           The Trust Members agree that, for a
period beginning on the date of such distribution and ending on the first
anniversary of such distribution, with respect to any proposal submitted for
approval to the stockholders of Tribune (including any proposal for the
election of directors), the Trust Members shall vote, or cause to be voted, all
shares of Common Stock distributed to the Trust Members pursuant to Section
4.6(a) for or against, or abstain or withhold from voting, in the same proportion
as the capital stock of Tribune held by all Tribune stockholders is voted with
respect to such proposal.  In addition,
each Trust Member agrees that it will not grant a proxy with respect to the
shares of Common Stock distributed to it pursuant to Section 4.6(a) that is
inconsistent

 11
 

 

 

with this Section 4.6(b).  In the event that, at any time that the
provisions of this Section 4.6 remain in effect, any of the shares of
Common Stock subject to this Section 4.6 are distributed to beneficiaries of the
Trust Members, the Trust Members, as a condition to any such distribution,
shall cause such beneficiaries to agree to vote such shares in accordance with
this Section 4.6.

ARTICLE V

Miscellaneous

5.1          Transaction Costs.  Except as otherwise provided herein or
otherwise agreed to by the parties, each party to this Agreement shall pay all
of its costs and expenses (including attorneys’ fees and other legal costs and
expenses and accountants’ fees and other accounting costs and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby.

5.2          Entire Agreement.  This Agreement (including the Exhibits
hereto) represents the entire understanding and agreement among the parties
with respect to the subject matter hereof, and supersedes all other
negotiations, understandings and representations (if any) made by and among
such parties.

5.3          Amendments.  The provisions of this Agreement may not be
amended, supplemented, waived or changed orally, but only by a writing signed
by each of the parties.

5.4          Assignments.  This Agreement shall be binding on and inure
to the benefit of the successors and assigns of the parties to this
Agreement.  No party hereto shall assign
its rights or obligations under this Agreement without the prior written consent
of the other parties to this Agreement, which consent shall not be unreasonably
withheld.

5.5          Headings.  The headings
contained in this Agreement are for convenience of reference only, are not to
be considered a part hereof and shall not limit or otherwise affect in any way
the meaning or interpretation of this Agreement.

5.6          Notices.  Any notice or communication hereunder must be
in writing and will be deemed to have been duly given when (a) delivered by
hand (with written confirmation of receipt), (b) sent by telecopier (with
written confirmation of receipt), provided that a copy is mailed by registered
mail, return receipt requested, or (c) received by the addressee, if sent by
United States mail or by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and telecopier
numbers set forth in Section 15.2 of the Amended Operating Agreement.  Notices or other communications given to one
party hereunder shall be simultaneously given to all other parties hereunder.

5.7          Severability.  If any provision of this Agreement or the
application of any such provisions to any person or circumstance shall be held
invalid, illegal, or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality, or unenforceability shall not affect
any other provision of the Agreement.

 12
 

 

 

5.8          Waivers.  The failure or delay of any party at any time
to require performance by another party of any provision of this Agreement,
even if known, shall not affect the right of such party to require performance
of that provision or to exercise any right, power or remedy hereunder.  Any waiver by any party of any breach of any
provision of this Agreement should not be construed as a waiver of any
continuing or succeeding breach of such provision, a waiver of the provision
itself, or a waiver of any right, power or remedy under this Agreement.  No notice to or demand on any party in any
case shall, of itself, entitle such party to any other or further notice or
demand in similar or other circumstances.

5.9          Third Parties.  Unless expressly stated herein to the
contrary, nothing in this Agreement, whether express or implied, is intended to
confer any rights or remedies under or by reason of this Agreement on any
persons other than the parties hereto and their respective administrators,
executors, other legal representatives, heirs, successors and permitted
assigns.  Nothing in this Agreement is
intended to relieve or discharge the obligation or liability of any third
persons to any party to this Agreement, nor shall any provision give any third
persons any right of subrogation or action over or against any party to this
Agreement.

5.10        Counterparts.  This Agreement may be executed by facsimile
and in one or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

5.11        Governing Law.  This Agreement and
all transactions contemplated by this Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of
Delaware without regard to principles of conflicts of laws.

5.12        Survival.  All representations, warranties, covenants
and agreements made herein or otherwise made in writing by any party pursuant
hereto shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.

 13

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

	
  

  	
  TMCT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
   

  	
  Name: Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  
	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  TRIBUNE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
   

  	
  Name: Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CANDLE HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
   

  	
  Name: Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FORTIFY HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
   

  	
  Name: Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature Page to Distribution Agreement]

 

 

	
  

  	
  CHANDLER TRUST NO. 1

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Babcock

  	
   

  
	
   

  	
   

  	
  Susan Babcock, as Trustee of Chandler

  Trust No. 1 under Trust Agreement dated

  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Chandler

  	
   

  
	
   

  	
   

  	
  Jeffrey Chandler, as Trustee of Chandler

  Trust No. 1 under Trust Agreement dated

  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Camilla Chandler Frost

  	
   

  
	
   

  	
   

  	
  Camilla Chandler Frost, as Trustee of

  Chandler Trust No. 1 under Trust

  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Goodan

  	
   

  
	
   

  	
   

  	
  Roger Goodan, as Trustee of Chandler Trust

  No. 1 under Trust Agreement dated June 26,

  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Stinehart, Jr.

  	
   

  
	
   

  	
   

  	
  William Stinehart, Jr., as Trustee of

  Chandler Trust No. 1 under Trust

  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judy C. Webb

  	
   

  
	
   

  	
   

  	
  Judy C. Webb, as Trustee of Chandler Trust

  No. 1 under Trust Agreement dated June 26,

  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren B. Williamson

  	
   

  
	
   

  	
   

  	
  Warren B. Williamson, as Trustee of

  Chandler Trust No. 1 under Trust

  Agreement dated June 26, 1935

  

 

[Signature Page to Distribution Agreement]

 

 

	
  

  	
  CHANDLER TRUST NO. 2

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Babcock

  	
   

  
	
   

  	
   

  	
  Susan Babcock, as Trustee of Chandler

  Trust No. 2 under Trust Agreement dated

  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Chandler

  	
   

  
	
   

  	
   

  	
  Jeffrey Chandler, as Trustee of Chandler

  Trust No. 2 under Trust Agreement dated

  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Camilla Chandler Frost

  	
   

  
	
   

  	
   

  	
  Camilla Chandler Frost, as Trustee of

  Chandler Trust No. 2 under Trust

  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Goodan

  	
   

  
	
   

  	
   

  	
  Roger Goodan, as Trustee of Chandler Trust

  No. 2 under Trust Agreement dated June 26,

  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Stinehart, Jr.

  	
   

  
	
   

  	
   

  	
  William Stinehart, Jr., as Trustee of

  Chandler Trust No. 2 under Trust

  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judy C. Webb

  	
   

  
	
   

  	
   

  	
  Judy C. Webb, as Trustee of Chandler Trust

  No. 2 under Trust Agreement dated June 26,

  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren B. Williamson

  	
   

  
	
   

  	
   

  	
  Warren B. Williamson, as Trustee of

  Chandler Trust No. 2 under Trust

  Agreement dated June 26, 1935

  

 

[Signature Page to Distribution Agreement]Exhibit
10.2

EXECUTION
COPY

AMENDED
AND RESTATED

LIMITED
LIABILITY COMPANY AGREEMENT

OF

TMCT,
LLC

Dated
as of September 22, 2006

 

	
  ARTICLE I DEFINED TERMS

  	
  1

  
	
   

  	
   

  
	
  Section 1.1 Definitions

  	
  1

  
	
  Section 1.2 Headings

  	
  6

  
	
   

  	
   

  
	
  ARTICLE II FORMATION AND TERM

  	
  6

  
	
   

  	
   

  
	
  Section 2.1 Formation

  	
  6

  
	
  Section 2.2 Name

  	
  6

  
	
  Section 2.3 Term

  	
  7

  
	
  Section 2.4 Registered
  Agent and Office

  	
  7

  
	
  Section 2.5 Principal Place
  of Business

  	
  7

  
	
  Section 2.6 Qualification
  in Other Jurisdictions

  	
   

  
	
   

  	
   

  
	
  ARTICLE III PURPOSE AND POWERS OF THE COMPANY

  	
  7

  
	
   

  	
   

  
	
  Section 3.1 Purpose

  	
  7

  
	
  Section 3.2 Powers of the
  Company

  	
  7

  
	
  Section 3.3 Limitations on
  Company Powers

  	
  9

  
	
   

  	
   

  
	
  ARTICLE IV CAPITAL CONTRIBUTIONS, INTERESTS AND
  CAPITAL ACCOUNTS

  	
  9

  
	
   

  	
   

  
	
  Section 4.1 Capital
  Contributions

  	
  9

  
	
  Section 4.2 Member’s
  Interest

  	
  9

  
	
  Section 4.3 Capital
  Accounts

  	
  10

  
	
   

  	
   

  
	
  ARTICLE V MEMBERS

  	
  11

  
	
   

  	
   

  
	
  Section 5.1 Powers of
  Members

  	
  11

  
	
  Section 5.2 Reimbursements

  	
  11

  
	
  Section 5.3 Partition

  	
  11

  
	
  Section 5.4 Assignments by
  and Withdrawal of Members

  	
  11

  
	
   

  	
   

  
	
  ARTICLE VI MANAGEMENT

  	
  13

  
	
   

  	
   

  
	
  Section 6.1 Management of
  the Company

  	
  13

  
	
  Section 6.2 Powers of the
  Managing Member

  	
  13

  
	
  Section 6.3 Actions
  Requiring Mutual Agreement

  	
  14

  
	
  Section 6.4 Reliance by
  Third Parties

  	
  14

  
	
   

  	
   

  
	
  ARTICLE VII MEETINGS OF MEMBERS

  	
  16

  
	
   

  	
   

  
	
  Section 7.1 Meetings of the
  Members

  	
  16

  
	
  Section 7.2 Place of
  Meetings; Participation by Telephone

  	
  16

  
	
  Section 7.3 Notice of
  Meetings

  	
  16

  
	
  Section 7.4 Action Without
  Meeting

  	
  17

  
	
   

  	
   

  
	
  ARTICLE VIII ALLOCATIONS

  	
  17

  
	
   

  	
   

  
	
  Section 8.1 Allocations of
  Profits and Losses

  	
  17

  
	
  Section 8.2 Regulatory
  Allocations

  	
  17

  
	
  Section 8.3 Tax
  Allocations; Section 704(c) of the Code

  	
  18

  
	
   

  	
   

  
	
  ARTICLE IX DISTRIBUTIONS

  	
  18

  
	
   

  	
   

  
	
  Section 9.1 Distributions Generally

  	
  18

  
	
  Section 9.2 Tax
  Distributions

  	
  19

  
	
  Section 9.3 Liquidating
  Distributions

  	
  19

  
	
  Section 9.4 Limitation on
  Distributions

  	
  19

  
	
   

  	
   

  
	
  ARTICLE X BOOKS AND RECORDS

  	
  20

  
	
   

  	
   

  
	
  Section 10.1 Books, Records
  and Financial Statements

  	
  20

  
	
  Section 10.2 Accounting Method

  	
  21

  

 i
 

 

 

	
  Section 10.3 Audit

  	
  21

  
	
   

  	
   

  
	
  ARTICLE XI TAX MATTERS

  	
  21

  
	
   

  	
   

  
	
  Section 11.1 Tax Matters
  Member

  	
  21

  
	
  Section 11.2 Right to Make
  Section 754 Election

  	
  21

  
	
  Section 11.3 Taxation as
  Partnership

  	
  22

  
	
   

  	
   

  
	
  ARTICLE XII LIABILITY, EXCULPATION AND
  INDEMNIFICATION

  	
  22

  
	
   

  	
   

  
	
  Section 12.1 Liability

  	
  22

  
	
  Section 12.2 Exculpation

  	
  22

  
	
  Section 12.3 Duties and
  Liabilities of Covered Persons

  	
  22

  
	
  Section 12.4
  Indemnification

  	
  23

  
	
  Section 12.5 Expenses

  	
  23

  
	
  Section 12.6 Insurance

  	
  23

  
	
  Section 12.7 Outside Business

  	
  23

  
	
   

  	
   

  
	
  ARTICLE XIII DISSOLUTION, LIQUIDATION AND
  TERMINATION

  	
  24

  
	
   

  	
   

  
	
  Section 13.1 Dissolution

  	
  24

  
	
  Section 13.2 Notice of
  Dissolution

  	
  24

  
	
  Section 13.3 Liquidation

  	
  24

  
	
  Section 13.4 Termination

  	
  24

  
	
  Section 13.5 Claims of the
  Members

  	
  25

  
	
   

  	
   

  
	
  ARTICLE XIV REPRESENTATIONS, WARRANTIES AND
  COVENANTS OF THE MEMBERS

  	
  25

  
	
   

  	
   

  
	
  Section 14.1
  Representations

  	
  25

  
	
  Section 14.2
  Confidentiality

  	
  25

  
	
   

  	
   

  
	
  ARTICLE XV MISCELLANEOUS

  	
  26

  
	
   

  	
   

  
	
  Section 15.1 Amendments

  	
  26

  
	
  Section 15.2 Notices

  	
  26

  
	
  Section 15.3 Failure to
  Pursue Remedies

  	
  27

  
	
  Section 15.4 Cumulative
  Remedies

  	
  27

  
	
  Section 15.5 Binding Effect

  	
  27

  
	
  Section 15.6 Interpretation

  	
  27

  
	
  Section 15.7 Severability

  	
  27

  
	
  Section 15.8 Counterparts

  	
  27

  
	
  Section 15.9 Integration

  	
  27

  
	
  Section 15.10 Governing Law

  	
  27

  
	
  Section 15.11 Consent to
  Jurisdiction and Forum Selection

  	
  27

  
	
  Section 15.12 Attorneys’
  Fees

  	
  28

  

 

 ii

AMENDED
AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

TMCT, LLC

This Amended and Restated Limited Liability Company
Agreement of TMCT, LLC (the “Company”) is made as of September 22, 2006
(this “Agreement”), by and among Tribune Company, a Delaware corporation
(“Tribune”), Candle Holdings Corporation, a Delaware corporation (“Sub
1”), Fortify Holdings Corporation, a Delaware corporation (“Sub 2”
and collectively, with Tribune, Sub 1 and Sub 2, the “Tribune Members”),
Chandler Trust No. 1 (“Trust 1”) and Chandler Trust No. 2 (“Trust 2”),
as Members of the Company.

WHEREAS, the Company was formed as a limited liability
company pursuant to the Delaware Limited Liability Company Act, 6 Del. C.
§ 18-101, et seq., as amended from time to time (the “Delaware Act”), by
filing a Certificate of Formation of the Company with the office of the
Secretary of State of the State of Delaware and entering into a Limited
Liability Company Agreement of the Company by and among the Members, dated as
of August 8, 1997 (the “Initial Agreement”).

WHEREAS, the Members desire to enter into this Amended
and Restated Limited Liability Company Agreement of the Company to amend and
restate the Initial Agreement.

NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Members hereby
agree as follows:

ARTICLE I

DEFINED
TERMS

Section 1.1            Definitions.  Unless the context otherwise requires, the
terms defined in this Article I shall, for the purposes of this Agreement, have
the meanings herein specified.

“Affiliate” means with respect to a specified
Person, any Person that directly or indirectly controls, is controlled by, or
is under common control with, the specified Person, including (A) all
lineal descendants and spouses of such Person; (B) all trusts for the
benefit of such Person or any person described in clause (A) and the trustees
of such trusts; (C) all trustees or other legal representatives of such
Person or any person or trust described in clauses (A) or (B); (D) all
partnerships, corporations, limited liability companies or other entities
controlling, controlled by or under common control with such Person or any
person, trust or other entity described in clauses (A), (B) or (C).  “Control” for these purposes shall
mean the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of any person or entity, whether
through the ownership of voting securities, by contract, or otherwise.

“Agreement” means this Amended and Restated
Limited Liability Company Agreement of the Company, as further amended,
modified, supplemented or restated from time to time.

 

“Adjusted Capital Account Deficit” means, with
respect to any Member, the deficit balance, if any, in such Member’s Capital
Account as of the end of the relevant Fiscal Year, after giving effect to the
following adjustments:

(i)          Credit to such
Capital Account any amounts which such Member is obligated to restore pursuant
to any provision of this Agreement or is deemed to be obligated to restore
pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1)
and 1.704-2(i)(5); and

(ii)         Debit to such Capital
Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5)
and 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations.

The foregoing definition of Adjusted Capital Account
Deficit is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d)
of the Treasury Regulations and shall be interpreted consistently therewith.

“Capital Account” means, with respect to any
Member, the account maintained for such Member in accordance with the
provisions of Section 4.3 hereof.  Each
Member’s Capital Account as of the date hereof is set forth in Schedule A
attached hereto.

“Capital Contribution” means, with respect to
any Member, the aggregate value of cash and the initial Gross Asset Value of
any property (other than cash) contributed to the Company pursuant to Section
4.1 of the Initial Agreement.

“Certificate” means the Certificate of
Formation of the Company and any and all amendments thereto and restatements
thereof filed on behalf of the Company with the office of the Secretary of
State of the State of Delaware pursuant to the Delaware Act.

“Code” means the Internal Revenue Code of 1986,
as amended from time to time, or any corresponding federal tax statute enacted
after the date of this Agreement.

“Company” means TMCT, LLC, the limited
liability company formed under and pursuant to the Delaware Act and this
Agreement.

“Covered Person” means (i) any Member, any
Affiliate of a Member or any officers, directors, trustees, shareholders,
beneficiaries, partners, employees, representatives or agents of a Member or
its respective Affiliates, (ii) any officer of the Company, or
(iii) any employee or agent of the Company or its Affiliates who is
designated as a Covered Person by the Managing Member.

“Delaware Act” means the Delaware Limited
Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time
to time.

“Depreciation”
means, for each Fiscal Year or other period, an amount equal to the
depreciation, amortization or other cost recovery deduction allowable under the
Code with respect to an asset for such Fiscal Year or other period; provided,
however, that if the Gross Asset Value of an asset differs from its adjusted
basis for federal income tax purposes at the

 

 2
 

 

beginning of such Fiscal
Year or other period, Depreciation shall be an amount that bears the same ratio
to such beginning Gross Asset Value as the federal income tax depreciation,
amortization or other cost recovery deduction with respect to such asset for
such Fiscal Year or other period bears to such beginning adjusted tax basis;
and provided further, that if the federal income tax depreciation, amortization
or other cost recovery deduction for such Fiscal Year or other period is zero,
Depreciation shall be determined with reference to such beginning Gross Asset
Value using any reasonable method selected by the Managing Member.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, and any successor statute thereto.

“Fiscal Year” means (i) a twelve (12)
month period commencing on January 1 and ending on December 31, or
(ii) any portion of the period described in clause (i) of this
sentence for which the Company is required to allocate items of Company income,
gain, expense, loss or deduction pursuant to Article VIII hereof.

“Gross Asset Value” means, with respect to any
asset, such asset’s adjusted basis for federal income tax purposes, except as
follows:

(a)           the initial Gross Asset Value of any
asset contributed by a Member to the Company shall be the gross fair market
value of such asset, as set forth on Schedule A hereto;

(b)           the Gross Asset Value of all Company
assets shall be adjusted to equal their respective gross fair market values, as
determined by the Managing Member, as of the following times: (i) the
distribution by the Company to a Member of more than a de minimis amount of
Company assets as consideration for part or all of such Member’s Interest;
(ii) the contribution to the Company by a Member of more than a de minimis
amount of assets in exchange for an Interest; and (iii) the liquidation of
the Company within the meaning of Treasury Regulation
§ 1.704-1(b)(2)(ii)(g); and

(c)           the Gross Asset Value of any Company
asset distributed to any Member shall be the gross fair market value of such
asset on the date of distribution, as determined by the Managing Member.

If the Gross Asset Value of an asset has been
determined or adjusted pursuant to paragraph (a) or paragraph (b)
above, such Gross Asset Value shall thereafter be adjusted by the Depreciation
taken into account with respect to such asset for purposes of computing items
of income, gain, expense, loss or deduction.

“Interest” means, with respect to any Member at
any time, a Member’s limited liability company interest in the Company which
represents a Member’s share of the items of income, gain, expense, loss or
deduction of the Company, as provided in Article VIII, and a Member’s
right to receive distributions of the Company’s assets, as provided in
Article IX, including a Member’s right to any and all benefits to which
such Member may be entitled as provided in this Agreement, together with the
obligations of such Member to act in accordance 
with all of the terms and provisions of this Agreement and the Delaware
Act.

 3
 

 

“Investment Committee” means the Investment
Committee appointed by the Members in accordance with Section 6.5.

“Managing Member” means the Member appointed to
manage the affairs of the Company pursuant to Section 6.1, which shall be Trust
1.  The Managing Member shall be deemed
to be a “manager” within the meaning of the Delaware Act.

“Member” means one or more of Trust 1,
Trust 2 or any of the Tribune Members individually, when acting in the
capacity of each as a member of the Company and includes any other Person
admitted to the Company as a Member of the Company in accordance with this
Agreement, and “Members” means Trust 1, Trust 2 and each of the Tribune Members
and includes any other Person admitted to the Company as a Member of the
Company in accordance with this Agreement, collectively, when acting in their
capacities as members of the Company. 
For all purposes of the Delaware Act, all Members shall constitute a
single class or group of members.

“Mutual Agreement” means the agreement of
(i) Tribune, or, if Tribune is no longer a Member, the Members holding a
majority in interest, if any, of the Interests initially held by the Tribune
Members on the date hereof, and (ii) (A) each of Trust 1 and
Trust 2, until the Trust Termination, (B) thereafter, the Representatives;
(C) provided, however, if Trust 1 and Trust 2 and each of their
respective Transferees through a Permitted Disposition are no longer Members of
the Company, the holders, if any, of a majority in interest of the Interests
initially held by the Trust Members.

“Percentage Interest” means, with regard to
each Member, the percentage set forth opposite its name on Schedule A attached
hereto.

“Permitted Disposition” means a Transfer
(a) of a Tribune Member’s Interest by a Tribune Member to another Tribune
Member or to one or more Affiliates of such Tribune Member, (b) by a Tribune
Member, at any time, to any Person reasonably acceptable to the Managing Member
(provided that if any such consent of the Managing Member is sought prior to
the first anniversary of the date hereof, such Person must be acceptable to the
Managing Member in its sole discretion), (c) in whole or in part by
Trust 1 or Trust 2 to any sub-trust with the same trustees as, and
with a term measured by the same lives as, Trust 1 or Trust 2,
respectively, or (d) upon the Trust Termination, in whole or in part by
Trust 1 or Trust 2 or by any sub-trust that received its Interest
pursuant to a Permitted Disposition to the beneficiaries of such Trusts or
sub-trusts; provided that any such Transfer pursuant to clauses (a) and (b)
must include a Transfer of such Tribune Member’s entire Interest in order to be
deemed a Permitted Disposition.

“Person” means any individual, corporation,
association, partnership (general or limited), joint venture, trust, estate,
limited liability company, or other legal entity or organization.

“Portfolio” means any Securities owned by the
Company as of the date hereof that are not Tribune Shares and any Securities
bought and sold by the Company hereafter, in

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accordance with
Section 6.5 under the direction of the Investment Committee, that are not
Tribune Shares.

“Representatives” means no less than two and no
more than five Persons who shall act as representatives of the Trust Members
with respect to this Agreement and the rights of Trust Members hereunder
following the Trust Termination, who are Trust Members and who are elected as
such by Trust Members holding, in the aggregate, a majority of the interest in
the Company initially held by Trust 1 and Trust 2.  The presence of Trust Members holding a majority
in interest of the Interests initially held by the Trust Members shall be
required to constitute a quorum for the transaction of business to elect
Representatives.  All matters shall be
deemed approved by the Trust Members at any meeting duly called and held, a
quorum being present, by the affirmative vote of Trust Members holding a
majority in interest of the Interests initially held by the Trust Members.  Any action required or permitted to be taken
at any meeting of the Trust Members may be taken without prior notice and
without a vote, if a consent in writing, setting forth the action so taken,
shall be signed by Trust Members holding a majority in interest of the
Interests initially held by the Trust Members and such written consent is filed
with the minutes of the Trust.

“SEC” means the Securities and Exchange
Commission or any successor entity charged with enforcing the Securities Act.

“Securities” shall mean capital stock, limited
or general partnership interests, limited liability company interests, bonds,
notes, debentures and other obligations, investment contracts and other
instruments or evidences of indebtedness commonly referred to as securities and
any rights, warrants and options related thereto.

“Securities Act” means the Securities Act of
1933, as amended from time to time, and any successor statute thereto.

“Tax Matters Member” shall be the Member
designated to act as Tax Matters Member pursuant to Section 11.1(b), which
shall be Trust 1.

“Transfer” shall have the meaning set forth in
Section 5.4 of the Agreement.  The terms “Transferring,”
“Transferor,” “Transferee” and “Transferred” shall have meanings correlative to
the meaning of “Transfer.”

“Treasury Regulations” means the income tax
regulations, including temporary regulations, promulgated under the Code, as
such regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).

“Tribune Shares” means (a) any shares of the
common stock or preferred stock of Tribune owned by the Company as of the date
hereof, (b) any shares of the common stock or preferred stock of Tribune issued
as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to,
or in exchange for or in replacement of, any shares of common stock or
preferred stock of Tribune owned by the Company and (c) any other shares of
common stock or preferred stock of Tribune owned or hereafter acquired by the
Company.

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“Trust Interest” means the Interest held by
Trust Members.

“Trust Members” means Trust 1,
Trust 2 and any successors in interest to Trust 1 or Trust 2 who
acquire their interests in a Permitted Disposition.

“Trusts Portfolio” means the properties
purchased by the Company with the cash transferred to such Trusts Portfolio
pursuant to Section 9.2 hereof and other properties bought and sold by the
Company thereafter in accordance with Section 9.2 under the direction of the
Trusts Portfolio Committee.

“Trust Termination” means the termination of
Trust 1, Trust 2 and any sub-trust thereof in accordance with their respective
terms.

Section 1.2            Headings.  The headings and subheadings in this
Agreement are included for convenience and identification only and are in no
way intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or any provision hereof.

ARTICLE
II

FORMATION
AND TERM

Section 2.1            Formation.

(a)           The Company was formed as a limited
liability company under and pursuant to the provisions of the Delaware Act and
the rights, duties and liabilities of the Members shall be as provided in the
Delaware Act and this Agreement.  To the
extent that the rights, powers, duties, obligations and liabilities of any
Member are different by reason of any provision of this Agreement than they
would be in the absence of such provision, this Agreement shall, to the extent
permitted by the Delaware Act, control.

(b)           The name and mailing address of each
Member and the amount contributed to the capital of the Company shall be listed
on Schedule A attached hereto. 
Each Member is required to provide any changes to its information set
forth on Schedule A to the Managing Member who shall be required to
update Schedule A from time to time as necessary to accurately reflect
the information therein.

(c)           Lisa Harding, as an “authorized
person” within the meaning of the Delaware Act, has previously executed,
delivered and filed the Certificate with the Secretary of State of the State of
Delaware.  Thomas Unterman, as an “authorized
Person” within the meaning of the Delaware Act, has previously executed,
delivered and filed the Certificate of Correction of the Certificate of the
Company with the Secretary of State of the State of Delaware.  Upon such filing, Lisa Harding’s and Thomas
Unterman’s powers as “authorized persons” ceased.  Any Member of the Company, as an authorized
person within the meaning of the Delaware Act, shall execute, deliver and file
any and all amendments or restatements to the Certificate.

Section 2.2            Name.  The name of the limited liability company
continued hereby and formed by the filing of the Certificate is TMCT, LLC.  The business of the Company may be

 6
 

 

conducted upon compliance
with all applicable laws under any other name designated by the Managing Member
(other than any name that includes the word “Tribune”).

Section 2.3            Term.  The term of the Company commenced on the date
of the filing of the Certificate in the office of the Secretary of State of the
State of Delaware and shall continue perpetually unless the Company is
dissolved in accordance with the provisions of this Agreement.  Pursuant to Section 18-201(d) of the
Delaware Act, this Agreement shall be effective as of the date hereof.  The existence of the Company as a separate
legal entity shall continue until cancellation of the Certificate in the manner
required by the Delaware Act.

Section 2.4            Registered
Agent and Office. 
The Company’s registered agent and office in Delaware shall be
Corporation Service Company, 1013 Centre Road, Wilmington, County of Newcastle,
Delaware 19805.  At any time, the
Managing Member may designate another registered agent and/or registered
office.

Section 2.5            Principal
Place of Business. 
The principal place of business of the Company shall be at 350 West
Colorado Blvd. Suite 230, Pasadena, California 
91105.  At any time, the Managing
Member may change the location of the Company’s principal place of business;
provided that such location is within the United States of America.

Section 2.6            Qualification in Other
Jurisdictions. 
The Managing Member shall cause the Company to be qualified, formed or
registered under assumed or fictitious name statutes or similar laws in any
jurisdiction in which the Company transacts business in which such
qualification, formation or registration is required or desirable.  The Managing Member, as an authorized person
within the meaning of the Delaware Act, shall execute, deliver and file any
certificates (and any amendments and/or restatements thereof) necessary for the
Company to qualify to do business in a jurisdiction in which the Company may
wish to conduct business.

ARTICLE
III

PURPOSE
AND POWERS OF THE COMPANY

Section 3.1            Purpose.  The Company is formed for the object and
purpose of, and the nature of the business to be conducted and promoted by the
Company is, acquiring and owning securities and real estate for investment
purposes and managing the assets of the Company in accordance with the
provisions of this Agreement, and engaging in any lawful act or activity for
which limited liability companies may be formed under the Delaware Act which is
necessary, convenient, desirable or incidental to the foregoing.  Notwithstanding anything herein to the
contrary, nothing set forth herein shall be construed as authorizing the
Company to possess any purpose or power, or to do any act or thing, forbidden
by law to a limited liability company formed under the Delaware Act.

Section 3.2            Powers
of the Company.

(a)           The Company shall have the power and
authority to take any and all actions necessary, appropriate, proper,
advisable, convenient or incidental to or for the furtherance of the purpose
set forth in Section 3.1, including, but not limited to, the power:

 7
 

 

(i)            to conduct its business, carry on
its operations and have and exercise the powers granted to a limited liability
company by the Delaware Act, any other law, or this Agreement in any state,
territory, district or possession of the United States, or in any foreign
country that may be necessary, convenient or incidental to the accomplishment
of the purpose of the Company;

(ii)           to acquire by purchase, lease,
contribution of property or otherwise, own, hold, operate, maintain, finance,
improve, lease, sell, convey, mortgage, transfer, demolish or dispose of any
real or personal property that may be necessary, convenient or incidental to
the accomplishment of the purpose of the Company;

(iii)          to enter into, perform and carry out
contracts of any kind, including, without limitation, contracts with any Member
or any Affiliate thereof, or any agent of the Company necessary to, in connection
with, convenient to, or incidental to the accomplishment of the purpose of the
Company;

(iv)          to invest and reinvest its funds, and
to take and hold real and personal property for the payment of funds so
invested;

(v)           to sue and be sued, complain and defend,
and participate in administrative or other proceedings, in its name;

(vi)          to appoint employees and agents of the
Company, and define their duties and fix their compensation;

(vii)         to indemnify any Person in accordance
with the Delaware Act and to obtain any and all types of insurance;

(viii)        to negotiate, enter into, renegotiate,
extend, renew, terminate, modify, amend, waive, execute, acknowledge or take
any other action with respect to any lease, contract or security agreement in
respect of any assets of the Company;

(ix)           to borrow money and issue evidences
of indebtedness, and to secure the same by a mortgage, pledge or other lien on
the assets of the Company;

(x)            to pay, collect, compromise,
litigate, arbitrate or otherwise adjust or settle any and all other claims or
demands of or against the Company or to hold such proceeds against the payment
of contingent liabilities;

(xi)           to make, execute, acknowledge and
file any and all documents or instruments necessary, convenient or incidental
to the accomplishment of the purpose of the Company;

(xii)          to purchase, take, receive, subscribe
for or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend,
pledge, or otherwise dispose of, and otherwise use and deal in and with, share
or other interests in or obligations of domestic or foreign corporations,
associations, general or limited partnerships (including the power to be
admitted as a partner thereof and to exercise the rights and perform the duties

 8
 

 

created
thereby), trusts, limited liability companies (including the power to be
admitted as a member or appointed as a manager thereof and to exercise the
duties created thereby), or individuals or direct or indirect obligations of
the United States or of any government, state, territory, governmental district
or municipality or of any instrumentality of any of them;

(xiii)         to lend money for any proper purpose,
to invest and reinvest its funds, and to take and hold real and personal
property for the payment of funds so loaned or invested; and

(xiv)        to cease its activities and cancel its
Certificate.

(b)           The Managing Member, subject to any
limitations set forth in this Agreement, may authorize any Person (including,
without limitation, any other Member) to enter into any agreement or instrument
on behalf of the Company and to perform or cause to be performed the Company’s
obligations thereunder.

(c)           The Company may merge with, or
consolidate into, another Delaware limited liability company or other business
entity (as defined in Section 18-209(a) of the Delaware Act) upon the consent
of the Trust Members.

(d)           Nothing in this Section 3.2 shall be
deemed to authorize the officers, the Investment Committee or the Managing
Member to authorize the Company to take any action set forth above in this
Section 3.2 without the required approval of the members of the Investment
Committee pursuant to Section 6.5 or the Members pursuant to
Section 6.5 or any other provisions of this Agreement.

Section 3.3            Limitations
on Company Powers. 
Notwithstanding the foregoing provisions of Section 3.2, the Company
shall not do business in any jurisdiction that would jeopardize the limitation
on liability afforded to the Members under the Delaware Act or this Agreement.

ARTICLE
IV

CAPITAL
CONTRIBUTIONS, INTERESTS 

AND CAPITAL ACCOUNTS

Section 4.1            Capital
Contributions.

Each Member previously made a Capital Contribution
pursuant to the Initial Agreement.  No
Member shall be required to make any additional Capital Contribution to the
Company.

Section 4.2            Member’s
Interest.

A Member’s Interest shall for all purposes be personal
property.  A Member has no interest in
specific Company property.  All property
of the Company, whether real or personal, tangible or intangible, shall be
deemed to be owned by the Company as an entity, and no Member, individually,
shall have any direct ownership in such property.

 9
 

 

Section 4.3            Capital
Accounts.

(a)           A separate Capital Account will be
maintained for each Member.

(b)           Each Member’s Capital Account will be
increased by:

(i)            The amount of cash contributed by
the Member to the Company;

(ii)           The Gross Asset Value of real,
personal, tangible and intangible property (other than cash) contributed by the
Member to the Company pursuant to Section 4.1;

(iii)          Allocations to the Member of items of
income or gain (other than allocations under Section 8.3); and

(iv)          The amount of any liabilities of the
Company assumed by such Member or liabilities that are secured by any property
distributed to such Member.

(c)           Each Member’s Capital Account will be
decreased by:

(i)            The amount of cash distributed to
the Member by the Company;

(ii)           The Gross Asset Value of property
(other than cash) distributed to the Member by the Company;

(iii)          Allocations to the Member of items of
deduction, loss or expense (other than allocations under Section 8.3); and

(iv)          The amount of any liabilities of such
Member assumed by the Company or liabilities that are secured by any property
contributed by such Member.

(d)           In the event the Gross Asset Value of
any asset of the Company is adjusted as provided in paragraph (b) under
the definition of Gross Asset Value, any resulting gain or loss shall be
allocated among the Members in accordance with Article VIII.

(e)           In the event of a sale or exchange of
all or part of an Interest, a pro rata portion of the Capital Account of the
transferor shall become the Capital Account of the transferee to the extent it
relates to the transferred Interest in accordance with Treasury Regulation
Section 1.704-1(b)(2)(iv)(l).

(f)            The manner in which Capital Accounts
are to be maintained pursuant to this Section 4.3 is intended to comply with
the requirements of Code Section 704(b) and the Treasury Regulations
promulgated thereunder, including, without limitation, Treasury Regulation
Section 1.704-1(b)(2)(iv).  If the manner
in which Capital Accounts are to be maintained pursuant to this Article IV
should be modified to comply with Code Section 704(b) and the Treasury
Regulations thereunder, then, notwithstanding anything to the contrary, the
method in which Capital Accounts are maintained shall be so

 10
 

 

modified; provided,
however, that any change in the manner of maintaining Capital Accounts
shall not alter the economic agreement between or among the Members without
Mutual Agreement.

ARTICLE V

MEMBERS

Section 5.1            Powers
of Members. 
The Members shall have the power to exercise any and all rights or
powers granted to the Members pursuant to the express terms of this
Agreement.  No Member shall have the power
to act for or on behalf of, or to bind, the Company without the prior written
approval of the Managing Member.  All
Members shall constitute one class or group of members of the Company for all
purposes of the Delaware Act.

Section 5.2            Reimbursements.  The Company shall reimburse the Members and
officers of the Company for all ordinary, reasonable and necessary
out-of-pocket expenses incurred by the Members or such officers on behalf of
the Company with the approval of the Managing Member.  Such reimbursement shall be treated as an
expense of the Company and shall be allocated in accordance with Article VIII,
and shall not be deemed to constitute a distributive share of income or a
distribution or return of capital to any Member.

Section 5.3            Partition.  Each Member waives any and all rights that it
may have to maintain an action for partition of the Company’s property.

Section 5.4            Assignments
by and Withdrawal of Members.

(a)           Prohibited
Transfers.  No Member may resign or
withdraw from the Company without the consent of the Managing Member.  No Member shall sell, transfer, assign,
convey, pledge, mortgage, encumber, hypothecate or otherwise dispose of or
suffer the creation of an interest in or lien on (a “Transfer”) all or
any part of its Interest without the consent of the Managing Member; provided,
however, that such consent shall not be necessary with respect to any
proposed Transfer which constitutes a Permitted Disposition.

(b)           Conditions to
Transfer.  Any purported Transfer of
all or any part of its Interest by a Member shall require the Member to notify
the Company of such Transfer, including the name and address of the
Transferee.  Any Transfer by the Tribune
Members shall also be conditioned on compliance with Section 5.4(f)(iv)(A).

(c)           Nonconforming
Transfers Void.  Any actual or
purported Transfer of all or part of the Interest of any Member that does not
comply with the provisions of Section 5.4 shall be void and shall not bind
the Company.  The Company shall incur no
liability for distributions made to any Transferor prior to compliance with
Section 5.4 with respect to the Interest or portion thereof that is the
subject of any such actual or purported Transfer.

(d)           Transferee of Trust Members.  Subject to Subsection (f) below, any
Transferee of an Interest in the Company upon a Permitted Disposition by the
Trust Members shall automatically become a Member with respect to such
transferred Interest, subject to

 11
 

 

applicable law and upon
execution of this Agreement, a counterpart of this Agreement or other documents
agreeing to be bound by the provisions of this Agreement.

(e)           Transferee of
Tribune Members.  Subject to
Subsection (f) below, any Transferee of a Tribune Member that is a Member
shall automatically become a Member with respect to the Interest so
transferred.  A Transferee of a Tribune
Member that is not a Member shall not be admitted as a Member without the
consent of the Managing Member, provided that no such consent shall be required
with respect to a Permitted Disposition, subject to Subsection (f) below and
applicable law, and upon execution of this Agreement, a counterpart of this
Agreement or other documents agreeing to be bound by the provisions of this
Agreement, such Transferee in a Permitted Deposition shall automatically become
a Member with respect to such transferred Interest.  Other than as provided in the foregoing
sentences, no Transferee of a Tribune Member’s Interest or portion thereof
shall be admitted as a Member without the consent of the Managing Member.

(f)            Conditions for
Admissions.  No Transferee shall be
admitted as a Member without satisfying the following conditions (any one or
more of which may be waived by the Managing Member):

(i)            the Transferor or Transferee shall
undertake to pay all expenses incurred by the Company in connection therewith;

(ii)           the Company shall receive from the
Person to whom such Transfer is to be made a counterpart of this Agreement
executed by or on behalf of such Person and such other documents, instruments
and certificates as may reasonably be requested by the Managing Member pursuant
to which such Transferee shall become bound by this Agreement with respect to
the Interest, or portion thereof, so Transferred;

(iii)          the Company shall receive from the
proposed Transferor and Transferee such documents, opinions, instruments and
certificates as reasonably required by the Managing Member;

(iv)          the Company shall receive an opinion
of counsel to the Company substantially to the effect that the admission of the
Transferee as a Member (or in the case of Section 5.4(b), the consummation
of such Transfer):

(A)          will not cause the Company to be
terminated pursuant to Section 708 of the Code if such termination would have a
material adverse effect on any Member, to lose its status as a partnership for
United States federal and state income tax purposes, or to be considered a
publicly traded partnership under Section 7704(b) of the Code; and

(B)           complies with all applicable laws and
regulations, including, without limitation, applicable federal and state
securities laws and the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

 12
 

 

(v)           The Members hereby waive the
requirements of this Subsection (f) with respect to any Transfer by any
Tribune Member of its Interest to Tribune or any Affiliate of Tribune.

(g)           Transfer of Control.  Tribune shall not, without the consent of the
Managing Member (which shall not be unreasonably withheld, Transfer Control of
Candle Holdings Corporations or Fortify Holdings Corporation, or any other
entity substantially all of the value of which is attributable to its Interests
in the Company, to any Person that is not an Affiliate of Tribune.

ARTICLE
VI

MANAGEMENT

Section 6.1            Management
of the Company. 
Trust 1 shall be the Managing Member and, in such capacity, subject to
the management of the Portfolio by the Investment Committee in accordance with
Section 6.5 hereof, shall manage the Company in accordance with this
Agreement until such time as Trust 1 elects to resign as Managing Member (after
providing not less than three (3) months’ prior written notice to all other
Members), in which event the Trust Members shall elect a Managing Member to
replace Trust 1.  Except as otherwise set
forth in this Agreement, the Managing Member shall have full, exclusive and
complete discretion to manage and control the business and affairs of the
Company, to make all decisions affecting the business and affairs of the
Company and to take all such actions as the Managing Member deems necessary or
appropriate to accomplish the purpose of the Company set forth herein.  The Managing Member may appoint individuals
as officers or employees of the Company with such titles as it may elect,
including but not limited to President, Treasurer and Secretary.  Except as provided herein, the officers of
the Company shall have such powers and duties in the management of this Company
as may be prescribed in a resolution by the Managing Member and, to the extent
not provided as generally pertains to their respective offices, as if the
Company were a corporation governed by the General Corporation Law of the State
of Delaware, subject to the control and removal by the Managing Member.

Section 6.2            Powers
of the Managing Member.  Subject to the limitations otherwise set
forth in this Agreement, the Managing Member shall have the right, power and
authority, in the management of the business and affairs of the Company, to do
or cause to be done any and all acts, at the expense of the Company, deemed by
the Managing Member to be necessary or appropriate to effectuate the business,
purposes and objectives of the Company. 
Without limiting the generality of the foregoing, the Managing Member
shall have the power and authority to:

(a)           establish a record
date with respect to all actions to be taken hereunder that require a record
date be established, including with respect to allocations and distributions;

(b)           bring and defend on
behalf of the Company actions and proceedings at law or in equity before any
court or governmental, administrative or other regulatory agency, body or
commission or otherwise; and

 13
 

 

(c)           execute all
documents or instruments, perform all duties and powers and do all things for
and on behalf of the Company in all matters necessary, desirable, convenient or
incidental to the purpose of the Company, including, without limitation, all
documents, agreements and instruments related thereto and the consummation of
all transactions contemplated thereby.

The expression of any power or authority of the
Managing Member in this Agreement shall not in any way limit or exclude any
other power or authority which is not specifically or expressly set forth in
this Agreement.

Section 6.3            Actions
Requiring Mutual Agreement.  The following actions and other actions so
designated throughout this Agreement shall not be taken by the Company, whether
at the direction of the Managing Member or at the direction of the Investment
Committee, without Mutual Agreement:

(a)           Any change in the business purpose of
the Company; or

(b)           The incurrence of
any indebtedness by the Company (other than indebtedness incurred in the
management of the securities and real estate portfolios as approved by the
Managing Member).

Section 6.4            Reliance
by Third Parties. 
Any Person dealing with the Company may rely upon a certificate signed
by the Managing Member or any officer appointed by the Managing Member
including, but not limited to, the President, any Vice President, the Secretary
or the Treasurer as to:

(a)           the identity of the
members of the Investment Committee or any Member hereof;

(b)           the existence or
non-existence of any fact or facts which constitute a condition precedent to
acts by the Company or in any other manner germane to the affairs of the
Company;

(c)           the Persons who are
authorized to execute and deliver any instrument or document of or on behalf of
the Company; or

(d)           any act or failure
to act by the Company or as to any other matter whatsoever involving the
Company or any Member.

Section 6.5            Investment
Committee.

(a)           Number of
Investment Committee Members.  The
number of members of the Investment Committee shall be three.  Tribune shall have the right to designate one
member of the Investment Committee, of which the initial designee shall be
Chandler Bigelow.  Trust 1 and
Trust 2 shall have the right to designate two members (the “Trust
Designated Investment Committee Members”), of which the initial members
shall be William Stinehart and Warren Williamson.  Notwithstanding the foregoing, if at any time
Tribune is no longer a Member, any member of the Investment Committee
designated by Tribune shall be removed and replaced with

 14
 

 

an additional designee of
the Trust Member and, thereafter, all three members of the Investment Committee
shall be designated by the Trust Members. 
Each member of the Investment Committee shall hold office until his or
her successor shall have been designated pursuant to paragraph (d) below or
until such member of the Investment Committee shall resign or shall have been
removed in the manner provided herein.

(b)           Removal of
Investment Committee Members.  Any
member of the Investment Committee may be removed at any time, with or without
cause, by the Member(s) then entitled to designate such member of the
Investment Committee.

(c)           Resignation.  Any Person may resign as a member of the
Investment Committee at any time by giving written notice to the Investment
Committee.  Any such resignation shall
take effect at the time specified therein, or, if the time is not specified,
immediately upon its receipt by the Investment Committee.  Acceptance of such resignation shall not be
necessary to make it effective.

(d)           Vacancies.  Any vacancy on the Investment Committee,
whether because of death, resignation, disqualification, removal, expiration of
term or any other cause shall be filled by designation by the Member(s) who
appointed the member of the Investment Committee whose departure created such
vacancy.  Such designation shall be
effected by notice delivered to the Investment Committee.  Each member of the Investment Committee so
chosen to fill a vacancy shall remain a member of the Investment Committee
until his or her successor shall have been designated or until he or she shall
resign or shall have been removed in the manner herein provided.

(e)           Powers of
Investment Committee.  The Investment
Committee shall have full, exclusive and complete authority with respect to the
management of the Portfolio.  It is
expressly acknowledged by each of the Members that the power and authority of
the Managing Member includes the sole power and authority to transfer, dispose
of, direct the vote of or take any other action with respect to, the Tribune Shares
and that the Investment Committee shall have no authority to act with respect
to the Tribune Shares.

(f)            Meetings; Place
of Meetings; Telephonic Participation. 
Meetings of the Investment Committee may be held at such times and
places within or without the State of Delaware as the Investment Committee may
from time to time by resolution designate or as shall be designated by the
Person or Persons calling the meeting in the notice or waiver of notice of any
such meeting.  Regular meetings of the
Investment Committee shall be held not less than quarterly.  Special meetings of the Investment Committee
shall be held whenever called by a member of the Investment Committee or the
Managing Member.  Notice of the time and
place of each such special meeting shall be sent by facsimile transmission,
telegraph or cable or be delivered personally or mailed to and received by each
member of the Investment Committee not less than 24 hours before the time at
which the meeting is to be held.  Notice
of the purpose of a special meeting need not be given.  Notice of any meeting of the Investment
Committee shall not be required to be given to any member of the Investment
Committee who waives such notice in writing or who is present at such
meeting.  At the request of any Investment
Committee member, any or all Investment Committee members may participate in
any meeting of the Investment Committee by means of conference telephone or
similar communications equipment pursuant to

 15
 

 

which all Persons
participating in the meeting of the Investment Committee can hear each other,
and such participation shall constitute presence in person at such
meeting.  Minutes of the meetings shall
be recorded.

(g)           Manner of Acting
and Quorum.  Except as otherwise
provided in this Agreement or the Delaware Act, the presence of a majority of
the members of the Investment Committee shall be required to constitute a
quorum for the transaction of business at any meeting of the Investment
Committee.  The Investment Committee
members shall act only as an Investment Committee, and the individual members
shall have no power as such.  Each member
shall have one vote.  All matters shall
be deemed approved by the Investment Committee at any meeting duly called and
held, a quorum being present, by the affirmative vote of a majority of the
authorized number of members of the Investment Committee.

(h)           Action Without
Meeting.  Any action required or
permitted to be taken or which may be taken at any meeting of the Investment
Committee may be taken without a meeting, without prior notice and without a
vote, if a consent in writing, setting forth the action so taken, shall be
signed by a majority of the authorized number of members of the Investment
Committee and such written consent is filed with the minutes of proceedings of
the Investment Committee.

ARTICLE
VII

MEETINGS
OF MEMBERS

Section 7.1            Meetings
of the Members. 
Meetings of the Members may be called at any time by the Managing
Member.  Each meeting of Members shall be
conducted by such Person that the Managing Member may designate or, if the
Managing Member fails to do so, by such other Person that a majority of the
Members present in person or by proxy specify.

Section 7.2            Place
of Meetings; Participation by Telephone.  All meetings of the Members of the Company
shall be held at such places, within or without the State of Delaware, as may
from time to time be designated by the Managing Member and specified in the
respective notices or waivers of notice thereof.  Participation in any meeting may be by means
of conference telephone or similar communications equipment pursuant to which
all persons participating in the meeting can hear each other, and such
participation shall constitute presence in person at such meeting.  Minutes of the meetings shall be recorded.

Section 7.3            Notice
of Meetings. 
Notice of each meeting of the Members of the Company shall be given not
less than ten (10) days nor more than sixty (60) days before the date of
the meeting to each Member of record by delivering a typewritten or printed
notice thereof to such Member personally, or by depositing such notice in the
United States mail, in a postage prepaid envelope, directed to such Member at
such Member’s post office address furnished by such Member to the Secretary of
the Company for such purpose or, if such Member shall not have furnished to the
Secretary of the Company an address for such purpose, then at such Member’s
post office address last known to the Company, or by transmitting a notice
thereof to such Member at such address by facsimile, telegraph, cable or
wireless.  Every notice of a meeting of
the Members shall state the place, date and hour of the meeting, and the
purpose or

 16
 

 

purposes for which the
meeting is called.  Notice of any meeting
of Members shall not be required to be given to any Member who shall have
waived such notice, and such notice shall be deemed waived by any Member who
shall attend such meeting in person or by proxy, except for any Member who
shall attend such meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business because the meeting is not
lawfully called or convened.  Except as
otherwise expressly required by law, notice of any adjourned meeting of the
Members need not be given if the time and place thereof are announced at the
meeting at which the adjournment is taken.

Section 7.4            Action
Without Meeting. 
Any action required to be taken or which may be taken at any meeting of
Members of the Company may be taken without a meeting, without prior notice and
without a vote, if there is an instrument in writing, setting forth the action
so taken.

ARTICLE
VIII

ALLOCATIONS

Section 8.1            Allocations
of Profits and Losses.  Net profits and net
losses of the Company shall be allocated to the Members in proportion to their
respective Percentage Interests; provided, however, that all
items with respect to the Trusts Portfolio shall be allocated 100% to the
Trusts.

Section 8.2            Regulatory
Allocations. 
(a) The foregoing provisions of this Article VIII shall be
subject to the following limitation:  no
Member shall be allocated any items of loss, expense or deduction hereunder if
such allocation results in a Capital Account deficit for such Member.  Any balance of such items of loss, expense or
deduction shall be specially allocated to the other Members in proportion to
their positive Capital Account balances.

(b)           Notwithstanding the
foregoing provisions of this Article VIII, in the event any Member
unexpectedly receives any adjustments, allocations or distributions described in
Sections 1.704(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations, items of income and gain
shall be specially allocated to each such Member in an amount and manner
sufficient to eliminate, to the extent required by the Treasury Regulations,
the Adjusted Capital Account Deficit of such Member as quickly as possible,
provided that an allocation pursuant to this Section 8.2(b) shall be made only
if and to the extent that such Member would have an Adjusted Capital Account
Deficit after all other allocations provided for in this Article VIII have
been tentatively made as if this Section 8.2(b) were not in the Agreement.

(c)           The allocations set
forth in Sections 8.2(a) and (b) (the “Regulatory Allocations”) are intended
to comply with certain requirements of the Treasury Regulations.  It is the intent of the Members that, to the
extent possible, all  Regulatory
Allocations shall be offset either with other Regulatory Allocations or with
special allocations of other items of income, gain, loss or deduction pursuant
to this Section 8.2.  Therefore,
notwithstanding any other provision of this Article VIII (other than the
Regulatory Allocations), the Managing Member shall make such offsetting special
allocations of income, gain, loss or deduction in whatever

 17
 

 

manner they determine is
appropriate so that, after such offsetting allocations are made, each Member’s
Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Member would have had if the Regulatory Allocations were
not part of the Agreement and all items were allocated pursuant to
Article VIII (other than Sections 8.2(a) and (b)).

Section 8.3            Tax
Allocations; Section 704(c) of the Code.

(a)           In accordance with
Section 704(c) of the Code and the Treasury Regulations thereunder, income,
gain, loss and deduction with respect to any property contributed to the
capital of the Company shall, solely for income tax purposes, be allocated
among the Members so as to take account of any variation between the adjusted
basis of such property to the Company for federal income tax purposes and its
initial Gross Asset Value (computed in accordance with paragraph (a) of the
definition of “Gross Asset Value” contained in Section 1.1 hereof).

(b)           In the event the
Gross Asset Value of any Company asset is adjusted pursuant to paragraph (b) of
the definition of “Gross Asset Value” contained in Section 1.1 hereof,
subsequent allocations of income, gain, loss and deduction with respect to such
asset shall take account of any variation between the adjusted basis of such
asset for federal income tax purposes and its Gross Asset Value in the same
manner as under Section 704(c) of the Code and the Treasury Regulations
thereunder.

(c)           Any elections or
other decisions relating to allocations under this Section 8.3, shall be
made by the Managing Member in any manner that reasonably reflects the purpose
and intention of this Agreement.  All
items relevant under Section 704(c) of the Code shall be allocated based
on the “traditional method” defined in Treasury Regulations
Section 1.704-3(b).  Allocations
pursuant to this Section 8.3 are solely for purposes of federal, state and
local taxes and shall not affect, or in any way be taken into account in
computing, any Member’s Capital Account, other items or distributions pursuant
to any provision of this Agreement.

(d)           The Members are
aware of the income tax consequences of the allocations made by this Article
VIII and hereby agree to be bound by the provisions of this Article VIII in
reporting their shares of Company income and loss for all income tax purposes.

ARTICLE
IX

DISTRIBUTIONS

Section 9.1            Distributions
Generally.

Payments shall be made to the Members by the Company
at such times as are determined by the Managing Member, but in no event less
frequently than once per calendar quarter. 
The amounts so advanced to the Members shall be treated as advances or
drawings of money against their distributive shares of Company income and as
current distributions made on the last day of the Company’s taxable year.  Except in connection with a liquidation of
the Company (which

 18
 

 

shall be governed by
Section 9.4), any distribution shall be made to the Members in accordance with
their Percentage Interests.

Section 9.2            Trusts
Portfolio.

The Trusts shall have the right to have the Company
transfer any distributions to which the Trusts are otherwise entitled under
this Agreement to a separate Company account designated as the Trusts
Portfolio.  The Trusts Portfolio shall be
invested as determined by a committee comprised of the Trust Designated
Investment Committee Members (the “Trusts Portfolio Committee”).  The Trusts Portfolio Committee shall have the
right to require the distribution to the Trust Members of all or a portion of
the assets or proceeds in the Trusts Portfolio at any time and from time to
time.

Section 9.3            Tax Distributions.

Notwithstanding anything herein to the contrary, the
Company shall use commercially reasonable efforts (which shall not require the
incurrence of debt by the Company) to distribute to each Member with respect to
each Fiscal Year an amount of cash (taking into account all other distributions
that the Member has received with respect to such Fiscal Year) equal to the “Tax
Distribution” with respect to that Member for that Fiscal Year.  The Tax Distribution, if any, with respect
any Member for any Fiscal Year shall be made no later than March 31 following
each Fiscal Year, and shall be made more frequently if the Managing Member
determines that more frequent distributions are necessary in order to
correspond to the Member’s estimated tax obligations.  “Tax Distribution” with respect to any
Member for any Fiscal Year means the net federal taxable income of the Company,
if any, allocable to such Member with respect to such Fiscal Year, multiplied
by the maximum combined federal and state income tax rate applicable to a
corporate member.  Amounts distributed
pursuant to this Section 9.3 shall be treated as advance distributions of
amounts to which the Member otherwise would be entitled to pursuant to Section
9.1.

Section 9.4            Liquidating Distributions.

Liquidating distributions shall be made in accordance
with the Member’s positive Capital Account balances.  Prior to any liquidating distributions, the
assets of the Company shall be appraised at fair market value by an appraiser
selected by the Managing Member.  Any
items of income, gain, loss, expense or deduction that would have resulted had
such assets been sold at such appraised fair market value shall be allocated to
the Members in accordance with Article VIII. 
Each Member shall then be entitled to receive cash and property with a
fair market value equal to the positive balance in such Member’s Capital
Account after the foregoing allocations. 
No Member shall have the right to receive any particular asset of the
Company, and the nature of the assets to be distributed to each Member shall be
determined by the Managing Member.  No
Member shall have the obligation to restore or repay any negative balance in
its Capital Account.

Section 9.5            Limitation on Distributions.

Notwithstanding any provision to the contrary
contained in this Agreement, the Company, and the Managing Member on behalf of
the Company, shall not be required to make a

 19
 

 

distribution to any
Member on account of its Interests if such distribution would violate Sections
18-607 or 18-804(a)(1) of the Delaware Act or other applicable law.

ARTICLE X

BOOKS AND
RECORDS

Section 10.1         Books,
Records and Financial Statements.

(a)           At all times during
the continuance of the Company, the Company shall maintain, at its principal
place of business, separate books of account for the Company that shall show a
true and accurate record of all costs and expenses incurred, all charges made,
all credits made and received and all income derived in connection with the
operation of the Company business on a tax basis, and, to the extent
inconsistent therewith, in accordance with this Agreement.  In accordance with Section 18-305 of the Delaware
Act, such books of account, together with a copy of this Agreement and of the
Certificate, shall at all times be open to inspection and examination at
reasonable times by each Member and its duly authorized representative for any
purpose reasonably related to such Member’s interest as a member of the
Company.

(b)           The following
financial information shall be transmitted by the Managing Member to each
Member:

(i)            within three (3) months after the
close of each Fiscal Year:

(A)          an audited balance sheet of the
Company as of the close of such Fiscal Year;

(B)           an audited statement of Company
profits and losses for such Fiscal Year;

(C)           a statement of such Member’s Capital
Account as of the close of such Fiscal Year, and changes therein during such
Fiscal Year; and

(D)          a statement indicating such Member’s
share of each item of Company income, gain, loss, deduction or credit for such
Fiscal Year for income tax purposes.

(ii)           within 90 days after the close of
each quarter:

(A)          an unaudited balance sheet as of the
close of such quarter; and

(B)           an unaudited statement of Company
profits and losses for such quarter.

(iii)          within 30 days
after the close of each calendar month, a report of Company profit and loss for
such month.

 20
 

 

Section 10.2         Accounting
Method.  For
both financial and tax reporting purposes and for purposes of determining
profits and losses, the books and records of the Company shall be kept on the
accrual method of accounting applied in a consistent manner and shall reflect
all Company transactions and be appropriate for the Company’s business.

Section 10.3         Audit.  Without limitation of the provisions of
Section 10.1(b), at any time and in the sole discretion of the Managing Member,
the financial statements of the Company may be audited by independent certified
public accountants selected by the Managing Member, with such audit to be
accompanied by a report of such accountant containing its opinion.  The cost of such audits will be an expense of
the Company.  A copy of any such audited
financial statements and accountant’s report will be made available for
inspection by the Members.

ARTICLE
XI

TAX
MATTERS

Section 11.1         Tax
Matters Member.

(a)           The Tax Matters
Member shall arrange for the preparation of and timely filing of all returns
relating to Company income, gains, losses, deductions and credits, as necessary
for federal, state and local income tax purposes.  Each Member agrees to furnish the Company
with any representations and forms as shall reasonably be requested by the
Company to assist it in determining the extent of and in fulfilling its tax
obligations.  The Tribune Members shall
have a right to review in draft form all tax returns of the Company at least 10
days prior to the Company filing such tax returns.

(b)           Trust 1 is hereby
designated as “Tax Matters Member” of the Company for purposes of §
6231(a)(7) of the Code and is authorized and required to represent the Company
in connection with any administrative proceeding at the Company level with the
Internal Revenue Service relating to the determination of any item of Company
income, gain, loss, deduction or credit for federal income tax purposes.  If for any reason the Tax Matters Member
resigns or can no longer serve in that capacity, the Managing Member may
designate another Member to be the Tax Matters Member.

(c)           The Tax Matters Member
shall, within ten (10) days of the receipt of any notice from the Internal
Revenue Service in any administrative proceeding at the Company level relating
to the determination of any Company item of income, gain, loss, deduction or
credit, mail a copy of such notice to each Member.

Section 11.2         Right
to Make Section 754 Election.  The Tax Matters Member may make or revoke, on
behalf of the Company, all elections in accordance with Section 754 of the
Code, so as to adjust the basis of Company property in the case of a
distribution of property within the meaning of Section 734 of the Code,
and in the case of a transfer of a Company interest within the meaning of
Section 743 of the Code.  Each
Member shall, upon request of the Tax Matters Member, supply the information
necessary to give effect to such an election. 
Any

 21
 

 

Trust Member or
Representative has the right to require the Tax Matters Member to make a
Section 754 election.

Section 11.3         Taxation
as Partnership. 
The Company shall be treated as a partnership for U.S. federal income
tax purposes.

ARTICLE
XII

LIABILITY,
EXCULPATION AND INDEMNIFICATION

Section 12.1         Liability.  Except as otherwise provided by the Delaware
Act, the debts, obligations and liabilities of the Company, whether arising in
contract, tort or otherwise, shall be solely the debts, obligations and
liabilities of the Company, and no Covered Person shall be obligated personally
for any such debt, obligation or liability of the Company solely by reason of
being a Covered Person.

Section 12.2         Exculpation.

(a)           No Covered Person shall be liable to
the Company or any other Covered Person for any loss, damage or claim incurred
by reason of any act or omission performed or omitted by such Covered Person in
good faith on behalf of the Company and in a manner reasonably believed to be
in, or not opposed to, the best interests of the Company and provided that such
action or omission does not constitute fraud or willful misconduct by the
Covered Person.

(b)           A Covered Person shall be fully
protected in relying in good faith upon the records of the Company and upon
such information, opinions, reports or statements presented to the Company by
any Person as to matters the Covered Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the Company, including information,
opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses, or any other facts pertinent to the existence and
amount of assets from which distributions to Members might properly be paid.

Section 12.3         Duties
and Liabilities of Covered Persons.

(a)           To the extent that,
at law or in equity, a Covered Person has duties (including fiduciary duties)
and liabilities relating thereto to the Company or to any other Covered Person,
a Covered Person acting under this Agreement shall not be liable to the Company
or to any other Covered Person for its good faith reliance on the provisions of
this Agreement.  The provisions of this
Agreement, to the extent that they restrict the duties and liabilities of a
Covered Person otherwise existing at law or in equity, are agreed by the
parties hereto to replace such other duties and liabilities of such Covered
Person.

(b)           Unless otherwise
expressly provided herein, (i) whenever a conflict of interest exists or arises
between Covered Persons, or (ii) whenever this Agreement or any other agreement
contemplated herein provides that a Covered Person shall act in a manner that is,
or provides terms that are, fair and reasonable to the Company or any Member,
the Covered Person

 22
 

 

shall resolve such
conflict of interest, taking such action or providing such terms, considering
in each case the relative interest of each party (including its own interest),
such conflict, agreement, transaction or situation and the benefits and burdens
relating to such interests, any customary or accepted industry practices, and
any applicable generally accepted accounting practices or principles.  In the absence of bad faith by the Covered
Person, the resolution, action or term so made, taken or provided by the
Covered Person shall not constitute a breach of this Agreement or any other
agreement contemplated herein or of any duty or obligation of the Covered
Person at law or in equity or otherwise.

(c)           Whenever in this
Agreement a Covered Person is permitted or required to make a decision (i) in
its “discretion” or under a grant of similar authority or latitude, the Covered
Person shall be entitled to consider such interests and factors as it desires,
including its own interests, and shall have no duty or obligation to give any
consideration to any interest of or factors affecting the Company or any other
Person, or (ii) in its “good faith” or under another express standard, the
Covered Person shall act under such express standard and shall not be subject
to any other or different standard imposed by this Agreement or other
applicable law.

Section 12.4         Indemnification.  To the fullest extent permitted by applicable
law, a Covered Person shall be entitled to indemnification from the Company for
any loss, damage or claim incurred by such Covered Person by reason of any act
or omission performed or omitted by such Covered Person in good faith on behalf
of the Company and in a manner reasonably believed to be within the scope of
authority conferred on such Covered Person by this Agreement; provided,  however, that any indemnity under
this Section 12.4 shall be provided out of and to the extent of Company assets
only, and no Covered Person shall have any personal liability on account
thereof.

Section 12.5         Expenses.  To the fullest extent permitted by applicable
law, expenses (including legal fees) incurred by a Covered Person in defending
any claim, demand, action, suit or proceeding shall, from time to time, be
advanced by the Company prior to the final disposition of such claim, demand,
action, suit or proceeding upon receipt by the Company of an undertaking by or
on behalf of the Covered Person to repay such amount if it shall be determined
that the Covered Person is not entitled to be indemnified as authorized in
Section 12.4 hereof.

Section 12.6         Insurance.  The Company may purchase and maintain
insurance, to the extent and in such amounts as the Managing Member shall deem
reasonable, on behalf of Covered Persons and such other Persons as the Managing
Member shall determine, against any liability that may be asserted against or
expenses that may be incurred by any such Person in connection with the
activities of the Company or such indemnities, regardless of whether the
Company would have the power to indemnify such Person against such liability
under the provisions of this Agreement. 
The Managing Member and the Company may enter into indemnity contracts
with Covered Persons and adopt written procedures pursuant to which
arrangements are made for the advancement of expenses and the funding of
obligations under Section 12.5 hereof and containing such other procedures
regarding indemnification as are appropriate.

Section 12.7         Outside
Business. 
Any Member or Affiliate thereof may engage in or possess an interest in
other business ventures of any nature or description independently or with

 23
 

 

others, similar or
dissimilar to the business of the Company, and the Company and the Members
shall have no rights by virtue of this Agreement in and to such independent
ventures or the income or profits derived therefrom, and the pursuit of any
venture, even if competitive with the business of the Company, shall not be
deemed wrongful or improper.  No Member
or Affiliate thereof shall be obligated to present any particular investment
opportunity to the Company even if such opportunity is of a character that, if
presented to the Company, could be taken by the Company, and any Member or Affiliate
thereof shall have the right to take for its own account (individually or as a
partner, shareholder, fiduciary or otherwise) or recommend to others any such
particular investment opportunity.

ARTICLE
XIII

DISSOLUTION,
LIQUIDATION AND TERMINATION

Section 13.1         Dissolution.  The Company shall be dissolved and its
affairs shall be wound up upon the occurrence of any of the following events:

(a)           The death, insanity,
bankruptcy or dissolution of the Managing Member, or the occurrence of any
other event that terminates the continued membership of the Managing Member,
unless remaining Members holding at least a “majority in interest” (within the
meaning of Revenue Procedure 94-46) of the remaining Members agree to
continue the Company within 90 days following the occurrence of any such event;

(b)           the entry of a
decree of judicial dissolution under Section 18-802 of the Delaware Act; or

(c)           upon consent of the
Trust Members.

Section 13.2         Notice
of Dissolution. 
Upon the dissolution of the Company, the Managing Member shall promptly
notify the Members of such dissolution.

Section 13.3         Liquidation.  Upon dissolution of the Company, such
person(s) who shall be selected by the Managing Member, as liquidating
trustee(s), shall immediately commence to wind up the Company’s affairs; provided,
however, that a reasonable time shall be allowed for the orderly
liquidation of the assets of the Company and the satisfaction of liabilities to
creditors so as to enable the Members to minimize the normal losses attendant
upon a liquidation.  In the period of
dissolution and liquidation of the Company, the Members shall be allocated all
items as specified in Article VIII hereof, and shall receive distributions
of cash as provided by Section 9.1; provided, however, that the liquidating
trustees shall have the discretion to set aside adequate reserves for the
payment of the Company’s expenses and liabilities including all contingent,
conditional or unmatured liabilities of the Company.  The proceeds of liquidation shall be distributed
in accordance with Section 9.4 after satisfaction of the liabilities of
the Company, whether by payment or the making of reasonable provision for the
payment thereof.

Section 13.4         Termination.  The Company shall terminate when all of the
assets of the Company have been distributed in the manner provided for in this
Article XIII, and the Certificate shall have been canceled in the manner
required by the Delaware Act.

 24
 

 

Section 13.5         Claims
of the Members. 
Members and former Members shall look solely to the Company’s assets for
the return of their Capital Contributions, and if the assets of the Company
remaining after payment of or due provision for all debts, liabilities and
obligations of the Company are insufficient to return such Capital
Contributions, the Members and former Members shall have no recourse against
the Company or any other Member.

ARTICLE
XIV

REPRESENTATIONS,
WARRANTIES AND

COVENANTS OF THE MEMBERS

Section 14.1         Representations.  Each Member represents and warrants to and
covenants with the other Members and the Company as follows:

(a)           If such Member is an
entity, it is duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation or formation with all requisite power
and authority to enter into this Agreement and to perform its obligations
hereunder.

(b)           This Agreement
constitutes the legal, valid and binding obligation of such Member enforceable
against such Member in accordance with its terms.

(c)           No consents or
approvals from, or notification of or filings with any governmental authority
or other Person are required for such Member to enter into this Agreement.  All action on the part of such Member
necessary for the authorization, execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby, have been duly taken.

(d)           The execution and
delivery of this Agreement by such Member and the consummation of the
transactions contemplated hereby by such Member do not conflict with or
contravene the provisions of any organizational document, agreement or
instrument by which such Member or such Member’s properties are bound or any
law, rule, regulation, order or decree to which such Member or such Member’s
properties are subject.

Section 14.2         Confidentiality.

(a)           Confidential Information.  Each Member shall, except as may be
specifically permitted hereunder, (i) use its best efforts to protect the
proprietary or confidential information of the Company in the same manner it
protects its own proprietary or confidential information, (ii) not disclose to
any other Person (other than to Affiliates or the beneficiaries of the Trusts
who have a legitimate need for or right to such information and who are advised
of the confidential nature of such information; provided, however,
that such Member shall be liable for any disclosure or use of such information
by such Affiliate of beneficiary as if such Member had so disclosed or used
such information) the existence or terms of this Agreement, or any other
contract or agreement between the Company, the Members or the Members’
Affiliates, unless the Managing Member has consented thereto, and (iii) not use
the confidential and proprietary information of the others except to the extent
and for the purposes contemplated in this Agreement or permitted by any other
contract or agreement between the Company, the Members or any of the Members’
Affiliates.

 25
 

 

(b)           Exceptions.  The obligations of confidentiality and nonuse
imposed under this Section 14.2 shall not apply to any confidential or proprietary
information of the disclosing party which:

(i)            is or becomes public or available to
the general public otherwise than through any act or default of the
non-disclosing party;

(ii)           is obtained or derived from a third
party which, to the best knowledge of the non-disclosing party, is lawfully in
possession of such information and does not hold such information subject to
any confidentiality or nonuse obligations; or

(iii)          is required or appropriate to be
disclosed by one of the parties pursuant to applicable law (including, without
limitation, disclosure required or appropriate under the Securities Act or the
Securities Exchange Act); provided, however, that (A) the
obligations of confidentiality and nonuse shall continue to the fullest extent
not in conflict with such law or order, and (B) if and when a party is required
to disclose such confidential or proprietary information pursuant to any such
law or order, such party shall use its best efforts to (1) give the other party
prompt notice of such requirement so as to permit such party time in which to
appeal, oppose or take other protective action and (2) obtain a protective
order or take such other actions as will prevent or limit, to the fullest
extent possible, public access to, or disclosure of, such confidential or
proprietary information.

ARTICLE
XV

MISCELLANEOUS

Section 15.1         Amendments.  Any amendment to this Agreement shall be
adopted and be effective as an amendment hereto if approved by Mutual
Agreement; provided, however, that no amendment shall be made,
and any such purported amendment shall be void and ineffective, to the extent
the result thereof would be to cause the Company to be treated as anything
other than a partnership for purposes of United States income taxation.

Section 15.2         Notices.  All notices provided for in this Agreement
shall be in writing, duly signed by the party giving such notice, and shall be
delivered, telecopied or mailed by registered or certified mail, as follows.

(a)           If given to the
Company, in care of the Managing Member at the Company’s mailing address set
forth below:

Chandler Trust No. 1

350 West Colorado Blvd. Suite 230

Pasadena, California  91105

(b)           If given to any
Member, at the address set forth on Schedule A or, if a current address
does not appear on Schedule A, on the books and records of the Company.

All such notices shall be deemed to have been given
when received.

 26
 

 

Section 15.3         Failure
to Pursue Remedies.  The failure of any party to seek redress for
violation of, or to insist upon the strict performance of, any provision of
this Agreement shall not prevent a subsequent act, which would have originally
constituted a violation from having the effect of an original violation.

Section 15.4         Cumulative
Remedies. 
The rights and remedies provided by this Agreement are cumulative and
the use of any one right or remedy by any party shall not preclude or waive its
right to use any or all other remedies. 
Said rights and remedies are given in addition to any other rights the parties
may have by law, statute, ordinance or otherwise.

Section 15.5         Binding
Effect. 
This Agreement shall be binding upon and inure to the benefit of all of
the parties and, to the extent permitted by this Agreement, their successors,
legal representatives and assigns.

Section 15.6         Interpretation.  Throughout this Agreement, nouns, pronouns
and verbs shall be construed as masculine, feminine, neuter, singular or
plural, whichever shall be applicable. 
All references herein to “Articles,” “Sections” and “Paragraphs”
shall refer to corresponding provisions of this Agreement.

Section 15.7         Severability.  The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were omitted.

Section 15.8         Counterparts.  This Agreement may be executed in any number
of counterparts with the same effect as if all parties hereto had signed the
same document.  All counterparts shall be
construed together and shall constitute one instrument.

Section 15.9         Integration.  This Agreement, together with that certain
letter agreement of even date herewith among the Members, constitutes the
entire agreement among the parties hereto pertaining to the subject matter hereof
and supersedes all prior agreements and understandings pertaining thereto.

Section 15.10       Governing
Law.  This
Agreement and the rights of the parties hereunder shall be interpreted in
accordance with the laws of the State of Delaware, and all rights and remedies
shall be governed by such laws without regard to principles of conflict of
laws.

Section 15.11       Consent
to Jurisdiction and Forum Selection.  To the fullest extent permitted by law, the
parties hereto agree that all actions or proceedings arising in connection with
this Agreement shall be tried and litigated exclusively in the State and
Federal courts located in the County of Los Angeles, State of California or the
State of Delaware.  The aforementioned
choice of venue is intended by the parties to be mandatory and not permissive
in nature, thereby precluding the possibility of litigation between the parties
with respect to or arising out of this Agreement in any jurisdiction other than
that specified in this paragraph.  To the
fullest extent permitted by law, each party hereby waives any right it may have
to assert the doctrine of forum non conveniens or similar doctrine or to object
to venue with respect to any proceeding brought in accordance with this
paragraph, and stipulates that the State and Federal courts located in the
County of Los Angeles, State of California or the State of Delaware shall have
in personam jurisdiction and venue over each of them for the purpose of
litigating any

 27
 

 

dispute, controversy, or
proceeding arising out of or related to this Agreement.  To the fullest extent permitted by law, each
party hereby authorizes and accepts service of process sufficient for personal
jurisdiction in any action against it as contemplated by this paragraph by
registered or certified mail, return receipt requested, postage prepaid, to its
address for the giving of notices as set forth in this Agreement.

Section 15.12       Attorneys’
Fees.  If
either party to this Agreement shall bring any action, suit, counterclaim,
appeal or arbitration for any relief against the other to enforce the terms
hereof or to declare rights hereunder (collectively, an “Action”), the
losing party shall pay to the prevailing party a reasonable sum for attorneys’
fees and costs incurred in bringing and prosecuting such Action and/or
enforcing any judgment, order, ruling, or award.  For the purposes of this paragraph, attorneys’
fees shall include, without limitation, fees incurred in discovery,
postjudgment motions and collection actions, and bankruptcy litigation.  “Prevailing party” within the meaning of this
paragraph includes, without limitation, a party who agrees to dismiss an Action
on the other party’s payment of the sums allegedly due or performance of the
covenants allegedly breached, or who obtains substantially the relief sought by
it.

 28

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement the date first above stated.

	
  

  	
  MEMBERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRIBUNE COMPANY, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
   

  	
  Name: Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CANDLE HOLDINGS CORPORATION, a

  
	
   

  	
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
  Name: 

  	
  Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FORTIFY HOLDINGS CORPORATION, a

  
	
   

  	
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chandler Bigelow

  	
   

  
	
   

  	
  Name: 

  	
  Chandler Bigelow

  
	
   

  	
   

  	
  Title: Vice President

  

[Signature Page to
Amended and Restated LLC Agreement of TMCT LLC]

 

 

	
  

  	
  CHANDLER TRUST NO. 1

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Babcock

  	
   

  
	
   

  	
   

  	
  Susan Babcock, as Trustee of Chandler

  
	
   

  	
   

  	
  Trust No. 1 under Trust Agreement dated

  
	
   

  	
   

  	
  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Chandler

  	
   

  
	
   

  	
   

  	
  Jeffrey Chandler, as Trustee of Chandler 

  
	
   

  	
   

  	
  Trust No. 1 under Trust Agreement dated 

  
	
   

  	
   

  	
  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Camilla Chandler Frost

  	
   

  
	
   

  	
   

  	
  Camilla Chandler Frost, as Trustee of

  
	
   

  	
   

  	
  Chandler Trust No. 1 under Trust

  
	
   

  	
   

  	
  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Goodan

  	
   

  
	
   

  	
   

  	
  Roger Goodan, as Trustee of Chandler Trust

  
	
   

  	
   

  	
  No. 1 under Trust Agreement dated June 26,

  
	
   

  	
   

  	
  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Stinehart, Jr.

  	
   

  
	
   

  	
   

  	
  William Stinehart, Jr., as Trustee of

  
	
   

  	
   

  	
  Chandler Trust No. 1 under Trust

  
	
   

  	
   

  	
  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judy C. Webb

  	
   

  
	
   

  	
   

  	
  Judy C. Webb, as Trustee of Chandler Trust 

  
	
   

  	
   

  	
  No. 1 under Trust Agreement dated June 26,
  

  
	
   

  	
   

  	
  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren B. Williamson

  	
   

  
	
   

  	
   

  	
  Warren B. Williamson, as Trustee of 

  
	
   

  	
   

  	
  Chandler Trust No. 1 under Trust

  
	
   

  	
   

  	
   Agreement
  dated June 26, 1935

  

[Signature Page to
Amended and Restated LLC Agreement of TMCT LLC]

 

 

	
  

  	
  CHANDLER TRUST NO. 2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Babcock

  	
   

  
	
   

  	
   

  	
  Susan Babcock, as Trustee of Chandler

  
	
   

  	
   

  	
  Trust No. 2 under Trust Agreement dated 

  
	
   

  	
   

  	
  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Chandler

  	
   

  
	
   

  	
   

  	
  Jeffrey Chandler, as Trustee of Chandler

  
	
   

  	
   

  	
  Trust No. 2 under Trust Agreement dated 

  
	
   

  	
   

  	
  June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Camilla Chandler Frost

  	
   

  
	
   

  	
   

  	
  Camilla Chandler Frost, as Trustee of 

  
	
   

  	
   

  	
  Chandler Trust No. 2 under Trust

  
	
   

  	
   

  	
  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Goodan

  	
   

  
	
   

  	
   

  	
  Roger Goodan, as Trustee of Chandler Trust

  
	
   

  	
   

  	
  No. 2 under Trust Agreement dated June 26,
  

  
	
   

  	
   

  	
  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Stinehart, Jr.

  	
   

  
	
   

  	
   

  	
  William Stinehart, Jr., as Trustee of

  
	
   

  	
   

  	
  Chandler Trust No. 2 under Trust

  
	
   

  	
   

  	
  Agreement dated June 26, 1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judy C. Webb

  	
   

  
	
   

  	
   

  	
  Judy C. Webb, as Trustee of Chandler Trust 

  
	
   

  	
   

  	
  No. 2 under Trust Agreement dated June 26,

  
	
   

  	
   

  	
  1935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren B. Williamson

  	
   

  
	
   

  	
   

  	
  Warren B. Williamson, as Trustee of 

  
	
   

  	
   

  	
  Chandler Trust No. 2 under Trust

  
	
   

  	
   

  	
  Agreement dated June 26, 1935

  

[Signature Page to Amended and Restated LLC Agreement
of TMCT LLC]

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