Document:

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                                                                   Exhibit 10.19

                            MASTER PROGRAM AGREEMENT

                 This Master Program Agreement dated as of August 1, 2003 (this
"Agreement") by and among CapitalSource Finance LLC, a Delaware limited
liability company ("CapitalSource"), Credit Suisse First Boston Mortgage
Capital, LLC, a Delaware limited liability company ("Repo Counterparty"), Credit
Suisse First Boston LLC, a Delaware limited liability company ("CSFB"), and
Column Financial, Inc., a Delaware corporation ("Column" and, collectively with
Repo Counterparty and CSFB, the "CSFB Parties").

                              W I T N E S S E T H:

          WHEREAS, CapitalSource and Column intend to originate and/or
purchase mortgage loans secured by skilled nursing facilities (the "Loans") and
subsequently securitize such Loans from time to time;

                  WHEREAS, CapitalSource Funding II LLC ("CapitalSource
Funding") and Repo Counterparty intend to enter into that certain Master
Repurchase Agreement dated August 1, 2003 (the "Repo Agreement") pursuant to
which CapitalSource Funding will be able to finance the origination of certain
of such Loans;

                  WHEREAS, CapitalSource and the CSFB Parties wish to agree on
the criteria that will make Loans originated by CapitalSource eligible to be
financed under the Repo Agreement and subsequently securitized;

                  WHEREAS, CapitalSource and the CSFB Parties wish to agree on
the criteria that will make Loans originated by Column eligible for
CapitalSource to purchase a subordinate participation interest and to be
subsequently securitized;

                  WHEREAS, CapitalSource wishes to purchase certain securities
issued in connection with the securitization of such Loans; and

                  WHEREAS, CapitalSource and the CSFB Parties wish to agree on
certain other terms of the intended future securitizations of certain of such
Loans.

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

        Section 1.01 Definitions. As used in this Agreement, the following terms
shall have the following meanings:

        "Accrued Interest Amount" shall mean, with respect to a Sub-pool
Securitization, the aggregate amount of interest assumed to accrue on each class
of securities assumed to be

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 issued in such Sub-pool Securitization from the date
on which interest is assumed to begin accruing on such securities to the
settlement date of the Securitization for which the Sub-pool Securitization has
been modeled.

        "Aggregate Securitization Proceeds" shall have the meaning given such
term in Section 4.04(b).

        "Applicant" shall have the meaning given such term in Section 2.02(b).

        "Appraisal" shall mean an appraisal of the subject property, which is
acceptable to the Reviewer of the subject Loan in its reasonable discretion, and
which is prepared (a) by an Approved Appraiser and (b) in accordance with all
applicable regulations issued pursuant to Title XI of the Financial Institution
Reform, Recovery, and Enforcement Act of 1989 and the requirements of the
Standards of Professional Appraisal Practice of the Appraisal Institute and the
Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal
Foundation.

        "Appraised Value" means the value set forth in an Appraisal made in
connection with the origination or purchase of a Loan as the value of the
related Mortgaged Property.

        "Approved Appraiser" shall mean an appraiser listed on Schedule II or
otherwise approved by the Reviewer.

        "Approved Environmental Consultant" shall mean an environmental
consultant listed on Schedule III or otherwise approved by Column.

        "Approved Engineering Consultant" shall mean an engineering consultant
listed on Schedule IV or otherwise approved by Column.

        "Approved Loan" shall have the meaning given such term in Section
2.02(a).

        "Assumed IO Rate" shall have the meaning given such term in Section
4.04(d).

        "Business Day" shall mean any day other than a Saturday, Sunday or a day
on which banking institutions in the City of New York, New York are authorized
or obligated by law, executive order or governmental decree to be closed.

        "CapitalSource" shall have the meaning given in the first paragraph of
this Agreement.

        "CapitalSource Accrued Interest Amount" shall have the meaning given
such term in Section 4.04(d).

        "CapitalSource Excess Spread" shall have the meaning given such term in
Section 4.04(a).

        "CapitalSource Funding" shall have the meaning given such term in the
Recitals of this Agreement.

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        "CapitalSource IO Percentage" shall have the meaning given such term in
Section 4.04(d).

        "CapitalSource Junior Class" shall have the meaning given such term in
Section 4.04 (d).

        "CapitalSource Junior Percentage" shall have the meaning given such term
in Section 4.04 (d).

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

        "Column" shall have the meaning given such term in the first paragraph
of this Agreement.

        "CSFB Accrued Interest Amount" shall have the meaning given such term in
Section 4.04(d).

        "CSFB Fee" shall have the meaning given such term in Section 4.04(e).

        "CSFB IO" shall have the meaning given such term in Section 4.04(d).

        "CSFB IO Class" shall have the meaning given such term in Section
4.04(a).

        "CSFB IO Percentage" shall have the meaning given such term in Section
4.04(d).

        "CSFB Junior Class" shall have the meaning given such term in Section
4.04(d).

        "CSFB Junior Percentage" shall have the meaning given such term in
Section 4.04 (d).

        "CSFB Parties" shall have the meaning given such term in the first
paragraph of this Agreement.

        "Depositor" shall have the meaning given such term in Section 4.02.

        "Eligibility Criteria" shall mean the criteria listed in Schedule I.

        "Engineering Report" shall mean an engineering/architectural review of
the subject property conducted by an Approved Engineering Consultant, which is
acceptable to the Reviewer of the subject Loan in its reasonable discretion, and
which will (a) consider, among other things, structural adequacy, special
hazards (e.g., sinkholes, earthquakes), soil conditions, foundation stability,
quality of physical maintenance, adequacy of site drainage, design defects that
may lead to unusual capital expenditures, adequacy of utilities, roof
structures, HVAC systems, fire and safety systems and overall evaluation of
construction quality and design and (b) summarize (i) the current condition of
the property, including any deferred maintenance, (ii) any immediate repairs
needed and the estimated cost and (iii) anticipated capital repairs and
improvements and the estimated cost.

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        "Environmental Report" shall mean an ASTM standard Phase I Environmental
Assessment prepared by an Approved Environmental Consultant, which is acceptable
to the Reviewer of the subject Loan in its reasonable discretion, and which
identifies historical and current "Recognized Environmental Conditions" using
the methodology recommended by ASTM specifically referred to as Standard
Practices of Environmental Assessments: Phase I Environmental Site Assessment
Process Designation: E 1527-00 (without exception therefrom) and addresses the
common risks associated with commercial real estate, including (a) asbestos, (b)
PCB, (c) radon, (d) pollution/chemical waste, (e) noise/odors, (f) other latent
chemical exposure, including lead, (g) HVAC systems and (h) mold and, if
recommended by such Phase I Environmental Assessment, a Phase II Environmental
Assessment with appropriate physical sample analysis to establish the presence
or absence of a hazardous element.

        "Event of Default" shall have the meaning given such term in the Repo
Agreement.

        "Excess Spread" shall have the meaning given such term in Section
4.04(a).

        "Interim Servicing Agreement" shall have the meaning given such term in
Section 4.09(a).

        "Investment Grade Subordinate Securities" shall have the meaning given
such term in Section 4.03.

        "Junior Participation Interest" shall have the meaning given such term
in Section 3.01.

        "LIBOR" shall have the meaning given such term in the form documents
attached as Exhibit C.

        "Loan" shall have the meaning given such term in the Recitals.

        "Loan Summary" shall mean a summary substantially in the form attached
hereto as Exhibit A.

        "Loan-to-Value Ratio" shall mean, with respect to any Loan, the ratio of
the outstanding principal amount of the Loan as of the date on which such Loan
is submitted for approval under Section 2.02 to the Appraised Value of the
related Mortgaged Property, expressed as a percentage.

        "Moody's" shall mean Moody's Investors Service, Inc.

        "Mortgage" shall mean each mortgage, assignment of rents, security
agreement and fixture filing, or deed of trust, assignment of rents, security
agreement and fixture filing, deed to secure debt, assignment of rents, security
agreement and fixture filing, or similar instrument creating and evidencing a
lien on real property and other property and rights incidental thereto.

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        "Mortgage Note" shall mean the promissory note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

        "Mortgaged Property" shall mean the real property securing repayment of
the debt evidenced by a Mortgage Note.

        "Mortgagor" shall mean the obligor or obligors on a Mortgage Note,
including any person who has assumed or guaranteed the obligations of the
obligor thereunder.

        "Net WAC" shall have the meaning given such term in Section 4.04(a).

        "Participation Interests" shall have the meaning given such term in
Section 3.01.

        "Pipeline Registry" shall have the meaning given such term in Section
2.03.

        "Portfolio" means all Portfolio Mortgage Loans which are
cross-collateralized and/or cross-defaulted with each  other.

        "Portfolio Mortgage Loan" means a Loan which is part of a portfolio of
cross-collateralized and/or cross-defaulted mortgage loans.

        "Prime Rate" shall have the meaning given such term in the form
documents attached as Exhibit C.

        "Related Proceeding" shall have the meaning given such term in Section
6.10.

        "REMIC" shall mean "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code.

        "Reviewer" shall have the meaning given such term in Section 2.02(b).

        "S&P" shall mean Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

        "SEC" shall mean the Securities and Exchange Commission, or any
successor thereto.

        "Securitization" shall have the meaning given such term in Section 4.01.

        "Senior Participation Interest" shall have the meaning given such term
in Section 3.01.

        "Senior Participation Securitization" shall have the meaning given such
term in Section 4.01(b).

        "Structured Yield" shall have the meaning given such term in Section
4.04(d).

        "Subordinated Securities" shall have the meaning given such term in
Section 4.03.

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        "Sub-pool Securitization" shall have the meaning given such term in
Section 4.04(d).

        "Underwriting Guidelines" shall mean the underwriting guidelines agreed
to by CapitalSource and the CSFB parties, as amended from time to time upon the
mutual agreement of CapitalSource and the CSFB parties, a copy of which is
attached hereto as Exhibit B.

        Section 1.02 Interpretations.

      (a)   All terms defined in this Agreement shall have the defined meanings
set forth in Section 1.01 when used in any certificate or other document made or
delivered pursuant hereto unless otherwise defined in such certificate or
document.

      (b)    The words "including" and "include" shall be deemed to be followed
by the words "without limitation." All references in this Agreement to
designated Articles, Sections, Schedules, Exhibits and other subdivisions are,
unless otherwise specified, to designated Articles, Sections, Schedules,
Exhibits and subdivisions of this Agreement. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provisions of this
Agreement. All words importing the singular number include the plural number and
vice versa; and all words importing the masculine gender include the feminine
gender.

      (c)    Article, Section, Schedule and Exhibit headings used herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be considered in interpreting, this Agreement.

      (d)   Schedules and Exhibits to this Agreement shall be considered part of
this Agreement.

                                   ARTICLE II

                          LOAN ELIGIBILITY AND APPROVAL

        Section 2.01 Eligibility Criteria. Unless otherwise agreed to in writing
        in the sole discretion of Column (acting for itself and Repo
        Counterparty), in order to be eligible to be financed in accordance with
        the Repo Agreement, a Loan originated by CapitalSource must satisfy the
        Eligibility Criteria listed on Schedule I. Subject to the immediately
        succeeding sentence and unless otherwise agreed to in writing in the
        sole discretion of CapitalSource (in the case of Loans originated or
        purchased by Column) or Column (acting for itself and CSFB in the case
        of Loans originated or purchased by CapitalSource), in order to be
        eligible to be included in a securitization undertaken in accordance
        with Section 4.01, a Loan originated or purchased by CapitalSource or
        Column must satisfy the Eligibility Criteria at the time of origination
        and, unless otherwise mutually agreed by the parties hereto, at the time
        of intended securitization.

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        Section 2.02    Procedure for Approval of Mortgage Loans.

        (a)   CapitalSource acknowledges and agrees that it must obtain Column's
approval of a Loan (which, if granted, shall be granted by Column on behalf of
Column and Repo Counterparty) in accordance with the procedures described in
Section 2.02(b)-(d) before such Loan may be financed under the Repo Agreement or
included in a securitization undertaken in accordance with Section 4.01. Column
acknowledges and agrees that it must obtain CapitalSource's approval of a Loan
in accordance with the procedures described in Section 2.02(b)-(d) before
CapitalSource will be required to purchase a subordinate participation interest
therein pursuant to Section 3.01, and before such Loan can be included in a
securitization undertaken in accordance with Section 4.01. Each Loan that has
been approved in accordance with the procedures set forth in Section 2.02(b)-(d)
shall be an "Approved Loan." Repo Counterparty agrees to finance under the Repo
Agreement each Approved Loan originated by CapitalSource; provided, that,
CapitalSource submit such Approved Loan for financing under the Repo Agreement
in accordance with the terms of the Repo Agreement within sixty (60) days of the
date on which such Approved Loan is approved as an Approved Loan hereunder. Each
Approved Loan originated or purchased by either CapitalSource or Column may be
included in a securitization undertaken in accordance with Section 4.01 if, at
the time of intended securitization, it satisfies the requirements of the
relevant rating agencies.

        (b)   The party seeking approval of a Loan ("Applicant") shall submit to
the party from whom approval is being sought ("Reviewer") an application package
that shall include the following as each relates to such Loan:

        (i)   financial statements with respect to the nursing facility for the
    immediately preceding three years to the extent available and a full
    underwriting of the related property accompanied by an agreed upon
    procedures letter verifying such financial statements and underwriting;

        (ii)  name of borrower and property manager and a description of
    experience;

        (iii) a completed Loan Summary (i.e., a credit write-up);

        (iv)  term sheet, indicating primary loan terms (including a quote of an
    interest rate spread to LIBOR or the Prime Rate);

        (v) an Appraisal dated no earlier than six months prior to submission of
    the application package;

        (vi)  an Environmental Report;

        (vii) an Engineering Report;

        (viii) cost reports for the immediately preceding three years to the
    extent available (including a medicare contract and, if applicable, a
    certificate of need);

        (ix)  photographs showing principal interior and exterior aspects of the
    Mortgaged Property including the main entrance and representative resident
    rooms;

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                (x) maps showing the location of the city in which the Mortgaged
        Property is located and of the Mortgaged Property within such city;

                (xi) the draft Note (marked to show changes from the form
        document attached as part of Exhibit C);

                (xii) the draft mortgage (marked to show changes from the form
        document attached as part of Exhibit C);

                (xiii) the draft cash management agreement (marked to show
        changes from the form document attached as part of Exhibit C);

                (xiv) draft guaranties and indemnities (marked to show changes
        from the form documents attached as part of Exhibit C);

                (xv) any post-closing obligation letters, to the extent
        available at such time; and

                (xvi) any draft receivables agreements, which shall include the
        amount of the related receivable line.

                (c) Reviewer shall, in writing, approve or reject the proposed
Loan within seven (7) Business Days after receipt of all items listed in Section
2.02(b) above. Should any such items be materially modified or amended after
being submitted to Reviewer, Applicant shall resubmit such modified or amended
items to Reviewer for approval in accordance with this Section 2.02.
Notwithstanding anything contained herein to the contrary and regardless of
whether the proposed Loan meets the Eligibility Criteria, a Reviewer may reject
any proposed Loan in its absolute discretion.

                (d) In connection with the process provided for in this Section
2.02, Applicant agrees, with respect to each Loan submitted by it for approval,
to investigate completely and thoroughly every underwriting and legal matter in
accordance with the Underwriting Guidelines, and, with respect to matters not
addressed by the Underwriting Guidelines, to use such origination and
underwriting practices as a reasonably prudent lender would use in underwriting
and originating Loans comparable to the subject mortgage loans and exercising a
standard of care customary in the commercial mortgage lending industry. In
addition, Applicant agrees to use the form documents attached as Exhibit C in
originating the Loans submitted for approval hereunder and to only make those
changes to such forms as are reasonably necessary.

                (e) Loans may be submitted by CapitalSource for approval
hereunder only so long as (i) CapitalSource is entitled to submit Loans for
financing under the Repo Agreement and (ii) no Event of Default has occurred and
is continuing.

                Section 2.03 Registration of Loans. CSFB and CapitalSource agree
to utilize CSFB's loan registry (located at www2.columnfinancial.com/pipeline/)
(the "Pipeline Registry").

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                                  ARTICLE III

                       PURCHASE OF PARTICIPATION INTERESTS

                Section 3.01 Participation Interests. CapitalSource agrees to
purchase from Column a 20% subordinate, first-loss participation interest (a
"Junior Participation Interest") in any Approved Loan originated by Column.
Column will initially retain an 80% senior participation interest in such loans
(a "Senior Participation Interest" and, together with the Junior Participation
Interest, the "Participation Interests"). CapitalSource shall purchase each
Junior Participation Interest at a price equal to par, and such Junior
Participation Interest will accrue interest in an amount equal to the lesser of
(i) a portion of the mortgage interest accruals on the Approved Loan such that
CapitalSource receives a 20% annualized yield on such Junior Participation
Interest, or (ii) 100% of the mortgage interest accruals on such Approved Loan.

                Section 3.02 Participation Agreement. The Participation
Interests in each Approved Loan will be governed by the terms of a participation
agreement between Column and CapitalSource (each, a "Participation Agreement")
substantially in the form attached hereto as Exhibit D.

                                   ARTICLE IV

                        SECURITIZATION OF APPROVED LOANS

        Section 4.01   Timing of Securitizations.

        (a)   At such time as the parties mutually agree, CapitalSource and CSFB
shall arrange for the securitization of any or all existing Approved Loans (each
such securitization, a "Securitization"). The decision of the parties to
commence a Securitization shall be binding on such parties, unless (i) either
party notifies the other party of its decision to withdraw from the
Securitization within two Business Days after receipt of preliminary
subordination levels from the relevant rating agencies or (ii) the actual final
subordination levels required by the relevant rating agencies to support
investment-grade securities (i.e., the principal balance of all securities rated
below "BBB-") exceeds the preliminary subordination levels indicated by the
rating agencies with respect to such securities by more than 2% of the aggregate
principal balance of the Approved Loans to be included in such proposed
securitization.

        (b)   In the event that CapitalSource and CSFB cannot mutually agree to
arrange for the securitization of the Approved Loans, CSFB may elect to
securitize its Senior Participation Interests at any time in its sole discretion
(each such securitization of the Senior Participation Interests, a "Senior
Participation Securitization"). CSFB shall ensure that any servicing agreement
prepared in connection with any Senior Participation Securitization is not
inconsistent with any related Participation Agreement.

        Section 4.02 General Structure of Securitization. CSFB shall cause its
affiliate, Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"), to act as depositor of each Securitization. With respect to each
Securitization, CapitalSource will sell the Approved Loans that it originated,
and each of CapitalSource and Column will sell its respective

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Participation Interest in the Approved Loan originated by Column, to the
Depositor pursuant to a mortgage loan purchase and sale agreement in form and
substance customary for similar transactions and acceptable to the relevant
rating agencies. Following the purchase by the Depositor of both Participation
Interests with respect to any Loan, the Participation Agreement with respect to
such Loan shall be terminated. The Depositor shall have control over the
structure of the Securitization and shall manage the Securitization process
(including the selection of rating agencies and hiring of service providers
(including, without limitation, the lead counsel, accountants, financial printer
and trustee) in connection therewith), subject to the requirements of this
Article IV. Notwithstanding the foregoing, CapitalSource shall have the right to
disapprove any major decision of the Depositor with respect to a Securitization
to the extent that CapitalSource reasonably disagrees with such decision;
provided that all decisions with respect to a Securitization undertaken pursuant
to Section 4.01(b) shall be made by the Depositor in its sole and absolute
discretion. With respect to each Securitization, each of CapitalSource and
Column agree to provide any additional documents related to the origination of
the subject mortgage loans as required by the relevant rating agencies.

                Section 4.03  Purchase of Securities. With respect to each
Securitization, CapitalSource agrees to purchase at closing (or, in the sole
discretion of CSFB, within two weeks thereof) the Subordinated Securities.
Notwithstanding the foregoing, CapitalSource shall have no obligation to
purchase any Subordinated Securities in connection with a Senior Participation
Securitization. "Subordinated Securities" shall mean, with respect to a
Securitization, the greater of (i) all of the securities issued in such
Securitization with a rating by at least one rating agency below "BBB-" or the
equivalent, or (ii) the most subordinated securities issued in such
Securitization having an aggregate principal amount equal to 20% of the
aggregate principal balance of all of the securities issued in such
Securitization (the portion of such Subordinated Securities having a rating of
at least "BBB-" or the equivalent being referred to herein as the "Investment
Grade Subordinate Securities"). CapitalSource shall pay a purchase price to the
Depositor for the Subordinated Securities equal to 100% of the principal balance
thereof (which purchase price shall be a portion of the aggregate Securitization
proceeds to be divided pursuant to Section 4.04). In connection with each such
purchase of securities, CapitalSource shall make representations and warranties
that are customary for the purchaser of securities to make in similar
transactions.

        Section 4.04   Division of Securitization Proceeds; Excess Spread.

        (a)   Each Securitization shall be in a multi-class, senior/subordinated
trust structure. The interest rates on the various classes of investment grade
securities shall be set so as to achieve the maximum aggregate sales prices for
such classes. The classes of Subordinated Securities shall accrue interest at a
rate equal to the sum of (i) the weighted average of the interest rates on the
Approved Loans included in the Securitization (calculated on the basis of a
360-day year of twelve 30-day months), net of trustee and servicing fees (the
"Net WAC") and (ii) the portion of the Excess Spread allocable to CapitalSource
pursuant to the succeeding sentence and Sections 4.04(c) and (d) below. Interest
accruing at a rate equal to the excess of the Net WAC over the weighted average
of the interest rates on the classes of securities other than the Subordinated
Securities on a notional balance equal to the aggregate principal balance of
such classes (calculated on the basis of a 360-day year of twelve 30-day months)
("Excess Spread") shall be divided between CapitalSource (as increased interest
on the Subordinated

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Securities) (the "CapitalSource Excess Spread") and a class of interest-only
securities to be purchased by CSFB ( the "CSFB IO Class").

        (b)   With respect to each Securitization, the actual proceeds of the
sale of all classes of securities other than the CSFB IO Class and the
Subordinated Securities (with the proceeds of the sale of the Subordinated
Securities being assumed for purposes of this Section 4.04(b) to be par) and the
assumed proceeds of the sale of the Subordinated Securities (collectively for
each Securitization, the "Aggregate Securitization Proceeds"), exclusive of
accrued interest collected shall be allocated pro rata in accordance with the
principal balance of Loans and Participation Interests contributed to the
Securitization by Column on the one hand and CapitalSource on the other. Accrued
interest collected from the sale of all certificates in connection with a
Securitization, including the CSFB IO and Excess Spread allocated to
CapitalSource in Section 4.04(c), shall be allocated pro rata based on the CSFB
Accrued Interest Amount and the CapitalSource Accrued Interest Amount. Aggregate
Securitization Proceeds allocated to CapitalSource will be applied first in
reduction of the assumed purchase price of the Subordinated Securities before
any actual proceeds are distributed to CapitalSource.

        (c)   With respect to each Securitization, CapitalSource shall be
entitled to the CapitalSource IO Percentage (as defined below) of the Excess
Spread (by notional balance). CapitalSource will further be entitled to the
portion, if any, of the CSFB IO Percentage (as defined below) of the Excess
Spread (by notional balance) which, when added to the interest accruing on the
CSFB Junior Certificates (as defined below at the pass-through rate thereof,
will give CapitalSource the lesser of (i) (A)  a coupon on the aggregate
principal amount of the portion of the CSFB  Junior Certificates constituting
Investment Grade Subordinate Securities (but such portion not to exceed 5% of
the aggregate principal balance of all the securities issued in such
Securitization), of 10%, (calculated on the basis of a 360-day year of twelve
30-day months), plus (B) a coupon on the aggregate principal amount of the
remaining portion of the CSFB Junior Certificates, of 17%, (calculated on the
basis of a 360-day year of twelve 30-day months); or (ii) 100% of the CSFB IO
Percentage of the Excess Spread. Any remaining portion of the CSFB IO Percentage
of the Excess Spread that CapitalSource is not entitled to pursuant to the
preceding sentence will be divided 60% to CSFB and 40% to CapitalSource.

        (d)   In order to calculate the CSFB IO Percentage, the CapitalSource IO
Percentage, the CSFB Junior Percentage, the CapitalSource Junior Percentage, the
CSFB Accrued Interest Amount and the CapitalSource Accrued Interest Amount with
respect to any Securitization, CSFB shall model each Securitization as two
separate securitizations ("Sub-pool Securitizations"), with one such Sub-pool
Securitization including all Loans contributed by CapitalSource and the other
such Sub-pool Securitization including all Loans contributed by Column
(including both Senior Participation Interests and Junior Participation
Interests with respect to such Loans), but otherwise having identical class
structures and pass-through rates (other than (i) the pass-through rates of the
interest only classes, which will be derived from the Net WAC of the related
Loans and the pass-through rates of the other classes (such interest only
coupons, the "Assumed IO Rates"), (ii) class sizes, which will be based upon the
sub-pool subordination levels supplied by the rating agencies rating such
Securitization, and (iii) the pass-through rates of the junior classes, which
will be equal to the Net WAC of the related Loans and (iv) Accrued Interest
Amounts). With respect to a Securitization, (i) the assumed interest only class
from the related Sub-pool Securitization assumed to include the CapitalSource
Loans is

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referred to as the "CapitalSource IO" and the assumed interest only class from
the related Sub-pool Securitization assumed to include the Column Loans is
referred to as the "CSFB IO," and (ii) the Accrued Interest Amount from the
related Sub-pool Securitization assumed to include the Capital Source Loans is
referred to as the "CapitalSource Accrued Interest Amount" and the Accrued
Interest Amount from the related Sub-pool Securitization assumed to include the
Column Loans is referred to as the "CSFB Accrued Interest Amount." The
"CapitalSource IO Percentage" for each Securitization will be equal to a
fraction, expressed as a percentage, (X) the numerator of which is product of
the initial pass-through rate of the related CapitalSource IO and the initial
notional amount thereof, and (Y) the denominator of which is the sum of the
amount calculated in clause (X) and the product of the initial pass-through rate
of the Related CSFB IO and the initial notional amount thereof. The "CSFB IO
Percentage" for each Securitization will be equal to 100% minus the related
CapitalSource IO Percentage. With respect to a Securitization, the assumed
Subordinated Securities from the related Sub-pool Securitization (i.e., the most
subordinate 20% or, if greater, the non-investment grade classes) assumed to
include the CapitalSource Loans is referred to as the "CapitalSource Junior
Class" and the assumed Subordinated Securities from the related Sub-pool
Securitization (i.e., the most subordinate 20% or, if greater, the
non-investment grade classes) assumed to include the Column Loans is referred to
as the "CSFB Junior Class." The "CapitalSource Junior Percentage" for each
Securitization will be equal to a fraction, expressed as a percentage, (X) the
numerator of which is the principal balance of the CapitalSource Junior Class,
and (Y) the denominator of which is the aggregate principal balance of the
CapitalSource Junior Class and the CSFB Junior Class. The "CSFB Junior
Percentage" for each Securitization will be equal to 100% minus the related
CapitalSource Junior Percentage. The "CSFB Junior Certificates" for any
Securitization will be a portion of the Subordinated Securities issued in such
Securitization equal to the product of the CSFB Junior Percentage and the
aggregate principal balance of the Subordinated Securities.

        (e)   In the event that, with respect to any Securitization, either (i)
par execution is not achieved with respect to any class of certificates (other
than the Subordinated Securities or the CSFB IO Class) or (ii) the projected
performance of the related CapitalSource IO and the related CSFB IO (calculated
using consistent CPR assumptions and other standard assumptions for CMBS
modeling) differ materially from each other (due to variations in lock-out
period or principal payment characteristics of the related Loans), then the
parties shall agree on appropriate variations to the above-described
methodologies for division of Securitization proceeds and Excess Spread.

        (f)   In addition, if the Approved Loans sold by Column or CapitalSource
with respect to any Securitization include loans that accrue interest at a
variable rate that is tied to LIBOR but that, pursuant to the related loan
documents, never falls below a certain minimum rate (such minimum rate, the
"LIBOR Floor"), then the securities issued by such Securitization shall include
a class (or, if such Loans are sold by both Column and CapitalSource into a
particular Securitization, two classes) of interest-only certificates (such
class or classes, the "LIBOR Floor Certificates") which shall represent the
right to receive, with respect to such Approved Loans, the excess, if any, of
the LIBOR Floor over LIBOR. CapitalSource shall be entitled to the LIBOR Floor
Certificates relating to its Approved Loans. The LIBOR Floor Certificates
relating to the Approved Loans contributed by CSFB will be divided in the same

                                      -12-
<PAGE>

manner as, and treated as part of, the CSFB IO Percentage of Excess Spread in
accordance with Section 4.04(c) hereof.

        Section 4.05  Source of Loans for Securitizations. Unless agreed to by
CapitalSource, Column and CSFB (each in its sole discretion), no Loans other
than Approved Loans may be included in any Securitization.

        Section 4.06  Manager of Securitizations. CSFB shall be the sole lead
manager and sole book runner on any securitization of Approved Loans that are
financed under the Repo Agreement.

        Section 4.07  Manager's Fee. CapitalSource will pay CSFB a fee, as
structurer and placement agent/underwriter for each Securitization, of 1.00% of
the total principal balance of all the securities created pursuant to such
Securitization (the "CSFB Fee"). The CSFB Fee with respect to a Securitization
shall be payable on the closing date of such Securitization.

        Section 4.08  Origination and Exit Fees. CapitalSource shall be entitled
to receive all origination fees and exit fees with respect to Approved Loans
originated by CapitalSource and included in a Securitization. CSFB shall be
entitled to receive all origination fees with respect to Approved Loans
originated by Column and included in a Securitization. CapitalSource shall be
entitled to receive all exit fees with respect to Approved Loans originated by
Column and included in a Securitization; provided, however, that CapitalSource
shall not receive any such exit fees in connection with a Senior Participation
Securitization or in the event that it does not purchase the Subordinated
Securities as required by Section 4.03.

        Section 4.09 Servicing.

        (a)   After the origination but prior to the securitization of the Loans
originated by Column, ORIX Real Estate Capital Markets LLC or such other
servicer that is reasonably acceptable to the parties to this Agreement will act
as servicer and CapitalSource will act as special servicer. After the
origination but prior to the securitization of the Loans originated by
CapitalSource, ORIX Real Estate Capital Markets LLC or such other servicer that
is reasonably acceptable to the parties to this Agreement will act as servicer
and CapitalSource will act as primary servicer and special servicer. In each
case, the servicing arrangement shall be documented in a separate interim
servicing agreement (each, an "Interim Servicing Agreement") which shall be in
form and substance reasonably acceptable to the parties hereto. Upon the
consummation of a Securitization or a Senior Participation Securitization, the
Interim Servicing Agreement will terminate with respect to any Approved Loans or
Senior Participation Interests securitized therein and no compensation shall be
due to CapitalSource in connection with such termination.

        (b)   The Depositor shall choose the servicer for each Securitization or
Senior Participation Securitization; provided, that, the servicer of the
Approved Loans that are securitized must be on S&P's approved list of servicers
rated at least CMS3 by Fitch and acceptable to Moody's. CapitalSource shall
choose the special servicer for each Securitization; provided, that, the special
servicer of the Approved Loans that are securitized must be on S&P's approved
list of special servicers and must be acting as special servicer in one or more

                                      -13-
<PAGE>

        commercial mortgage loan securitizations that was rated by
        Moody's and Fitch in the prior six (6) months and Moody's or Fitch, as
        applicable, has not downgraded or withdrawn the then-current rating on
        any class of commercial mortgage securities or placed any class of
        commercial mortgage securities on watch citing the continuation of such
        special servicer as special servicer of such commercial mortgage
        securities; provided, further, that CapitalSource shall not be entitled
        to choose the Special Servicer in connection with a Senior Participation
        Securitization or in the event that it does not purchase the
        Subordinated Securities as required by Section 4.03.

                (c) CSFB agrees to reasonably cooperate with CapitalSource in
CapitalSource's efforts to obtain the necessary approvals and ratings to enable
CapitalSource or an affiliate to act as servicer and special servicer of the
Securitizations.

                (i) If, prior to a Securitization, CapitalSource receives all
        such approvals and ratings, CSFB and CapitalSource agree that
        CapitalSource shall be retained as the servicer and/or special servicer
        for such Securitization and shall be compensated therefor at an annual
        rate consistent with then-market standards; provided, however, that
        CapitalSource shall not be retained as the servicer and/or special
        servicer in connection with a Senior Participation Securitization or in
        the event that it does not purchase the Subordinated Securities as
        required by Section 4.03. CapitalSource agrees to pay all expenses
        related to the process of obtaining the necessary approvals and ratings
        to enable it to act as servicer and special servicer of the
        Securitizations.

                (ii) If, prior to a Securitization, CapitalSource fails to
        receive all such approvals and ratings, CSFB and CapitalSource agree
        that any servicer or special servicer retained for such Securitization
        shall agree to retain CapitalSource as sub-servicer or sub-special
        servicer, as applicable.

                Section 4.10 Expenses. Each of CSFB and CapitalSource agrees to
pay (or cause to be paid) its pro rata share of the following expenses with
respect to each Securitization based on the proportion that the principal amount
of the Approved Loans that Column (in the case of CSFB) and CapitalSource
contributes to such Securitization bears to the total aggregate principal amount
of the Approved Loans included in such Securitization: (a) the reasonable fees,
disbursements and expenses of counsel to the CSFB Parties and counsel to
CapitalSource in connection with the issuance of the securities in such
Securitization and all other reasonable expenses in connection with the
preparation of the related offering document and closing documents (including
any compilations thereof) and any other documents in connection with the
offering, purchase, sale and delivery of such securities; (b) the reasonable
fees of accountants in connection with the issuance of such securities; (c) all
expenses in connection with the qualification of such securities, if any, for
offering and sale under state securities laws, including the fees and
disbursements of counsel in connection with such qualification and in connection
with Blue Sky and legal investment surveys; (d) the fees charged by the rating
agency or agencies for rating the securities or the Approved Loans proposed to
be included in such Securitization which ratings have been solicited by any CSFB
Party; (e) if CapitalSource is not the servicer or special servicer for such
Securitization, the reasonable up front fees and expenses of the servicer and/or
special servicer and the reasonable fees and disbursements of counsel for the
servicer and/or special servicer in connection with the preparation and review
of the transaction documents; (f) the reasonable up front fees and expenses of
any trustee and the

                                      -14-
<PAGE>

reasonable fees and disbursements of its counsel in connection with the
preparation and review of the transaction documents; (g) the fees of the
financial printer with respect to such Securitization; (h) any cost incurred in
connection with the designation of such securities for trading on PORTAL; and
(i) any additional fees or costs incurred by any CSFB Party in connection with
the purchase, sale and transfer of the Approved Loans to be included in such
Securitization. It is understood, however, that except as provided in this
Section 4.10 and in accordance with Section 4.11, each CSFB Party and
CapitalSource will pay all of its own costs and expenses with respect to each
Securitization; provided, however, that CapitalSource will pay all of the
reasonable loan due diligence expenses incurred by CSFB, including the
reasonable fees of counsel to any CSFB Party, in connection with the on-going
review of Approved Loans proposed to be included in such Securitization that
have not been originated by CSFB or an affiliate. CapitalSource agrees to pay
50% of all of the reasonable costs and expenses of CSFB, Repo Counterparty and
Column (including legal fees and expenses) in connection with the transactions
contemplated by this Agreement and the Repo Agreement (other than the
Securitizations).

        Section 4.11 Indemnification. With respect to each Securitization,
CapitalSource will indemnify the Depositor, CSFB and any co-underwriters against
losses, claims, damages or liabilities to which any such party may become
subject in connection with (i) misstatements or omissions from related
disclosure documents concerning the Approved Loans contributed by CapitalSource
to such Securitization, (ii) CapitalSource or (iii) any other information
provided by CapitalSource for inclusion in such disclosure documents, such
indemnity to be in a form that is customary in similar transactions.

        Section 4.12 Representations and Warranties with Respect to the Approved
Loans. As of the closing date of each Securitization, CapitalSource shall make
the representations and warranties concerning the mortgage loans being sold by
it to the Depositor substantially in the form set forth on Schedule 1 to the
Repo Agreement (subject to any necessary exceptions, which must be approved in
writing by CSFB), with any changes or additions to such representations and
warranties as the relevant rating agencies or investors may require. As of the
closing date of each Securitization, Column shall make the representations and
warranties concerning the loans being sold by it to the Depositor substantially
in the form set forth on Schedule 1 to the Repo Agreement (subject to any
necessary exceptions, which must be approved in writing by CSFB), with any
changes or additions to such representations and warranties as the relevant
rating agencies or investors may require.

        Section 4.13 Refinancing of Approved Loans. CSFB acknowledges that by
the terms of the transaction documents underlying Approved Loans originated by
CapitalSource, CapitalSource may have the right of first refusal to refinance
such Approved Loans. CapitalSource acknowledges that by the terms of the
transaction documents underlying Approved Loans originated by Column, Column may
have the right of first refusal to refinance such Approved Loans.

                                      -15-
<PAGE>

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

        Section 5.01 Representations and Warranties of CapitalSource.
CapitalSource represents and warrants to each of the CSFB Parties that:

        (a) this Agreement has been duly authorized, executed and delivered by
CapitalSource and constitutes the legal, valid and binding obligation of
CapitalSource, enforceable against CapitalSource in accordance with its terms
under New York law, except as such enforcement may be affected by bankruptcy, by
other insolvency laws or by general principles of equity;

        (b) no consent, approval, authorization or order of any New York or
federal governmental agency or body or any New York or federal court is required
for the consummation by CapitalSource of the transactions contemplated by the
terms of this Agreement, except such consents, approvals, authorizations,
filings and notices that have already been made or obtained;

        (c) the consummation by CapitalSource of any of the transactions
contemplated by the terms of this Agreement do not conflict with or result in a
breach or violation of any material term or provision of, or constitute a
default under, the certificate of incorporation or bylaws of CapitalSource, or
any indenture or other agreement or instrument to which CapitalSource is a party
or by which it is bound, or any New York or federal statute or regulation
applicable to CapitalSource or any order of any New York or federal court,
regulatory body, administrative agency or governmental body having jurisdiction
over CapitalSource;

        (d) CapitalSource is a limited liability company created, organized,
existing and in good standing under the laws of Delaware and has the corporate
power to engage in the transactions contemplated by this Agreement; and

        (e) there is no investigation, action, litigation or administrative
proceeding of or before any court, tribunal or governmental body currently
pending or, to the knowledge of CapitalSource, threatened against CapitalSource
(i) that would be likely to affect materially and adversely the validity or
enforceability of this Agreement, or (ii) that could reasonably be expected to
result in any material adverse change in the business, operations, financial
conditions, properties or assets of CapitalSource or the ability of
CapitalSource to carry on its business substantially as it is now conducted.

        Section 5.02 Representations and Warranties of the CSFB Parties. Each of
the CSFB Parties represents and warrants to each other party hereto with respect
to itself that:

        (a) this Agreement has been duly authorized, executed and delivered by
it and constitutes its legal, valid and binding obligation, enforceable against
it in accordance with its terms under New York law;

        (b) no consent, approval, authorization or order of any New York or
federal governmental agency or body or any New York or federal court is required
for the

                                      -16-
<PAGE>

consummation by it of the transactions contemplated by the terms of this
Agreement, except such consents, approvals, authorizations, filings and notices
that have already been made or obtained;

        (c) the consummation by it of any of the transactions contemplated by
the terms of this Agreement do not conflict with or result in a breach or
violation of any material term or provision of, or constitute a default under,
its certificate of incorporation or bylaws, or any indenture or other agreement
or instrument to which it is a party or by which it is bound, or any New York or
federal statute or regulation applicable to it or any order of any New York or
federal court, regulatory body, administrative agency or governmental body
having jurisdiction over it;

        (d) it is a limited liability company created, organized, existing and
in good standing under the laws of the State of Delaware and has the corporate
power to engage in the transactions contemplated by this Agreement; and

        (e) there is no investigation, action, litigation or administrative
proceeding of or before any court, tribunal or governmental body currently
pending or, to its knowledge, threatened against it (i) that would be likely to
affect materially and adversely the validity or enforceability of this
Agreement, or (ii) that could reasonably be expected to result in any material
adverse change in its business, operations, financial conditions, properties or
assets or its ability to carry on its business substantially as it is now
conducted.

                                   ARTICLE VI

                                  MISCELLANEOUS

        Section 6.01 Survival of Representations and Warranties. All
representations and warranties made hereunder and in any document, certificate
or statement delivered pursuant hereto or in connection herewith shall survive
the execution and delivery of this Agreement.

        Section 6.02 Notices. All communications hereunder will be in writing
and effective only on receipt, and, if sent to CapitalSource, will be mailed,
delivered or telecopied and confirmed to it at 4445 Willard Avenue, 12th Floor,
Chevy Chase, Maryland 20815, Attention: Steven A. Museles, Fax: 301/841-2340,
with a copy to Lee E. Berner, Esq., Hogan & Hartston, L.L.P., 8300 Greensboro
Drive, Suite 1100, McLean, Virginia 22012, Facsimile: 703-610-6200; or, if sent
to CSFB, Repo Counterparty or Column will be mailed, delivered or telecopied and
confirmed to it at 11 Madison Avenue, New York, New York 10010, Attention:
Edmund Taylor, Facsimile: 212-325-8162, with a copy to Pamela McCormack,
Facsimile: 917-326-7805.

        Section 6.03 Binding Effect. This Agreement shall become effective when
it shall have been executed and delivered by or on behalf of each of the parties
hereto and thereafter shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns (and no other person
will have any right or obligation hereunder), except that no party shall have
the right to assign any of its rights, interests or obligations hereunder or

                                      -17-
<PAGE>

any right, interest or obligation herein without the prior written consent of
the other parties hereto. Any assignment in violation of this Section 6.03 shall
be void ab initio.

        Section 6.04 Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall for all purposes be deemed to be an
original and all of which shall together constitute but one and the same
instrument.

        Section 6.05 Amendments. Any provision of this Agreement may be amended
or waived if, but only if, such amendment or waiver is in writing and is signed
by the parties hereto.

        Section 6.06 No Waiver. No failure on the part of any
party to exercise, and no delay in exercising, any right hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right. Each waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

        Section 6.07 Severability. In case any one or more of the provisions
contained in this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby. The
parties shall endeavor in good faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of
which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

        Section 6.08 Jurisdiction; Consent to Service of Process. To the fullest
extent permitted by applicable law, each of the parties hereto (a) hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement (a "Related Proceeding"), or for recognition or enforcement of any
judgment and (b) agrees that a final judgment in any such Related Proceeding
shall be conclusive and may be enforced in any other jurisdiction by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that a party may otherwise have to bring any Related Proceeding
against any other party or its respective properties in the courts of any
jurisdiction.

        SECTION 6.09 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE SUBJECT MORTGAGE LOANS OR THE ACTIONS OF THE
PARTIES HERETO IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
HEREOF.

        SECTION 6.10 GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE

                                      -18-
<PAGE>

STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PROVISIONS THEREOF CONCERNING
CONFLICT OF LAWS.

                                      -19-
<PAGE>

                IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                       CAPITALSOURCE FINANCE LLC

                                       By: /s/
                                          --------------------------------------
                                          Name:
                                          Title:

                                       CREDIT SUISSE FIRST BOSTON LLC

                                       By: /s/
                                          --------------------------------------
                                          Name:
                                          Title:

                                       CREDIT SUISSE FIRST BOSTON
                                         MORTGAGE CAPITAL LLC

                                       By: /s/
                                          --------------------------------------
                                          Name:
                                          Title:

                                       COLUMN FINANCIAL, INC.

                                       By: /s/
                                          --------------------------------------
                                          Name:
                                          Title:

<PAGE>

                                                                      SCHEDULE I

                              ELIGIBILITY CRITERIA

In order to satisfy the Eligibility Criteria, a Loan must:

1.      be secured by a first lien on a skilled nursing facility;

2.      be evidenced by an original Mortgage Note;

3.      have been underwritten in accordance with Underwriting Guidelines and
        Section 2.02(d) of this Agreement;

4.      be eligible for inclusion in a REMIC and an SEC registered
        securitization;

5.      if such mortgage loan is a Portfolio Mortgage Loan, be approved as an
        Approved Loan simultaneously with the approval as Approved Loans of all
        of the mortgage loans which comprise the Portfolio of which such
        mortgage loan is a part;

6.      have an original principal balance of not greater than $30 million;
        provided, however, that a mortgage loan with an original principal
        balance of greater than $30 million may become an Approved Loan if such
        larger balance is pre-approved in writing by Reviewer prior to
        submission of such mortgage loan for approval pursuant to Section 2.02
        of this Agreement; provided, further, however, that if such mortgage
        loan is a Portfolio Mortgage Loan, the aggregate principal balance of
        all of the mortgage loans in the Portfolio of which such mortgage loan
        is a part does not exceed $50 million and no individual Mortgaged
        Property in such Portfolio shall have a principal balance allocable to
        it of greater than $30 million;

7.      unless otherwise agreed to by the parties hereto, bear a floating rate
        of interest (i) indexed to one-month LIBOR plus a spread of not less
        than 5.50% or (ii) indexed to the Prime Rate plus a spread of not less
        than 3%;

8.      have an original term to maturity of not more than five (5) years;

9.      be locked out from prepayment for no less than three (3) years from the
        date of origination;

10.     have an underwritten debt service coverage ratio of not less than 1.4
        based on an 11.83% constant;

11.     have a Loan-to-Value Ratio of not greater than 80% based on a 13.5% cap
        rate;

12.     not be delinquent or otherwise in default; and

13.     not require future advances.

                                    EXH. E-1exv10w1

 

GANNETT SUPPLEMENTAL RETIREMENT PLAN

Restatement dated February 1, 2003

(Reflecting all amendments through December 3, 2002)

ARTICLE ONE

Definitions

	1.1	 	“Plan” means this Gannett Supplemental Retirement Plan.
	 
	1.2	 	“Funded Plan” means the Gannett Retirement Plan as it may pertain to a
particular Employee.
	 
	1.3	 	“Company” means Gannett Co., Inc. or any successor to its business and/or
assets which assumes the Plan by operation of law or otherwise.
	 
	1.4	 	“Board” means the Board of Directors of the Company.
	 
	1.5	 	“Committee” means the Gannett Benefit Plans Committee.
	 
	1.6	 	“Effective Date” means January 1, 1978. The effective date of this
restatement is February 1, 2003.
	 
	1.7	 	“Employee” means any employee of the Company who (1) is paid through the
Company’s headquarters payroll system, operating as of the date of this
restatement in Arlington, Virginia (“Corporate Payroll”), (2) is within “a
select group of management or highly compensated employees” as this term
is used in Title I of ERISA and (3) is designated by the Company’s Benefit
Plans Committee as being an eligible participant in the Plan and listed on
Appendix A, B or C.
	 
	1.8	 	“Monthly Benefit” means:

	 	•	 	for an Employee who began participating in the
Plan on or before January 1, 1998 and who is listed in
Appendix A, the Employee’s monthly benefit, expressed as a
single life annuity payable for the Employee’s life,
calculated using the formula set forth in Article VI of the
Funded Plan but ignoring the benefit limitations in the Funded
Plan required by Code Section 415 or the limitations on an
Employee’s compensation under Code Section 401(a)(17) and
taking into account all amounts deferred under the Gannett
Co., Inc. Deferred Compensation Plan.
	 
	 	•	 	for an Employee who began participating in the
Plan after January 1, 1998 and who is listed in Appendix A,
the Employee’s monthly benefit, expressed as a

 

 

	 	 	 	single life annuity payable for the Employee’s life, calculated
using the formula under Article VI or Article VIA, whichever is
used to calculate the Employee’s benefit under the Funded Plan,
but ignoring the benefit limitations in the Funded Plan required
by Code Section 415 or the limitations on an Employee’s
compensation under Code Section 401(a)(17) and taking into
account all amounts deferred under the Gannett Co., Inc.
Deferred Compensation Plan.
	 
	 	•	 	for an Employee who began participating in the
Plan after January 1, 1998 and who is listed in Appendix B,
the Employee’s monthly benefit, expressed as a single life
annuity payable for the Employee’s life, calculated using the
formula set forth in Article VI of the Funded Plan but
ignoring the benefit limitations in the Funded Plan required
by Code Section 415 or the limitations on an Employee’s
compensation under Code Section 401(a)(17) and taking into
account all amounts deferred under the Gannett Co., Inc.
Deferred Compensation Plan.
	 
	 	•	 	for an Employee who formerly participated in the
Central Newspapers, Inc. Retirement Plan (the “CNI Plan”) and
who is listed in Appendix C, the Employee’s monthly benefit,
expressed as a single life annuity payable for the Employee’s
life, calculated using the pension equity formula applicable
to such Employee under the Funded Plan, but ignoring the
benefit limitations in the Funded Plan required by Code
Section 415 or the limitations on an Employee’s compensation
under Code Section 401(a)(17) and taking into account salary
and bonuses deferred under the Gannett Co., Inc. Deferred
Compensation Plan. Notwithstanding the foregoing, if the
Employee’s benefit under the Funded Plan is calculated using a
grandfathered CNI Plan pension formula set forth in the
Appendix to the Funded Plan, the Employee’s “Monthly Benefit”
under this Plan will be calculated in accordance with Exhibit
A.

	 	 	Notwithstanding the foregoing, prior to a Change in Control, for
purposes of calculating a particular Employee’s Monthly Benefit,
the Board, or a committee of the Board acting on its behalf, may
adjust an Employee’s earnings, years of service or other factor
used in calculating the Employee’s Monthly Benefit in any manner
the Board or such committee deems appropriate, provided such
adjustment is memorialized in writing and provided that in no event
will any such adjustment result in a reduction of the benefit
accrued by the Employee as of the date the adjustment is made. The
Board, or a committee of the Board acting on its behalf, may make
such adjustment solely for a specified Employee or group of
Employees and without regard to how other Employees are treated.
No adjustments may be made pursuant to this provision following a
Change in Control.
	 
	1.9	 	“Normal Retirement Date” and “Early Retirement Date” mean the relevant
dates in the Funded Plan as they apply to a particular Employee.

2

 

	1.10	 	“Code” means the Internal Revenue Code of 1986, as amended, and
regulations thereunder.
	 
	1.11	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as
amended, and regulations thereunder.
	 
	1.12	 	A “Change in Control” means the first to occur of the following:

	 	(i)	 	the acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934 (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of
either (x) the then-outstanding shares of common stock of the
Company (the “Outstanding Company Common Stock”) or (y) the
combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this
Section, the following acquisitions shall not constitute a
Change in Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any
acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or one of its
affiliates or (D) any acquisition pursuant to a transaction
that complies with clauses (x), (y) and (z) of subparagraph
(iii) below;
	 
	 	(ii)	 	individuals who, as of January 1, 2003,
constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director
subsequent to such date whose election or nomination for
election by the Company’s stockholders was approved by a vote
of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board;
	 
	 	(iii)	 	consummation of a reorganization, merger,
statutory share exchange or consolidation or similar corporate
transaction involving the Company or any of its subsidiaries,
a sale or other disposition of all or substantially all of the
assets of the Company, or the acquisition of assets or stock
of another entity by the Company or any of its subsidiaries
(each, a “Business Combination”), in each case, unless,
following such Business Combination, (x) all or substantially
all of the individuals and entities that were the beneficial
owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or
indirectly, more than

3

 

	 	 	 	50% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting
securities entitled to vote generally in the election of
directors, as the case may be, of the corporation or entity
resulting from such Business Combination (including, without
limitation, a corporation or entity that, as a result of such
transaction, owns the Company or all or substantially all of
the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their
ownership immediately prior to such Business Combination of
the Outstanding Company Common Stock and the Outstanding
Company Voting Securities, as the case may be, (y) no Person
(excluding any employee benefit plan (or related trust) of
the Company or any corporation or entity resulting from such
Business Combination) beneficially owns, directly or
indirectly, 20% or more of, respectively, the
then-outstanding shares of common stock of the corporation or
entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting
securities of such corporation or entity, except to the
extent that such ownership existed prior to the Business
Combination, and (z) at least a majority of the members of
the board of directors of the corporation or entity resulting
from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement
or of the action of the Board providing for such Business
Combination; or
	 
	 	(iv)	 	approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company.

	 	 	No Employee who participates in any group conducting a management
buyout of the Company under the terms of which the Company ceases
to be a public company may claim that such buyout is a Change in
Control under this Plan for purposes of accelerating such
Employee’s vesting under this Plan.
	 
	1.13	 	“Cause” means:

	 	(i)	 	any material misappropriation of funds or
property of the Company or its affiliate by the Employee;

	 	(ii)	 	unreasonable and persistent neglect or refusal by
the Employee to perform his or her duties which is
demonstrably willful and deliberate on the Employee’s part,
which is committed in bad faith or without reasonable belief
that such breach is in the best interests of the Company and
which is not remedied in a reasonable period of time after
receipt of written notice from the Company specifying such
breach; or

	 	(iii)	 	conviction of the Employee of a felony involving
moral turpitude.

4

 

		
	 	Notwithstanding the foregoing, an Employee shall not be deemed to
have been terminated for Cause after a Change in Control unless and
until there shall have been delivered to the Employee a copy of a
resolution duly adopted by the affirmative vote of not less than
three quarters of the entire membership of the Board at a meeting
of the Board (after reasonable notice to the Employee and an
opportunity for the Employee, together with his or her counsel, to
be heard before the Board), finding that, in the good faith opinion
of the Board, the Employee was guilty of conduct set forth above in
this definition and specifying the particulars thereof in detail.

	1.14	 	“Good Reason” means the occurrence after a Change in Control of any of
the following circumstances without the Employee’s express written
consent, unless such circumstances are fully corrected prior to the date
of termination specified in the Notice of Termination given in respect
thereof:

	 	(i)	 	the assignment to the Employee of any duties
inconsistent in any respect with his or her position
(including status, offices, titles and reporting
requirements), authority or responsibilities immediately prior
to the Change in Control, or any other diminution in such
position, authority or responsibilities, (whether or not
occurring solely as a result of the Company becoming a
subsidiary or a division of another entity or ceasing to be a
publicly traded entity), excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in
bad faith and that is remedied by the Company or its affiliate
promptly after receipt of notice thereof given by the
Employee;
	 
	 	(ii)	 	a reduction by the Company or its affiliate in
the Employee’s compensation and/or other benefits or
perquisites as in effect on the date immediately prior to the
Change in Control;
	 
	 	(iii)	 	the relocation of the Employee’s office from the
location at which the Employee is principally employed
immediately prior to the date of the Change in Control to a
location 20 or more miles farther from the Employee’s
residence immediately prior to the Change in Control, or the
Company’s requiring the Employee to be based anywhere other
than the Company’s offices at such location, except for
required travel on the Company’s business to an extent
substantially consistent with the Employee’s business travel
obligations prior to the Change in Control;
	 
	 	(iv)	 	the failure by the Company or its affiliate to
pay to the Employee any portion of the Employee’s compensation
or to pay to the Employee any deferred compensation due under
any deferred compensation or similar program of the Company or
its affiliate within seven days of the date such payment is
due;
	 
	 	(v)	 	the failure by the Company or its affiliate to
continue in effect this Plan or any other compensation,
benefit or perquisite plan or policy in which the

5

 

	 	 	 	Employee participated immediately prior to the Change in
Control, unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan or policy) has been
made with respect to such plan or policy, or the failure by
the Company or its affiliate to continue the Employee’s
participation therein (or in such substitute or alternative
plan or policy), in each case, on a basis not materially less
favorable, both in terms of the amount of benefits provided
and the level of the Employee’s participation relative to
other participants, as existed at the time of the Change in
Control;
	 
	 	(vi)	 	(A) the failure of the Company to obtain a
satisfactory agreement from any successor to assume and agree
to perform the Plan, as required by Section 8.3, or (B) if the
business of the Company for which the Employee’s services are
principally performed is sold at any time within 24 months
after a Change in Control, the purchaser shall fail to provide
the Employee with the same or a comparable position, duties,
salary, bonus, benefits and perquisites as provided to the
Employee by the Company immediately prior to the Change in
Control;
	 
	 	(vii)	 	any refusal by the Company (or its affiliate) to
continue to allow the Employee to attend to matters or engage
in activities not directly related to the business of the
Company that, prior to the Change in Control, the Employee was
permitted to attend to or engage in; or
	 
	 	(viii)	 	any purported termination of the Employee’s employment by
the Company that is not effected pursuant to a Notice of
Termination satisfying the requirements of the Plan.

	 	 	For purposes of this definition, and notwithstanding any provision
of the Plan to the contrary, any good faith determination of “Good
Reason” made by the Employee shall be conclusive.
	 
	 	 	An Employee’s continued employment shall not constitute consent to,
or a waiver of rights with respect to, any circumstance
constituting Good Reason hereunder.
	 
	1.15	 	“Notice of Termination” means a written notice that (i) indicates the
specific termination provision in the Plan relied upon, and (ii) to the
extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee’s
employment under the provision so indicated. The failure by the Employee
or the Company to set forth in the Notice of Termination any fact or
circumstance that contributes to a showing of Good Reason or Cause shall
not waive any right of the Employee or the Company hereunder or preclude
the Employee or the Company from asserting such fact or circumstance in
enforcing the Employee’s or the Company’s rights hereunder.
	 
	1.16	 	“Independent Fiduciary” means the person or persons designated as such in
Section 6.8 of the Plan.

6

 

	1.17	 	“Rabbi Trust” means a trust or sub-trust established pursuant to Section
4.4 of the Plan.

ARTICLE TWO

Purpose of Plan

	2.1	 	The purpose of this Plan is to provide supplemental retirement benefits
on an unfunded basis to certain highly compensated employees.

ARTICLE THREE

Eligibility and Vesting

	3.1	 	All Employees shall be eligible to participate in this Plan. The Benefit
Plans Committee has full discretionary authority to add or delete
individuals from participation in this Plan by amending Appendix A, B or
C. If an individual’s name is removed from Appendix A, B or C, such
individual shall have no rights to benefits under this Plan except for
those benefits that have vested as of the date of removal or that will
vest in the future, including benefits that will vest pursuant to the last
paragraph of Section 4.2.

	 	(a)	 	Plan benefits that a participant has accrued
through December 31, 2002 shall vest pursuant to the same
vesting schedule and vesting terms and conditions as are in
effect from time to time under the Funded Plan.
	 
	 	(b)	 	An individual who is a Plan participant as of
December 31, 2002 shall not vest in any Plan benefit that is
earned after December 31, 2002 until the earliest of the
following dates: (i) the date that the participant attains age
55, assuming continued employment by Gannett to such age, and
is fully vested under the Funded Plan (i.e., the participant
completes 5 years of service under the Funded Plan); or (ii)
the date that the participant has completed 25 years of
service with Gannett (such service to be calculated pursuant
to the terms of the Funded Plan). At the time of such
vesting, all benefits that have accrued after December 31,
2002 shall be deemed vested.
	 
	 	(c)	 	Additionally, any individual who becomes a Plan
participant on or after January 1, 2003 shall not vest in any
Plan benefit until the earliest of the following dates: (i)
the date that the participant attains age 55, assuming
continued employment by Gannett to such age, and is fully
vested under the Funded Plan; or (ii) the date that the
participant has completed 25 years of service with Gannett
(such service to be calculated pursuant to the

7

 

	 	 	 	terms of the Funded Plan). At the time of such vesting, all
benefits that have accrued to the participant shall be deemed
vested.
	 
	 	(d)	 	In applying these rules and for purposes of
calculating the Plan benefit that a participant has accrued
through December 31, 2002, in the event that a participant
vests in the benefit he has accrued as of December 31, 2002
but does not vest in any further Plan benefit, the maximum
Plan benefit payable to the participant shall not exceed his
benefit calculated under Article Four as of December 31, 2002,
taking into account service and compensation through that date
and not thereafter.

ARTICLE FOUR

Benefits

	4.1	 	The Company shall pay the benefits due under this Plan commencing within
30 days of retirement, disability, death or any other event that entitles
an Employee or the Employee’s beneficiary to receive benefits under the
Funded Plan. Notwithstanding the foregoing, no benefits shall commence
prior to the date an Employee attains or would have attained Early
Retirement Age under the Funded Plan.
	 
	4.2	 	The benefit payable under this Plan is determined by (i) calculating the
Employee’s Monthly Benefit and (ii) subtracting from such monthly amount
the actual benefit to which the Employee is entitled under the Funded
Plan. For purposes of calculating the offset under subsection (ii), if the
Employee’s benefit is determined under Article VIA of the Funded Plan, it
shall be converted to an actuarially equivalent single life annuity,
determined as follows:

	 	•	 	For those Employees who retire directly from
active employment on or after their earliest Early Retirement
Date, the Employee’s benefit under the Funded Plan shall be
converted to a single life annuity payable immediately at the
Employee’s retirement date.
	 
	 	•	 	For deferred vested Employees, the Employee’s
benefit under the Funded Plan shall be converted to a single
life annuity payable at age 65.

	 	 	To the extent that the amount of an Employee’s monthly benefit
under the Funded Plan is increased or decreased (due, e.g., to a
change in the Code Section 401(a)(17) or 415 limits or otherwise),
the amount payable from this Plan shall increase or decrease
accordingly.
	 
	 	 	Notwithstanding the foregoing, an Employee’s monthly benefit
calculations under subsections (i) and (ii) above shall not take
into account any of his or her service with Army Times, Asbury
Park, Multimedia or their related businesses prior to the date that
the Employee transfers to the Company’s Corporate Payroll.

8

 

	 	 	Except for those Employees who participated in the Central
Newspapers, Inc. Unfunded Supplemental Retirement Plan (the “CNI
SERP”), an Employee’s monthly benefit calculations under
subsections (i) and (ii) above shall not take into account any of
the Employee’s service or compensation earned before August 1, 2000
with Central Newspapers, Inc., or any entity that was a member of
such company’s controlled group before such date. For those
Employees who participated in the CNI SERP, the monthly benefit
calculations under subsections (i) or (ii) above shall not take
into account any of the Employee’s service or compensation prior to
January 1, 1994.
	 
	 	 	If an Employee leaves the Company’s Corporate Payroll, no further
benefits shall accrue under this Plan, provided that service within
the Company’s controlled group will count for purposes of
determining the vested portion of the benefit accrued to the date
an Employee leaves the Company’s Corporate Payroll.
	 
	4.3	 	The benefit payable under this Plan shall be payable in the same form as
the form in which benefits are payable to the Employee under the Funded
Plan, except that benefits under this Plan shall not be payable in the
form of a “lump sum” distribution. If no timely election is made, or a
timely election is not possible at the time benefits become payable (e.g.,
due to the death of a contingent annuitant or a change in marital status),
the benefit payable to a single Employee will be paid in the form of a
single life annuity and the benefit payable to a married Employee will be
paid in the form of a joint and 100 percent spousal survivor annuity. In
the case of a contingent annuitant annuity or any option other than a
life-only annuity, the amount of the benefit shall be actuarially reduced
to reflect that form of payment.
	 
	 	 	If an Employee’s benefit commences prior to his or her Normal
Retirement Date, the benefit from this Plan shall be reduced in the
same manner as provided for in the Funded Plan. If an Employee
dies after becoming vested but before the Employee’s benefit
commences, a spouse, if surviving, shall be entitled to receive a
monthly lifetime benefit equal to the benefit that would have been
received had the Employee terminated employment on his or her date
of death and retired on the first day of the month on or following
the later of the Employee’s date of death or the date that would
have been the Employee’s earliest Early Retirement Date, and
elected a 100 percent spousal survivor annuity, and then died.
	 
	 	 	Any actuarial adjustments required with respect to benefits payable
under this Plan shall be accomplished by reference to the actuarial
assumptions used in the Funded Plan.

Effective as of January 1, 2002, the CNI SERP shall be merged into this
Plan and the CNI SERP shall have no independent existence apart from this
Plan. Any benefit paid under this Plan to an Employee who accrued a
benefit under the CNI SERP shall be in lieu of and in complete
satisfaction of any benefit under the CNI SERP. Notwithstanding any
provision in this Plan to the contrary, the following provisions apply to
an Employee who had accrued a benefit under the CNI SERP, but only with
respect to such benefit the

9

 

	 	 	Participant had accrued as of January 1, 2002 and disregarding all
service and compensation earned after that date:

	 	•	 	The benefit that the Employee had accrued under the CNI SERP
as of January 1, 2002 shall be paid in the form of a lump sum
distribution or such other form that the Employee had elected under
the CNI SERP within the first 30 days of becoming eligible to
participate in such plan. Such distribution shall commence at the
time specified under the terms of the CNI SERP, provided that it
shall not commence before the Employee attains Early Retirement Age
under the Funded Plan. Such benefit shall offset any benefit
payable under this Plan.
	 
	 	•	 	In lieu of the death benefit described in Section 4.3 of this
Plan, an Employee shall be entitled to the death benefit provided in
Section 3.01 of the CNI SERP with respect to the benefit that the
Employee had accrued under the CNI SERP as of January 1, 2002. Such
benefit shall be calculated and paid consistent with the terms set
forth in the CNI SERP and the grandfathered CNI Plan provisions set
forth in the Funded Plan’s Appendix. Such benefit shall offset any
benefit payable under this Plan.

	4.4	 	The benefits payable under this Plan shall be paid by the Company each
year out of assets which at all times shall be subject to the claims of
the Company’s creditors. The Company may in its discretion establish a
Rabbi Trust in which to place assets from which such benefits are to be
paid on behalf of all or some Employees, as determined by the Committee in
its sole discretion, but neither the creation of such trust nor the
transfer of funds to such trust shall render such assets unavailable to
settle the claims of the Company’s creditors. Such Rabbi Trust may be a
sub-trust maintained as a separate account within a larger trust meeting
the requirements of this provision that is also used to pay benefits under
other Company-sponsored unfunded nonqualified plans.
	 
	 	 	Notwithstanding the establishment of a Rabbi Trust, the Company
intends this Plan to be unfunded for tax purposes and for purposes
of Title I of ERISA. In addition, despite the existence of this
Plan or an associated Rabbi Trust to pay promised benefits,
Employees have the status of general unsecured creditors of the
Company and the Plan constitutes a mere promise to make benefit
payments in the future.

ARTICLE FIVE

Change in Control Benefits

	5.1	 	If a Change in Control occurs, each Employee who is participating in the
Plan on the date of the Change in Control shall be entitled to continue
participating in the Plan following the Change in Control until he or she
ceases to be an Employee (without regard to the requirement in clause (3)
of Section 1.7 that an Employee be designated by the Committee) or the
Plan is terminated pursuant to Article

10

 

	 	 	Seven. Such an Employee may not be deleted from participation in
the Plan pursuant to Section 3.1 or any other provision of the
Plan. No new persons may be designated as eligible to participate
in the Plan on or after a Change in Control.
	 
	5.2	 	If a Change in Control occurs, each Employee who is participating in the
Plan on the date of the Change in Control shall vest in full in his or her
accrued benefit under the Plan, to the extent not already vested,
immediately upon the subsequent termination of the Employee’s employment
prior to the second anniversary of the Change in Control, unless such
termination is (i) because of the Employee’s death or disability (as
determined under the Company’s Long Term Disability Plan as in effect
immediately prior to the Change in Control), (ii) by the Company or its
affiliate for Cause, or (iii) by the Employee other than for Good Reason.
Benefits that vest on an accelerated basis under this provision shall be
paid at the time and in the form provided under Sections 4.1 and 4.3
(subject to the provisions of the Company’s Transitional Compensation
Plan, to the extent applicable).
	 
	5.3	 	Anything in the Plan to the contrary notwithstanding, if a Change in
Control occurs and if the Employee’s employment with the Company
terminated prior to the date on which the Change in Control occurs, and if
it is reasonably demonstrated by the Employee that such termination of
employment (i) was at the request of any third party participating in or
causing the Change in Control or (ii) otherwise arose in connection with,
in relation to, or in anticipation of a Change in Control, then the
Employee shall be entitled to such benefits under the Plan as though the
Employee had terminated his or her employment for Good Reason on the day
after the Change in Control.
	 
	5.4	 	Any termination by the Company, or by the Employee for Good Reason, shall
be communicated by Notice of Termination that meets the requirements of
Section 1.15.
	 
	5.5	 	If there is any dispute between the Company and an Employee (i) in the
event of any termination of the Employee’s employment by the Company, as
to whether such termination was for Cause, or (b) in the event of any
termination of employment by the Employee, as to whether Good Reason
existed, then, unless and until there is a final, nonappealable judgment
by a court of competent jurisdiction declaring that such termination by
the Company was for Cause or that the determination by the Employee of the
existence of Good Reason was not made in good faith, the Company shall
provide all benefits to the Employee that the Company would be required to
provide pursuant to the Plan as though such termination were by the
Company without Cause or by the Employee with Good Reason; provided,
however, that the Company shall not be required to pay to an Employee or
beneficiary any disputed amount except upon receipt of a written
undertaking by or on behalf of the Employee or beneficiary to repay all
such amounts to which the Employee or beneficiary is ultimately adjudged
by such court not to be entitled.

11

 

	5.6	 	If, with respect to any alleged failure by the Company to comply with any
of the terms of this Plan following a Change in Control, other than any
alleged failure relating to a matter within the control of the Independent
Fiduciary and with respect to which the Company is acting pursuant to a
determination or direction of the Independent Fiduciary, an Employee or
beneficiary in good faith hires legal counsel or institutes any
negotiations or institutes or responds to legal action to assert or defend
the validity of, enforce his or her rights under, obtain benefits promised
under or recover damages for breach of the terms of this Plan, then,
regardless of the outcome, the Company shall pay, as they are incurred,
the Employee’s or beneficiary’s actual expenses for attorneys’ fees and
disbursements, together with such additional payments, if any, as may be
necessary so that the net after-tax payments to the Employee or
beneficiary equal such fees and disbursements.
	 
	5.7	 	If a Change in Control occurs, the Company shall make mandatory
contributions to a Rabbi Trust established pursuant to Section 4.4, to the
extent required by the provisions of such Rabbi Trust.

ARTICLE SIX

Administration

	6.1	 	This Plan shall be administered by the Committee which shall possess all
powers necessary to administer the Plan, including but not limited to the
sole discretion to interpret the Plan and to determine eligibility for
benefits, and the power to delegate its authority to one or more persons.
	 
	6.2	 	The Committee shall cause the benefits due each Employee from this Plan
to be paid by the Company and/or trustee accordingly.
	 
	6.3	 	The Committee shall inform each Employee of any elections which the
Employee may possess and shall record such choices along with such other
information as may be necessary to administer the Plan.
	 
	6.4	 	The decisions made by, and the actions taken by, the Committee in the
administration of this Plan shall be final and conclusive on all persons.
	 
	6.5	 	Notwithstanding the foregoing, following a Change in Control, the Plan
shall be administered by the Independent Fiduciary. The Independent
Fiduciary shall assume the following powers and responsibilities from the
Committee, the Board and the Company:

	 	(i)	 	The Independent Fiduciary shall assume all powers
and responsibilities assigned to the Committee in the
foregoing provisions of this Article Six and any other
provisions of the Plan, including, without limitation, the
sole power and discretion to:

12

 

	 	(A)	 	determine all questions arising in
the administration and interpretation of the Plan,
including factual questions and questions of eligibility
to participate and eligibility for benefits;
	 
	 	(B)	 	adjudicate disputes and claims for
benefits;
	 
	 	(C)	 	adopt rules relating to the
administration of the Plan;
	 
	 	(D)	 	determine the amount, timing and form
of benefit payments;
	 
	 	(E)	 	direct the Company and the trustee of
the Rabbi Trust on matters relating to benefit payments;
	 
	 	(F)	 	engage actuaries, attorneys,
accountants and other professional advisors (whose fees
shall be paid by the Company), to assist it in
performing its responsibilities under the Plan; and
	 
	 	(G)	 	delegate to one or more persons
selected by it, including outside vendors,
responsibility for fulfilling some or all of its
responsibilities under the Plan.
	 

	 	(ii)	 	The Independent Fiduciary shall have the sole
power and discretion to (A) direct the investment of assets
held in the Rabbi Trust, including the authority to appoint
one or more investment managers to manage any such assets, and
(B) remove the trustee of the Rabbi Trust and appoint a
successor trustee in accordance with the terms of the trust
agreement.

	6.6	 	Notwithstanding any provision of the Plan to the contrary, following a
Change of Control:

	 	(i)	 	Any act, determination or decision of the Company
(including its Board or any committee of its Board) with
regard to the administration, interpretation and application
of the Plan must be reasonable, as viewed from the perspective
of an unrelated party and with no deference paid to the actual
act, determination or decision of the Company. Furthermore,
following a Change in Control, any decision by the Company
shall not be final and binding on an Employee. Instead,
following a Change in Control, if an Employee disputes a
decision of the Company relating to the Plan and pursues legal
action, the court shall review the decision under a “de novo”
standard of review.
	 
	 	(ii)	 	Any act, determination or decision of the
Independent Fiduciary with regard to the administration,
interpretation and application of the Plan shall be final,
binding, and conclusive on all parties.

	6.7	 	Following a Change in Control, the Company shall cooperate with the
Independent Fiduciary as may be necessary to enable the Independent
Fiduciary to carry out its powers and responsibilities under the Plan and
Rabbi Trust,

13

 

	 	 	including, without limitation, by promptly furnishing all
information relating to Employees’ benefits as the Independent
Fiduciary may reasonably request.
	 
	6.8	 	The Independent Fiduciary responsible for the administration of the Plan
following a Change in Control shall be a committee composed of the
individuals who constituted the Company’s Benefit Plans Committee
immediately prior to the Change in Control and the Company’s chief
executive officer immediately prior to the Change in Control.
	 
	 	 	If, following a Change in Control, any individual serving on such
committee resigns, dies or becomes disabled, the remaining members
of the committee shall continue to serve as the committee without
interruption. A successor member shall be required only if there
are less than three remaining members on the committee. If a
successor member is required, the successor shall be an individual
appointed by the remaining member or members of the committee who
(i) is eligible to be paid benefits from the assets of the Rabbi
Trust or the larger trust of which it is a part and (ii) agrees to
serve on such committee.
	 
	 	 	If at any time there are no remaining members on the committee
(including any successor members appointed to the committee
following the Change in Control), the Trustee shall promptly submit
the appointment of the successor member or members to an arbiter,
the costs of which shall be borne fully by the Company, to be
decided in accordance with the American Arbitration Association
Commercial Arbitration Rules then in effect. The arbiter shall
appoint three successor members to the committee who each meet the
criteria for membership set forth above. Following such
appointments by the arbiter, such successor members shall appoint
any future successor members to the committee to the extent
required above (i.e., if, at any time, there are less than three
remaining members on the committee) and subject to the criteria set
forth above.
	 
	 	 	If one or more successor members are required and there are no
individuals remaining who satisfy the criteria for membership on
the committee, the remaining committee members or, if none, the
Trustee, shall promptly submit the appointment of the successor
member or members to an arbiter, and the Company shall bear the
costs of arbitration, as provided for in the preceding paragraph.
	 
	6.9	 	Except in the case of willful misconduct, no member of the Committee,
person acting as the Independent Fiduciary, or employee or director of the
Company shall be personally liable for any act done or omitted to be done
by such person in connection with the operation and administration of this
Plan. The Company shall indemnify, to the fullest extent permitted by
law, each member of the Committee, each person acting as the Independent
Fiduciary, and each employee and director of the Company, both past and
present, to whom are or were delegated duties, responsibilities and
authority with respect to the Plan, against any and all claims, losses,
liabilities, fines, penalties and expenses (including, but not limited to,
all legal fees relating thereto), reasonably incurred by or imposed

14

 

	 	 	upon such persons, arising out of any act or omission in connection
with the operation and administration of the Plan, other than
willful misconduct.
	 
	6.10	 	The Committee shall maintain procedures with respect to the filing of
claims for benefits under the Plan, which shall provide for the following:

	 	(i)	 	Any Employee or beneficiary (hereinafter called
“claimant”) whose claim for benefits under the Plan is denied
shall receive written notice of such denial. The notice shall
set forth:

	 	(A)	 	the specific reasons for the denial of the claim;
	 
	 	(B)	 	a reference to the specific
provisions of the Plan on which the denial is based;
	 
	 	(C)	 	any additional material or
information necessary to perfect the claim and an
explanation why such material or information is
necessary; and
	 
	 	(D)	 	a description of the procedures for
review of the denial of the claim and the time limits
applicable to such procedures, including a statement of
the claimant’s right to bring a civil action under ERISA
following a denial on review.

	 	 	Such notice shall be furnished to the claimant within a reasonable
period of time, but no later than 90 days after receipt of the
claim by the Plan, unless the Committee determines that special
circumstances require an extension of time for processing the
claim. In no event shall such an extension exceed a period of 90
days from the end of the initial 90-day period. If such an
extension is required, written notice thereof shall be furnished to
the claimant before the end of the initial 90-day period, which
shall indicate the special circumstances requiring an extension of
time and the date by which the Committee expects to render a
decision.

	 	(ii)	 	Every claimant whose claim for benefits under the
Plan is denied in whole or in part by the Committee shall have
the right to request a review of the denial. Review shall be
granted if it is requested in writing by the claimant no later
than 60 days after the claimant receives written notice of the
denial. The review shall be conducted by the Committee.
	 
	 	(iii)	 	At any hearing of the Committee to review the
denial of a claim, the claimant, in person or by duly
authorized representative, shall have reasonable notice, shall
have an opportunity to be present and be heard, may submit
written comments, documents, records and other information
relating to the claim, and may review documents, records and
other information relevant to the claim under the applicable
standards under

15

 

	 	 	 	ERISA. The Committee shall render its decision as soon as
practicable. Ordinarily decisions shall be rendered within
60 days following receipt of the request for review. If the
need to hold a hearing or other special circumstances require
additional processing time, the decision shall be rendered as
soon as possible, but not later than 120 days following
receipt of the request for review. If additional processing
time is required, the Committee shall provide the claimant
with written notice thereof, which shall indicate the special
circumstances requiring the additional time and the date by
which the Committee expects to render a decision. If the
Committee denies the claim on review, it shall provide the
claimant with written notice of its decision, which shall set
forth (i) the specific reasons for the decision, (ii)
reference to the specific provisions of the Plan on which the
decision is based, (iii) a statement of the claimant’s right
to reasonable access to, and copies of, all documents,
records and other information relevant to the claim under the
applicable standards under ERISA, and (iv) and a statement of
the claimant’s right to bring a civil action under ERISA.
The Committee’s decision shall be final and binding on the
claimant, and the claimant’s heirs, assigns, administrator,
executor, and any other person claiming through the claimant.

Notwithstanding the foregoing, following a Change in Control, the
Independent Fiduciary shall be responsible for deciding claims and
appeals pursuant to the procedures described above. Any decision
on a claim by the Independent Fiduciary shall be final and binding
on the claimant, and the claimant’s heirs, assigns, administrator,
executor, and any other person claiming through the claimant.

ARTICLE SEVEN

Amendment and Termination

	7.1	 	While the Company intends to maintain this Plan for as long as necessary,
the Board, or a committee of the Board acting on its behalf, reserves the
right to amend and/or terminate it at any time for whatever reasons it may
deem appropriate.
	 
	7.2	 	Notwithstanding the preceding Section, however, the Company hereby makes
a contractual commitment to pay the benefits accrued under this Plan.

ARTICLE EIGHT

Miscellaneous

	8.1	 	Nothing contained in this Plan shall be construed as a contract of
employment between the Company and an Employee, or as a right of any
Employee to be

16

 

	 	 	continued in the employment of the Company, or as a limitation of
the right of the Company to discharge any of its Employees, with or
without cause.
	 
	8.2	 	An Employee’s rights to benefit payments under the Plan are not subject
in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors of the
Employee or the Employee’s beneficiary or contingent annuitant.
	 
	8.3	 	The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Company to expressly assume and agree
to perform the Plan in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.
	 
	8.4	 	To the extent not preempted by federal law, all questions pertaining to
the construction, regulation, validity and effect of the provisions of the
Plan shall be determined in accordance with the laws of the State of
Illinois without regard to the conflict of laws principles thereof.

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APPENDIX A

List of Participants

	 
	 	 	Date Participant Commenced
	Name	 	Participating in the Plan
	
	 	

APPENDIX B

List of Participants

	 
	 	 	Date Participant Commenced
	Name	 	Participating in the Plan
	
	 	

18

 

APPENDIX C

List of Participants

	 
	 	 	Date Participant Commenced
	Name	 	Participating in the Plan
	
	 	

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Exhibit A

Benefit Formula for Certain CNI Employees

     For an Employee who formerly participated in the CNI Plan and whose
benefit under the Funded Plan is calculated using a grandfathered CNI Plan
pension formula set forth in the Appendix to the Funded Plan, “Monthly Benefit”
shall equal:

	 	 	the Company-provided monthly benefit that such Participant is entitled to
receive under the provisions of the Funded Plan in effect with respect to
that Participant on the date of his termination of employment (assuming
his benefit payments under the Funded Plan are determined without regard
to the limitations contained in Section 401(a)(17) and Section 415 of the
Code and, after January 1, 2002, taking into account salary and bonuses
the Employee defers under the Gannett Co., Inc. Deferred Compensation
Plan) and based solely on his creditable service on and after the January
1, 1994.

     When calculating the Funded Plan offset to the Employee’s Monthly Benefit
as set forth in subsection (ii) of Section 4.2, such offset shall equal:

	 	 	the Company-provided monthly benefit that such Participant is entitled to
receive under the provisions of the Funded Plan in effect with respect to
that Participant on the date of his termination of employment (assuming
his benefit payments under the Funded Plan commence on the date benefits
commence hereunder) and based solely on his creditable service on and
after the January 1, 1994.

     To the extent applicable, for purposes of calculating an Employee’s
Company-provided Monthly Benefit and the offset set forth above, the Employee
shall be deemed to have made the maximum voluntary non-deductible contributions
for periods after January 1, 1994 under the Funded Plan (determined without
regard to the limitations contained in Section 401(a)(17) and Section 415 of
the Code) for purposes of calculating the Employee’s Monthly Benefit) and to
have elected to receive as of the date his benefit payments commence a refund
of his deemed and actual voluntary non-deductible contributions for periods
after January 1, 1994 plus interest, thereby resulting in the cancellation of
his deemed and actual supplemental credits earned under the Funded Plan for
periods after January 1, 1994.

20

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