Document:

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Exhibit 10.1

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of August 19, 2005 among Emmis
Television Broadcasting, L.P., an Indiana limited partnership (“Emmis Broadcasting”) and Emmis
Television License, LLC, an Indiana limited liability company (“Emmis License,” and, together with
Emmis Broadcasting, “Seller”) and Gray Television Group, Inc., a Delaware corporation (“Buyer”).

Recitals

     A. Seller owns and operates the following television broadcast station (the “Station”)
pursuant to certain authorizations issued by the Federal Communications Commission (the “FCC”):

WSAZ-TV, Huntington, West Virginia

     B. Pursuant to the terms and subject to the conditions set forth in this Agreement, Seller
desires to sell to Buyer, and Buyer desires to purchase from Seller, the Station Assets (defined
below).

Agreement

     NOW, THEREFORE, taking the foregoing into account, and in consideration of the mutual
covenants and agreements set forth herein, the parties, intending to be legally bound, hereby agree
as follows:

ARTICLE 1: PURCHASE OF ASSETS

     1.1. Station Assets. On the terms and subject to the conditions hereof, at Closing
(defined below), except as set forth in Sections 1.2 and 1.3, Seller shall sell, assign, transfer,
convey and deliver to Buyer, and Buyer shall purchase and acquire from Seller, all right, title and
interest of Seller in and to all assets and properties of Seller, real and personal, tangible and
intangible, that are used or held for use in the operation of the Station (the “Station Assets”),
including without limitation the following:

          (a) all licenses, permits and other authorizations issued to Seller by the FCC with respect to
the Station (the “FCC Licenses”), including those described on Schedule 1.1(a), including any
renewals or modifications thereof between the date hereof and Closing;

          (b) all of Seller’s equipment, transmitters, antennas, cables, towers, vehicles, furniture,
fixtures, spare parts and other tangible personal property of every kind and description that are
used or held for use in the operation of the Station, including without limitation those listed on
Schedule 1.1(b), except for any retirements or dispositions thereof made between the date hereof
and Closing in the ordinary course of business (the “Tangible Personal Property”);

 

 

          (c) all of Seller’s real property used or held for use in the operation of the Station
(including any appurtenant easements and improvements located thereon), including without
limitation those listed on Schedule 1.1(c) (the “Real Property”);

          (d) all agreements for the sale of advertising time on the Station, and all other contracts,
agreements and leases used in the Station’s business, including without limitation those listed on
Schedule 1.1(d), together with all contracts, agreements and leases made between the date hereof
and Closing in accordance with Article 4 (the “Station Contracts”);

          (e) all of Seller’s rights in and to the Station’s call letters and Seller’s rights in and to
the trademarks, trade names, service marks, internet domain names, copyrights, programs and
programming material, jingles, slogans, logos, and other intangible property which are used or held
for use in the operation of the Station, including without limitation those listed on Schedule
1.1(e) (the “Intangible Property”);

          (f) Seller’s rights in and to all the files, documents, records, and books of account (or
copies thereof) relating to the operation of the Station, including the Station’s local public
files, programming information and studies, engineering data, advertising studies, marketing and
demographic data, sales correspondence, lists of advertisers, credit and sales reports, and logs,
but excluding records relating to Excluded Assets (defined below); and

          (g) the Station’s accounts receivable and any other rights to payment of cash consideration
(including without limitation all rights to payments under the Station’s network affiliation
agreements, whether or not offset) for goods or services sold or provided prior to the Effective
Time (defined below) or otherwise arising during or attributable to any period prior to the
Effective Time (the “A/R”).

     1.2. Excluded Assets. Notwithstanding anything to the contrary contained herein, the
Station Assets shall not include the following assets or any rights, title and interest therein
(the “Excluded Assets”):

          (a) all cash and cash equivalents of Seller, including without limitation certificates of
deposit, commercial paper, treasury bills, marketable securities, money market accounts and all
such similar accounts or investments;

          (b) all tangible and intangible personal property of Seller retired or disposed of between the
date of this Agreement and Closing in accordance with Article 4;

          (c) all Station Contracts that are terminated or expire prior to Closing in accordance with
Article 4;

          (d) Seller’s corporate and trade names unrelated to the operation of the Station (including
the name “Emmis”), charter documents, and books and records relating to the organization, existence
or ownership of Seller, duplicate copies of the records of the Station, and all records not
relating to the operation of the Station;

          (e) all contracts of insurance, all coverages and proceeds thereunder and all rights in
connection therewith, including without limitation rights arising from any refunds due with respect
to insurance premium payments to the extent related to such insurance policies;

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          (f) all pension, profit sharing plans and trusts and the assets thereof and any other employee
benefit plan or arrangement and the assets thereof, if any, maintained by Seller;

          (g) any computer software and programs used in the operation of the Station that are not
transferable;

          (h) all rights and claims of Seller, whether mature, contingent or otherwise, against third
parties with respect to the Station and the Station Assets, to the extent arising during or
attributable to any period prior to the Effective Time;

          (i) all deposits and prepaid expenses (and rights arising therefrom or related thereto),
except to the extent Seller receives a credit therefor under Section 1.7;

          (j) all claims of Seller with respect to any tax refunds;

          (k) computers and other assets located at the Emmis Communications Corporation headquarters,
and the centralized server facility, data links, payroll system and other operating systems and
related assets that are used in the operation of multiple stations; and

          (l) the assets listed on Schedule 1.2, and the slogan “Great Media, Great People, Great
Service.”

     1.3. Shared Assets.

          (a) Some of the Station Contracts may be used by Seller or affiliates of Seller in the
operation of multiple stations or other business units (the “Shared Contracts”) and are identified
as such on Schedule 1.1(d). The rights and obligations under the Shared Contracts shall be
equitably allocated among stations in a manner reasonably determined by Seller in accordance with
the following equitable allocation principles:

                    (i) any allocation set forth in the Shared Contract shall control;

                    (ii) if none, then any allocation previously made by Seller in the ordinary course of Station
operations shall control;

                    (iii) if none, then the quantifiable proportionate benefit to be received by the parties after
Closing shall control; and

                    (iv) if not quantifiable, then reasonable accommodation shall control.

          (b) Buyer shall cooperate with Seller (and any third party designated by Seller) in such
allocation, and the Station Contracts (and Assumed Obligations (defined below)) will include only
Buyer’s allocated portion of the rights and obligations under the Shared Contracts (without need
for further action and whether such allocation occurs before or after Closing). If designated by
Seller, such allocation will occur by termination of the Shared Contract and execution of new
contracts. Buyer’s allocated portion of the Shared Contracts will not include any group discounts
or similar benefits specific to Seller or its affiliates. Completion of documentation of any such
allocation is not a condition to Closing.

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     1.4. Assumption of Obligations. On the Closing Date (defined below), Buyer shall
assume the obligations of Seller arising during, or attributable to, any period of time on or after
the Closing Date under the Station Contracts and the FCC Licenses, the obligations described in
Section 5.7 and any other liabilities of Seller to the extent Buyer receives a credit therefor
under Section 1.7 (collectively, the “Assumed Obligations”). Except for the Assumed Obligations,
Buyer does not assume, and will not be deemed by the execution and delivery of this Agreement or
the consummation of the transactions contemplated hereby to have assumed, any other liabilities or
obligations of Seller (the “Retained Obligations”).

     1.5. Purchase Price. In consideration for the sale of the Station Assets to Buyer, at
Closing Buyer shall pay Seller, by wire transfer of immediately available funds, the sum of One
Hundred Eighty-Six Million Dollars ($186,000,000), subject to adjustment pursuant to Section 1.7
(the “Purchase Price”).

     1.6. Deposit.

          (a) Within one (1) business day of the date of this Agreement, Buyer shall make a deposit (the
“Deposit”) by delivering to Seller (as beneficiary) a letter of credit (the “L/C”) issued by
Wachovia Bank NA or another bank reasonably satisfactory to Seller (the “Issuing Bank”) in the
stated amount and in the form of Exhibit A hereto. The L/C shall be without draw conditions other
than presentation to the Issuing Bank of a draw certificate (which may contain a statement that
Seller is entitled to draw under the terms of this Agreement), and shall have an expiry date of not
less than one year after the date hereof (and otherwise in a form reasonably satisfactory to
Seller). If the L/C is not extended prior to the date one month before its expiry date, then
Seller may present the L/C to the Issuing Bank and draw the entire stated amount and such proceeds
shall be held by Seller as a cash deposit.

          (b) At Closing, the Deposit, (i) if cash, shall be retained by Seller and applied to the
Purchase Price, or (ii) if an L/C, the L/C shall be returned to Buyer upon payment of the Purchase
Price. If this Agreement is terminated by Seller pursuant to Section 10.1(c), the Deposit, (i) if
cash, shall be retained by Seller, or (ii) if an L/C, Seller shall present the L/C to the Issuing
Bank and draw the entire stated amount thereof. Any such retention or payment to Seller shall be
credited as partial payment of liquidated damages under Section 10.5. If this Agreement is
terminated for any other reason, the Deposit, (i) if cash, shall be disbursed to Buyer, or (ii) if
an L/C, the L/C shall be returned to Buyer.

          (c) Any failure by Buyer to deliver the L/C to Seller within one (1) business day of the date
hereof constitutes a material default as to which the Cure Period under Section 10.1 does not apply
entitling Seller to immediately terminate this Agreement.

     1.7. Prorations and Adjustments.

          (a) All prepaid and deferred income and expenses relating to the Station Assets and arising
from the operation of the Station shall be prorated between Buyer and Seller in accordance with
accounting principles generally accepted in the United States (“GAAP”) as of 12:01 a.m. on the day
of Closing (the “Effective Time”). Such prorations shall include without limitation all ad
valorem, real estate and other property taxes (except transfer taxes as provided by Section 11.1),
music and other license fees, employee performance incentives set forth in

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employment agreements or
annual compensation plans, any vacation for Transferred Employees (defined below) (except accruals
for the fiscal year of Seller in which Closing occurs for which there shall be no adjustment),
utility expenses, rent and other amounts under Station Contracts and similar prepaid and deferred
items. Seller shall receive a credit for all of the Station’s deposits and prepaid expenses.
Sales commissions related to the sale of advertisements broadcast on the Station prior to the
Effective Time shall be the responsibility of Seller, and sales commissions related to the sale of
advertisements broadcast on the Station after the Effective Time shall be the responsibility of
Buyer.

          (b) With respect to trade, barter or similar agreements for the sale of time for goods or
services assumed by Buyer pursuant to Section 1.1(d), if at Closing the Station has an aggregate
negative or positive barter balance (i.e., the amount by which the value of air time to be provided
by the Station after the Effective Time exceeds, or conversely, is less than, the fair market value
of corresponding goods and services), there shall be no proration or adjustment, unless the
negative or positive barter balance of the Station as an aggregate exceeds $50,000, in which event
such excess or deficiency, as the case may be, shall be treated either as prepaid time sales or a
receivable of Seller, and adjusted for as a proration in Buyer’s or Seller’s favor, as applicable.
In determining barter balances, the value of air time shall be based upon Seller’s rates as of
Closing, and corresponding goods and services shall include those to be received by the Station
after Closing plus those received by the Station before Closing to the extent conveyed by Seller to
Buyer as a part of the Station Assets.

          (c) No later than three (3) business days prior to the scheduled Closing date, Seller shall
provide Buyer with a statement setting forth a reasonably detailed computation of Seller’s
reasonable and good faith estimate of the Adjustment Amount (defined below) as of Closing (the
“Preliminary Adjustment Report”). As used herein, the “Adjustment Amount” means the net amount by
which the Purchase Price is to be increased or decreased in accordance with this Section 1.7. If
the Adjustment Amount reflected on the Preliminary Adjustment Report is a credit to Buyer, then the
Purchase Price payable at Closing shall be reduced by the amount of the preliminary Adjustment
Amount, and if the Adjustment Amount reflected on the Preliminary Adjustment Report is a charge to
Buyer, then the Purchase Price payable at Closing shall be increased by the amount of such
preliminary Adjustment Amount. For a period of ninety (90) days after Closing, Seller and its
auditors and Buyer and its auditors may review the Preliminary Adjustment Report and the related
books and records of Seller with respect to the Station, and Buyer and Seller will in good faith
seek to reach agreement on the final Adjustment Amount. If agreement is reached within such 90-day
period, then promptly thereafter Seller shall pay to Buyer or Buyer shall pay to Seller, as the
case may be, an amount equal to the difference between (i) the agreed Adjustment Amount and (ii)
the preliminary Adjustment Amount indicated in the Preliminary Adjustment Report. If agreement is
not reached within such 90-day period, then the dispute resolutions of Section 1.7(d) shall apply.

          (d) If the parties do not reach an agreement on the Adjustment Amount within the 90-day period
specified in Section 1.7(c), then Seller and Buyer shall select an independent accounting firm of
recognized national standing (the “Arbitrating Firm”) to resolve the disputed items. If Seller and
Buyer do not agree on the Arbitrating Firm within five (5) calendar days after the end of such
90-day period, then the Arbitrating Firm shall be a nationally recognized independent accounting
firm selected by lot (after excluding one firm designated by Seller and one firm designated by
Buyer). Buyer and Seller shall each inform the Arbitrating Firm in

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writing as to their respective
positions with respect to the Adjustment Amount, and each shall make available to the Arbitrating
Firm any books and records and work papers relevant to the preparation of the Arbitrating Firm’s
computation of the Adjustment Amount. The Arbitrating Firm shall be instructed to complete its
analysis within thirty (30) days from the date of its engagement and upon completion to inform the
parties in writing of its own determination of the Adjustment Amount, the basis for its
determination and whether its determination is within the Mid-Range (defined below) or if not,
whether it is closer to Buyer’s or Seller’s written determination of the Adjustment Amount. Any
determination by the Arbitrating Firm in accordance with this Section shall be final and binding on
the parties. Within five (5) calendar days after the Arbitrating Firm delivers to the parties its
written determination of the Adjustment Amount, Seller shall pay to Buyer, or Buyer shall pay to
Seller, as the case may be, an amount equal to the difference between (i) the Adjustment Amount as
determined by the Arbitrating Firm and (ii) the preliminary Adjustment Amount indicated in the
Preliminary Adjustment Report.

          (e) If the Arbitrating Firm’s determination of the Adjustment Amount is within the Mid-Range,
then Seller and Buyer shall each pay one-half of the fees and disbursements of the Arbitrating Firm
in connection with its analysis. If not, then (i) if the Arbitrating Firm determines that the
written position of Buyer concerning the Adjustment Amount is closer to its own determination, then
Seller shall pay the fees and disbursements of the Arbitrating Firm in connection with its
analysis, or (ii) if the Arbitrating Firm determines that the written position of Seller concerning
the Adjustment Amount is closer to its own determination, then Buyer shall pay the fees and
disbursements of the Arbitrating Firm in connection with its analysis. As used herein, the term
“Mid-Range” means a range that (i) equals twenty percent (20%) of the absolute difference between
the written positions of Buyer and Seller as to the Adjustment Amount and (ii) has a midpoint equal
to the average of such written positions of Buyer and Seller.

          (f) All payments to be made under Section 1.7 shall be paid by wire transfer in immediately
available funds to the account of the payee at a financial institution in the United States and
shall for all purposes constitute an adjustment to the Purchase Price.

     1.8. Allocation. After Closing, Buyer and Seller will allocate the Purchase Price in
accordance with the respective fair market values of the Station Assets and the goodwill being
purchased and sold in accordance with the requirements of Section 1060 of the Internal Revenue Code
of 1986, as amended (the “Code”). Buyer and Seller shall file its federal income tax returns and
its other tax returns reflecting the allocation made pursuant to this Section.

     1.9. Closing. The consummation of the sale and purchase of the Station Assets
provided for in this Agreement (the “Closing”) shall take place on the fifth business day after the
date of the FCC Consent pursuant to the FCC’s initial order (or on such earlier day after such
consent as Buyer and Seller may mutually agree), subject to the satisfaction or waiver of the
conditions set forth in Articles 6 or 7 below. The date on which the Closing is to occur is
referred to herein as the “Closing Date.” Notwithstanding the foregoing, in the event there is a
banking moratorium or suspension of payments in respect of banks by federal authorities on the
scheduled Closing Date, then Closing shall be delayed until the first business day after which such
moratorium is lifted or federal authorities permit payments to be accepted at banks.

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     1.10. Governmental Consents.

          (a) Within five (5) business days of the date of this Agreement, Buyer and Seller shall file
an application with the FCC (the “FCC Application”) requesting FCC consent to the assignment of the
FCC Licenses to Buyer. FCC consent to the assignment of the main station FCC Licenses to Buyer
without any material adverse conditions other than those of general applicability is referred to
herein as the “FCC Consent.” Buyer and Seller shall diligently prosecute the FCC Application and
otherwise use their commercially reasonable efforts to obtain the FCC Consent as soon as possible.

          (b) If applicable, within ten (10) business days after the date of this Agreement, Buyer and
Seller shall make any required filings with the Federal Trade Commission and the United States
Department of Justice pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended (the “HSR Act”) with respect to the transactions contemplated hereby (including a request
for early termination of the waiting period thereunder), and shall thereafter promptly respond to
all requests received from such agencies for additional information or documentation. Expiration
or termination of any applicable waiting period under the HSR Act is referred to herein as “HSR
Clearance.”

          (c) Buyer and Seller shall notify each other of all documents filed with or received from any
governmental agency with respect to this Agreement or the transactions contemplated hereby. Buyer
and Seller shall furnish each other with such information and assistance as the other may
reasonably request in connection with their preparation of any governmental filing hereunder. The
FCC Consent and HSR Clearance are referred to herein collectively as the “Governmental Consents.”

ARTICLE 2: SELLER REPRESENTATIONS AND WARRANTIES

     Seller, jointly and severally, makes the following representations and warranties to Buyer:

     2.1. Organization. Each Seller is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, and is qualified to do business in
each jurisdiction in which the Station Assets are located. Emmis Operating Company is the sole
general partner of Emmis Broadcasting. Each Seller has the requisite power and authority to
execute, deliver and perform this Agreement and all of the other agreements and instruments to be
made by such Seller pursuant hereto (collectively, the “Seller Ancillary Agreements”) and to
consummate the transactions contemplated hereby.

     2.2. Authorization. The execution, delivery and performance of this Agreement and the
Seller Ancillary Agreements by each Seller has been duly authorized and approved by all necessary
action of such Seller and does not require any further authorization or consent of such Seller.
This Agreement is, and each Seller Ancillary Agreement when made by such Seller and the other
parties thereto will be, a legal, valid and binding agreement of such Seller enforceable in
accordance with its terms, except in each case as such enforceability may be limited by bankruptcy,
moratorium, insolvency, reorganization or other similar laws affecting or limiting the enforcement
of creditors’ rights generally and except as such enforceability is subject to

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general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

     2.3. No Conflicts. Except as set forth on Schedule 2.3 and except for the
Governmental Consents and consents to assign certain of the Station Contracts, the execution,
delivery and performance by each Seller of this Agreement and the Seller Ancillary Agreements and
the consummation by each Seller of any of the transactions contemplated hereby does not conflict
with any organizational documents of such Seller or any law, judgment, order, or decree to which
such Seller is subject, or require the consent or approval of, or a filing by such Seller with, any
governmental or regulatory authority or any third party.

     2.4. FCC Licenses. Except as set forth on Schedule 1.1(a):

          (a) Emmis License is the holder of the FCC Licenses described on Schedule 1.1(a). The FCC
Licenses are in full force and effect and have not been revoked, suspended, canceled, rescinded or
terminated and have not expired. There is not pending any action by or before the FCC to revoke,
suspend, cancel, rescind or materially adversely modify any of the FCC Licenses (other than
proceedings to amend FCC rules of general applicability). There is not issued or outstanding, by
or before the FCC, any order to show cause, notice of violation, notice of apparent liability, or
order of forfeiture against the Station or against any Seller with respect to the Station that
could result in any such action. The Station is operating in compliance in all material respects
with the FCC Licenses, the Communications Act of 1934, as amended (the “Communications Act”), and
the rules, regulations and policies of the FCC.

          (b) The Station has been assigned a channel by the FCC for the provision of digital television
(“DTV”) service, and the FCC Licenses include such authorization. The Station is broadcasting the
DTV signal in accordance with such authorization in all material respects.

     2.5. Taxes. Each Seller has, in respect of the Station’s business, filed all foreign,
federal, state, county and local income, excise, property, sales, use, franchise and other tax
returns and reports which are required to have been filed by it under applicable law, and has paid
all taxes which have become due pursuant to such returns or pursuant to any assessments which have
become payable.

     2.6. Personal Property. Schedule 1.1(b) contains a list of material items of Tangible
Personal Property included in the Station Assets. Except as set forth on Schedule 1.1(b), Seller
has title to the Tangible Personal Property free and clear of liens, claims and encumbrances
(“Liens”) other than Permitted Liens (defined below). Except as set forth on Schedule 1.1(b), all
material items of Tangible Personal Property are in normal operating condition, ordinary wear and
tear excepted. As used herein, “Permitted Liens” means, collectively, the Assumed Obligations,
liens for taxes not yet due and payable, liens that will be released at or prior to Closing, and,
solely with respect to the Real Property, such other easements, rights of way, building and use
restrictions, exceptions, reservations and limitations that do not in any material respect detract
from the value of the property subject thereto or impair the use thereof in the ordinary course of
the business of the Station.

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     2.7. Real Property. Schedule 1.1(c) contains a description of all Real Property
included in the Station Assets. Seller has fee simple title to the owned Real Property described
on Schedule 1.1(c) (the “Owned Real Property”) free and clear of Liens other than Permitted Liens.
Schedule 1.1(c) includes a description of each lease of Real Property or similar agreement included
in the Station Contracts (the “Real Property Leases”). To Seller’s knowledge, the Real Property is
not subject to any suit for condemnation or other taking by any public authority.

     2.8. Contracts. Except as set forth on Schedule 1.1(d), each of the Station Contracts
(including without limitation each of the Real Property Leases) is in effect and is binding upon
Seller and, to Seller’s knowledge, the other parties thereto (subject to bankruptcy, insolvency,
reorganization or other similar laws relating to or affecting the enforcement of creditors’ rights
generally). Seller has performed its obligations under each of the Station Contracts in all
material respects, and is not in material default thereunder, and to Seller’s knowledge, no other
party to any of the Station Contracts is in default thereunder in any material respect.

     2.9. Environmental. Except as set forth on Schedule 1.1(c) or in any Phase I (defined
below), to Seller’s knowledge, no hazardous or toxic substance or waste regulated under any
applicable environmental, health or safety law has been generated, stored, transported or released
on, in, from or to the Real Property included in the Station Assets. Except as set forth on
Schedule 1.1(c) or in any Phase I, to Seller’s knowledge, Seller has complied in all material
respects with all environmental, health and safety laws applicable to the Station.

     2.10. Intangible Property. Schedule 1.1(e) contains a description of the material
Intangible Property included in the Station Assets. Except as set forth on Schedule 1.1(e), to
Seller’s knowledge, Seller’s use of the Intangible Property does not infringe upon any third party
rights in any material respect. Except as set forth on Schedule 1.1(e), to Seller’s knowledge,
Seller owns or has the right to use the Intangible Property free and clear of Liens other than
Permitted Liens.

     2.11. Employees. Except as set forth on Schedule 2.11, (i) each Seller has complied
in all material respects with all labor and employment laws, rules and regulations applicable to
the Station’s business, including without limitation those which relate to prices, wages, hours,
discrimination in employment and collective bargaining, and (ii) there is no unfair labor practice
charge or complaint against any Seller in respect of the Station’s business pending or to Seller’s
knowledge threatened before the National Labor Relations Board, any state labor relations board or
any court or tribunal, and there is no strike, dispute, request for representation, slowdown or
stoppage pending or threatened in respect of the Station’s business.

     2.12. Insurance. Seller maintains insurance policies or other arrangements with
respect to the Station and the Station Assets consistent with its practices for other stations, and
will maintain such policies or arrangements until the Effective Time.

     2.13. Compliance with Law. Except as set forth on Schedule 2.13, (i) each Seller has
complied in all material respects with all laws, rules and regulations, and all decrees and orders
of any court or governmental authority which are applicable to the operation of the Station, and
(ii) to Seller’s knowledge, there are no governmental claims or investigations pending or
threatened against any Seller in respect of the Station except those affecting the industry
generally.

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     2.14. Litigation. Except as set forth on Schedule 2.14, there is no action, suit or
proceeding pending or, to Seller’s knowledge, threatened against any Seller in respect of the
Station that will subject Buyer to liability or which will affect Seller’s ability to perform its
obligations under this Agreement.

     2.15. Financial Statements. Seller has provided to Buyer copies of its statements of
operations for the Station for the years ended February 29, 2004 and February 28, 2005. Such
statements are the statements included in the audited consolidated financial statements of Seller
and its affiliates (but such statements are not separately audited). Such statements have been
prepared in accordance with GAAP consistently applied and in the aggregate present fairly in all
material respects the results of operations of the Station as operated by Seller for the respective
periods covered thereby, except that (i) shared operating expenses (if applicable) are allocated
among the television broadcast stations owned by Seller as determined by Seller, and (ii) such
statements do not include income tax expense or benefit, interest income and expense, disclosures
required by GAAP in notes accompanying the financial statements, retiree benefit expense (pension,
health insurance, etc.), non-cash compensation expenses associated with the discount given to
employees on stock purchases, certain revenues and expenses associated with operating the Station
as a group and expenses attributable to the adoption of accounting pronouncements.

ARTICLE 3: BUYER REPRESENTATIONS AND WARRANTIES

     Buyer hereby makes the following representations and warranties to Seller:

     3.1. Organization. Buyer is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, and is qualified to do business in each
jurisdiction in which the Station Assets are located. Buyer has the requisite power and authority
to execute, deliver and perform this Agreement and all of the other agreements and instruments to
be executed and delivered by Buyer pursuant hereto (collectively, the “Buyer Ancillary Agreements”)
and to consummate the transactions contemplated hereby.

     3.2. Authorization. The execution, delivery and performance of this Agreement and the
Buyer Ancillary Agreements by Buyer have been duly authorized and approved by all necessary action
of Buyer and do not require any further authorization or consent of Buyer. This Agreement is, and
each Buyer Ancillary Agreement when made by Buyer and the other parties thereto will be, a legal,
valid and binding agreement of Buyer enforceable in accordance with its terms, except in each case
as such enforceability may be limited by bankruptcy, moratorium, insolvency, reorganization or
other similar laws affecting or limiting the enforcement of creditors’ rights generally and except
as such enforceability is subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     3.3. No Conflicts. Except for the Governmental Consents, the execution, delivery and
performance by Buyer of this Agreement and the Buyer Ancillary Agreements and the consummation by
Buyer of any of the transactions contemplated hereby does not conflict with any organizational
documents of Buyer or any law, judgment, order or decree to which Buyer is subject, or require the
consent or approval of, or a filing by Buyer with, any governmental or regulatory authority or any
third party.

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     3.4. Litigation. There is no action, suit or proceeding pending or threatened against
Buyer which questions the legality or propriety of the transactions contemplated by this Agreement
or could materially adversely affect the ability of Buyer to perform its obligations hereunder.

     3.5. Qualification. Buyer is legally, financially and otherwise qualified to be the
licensee of, acquire, own and operate the Station under the Communications Act and the rules,
regulations and policies of the FCC. There are no facts that would, under existing law and the
existing rules, regulations, policies and procedures of the FCC, disqualify Buyer as an assignee of
the FCC Licenses or as the owner and operator of the Station. No waiver of or exemption from any
FCC rule or policy is necessary for the FCC Consent to be obtained. There are no matters which
might reasonably be expected to result in the FCC’s denial or delay of approval of the FCC
Application.

ARTICLE 4: SELLER COVENANTS 

     4.1. Seller’s Covenants. Between the date hereof and Closing, except as permitted by
this Agreement or with the prior written consent of Buyer, which shall not be unreasonably
withheld, delayed or conditioned, Seller shall:

          (a) operate the Station in the ordinary course of business and in all material respects in
accordance with FCC rules and regulations and with all other applicable laws, regulations, rules
and orders;

          (b) not materially adversely modify any of the FCC Licenses;

          (c) not other than in the ordinary course of business, sell, lease or dispose of or agree to
sell, lease or dispose of any of the Station Assets unless replaced with similar items of
substantially equal or greater value and utility, or create, assume or permit to exist any Liens
upon the Station Assets, except for Permitted Liens;

          (d) upon reasonable notice, give Buyer reasonable access during normal business hours to the
Station Assets, and furnish Buyer with information relating to the Station Assets that Buyer may
reasonably request, provided that such access rights shall not be exercised in a manner that
interferes with the operation of the Station;

          (e) at Buyer’s sole cost and expense, provide Buyer any financial information regarding the
Station that is maintained by Seller on an unconsolidated basis and requested by Buyer that is
reasonably necessary to satisfy any reporting obligations to the Securities and Exchange Commission
or reasonably necessary to obtain acquisition financing for the Station;

          (f) except in the ordinary course of business and as otherwise required by law, (i) not enter
into any employment, labor, or union agreement or plan (or amendments of any such existing
agreements or plan) that will be binding upon Buyer after Closing or (ii) increase the compensation
payable to any employee of the Station, except for bonuses and other compensation payable by Seller
in connection with the consummation of the transactions contemplated by this Agreement; and

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          (g) not, other than in the ordinary course of business, enter into new Station Contracts or
amend any existing Station Contracts.

ARTICLE 5: JOINT COVENANTS

     Buyer and Seller hereby covenant and agree as follows:

     5.1. Confidentiality. Seller (or The Blackstone Group, LLC on behalf of Seller) and
Buyer (or an affiliate of Buyer on behalf of Buyer) are parties to a non-disclosure agreement with
respect to Seller and its television stations (the “NDA”). To the extent not already a direct
party thereto, Seller and Buyer hereby assume the NDA and agree to be bound by the provisions
thereof. Without limiting the terms of the NDA, subject to the requirements of applicable law, all
non-public information regarding the parties and their business and properties that is disclosed in
connection with the negotiation, preparation or performance of this Agreement (including without
limitation all financial information provided by Seller to Buyer) shall be confidential and shall
not be disclosed to any other person or entity, except in accordance with the terms of the NDA.

     5.2. Announcements. Prior to Closing, no party shall, without the prior written
consent of the other, issue any press release or make any other public announcement concerning the
transactions contemplated by this Agreement, except to the extent that such party is so obligated
by law, in which case such party shall give advance notice to the other.

     5.3. Control. Buyer shall not, directly or indirectly, control, supervise or direct
the operation of the Station prior to Closing. Consistent with the Communications Act and the FCC
rules and regulations, control, supervision and direction of the operation of the Station prior to
Closing shall remain the responsibility of Seller as the holder of the FCC Licenses.

     5.4. Risk of Loss.

          (a) Seller shall bear the risk of any loss of or damage to any of the Station Assets at all
times until the Effective Time, and Buyer shall bear the risk of any such loss or damage
thereafter.

          (b) If prior to the Effective Time any item of Tangible Personal Property is damaged or
destroyed or otherwise not in the condition described in Section 2.6 in any material respect, then:

                    (i) Seller shall promptly notify Buyer of such loss and use commercially reasonable efforts
to repair or replace such item in all material respects in the ordinary course of business,

                    (ii) Seller’s representations and warranties, and Buyer’s pre-Closing termination rights and
post-Closing indemnification rights, are hereby modified to take into account any such condition,
and

                    (iii) if such repair or replacement is not completed prior to Closing, then as Buyer’s sole
remedy, the parties shall proceed to Closing and Seller shall repair or replace

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such item in all
material respects after Closing (and Buyer will provide Seller access and any other reasonable
assistance requested by Seller with respect to such obligation).

          (c) If prior to Closing, except for any DTV signal operating under Special Temporary
Authority, the Station is off the air or operating at power levels that result in a material
reduction in coverage (a “Broadcast Interruption”), then Seller shall use commercially reasonable
efforts to return the Station to the air and restore prior coverage as promptly as practicable in
the ordinary course of business. Notwithstanding anything herein to the contrary, if on the day
otherwise scheduled for Closing, there is a Broadcast Interruption of the Station (excluding
translators and auxiliaries) that results in a material reduction in coverage, then Closing shall
be postponed until the date five (5) business days after the Station returns to the air and prior
coverage is restored in all material respects, subject to Section 10.1.

     5.5. Environmental.

          (a) Seller has provided Buyer with copies of Phase I environmental assessments of certain Real
Property sites as shown on Schedule 1.1(c), if any (each a “Phase I”).

          (b) Such assessments identified the items set forth on Schedule 1.1(c). With respect to such
items and any other items or conditions identified in any Phase I or in any further assessments,
testing or analysis of such Real Property sites done in connection herewith that identifies a
condition that requires remediation in order for the Station to operate in compliance with
applicable environmental law in all material respects:

                    (i) except as set forth below, Seller shall use commercially reasonable efforts to remediate
such items or conditions in all material respects in the ordinary course of business,

                    (ii) Seller’s representations and warranties, and Buyer’s pre-Closing termination rights and
post-Closing indemnification rights, are hereby modified to take into account any such items or
conditions, and

                    (iii) if such remediation is not completed prior to Closing, then as Buyer’s sole remedy, the
parties shall proceed to Closing and Seller shall remediate such conditions or items in all
material respects after Closing (and Buyer will provide Seller access and any other reasonable
assistance requested by Seller with respect to such obligation).

          (c) Notwithstanding anything herein to the contrary, if at any time the reasonably estimated
cost to remedy such items or conditions in the aggregate exceeds $500,000, then Seller may
terminate this Agreement prior to Closing upon written notice to Buyer.

     5.6. Consents.

          (a) The parties shall use commercially reasonable efforts to obtain (i) any third party
consents necessary for the assignment of any Station Contract (which shall not require any payment
to any such third party), and (ii) execution of reasonable estoppel certificates by lessors under
any Real Property Leases requiring consent to assignment (if any), but no such consents or estoppel
certificates are conditions to Closing except for the Required Consents (defined below). Receipt
of consent to assign to Buyer the Station’s network affiliation

-13-

 

agreement designated with a diamond
on Schedule 1.1(d) and the Station’s main tower leases designated with a diamond on Schedule 1.1(c)
(if any) is a condition precedent to Buyer’s obligation to close under this Agreement (the
“Required Consents”).

          (b) To the extent that any Station Contract may not be assigned without the consent of any
third party, and such consent is not obtained prior to Closing, this Agreement and any assignment
executed pursuant to this Agreement shall not constitute an assignment of such Station Contract;
provided, however, with respect to each such Station Contract, Seller and Buyer shall cooperate to
the extent feasible in effecting a lawful and commercially reasonable arrangement under which Buyer
shall receive the benefits under the Station Contract from and after Closing, and to the extent of
the benefits received, Buyer shall pay and perform Seller’s obligations arising under the Station
Contract from and after Closing in accordance with its terms.

     5.7. Employees.

          (a) For a period of two (2) years from the date of this Agreement, Buyer shall not, without
the prior written consent of Seller, solicit for employment, induce or attempt to induce to leave
Seller’s or an affiliate of Seller’s employ, or hire, any employees of Seller or its affiliates
staffed in Seller’s Indianapolis headquarters or at any other television station owned by Seller or
its affiliates (other than general solicitations not directed solely to any such employees).

          (b) Seller has provided Buyer a list showing employee positions and annualized pay rates for
employees of the Station. Buyer shall offer employment to all persons employed by Seller
immediately prior to Closing (including any hired after the date hereof, provided that such
employee is hired in the ordinary course of business) upon substantially the same terms and
conditions and with substantially the same duties and benefits as in effect immediately preceding
the Closing, including but not limited to wages, salaries, commission rate (if applicable) and
target bonuses (all determined on a cash basis before taking into account Seller’s stock
compensation program). With respect to each employee who accepts such offer (collectively, the
“Transferred Employees”), at Closing employment with Seller shall terminate and employment with
Buyer shall commence, and Buyer shall retain each such employee on such terms for a period of not
less than one (1) year after Closing, unless terminated for cause. Without limiting the foregoing,
with respect to any Transferred Employee, Buyer shall be responsible for any applicable severance
in accordance with Seller’s severance policy (a copy of which has been provided to Buyer).

          (c) With respect to Transferred Employees, Seller shall be responsible for all compensation
and benefits arising prior to the Effective Time, and Buyer shall be responsible for all
compensation and benefits arising after the Effective Time. Notwithstanding anything herein to the
contrary, Buyer shall grant credit to each Transferred Employee for all unused vacation accrued as
of the Effective Time as an employee of Seller, and Buyer shall assume and discharge Seller’s
obligation to provide such leave to such employees (such obligations being a part of the Assumed
Obligations).

          (d) Buyer shall permit Transferred Employees (and their spouses and dependents) to participate
in its “employee welfare benefit plans” (including without limitation health insurance plans) and
“employee pension benefit plans” (as defined in Section 3(1) and

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3(2) of ERISA, respectively) in
which similarly situated employees are generally eligible to participate, with coverage effective
immediately upon Closing (and without exclusion from coverage on account of any pre-existing
condition), with service with Seller deemed service with the Buyer for purposes of any length of
service requirements, waiting periods, vesting periods and differential benefits based on length of
service, and with credit under any welfare benefit plan for any deductibles or co-payments paid for
the current plan year under any plan maintained by Seller. Notwithstanding the above, if required
by Buyer’s plan, no prior service with Seller shall be credited under Buyer’s defined pension plan
for any reason.

          (e) Buyer shall also permit each Transferred Employee who participates in the Seller’s 401(k)
plan to elect to make direct rollovers of their account balances into the Buyer’s 401(k) plan as of
Closing, including the direct rollover of any outstanding loan balances such that they will
continue to make payments under the terms of such loans under the Buyer’s 401(k) plan, subject to
compliance with applicable law and subject to the reasonable requirements of Buyer’s 401(k) plan.

     5.8. Accounting Services.

          (a) For a period of ninety (90) days after Closing (the “Collection Period”), Buyer
shall, without charge to Seller, use commercially reasonable efforts to collect the A/R in the
ordinary course of business and shall apply all amounts collected from the Station’s account
debtors to the oldest account first, unless the advertiser disputes in good faith in writing an
older account and designates the payment to a newer account. Buyer shall not discount, adjust or
otherwise compromise any A/R and Buyer shall refer any disputed A/R to Seller. Within ten calendar
days after the end of each month, Buyer shall deliver to Seller a report showing A/R collections
for the prior month. Within ten (10) business days after the end of the Collection Period, Buyer
shall certify in writing to Seller the aggregate amount of A/R collections (the “A/R Amount”),
together with a statement setting forth a reasonably detailed computation of the A/R Amount (such
certificate, the “Collection Certificate”). If the A/R Amount is less than Four Million Dollars
($4,000,000) (the “Target Amount”), then Seller shall pay Buyer such shortfall within ten (10)
business days after receipt of the Collection Certificate. If the A/R Amount exceeds the Target
Amount, then Buyer shall pay Seller such excess upon delivery of the Collection Certificate. Buyer
shall provide Seller with such backup documentation as is reasonably requested by Seller to verify
the A/R Amount, and the parties shall negotiate in good faith to resolve any disagreement about the
A/R Amount promptly after the end of the Collection Period. Upon such payment, any remaining A/R
shall be returned to Seller for collection.

          (b) During the first fifteen (15) business days after Closing, Buyer shall provide to
Seller at no additional cost the services of the Station’s business offices, together with
reasonable access to related systems and records, for the purposes of closing the books of the
Station for the period prior to Closing and of facilitating the distribution of any stock
compensation from Seller to the Station’s employees, all in accordance with the procedures and
practices applied by the business offices for periods prior to Closing.

     5.9. 1031 Exchange. To facilitate a like-kind exchange under Section 1031 of the
Code, Seller may assign its rights under this Agreement (in whole or
in part) to a “qualified intermediary” under section 1.1031(k)-1(g)(4) of the treasury regulations (but such assignment
shall not relieve Seller of its obligations under this Agreement) and any such qualified
intermediary

-15-

 

may re-assign to Seller; provided that no such assignment shall prevent or delay
Closing. If Seller gives notice of such assignment, Buyer shall provide Seller with a written
acknowledgment of such notice prior to Closing and pay the Purchase Price (or such portion thereof
as is designated in writing by the qualified intermediary) to or on behalf of the qualified
intermediary at Closing and otherwise reasonably cooperate therewith.

ARTICLE 6: SELLER CLOSING CONDITIONS 

     The obligation of Seller to consummate the Closing hereunder is subject to satisfaction, at or
prior to Closing, of each of the following conditions (unless waived in writing by Seller):

     6.1. Representations and Covenants.

          (a) The representations and warranties of Buyer made in this Agreement, shall be true and
correct in all material respects as of the Closing Date except for changes permitted or
contemplated by the terms of this Agreement.

          (b) The covenants and agreements to be complied with and performed by Buyer at or prior to
Closing shall have been complied with or performed in all material respects.

          (c) Seller shall have received a certificate dated as of the Closing Date from Buyer executed
by an authorized officer of Buyer to the effect that the conditions set forth in Sections 6.1(a)
and (b) have been satisfied.

     6.2. Proceedings. Neither Seller nor Buyer shall be subject to any court or
governmental order or injunction restraining or prohibiting the consummation of the transactions
contemplated hereby.

     6.3. FCC Authorization. The FCC Consent shall have been obtained.

     6.4. Hart Scott Rodino. If applicable, the HSR Clearance shall have been obtained.

     6.5. Deliveries. Buyer shall have complied with its obligations set forth in Section
8.2.

ARTICLE 7: BUYER CLOSING CONDITIONS 

     The obligation of Buyer to consummate the Closing hereunder is subject to satisfaction, at or
prior to Closing, of each of the following conditions (unless waived in writing by Buyer):

     7.1. Representations and Covenants.

          (a) The representations and warranties of Seller made in this Agreement shall be true and
correct in all material respects as of the Closing Date except for changes permitted or
contemplated by the terms of this Agreement.

          (b) The covenants and agreements to be complied with and performed by Seller at or prior to
Closing shall have been complied with or performed in all material respects.

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          (c) Buyer shall have received a certificate dated as of the Closing Date from Seller executed
by an authorized officer of Seller to the effect that the conditions set forth in Sections 7.1(a)
and (b) have been satisfied.

     7.2. Proceedings. Neither Seller nor Buyer shall be subject to any court or
governmental order or injunction restraining or prohibiting the consummation of the transactions
contemplated hereby.

     7.3. FCC Authorization. The FCC Consent shall have been obtained.

     7.4. Hart Scott Rodino. If applicable, the HSR Clearance shall have been obtained.

     7.5. Deliveries. Seller shall have complied with its obligations set forth in Section
8.1.

     7.6. Consents. The Required Consents shall have been obtained.

ARTICLE 8: CLOSING DELIVERIES

     8.1. Seller Documents. At Closing, Seller shall deliver or cause to be delivered to
Buyer:

          (i) good standing certificates issued by the Secretary of State of Seller’s jurisdiction of
formation;

          (ii) certified copies of resolutions authorizing the execution, delivery and performance of
this Agreement, including the consummation of the transactions contemplated hereby;

          (iii) the certificate described in Section 7.1(c);

          (iv) an assignment of FCC authorizations assigning the FCC Licenses from Seller to Buyer;

          (v) an assignment and assumption of contracts assigning the Station Contracts from Seller to
Buyer;

          (vi) an assignment and assumption of leases assigning the Real Property Leases (if any) from
Seller to Buyer;

          (vii) special warranty deeds conveying the Owned Real Property (if any) from Seller to Buyer;

          (viii) an assignment of marks assigning the Station’s registered marks listed on Schedule
1.1(e) (if any) from Seller to Buyer;

          (ix) domain name transfers assigning the Station’s domain names listed on Schedule 1.1(e) (if
any) from Seller to Buyer;

          (x) endorsed vehicle titles conveying the vehicles included in the Tangible Personal Property
(if any) from Seller to Buyer;

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          (xi) a bill of sale conveying the other Station Assets from Seller to Buyer; and

          (xii) any other instruments of conveyance, assignment and transfer that may be reasonably
necessary to convey, transfer and assign the Station Assets from Seller to Buyer, free and clear of
Liens, except for Permitted Liens.

     8.2. Buyer Documents. At Closing, Buyer shall deliver or cause to be delivered to
Seller:

          (i) the Purchase Price in accordance with Section 1.5 hereof;

          (ii) good standing certificates issued by the Secretary of State of Buyer’s jurisdiction of
formation;

          (iii) certified copies of resolutions authorizing the execution, delivery and performance of
this Agreement, including the consummation of the transactions contemplated hereby;

          (iv) the certificate described in Section 6.1(c);

          (v) an assignment and assumption of contracts assuming the Station Contracts;

          (vi) an assignment and assumption of leases assuming the Real Property Leases (if any);

          (vii) domain name transfers assuming the Station’s domain names listed on Schedule 1.1(e) (if
any); and

          (viii) such other documents and instruments of assumption that may be necessary to assume the
Assumed Obligations.

ARTICLE 9: SURVIVAL; INDEMNIFICATION

     9.1. Survival. The representations and warranties in this Agreement shall survive
Closing for a period of twelve (12) months from the Closing Date whereupon they shall expire and be
of no further force or effect, except that if within such period the indemnified party gives the
indemnifying party written notice of a claim for breach thereof describing in reasonable detail the
nature and basis of such claim, then such claim shall survive until the earlier of resolution of
such claim or expiration of the applicable statue of limitations. The covenants and agreements in
this Agreement shall survive Closing until performed.

     9.2. Indemnification.

          (a) Subject to Section 9.2(b), from and after Closing, Seller, jointly and severally, shall
defend, indemnify and hold harmless Buyer from and against any and all losses, costs, damages,
liabilities and expenses, including reasonable attorneys’ fees and expenses (“Damages”) incurred by
Buyer arising out of or resulting from:

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                    (i) any breach by Buyer of its representations and warranties made under this Agreement; or

                    (ii) any default by Buyer of any covenant or agreement made under this Agreement; or

                    (iii) the Assumed Obligations; or

                    (iv) the business or operation of the Stations after the Effective Time.

          (b) Notwithstanding the foregoing or anything else herein to the contrary, after Closing,
except with respect to Retained Obligations, (i) Seller shall have no liability to Buyer under
Section 9.2(a), until, and only to the extent that, Buyer’s aggregate Damages exceed $500,000 and
(ii) the maximum liability of Seller under Section 9.2(a) shall be an amount equal to 20% of the
Purchase Price.

          (c) From and after Closing, Buyer shall defend, indemnify and hold harmless Seller from and
against any and all Damages incurred by Seller arising out of or resulting from:

                    (i) any breach by Buyer of its representations and warranties made under this Agreement; or

                    (ii) any default by Buyer of any covenant or agreement made under this Agreement; or

                    (iii) the Assumed Obligations; or
(iv) the business or operation of the Station after the Effective Time.

     9.3. Procedures.

          (a) The indemnified party shall give prompt written notice to the indemnifying party of any
demand, suit, claim or assertion of liability by third parties that is subject to indemnification
hereunder (a “Claim”), but a failure to give such notice or delaying such notice shall not affect
the indemnified party’s rights or the indemnifying party’s obligations except to the extent the
indemnifying party’s ability to remedy, contest, defend or settle with respect to such Claim is
thereby prejudiced and provided that such notice is given within the time period described in
Section 9.1.

          (b) The indemnifying party shall have the right to undertake the defense or opposition to such
Claim with counsel selected by it. In the event that the indemnifying party does not undertake
such defense or opposition in a timely manner, the indemnified party may undertake the defense,
opposition, compromise or settlement of such Claim with counsel selected by it at the indemnifying
party’s cost (subject to the right of the indemnifying party to assume defense of or opposition to
such Claim at any time prior to settlement, compromise or final determination thereof).

          (c) Anything herein to the contrary notwithstanding:

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                    (i) the indemnified party shall have the right, at its own cost and expense, to participate
in the defense, opposition, compromise or settlement of the Claim;

                    (ii) the indemnifying party shall not, without the indemnified party’s written consent,
settle or compromise any Claim or consent to entry of any judgment which does not include the
giving by the claimant to the indemnified party of a release from all liability in respect of such
Claim; and

                    (iii) in the event that the indemnifying party undertakes defense of or opposition to any
Claim, the indemnified party, by counsel or other representative of its own choosing and at its
sole cost and expense, shall have the right to consult with the indemnifying party and its counsel
concerning such Claim and the indemnifying party and the indemnified party and their respective
counsel shall cooperate in good faith with respect to such Claim.

ARTICLE 10: TERMINATION AND REMEDIES

     10.1. Termination. Subject to Section 10.3, this Agreement may be terminated prior to
Closing as follows:

          (a) by mutual written consent of Buyer and Seller;

          (b) by written notice of Buyer to Seller if Seller breaches its representations or warranties
or defaults in the performance of its covenants contained in this Agreement and such breach or
default is material in the context of the transactions contemplated hereby and is not cured within
the Cure Period (defined below);

          (c) by written notice of Seller to Buyer if Buyer breaches its representations or warranties
or defaults in the performance of its covenants contained in this Agreement and such breach or
default is material in the context of the transactions contemplated hereby and is not cured within
the Cure Period; provided, however, that the Cure Period shall not apply to Buyer’s obligations to
deliver the L/C to Seller within one (1) business day of the date hereof and to pay the Purchase
Price at Closing;

          (d) by written notice of Seller to Buyer or Buyer to Seller if Closing does not occur by the
date twelve (12) months after the date of this Agreement; or

          (e) as provided by Section 5.5(c).

     10.2. Cure Period. Each party shall give the other party prompt written notice upon
learning of any breach or default by the other party under this Agreement. The term “Cure Period”
as used herein means a period commencing on the date Buyer or Seller receives from the other
written notice of breach or default hereunder and continuing until the earlier of (i) twenty (20)
calendar days thereafter or (ii) five (5) business days after the scheduled Closing date; provided,
however, that if the breach or default is non-monetary and cannot reasonably be cured within such
period but can be cured before the date five (5) business days after the scheduled Closing date,
and if diligent efforts to cure promptly commence, then the Cure Period shall continue as long as
such diligent efforts to cure continue, but not beyond the date five (5) business days after the
scheduled Closing date.

-20-

 

     10.3. Survival. Neither party may terminate under Sections 10.1(b) or (c) if it is
then in material default under this Agreement. Except as provided by Section 10.5, the termination
of this Agreement shall not relieve any party of any liability for breach or default under this
Agreement prior to the date of termination. Notwithstanding anything contained herein to the
contrary, Sections 1.6 (Deposit) (and Sections 10.4 and 10.5 with respect to the Deposit), 5.1
(Confidentiality) and 11.1 (Expenses) shall survive any termination of this Agreement.

     10.4. Specific Performance. In the event of failure or threatened failure by either
party to comply with the terms of this Agreement, the other party shall be entitled to an
injunction restraining such failure or threatened failure and, subject to obtaining any necessary
FCC consent, to enforcement of this Agreement by a decree of specific performance requiring
compliance with this Agreement.

     10.5. Liquidated Damages. If Seller terminates this Agreement pursuant to Section
10.1(c), then Buyer shall pay Seller on demand the sum of $27,000,000 (less the amount of the
Deposit actually paid to Seller pursuant to Section 1.6(b)) by wire transfer of immediately
available funds, and such payment shall constitute liquidated damages and the sole remedy of Seller
under this Agreement. Buyer acknowledges and agrees that Seller’s recovery of such amount shall
constitute payment of liquidated damages and not a penalty and that Seller’s liquidated damages
amount is reasonable in light of the substantial but indeterminate harm anticipated to be caused by
Buyer’s material breach or default under this Agreement, the difficulty of proof of loss and
damages, the inconvenience and non-feasibility of otherwise obtaining an adequate remedy, and the
value of the transactions to be consummated hereunder.

ARTICLE 11: MISCELLANEOUS

     11.1. Expenses. Each party shall be solely responsible for all costs and expenses
incurred by it in connection with the negotiation, preparation and performance of and compliance
with the terms of this Agreement. All governmental fees and charges applicable to any requests for
Governmental Consents shall be paid one-half by Buyer and one-half by Seller. Buyer shall be
solely responsible for all governmental taxes, fees and charges applicable to the transfer of the
Station Assets under this Agreement. Each party is responsible for any commission, brokerage fee,
advisory fee or other similar payment that arises as a result of any agreement or action of it or
any party acting on its behalf in connection with this Agreement or the transactions contemplated
hereby.

     11.2. Further Assurances. After Closing, each party shall from time to time, at the
request of and without further cost or expense to the other, execute and deliver such other
instruments of conveyance and assumption and take such other actions as may reasonably be requested
in order to more effectively consummate the transactions contemplated hereby. Emmis Operating
Company is the general partner of Emmis Broadcasting and as such is liable for all of its
obligations under this Agreement.

     11.3. Assignment. Except as provided by Section 5.9 (1031 Exchange), neither party
may assign this Agreement without the prior written consent of the other party hereto. The terms
of this Agreement shall bind and inure to the benefit of the parties’ respective successors and any
permitted assigns, and no assignment shall relieve any party of any obligation or liability under
this Agreement.

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     11.4. Notices. Any notice pursuant to this Agreement shall be in writing and shall be
deemed delivered on the date of personal delivery or confirmed facsimile transmission or confirmed
delivery by a nationally recognized overnight courier service, and shall be addressed as follows
(or to such other address as any party may request by written notice):

	 	 	 
	if to Seller:

	 	c/o Emmis Communications Corporation
	

	 	One Emmis Plaza
	

	 	40 Monument Circle, Suite 700
	

	 	Indianapolis, Indiana 46204
	

	 	Attention: President and CEO
	

	 	Facsimile: (317) 684-5583
	 
	 	 
	with copies (which shall not

	 	Emmis Communications Corporation
	constitute notice) to:

	 	3500 W. Olive Avenue, Suite 1450
	

	 	Burbank, California 91505
	

	 	Attention: Gary Kaseff
	

	 	Facsimile: (818) 238-9158
	 
	 	 
	

	 	Wiley Rein & Fielding LLP
	

	 	1776 K Street, N.W.
	

	 	Washington, D.C. 20006
	

	 	Attention: Doc Bodensteiner
	

	 	Facsimile: (202) 719-7049
	 
	 	 
	

	 	Bose McKinney & Evans, LLP
	

	 	2700 First Indiana Plaza
	

	 	135 N. Pennsylvania Street
	

	 	Indianapolis, Indiana 46204
	

	 	Attention: David L. Wills
	

	 	Facsimile: (317) 223-0125
	 
	 	 
	if to Buyer:

	 	Gray Television, Inc.
	

	 	4370 Peachtree Road N.E.
	

	 	Atlanta, Georgia 30319
	

	 	Attention: Robert S. Prather
	

	 	Facsimile: 404-261-9607
	 
	 	 
	with a copy (which shall not

	 	Troutman Sanders, LLC
	constitute notice) to:

	 	600 Peachtree Street, N.E.
	

	 	Suite 5200
	

	 	Atlanta, Georgia 30308
	

	 	Attention: Neal H. Ray, Esq.
	

	 	Facsimile: 404-962-6857

     11.5. Amendments. No amendment or waiver of compliance with any provision hereof or
consent pursuant to this Agreement shall be effective unless evidenced by an instrument in writing
signed by the party against whom enforcement of such amendment, waiver, or consent is sought.

-22-

 

     11.6. Entire Agreement. This Agreement (including the Schedules and Exhibits hereto)
constitutes the entire agreement and understanding among the parties hereto with respect to the
subject matter hereof, and supersedes all prior agreements and understandings with respect to the
subject matter hereof, except the NDA, which shall remain in full force and effect. No party makes
any representation or warranty with respect to the transactions contemplated by this Agreement
except as expressly set forth in this Agreement. Without limiting the generality of the foregoing,
Seller makes no representation or warranty to Buyer with respect to any projections, budgets or
other estimates of the Station’s revenues, expenses or results of operations, or, except as
expressly set forth in Article 2, any other financial or other information made available to Buyer
with respect to the Station.

     11.7. Severability. If any court or governmental authority holds any provision in
this Agreement invalid, illegal or unenforceable under any applicable law, then, so long as no
party is deprived of the benefits of this Agreement in any material respect, this Agreement shall
be construed with the invalid, illegal or unenforceable provision deleted and the validity,
legality and enforceability of the remaining provisions contained herein shall not be affected or
impaired thereby.

     11.8. No Beneficiaries. Nothing in this Agreement expressed or implied is intended or
shall be construed to give any rights to any person or entity other than the parties hereto and
their successors and permitted assigns.

     11.9. Governing Law. The construction and performance of this Agreement shall be
governed by the laws of the State of New York without giving effect to the choice of law provisions
thereof.

     11.10. Neutral Construction. Buyer and Seller agree that this Agreement was
negotiated at arms-length and that the final terms hereof are the product of the parties’
negotiations. This Agreement shall be deemed to have been jointly and equally drafted by Buyer and
Seller, and the provisions hereof should not be construed against a party on the grounds that the
party drafted or was more responsible for drafting the provision.

     11.11. Cooperation. After Closing, Buyer shall cooperate with Seller in the
investigation, defense or prosecution of any action which is pending or threatened against Seller
or its affiliates with respect to the Station, whether or not any party has notified the other of a
claim for indemnity with respect to such matter. Without limiting the generality of the foregoing,
Buyer shall make available its employees to give depositions or testimony and shall furnish all
documentary or other evidence that Seller may reasonably request. Seller shall reimburse Buyer for
all reasonable and necessary out-of-pocket expenses incurred in connection with the performance of
its obligations under this Section 11.11.

     11.12. Counterparts. This Agreement may be executed in separate counterparts, each of
which will be deemed an original and all of which together will constitute one and the same
agreement.

[SIGNATURE PAGE FOLLOWS]

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SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 
	BUYER:

	 	GRAY TELEVISION GROUP, INC.
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	SELLER:

	 	EMMIS TELEVISION BROADCASTING, L.P.
	

	 	By:
	 	Emmis Operating Company, its general partner
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	EMMIS TELEVISION LICENSE, LLC
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:exv10w2

 

Exhibit 10.2

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of August 19, 2005 among Emmis
Television Broadcasting, L.P., an Indiana limited partnership, and Emmis Television License, LLC,
an Indiana limited liability company (collectively, “Seller”), and Journal Broadcast Corporation, a
Nevada corporation (“JBC”), and Journal Broadcast Group, Inc., a Wisconsin corporation and a
wholly-owned subsidiary of JBC (“JBG”) (JBC and JBG, collectively, “Buyer”).

Recitals

     A. Seller owns and operates the following television broadcast stations (each a “Station” and
collectively the “Stations”) pursuant to certain authorizations issued by the Federal
Communications Commission (the “FCC”):

WFTX(TV), Cape Coral, Florida

KMTV(TV), Omaha, Nebraska

KGUN(TV), Tucson, Arizona

     B. Pursuant to the terms and subject to the conditions set forth in this Agreement, Seller
desires to sell to Buyer, and Buyer desires to purchase from Seller, the Station Assets (defined
below).

Agreement

     NOW, THEREFORE, taking the foregoing into account, and in consideration of the mutual
covenants and agreements set forth herein, the parties, intending to be legally bound, hereby agree
as follows:

ARTICLE 1: PURCHASE OF ASSETS

     1.1. Station Assets. On the terms and subject to the conditions hereof, at Closing
(defined below), except as set forth in Sections 1.2 and 1.3, Seller shall sell, assign, transfer,
convey and deliver to Buyer, and Buyer shall purchase and acquire from Seller, all right, title and
interest of Seller in and to all assets and properties of Seller, real and personal, tangible and
intangible, that are used or held for use in the operation of the Stations (the “Station Assets”),
including without limitation the following:

          (a) all licenses, permits and other authorizations issued to Seller by the FCC with respect to
the Stations (the “FCC Licenses”), including those described on Schedule 1.1(a), including any
renewals or modifications thereof between the date hereof and Closing in accordance with Article 4;

          (b) all of Seller’s equipment, transmitters, antennas, cables, towers, vehicles, furniture,
fixtures, spare parts and other tangible personal property of every kind and description that are
used or held for use in the operation of the Stations, including without limitation those listed on
Schedule 1.1(b), except for any retirements or dispositions thereof made between the date hereof
and Closing in the ordinary course of business and in accordance with Article 4 (the “Tangible
Personal Property”);

 

 

          (c) all of Seller’s real property used or held for use in the operation of the Stations
(including any appurtenant easements and improvements located thereon), including without
limitation those listed on Schedule 1.1(c) (the “Real Property”);

          (d) all agreements for the sale of advertising time on the Stations, and all other contracts,
agreements and leases used in the Stations’ business, including without limitation those listed on
Schedule 1.1(d), together with all contracts, agreements and leases made between the date hereof
and Closing in accordance with Article 4 (the “Station Contracts”);

          (e) all of Seller’s rights in and to the Stations’ call letters and Seller’s rights in and to
the trademarks, trade names, service marks, internet domain names, copyrights, programs and
programming material, jingles, slogans, logos, and other intangible property which are used or held
for use in the operation of the Stations, including without limitation those listed on Schedule
1.1(e) (the “Intangible Property”); and

          (f) Seller’s rights in and to all the files, documents, records, and books of account (or
copies thereof) relating to the operation of the Stations, including the Stations’ local public
files, programming information and studies, engineering data, advertising studies, marketing and
demographic data, sales correspondence, lists of advertisers, credit and sales reports, and logs,
but excluding records relating to Excluded Assets (defined below).

     1.2. Excluded Assets. Notwithstanding anything to the contrary contained herein, the
Station Assets shall not include the following assets or any rights, title and interest therein
(the “Excluded Assets”):

          (a) all cash and cash equivalents of Seller, including without limitation certificates of
deposit, commercial paper, treasury bills, marketable securities, money market accounts and all
such similar accounts or investments;

          (b) all tangible and intangible personal property of Seller retired or disposed of between the
date of this Agreement and Closing in accordance with Article 4;

          (c) all Station Contracts that are terminated or expire prior to Closing in accordance with
Article 4;

          (d) Seller’s corporate and trade names unrelated to the operation of the Stations (including
the name “Emmis”), charter documents, and books and records relating to the organization, existence
or ownership of Seller, duplicate copies of the records of the Stations, and all records not
relating to the operation of the Stations;

          (e) all contracts of insurance, all coverages and proceeds thereunder and all rights in
connection therewith, including without limitation rights arising from any refunds due with respect
to insurance premium payments to the extent related to such insurance policies;

          (f) all pension, profit sharing plans and trusts and the assets thereof and any other employee
benefit plan or arrangement and the assets thereof, if any, maintained by Seller;

-2-

 

          (g) the Stations’ accounts receivable and any other rights to payment of cash consideration
(including without limitation all rights to payments under the Stations’ network affiliation
agreements, whether or not offset) for goods or services provided prior to the Effective Time
(defined below) or commencement of the LMA (defined below), as applicable (the “A/R”);

          (h) any computer software and programs used in the operation of the Stations that are not
transferable;

          (i) all rights and claims of Seller, whether mature, contingent or otherwise, against third
parties with respect to the Stations and the Station Assets, to the extent arising during or
attributable to any period prior to the Effective Time;

          (j) all deposits and prepaid expenses (and rights arising therefrom or related thereto),
except to the extent Seller receives a credit therefor under Section 1.7;

          (k) all claims of Seller with respect to any tax refunds;

          (l) computers and other assets located at the Emmis Communications Corporation headquarters,
and the centralized server facility, data links, payroll system and other operating systems and
related assets that are used in the operation of multiple stations; and

          (m) the assets listed on Schedule 1.2, and the slogan “Great Media, Great People, Great
Service.”

     1.3. Shared Assets.

          (a) Some of the Station Contracts may be used in the operation of multiple stations or other
business units (the “Shared Contracts”) and are identified as such on Schedule 1.1(d). The rights
and obligations under the Shared Contracts shall be equitably allocated among stations in a manner
reasonably determined by Seller in accordance with the following equitable allocation principles:

                    (i) any allocation set forth in the Shared Contract shall control;

                    (ii) if none, then any allocation previously made by Seller in the ordinary course of Station
operations shall control;

                    (iii) if none, then the quantifiable proportionate benefit to be received by the parties after
Closing shall control; and

                    (iv) if not quantifiable, then reasonable accommodation shall control.

          (b) Buyer shall cooperate with Seller (and any third party designated by Seller) in such
allocation, and the Station Contracts (and Assumed Obligations (defined below)) will include only
Buyer’s allocated portion of the rights and obligations under the Shared Contracts (without need
for further action and whether such allocation occurs before or after Closing). If designated by
Seller, such allocation will occur by termination of the Shared Contract and execution of new
contracts. Buyer’s allocated portion of the Shared Contracts will not include any group discounts
or similar benefits specific to Seller or its affiliates. Completion of documentation of any such
allocation is not a condition to Closing.

-3-

 

          (c) Seller operates a centralcasting facility serving WKCF (Orlando), WVUE (New Orleans), WFTX
(Cape Coral) and WALA and WBPG (Mobile-Pensacola). Since the Stations include WFTX (Cape Coral),
then the terms set forth on Schedule 1.3 shall apply. Assets used in the operation of such
facility are Excluded Assets. If any Schedule attached hereto includes any such items, then such
items are nonetheless Excluded Assets. If applicable, at Closing, the parties shall enter into the
agreements set forth on Schedule 1.3, in the forms attached hereto as Exhibit 1.3 (or, where
appropriate, the parties shall execute an assignment and assumption agreement with respect to such
agreements).

     1.4. Assumption of Obligations. On the Closing Date (defined below), Buyer shall
assume the obligations of Seller arising during, or attributable to, any period of time on or after
the Closing Date under the Station Contracts and the FCC Licenses, the obligations described in
Section 5.7 and any other liabilities of Seller to the extent, and only to the extent, Buyer
receives a credit therefor under Section 1.7 (collectively, the “Assumed Obligations”). Except for
the Assumed Obligations, Buyer does not assume, and will not be deemed by the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby to have
assumed, any other liabilities or obligations of Seller (the “Retained Obligations”).

     1.5. Purchase Price. In consideration for the sale of the Station Assets to Buyer, at
Closing Buyer shall pay Seller, by wire transfer of immediately available funds, the sum of Two
Hundred Thirty-Five Million Dollars ($235,000,000), subject to adjustment pursuant to Section 1.7
(the “Purchase Price”).

     1.6. Deposit. Within one (1) business day of the date of this Agreement, Buyer shall
make a cash deposit in immediately available funds in an amount equal to 10% of the Purchase Price
(the “Deposit”) with Bank of America (the “Escrow Agent”) pursuant to the Escrow Agreement (the
“Escrow Agreement”) of even date herewith among Buyer, Seller and the Escrow Agent. At Closing,
the Deposit shall be disbursed to Seller and applied to the Purchase Price and any interest accrued
thereon shall be disbursed to Buyer. If this Agreement is terminated by Seller pursuant to Section
10.1(c), the Deposit and any interest accrued thereon shall be disbursed to Seller and credited as
partial payment of liquidated damages under Section 10.5. If this Agreement is terminated for any
other reason, the Deposit and any interest accrued thereon shall be disbursed to Buyer. The
parties shall each instruct the Escrow Agent to disburse the Deposit and all interest thereon to
the party entitled thereto and shall not, by any act or omission, delay or prevent any such
disbursement. Any failure by Buyer to make the Deposit within one (1) business day of the date
hereof constitutes a material default as to which the Cure Period under Section 10.1 does not apply
entitling Seller to immediately terminate this Agreement.

     1.7. Prorations and Adjustments.

          (a) Subject to the LMA (as applicable), all prepaid and deferred income and expenses relating
to the Station Assets and arising from the operation of the Stations shall be prorated between
Buyer and Seller in accordance with accounting principles generally accepted in the United States
(“GAAP”) as of 12:01 a.m. on the day of Closing (the “Effective Time”).

-4-

 

Such prorations shall
include without limitation all ad valorem, real estate and other property taxes (except transfer
taxes as provided by Section 11.1), music and other license fees, employee performance incentives
set forth in employment agreements or annual compensation plans Buyer is assuming hereunder, any
vacation for Transferred Employees (defined below) (except accruals for the fiscal year of Seller
in which Closing occurs for which there shall be no adjustment), utility expenses, rent and other
amounts under Station Contracts and similar prepaid and deferred items. Seller shall receive a
credit for all of the Stations’ deposits and prepaid expenses. Sales commissions related to the
sale of advertisements broadcast on the Stations prior to Closing or commencement of the LMA, as
applicable, shall be the responsibility of Seller, and sales commissions related to the sale of
advertisements broadcast on the Stations after Closing or commencement of the LMA, as applicable,
shall be the responsibility of Buyer.

          (b) With respect to trade, barter or similar agreements for the sale of time for goods or
services (“Barter”) assumed by Buyer pursuant to Section 1.1(d), if at Closing the Stations have an
aggregate negative or positive Barter balance (i.e., the amount by which the value of air time to
be provided by the Stations after the Effective Time exceeds, or conversely, is less than, the fair
market value of corresponding goods and services), there shall be no proration or adjustment,
unless the negative or positive Barter balance of the Stations as an aggregate exceeds $35,000 per
Station, in which event such excess or deficiency, as the case may be, shall be treated either as
prepaid time sales or a receivable of Seller, and adjusted for as a proration in Buyer’s or
Seller’s favor, as applicable. In determining Barter balances, the value of air time shall be
based upon the value of the goods and services provided, and goods and services shall include those
to be received by the Stations after Closing plus those received by the Stations before Closing to
the extent conveyed by Seller to Buyer as a part of the Station Assets.

          (c) No later than three (3) business days prior to the scheduled Closing date, Seller shall
provide Buyer with a statement setting forth a reasonably detailed computation of Seller’s
reasonable and good faith estimate of the Adjustment Amount (defined below) as of Closing (the
“Preliminary Adjustment Report”). As used herein, the “Adjustment Amount” means the net amount by
which the Purchase Price is to be increased or decreased in accordance with this Section 1.7. If
the Adjustment Amount reflected on the Preliminary Adjustment Report is a credit to Buyer, then the
Purchase Price payable at Closing shall be reduced by the amount of the preliminary Adjustment
Amount, and if the Adjustment Amount reflected on the Preliminary Adjustment Report is a charge to
Buyer, then the Purchase Price payable at Closing shall be increased by the amount of such
preliminary Adjustment Amount. For a period of ninety (90) days after Closing, Seller and its
auditors and Buyer and its auditors may review the Preliminary Adjustment Report and the related
books and records of Seller with respect to the Stations, and Buyer and Seller will in good faith
seek to reach agreement on the final Adjustment Amount. If agreement is reached within such 90-day
period, then promptly thereafter Seller shall pay to Buyer or Buyer shall pay to Seller, as the
case may be, an amount equal to the difference between (i) the agreed Adjustment Amount and (ii)
the preliminary Adjustment Amount indicated in the Preliminary Adjustment Report. If agreement is
not reached within such 90-day period, then the dispute resolutions of Section 1.7(d) shall apply.

          (d) If the parties do not reach an agreement on the Adjustment Amount within the 90-day period
specified in Section 1.7(c), then Seller and Buyer shall select an independent accounting firm of
recognized national standing (the “Arbitrating Firm”) to resolve the disputed items. If Seller and
Buyer do not agree on the Arbitrating Firm within five (5) calendar days

-5-

 

after the end of such
90-day period, then the Arbitrating Firm shall be a nationally recognized independent accounting
firm selected by lot (after excluding one firm designated by Seller and one firm designated by
Buyer). Buyer and Seller shall each inform the Arbitrating Firm in writing as to their respective
positions with respect to the Adjustment Amount, and each shall make available to the Arbitrating
Firm any books and records and work papers relevant to the preparation of the Arbitrating Firm’s
computation of the Adjustment Amount. The Arbitrating Firm shall be instructed to complete its
analysis within thirty (30) days from the date of its engagement and upon completion to inform the
parties in writing of its own determination of the Adjustment Amount, the basis for its
determination and whether its determination is within the Mid-Range (defined below) or if not,
whether it is closer to Buyer’s or Seller’s written determination of the Adjustment Amount. Any
determination by the Arbitrating Firm in accordance with this Section shall be final and binding on
the parties. Within five (5) calendar days after the Arbitrating Firm delivers to the parties its
written determination of the Adjustment Amount, Seller shall pay to Buyer, or Buyer shall pay to
Seller, as the case may be, an amount equal to the difference between (i) the Adjustment Amount as
determined by the Arbitrating Firm and (ii) the preliminary Adjustment Amount indicated in the
Preliminary Adjustment Report.

          (e) If the Arbitrating Firm’s determination of the Adjustment Amount is within the Mid-Range,
then Seller and Buyer shall each pay one-half of the fees and disbursements of the Arbitrating Firm
in connection with its analysis. If not, then (i) if the Arbitrating Firm determines that the
written position of Buyer concerning the Adjustment Amount is closer to its own determination, then
Seller shall pay the fees and disbursements of the Arbitrating Firm in connection with its
analysis, or (ii) if the Arbitrating Firm determines that the written position of Seller concerning
the Adjustment Amount is closer to its own determination, then Buyer shall pay the fees and
disbursements of the Arbitrating Firm in connection with its analysis. As used herein, the term
“Mid-Range” means a range that (i) equals twenty percent (20%) of the absolute difference between
the written positions of Buyer and Seller as to the Adjustment Amount and (ii) has a midpoint equal
to the average of such written positions of Buyer and Seller.

          (f) Concurrently with the payment of any amount required to be paid under Section 1.7(c) or
(d), the payor shall pay the payee interest on such amount for the period from the Closing Date
until the date paid at a rate equal to seven percent (7%) per annum. All payments to be made under
Section 1.7 shall be paid by wire transfer in immediately available funds to the account of the
payee at a financial institution in the United States and shall for all purposes constitute an
adjustment to the Purchase Price.

     1.8. Allocation. After Closing, Buyer and Seller will engage a mutually agreeable
appraiser (with the fees and expenses thereof to be equally shared) to allocate the Purchase Price
in accordance with the respective fair market values of the Station Assets and the goodwill being
purchased and sold in accordance with the requirements of Section 1060 of the Internal Revenue Code
of 1986, as amended (the “Code”). Buyer and Seller shall file its federal income tax returns and
its other tax returns reflecting the allocation made by such appraiser pursuant to this Section.

     1.9. Closing. The consummation of the sale and purchase of the Station Assets
provided for in this Agreement (the “Closing”) shall take place on the fifth business day after the

-6-

 

date of the FCC Consent pursuant to the FCC’s initial order (or on such earlier day after such
consent as Buyer and Seller may mutually agree), subject to the satisfaction or waiver of the
conditions set forth in Articles 6 or 7 below. The date on which the Closing is to occur is
referred to herein as the “Closing Date.”

     1.10. Governmental Consents.

          (a) Within five (5) business days of the date of this Agreement, except as provided by Section
1.12, Buyer and Seller shall file an application with the FCC (the “FCC Application”) requesting
FCC consent to the assignment of the FCC Licenses to JBC. FCC consent to the assignment of the
main station and Tucson translator FCC Licenses to JBC is referred to herein as the “FCC Consent.”
Buyer and Seller shall diligently prosecute the FCC Application and otherwise use their
commercially reasonable efforts to obtain the FCC Consent as soon as possible.

          (b) If applicable, within ten (10) business days after the date of this Agreement, Buyer and
Seller shall make any required filings with the Federal Trade Commission and the United States
Department of Justice pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended (the “HSR Act”) with respect to the transactions contemplated hereby (including a request
for early termination of the waiting period thereunder), and shall thereafter promptly respond to
all requests received from such agencies for additional information or documentation. Expiration
or termination of any applicable waiting period under the HSR Act is referred to herein as “HSR
Clearance.”

          (c) Buyer and Seller shall notify each other of all documents filed with or received from any
governmental agency with respect to this Agreement or the transactions contemplated hereby. Buyer
and Seller shall furnish each other with such information and assistance as the other may
reasonably request in connection with their preparation of any governmental filing hereunder. The
FCC Consent and HSR Clearance are referred to herein collectively as the “Governmental Consents.”

     1.11. Renewal. The main station FCC Licenses expire on the dates set forth on
Schedule 1.1(a). If due prior to Closing and if not previously filed, then Seller shall timely
file FCC renewal applications with respect to the Stations and thereafter prosecute such
applications. The parties acknowledge that under current FCC policy, either the FCC will not grant
an assignment application while a renewal application is pending, or the FCC will grant an
assignment application with a renewal condition. If the FCC Application is granted subject to a
renewal condition, then the term “FCC Consent” shall mean FCC consent to the FCC Application and
satisfaction of such renewal condition.

     1.12. Multiple Closings. To comply with the FCC’s multiple ownership rules, prior to
Closing with respect to KMTV (Omaha), Buyer must consummate the divestiture of two or more radio
stations now owned by it that are located in the market in which KMTV is located. Notwithstanding
anything in this Agreement to the contrary:

          (a) the FCC Application shall consist of separate applications (each a “Partial Application”),
one for WFTX and KGUN (the “Primary Application”) which shall be filed at the time provided by
Section 1.10(a), and one for KMTV (the “KMTV Application”) which shall be
 

-7-

 

filed no later than the
date on which the application for FCC consent for the last necessary Omaha radio divestiture is
filed;

          (b) if the Primary Application is granted before the KMTV Application, then the transactions
contemplated by this Agreement shall be consummated in two separate Closings (each a “Partial
Closing”) as follows:

                    (i) at a Closing (the “First Closing”) on the fifth business day after the date of the FCC
Consent with respect to the Primary Application (subject to the satisfaction or waiver of the
applicable conditions set forth in Articles 6 or 7 below), (A) Buyer shall pay Seller the Purchase
Price less $10,000,000, and (B) Seller shall convey to Buyer all Station Assets other than the KMTV
FCC Licenses;

                    (ii) at a second Closing (the “Second Closing”) on the fifth business day after the date of
the FCC Consent with respect to the KMTV Application (subject to the satisfaction or waiver of the
applicable conditions set forth in Articles 6 or 7 below), (A) Buyer shall pay Seller the balance
of the Purchase Price, and (B) Seller shall convey the KMTV FCC Licenses; and

                    (iii) at the First Closing, (A) the Outside Date (defined below) for KMTV shall be extended to
October 15, 2008, provided, however, that if the FCC Consent for KMTV has not been obtained at
least five (5) business days prior to October 15, 2008 due to allegations concerning Seller’s
licensee qualifications, the Outside Date shall automatically be extended until five (5) business
days after the date of the FCC Consent with respect to KMTV, and (B) the parties shall enter into a
local programming and marketing agreement with respect to KMTV (the “LMA”) in the form attached
hereto as Exhibit A, and (C) Buyer shall provide Seller the rent-free use of those KMTV Station
Assets that are necessary for Seller to comply with its obligations under the KMTV FCC Licenses and
the LMA during the term thereof (and, if the LMA term ends without an assignment of the KMTV FCC
Licenses to Buyer, then such facility use term may be extended by Seller for one year thereafter);
and

     (c) taking into account such multiple closings:

                    (i) the terms “Closing,” “Closing Date,” “FCC Application” and “FCC Consent” shall mean, and
refer separately to, the applicable Partial Closing, the date on which such Partial Closing occurs
(or is to occur), the applicable Partial Application, and the applicable partial FCC Consent, each
as the context requires;

                    (ii) with respect to each Partial Closing, the provisions of this Agreement that apply before,
at or after a Closing shall apply before, at or after the applicable Partial Closing;

                    (iii) for purposes of Section 9.2(b), with respect to each Partial Closing, the maximum
liability amount shall be determined based upon the portion of the Purchase Price paid at such
Partial Closing; and

                    (iv) any termination of this Agreement prior to the first Partial Closing shall constitute a
termination of this Agreement in its entirety, but after the first Partial Closing,

-8-

 

any termination
of this Agreement shall constitute a termination only with respect to the Station Assets not
subject to any prior Partial Closing, each Partial Closing and each partial payment of the Purchase
Price being final and non-rescindable; provided, however, that if after the First Closing and
before the Second Closing the main station FCC Licenses for KMTV are revoked or renewal thereof is
denied by Final Order (defined below) other than as a result of a breach or default by Buyer under
the LMA, then the parties will cooperate in good faith to restore the status quo ante as to KMTV,
including but not limited to (a) the reassignment, transfer and conveyance from Buyer to Seller of
the Station Assets relating to KMTV that are still in existence as the same were assigned,
transferred and conveyed to Buyer at the First Closing; (b) the assumption by Seller and the
assignment by Buyer of all liabilities, obligations and commitments of Buyer arising or accruing on
or after the date of termination pursuant to the KMTV Station Contracts included in the reconveyed
assets, which liabilities, obligations and commitments shall be prorated to the effective date of
termination; (c) the offer by Seller of employment to all persons employed by Buyer at KMTV
immediately prior to the effective date of termination upon substantially the same terms and
conditions and with substantially the same duties and benefits as in effect immediately preceding
the effective date of termination; and (d) the repayment by Seller to Buyer of the portion of
Purchase Price that is attributable to KMTV.

ARTICLE 2: SELLER REPRESENTATIONS AND WARRANTIES

     Seller makes the following representations and warranties to Buyer:

     2.1. Organization. Seller is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, and is qualified to do business in each
jurisdiction in which the Station Assets are located. Seller has the requisite power and authority
to execute, deliver and perform this Agreement and all of the other agreements and instruments to
be executed and delivered by Seller pursuant hereto (collectively, the “Seller Ancillary
Agreements”) and to consummate the transactions contemplated hereby.

     2.2. Authorization. The execution, delivery and performance of this Agreement and the
Seller Ancillary Agreements by Seller have been duly authorized and approved by all necessary
action of Seller and do not require any further authorization or consent of Seller. This Agreement
is, and each Seller Ancillary Agreement when made by Seller and the other parties thereto will be,
a legal, valid and binding agreement of Seller enforceable in accordance with its terms, except in
each case as such enforceability may be limited by bankruptcy, moratorium, insolvency,
reorganization or other similar laws affecting or limiting the enforcement of creditors’ rights
generally and except as such enforceability is subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

     2.3. No Conflicts. Except as set forth on Schedule 2.3 and except for the
Governmental Consents and consents to assign certain of the Station Contracts, the execution,
delivery and performance by Seller of this Agreement and the Seller Ancillary Agreements and the
consummation by Seller of any of the transactions contemplated hereby does not conflict with any
organizational documents of Seller or any law, judgment, order, or decree to which Seller is
subject, or require the consent or approval of, or a filing by Seller with, any governmental or
regulatory authority or any third party.

-9-

 

     2.4. FCC Licenses. Except as set forth on Schedule 1.1(a):

          (a) Seller is the holder of the FCC Licenses described on Schedule 1.1(a). Seller has
delivered true and complete copies of the main station and Tucson translator FCC Licenses to Buyer.
The FCC Licenses are in full force and effect and have not been revoked, suspended, canceled,
rescinded or terminated and have not expired. The issuance by the FCC of each of the main station
and Tucson translator FCC Licenses are Final Orders. “Final Order” means an action by the FCC (i)
that has not been vacated, reversed, stayed, enjoined, set aside, annulled or suspended, (ii) with
respect to which no request for stay, motion or petition for rehearing, reconsideration or review,
or application or request for review or notice of appeal or sua sponte review by the FCC is
pending, and (iii) as to which the time for filing any such request, motion, petition, application,
appeal or notice, and for the entry of orders staying, reconsidering or reviewing on the FCC’s own
motion has expired.

          (b) Other than matters affecting the television industry generally, Seller has no reason to
believe that the FCC will not renew the FCC Licenses in the ordinary course. There is not pending
any action by or before the FCC to revoke, suspend, cancel, rescind or materially adversely modify
any of the FCC Licenses (other than proceedings to amend FCC rules of general applicability).
There is not issued or outstanding, by or before the FCC, any order to show cause, notice of
violation, notice of apparent liability, or order of forfeiture against the Stations or against
Seller with respect to the Stations that could result in any such action. Except as disclosed on
Schedule 1.1(a), Seller has no knowledge of any petition, complaint, proceeding or other action
pending or threatened at the FCC that materially adversely affects the Stations, other than
proceedings affecting the broadcast television industry generally. The Stations are operating in
compliance in all material respects with the FCC Licenses, the Communications Act of 1934, as
amended (the “Communications Act”), and the rules, regulations and policies of the FCC.

          (c) As of the date of this Agreement, Seller has no applications before the FCC relating to
the operation of the Stations.

          (d) Each Station has been assigned a channel by the FCC for the provision of digital
television (“DTV”) service, and the FCC Licenses include such authorization. The Stations are
broadcasting the DTV signal in accordance with such authorization in all material respects.

          (e) Seller does not hold any of the FCC Licenses pursuant to any waiver of any FCC rule,
regulation or policy, and there are no matters related to Seller which might reasonably be expected
to result in the FCC’s denial or delay of approval of the FCC Application.

     2.5. Taxes. Seller has, in respect of the Stations’ business, filed all foreign,
federal, state, county and local income, excise, property, sales, use, franchise and other tax
returns and reports which are required to have been filed by it under applicable law, and has paid
all taxes which have become due pursuant to such returns or pursuant to any assessments which have
become payable.

-10-

 

     2.6. Personal Property. Schedule 1.1(b) contains a list of material items of Tangible
Personal Property included in the Station Assets, subject to Section 1.3(c). Except as set forth
on Schedule 1.1(b), Seller has title to the Tangible Personal Property free and clear of liens,
claims and encumbrances (“Liens”) other than Permitted Liens (defined below). Except as set forth
on Schedule 1.1(b), all material items of Tangible Personal Property are in normal operating
condition, ordinary wear and tear excepted. As used herein, “Permitted Liens” means, collectively,
the Assumed Obligations, the shared use arrangements described in Section 1.3, liens for taxes not
yet due and payable, liens that will be released at or prior to Closing, and such other easements,
rights of way, building and use restrictions, exceptions, reservations and limitations that do not
in any material respect detract from the value of the property subject thereto or impair the use
thereof in the ordinary course of the business of the Stations.

     2.7. Real Property. Schedule 1.1(c) contains a description of all Real Property
included in the Station Assets, subject to Section 1.3(c). Seller has fee simple title to the
owned Real Property described on Schedule 1.1(c) (the “Owned Real Property”) free and clear of
Liens other than Permitted Liens and except as set forth on Schedule 1.1(c). Schedule 1.1(c)
includes a description of each lease of Real Property or similar agreement included in the Station
Contracts (the “Real Property Leases”). To Seller’s knowledge, the Real Property is not subject to
any suit for condemnation or other taking by any public authority.

     2.8. Contracts. Except as set forth on Schedule 1.1(d), each of the Station Contracts
(including without limitation each of the Real Property Leases) is in effect and is binding upon
Seller and, to Seller’s knowledge, the other parties thereto (subject to bankruptcy, insolvency,
reorganization or other similar laws relating to or affecting the enforcement of creditors’ rights
generally). Seller has performed its obligations under each of the Station Contracts in all
material respects, and is not in material default thereunder, and to Seller’s knowledge, no other
party to any of the Station Contracts is in default thereunder in any material respect.

     2.9. Environmental. Except as set forth on Schedule 1.1(c) or in any Phase I (defined
below), to Seller’s knowledge:

          (a) No hazardous or toxic substance or waste regulated under any applicable environmental,
health or safety law has been generated, stored, transported, discharged, released, or disposed of
at, on, in, from, or to the owned or ground leased Real Property, or, to Seller’s knowledge, the
other Real Property, other than in compliance in all material respects with applicable
environmental, health or safety laws.

          (b) Seller has complied in all material respects and is in compliance in all material respects
with all environmental, health and safety laws applicable to the Stations. Seller has not been
threatened with, received notice of and is not subject to any decree, judgment, order, citation,
claim, complaint or demand based on any alleged violation of or liability under applicable
environmental laws with respect to the Real Property and/or the operations of the Station Assets.

          (c) To Seller’s knowledge, there are no underground storage tanks on the Owned Real Property
or used in the operations of the Station Assets.

-11-

 

     2.10. Intangible Property. Schedule 1.1(e) contains a description of the material
Intangible Property included in the Station Assets. Except as set forth on Schedule 1.1(e), to
Seller’s knowledge, Seller’s use of the Intangible Property does not infringe upon any third party
rights in any material respect. Except as set forth on Schedule 1.1(e), Seller owns or has the
right to use the Intangible Property free and clear of Liens other than Permitted Liens.

     2.11. Employees. Except as set forth on Schedule 2.11, (i) Seller has complied in all
material respects with all labor and employment laws, rules and regulations applicable to the
Stations’ business, including without limitation those which relate to prices, wages, hours,
discrimination in employment and collective bargaining, and (ii) there is no unfair labor practice
charge or complaint against Seller in respect of the Stations’ business pending or to Seller’s
knowledge threatened before the National Labor Relations Board, any state labor relations board or
any court or tribunal, and there is no strike, dispute, request for representation, slowdown or
stoppage pending or threatened in respect of the Stations’ business.

     2.12. Insurance. Seller maintains insurance policies or other arrangements with
respect to the Stations and the Station Assets consistent with its practices for other stations,
and will maintain such policies or arrangements until the Effective Time.

     2.13. Compliance with Law. Except as set forth on Schedule 2.13, (i) Seller has
complied in all material respects with all laws, rules and regulations, and all decrees and orders
of any court or governmental authority which are applicable to the operation of the Stations, and
(ii) Seller has received no written notice of any pending governmental claims or investigations
and, to Seller’s knowledge, there are no governmental claims or investigations pending or
threatened against Seller, in each case in respect of the Stations, except those affecting the
industry generally.

     2.14. Litigation. Except as set forth on Schedule 2.14, there is no action, suit or
proceeding pending or, to Seller’s knowledge, threatened against Seller in respect of the Stations
that will subject Buyer to liability or which will affect Seller’s ability to perform its
obligations under this Agreement.

     2.15. Financial Statements. Seller has provided to Buyer copies of its statements of
operations for the Stations for the years ended February 29, 2004 and February 28, 2005. Such
statements are the statements included in the audited consolidated financial statements of Seller
and its affiliates (but such statements are not separately audited). Such statements have been
prepared in accordance with GAAP consistently applied and in the aggregate present fairly in all
material respects the results of operations of the Stations as operated by Seller for the
respective periods covered thereby, except that (i) shared operating expenses (if applicable) are
allocated among the Stations as determined by Seller, and (ii) such statements do not include
income tax expense or benefit, interest income and expense, disclosures required by GAAP in notes
accompanying the financial statements, retiree benefit expense (pension, health insurance, etc.),
non-cash compensation expenses associated with the discount given to employees on stock purchases,
certain revenues and expenses associated with operating the Stations as a group and expenses
attributable to the adoption of accounting pronouncements.

     2.16. Station Assets. The Station Assets include all assets and properties, and all
leases, licenses and other agreements, which are necessary to permit Buyer to carry on, or are
currently used or held for use in, the business of the Stations as presently conducted, except for
the Excluded Assets.

12

 

ARTICLE 3: BUYER REPRESENTATIONS AND WARRANTIES

     Buyer hereby makes the following representations and warranties to Seller:

     3.1. Organization. Buyer is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, and is (or if not required until Closing,
as of Closing will be) qualified to do business in each jurisdiction in which the Station Assets
are located. Buyer has the requisite power and authority to execute, deliver and perform this
Agreement and all of the other agreements and instruments to be executed and delivered by Buyer
pursuant hereto (collectively, the “Buyer Ancillary Agreements”) and to consummate the transactions
contemplated hereby.

     3.2. Authorization. The execution, delivery and performance of this Agreement and the
Buyer Ancillary Agreements by Buyer have been duly authorized and approved by all necessary action
of Buyer and do not require any further authorization or consent of Buyer. This Agreement is, and
each Buyer Ancillary Agreement when made by Buyer and the other parties thereto will be, a legal,
valid and binding agreement of Buyer enforceable in accordance with its terms, except in each case
as such enforceability may be limited by bankruptcy, moratorium, insolvency, reorganization or
other similar laws affecting or limiting the enforcement of creditors’ rights generally and except
as such enforceability is subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     3.3. No Conflicts. Except for the Governmental Consents, the execution, delivery and
performance by Buyer of this Agreement and the Buyer Ancillary Agreements and the consummation by
Buyer of any of the transactions contemplated hereby does not conflict with any organizational
documents of Buyer or any law, judgment, order or decree to which Buyer is subject, or require the
consent or approval of, or a filing by Buyer with, any governmental or regulatory authority or any
third party.

     3.4. Litigation. There is no action, suit or proceeding pending or, to Buyer’s
knowledge, threatened against Buyer which questions the legality or propriety of the transactions
contemplated by this Agreement or could materially adversely affect the ability of Buyer to perform
its obligations hereunder.

     3.5. Qualification. Except as set forth in Section 1.12 with respect to KMTV (Omaha),
Buyer is legally, financially and otherwise qualified to be the licensee of, acquire, own and
operate the Stations under the Communications Act and the rules, regulations and policies of the
FCC; there are no facts that would, under existing law and the existing rules, regulations,
policies and procedures of the FCC, disqualify Buyer as an assignee of the FCC Licenses or as the
owner and operator of the Stations; no waiver of or exemption from any FCC rule or policy is
necessary for the FCC Consent to be obtained; and there are no matters related to Buyer which might
reasonably be expected to result in the FCC’s denial or delay of approval of the FCC Application.

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ARTICLE 4: SELLER COVENANTS 

     4.1. Seller’s Covenants. Between the date hereof and Closing, except as contemplated
by Schedule 1.3 and subject to the LMA (as applicable), and except as permitted by this Agreement
or with the prior written consent of Buyer, which shall not be unreasonably withheld, delayed or
conditioned, Seller shall:

          (a) operate the Stations in the ordinary course of business and in all material respects in
accordance with FCC rules and regulations and with all other applicable laws, regulations, rules
and orders;

          (b) not materially adversely modify any of the FCC Licenses, or take any action or fail to
take any action if such action or failure to act would result in a materially adverse modification
to any of the FCC Licenses;

          (c) not other than in the ordinary course of business, sell, lease or dispose of or agree to
sell, lease or dispose of any of the Station Assets unless replaced with similar items of
substantially equal or greater value and utility, or create, assume or permit to exist any Liens
upon the Station Assets, except for Permitted Liens;

          (d) upon reasonable notice, give Buyer reasonable access during normal business hours to the
Station Assets for purposes of, among other things, installing equipment relating to certain master
control functions and traffic systems, transferring certain traffic information and the training of
traffic staff, and furnish Buyer with information relating to the Station Assets that Buyer may
reasonably request, provided that such access rights shall not be exercised in a manner that
unreasonably interferes with the operation of the Stations;

          (e) provide Buyer copies of internal monthly statements of operations regarding the Stations
on an unconsolidated basis promptly after generation by Seller and in the form generated by Seller
and any other financial information for the Stations reasonably requested by Buyer;

          (f) except in the ordinary course of business and as otherwise required by law, (i) not enter
into any employment, labor, or union agreement or plan (or amendments of any such existing
agreements or plan) that will be binding upon Buyer after Closing or (ii) increase the compensation
payable to any employee of the Stations, except for bonuses and other compensation payable by
Seller in connection with the consummation of the transactions contemplated by this Agreement; and

          (g) not, other than in the ordinary course of business, enter into new Station Contracts or
amend any existing Station Contracts, except that Seller shall, prior to Closing, use commercially
reasonable efforts (with no obligation to succeed) to extend (i) the Fox network affiliation
agreement for WFTX (Cape Coral) for a period of no less than two (2) years from the current
expiration date thereof and on terms no more onerous to Buyer than are the terms to Seller or WFTX
under the existing Fox network affiliation agreement and (ii) the CBS network affiliation agreement
for KMTV (Omaha) for a period of no less than two (2) years from the current expiration date
thereof and on terms no more onerous to Buyer than are the terms to Seller or KMTV under the
existing CBS network affiliation agreement.

-14-

 

ARTICLE 5: JOINT COVENANTS

     Buyer and Seller hereby covenant and agree as follows:

     5.1. Confidentiality. Seller (or The Blackstone Group, LLC on behalf of Seller) and
Buyer (or an affiliate of Buyer on behalf of Buyer) are parties to a non-disclosure agreement with
respect to Seller and its television stations (the “NDA”). To the extent not already a direct
party thereto, Seller and Buyer hereby assume the NDA and agree to be bound by the provisions
thereof. Without limiting the terms of the NDA, subject to the requirements of applicable law, all
non-public information regarding the parties and their business and properties that is disclosed in
connection with the negotiation, preparation or performance of this Agreement (including without
limitation all financial information provided by Seller to Buyer) shall be confidential and shall
not be disclosed to any other person or entity, except in accordance with the terms of the NDA.

     5.2. Announcements. Prior to Closing, no party shall, without the prior written
consent of the other, issue any press release or make any other public announcement concerning the
transactions contemplated by this Agreement, except to the extent that such party is so obligated
by law, in which case such party shall give advance notice to the other.

     5.3. Control. Buyer shall not, directly or indirectly, control, supervise or direct
the operation of the Stations prior to Closing. Consistent with the Communications Act and the FCC
rules and regulations, control, supervision and direction of the operation of the Stations prior to
Closing shall remain the responsibility of Seller as the holder of the FCC Licenses.

     5.4. Risk of Loss.

          (a) Seller shall bear the risk of any loss of or damage to any of the Station Assets at all
times until the Effective Time, and Buyer shall bear the risk of any such loss or damage
thereafter.

          (b) If prior to the Effective Time any item of Tangible Personal Property is damaged or
destroyed or otherwise not in the condition described in Section 2.6 in any material respect, then:

                    (i) Seller shall use commercially reasonable efforts to repair or replace such item in all
material respects in the ordinary course of business,

                    (ii) Seller’s representations and warranties, and Buyer’s pre-Closing termination rights and
post-Closing indemnification rights, are hereby modified to take into account any such condition,
and

                    (iii) if such repair or replacement is not completed prior to Closing, then as Buyer’s sole
remedy, the parties shall proceed to Closing and Seller shall repair or replace such item in all
material respects after Closing (and Buyer will provide Seller access and any other reasonable
assistance requested by Seller with respect to such obligation, provided that such access and
assistance shall not be exercised in a manner that unreasonably interferes with the operation of
the Stations).

-15-

 

          (c) If a Station is off the air prior to Closing, then Seller shall use commercially
reasonable efforts to return the Station to the air as promptly as practicable in the ordinary
course of business. Notwithstanding anything herein to the contrary, if on the day otherwise
scheduled for Closing a Station is off the air or an analog main station or Tucson translator is
operating with a material reduction in coverage, then Closing shall be postponed until the date
five (5) business days after the Station returns to the air and, if applicable, such coverage is
substantially corrected, subject to Section 10.1.

     5.5. Environmental.

          (a) Seller has provided Buyer with copies of Phase I environmental assessments of certain Real
Property sites as shown on Schedule 1.1(c), if any (each a “Phase I”). Buyer shall not conduct
further environmental assessments of any Real Property prior to Closing.

          (b) One of the Phase I’s identified the item set forth on Schedule 1.1(c). With respect to
such item:

                    (i) Seller shall use commercially reasonable efforts to remediate such item in all material
respects in the ordinary course of business and in accordance with all applicable environmental
laws,

                    (ii) Seller’s representations and warranties, and Buyer’s pre-Closing termination rights and
post-Closing indemnification rights, are hereby modified to take into account such item, and

                    (iii) if such remediation is not completed prior to Closing, then as Buyer’s sole remedy, the
parties shall proceed to Closing and Seller shall remediate such item in all material respects and
in accordance with all applicable environmental laws as soon as reasonably practical after Closing
(and Buyer will provide Seller access and any other reasonable assistance requested by Seller with
respect to such obligation, provided that such access and assistance shall not be exercised in a
manner that unreasonably interferes with the operation of the Stations).

     5.6. Consents.

          (a) The parties shall use commercially reasonable efforts to obtain (i) any third party
consents necessary for the assignment of any Station Contract (which shall not require any payment
to any such third party), and (ii) execution of reasonable estoppel certificates by lessors under
any Real Property Leases requiring consent to assignment (if any), but no such consents or estoppel
certificates are conditions to Closing except for the Required Consents (defined below). Receipt
of consent to assign to JBG the WFTX (Cape Coral) and KMTV (Omaha) network affiliation agreements
without any material adverse conditions and the Stations’ main tower leases designated with a
diamond on Schedule 1.1(c) (if any) is a condition precedent to Buyer’s obligation to close under
this Agreement (the “Required Consents”).

          (b) To the extent that any Station Contract may not be assigned without the consent of any
third party, and such consent is not obtained prior to Closing, this Agreement and any assignment
executed pursuant to this Agreement shall not constitute an assignment of such Station Contract;
provided, however, with respect to each such Station Contract, Seller and Buyer shall cooperate to
the extent feasible in effecting a lawful and commercially reasonable

-16-

 

arrangement under which Buyer
shall receive the benefits under the Station Contract from and after Closing, and to the extent of
the benefits received, Buyer shall pay and perform Seller’s obligations arising under the Station
Contract from and after Closing in accordance with its terms.

     5.7. Employees.

          (a) For a period of two (2) years from the date of this Agreement, Buyer shall not, without
the prior written consent of Seller, solicit for employment or induce or attempt to induce to leave
Seller’s or an affiliate of Seller’s employ, any employees of Seller or its affiliates staffed in
Seller’s Indianapolis headquarters or at any other television station owned by Seller or its
affiliates (other than general solicitations not directed solely to any such employees).

          (b) If the Stations include any stations identified in Section 1.3(c) or 1.3(d), then any
shared employees shall be allocated as set forth on Schedule 1.3. With respect to such shared
employees, the terms of this Section 5.7 shall apply only to those who are allocated to Buyer
pursuant to Schedule 1.3, and Buyer shall not solicit for employment those who are not allocated to
Buyer (other than general solicitations not directed solely to any such employees).

          (c) Seller has provided Buyer a list showing employee positions and annualized pay rates for
employees of the Stations. Except as provided by Section 5.7(b), Buyer shall offer employment to
all persons employed by Seller immediately prior to Closing (or commencement of the LMA, as
applicable) (including any hired after the date hereof in the ordinary course of business or in
connection with any bifurcation of operations contemplated by Schedule 1.3) upon substantially the
same terms and conditions and with substantially the same duties and benefits as in effect
immediately preceding the Closing, including but not limited to wages, salaries, commission rate
(if applicable) and target bonuses (all determined on a cash basis before taking into account
Seller’s stock compensation program). With respect to each employee who accepts such offer
(collectively, the “Transferred Employees”), at Closing employment with Seller shall terminate and
employment with Buyer shall commence, and Buyer shall retain each such employee on such terms for a
period of not less than one (1) year after Closing, unless terminated for cause. Without limiting
the foregoing, with respect to any Transferred Employee, Buyer shall be responsible for any
applicable severance in accordance with Seller’s severance policy (a copy of which has been
provided to Buyer).

          (d) With respect to Transferred Employees, Seller shall be responsible for all compensation
and benefits arising prior to the Effective Time, and Buyer shall be responsible for all
compensation and benefits arising after the Effective Time. Notwithstanding anything herein to the
contrary, Buyer shall grant credit to each Transferred Employee for all unused vacation accrued as
of the Effective Time as an employee of Seller, and Buyer shall assume and discharge Seller’s
obligation to provide such leave to such employees (such obligations being a part of the Assumed
Obligations).

          (e) Buyer shall permit Transferred Employees (and their spouses and dependents) to participate
in its “employee welfare benefit plans” (including without limitation health insurance plans) and
“employee pension benefit plans” (as defined in Section 3(1) and 3(2) of ERISA, respectively) in
which similarly situated employees are generally eligible to participate, with coverage effective
immediately upon Closing (and without exclusion from

17

 

overage on account of any pre-existing
condition), with service with Seller deemed service with the Buyer for purposes of any length of
service requirements, waiting periods, vesting periods and differential benefits based on length of
service, and with credit under any welfare benefit plan for any deductibles or co-payments paid for
the current plan year under any plan maintained by Seller.

          (f) Buyer shall also permit each Transferred Employee who participates in the Seller’s 401(k)
plan to elect to make direct rollovers of their account balances into the Buyer’s 401(k) plan as of
Closing, including the direct rollover of any outstanding loan balances such that they will
continue to make payments under the terms of such loans under the Buyer’s 401(k) plan, subject to
compliance with applicable law and subject to the reasonable requirements of Buyer’s 401(k) plan.

     5.8. Accounting Services.

          (a) For a period of one hundred twenty (120) days after Closing or commencement of the LMA, as
applicable (the “Collection Period”), Buyer shall, without charge to Seller, use commercially
reasonable efforts to collect the A/R in the ordinary course of business and shall apply all
amounts collected from the Stations’ account debtors to the invoice specified by the account
debtor, provided that, to the extent no such specification is made by the account debtor, such
amounts collected shall be applied to the oldest, undisputed account of such debtor. Any amounts
relating to the A/R that are paid directly to Seller shall be retained by Seller. Buyer shall not
discount, adjust or otherwise compromise any A/R and Buyer shall refer any disputed A/R to Seller.
Within ten calendar days after the end of each month, Buyer shall deliver to Seller a report
showing A/R collections for the prior month and Buyer shall make a payment, without offset, to
Seller equal to the amount of all such collections. At the end of the Collection Period, any
remaining A/R shall be returned to Seller for collection.

          (b) During the first fifteen (15) business days after Closing, Buyer shall provide to Seller
at no additional cost the services of the Stations’ business offices, together with reasonable
access to related systems and records, for the purposes of closing the books of the Stations for
the period prior to Closing and of facilitating the distribution of any stock compensation from
Seller to the Stations’ employees, all in accordance with the procedures and practices applied by
the business offices for periods prior to Closing.

     5.9. 1031 Exchange. To facilitate a like-kind exchange under Section 1031 of the
Code, Seller may assign its rights under this Agreement (in whole or in part) to a “qualified
intermediary” under section 1.1031(k)-1(g)(4) of the treasury regulations (but such assignment
shall not relieve Seller of its obligations under this Agreement) and any such qualified
intermediary may re-assign to Seller. If Seller gives notice of such assignment, Buyer shall
provide Seller with a written acknowledgment of such notice prior to Closing and pay the Purchase
Price (or such portion thereof as is designated in writing by the qualified intermediary) to or on
behalf of the qualified intermediary at Closing and otherwise reasonably cooperate therewith.

     5.10. ABC Affiliation. Buyer acknowledges that the ABC network affiliation for KGUN
(Tucson) consists only of a term sheet and not a long-form network affiliation agreement and that
Seller has no obligation to negotiate or execute a long-form network affiliation agreement for
KGUN. No ABC consent is a condition to Closing under this Agreement.

-18-

 

ARTICLE 6: SELLER CLOSING CONDITIONS 

     The obligation of Seller to consummate the Closing hereunder is subject to satisfaction, at or
prior to Closing, of each of the following conditions (unless waived in writing by Seller):

     6.1. Representations and Covenants.

          (a) The representations and warranties of Buyer made in this Agreement, shall be true and
correct in all material respects as of the Closing Date except for changes permitted or
contemplated by the terms of this Agreement.

          (b) The covenants and agreements to be complied with and performed by Buyer at or prior to
Closing shall have been complied with or performed in all material respects.

          (c) Seller shall have received a certificate dated as of the Closing Date from Buyer executed
by an authorized officer of Buyer to the effect that the conditions set forth in Sections 6.1(a)
and (b) have been satisfied.

     6.2. Proceedings. Neither Seller nor Buyer shall be subject to any court or
governmental order or injunction restraining or prohibiting the consummation of the transactions
contemplated hereby.

     6.3. FCC Authorization. The FCC Consent shall have been obtained.

     6.4. Hart Scott Rodino. If applicable, the HSR Clearance shall have been obtained.

     6.5. Deliveries. Buyer shall have complied with its obligations set forth in Section
8.2.

ARTICLE 7: BUYER CLOSING CONDITIONS 

     The obligation of Buyer to consummate the Closing hereunder is subject to satisfaction, at or
prior to Closing, of each of the following conditions (unless waived in writing by Buyer):

     7.1. Representations and Covenants.

          (a) The representations and warranties of Seller made in this Agreement shall be true and
correct in all material respects as of the Closing Date except for Section 2.9 and changes
permitted or contemplated by the terms of this Agreement.

          (b) The covenants and agreements to be complied with and performed by Seller at or prior to
Closing shall have been complied with or performed in all material respects except for Section 5.5.

          (c) Buyer shall have received a certificate dated as of the Closing Date from Seller executed
by an authorized officer of Seller to the effect that the conditions set forth in Sections 7.1(a)
and (b) have been satisfied.

-19-

 

     7.2. Proceedings. Neither Seller nor Buyer shall be subject to any court or
governmental order or injunction restraining or prohibiting the consummation of the transactions
contemplated hereby.

     7.3. FCC Authorization. The FCC Consent shall have been obtained.

     7.4. Hart Scott Rodino. If applicable, the HSR Clearance shall have been obtained.

     7.5. Deliveries. Seller shall have complied with its obligations set forth in Section
8.1.

     7.6. Consents. The Required Consents shall have been obtained.

ARTICLE 8: CLOSING DELIVERIES

     8.1. Seller Documents. At Closing, Seller shall deliver or cause to be delivered to
Buyer:

          (i) good standing certificates issued by the Secretary of State of Seller’s jurisdiction of
formation;

          (ii) certified copies of resolutions authorizing the execution, delivery and performance of
this Agreement, including the consummation of the transactions contemplated hereby;

          (iii) the certificate described in Section 7.1(c);

          (iv) an assignment of FCC authorizations assigning the FCC Licenses from Seller to JBC;

          (v) an assignment and assumption of contracts assigning the Station Contracts from Seller to
JBG;

          (vi) an assignment and assumption of leases assigning the Real Property Leases (if any) from
Seller to JBG;

          (vii) special warranty deeds conveying the Owned Real Property (if any) from Seller to JBG;

          (viii) an assignment of marks assigning the Stations’ registered marks listed on Schedule
1.1(e) (if any) from Seller to JBG;

          (ix) domain name transfers assigning the Stations’ domain names listed on Schedule 1.1(e) (if
any) from Seller to JBG;

          (x) endorsed vehicle titles conveying the vehicles included in the Tangible Personal Property
(if any) from Seller to JBG;

          (xi) a bill of sale conveying the other Station Assets from Seller to JBG;

          (xii) the LMA; and

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          (xiii) any other instruments of conveyance, assignment and transfer that may be reasonably
necessary to convey, transfer and assign the Station Assets from Seller to Buyer, free and clear of
Liens, except for Permitted Liens.

     8.2. Buyer Documents. At Closing, Buyer shall deliver or cause to be delivered to
Seller:

          (i) the Purchase Price in accordance with Section 1.5 hereof;

          (ii) good standing certificates issued by the Secretary of State of Buyer’s jurisdiction of
formation;

          (iii) certified copies of resolutions authorizing the execution, delivery and performance of
this Agreement, including the consummation of the transactions contemplated hereby;

          (iv) the certificate described in Section 6.1(c);

          (v) an assignment and assumption of contracts assuming the Station Contracts;

          (vi) an assignment and assumption of leases assuming the Real Property Leases (if any);

          (vii) domain name transfers assuming the Stations’ domain names listed on Schedule 1.1(e) (if
any);

          (viii) the agreements in the form of Exhibit 1.3 hereto, if applicable, and any agreements
required in connection therewith;

          (ix) the LMA; and

          (x) such other documents and instruments of assumption that may be necessary to assume the
Assumed Obligations.

ARTICLE 9: SURVIVAL; INDEMNIFICATION

     9.1. Survival. The representations and warranties in this Agreement shall survive
Closing for a period of twelve (12) months from the Closing Date whereupon they shall expire and be
of no further force or effect, except that (a) representations and warranties set forth in Section
2.9 shall survive for a period of five (5) years from the Closing Date whereupon they shall expire
and be of no further force or effect and (b) if within such period the indemnified party gives the
indemnifying party written notice of a claim for breach thereof describing in reasonable detail the
nature and basis of such claim, then such claim shall survive until the earlier of resolution of
such claim or expiration of the applicable statue of limitations. The covenants and agreements in
this Agreement shall survive Closing until performed.

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     9.2. Indemnification.

          (a) Subject to Section 9.2(b), from and after Closing, Seller shall defend, indemnify and hold
harmless Buyer from and against any and all losses, costs, damages, liabilities and expenses,
including reasonable attorneys’ fees and expenses (“Damages”) incurred by Buyer arising out of or
resulting from:

                    (i) any breach by Seller of its representations and warranties made under this Agreement,
except those made in Section 2.9; or

                    (ii) any default by Seller of any covenant or agreement made under this Agreement, except
those made in Section 5.5; or

                    (iii) any default by Seller of the representations and warranties made under Section 2.9 or
the covenants or agreements made under Section 5.5; or

                    (iv) the Retained Obligations; or

                    (v) the business or operation of the Stations before the Effective Time.

          (b) Notwithstanding the foregoing or anything else herein to the contrary, after Closing, (i)
Seller shall have no liability to Buyer under clauses (i) and (ii) of Section 9.2(a) until, and
only to the extent that, Buyer’s aggregate Damages exceed $500,000 per Station; (ii) the maximum
liability of Seller under clauses (i) and (ii) of Section 9.2(a) shall be an amount equal to 20% of
the Purchase Price; and (iii) the maximum liability of Seller under clause (iii) of Section 9.2(a)
shall be an amount equal to $5,000,000 less the amount of Seller’s remediation costs under Section
5.5(b).

          (c) From and after Closing, Buyer shall defend, indemnify and hold harmless Seller from and
against any and all Damages incurred by Seller arising out of or resulting from:

                    (i) any breach by Buyer of its representations and warranties made under this Agreement; or

                    (ii) any default by Buyer of any covenant or agreement made under this Agreement; or

                    (iii) the Assumed Obligations; or

                    (iv) the business or operation of the Stations after the Effective Time.

     9.3.
Procedures.

          (a) The indemnified party shall give prompt written notice to the indemnifying party of any
demand, suit, claim or assertion of liability by third parties that is subject to indemnification
hereunder (a “Claim”), but a failure to give such notice or delaying such notice shall not affect
the indemnified party’s rights or the indemnifying party’s obligations except to the extent the
indemnifying party’s ability to remedy, contest, defend or settle with respect to such Claim is
thereby prejudiced and provided that such notice is given within the time period described in
Section 9.1, if applicable.

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          (b) The indemnifying party shall have the right to undertake the defense or opposition to such
Claim with counsel selected by it. In the event that the indemnifying party does not undertake
such defense or opposition in a timely manner, the indemnified party may undertake the defense,
opposition, compromise or settlement of such Claim with counsel selected by it at the indemnifying
party’s cost (subject to the right of the indemnifying party to assume defense of or opposition to
such Claim at any time prior to settlement, compromise or final determination thereof).

          (c) Anything herein to the contrary notwithstanding:

                    (i) the indemnified party shall have the right, at its own cost and expense, to participate
in the defense, opposition, compromise or settlement of the Claim;

                    (ii) the indemnifying party shall not, without the indemnified party’s written consent,
settle or compromise any Claim or consent to entry of any judgment which does not include the
giving by the claimant to the indemnified party of a release from all liability in respect of such
Claim; and

                    (iii) in the event that the indemnifying party undertakes defense of or opposition to any
Claim, the indemnified party, by counsel or other representative of its own choosing and at its
sole cost and expense, shall have the right to consult with the indemnifying party and its counsel
concerning such Claim and the indemnifying party and the indemnified party and their respective
counsel shall cooperate in good faith with respect to such Claim.

ARTICLE 10: TERMINATION AND REMEDIES

     10.1. Termination. Subject to Section 10.3, this Agreement may be terminated prior to
Closing as follows:

          (a) by mutual written consent of Buyer and Seller;

          (b) by written notice of Buyer to Seller if Seller breaches its representations or warranties
or defaults in the performance of its covenants contained in this Agreement and such breach or
default is material in the context of the transactions contemplated hereby and is not cured within
the Cure Period (defined below);

          (c) by written notice of Seller to Buyer if Buyer breaches its representations or warranties
or defaults in the performance of its covenants contained in this Agreement and such breach or
default is material in the context of the transactions contemplated hereby and is not cured within
the Cure Period; provided, however, that the Cure Period shall not apply to Buyer’s obligations to
make the Deposit within one (1) business day of the date hereof and to pay the Purchase Price at
Closing; or

          (d) by written notice of Seller to Buyer or Buyer to Seller if Closing does not occur by May
31, 2006 (the “Outside Date”), except as provided by Section 1.12.

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     10.2. Cure Period. Each party shall give the other party prompt written notice upon
learning of any breach or default by the other party under this Agreement. The term “Cure Period”
as used herein means a period commencing on the date Buyer or Seller receives from the other
written notice of breach or default hereunder and continuing until the earlier of (i) twenty (20)
calendar days thereafter or (ii) five (5) business days after the scheduled Closing date; provided,
however, that if the breach or default is non-monetary and cannot reasonably be cured within such
period but can be cured before the date five (5) business days after the scheduled Closing date,
and if diligent efforts to cure promptly commence, then the Cure Period shall continue as long as
such diligent efforts to cure continue, but not beyond the date five (5) business days after the
scheduled Closing date.

     10.3. Survival. Neither party may terminate under Sections 10.1(b) or (c) if it is
then in material default under this Agreement. Except as provided by Section 10.5, the termination
of this Agreement shall not relieve any party of any liability for breach or default under this
Agreement prior to the date of termination. Notwithstanding anything contained herein to the
contrary, Sections 1.6 (Deposit) (and Sections 10.4 and 10.5 with respect to the Deposit), 5.1
(Confidentiality) and 11.1 (Expenses) shall survive any termination of this Agreement.

     10.4. Specific Performance. In the event of failure or threatened failure by either
party to comply with the terms of this Agreement, the other party shall be entitled to an
injunction restraining such failure or threatened failure and, subject to obtaining any necessary
FCC consent, to enforcement of this Agreement by a decree of specific performance requiring
compliance with this Agreement.

     10.5. Liquidated Damages. If Seller terminates this Agreement pursuant to Section
10.1(c) prior to the First Closing, then Buyer shall pay Seller on demand an amount equal to 20% of
the Purchase Price by wire transfer of immediately available funds, and such payment shall
constitute liquidated damages and the sole remedy of Seller under this Agreement. Buyer
acknowledges and agrees that Seller’s recovery of such amount shall constitute payment of
liquidated damages and not a penalty and that Seller’s liquidated damages amount is reasonable in
light of the substantial but indeterminate harm anticipated to be caused by Buyer’s material breach
or default under this Agreement, the difficulty of proof of loss and damages, the inconvenience and
non-feasibility of otherwise obtaining an adequate remedy, and the value of the transactions to be
consummated hereunder.

ARTICLE 11: MISCELLANEOUS

     11.1. Expenses. Each party shall be solely responsible for all costs and expenses
incurred by it in connection with the negotiation, preparation and performance of and compliance
with the terms of this Agreement. All governmental fees and charges applicable to any requests for
Governmental Consents shall be paid by the party upon whom the applicable governmental authority
imposes the fee or charge (or shall be shared equally if not imposed upon either party). Buyer
shall be solely responsible for all governmental taxes, fees and charges applicable to the transfer
of the Station Assets under this Agreement. Each party is responsible for any commission,
brokerage fee, advisory fee or other similar payment that arises as a result of any agreement or
action of it or any party acting on its behalf in connection with this Agreement or the
transactions contemplated hereby.

-24-

 

     11.2. Further Assurances. After Closing, each party shall from time to time, at the
request of and without further cost or expense to the other, execute and deliver such other
instruments of conveyance and assumption and take such other actions as may reasonably be requested
in order to more effectively consummate the transactions contemplated hereby.

     11.3. Assignment. Except as provided by Section 5.9 (1031 Exchange), neither party
may assign this Agreement without the prior written consent of the other party hereto; provided,
however, that following the First Closing, Buyer may assign its rights to acquire the KMTV FCC
Licenses to an FCC-qualified third party without Seller’s consent upon delivery to Seller of a
written assumption of this Agreement. No such assignment shall release Buyer from any liability or
obligation hereunder. The terms of this Agreement shall bind and inure to the benefit of the
parties’ respective successors and any permitted assigns, and no assignment shall relieve any party
of any obligation or liability under this Agreement.

     11.4. Notices. Any notice pursuant to this Agreement shall be in writing and shall be
deemed delivered on the date of personal delivery or confirmed facsimile transmission or confirmed
delivery by a nationally recognized overnight courier service, and shall be addressed as follows
(or to such other address as any party may request by written notice):

	 	 	 
	if to Seller:

	 	c/o Emmis Communications Corporation
	

	 	One Emmis Plaza
	

	 	40 Monument Circle, Suite 700
	

	 	Indianapolis, Indiana 46204
	

	 	Attention: President and CEO
	

	 	Facsimile: (317) 684-5583
	 
	 	 
	with copies (which shall not

	 	Emmis Communications Corporation
	constitute notice) to:

	 	3500 W. Olive Avenue, Suite 1450
	

	 	Burbank, California 91505
	

	 	Attention: Gary Kaseff
	

	 	Facsimile: (818) 238-9158
	 
	 	 
	

	 	Wiley Rein & Fielding LLP
	

	 	1776 K Street, N.W.
	

	 	Washington, D.C. 20006
	

	 	Attention: Doc Bodensteiner
	

	 	Facsimile: (202) 719-7049
	 
	 	 
	

	 	Bose McKinney & Evans, LLP
	

	 	2700 First Indiana Plaza
	

	 	135 N. Pennsylvania Street
	

	 	Indianapolis, Indiana 46204
	

	 	Attention: David L. Wills
	

	 	Facsimile: (317) 223-0125
	 
	 	 
	if to Buyer:

	 	c/o Journal Communications, Inc.
	

	 	333 West State Street
	

	 	Milwaukee, Wisconsin 53203
	

	 	Attention: Chairman and CEO
	

	 	Facsimile: (414) 224-2469

-25-

 

	 	 	 
	with a copy (which shall not

	 	Foley & Lardner LLP
	constitute notice) to:

	 	777 East Wisconsin Avenue
	

	 	Milwaukee, Wisconsin 53202
	

	 	Attention: Benjamin F. Garmer, III
Russell E. Ryba
	

	 	Facsimile: (414) 297-4900

     11.5. Amendments. No amendment or waiver of compliance with any provision hereof or
consent pursuant to this Agreement shall be effective unless evidenced by an instrument in writing
signed by the party against whom enforcement of such amendment, waiver, or consent is sought.

     11.6. Entire Agreement. This Agreement (including the Schedules and Exhibits hereto
and any other agreement executed on the date hereof in connection herewith) constitutes the entire
agreement and understanding among the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings with respect to the subject matter hereof,
except the NDA, which shall remain in full force and effect. No party makes any representation or
warranty with respect to the transactions contemplated by this Agreement except as expressly set
forth in this Agreement. Without limiting the generality of the foregoing, Seller makes no
representation or warranty to Buyer with respect to any projections, budgets or other estimates of
the Stations’ revenues, expenses or results of operations, or, except as expressly set forth in
Article 2, any other financial or other information made available to Buyer with respect to the
Stations.

     11.7. Severability. If any court or governmental authority holds any provision in
this Agreement invalid, illegal or unenforceable under any applicable law, then, so long as no
party is deprived of the benefits of this Agreement in any material respect, this Agreement shall
be construed with the invalid, illegal or unenforceable provision deleted and the validity,
legality and enforceability of the remaining provisions contained herein shall not be affected or
impaired thereby.

     11.8. No Beneficiaries. Nothing in this Agreement expressed or implied is intended or
shall be construed to give any rights to any person or entity other than the parties hereto and
their successors and permitted assigns.

     11.9. Governing Law. The construction and performance of this Agreement shall be
governed by the laws of the State of New York without giving effect to the choice of law provisions
thereof.

     11.10. Neutral Construction. Buyer and Seller agree that this Agreement was
negotiated at arms-length and that the final terms hereof are the product of the parties’
negotiations. This Agreement shall be deemed to have been jointly and equally drafted by Buyer and
Seller, and the provisions hereof should not be construed against a party on the grounds that the
party drafted or was more responsible for drafting the provision.

-26-

 

     11.11. Cooperation. After Closing, Buyer shall cooperate with Seller in the
investigation, defense or prosecution of any action which is pending or threatened against Seller
or its affiliates with respect to the Stations, whether or not any party has notified the other of
a claim for indemnity with respect to such matter. Without limiting the generality of the
foregoing, Buyer shall make available its employees to give depositions or testimony and shall
furnish all documentary or other evidence that Seller may reasonably request. Seller shall
reimburse Buyer for all reasonable and necessary out-of-pocket expenses incurred in connection with
the performance of its obligations under this Section 11.11.

     11.12. Counterparts. This Agreement may be executed in separate counterparts, each of
which will be deemed an original and all of which together will constitute one and the same
agreement.

[SIGNATURE PAGE FOLLOWS]

-27-

 

SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 
	BUYER:

	 	JOURNAL BROADCAST
CORPORATION
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	JOURNAL BROADCAST
GROUP
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	SELLER:

	 	EMMIS TELEVISION BROADCASTING, L.P.
	

	 	By:
	 	Emmis Operating Company, its general partner
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	EMMIS TELEVISION LICENSE, LLC
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

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