Document:

exv10w1

 

Exhibit 10-1

 

 

REVOLVING CREDIT AGREEMENT

among

GANNETT CO., INC.,

The Several Lenders

from Time to Time Parties Hereto,

and

BANK ONE, NA,

as Administrative Agent,

Dated as of February 27, 2004

Effective Date as of March 15, 2004

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Defined Terms	 	 	1	 
	Section 1.2
	 	Other Definitional Provisions	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE II Amount and Terms of the Facilities	 	 	8	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Revolving Credit Commitments	 	 	8	 
	Section 2.2
	 	Procedure for Revolving Credit Borrowing	 	 	9	 
	Section 2.3
	 	Termination or Reduction of Commitments	 	 	9	 
	Section 2.4
	 	Optional Prepayments	 	 	9	 
	Section 2.5
	 	Conversion and Continuation Options	 	 	9	 
	Section 2.6
	 	Minimum Amounts of Eurodollar Borrowings	 	 	10	 
	Section 2.7
	 	Repayment of Loans; Evidence of Debt	 	 	10	 
	Section 2.8
	 	Interest Rates and Payment Dates	 	 	11	 
	Section 2.9
	 	Fees	 	 	11	 
	Section 2.10
	 	Computation of Interest and Fees	 	 	11	 
	Section 2.11
	 	Inability to Determine Interest Rate	 	 	12	 
	Section 2.12
	 	Pro Rata Treatment and Payments	 	 	12	 
	Section 2.13
	 	Requirements of Law	 	 	13	 
	Section 2.14
	 	Taxes	 	 	14	 
	Section 2.15
	 	Indemnity	 	 	16	 
	Section 2.16
	 	Change of Lending Office	 	 	16	 
	Section 2.17
	 	Replacement of Lenders	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III Representations and Warranties	 	 	17	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Organization; Powers	 	 	17	 
	Section 3.2
	 	Financial Condition; No Material Adverse Effect	 	 	17	 
	Section 3.3
	 	Properties	 	 	17	 
	Section 3.4
	 	Litigation	 	 	17	 
	Section 3.5
	 	No Conflicts	 	 	17	 
	Section 3.6
	 	Taxes	 	 	18	 
	Section 3.7
	 	Authorization; Enforceability	 	 	18	 
	Section 3.8
	 	Environmental Matters	 	 	18	 
	Section 3.9
	 	No Change	 	 	18	 
	Section 3.10
	 	Federal Regulations	 	 	18	 
	Section 3.11
	 	No Default	 	 	18	 
	Section 3.12
	 	Investment Company Act; Federal Regulations	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE IV Conditions	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE V Affirmative Covenants	 	 	19	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Financial Statements and Other Information	 	 	19	 
	Section 5.2
	 	Payment of Obligations	 	 	20	 

 

 

	 	 	 	 	 	 	 
	Section 5.3
	 	Books and Records; Inspection Rights	 	 	20	   
	Section 5.4
	 	Notices of Material Events	 	 	20	 
	Section 5.5
	 	Existence; Conduct of Business	 	 	21	 
	Section 5.6
	 	Maintenance of Properties; Insurance	 	 	21	 
	Section 5.7
	 	Compliance with Laws	 	 	21	 
	Section 5.8
	 	Debt Ratings	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VI Negative Covenants	 	 	21	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Liens	 	 	21	 
	Section 6.2
	 	Fundamental Changes	 	 	22	 
	Section 6.3
	 	Shareholders' Equity	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE VII Events of Default	 	 	22	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Events of Default	 	 	22	 
	Section 7.2
	 	Remedies	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VIII The Administrative Agent	 	 	24	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Appointment	 	 	24	 
	Section 8.2
	 	Delegation of Duties	 	 	24	 
	Section 8.3
	 	Exculpatory Provisions	 	 	24	 
	Section 8.4
	 	Reliance by Administrative Agent	 	 	24	 
	Section 8.5
	 	Notice of Default	 	 	25	 
	Section 8.6
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	25	 
	Section 8.7
	 	Indemnification	 	 	25	 
	Section 8.8
	 	Agent in Its Individual Capacity	 	 	26	 
	Section 8.9
	 	Successor Administrative Agent	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE IX Miscellaneous	 	 	26	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Amendments and Waivers	 	 	26	 
	Section 9.2
	 	Notices	 	 	27	 
	Section 9.3
	 	No Waiver; Cumulative Remedies	 	 	28	 
	Section 9.4
	 	Survival of Representations and Warranties	 	 	28	 
	Section 9.5
	 	Payment of Expenses and Taxes	 	 	28	 
	Section 9.6
	 	Successors and Assigns; Participations and Assignments	 	 	29	 
	Section 9.7
	 	Adjustments; Set-off	 	 	31	 
	Section 9.8
	 	Counterparts	 	 	31	 
	Section 9.9
	 	Severability	 	 	31	 
	Section 9.10
	 	Integration	 	 	32	 
	Section 9.11
	 	GOVERNING LAW	 	 	32	 
	Section 9.12
	 	Submission To Jurisdiction; Waivers	 	 	32	 
	Section 9.13
	 	Acknowledgements	 	 	32	 
	Section 9.14
	 	Confidentiality	 	 	32	 

 

 

SCHEDULES

	1.1	 	Commitments

EXHIBITS

	A	 	Form of Addendum
	B	 	Form of Assignment and Acceptance
	C	 	Form of Exemption Certificate
	D	 	Form of Opinion of Nixon Peabody LLP
	E	 	Form of Compliance Certificate

 

 

                REVOLVING CREDIT AGREEMENT, dated as of February 27, 2004 and effective as
of March 15, 2004, among GANNETT CO., INC., a Delaware corporation (“Gannett”), the several banks and other financial institutions from time to
time parties to this Agreement (the “Lenders”) and BANK ONE, NA, as
administrative agent for the Lenders hereunder (in such capacity, the “Administrative Agent”).

     The parties agree as follows:

ARTICLE I

Definitions

                Section 1.1     Defined Terms. The following words and terms shall have
the following meanings in this Agreement:

                “ABR”: for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greater of (a) the Prime Rate
in effect on such day and (b) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. If for any reason the Administrative Agent shall
have determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any reason,
the ABR shall be determined without regard to clause (b) of the first sentence
of this definition until the circumstances giving rise to such inability no
longer exist. Any change in the ABR due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective as of the opening of business
on the effective day of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.

                “ABR Loans”: Loans the rate of interest applicable to which is
based upon the ABR.

                “Addendum”: an instrument, substantially in the form of Exhibit
A, by which a Lender becomes a party to this Agreement as of the Effective
Date.

                “Aggregate Commitment Percentage”: as to any Lender at any time,
the percentage which such Lender’s Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such
Lender’s Loans then outstanding constitutes of the aggregate principal amount
of the Loans then outstanding).

                “Agreement”: this Revolving Credit Agreement, as amended,
supplemented or otherwise modified from time to time.

                “Applicable Margin”: the appropriate rate per annum set forth in
the table below:

	 	 	 
	Credit Status	 	Applicable Margin
	Credit Status 1

	 	18.00 Basis Points
	Credit Status 2

	 	17.00 Basis Points
	Credit Status 3

	 	21.00 Basis Points
	Credit Status 4

	 	37.50 Basis Points
	Credit Status 5

	 	45.00 Basis Points
	Credit Status 6

	 	50.00 Basis Points

 

2

                “Assignee”: as defined in Section 9.6(c).

                “Assignment and Acceptance”: an Assignment and Acceptance,
substantially in the form of Exhibit B.

                “Available Commitment”: as to any Lender at any time, the
excess, if any, of such Lender’s Commitment over such Lender’s Loans.

                “Basis Point”: 1/100th of one percent.

                “Board”: the Board of Governors of the Federal Reserve System,
or any successor thereto.

                “Borrowing”: a group of Loans of a single Type made by the
Lenders on a single date and as to which a single Interest Period is in effect.

                “Borrowing Date”: any Business Day specified by Gannett as a
date on which Gannett requests the relevant Lenders to make Loans hereunder.

                “Business Day”: each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a legal holiday for banks in Chicago, Illinois or the State
of New York; provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.

                “Code”: the Internal Revenue Code of 1986, as amended from time
to time.

                “Commitment”: as to any Lender, the obligation of such Lender to
make Loans in an aggregate principal and/or face amount not to exceed the
amount set forth under the heading “Commitment” opposite such Lender’s name on
Schedule 1.1 or in the Assignment and Acceptance pursuant to which such Lender
became a party hereto, as the same may be changed from time to time pursuant to
the terms hereof.

                “Commitment Percentage”: as to any Lender at any time, the
percentage which such Lender’s Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such
Lender’s Loans then outstanding constitutes of the aggregate principal amount
of the Loans then outstanding).

                “Commitment Period”: the period from and including the Effective
Date to the Termination Date.

                “Commitment Utilization Percentage”: on any day, the percentage
equivalent of a fraction (a) the numerator of which is the sum of the aggregate
outstanding principal amount of all Loans and (b) the denominator of which is
the Total Commitment (or, on any day after termination of the Commitments, the
Total Commitment in effect immediately preceding such termination).

                “Conduit Lender”: any special purpose corporation organized and
administered by any Lender for the purpose of making Loans hereunder otherwise
required to be made by such Lender and designated by such Lender in a written
instrument, subject to the consent of the Administrative Agent and Gannett; provided, that
the designation by any Lender of a Conduit Lender shall not relieve the

 

3

designating Lender of any of its obligations to fund a Loan under
this Agreement if, for any reason, its Conduit Lender fails to fund any such
Loan, and the designating Lender (and not the Conduit Lender) shall have the
sole right and responsibility to deliver all consents and waivers required or
requested under this Agreement with respect to its Conduit Lender, and provided, further, that no Conduit Lender shall (a) be entitled
to receive any greater amount pursuant to Section 2.13, 2.14, 2.15 or 9.5 than
the designating Lender would have been entitled to receive in respect of the
extensions of credit made by such Conduit Lender or (b) be deemed to have any
Commitment hereunder.

                “Contractual Obligation”: as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

                “Credit Status”: any of Credit Status 1, Credit Status 2, Credit
Status 3, Credit Status 4, Credit Status 5 or Credit Status 6. In determining
whether Credit Status 1, Credit Status 2, Credit Status 3, Credit Status 4,
Credit Status 5 or Credit Status 6 shall apply in any circumstance, if the
applicable ratings by S&P and Moody’s differ, the higher of the two ratings
will be determinative, unless the applicable ratings by S&P and Moody’s are
more than one level apart, in which case the Credit Status one level below the
higher rating will be determinative. In the event that Gannett’s senior
unsecured long-term debt is rated by only one of S&P and Moody’s, then that
single rating shall be determinative. The Borrower shall at all times maintain
a senior unsecured long-term debt rating from either S&P or Moody’s.

                “Credit Status 1” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A+
or a rating by Moody’s of Gannett’s senior unsecured long-term debt of at least
A1.

                “Credit Status 2” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A
but lower than A+ or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least A2 but lower than A1.

                “Credit Status 3” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A-
but lower than A or a rating by Moody’s of Gannett’s senior unsecured long-term
debt of at least A3 but lower than A2.

                “Credit Status 4” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least
BBB+ but lower than A- or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least Baa1 but lower than A3.

                “Credit Status 5” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least BBB
but lower than BBB+ or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least Baa2 but lower than Baa1.

                “Credit Status 6” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of lower than
BBB or a rating by Moody’s of Gannett’s senior unsecured long-term debt of
lower than Baa2.

                “Default”: any of the events specified in Section 7.1, whether
or not any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.

                “Dollars” and “$”: dollars in lawful currency of the
United States of America.

 

4

                “Effective Date”: the date identified by Gannett in a written
notice to the Administrative Agent, which date shall be at least one Business
Day after receipt by the Administrative Agent of such notice and shall, in any
case, occur no later than March 15, 2004.

                “Environmental Laws”: any and all federal, state, local and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
other governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or other
remediation thereof.

                “Eurocurrency Reserve Requirements”: for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the maximum rates
(expressed as a decimal fraction) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and emergency
reserves under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
liabilities” in Regulation D of the Board) maintained by a member bank of such
System.

                “Eurodollar Base Rate”: with respect to each day during each
Interest Period pertaining to a Eurodollar Loan, the rate per annum determined
on the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing
on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period. In the event that such
rate does not appear on Page 3750 of the Dow Jones Markets screen (or otherwise
on such screen), the “Eurodollar Base Rate” shall be determined by
reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Administrative Agent or, in the
absence of such availability, by reference to the rate at which the
Administrative Agent is offered Dollar deposits at or about 11:00 A.M.,
Chicago, Illinois time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where its eurodollar and
foreign currency and exchange operations are then being conducted for delivery
on the first day of such Interest Period for the number of days comprised
therein.

                “Eurodollar Borrowing”: a Borrowing comprised of Eurodollar
Loans.

                “Eurodollar Loan”: any Loan bearing interest at a rate
determined by reference to the Eurodollar Rate.

                “Eurodollar Rate”: with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

                Eurodollar Base Rate                

1.00 - Eurocurrency Reserve Requirements

                “Event of Default”: any of the Events of Default specified in
Section 7.1 of this Agreement.

 

5

                “Excess Utilization Day”: each day on which the Commitment
Utilization Percentage exceeds 50%.

                “Extended Date”: as defined in Section 2.7(b) of this Agreement.

                “Extended Loans”: as defined in Section 2.7(b) of this
Agreement.

                “Federal Funds Effective Rate”: for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day of such rates on such transactions
received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it.

                “GAAP”: generally accepted accounting principles in the United
States as in effect from time to time and consistent with those used in the
preparation of the most recent audited financial statements referred to in
Section 3.2. In the event that any “Accounting Change” (as defined below)
shall occur and such change results in a material change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
Gannett and the Administrative Agent agree to enter into negotiations in order
to amend such provisions of this Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Gannett’s financial condition shall be the same after such Accounting Changes
as if such Accounting Changes had not been made. Until such time as such an
amendment shall have been executed and delivered by Gannett, the Administrative
Agent and the Required Lenders, all financial covenants, standards and terms in
this Agreement shall continue to be calculated or construed as if such
Accounting Changes had not occurred. “Accounting Changes” refers to changes in
accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the
Securities and Exchange Commission.

                “Governmental Authority”: any nation or government, any state or
other political subdivision thereof and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government.

                “Interest Payment Date”: (a) as to any ABR Loan, the last day of
each March, June, September and December to occur while such Loan is
outstanding and on the date such Loan is paid in full, (b) as to any Eurodollar
Loan, the last day of the Interest Period applicable thereto and (c) as to any
Eurodollar Loan having an Interest Period longer than three months or 90 days,
each day which is three months or 90 days, respectively, after the first day of
the Interest Period applicable thereto; provided that, in addition to
the foregoing, each of (x) the date upon which both the Commitments have been
terminated and the Loans have been paid in full and (y) the Termination Date
shall be deemed to be an “Interest Payment Date” with respect to any interest
which is then accrued hereunder.

                “Interest Period”: with respect to any Eurodollar Loan:

	 	(i)	 	initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such
Eurodollar Loan and ending one, two, three or six (or, if
available to all the Lenders, nine) months thereafter, as
selected by Gannett in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto;
and

 

6

	 	(ii)	 	thereafter, each period commencing on the last day of
the next preceding Interest Period applicable to such
Eurodollar Loan and ending one, two, three or six (or, if
available to all the Lenders, nine) months thereafter, as
selected by Gannett by irrevocable notice to the
Administrative Agent not less than three Business Days prior
to the last day of the then current Interest Period with
respect thereto;

provided that all of the foregoing provisions relating to Interest
Periods are subject to the following:

	 	(A)	 	if any Interest Period would otherwise end on a day
that is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the
case of an Interest Period pertaining to a Eurodollar Loan,
the result of such extension would be to carry such Interest
Period into another calendar month in which event such
Interest Period shall end on the immediately preceding
Business Day; and
	 
	 	(B)	 	any Interest Period that begins on the last Business
Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business
Day of a calendar month.

                “Lender Affiliate”: (a) any affiliate of any Lender, (b) any
Person that is administered or managed by any Lender and that is engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business and (c)
with respect to any Lender which is a fund that invests in commercial loans and
similar extensions of credit, any other fund that invests in commercial loans
and similar extensions of credit and is managed or advised by the same
investment advisor as such Lender or by an affiliate of such Lender or
investment advisor.

                “Lenders”:
as defined in the preamble hereto; provided,
that unless the context otherwise requires, each reference herein to the
Lenders shall be deemed to include any Conduit Lender.

                “Lien”: any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the foregoing).

                “Loan”: as defined in Section 2.1(a).

                “Material”: when used to describe an adverse effect or an event
on Gannett or its Subsidiaries, shall mean a condition, event or act which,
with the giving of notice or lapse of time or both, will constitute a Default
or an Event of Default.

                “Material Adverse Effect”: a Material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of Gannett
and its Subsidiaries taken as a whole or (b) the validity or enforceability of
this Agreement or the material rights or remedies of the Administrative Agent
and the Lenders hereunder.

                “Moody’s”: Moody’s Investors Service, Inc. and its
successors; provided, however, that if Moody’s ceases rating securities
similar to the senior unsecured long-term debt of the Borrower and its ratings
and business with respect to such securities shall not have been transferred to
any successor, then

 

7

“Moody’s” shall mean any other nationally recognized rating
agency (other than S&P) selected by the Borrower and approved by the
Administrative Agent (not to be unreasonably withheld or delayed) that rates
any senior unsecured long-term debt of the Borrower.

                “Net Property, Plant and Equipment”: the amount under that
heading on the consolidated balance sheet of Gannett and its Subsidiaries
prepared in accordance with GAAP.

                “Non-Excluded Taxes”: as defined in Section 2.14(a).

                “Non-U.S. Lender”: as defined in Section 2.14(d).

                “Other Taxes”: any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

                “Participant”: as defined in Section 9.6(b).

                “Person”: an individual, partnership, corporation, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

                Prime Rate”: the rate of interest per annum equal to the prime
rate of interest announced from time to time by Bank One, NA or its parent
(which is not necessarily the lowest rate charged to any customer), changing
when and as said prime rate changes.

                “Register”: as defined in Section 9.6(d).

                “Required Lenders”: at any time, the holders of more than 50% of
the Total Commitments then in effect or, if the Commitments have been
terminated, the Total Extensions of Credit then outstanding.

                “Requirement of Law”: as to any Person, any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

                “S&P”: Standard & Poor’s Corporation and its successors; provided, however, that if S&P ceases rating securities similar
to the senior unsecured long-term debt of the Borrower and its ratings and
business with respect to such securities shall not have been transferred to any
successor, then “S&P” shall mean any other nationally recognized rating agency
(other than Moody’s) selected by the Borrower and approved by the
Administrative Agent (not to be unreasonably withheld or delayed) that rates
any senior unsecured long-term debt of the Borrower.

                “Subsidiary”: any corporation the majority of the shares of
voting stock of which at any time outstanding is owned directly or indirectly
by Gannett or by one or more of its other subsidiaries or by Gannett in
conjunction with one or more of its other subsidiaries.

                “Termination Date”: the second anniversary of the Effective
Date; provided that if such date is not a Business Day, the
Termination Date shall be the Business Day immediately preceding such date.

 

8

                “Total Commitments”: at any time, the aggregate amount of the
Commitments then in effect.

                “Total Extensions of Credit”: at any time, the aggregate amount
of all Loans of the Lenders outstanding at such time.

                “Total Shareholders’ Equity”: the amount appearing under that
heading on the consolidated balance sheet of Gannett and its Subsidiaries,
prepared in accordance with GAAP.

                “Transferee”: any Assignee or Participant.

                “Type”: as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

                Section 1.2 Other Definitional Provisions.

                (a)     Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings when used in any certificate or other
document made or delivered pursuant hereto.

                (b)     As used herein, and any certificate or other document made or
delivered pursuant hereto, accounting terms relating to Gannett and its
Subsidiaries not defined in Section 1.1 and accounting terms partly defined in
Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

                (c)     The words “hereof”, “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

                (d)     The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.

ARTICLE II

Amount and Terms of the Facilities

                Section 2.1     Revolving Credit Commitments. (a) Subject to the terms
and conditions hereof, each Lender severally agrees to make revolving credit
loans (“Loans”) to Gannett from time to time during the Commitment
Period in an aggregate principal amount at any one time outstanding which does
not exceed the amount of such Lender’s Commitment. During the Commitment
Period, Gannett may use the Commitments by borrowing, prepaying the Loans in
whole or in part, and reborrowing, all in accordance with the terms and
conditions hereof. Notwithstanding anything to the contrary contained in
this Agreement, in no event (after giving effect to the use of proceeds of any
Borrowing) shall (i) the amount of any Lender’s Commitment Percentage of a
Borrowing of Loans exceed such Lender’s Available Commitment at the time of
such Borrowing or (ii) the aggregate amount of Loans at any one time
outstanding exceed the aggregate Commitments then in effect of all Lenders.

                (b)     The Loans may from time to time be (i) Eurodollar Loans, (ii) ABR
Loans or (iii) a combination thereof, as determined by Gannett and notified to
the Administrative Agent in accordance with Sections 2.2 and 2.5; provided that
no Loan shall be made as a Eurodollar Loan after the day that is one
month prior to the Termination Date.

 

9

                Section 2.2     Procedure for Revolving Credit Borrowing. Gannett
may borrow Loans under the Commitments on any Business Day; provided that
Gannett shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 11:00 A.M., Chicago,
Illinois time, (a) three Business Days prior to the requested Borrowing Date,
if all or any part of the requested Loans are to be Eurodollar Loans, or (b) on
the requested Borrowing Date, otherwise), specifying (i) the amount to be
borrowed, (ii) the requested Borrowing Date, (iii) whether the Borrowing is to
be of Eurodollar Loans, ABR Loans or a combination thereof and (iv) if the
Borrowing is to be entirely or partly of Eurodollar Loans, the respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Periods therefor. Any Loans made on the Effective Date shall be ABR
Loans. Each Borrowing under the Commitments shall be in an amount equal to
$10,000,000 or a multiple of $1,000,000 in excess thereof. Upon receipt of any
such notice from Gannett, the Administrative Agent shall promptly notify each
relevant Lender thereof. Each relevant Lender will make the amount of its pro
rata share of each Borrowing available to the Administrative Agent for the
account of Gannett at the office of the Administrative Agent specified in
Section 9.2 prior to 1:00 P.M., Chicago, Illinois time, on the Borrowing Date
requested by Gannett in funds immediately available to the Administrative
Agent. Such Borrowing will then immediately be made available to Gannett by
the Administrative Agent crediting the account of Gannett on the books of such
office with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent.

                Section 2.3     Termination or Reduction of Commitments. Gannett
shall have the right, upon not less than two Business Days’ notice to the
Administrative Agent, to terminate the Commitments when no Loans are then
outstanding or, from time to time, to reduce the unutilized portion of the
Commitments. Any such reduction pursuant to this Section 2.3 shall be in an
amount equal to $10,000,000 or a multiple of $1,000,000 in excess thereof and
shall reduce permanently the applicable Commitments then in effect, and the
fees payable pursuant to Section 2.9 shall then reflect the reduced
Commitments.

                Section 2.4     Optional Prepayments. Gannett may at any time and
from time to time prepay the Loans, in whole or in part, without premium or
penalty, upon irrevocable notice delivered to the Administrative Agent at least
three Business Days prior thereto in the case of Eurodollar Loans and at least
one Business Day prior thereto in the case of ABR Loans, which notice shall
specify the date and amount of prepayment and whether the prepayment is of
Eurodollar Loans or ABR Loans; provided, that if a Eurodollar Loan is prepaid
on any day other than the last day of the Interest Period applicable thereto,
Gannett shall also pay any amounts owing pursuant to Section 2.15. Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof. If any such notice is given, the amount specified in
such notice shall be due and payable on the date specified therein,
together with accrued interest and fees to such date on the amount prepaid.
Partial prepayments shall be in an aggregate principal amount of $10,000,000 or
a multiple of $1,000,000 in excess thereof.

                Section 2.5     Conversion and Continuation Options. (a) Gannett
may elect from time to time to convert Eurodollar Loans to ABR Loans by giving
the Administrative Agent at least one Business Day’s prior irrevocable notice
of such election; provided that any such conversion of Eurodollar Loans may
only be made on the last day of an Interest Period with respect thereto.
Gannett may elect from time to time to convert ABR Loans to Eurodollar Loans by
giving the Administrative Agent at least three Business Days’ prior irrevocable
notice of such election. Any such notice of conversion to Eurodollar Loans
shall specify the length of the initial Interest Period or Interest Periods
therefor. Upon receipt of any such notice the Administrative Agent shall
promptly notify each relevant Lender thereof. All or any part of outstanding
Eurodollar Loans and ABR Loans may be converted as provided herein; provided
that (i) no Loan may be converted into a Eurodollar Loan when any Event of Default has

 

10

occurred and is continuing and (ii) no Loan may be converted into a
Eurodollar Loan after the date that is one month prior to the Termination Date.

                (b)     Any Eurodollar Loans may be continued as such upon the expiration of
the then current Interest Period with respect thereto by Gannett giving notice
to the Administrative Agent, in accordance with the applicable provisions of
the term “Interest Period” set forth in Section 1.1, of the length of the next
Interest Period to be applicable to such Loans; provided that no
Eurodollar Loan may be continued as such (i) when any Event of Default has
occurred and is continuing or (ii) after the date that is one month prior to
the Termination Date; and provided, further, that if Gannett
shall fail to give any required notice as described above in this paragraph or
if such continuation is not permitted pursuant to the preceding proviso such
Eurodollar Loans shall be automatically converted to ABR Loans on the last day
of such then expiring Interest Period.

                Section 2.6     Minimum Amounts of Eurodollar Borrowings. All
borrowings, conversions and continuations of Loans hereunder and all selections
of Interest Periods hereunder shall be in such amounts and be made pursuant to
such elections so that, after giving effect thereto, the aggregate principal
amount of the Loans comprising each Eurodollar Borrowing shall be equal to
$10,000,000 or a multiple of $1,000,000 in excess thereof and so that there
shall not be more than 20 Eurodollar Borrowings outstanding at any one time.

                Section 2.7     Repayment of Loans; Evidence of Debt. (a) Gannett
hereby unconditionally promises to pay to each Lender on the Termination Date
(or such earlier date as the Loans become due and payable pursuant to Article 7
or Section 2.4), the unpaid principal amount of each Loan made by such Lender.
Gannett hereby further agrees to pay interest in immediately available funds at
the office of the Administrative Agent on the unpaid principal amount of the
Loans from time to time from the date hereof until payment in full thereof at
the rates per annum, and on the dates, set forth in Section 2.8.

                (b)     Notwithstanding anything to the contrary contained herein, so long as
Gannett gives the Administrative Agent at least 30 days’ notice in advance of
the Termination Date, Gannett may elect that all or any portion of the Loans
outstanding on the Termination Date shall become a term loan and be due and
payable in full on the date (the “Extended Date”; the Loans so
extended, the “Extended Loans”) which is one year following the
Termination Date (or such earlier date as the Loans become due and payable
pursuant to Article 7 or Section 2.4).

                (c)     Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of Gannett to the appropriate
lending office of such Lender resulting from each Loan made by such lending
office of such Lender from time to time, including the amounts of principal and
interest payable and paid to such lending office of such Lender from time to
time under this Agreement.

                (d)     The Administrative Agent shall maintain the Register pursuant to
Section 9.6(d), and a subaccount for each Lender, in which Register and
subaccounts (taken together) shall be recorded (i) the amount of each Loan made
hereunder, the Type of each Loan made and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from Gannett to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder from Gannett
and each Lender’s share thereof.

                (e)     The entries made in the Register and accounts maintained pursuant to
paragraphs (c) and (d) of this Section 2.7 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of Gannett therein recorded; provided, however, that the

 

11

failure of any Lender or the Administrative Agent to maintain such
account, such Register or such subaccount, as applicable, or any error therein,
shall not in any manner affect the obligation of Gannett to repay (with
applicable interest) the Loans made to Gannett by such Lender in accordance
with the terms of this Agreement.

                Section 2.8     Interest Rates and Payment Dates. (a) Each ABR Loan
shall bear interest at a rate per annum equal to the ABR plus the Applicable
Margin.

                (b)     The Loans comprising each Eurodollar Borrowing shall bear interest at
a rate per annum equal to the Eurodollar Rate for the Interest Period in effect
for such Borrowing plus the Applicable Margin. The Applicable Margin
applicable to Extended Loans shall be increased by .1250%.

                (c)     Interest shall be payable in arrears on each Interest Payment
Date; provided that interest accruing pursuant to paragraph (d) of this
Section 2.8 shall be payable from time to time on demand.

                (d)     (i) If all or a portion of the principal amount of any Loan shall not
be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum equal
to the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section 2.8 plus 1% and (ii) to the
extent permitted under applicable law, if all or a portion of any interest
payable on any Loan or any fee or other amount payable hereunder shall not be
paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest at a rate per annum equal to the rate
then applicable to ABR Loans plus 1%, in each case, with respect to
clauses (i) and (ii) above, from the date of such non-payment until such amount
is paid in full (as well after as before judgment).

                Section 2.9     Fees. (a) Gannett shall pay to the Administrative
Agent, for the ratable account of the Lenders, a facility fee (the “Facility Fee”) at the rate per annum equal to (i) for each day that
Gannett has Credit Status 1, .0700% of the aggregate Commitments on such day,
(ii) for each day that Gannett has Credit Status 2, .0800% of the aggregate
Commitments on such day, (iii) for each day that Gannett has Credit Status 3, .1000% of the aggregate Commitments on such day, (iv) for each day that
Gannett has Credit Status 4, .12500% of the aggregate Commitments on such
day, (v) for each day that Gannett has Credit Status 5, .1750% of the aggregate
Commitments on such day and (vi) for each day that Gannett has Credit Status 6, .2500% of the aggregate Commitments on such day. On the first Business Day
following the last day of each fiscal quarter of Gannett and on the Termination
Date (or, if earlier, on the date upon which both the Commitments are
terminated and the Loans are paid in full), Gannett shall pay to the
Administrative Agent, for the ratable benefit of the Lenders, the portion of
the Facility Fee which accrued during the fiscal quarter most recently ended
(or, in the case of the payment due on the Termination Date, the portion
thereof ending on such date). Such facility fee shall be based upon the
aggregate Commitments of the Lenders from time to time, regardless of the
utilization by Gannett from time to time thereunder.

                (b)     Gannett shall pay to the Administrative Agent, for the ratable account
of the Lenders, a utilization fee (the “Utilization Fee”) at a rate
per annum equal to 0.0750% for each day on which the Commitment Utilization
Percentage exceeds 50%, which Utilization Fee shall accrue on the average daily
amount of the Total Extensions of Credit for each Excess Utilization Day during
the term of this Agreement. All Utilization Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days and shall be payable
quarterly in arrears.

                Section 2.10     Computation of Interest and Fees. (a) Interest
payable pursuant hereto shall be calculated on the basis of a 360-day year for
the actual days elapsed, except that, with respect to

 

12

ABR Loans the rate of interest on which is calculated on the basis of the Prime Rate, the interest
thereon shall be calculated on the basis of a 365- (or 366-, as the case may
be) day year for the actual days elapsed. Fees (other than the Utilization
Fees, which shall be calculated as provided in Section 2.9(b)) payable pursuant
hereto shall be calculated on the basis of a 365- (or 366-, as the case may be)
day year for the actual days elapsed. The Administrative Agent shall as soon
as practicable notify Gannett and the relevant Lenders of each determination of
a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a
change in the ABR or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such change becomes
effective. The Administrative Agent shall as soon as practicable notify
Gannett and the relevant Lenders of the effective date and the amount of each
such change in interest rate.

                (b)     Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
Gannett and the Lenders in the absence of manifest error. The Administrative
Agent shall, at the request of Gannett, deliver to Gannett a statement showing
the quotations used by the Administrative Agent in determining any interest
rate pursuant to Section 2.10(a).

                Section 2.11     Inability to Determine Interest Rate. If prior to
the first day of any Interest Period the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon Gannett)
that, by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for such
Interest Period, the Administrative Agent shall give telecopy or telephonic
notice thereof to Gannett and the relevant Lenders as soon as practicable
thereafter. If such notice is given (x) any Eurodollar Loans requested to be
made on the first day of such Interest Period shall be made as ABR Loans, (y)
any Loans that were to have been converted on the first day of such Interest
Period to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Eurodollar Loans shall be converted, on the last day of the
then-current Interest Period, to ABR Loans. Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall Gannett have the right to convert Loans to
Eurodollar Loans.

                Section 2.12     Pro Rata Treatment and Payments. (a) Each
borrowing of Loans from the Lenders hereunder, each payment by Gannett on
account of any fee hereunder and, subject to the last sentence of Section 2.3,
any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective Commitments of the relevant Lenders. Subject to
the last sentence of Section 2.3, each payment (including each prepayment) by
Gannett on account of principal of and interest on the Loans shall be made pro
rata according to the respective outstanding principal amounts of the Loans
then held by the Lenders.

                (b)     All payments (including prepayments) to be made by Gannett hereunder,
whether on account of principal, interest, fees or otherwise, shall be made
without set-off or counterclaim and shall be made prior to 12:00 Noon, Chicago,
Illinois time, on the due date thereof to the Administrative Agent, for the
account of the relevant Lenders, at the Agent’s office specified in Section
9.2, in Dollars and in immediately available funds. Notwithstanding the
foregoing, the failure by Gannett to make a payment (or prepayment) prior to
12:00 Noon on the due date thereof shall not constitute a Default or Event of
Default if such payment is made on such due date; provided, however, that any payment (or prepayment) made after such time on such due
date shall be deemed made on the next Business Day for the purposes of interest
and reimbursement calculations. The Administrative Agent shall distribute such
payments to the relevant Lenders promptly upon receipt in like funds as
received. If any payment hereunder (other than payments on the Eurodollar
Loans) becomes due and payable on a day other than a Business Day, such payment
shall be extended to the next succeeding Business Day. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall

 

13

be extended to the next succeeding Business Day unless the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day. In the case of any extension of any payment of
principal pursuant to the preceding two sentences, interest thereon shall be
payable at the then applicable rate during such extension.

                (c)     Unless the Administrative Agent shall have been notified in writing by
any Lender prior to a borrowing that such Lender will not make the amount that
would constitute its share of such borrowing available to the Administrative
Agent, the Administrative Agent may assume that such Lender is making such
amount available to the Administrative Agent, and the Administrative Agent may,
in reliance upon such assumption, make available to Gannett a corresponding
amount. If such amount is not made available to the Administrative Agent by
the required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon at a rate
equal to the daily average Federal Funds Effective Rate for the period until
such Lender makes such amount immediately available to the Administrative
Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the
absence of manifest error. If such Lender’s share of such borrowing is not
made available to the Administrative Agent by such Lender within three Business
Days of such Borrowing Date, the Administrative Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum applicable to
ABR Loans, on demand, from Gannett. Nothing herein shall be deemed to limit
the rights of Gannett against any Lender who fails to make its share of such
borrowing available.

                (d)     Unless the Administrative Agent shall have been notified in writing by
Gannett prior to the date of any payment being made hereunder that Gannett will
not make such payment to the Administrative Agent, the Administrative Agent may
assume that Gannett is making such payment, and the Administrative Agent may,
but shall not be required to, in reliance upon such assumption, make available
to the Lenders their respective pro rata shares of a
corresponding amount. If such payment is not made to the Administrative Agent
by Gannett within three Business Days of such required date, the Administrative
Agent shall be entitled to recover, on demand, from each Lender to
which any amount which was made available pursuant to the preceding
sentence, such amount with interest thereon at the rate per annum equal to the
daily average Federal Funds Effective Rate. Nothing herein shall be deemed to
limit the rights of the Administrative Agent or any Lender against Gannett.

                Section 2.13     Requirements of Law. (a) If the adoption of or any
change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

(i)     shall subject any Lender to any tax of any kind whatsoever with
respect to this Agreement or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect
thereof (except for Non-Excluded Taxes covered by Section 2.14 and
changes in the rate of tax on the overall net income of such
Lender);

(ii)     shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held
by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not
otherwise included in the determination of the Eurodollar Rate
hereunder; or

(iii)     shall impose on such Lender any other condition affecting
Eurodollar Loans;

 

14

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount that such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, Gannett shall promptly
pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable.
If any Lender becomes entitled to claim any additional amounts pursuant to this
paragraph, it shall promptly notify Gannett (with a copy to the Administrative
Agent) of the event by reason of which it has become so entitled. Gannett
shall not be liable in respect of any such increased costs to, or reduced
amount of any sum received or receivable by, any Lender pursuant to this
Section 2.13(a) with respect to any interest, fees or other amounts accrued by
such Lender more than 15 days prior to the date notice thereof is given to
Gannett pursuant to this Section 2.13(a).

                (b)     If any Lender shall have determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation
or application thereof or compliance by such Lender or any corporation
controlling such Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s
policies with respect to capital adequacy) by an amount deemed by such Lender
to be material, then from time to time, within 15 days after submission by such
Lender to Gannett (with a copy to the Administrative Agent) of a written
request therefor, Gannett shall pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction; provided that Gannett shall not be required to compensate a Lender pursuant to this
paragraph for any amounts incurred more than 30 days prior to the date that
such Lender notifies Gannett of such Lender’s intention to claim compensation
therefor; and provided further that, if the circumstances giving rise to such claim have a retroactive effect,
then such 30 day period shall be extended to include the period of such
retroactive effect.

                (c)     A certificate, setting forth a reasonably detailed explanation as to
the reason for any additional amounts payable pursuant to this Section 2.13,
submitted by any Lender to Gannett (with a copy to the Administrative Agent)
shall be conclusive in the absence of manifest error. The obligations of
Gannett pursuant to this Section shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

                Section 2.14     Taxes. (a) All payments made by Gannett under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on the Administrative Agent or any Lender as a result
of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than
any such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement). If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts
payable to the Administrative Agent or any Lender hereunder, the amounts so
payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Non-Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement, provided, however, that Gannett shall not be
required to increase any such amounts payable

 

15

to any Lender with respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply
with the requirements of paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time the Lender becomes a party to this Agreement (or designates a new
lending office), except to the extent that such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from Gannett
with respect to such Non-Excluded Taxes pursuant to this paragraph.

                (b)     In addition, Gannett shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

                (c)     Whenever any Non-Excluded Taxes or Other Taxes are payable by Gannett,
as promptly as possible thereafter Gannett shall send to the Administrative
Agent for its own account or for the account of the relevant Lender, as the
case may be, a certified copy of an original official receipt received by
Gannett showing payment thereof. If Gannett fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other required
documentary evidence, Gannett shall indemnify the Administrative Agent and the
Lenders for any incremental taxes, interest or penalties that may become
payable by the Administrative Agent or any Lender as a result of any such
failure.

                (d)     Each Lender (or Transferee) that is not a “U.S. Person” as defined in
Section 7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver to
Gannett and the Administrative Agent (or, in the case of a Participant, to the
Lender from which the related participation shall have been purchased) two
copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or,
in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section
871(h) or 881(c) of the Code with respect to payments of “portfolio
interest”, a statement substantially in the form of Exhibit C and a Form
W-8BEN, or any subsequent versions thereof or successors thereto, properly
completed and duly executed by such Non-U.S. Lender claiming complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments by
Gannett under this Agreement. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement or designates
a new lending office (or, in the case of any Participant, on or before the date
such Participant purchases the related participation). In addition, each
Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender. Each
Non-U.S. Lender shall promptly notify Gannett at any time it determines that it
is no longer in a position to provide any previously delivered certificate to
Gannett (or any other form of certification adopted by the U.S. taxing
authorities for such purpose). Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

                (e)     If the Administrative Agent or any Lender receives a refund in respect
of any amounts paid by Gannett pursuant to this Section 2.14, which refund in
the reasonable judgment of such Administrative Agent or such Lender is
allocable to such payment, it shall pay the amount of such refund to Gannett,
net of all reasonable out-of-pocket expenses of the Administrative Agent or
such Lender, provided however, that Gannett, upon the request of such Lender or
the Administrative Agent, agrees to repay the amount paid over to Gannett to
the Administrative Agent or such Lender in the event such Administrative Agent
or the Lender is required to repay such refund. Nothing contained herein shall
interfere with the right of the Administrative Agent or any Lender to arrange
its tax affairs in whatever manner it deems fit nor oblige the Administrative
Agent or any Lender to apply for any refund or to disclose any information
relating to its affairs or any computations in respect thereof.

                (f)     The agreements in this Section 2.14 shall survive the termination of
this Agreement and the payment of the Loans and all other amounts payable
hereunder.

 

16

                Section 2.15     Indemnity. Gannett agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense that such Lender
sustains or incurs as a consequence of (a) default by Gannett in making a
borrowing of, conversion into or continuation of Eurodollar Loans after Gannett
has given a notice requesting the same in accordance with the provisions of
this Agreement, (b) default by Gannett in making any prepayment of or
conversion from Eurodollar Loans after Gannett has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of a
prepayment of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto. Such indemnification may include an amount equal
to the excess, if any, of (i) the amount of interest that would have accrued on
the amount so prepaid, or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert
or continue to the last day of such Interest Period (or, in the case of a
failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Loans provided for herein (excluding, however, the Applicable
Margin included therein, if any) over (ii) the amount of interest (as
reasonably determined by such Lender) that would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market. A certificate as to any
amounts payable pursuant to this Section submitted to Gannett by any Lender
shall be conclusive in the absence of manifest error. This covenant shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

                Section 2.16     Change of Lending Office. Each Lender agrees that, upon the occurrence of any event giving
rise to the operation of Section 2.13 or 2.14(a) with respect to such Lender,
it will, if requested by Gannett, use reasonable efforts (subject to overall
policy considerations of such Lender) to designate another lending office for
any Loans affected by such event with the object of avoiding the consequences
of such event; provided, that such designation is made on terms that, in the
sole judgment of such Lender, cause such Lender and its lending office(s) to
suffer no economic, legal or regulatory disadvantage, and provided, further,
that nothing in this Section shall affect or postpone any of the obligations of
Gannett or the rights of any Lender pursuant to Section 2.13 or 2.14(a).

                Section 2.17     Replacement of Lenders. Gannett shall be permitted
to replace any Lender that (a) requests reimbursement for amounts owing
pursuant to Section 2.13 or 2.14(a) or (b) defaults in its obligation to make
Loans hereunder, with a replacement financial institution; provided that (i)
such replacement does not conflict with any Requirement of Law, (ii) prior to
any such replacement, such Lender shall have taken no action under Section 2.16
so as to eliminate the continued need for payment of amounts owing pursuant to
Section 2.13 or 2.14(a), (iii) the replacement financial institution shall
purchase, at par, all Loans and other amounts owing to such replaced Lender on
or prior to the date of replacement, (iv) Gannett shall be liable to such
replaced Lender under Section 2.15 if any Eurodollar Loan owing to such
replaced Lender shall be purchased other than on the last day of the Interest
Period relating thereto, (v) the replacement financial institution, if not
already a Lender, shall be reasonably satisfactory to the Administrative Agent,
(vi) the replaced Lender shall be obligated to make such replacement in
accordance with the provisions of Section 9.6 (provided that Gannett shall be
obligated to pay the registration and processing fee referred to therein),
(vii) until such time as such replacement shall be consummated, Gannett shall
pay all additional amounts (if any) required pursuant to Section 2.13 or
2.14(a), as the case may be, and (viii) any such replacement shall not be
deemed to be a waiver of any rights that Gannett, the Administrative Agent or
any other Lender shall have against the replaced Lender.

 

17

ARTICLE III

Representations and Warranties

                To induce the Administrative Agent and the Lenders to enter into this
Agreement and to make the Loans, Gannett hereby represents and warrants to the
Administrative Agent and each Lender that:

                Section 3.1     Organization; Powers. Gannett and each of its
Subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation. Except where the
failure to do so, individually or in the aggregate, would result in a Material
Adverse Effect, Gannett and each of its Subsidiaries is duly qualified to do
business as a foreign corporation and is in good standing in all states in
which it owns substantial properties or in which it conducts a substantial
business and its activities make such qualifications necessary.

                Section 3.2     Financial Condition; No Material Adverse Effect. On
or as of the Effective Date, Gannett has furnished to each of the Lenders
copies of either its Annual Report for 2002 or a report on Form 8-K, containing
in either case, copies of its consolidated balance sheet as of December 29,
2002 and the related statements of consolidated income and changes in
shareholders’ equity and cash flows for 2002, all reported on by
PricewaterhouseCoopers LLP, independent public accountants. The financial statements contained
in such Annual Report or report on Form 8-K (including the related notes)
fairly present Gannett’s consolidated financial condition as of their
respective dates and the consolidated results of the operations of Gannett and
its Subsidiaries for the periods then ended, and have been prepared in
accordance with GAAP. Gannett and its Subsidiaries have no Material
liabilities as of December 29, 2002 not reflected in the consolidated balance
sheet as of December 29, 2002 or the related notes as of said date, and from
that date to the Effective Date there has been no Material change in the
business or financial condition of Gannett and its Subsidiaries taken as a
whole which has not been publicly disclosed.

                Section 3.3     Properties. As of the Effective Date, Gannett and
its Subsidiaries owned absolutely, free and clear of all Liens, all of the real
or personal property reflected in the consolidated balance sheet dated as of
December 29, 2002 referred to in Section 3.2 and all other property acquired by
them, respectively after December 29, 2002 except such property as has been
disposed of in the ordinary course of business, and except for (i) easements,
restrictions, exceptions, reservations or defects which, in the aggregate, do
not materially interfere with the continued use of such property or materially
affect the value thereof to Gannett or its Subsidiaries, (ii) Liens, if any,
for current taxes not delinquent, and (iii) Liens reflected on such
consolidated balance sheet or not otherwise prohibited by Section 6.1. As of
the Effective Date, Gannett and its Subsidiaries enjoy peaceful and undisturbed
possession of their properties which are held under lease and all such leases
are in good standing and valid and binding obligations of the lessors in full
force and effect, except for exceptions, reservations or defects which in the
aggregate do not materially interfere with the continued use of such property
or materially affect the value thereof to Gannett or its Subsidiaries.

                Section 3.4     Litigation. There are no actions, suits, or
proceedings pending or, to Gannett’s knowledge, threatened against or affecting
it or any Subsidiary in or before any court or foreign or domestic governmental
instrumentality, and neither Gannett nor any Subsidiary is in default in
respect of any order of any such court or instrumentality which, in Gannett’s
opinion, are Material.

                Section 3.5     No Conflicts. Neither the execution and delivery of
this Agreement, the consummation of the transactions herein contemplated, nor
compliance with the terms and provisions hereof will conflict with or result in
a breach of any of the provisions of Gannett’s restated certificate of

 

18

incorporation, as amended, or by-laws, as amended, or any law or regulation, or
any order of any court or governmental instrumentality, or any agreement or
instrument by which Gannett is bound, or constitute a default thereunder, or
result in the imposition of any Lien not permitted under this Agreement upon
any of Gannett’s property.

                Section 3.6     Taxes. To the best of Gannett’s knowledge, Gannett
and its Subsidiaries have filed all tax returns which are required to be filed
by any jurisdiction, and have paid all taxes which have become due pursuant to
said returns or pursuant to any assessments against it or its Subsidiaries,
except to the extent only that such taxes are not material or are being
contested in good faith by appropriate proceedings.

                Section 3.7     Authorization; Enforceability. The execution and delivery of this Agreement and the making of all
Borrowings permitted by the provisions hereof have been duly authorized by all
necessary corporate action on the part of Gannett; this Agreement has been duly
and validly executed and delivered by Gannett and constitutes Gannett’s valid
and legally binding agreement enforceable in accordance with its terms; and the
Borrowings when made, will constitute valid and binding obligations of Gannett
enforceable in accordance with the terms of this Agreement, except as limited
by applicable bankruptcy, insolvency, moratorium, reorganization or other laws,
judicial decisions or principles of equity relating to or affecting the
enforcement of creditors rights or contractual obligations generally.

                Section 3.8     Environmental Matters. In the ordinary course of its
business, Gannett becomes aware from time to time of the effect of
Environmental Laws on its business, operations and properties and the business,
operations and properties of its Subsidiaries, and it identifies and evaluates
associated liabilities and costs (including, without limitation, any capital or
operating expenditures required for clean-up or closure of properties then
owned or operated by Gannett or its Subsidiaries, any capital or operating
expenditures required to achieve or maintain compliance with environmental
protection standards imposed by law or as a condition of any license, permit or
contract, any related constraints on operating activities, including any
periodic or permanent shutdown of any facility or reduction in the level of or
change in the nature of operations conducted at such properties, and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses). On the basis of these evaluations, Gannett has reasonably
concluded that Environmental Laws are unlikely to have a Material Adverse
Effect.

                Section 3.9     No Change. Since December 29, 2002, there has been
no development or event that has had or would have a Material Adverse Effect.

                Section 3.10     Federal Regulations. No part of the proceeds of any
Loans, and no other extensions of credit hereunder, will be used for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect or for any purpose that violates the provisions of the Regulations of
the Board. If requested by any Lender or the Administrative Agent, Gannett
will furnish to the Administrative Agent and each Lender a statement to the
foregoing effect in conformity with the requirements of FR Form G-3 or FR Form
U-1, as applicable, referred to in Regulation U.

                Section 3.11     No Default. Neither Gannett nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that would have a Material Adverse Effect.

 

19

                Section 3.12     Investment Company Act; Federal Regulations. Gannet
is not an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

ARTICLE IV

Conditions

                The obligation of each Lender to make a Loan hereunder is subject to
the accuracy, as of the date hereof, of the representations and warranties
herein contained and to the satisfaction of the following further conditions:

                (a)     The Administrative Agent shall have received (i) this Agreement,
executed and delivered by the Administrative Agent and Gannett and (ii) an
Addendum, executed and delivered by each Lender listed on Schedule 1.1.

                (b)     On the date of each Borrowing (i) no Default or Event of Default shall
have occurred and be continuing and (ii) the representations and warranties
contained in Sections 3.1, 3.5 and 3.7 shall be true and correct in all
material respects on and as of such date as if made on and as of such date.

                (c)     On or prior to the date of the first Borrowing hereunder, there shall
have been delivered to each Lender an opinion from Nixon Peabody LLP, counsel
to Gannett, in substantially the form of Exhibit D hereto. In rendering the
foregoing opinion, such counsel may rely upon certificates of officers of
Gannett and its Subsidiaries as to factual matters, including (i) the nature
and location of the property of Gannett and of its Subsidiaries, (ii)
agreements and instruments to which Gannett and/or its Subsidiaries are a
party, and (iii) the conduct of the business of Gannett and its Subsidiaries.

                (d)     On or prior to the date of the first Borrowing hereunder, there shall
have been delivered to each Lender a certificate of the Secretary of Gannett
certifying, as of the date of this Agreement, to resolutions duly adopted by
the Board of Directors of Gannett or a duly authorized committee thereof
authorizing Gannett’s execution and delivery of this Agreement and the making
of the Borrowings.

                (e)     Prior to or simultaneously with the Effective Date, the Competitive
Advance and Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004, among the Borrower, the several lenders from
time to time parties thereto, Bank of America, N.A., as administrative agent,
and JPMorgan Chase Bank, as Syndication Agent, shall have become effective.

ARTICLE V

Affirmative Covenants.

                Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full, Gannett covenants and agrees with the Lenders that it
shall and shall cause each of its Subsidiaries to:

                Section 5.1     Financial Statements and Other Information. Furnish
to the Administrative Agent and the Lenders:

 

20

          (a)     within 60 days after the end of each of the first three
quarterly periods in each fiscal year, its consolidated statements of
income for such quarterly period and for the period from the beginning of
the fiscal year to the end of such quarterly period and its consolidated
balance sheet at the end of that period, all in reasonable detail,
subject, however, to year-end audit
adjustments, together with a certificate of compliance and no
default in substantially the form of Exhibit E hereto certified by an
appropriate financial officer of Gannett;

          (b)     within 120 days after and as of the close of each fiscal year,
Gannett’s Annual Report to shareholders for such fiscal year, containing
copies of its consolidated income statement, consolidated balance sheet
and changes in shareholders’ equity and cash flows for such fiscal year
accompanied by a report by PricewaterhouseCoopers LLP or some other
accounting firm of national reputation selected by Gannett, based on
their examination of such financial statements, which examination shall
have been conducted in accordance with generally accepted auditing
standards and which report shall indicate that the financial statements
have been prepared in accordance with GAAP, together with a certificate
of compliance and no default in substantially the form of Exhibit E
hereto, certified by an appropriate financial officer of Gannett;

          (c)     promptly upon their becoming available, copies of all regular
and periodic financial reports, if any, which Gannett or any of its
Subsidiaries shall file with the Securities and Exchange Commission or
with any securities exchange;

          (d)     promptly upon their becoming available, copies of all
prospectuses of Gannett and all reports, proxy statements and financial
statements mailed by Gannett to its shareholders generally; and

          (e)     such other information respecting the financial condition and
affairs of Gannett and its subsidiaries as any of the Lenders may from
time to time reasonably request.

                The financial statements of Gannett and its Subsidiaries hereafter
delivered to the Lenders pursuant to this Section 5.1 will fairly set forth the
financial condition of Gannett and its Subsidiaries as of the dates thereof,
and the results of Gannett’s and its Subsidiaries’ operations for the
respective periods stated therein, all in accordance with GAAP.

                Section 5.2     Payment of Obligations. Duly pay and discharge all
(i) material obligations when due and (ii) taxes, assessments and governmental
charges of which Gannett has knowledge assessed against it or against its
properties prior to the date on which penalties are attached thereto, unless
and only to the extent that such obligations, taxes, assessments or charters
are not material or shall be contested in good faith by appropriate proceedings
initiated by Gannett.

                Section 5.3     Books and Records; Inspection Rights. (a) Keep
proper books of records and account in which true and correct entries, in all
material respects, are made of all dealings in relation to its business and
activities and (b) permit any Lender, upon reasonable request, to inspect at
all reasonable times its properties, operations and books of account.

                Section 5.4     Notices of Material Events. Promptly give notice to
the Administrative Agent and each Lender of:

          (a)     the occurrence of any Default or Event of Default;

          (b)     any (i) default or event of default under any Contractual
Obligation of Gannett or any of its Subsidiaries or (ii) litigation,
investigation or proceeding that may exist at any time

 

21

between Gannett or any of its Subsidiaries and any Governmental Authority, that in either
case, if not cured or if adversely determined, as the case may be, would
have a material adverse effect on (A) the business, assets, operations or
condition, financial or otherwise, of Gannett and its Subsidiaries taken
as a whole or (B) the validity or enforceability of this Agreement or the
material rights or remedies of the Administrative Agent and the Lenders
hereunder; and

          (c)     any other development or event that has had or would have a
Material Adverse Effect.

Each notice pursuant to this Section 5.4 shall be accompanied by a statement of
an appropriate officer of Gannett setting forth details of the occurrence
referred to therein and stating what action is proposed to take with respect
thereto.

                Section 5.5     Existence; Conduct of Business. Do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the
foregoing shall not prohibit any merger, consolidation or other transaction
permitted under Section 6.2.

                Section 5.6     Maintenance of Properties; Insurance. (a) Keep and
maintain all property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are customarily maintained by companies engaged in
the same or similar businesses operating in the same or similar locations.

                Section 5.7     Compliance with Laws. Comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
would not have a material adverse effect on (a) the business, assets,
operations or condition, financial or otherwise, of Gannett and its
Subsidiaries taken as a whole or (b) the validity or enforceability of this
Agreement or the material rights or remedies of the Administrative Agent and
the Lenders hereunder.

                Section 5.8     Debt Ratings. With respect to Gannett, use its
reasonable best efforts to maintain at all times a senior unsecured long-term
debt rating from either S&P or Moody’s.

ARTICLE VI

Negative Covenants

                Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full, Gannett covenants and agrees with the Lenders that, it shall not,
and shall not permit any of its Subsidiaries to, directly or indirectly:

                Section 6.1     Liens. Create, incur, assume or permit to exist any
Lien on any of its properties or assets now owned or hereafter acquired by it,
without making provision satisfactory to the Lenders whereby the Lenders obtain
an equal and ratable or prior Lien as security for the payment of the
Borrowings; or transfer any of its assets for the purpose of subjecting them to
the payment of obligations prior in payment to any of its general creditors; or
allow any liability of, or claims, or demands against it, or any of its
Subsidiaries, to exist for more than 30 days if the liability, claim or demand
might by law be given any priority over those of its general creditors; provided, however, that
none of the above shall prohibit Gannett or any Subsidiary from creating or allowing any of the following to exist:

 

22

          (a)     Liens incurred after the date hereof covering any of Gannett’s
or its Subsidiaries’ properties or assets; provided that the
total principal amount of indebtedness of Gannett and its Subsidiaries
(on a consolidated basis) secured by all such Liens permitted under this
Section 6.1(a) at any time outstanding shall not exceed 50% of Net
Property, Plant and Equipment;

          (b)     leases of all types, whether or not such leases constitute
leasebacks of property sold or transferred by Gannett or any Subsidiary;

          (c)     pledges and deposits securing the payment of worker’s
compensation or insurance premiums, good-faith deposits in connection
with tenders, contracts (other than contracts for the payment of borrowed
money) or leases, deposits to secure surety or appeal bonds, liens,
pledges or deposits in connection with contracts made with or at the
request of the United States Government or any agency thereof, or pledges
or deposits for similar purposes made in the ordinary course of business;

          (d)     liens securing taxes, assessments or governmental or other
charges or claims for labor, materials or supplies which are not
delinquent or which are being contested in good faith by appropriate
proceedings and liens, restrictions, easements, licenses on the use of
property or minor irregularities in the title thereof, which do not, in
Gannett’s opinion, in the aggregate materially impair their use in
Gannett’s and its Subsidiaries’ business; and

          (e)     Liens on the assets of any Person which becomes a Subsidiary of
Gannett after the date of this Agreement to the extent that such liens
existed prior to the date of acquisition of such Person by Gannett; provided that such Liens existed at the time such Person became a
Subsidiary of Gannett and were not created in anticipation thereof.

                Section 6.2     Fundamental Changes. Merge, consolidate, sell,
lease, transfer or otherwise dispose of all or substantially all of its assets,
unless immediately after giving effect to such transaction, it shall be in
compliance with Sections 6.1 and 6.3 hereof and, in the case of a merger or
consolidation by Gannett, Gannett shall be the survivor corporation.

                Section 6.3     Shareholders’ Equity. Permit Gannett’s Total
Shareholders’ Equity at any time to be less than $3,500,000,000.

ARTICLE VII

Events of Default

                Section 7.1     Events of Default. The following are Events of Default:

          (a)     Gannett shall fail to pay when due in accordance with the terms
hereof (i) any principal on any Loan and such failure shall have
continued for a period of three Business Days or (ii) any interest on any
Loan, or any other amount payable hereunder, and such failure shall have
continued for a period of five Business Days.

          (b)     Gannett shall (A) default in any payment of principal or of
interest on any other obligation for borrowed money in excess of
$50,000,000 beyond any grace period provided with respect thereto, or (B)
default in the performance of any other agreement, term or condition
contained in any agreement under which any such obligation is created, if
the effect of such default is to cause such obligation to be accelerated
or become due prior to its stated maturity.

 

23

          (c)     Any representation or warranty herein made by Gannett, or any
certificate or financial statement furnished by Gannett pursuant to the
provisions hereof, shall prove to have been false or misleading in any
material respect as of the time made or furnished and Gannett shall fail
to take corrective measures satisfactory to the Required Lenders within
30 days after notice thereof to Gannett from any Lender or the
Administrative Agent or by Gannett to the Administrative Agent.

          (d)     Gannett shall default in the performance of any other covenant,
condition or provision hereof and such default shall not be remedied to
the satisfaction of the Required Lenders within a period of 30 days after
notice thereof to Gannett from any Lender or the Administrative Agent or
by Gannett to the Administrative Agent.

          (e)     Gannett or any Subsidiary with more than $100,000,000 in revenue
in the preceding fiscal year (other than Gannett Satellite Information
Network, Inc.) shall (A) apply for or consent to the appointment of a
receiver, trustee, or liquidator of Gannett, (B) make a general
assignment for the benefit of creditors, or (C) file a voluntary petition
in bankruptcy or a petition or an answer seeking reorganization or an
arrangement with creditors or take advantage of any insolvency law or an
answer admitting the material allegations of a petition filed against
Gannett in any bankruptcy, reorganization or insolvency proceeding, or
corporate action shall be taken by Gannett for the purpose of affecting
any of the foregoing.

          (f)     An order, judgment or decree shall be entered, without the
application, approval or consent of Gannett, by any court of competent
jurisdiction, approving a petition seeking reorganization of Gannett or
appointing a receiver, trustee or liquidator of Gannett or of all or a
substantial part of the assets of Gannett, and such order, judgment or
decree shall continue unstayed and in effect for any period of ninety
(90) consecutive days.

          (g)     One or more final, non-appealable judgments for the payment of
money in an aggregate amount in excess of $100,000,000 shall be rendered
against Gannett, any Subsidiary or any combination thereof, and the same
shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed or bonded;

                Section 7.2     Remedies. If an Event of Default shall occur and be
continuing:

          (a)     If an Event of Default specified in Section 7.1(e) or (f) shall
occur and be continuing, automatically the Commitments shall immediately
terminate and the Loans (with accrued interest thereon) and all other
amounts owing under this Agreement shall immediately become due and
payable.

          (b)     If an Event of Default other than those specified in Section
7.1(e) or (f) shall occur and be continuing, either or both of the
following actions may be taken: (i) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to Gannett,
declare Commitments to be terminated forthwith, whereupon the Commitments
shall immediately terminate; and (ii) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to Gannett,
declare the Loans (with accrued interest thereon) and all other amounts
owing under this Agreement to be due and payable forthwith, whereupon the
same shall immediately become due and payable.

          (c)     Except as expressly provided above in this Article, presentment,
demand, protest and all other notices of any kind are hereby expressly
waived by Gannett.

 

24

          (d)     Any Lender giving any notice to Gannett under this Article 7
shall simultaneously give like notice to the Administrative Agent.

ARTICLE VIII

The Administrative Agent

                Section 8.1     Appointment. Each Lender hereby irrevocably designates
and appoints the Administrative Agent as the agent of such Lender under this
Agreement, and each such Lender irrevocably authorizes the Administrative
Agent, in such capacity, to take such action on its behalf under the provisions
of this Agreement and to exercise such powers and perform such duties as are
expressly delegated to the Administrative Agent by the terms of this Agreement,
together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

                Section 8.2     Delegation of Duties. The Administrative Agent may
execute any of its duties under this Agreement by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

                Section 8.3     Exculpatory Provisions. Neither the Administrative Agent nor any of its respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall
be (i) liable for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with this Agreement (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties
made by Gannett or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or for any failure of Gannett
to perform its obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as
to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement, or to inspect the properties, books or records
of Gannett.

                Section 8.4     Reliance by Administrative Agent. The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any instrument, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to Gannett), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent may deem and treat the payee of any promissory note as the
owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent. The Administrative Agent shall be fully justified in failing or
refusing to take any action under this Agreement unless it shall first receive
such advice or concurrence of the Required Lenders (or, if so specified by this
Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent shall

 

25

in all cases be fully protected in acting, or in refraining from acting, under this Agreement in
accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.

                Section 8.5     Notice of Default. The Administrative Agent shall
not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default unless the Administrative Agent has received notice from a
Lender or Gannett referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event
that the Administrative Agent receives such a notice, the Administrative Agent
shall give notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders (or, if so specified by this
Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

                Section 8.6     Non-Reliance on Administrative Agent and Other Lenders. Each
Lender expressly acknowledges that neither the Administrative Agent
nor any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to
it and that no act by the Administrative Agent hereafter taken, including
any review of the affairs of a Gannett or any affiliate of Gannett, shall
be deemed to constitute any representation or warranty by the Administrative
Agent to any Lender. Each Lender represents to the Administrative Agent that
it has, independently and without reliance upon the Administrative Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of
Gannett and its affiliates and made its own decision to make its Loans
hereunder and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance upon the Administrative Agent or any
other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement, and to make
such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of
Gannett and its affiliates. Except for notices, reports and other documents
expressly required to be furnished to the Lenders by the Administrative Agent
hereunder, the Administrative Agent shall not have any duty or responsibility
to provide any Lender with any credit or other information concerning the
business, operations, property, condition (financial or otherwise), prospects
or creditworthiness of Gannett or any affiliate of Gannett that may come into
the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

                Section 8.7     Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
Gannett and without limiting the obligation of Gannett to do so), ratably
according to their respective Aggregate Commitment Percentages in effect on the
date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with such Aggregate Commitment Percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against the Administrative
Agent in any way relating to or arising out of, the Commitments, this Agreement
or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by
the Administrative Agent under or in connection with any of the foregoing; provided that no

 

26

Lender shall be liable for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the Administrative Agent’s gross negligence or willful misconduct. The
agreements in this Section shall survive the payment of the Loans and all other
amounts payable hereunder.

                Section 8.8     Agent in Its Individual Capacity. The Administrative
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of business with Gannett as though the Administrative Agent
were not the Administrative Agent. With respect to its Loans made or renewed
by it, the Administrative Agent shall have the same rights and powers under
this Agreement as any Lender and may exercise the same as though it were not
the Administrative Agent, and the terms “Lender” and “Lenders” shall include
the Administrative Agent in its individual capacity.

                Section 8.9     Successor Administrative Agent. The Administrative
Agent may resign as Administrative Agent upon 15 Business Days’ notice to the
Lenders and Gannett. If the Administrative Agent shall resign as
Administrative Agent under this Agreement, then (a) so long as an Event of Default under
Section 7.1(a), 7.1(e) or 7.1(f) with respect to Gannett shall not have
occurred and be continuing, Gannett shall appoint from among the Lenders a
successor agent for the Lenders, which successor agent shall be subject to
approval by the Required Lenders (which approval shall not be unreasonably
withheld, conditioned or delayed) and (b) if an Event of Default under Section
7.1(a), 7.1(e) or 7.1(f) with respect to Gannett shall have occurred and be
continuing, the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders, whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans. If no successor
agent has accepted appointment as Administrative Agent by the date that is 15
Business Days following a retiring Administrative Agent’s notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Article 8 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Administrative Agent under this
Agreement.

ARTICLE IX

Miscellaneous

                Section 9.1     Amendments and Waivers. Neither this Agreement nor
any terms hereof may be amended, supplemented or modified except in accordance
with the provisions of this Section 9.1. The Required Lenders and Gannett may,
or, with the written consent of the Required Lenders, the Administrative Agent
and Gannett may, from time to time, (a) enter into written amendments,
supplements or modifications hereto for the purpose of adding any provisions to
this Agreement or changing in any manner the rights of the Lenders or of
Gannett hereunder or thereunder or (b) waive, on such terms and conditions as
the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or any
Default or Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement or
modification shall (i) forgive the principal amount or extend the final
scheduled date of maturity of any Loan, extend the scheduled date of any
amortization payment in respect of any Loan, reduce the stated rate of any
interest or fee payable hereunder (except (x) in connection with the waiver of applicability of

 

27

any post-default increase in interest rates, which waiver shall be effective with the consent of the Required Lenders and (y) that any
amendment or modification of defined terms used in the financial covenants in
this Agreement shall not constitute a reduction in the rate of interest or fees
for purposes of this clause (i)) or extend the scheduled date of any payment
thereof, in each case without the written consent of each Lender directly
affected thereby; (ii) eliminate or reduce the voting rights of any Lender
under this Section 9.1 or extend or increase the Commitment of any Lender, in
each case without the written consent of such Lender; (iii) reduce any
percentage specified in the definition of Required Lenders, consent to the
assignment or transfer by Gannett of any of its rights and obligations under
this Agreement, in each case without the written consent of all Lenders; (iv)
amend, modify or waive any provision of Article 8 without the written consent
of the Administrative Agent and any other Agent affected thereby; or (v) amend,
modify or waive any provision of Section 2.12(a) or (b) without the written
consent of each Lender directly affected thereby. Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding on Gannett, the Lenders, the Administrative Agent
and all future holders of the Loans. In the case of any waiver, Gannett, the
Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder, and any Default
or Event of Default waived shall be deemed to be cured and not continuing; but
no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

                For the avoidance of doubt, this Agreement may be amended (or amended and
restated) with the written consent of the Required Lenders, the Administrative
Agent and Gannett (a) to add one or more additional credit facilities to this
Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof (collectively,
the “Additional Extensions of Credit”) to share ratably in the
benefits of this Agreement with the Loans and the accrued interest and fees in
respect thereof and (b) to include appropriately the Lenders holding such
credit facilities in any determination of the Required Lenders.

                Section 9.2     Notices. All notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of
telecopy notice, when received, addressed as follows in the case of Gannett and
the Administrative Agent, and as set forth in an administrative questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:

	 	 	 
	Gannett:

	 	7950 Jones Branch Drive
	

	 	McLean, VA 22107
	

	 	Attention: Vice President & Treasurer
	

	 	Telecopy: 703-854-2047
	

	 	Telephone: 703-854-6248
	 
	 	 
	The Administrative Agent:

	 	Bank One, NA
	

	 	1 Bank One Plaza, Suite IL1-0364
	

	 	Chicago, Illinois 60670
	

	 	Attention: Jason A. Rastovski
	

	 	Telecopy:   312-325-3239
	

	 	Telephone: 312-325-3235

provided that any notice, request or demand to or upon the
Administrative Agent or the Lenders shall not be effective until received.

 

28

                Section 9.3     No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

                Section 9.4     Survival of Representations and Warranties. All representations and warranties made hereunder and in any
document, certificate or statement delivered pursuant hereto or in connection
herewith shall survive the execution and delivery of this Agreement and the
making of the Loans and other extensions of credit hereunder.

                Section 9.5     Payment of Expenses and Taxes. (a) Gannett agrees
(i) to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement and any other documents prepared in connection herewith, and the
consummation and administration of the transactions contemplated hereby and
thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to Gannett prior to
the Effective Date (in the case of amounts to be paid on the Effective Date)
and from time to time thereafter on a quarterly basis or such other periodic
basis as the Administrative Agent shall deem appropriate, (ii) to pay or
reimburse each Lender and the Administrative Agent for all its reasonable costs
and expenses incurred in connection with the enforcement of any rights under
this Agreement and any such other documents, including the reasonable fees and
disbursements of counsel to each Lender and of counsel to the Administrative
Agent, and (iii) to pay, indemnify, and hold each Lender and the Administrative
Agent and their respective officers, directors, employees, affiliates, agents
and controlling persons (each, an “Indemnitee”) harmless from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement and any such other documents,
including any of the foregoing relating to the use of proceeds of the Loans and
the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against Gannett under this Agreement
(all the foregoing in this clause (d), collectively, the “Indemnified Liabilities”), provided, that Gannett shall have no obligation
hereunder to any Indemnitee with respect to Indemnified Liabilities to the
extent such Indemnified Liabilities have resulted from the gross negligence or
willful misconduct of such Indemnitee. All amounts due under this Section
9.5(a) shall be payable not later than 10 days after written demand therefor.

                (b)     Notwithstanding anything to the contrary in Section 9.5(a), (i)
Gannett shall have no such obligation for costs and expenses if Gannett
prevails or successfully defeats any enforcement or collection proceedings; and
(ii) if, by final adjudication in any proceeding not involving Gannett’s
bankruptcy, reorganization or insolvency, the Lenders receive less relief than
claimed, Gannett’s obligation for costs and expenses shall be limited
proportionately to the relief granted to the Lenders.

                (c)     Gannett agrees to pay, indemnify, and hold each Lender and the
Administrative Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement and any such other documents.

 

29

                (d)     If Gannett is required to commence proceedings against any Lender to
enforce its Commitment, the Lender will pay Gannett’s reasonable costs and
expenses (including attorneys’ fees) if Gannett succeeds, or a share of such
reasonable costs and expenses proportionate to Gannett’s recovery if Gannett is
only partially successful.

                (e)     The agreements in this Section 9.5 shall survive repayment of the
Loans and all other amounts payable hereunder.

                Section 9.6     Successors and Assigns; Participations and Assignments. (a) This
Agreement shall be binding upon and inure to the benefit of
Gannett, the Lenders, the Administrative Agent, all future holders of the Loans
and their respective successors and assigns, except that Gannett may not assign
or transfer any of its rights or obligations under this Agreement without the
prior written consent of each Lender.

                (b)     Any Lender other than any Conduit Lender may, without the consent of
Gannett or the Administrative Agent, in accordance with applicable law, at any
time sell to one or more banks, financial institutions or other entities (each,
a “Participant”) participating interests in any Loan owing to such
Lender, any Commitment of such Lender or any other interest of such Lender
hereunder. In the event of any such sale by a Lender of a participating
interest to a Participant, such Lender’s obligations under this Agreement to
the other parties to this Agreement shall remain unchanged, such Lender shall
remain solely responsible for the performance thereof, such Lender shall remain
the holder of any such Loan for all purposes under this Agreement, and Gannett
and the Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement. In no event shall any Participant under any such participation have
any right to approve any amendment or waiver of any provision of this
Agreement, or any consent to any departure by Gannett therefrom, except to the
extent that such amendment, waiver or consent would reduce the principal of, or
interest on, the Loans or any fees payable hereunder, or postpone the date of
the final maturity of the Loans, in each case to the extent subject to such
participation. Gannett agrees that if amounts outstanding under this Agreement
and the Loans are due or unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed
to have the right of setoff in respect of its participating interest in amounts
owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement, provided that, in purchasing such participating interest,
such Participant shall be deemed to have agreed to share with the Lenders the
proceeds thereof as provided in Section 9.7(a) as fully as if it were a Lender
hereunder. Gannett also agrees that each Participant shall be entitled to the
benefits of Sections 2.13, 2.14 and 2.15 with respect to its participation in
the Commitments and the Loans outstanding from time to time as if it was a
Lender; provided that, in the case of Section 2.14, such Participant
shall have complied with the requirements of said Section and provided, further, that no Participant shall be entitled to receive any
greater amount pursuant to any such Section than the transferor Lender would
have been entitled to receive in respect of the amount of the participation
transferred by such transferor Lender to such Participant had no such transfer
occurred.

                (c)     Any Lender other than any Conduit Lender (an “Assignor”) may,
in accordance with applicable law, at any time and from time to time assign to
any Lender or, with the consent of Gannett and the Administrative Agent (which,
in each case, shall not be unreasonably withheld, delayed or conditioned; it
being understood that (i) the Administrative Agent and each Lender effecting an
assignment to any Person other than a Lender should notify the Borrower as
promptly as possible of any request for assignment and the Borrower, in turn,
should promptly consider such request for assignment; and (ii) Gannett’s
consent shall not be considered to be unreasonably withheld, delayed or
conditioned if Gannett withholds, delays or conditions its consent because,
among other factors, it is concerned about a

 

30

potential Assignee’s capital adequacy, liquidity or ability to perform its obligations under this
Agreement), to any Lender Affiliate, an additional bank, financial institution
or other entity (an “Assignee”) all or any part of its rights and
obligations under this Agreement pursuant to an Assignment and Acceptance,
executed by such Assignee, such Assignor and any other Person whose consent is
required pursuant to this paragraph, and delivered to the Administrative Agent
for its acceptance and recording in the Register; provided that,
unless otherwise agreed by Gannett and the Administrative Agent, no such
assignment to an Assignee (other than any Lender or any Lender
Affiliate) shall be in an aggregate principal amount of less than
$10,000,000, in each case except in the case of an assignment of all of a
Lender’s interests under this Agreement. For purposes of the proviso contained
in the preceding sentence, the amount described therein shall be aggregated in
respect of each Lender and its Lender Affiliates, if any. Upon such execution,
delivery, acceptance and recording, from and after the effective date
determined pursuant to such Assignment and Acceptance, (x) the Assignee
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender
hereunder with a Commitment and/or Loans as set forth therein, and (y) the
Assignor thereunder shall, to the extent provided in such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of an Assignor’s rights and
obligations under this Agreement, such Assignor shall cease to be a party
hereto). Notwithstanding any provision of this Section 9.6, the consent of
Gannett shall not be required for any assignment that occurs when an Event of
Default shall have occurred and be continuing. Notwithstanding the foregoing,
any Conduit Lender may assign at any time to its designating Lender hereunder
without the consent of Gannett or the Administrative Agent any or all of the
Loans it may have funded hereunder and pursuant to its designation agreement
and without regard to the limitations set forth in the first sentence of this
Section 9.6(c).

                (d)     The Administrative Agent shall, on behalf of Gannett, maintain at its
address referred to in Section 9.2 a copy of each Assignment and Acceptance
delivered to it and a register (the “Register”) for the recordation of
the names and addresses of the Lenders and the Commitment of, and the principal
amount of the Loans owing to, each Lender from time to time. The entries in
the Register shall be conclusive, in the absence of manifest error, and
Gannett, the Administrative Agent and the Lenders shall treat each Person whose
name is recorded in the Register as the owner of the Loans and any promissory
notes evidencing the Loans recorded therein for all purposes of this Agreement.
Any assignment of any Loan, whether or not evidenced by a promissory note,
shall be effective only upon appropriate entries with respect thereto being
made in the Register. Any assignment or transfer of all or part of a Loan
evidenced by a promissory note shall be registered on the Register only upon
surrender for registration of assignment or transfer of the promissory note
evidencing such Loan, accompanied by a duly executed Assignment and Acceptance,
and thereupon one or more new promissory notes shall be issued to the
designated Assignee.

                (e)     Upon its receipt of an Assignment and Acceptance executed by an
Assignor, an Assignee and any other Person whose consent is required by Section
9.6(c), together with payment to the Administrative Agent of a registration and
processing fee of $3,500 (except that no such registration and processing fee
shall be payable in the case of an Assignee which is a Lender Affiliate of the
relevant Assignor), the Administrative Agent shall (i) promptly accept such
Assignment and Acceptance and (ii) record the information contained therein in
the Register on the effective date determined pursuant thereto.

                (f)     For avoidance of doubt, the parties to this Agreement acknowledge that
the provisions of this Section 9.6 concerning assignments relate only to
absolute assignments and that such provisions do not prohibit assignments
creating security interests, including any pledge or assignment by a Lender to
secure obligations to a Federal Reserve Bank in accordance with applicable law; provided
that no such pledge or assignment shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

31

                (g)     Gannett, upon receipt of written notice from the relevant Lender,
agrees to issue a promissory note to any Lender requiring such a note to
facilitate transactions of the type described in paragraph (f) above.

                (h)     Each of Gannett, each Lender and the Administrative Agent hereby
confirms that it will not institute against a Conduit Lender or join any other
Person in instituting against a Conduit
Lender any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding under any state bankruptcy or similar law, for one year
and one day after the payment in full of the latest maturing commercial paper
note issued by such Conduit Lender; provided, however, that each
Lender designating any Conduit Lender hereby agrees to indemnify, save and hold
harmless each other party hereto for any loss, cost, damage or expense arising
out of its inability to institute such a proceeding against such Conduit
Lender.

                Section 9.7     Adjustments; Set-off. (a) Except to the extent that
this Agreement expressly provides for payments to be allocated to a particular
Lender, if any Lender (a “Benefited Lender”) shall, at any time after
the Loans and other amounts payable hereunder shall immediately become due and
payable pursuant to Section 7.2, receive any payment of all or part of the
Obligations owing to it, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 7.1(f), or otherwise), in a greater
proportion than any such payment to or collateral received by any other Lender,
if any, in respect of the obligations owing to such other Lender, such
Benefited Lender shall purchase for cash from the other Lenders a participating
interest in such portion of the Obligations owing to each such other Lender, or
shall provide such other Lenders with the benefits of any such collateral, as
shall be necessary to cause such Benefited Lender to share the excess payment
or benefits of such collateral ratably with each of the Lenders; provided,
 however, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefited Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent
of such recovery, but without interest.

                (b)     In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to Gannett, any such
notice being expressly waived by Gannett to the extent permitted by applicable
law, upon any amount becoming due and payable by Gannett hereunder (whether at
the stated maturity, by acceleration or otherwise), to set off and appropriate
and apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of Gannett, as the case may be. Each Lender agrees promptly to
notify Gannett and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

                Section 9.8     Counterparts. This Agreement may be executed by one
or more of the parties to this Agreement on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement
signed by all the parties shall be lodged with Gannett and the Administrative
Agent.

                Section 9.9     Severability. Any provision of this Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such

 

32

prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                Section 9.10     Integration. This Agreement represents the entire
agreement of Gannett, the Administrative Agent and the Lenders with respect to
the subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender
relative to the subject matter hereof not expressly set forth or referred to
herein.

                Section 9.11     GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                Section 9.12     Submission To Jurisdiction; Waivers. Gannett hereby
irrevocably and unconditionally:

          (a)     submits for itself and its property in any legal action or
proceeding relating to this Agreement, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

          (b)     consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not
to plead or claim the same;

          (c)     agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to Gannett
at its address set forth in Section 9.2 or at such other address of which
the Administrative Agent shall have been notified pursuant thereto; and

          (d)     agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction.

                Section 9.13     Acknowledgements. Gannett hereby acknowledges that:

          (a)     it has been advised by counsel in the negotiation, execution and
delivery of this Agreement;

          (b)     neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to Gannett arising out of or in
connection with this Agreement, and the relationship between
Administrative Agent and Lenders, on one hand, and Gannett, on the other
hand, in connection herewith or therewith is solely that of debtor and
creditor; and

          (c)     no joint venture is created hereby or otherwise exists by virtue
of the transactions contemplated hereby among the Lenders or among
Gannett and the Lenders.

                Section 9.14     Confidentiality. Each of the Administrative Agent
and each Lender agrees to keep confidential all non-public information provided
to it by Gannett pursuant to this Agreement; provided that nothing
herein shall prevent the Administrative Agent or any Lender from disclosing any
such information (a) to the Administrative Agent, any other Lender or any
Lender Affiliate

 

33

subject to this Section 9.14, (b) subject to an agreement to
comply with the provisions of this Section, to any actual or prospective
Transferee or any direct or indirect counterparty to any Hedge Agreement (or
any professional advisor to such counterparty), (c) to its employees,
directors, agents, attorneys, accountants and other professional advisors or
those of any of its affiliates, provided that such Persons to whom
disclosure is made will be informed of the confidential nature of such
information and instructed to keep such information confidential, (d) upon the
request or demand of any Governmental Authority or in response to any order of
any court or other Governmental Authority, upon prior written notice to Gannett
to the extent reasonably practicable, (e) to the extent required by any
Requirement of Law (other than as provided in clause (d) above) or in
connection with any litigation or similar proceeding, provided that
Gannett shall be promptly notified, to the extent reasonably practicable, prior
to any such disclosure so that Gannett may contest such disclosure or seek
confidential treatment thereof, (f) that has been publicly disclosed, (g) to
any nationally recognized rating agency that requires access to information
about a Lender’s investment portfolio in connection with ratings issued with
respect to such Lender, or (h) in connection with the exercise of any remedy
hereunder.

 

34

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

	 	 	 	 	 
	 	 	GANNETT CO., INC.
	

	 	 	 	 
	

	 	By:
	 	/s/ Michael A. Hart
	

	 	 	 	Name: Michael A. Hart
	

	 	 	 	Title: Vice President and Treasurer
	

	 	 	 	 
	

	 	 	 	 
	 	 	BANK ONE, NA, as Administrative Agent
	

	 	 	 	 
	

	 	By:
	 	/s/ Jason A. Rastovski
	

	 	 	 	Name: Jason A. Rastovski
	

	 	 	 	Title: Associate Director
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	BANK ONE, NA
	

	 	 	 	 
	

	 	 	 	By:/s/ Jason A. Rastovski
	

	 	 	 	Name: Jason A. Rastovski
	

	 	 	 	Title: Associate Director

 

35

SCHEDULE 1.1 to

CREDIT AGREEMENT

Commitments

	 	 	 	 	 
	Lenders
	 	Commitment	 	 
	 
	 	 	 	 
	Bank One, NA
	 	$200,000,000	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$200,000,000	 	 

 

 

EXHIBIT A to the

CREDIT AGREEMENT

FORM OF ADDENDUM

                The undersigned (i) agrees to all of the provisions of the Revolving
Credit Agreement, dated as of February 27, 2004 and effective as of March 15,
2004 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”; terms defined therein being used herein as therein
defined unless otherwise defined), among Gannett Co., Inc., the lenders parties
thereto (the “Lenders”) and Bank One, NA, as Administrative Agent, and
(ii) becomes a party thereto, as a Lender, with a Commitment as set forth
opposite the undersigned Lender’s name on Schedule 1.1 to the Credit Agreement,
as such amount may be changed from time to time as provided in the Credit
Agreement.

	 	 	 	 	 
	 	 	 

	

	 	 	 	(NAME OF LENDER)
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 

	

	 	 	 	Name:
	

	 	 	 	Title:

Dated as of February     , 2004

 

 

EXHIBIT B to the

CREDIT AGREEMENT

FORM OF ASSIGNMENT AND ACCEPTANCE

                Reference is made to the Revolving Credit Agreement, dated as of February
27, 2004 and effective as of March 15, 2004 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”; terms
defined therein being used herein are therein defined unless otherwise
defined), among Gannett Co., Inc., a Delaware corporation (“Gannett”),
the several banks and other financial institutions or entities from time to
time parties thereto (the “Lenders”) and Bank One, NA, as
Administrative Agent.

                The
Assignor identified on Schedule l hereto (the “Assignor”) and the Assignee identified on Schedule l hereto (the “Assignee”) agree as follows:

	 	1.	 	The Assignor hereby irrevocably sells and
assigns to the Assignee without recourse to the Assignor,
and the Assignee hereby irrevocably purchases and assumes
from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the interest
described in Schedule 1 hereto (the “Assigned Interest”) in
and to the Assignor’s rights and
obligations under the Credit Agreement with respect to
those credit facilities contained in the Credit Agreement
as are set forth on Schedule 1 hereto
(individually, an “Assigned Facility”;
collectively, the “Assigned Facilities”), in a
principal amount for each Assigned Facility as set forth on
 Schedule 1 hereto.
	 
	 	2.	 	The Assignor (a) makes no representation or
warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in
connection with the Credit Agreement or with respect to the
execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto, other
than that the Assignor has not created any adverse claim
upon the interest being assigned by it hereunder and that
such interest is free and clear of any such adverse claim;
and (b) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of
Gannett, any of its Subsidiaries or any other obligor or
the performance or observance by Gannett, any of its
Subsidiaries or any other obligor of any of their
respective obligations under the Credit Agreement or any
other instrument or document furnished pursuant hereto or
thereto.
	 
	 	3.	 	The Assignee (a) represents and warrants
that it is legally authorized to enter into this Assignment
and Acceptance; (b) confirms that it has received a copy of
the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant thereto, and
such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to
enter into this Assignment and Acceptance; (c) agrees that
it will, independently and without reliance upon the
Assignor, the Administrative Agent or any other Lender and
based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit
Agreement or any other instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as agent on its
behalf and to exercise such powers and discretion under the
Credit Agreement or any other instrument or document
furnished pursuant hereto or thereto as are delegated to
the Administrative Agent
by the terms thereof, together with such powers as are
incidental thereto; and (e)

 

 

EXHIBIT B to the

CREDIT AGREEMENT

	 	 	 	agrees that it will be bound by
the provisions of the Credit Agreement and will perform in
accordance with its terms all the obligations which by the
terms of the Credit Agreement are required to be performed by
it as a Lender.
	 
	 	4.	 	The effective date of this Assignment and
Acceptance shall be the Effective Date of Assignment
described in Schedule 1 hereto (the “Effective Date”).
Following the execution of this Assignment
and Acceptance, it will be delivered to the Administrative
Agent and to Gannett for their consent (if such consent is
required) and, if such consent is granted, for acceptance
and recording by the Administrative Agent pursuant to the
Credit Agreement, effective as of the Effective Date (which
shall not, unless otherwise agreed to by the Administrative
Agent, be earlier than five Business Days after the date of
such acceptance and recording by the Administrative Agent).
IN THE CASE OF ASSIGNMENTS TO AN ASSIGNEE OTHER THAN AN
EXISTING LENDER OR LENDER AFFILIATE, THE ASSIGNOR AND
ASSIGNEE HEREBY ACKNOWLEDGE THAT THIS ASSIGNMENT SHALL NOT
BE EFFECTIVE UNTIL CONSENT FOR SUCH ASSIGNMENT IS GRANTED
BY GANNETT AND THIS ASSIGNMENT IS SIGNED BY EACH OF GANNETT
AND THE ADMINISTRATIVE AGENT.
	 
	 	5.	 	Upon such consent, acceptance and
recording, from and after the Effective Date, the
Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignee whether
such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make
all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Effective
Date or with respect to the making of this assignment
directly between themselves.
	 
	 	6.	 	From and after the Effective Date, (a) the
Assignee shall be a party to the Credit Agreement and, to
the extent provided in this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and shall
be bound by the provisions thereof and (b) the Assignor
shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights and be released from its
obligations under the Credit Agreement.
	 
	 	7.	 	This Assignment and Acceptance shall be
governed by and construed in accordance with the laws of
the State of New York.

 

 

EXHIBIT B to the

CREDIT AGREEMENT

                IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their
respective duly authorized officers on Schedule 1 hereto.

 

 

EXHIBIT B to the

CREDIT AGREEMENT

Schedule 1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
Percentage Assigned of Facility	 
	 	 	 	 	Principal Amount	 	 	(set forth, to at least 8 decimals, as a	 
	 	Facility Assigned	 	 	Assigned	 	 	percentage of the aggregate Facility)	 
	 	 
Two Year Facility:
 	 	 	 
$
 	 	 	 	 	 	 
%
 	 	 
	 

Effective Date of Assignment:                       , 200_

	 	 	 	 	 
	 	 	[Name of Assignor], as Assignor
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	[Name of Assignee], as Assignee
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 

	

	 	 	 	Name:
	

	 	 	 	Title:

The undersigned hereby consent to the within assignment:

	 	 	 	 	 	 	 
	GANNETT CO., INC.
	 	BANK OF ONE, NA, as

        Administrative Agent
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 

	 	By:
	 	 

	

	 	Name:
	 	 	 	Name:
	

	 	Title:
	 	 	 	Title:

 

 

EXHIBIT C to the

CREDIT AGREEMENT

FORM OF EXEMPTION CERTIFICATE

                Reference is made to the Revolving Credit Agreement, dated as of February
27, 2004 and effective as of March 15, 2004 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”; terms
defined therein being used herein are therein defined unless otherwise
defined), among Gannett Co., Inc., a Delaware corporation (“Gannett”),
the several banks and other financial institutions or entities from time to
time parties thereto and Bank One, NA, as Administrative Agent. [Name of
Non-U.S. Person] (the “Lender”) is providing this certificate pursuant
to subsection 2.14(d) of the Credit Agreement. The Lender hereby represents
and warrants that:

                1.     The Lender is the sole record and beneficial owner of the Loans in
respect of which it is providing this certificate.

                2.     The Lender is not a “bank” for purposes of Section 881(c)(3)(A) of the
Internal Revenue Code of 1986, as amended (the “Code”). In this
regard, the Lender represents and warrants that:

                        (a)     the Lender is not subject to regulatory or other legal requirements as
a bank in any jurisdiction; and

                        (b)     the Lender has not been treated as a bank for purposes of any tax,
securities law or other filing or submission made to any governmental
authority, any application made to a rating agency or qualification for any
exemption from tax, securities law or other legal requirements.

                3.     The Lender meets all of the requirements under Code Section 871(a) or
881(c) to be eligible for a complete exemption from withholding of taxes on
interest payments made to it under the Credit Agreement (i.e., Gannett will not
be required to withhold any amounts under U.S. tax law with respect to such
interest payments), including without limitation that it is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of Gannett
and is not a controlled foreign corporation related to Gannett (within the
meaning of Section 864(d)(4) of the Code).

                4.     The Lender shall promptly notify Gannett and the Administrative Agent
if any of the representations and warranties made herein are no longer true and
correct.

                IN WITNESS WHEREOF, the undersigned has duly executed this certificate as
of the     day of              .

	 	 	 	 	 
	 	 	[NAME OF LENDER]
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 

	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

EXHIBIT D to the

CREDIT AGREEMENT

FORM OF OPINION OF NIXON PEABODY LLP

[Letterhead of Nixon Peabody LLP]

	 	 	 
	 

	 	[DATE]

To the Lenders parties to the Revolving Credit Agreement

dated as of February 27, 2004 and effective as of March 15, 2004,

among Gannett Co., Inc., the Lenders parties thereto and

Bank One, NA, as Administrative Agent

Ladies and Gentlemen:

          We are counsel to Gannett Co., Inc., a Delaware corporation (“Gannett
”), and as such we are familiar with the Revolving Credit Agreement dated
as of February 27, 2004 and effective as of March 15, 2004, among Gannett, the
several lenders from time to time parties thereto (the “Lenders”) and
Bank One, NA, as Administrative Agent (the “Administrative Agent”).
Capitalized terms defined in the Credit Agreement are used herein with the
respective meanings assigned to such terms in the Credit Agreement..

          In connection with this opinion, we have examined, among other documents,
an executed copy of the Credit Agreement and Gannett’s Restated Certificate of
Incorporation, as amended, and By-laws, as amended. Subject to the assumptions
and qualifications contained herein, we also have examined originals or copies,
certified or otherwise identified to our satisfaction, of such other documents,
and made such investigations of law, as we have deemed necessary or appropriate
as a basis for the opinions expressed below. We also have relied upon
certificates and other documents from public officials.

          In rendering the following opinions, we have assumed, without
investigation, the authenticity of any document or other instrument submitted
to us as an original, the conformity to the originals of any document or other
instrument submitted to us as a copy, the legal capacity of natural persons,
and the genuineness of all signatures on such originals or copies.

          We express no opinion herein as to (i) any provisions of the Credit
Agreement which provide for indemnification, waiver or release to the extent
such provisions may be limited or rendered, unenforceable, in whole or in part,
by securities laws, criminal statutes or other laws or the policies underlying
such laws and by the effect of general rules of contract law that limit the
enforceability of provisions releasing, exculpating or exempting a party from,
or requiring indemnification for liability for action or inaction, to the
extent the action or inaction involves gross negligence, recklessness, willful
misconduct or unlawful conduct, or (ii) the waiver of inconvenient forum or any
claim that venue is improper or provisions relating to subject matter
jurisdiction of the courts set forth in the Credit Agreement.

          The phrase “to our knowledge,” when used herein, means that our opinion is
based solely on matters within the actual knowledge of attorneys in the firm
who have been involved in the preparation of this opinion and the Credit
Agreement.

 

 

EXHIBIT D to the

CREDIT AGREEMENT

                Members of our firm involved in the preparation of this opinion are
licensed to practice law in the State of New York and, we do not purport to be
experts on, or to express any opinion herein concerning, any law other than the
laws of the State of New York, the General Corporation Law of the State of
Delaware and the Federal law of the United States.

                Based upon and subject to the foregoing and the other assumptions and
qualifications contained herein, we are of the opinion that:

                1.     Gannett is a corporation duly organized, validly existing and in good
standing under the laws of Delaware and is duly qualified to do business as a
foreign corporation, and Gannett is in good standing in all states in which it
owns substantial properties or in which it conducts substantial business or in
which qualification is necessary in order that the business or financial
condition of Gannett and its Subsidiaries, taken as a whole, be not Materially
adversely affected.

                2.     To our knowledge, there are no actions, suits or proceedings pending or
threatened against or affecting Gannett or any of its Subsidiaries in or before
any court or foreign or domestic government instrumentality, and neither
Gannett nor any of its Subsidiaries are in default in respect of any order of
any such court or governmental instrumentality which, in any such case, in the
opinion of Gannett, are Material.

                3.     Neither the execution and delivery of the Credit Agreement, the
consummation of the transactions therein contemplated nor compliance with the
terms and provisions thereof will conflict with or result in breach of any of
the provisions of the Restated Certificate of Incorporation, as amended, or the
By-Laws, as amended, of Gannett or, to our knowledge and based on reasonable
inquiries made of corporate officers of any law or of any regulation or order
of any court or governmental instrumentality or any material agreement or
instrument by which Gannett is bound or constitute a default thereunder or
result in the creation or imposition of any lien, charge or encumbrance of any
nature whatsoever not permitted under Section 6.1 of the Credit Agreement upon
any of the property of Gannett.

                4.     The execution and delivery of the Credit Agreement and the making of
all Borrowings contemplated or permitted by the provisions thereof have been
duly authorized by all necessary corporate action on the part of Gannett; and
the Credit Agreement has been duly and validly executed and delivered by
Gannett. The Credit Agreement constitutes a valid and legally binding
agreement of Gannett enforceable in accordance with its terms and the
Borrowings when duly made, will constitute valid and legally binding
obligations of Gannett enforceable in accordance with the terms thereof and of
the Credit Agreement, except as limited by applicable bankruptcy, insolvency,
moratorium, reorganization or other laws, judicial decisions or principles of
equity relating to or affecting the enforcement of creditors’ rights or
contractual obligations generally.

                In rendering the foregoing opinions, we have relied upon the certificates
of officers of Gannett as to (i) the nature and location of the property of
Gannett, (ii) the agreements and instruments to which Gannett and/or its
Subsidiaries is a party which are material, and (iii) the existence of Material
pending or threatened actions, suits or proceedings or orders of any court or
governmental instrumentality and other information from such officers. We have
not independently investigated or verified the information represented in such
certificates provided to us and do not opine as to the accuracy thereof.

	 	 	 
	 

	 	Very truly yours,

 

 

EXHIBIT E to the

CREDIT AGREEMENT

FORM OF COMPLIANCE CERTIFICATE

	 	 	 	 
	 	[Use for quarterly report]

	 	The undersigned, an officer of Gannett
Co., Inc. (“Gannett”), has executed this Certificate on
behalf of Gannett pursuant to Section 5.1(a) of the Revolving Credit
Agreement, dated as of February 27, 2004 and effective as of March
15, 2004 (the “Agreement”), among Gannett, the several
banks and other financial institutions or entities from time to time
parties thereto and Bank One, NA, as Administrative Agent. The
undersigned has reviewed Gannett’s activities during the preceding
fiscal quarter, which has consisted solely of a review of the
unaudited consolidated financial statements of Gannett for said fiscal quarter.
	 	

	 	 
	 	[Use for annual report]

	 	The undersigned, an officer of Gannett Co., Inc. (“Gannett”), has executed this Certificate on
behalf of Gannett pursuant to Section 5.1(b) of the Revolving Credit
Agreement, dated as of February 27, 2004 and effective as of March
15, 2004 (the “Agreement”), among Gannett, the several
banks and other financial institutions or entities from time to time
parties thereto and Bank One, NA, as Administrative Agent. The
undersigned has reviewed the activities of Gannett and its
Subsidiaries during the preceding fiscal year, which has consisted
solely of a review of the audited consolidated financial statements
of Gannett for said fiscal year.
	 	

	 	 
	 	[Use for quarterly and annual report]

	 	At               the Total Shareholders’ Equity is                 .

          The undersigned hereby CERTIFIES THAT, based upon the review described
above and a review of the Agreement, nothing came to the undersigned’s
attention which caused the undersigned to believe that (i) Gannett has not
fulfilled all of its obligations under the Agreement or (ii) there has occurred
an Event of Default as defined in said Agreement, or any condition, event or
act, which with notice or lapse of time or both, would constitute an Event of
Default, which has not been cured pursuant to the provisions of the Agreement.

	 	 	 	 	 
	

	 	GANNETT CO., INC.
	 
	 	 	 	 
	 

	 	By:
	 	 

	

	 	 	 	Name:
	

	 	 	 	Title:exv10w2

 

Exhibit 10-2

 

 

 

 

COMPETITIVE ADVANCE AND REVOLVING CREDIT AGREEMENT

among

GANNETT CO., INC.,

The Several Lenders

from Time to Time Parties Hereto,

BANK OF AMERICA, N.A.,

as Administrative Agent,

JPMORGAN CHASE BANK,

as Syndication Agent,

and

LLOYDS TSB BANK PLC AND SUNTRUST BANK,

as Documentation Agents

Dated as of February 27, 2004

Effective Date as of March 15, 2004

 

 

 

BANC OF AMERICA SECURITIES LLC

and

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arrangers and Joint Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I Definitions	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 1.1
	 	Defined Terms
	 	 	1	 
	

	 	Section 1.2
	 	Other Definitional Provisions.
	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II Amount and Terms of the Facilities	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 2.1
	 	Revolving Credit Commitments
	 	 	11	 
	

	 	Section 2.2
	 	Procedure for Revolving Credit Borrowing
	 	 	12	 
	

	 	Section 2.3
	 	Competitive Borrowings.
	 	 	12	 
	

	 	Section 2.4
	 	Termination or Reduction of Commitments
	 	 	15	 
	

	 	Section 2.5
	 	Optional Prepayments
	 	 	15	 
	

	 	Section 2.6
	 	Conversion and Continuation Options
	 	 	16	 
	

	 	Section 2.7
	 	Minimum Amounts of Eurodollar Borrowings
	 	 	16	 
	

	 	Section 2.8
	 	Repayment of Loans; Evidence of Debt
	 	 	16	 
	

	 	Section 2.9
	 	Interest Rates and Payment Dates
	 	 	17	 
	

	 	Section 2.10
	 	Fees
	 	 	18	 
	

	 	Section 2.11
	 	Computation of Interest and Fees
	 	 	18	 
	

	 	Section 2.12
	 	Inability to Determine Interest Rate
	 	 	19	 
	

	 	Section 2.13
	 	Pro Rata Treatment and Payments
	 	 	19	 
	

	 	Section 2.14
	 	Requirements of Law
	 	 	20	 
	

	 	Section 2.15
	 	Taxes
	 	 	21	 
	

	 	Section 2.16
	 	Indemnity
	 	 	23	 
	

	 	Section 2.17
	 	Change of Lending Office
	 	 	23	 
	

	 	Section 2.18
	 	Replacement of Lenders
	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III Representations and Warranties	 	 	24	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 3.1
	 	Organization; Powers
	 	 	24	 
	

	 	Section 3.2
	 	Financial Condition; No Material Adverse Effect
	 	 	24	 
	

	 	Section 3.3
	 	Properties
	 	 	24	 
	

	 	Section 3.4
	 	Litigation
	 	 	24	 
	

	 	Section 3.5
	 	No Conflicts
	 	 	25	 
	

	 	Section 3.6
	 	Taxes
	 	 	25	 
	

	 	Section 3.7
	 	Authorization; Enforceability
	 	 	25	 
	

	 	Section 3.8
	 	Environmental Matters
	 	 	25	 
	

	 	Section 3.9
	 	No Change
	 	 	25	 
	

	 	Section 3.10
	 	Federal Regulations
	 	 	25	 
	

	 	Section 3.11
	 	No Default
	 	 	25	 
	

	 	Section 3.12
	 	Investment Company Act; Federal Regulations
	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV Conditions	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V Affirmative Covenants.	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 5.1
	 	Financial Statements and Other Information
	 	 	27	 
	

	 	Section 5.2
	 	Payment of Obligations
	 	 	27	 

 ii 

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	Section 5.3
	 	Books and Records; Inspection Rights
	 	 	27	 
	

	 	Section 5.4
	 	Notices of Material Events
	 	 	27	 
	

	 	Section 5.5
	 	Existence; Conduct of Business
	 	 	28	 
	

	 	Section 5.6
	 	Maintenance of Properties; Insurance
	 	 	28	 
	

	 	Section 5.7
	 	Compliance with Laws
	 	 	28	 
	

	 	Section 5.8
	 	Debt Ratings
	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI Negative Covenants	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 6.1
	 	Liens
	 	 	28	 
	

	 	Section 6.2
	 	Fundamental Changes
	 	 	29	 
	

	 	Section 6.3
	 	Shareholders’ Equity
	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII Events of Default	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 7.1
	 	Events of Default
	 	 	29	 
	

	 	Section 7.2
	 	Remedies
	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII The Administrative Agent	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 8.1
	 	Appointment
	 	 	31	 
	

	 	Section 8.2
	 	Delegation of Duties
	 	 	31	 
	

	 	Section 8.3
	 	Exculpatory Provisions
	 	 	31	 
	

	 	Section 8.4
	 	Reliance by Administrative Agent
	 	 	31	 
	

	 	Section 8.5
	 	Notice of Default
	 	 	32	 
	

	 	Section 8.6
	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	32	 
	

	 	Section 8.7
	 	Indemnification
	 	 	32	 
	

	 	Section 8.8
	 	Agent in Its Individual Capacity
	 	 	33	 
	

	 	Section 8.9
	 	Successor Administrative Agent
	 	 	33	 
	

	 	Section 8.10
	 	Syndication Agent and Documentation Agent
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX Miscellaneous	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	

	 	Section 9.1
	 	Amendments and Waivers
	 	 	33	 
	

	 	Section 9.2
	 	Notices
	 	 	34	 
	

	 	Section 9.3
	 	No Waiver; Cumulative Remedies
	 	 	35	 
	

	 	Section 9.4
	 	Survival of Representations and Warranties
	 	 	35	 
	

	 	Section 9.5
	 	Payment of Expenses and Taxes
	 	 	35	 
	

	 	Section 9.6
	 	Successors and Assigns; Participations and Assignments
	 	 	36	 
	

	 	Section 9.7
	 	Adjustments; Set-off
	 	 	38	 
	

	 	Section 9.8
	 	Counterparts
	 	 	39	 
	

	 	Section 9.9
	 	Severability
	 	 	39	 
	

	 	Section 9.10
	 	Integration
	 	 	39	 
	

	 	Section 9.11
	 	GOVERNING LAW
	 	 	39	 
	

	 	Section 9.12
	 	Submission To Jurisdiction; Waivers
	 	 	39	 
	

	 	Section 9.13
	 	Acknowledgements
	 	 	40	 
	

	 	Section 9.14
	 	Confidentiality
	 	 	40	 

 iii 

 

 

SCHEDULES

	 	 	 
	1.1

	 	Commitments

EXHIBITS

	 	 	 
	A

	 	Form of Addendum
	B

	 	Form of Assignment and Acceptance
	C-1

	 	Form of Competitive Bid Request
	C-2

	 	Form of Invitation for Competitive Bids
	C-3

	 	Form of Competitive Bid
	C-4

	 	Form of Competitive Bid Accept/Reject Letter
	D-1

	 	Form of New Lender Supplement
	D-2

	 	Form of Incremental Facility Activation Notice
	E

	 	Form of Exemption Certificate
	F

	 	Form of Opinion of Nixon Peabody LLP
	G

	 	Form of Compliance Certificate

 iv 

 

 

     COMPETITIVE ADVANCE AND REVOLVING CREDIT AGREEMENT, dated as of February
27, 2004, among GANNETT CO., INC., a Delaware corporation (“Gannett”),
the several banks and other financial institutions from time to time parties to
this Agreement (the “Lenders”), BANK OF AMERICA, N.A., as
administrative agent for the Lenders hereunder (in such capacity, the “
Administrative Agent”), JPMORGAN CHASE BANK, as syndication agent (the
“Syndication Agent”), and LLOYDS TSB BANK PLC and SUNTRUST BANK, as
documentation agents (the “Documentation Agents”).

     The parties agree as follows:

ARTICLE I

Definitions

                Section 1.1     Defined Terms. The following words and terms shall have the
following meanings in this Agreement:

                “ABR”: for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greater of (a) the Prime Rate
in effect on such day and (b) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. If for any reason the Administrative Agent shall
have determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any reason,
the ABR shall be determined without regard to clause (b) of the first sentence
of this definition until the circumstances giving rise to such inability no
longer exist. Any change in the ABR due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective as of the opening of business
on the effective day of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.

                “ABR Loans”: Loans the rate of interest applicable to which is
based upon the ABR.

                “Addendum”: an instrument, substantially in the form of Exhibit
A, by which a Lender becomes a party to this Agreement as of the Effective
Date.

                “Aggregate Commitment Percentage”: as to any Lender at any time,
the percentage which such Lender’s Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such
Lender’s Loans then outstanding constitutes of the aggregate principal amount
of the Loans then outstanding).

                “Agreement”: this Competitive Advance and Revolving Credit
Agreement, as amended, supplemented or otherwise modified from time to time.

                “Applicable Margin”: the appropriate rate per annum set forth in
the table below opposite the applicable Facility:

	 	 	 	 	 
	Credit Status	 	364-Day Facility	 	Five-Year Facility
	Credit Status 1

	 	20.00 Basis Points
	 	18.00 Basis Points
	Credit Status 2

	 	19.00 Basis Points
	 	17.00 Basis Points
	Credit Status 3

	 	23.00 Basis Points
	 	21.00 Basis Points
	Credit Status 4

	 	40.00 Basis Points
	 	37.50 Basis Points
	Credit Status 5

	 	47.50 Basis Points
	 	45.00 Basis Points
	Credit Status 6

	 	55.00 Basis Points
	 	50.00 Basis Points

 

2

                “Assignee”: as defined in Section 9.6(c).

                “Assignment and Acceptance”: an Assignment and Acceptance,
substantially in the form of Exhibit B.

                “Basis Point”: 1/100th of one percent.

                “Board”: the Board of Governors of the Federal Reserve System,
or any successor thereto.

                “Borrowing”: a group of Loans of a single Type made by the
Lenders (or, in the case of a Competitive Borrowing, by the Lender or Lenders
whose Competitive Bids have been accepted pursuant to Section 2.3) on a single
date and as to which a single Interest Period is in effect.

                “Borrowing Date”: any Business Day specified by Gannett as a
date on which Gannett requests the relevant Lenders to make Loans hereunder.

                “Business Day”: each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a legal holiday for banks in Dallas, Texas or the State of
New York; provided, that with respect to notices and determinations in
connection with, and payments of principal and interest on, Eurodollar Loans,
such day is also a day for trading by and between banks in Dollar deposits in
the interbank eurodollar market.

                “Code”: the Internal Revenue Code of 1986, as amended from time
to time.

                “Commitment”: as to any Lender, the sum of its 364-Day
Commitment, Five-Year Commitment and commitment under the Incremental Facility,
if any.

                “Commitment Utilization Percentage”: on any day, the percentage
equivalent of a fraction (a) the numerator of which is the sum of the aggregate
outstanding principal amount of all Loans and (b) the denominator of which is
the Total Commitment (or, on any day after termination of the Commitments under
a Facility with outstanding Loans, the Total Commitment in effect immediately
preceding such termination).

                “Competitive Bid”: an offer by a Lender to make a Competitive
Loan pursuant to Section 2.3.

                “Competitive Bid Accept/Reject Letter”: a notification made by
Gannett pursuant to Section 2.3(f) in the form of Exhibit C-4.

                “Competitive Bid Rate”: as to any Competitive Bid made by a
Lender pursuant to Section 2.3, (i) in the case of a Eurodollar Competitive
Loan, the Eurodollar Rate plus (or minus) the Margin, and (ii) in the case of a
Fixed Rate Loan, the fixed rate of interest offered by the Lender making such
Competitive Bid.

                “Competitive Bid Request”: a request made pursuant to Section
2.3(b) in the form of Exhibit C-1.

 

3

                “Competitive Borrowing”: a Borrowing consisting of a Competitive
Loan or concurrent Competitive Loans from the Lender or Lenders whose
Competitive Bids for such Borrowing have been accepted by Gannett under the
bidding procedure described in Section 2.3.

                “Competitive Loan”: a Loan (which shall be a Eurodollar
Competitive Loan or a Fixed Rate Loan) made by a Lender pursuant to the bidding
procedure described in Section 2.3.

                “Conduit Lender”: any special purpose corporation organized and
administered by any Lender for the purpose of making Loans hereunder otherwise
required to be made by such Lender and designated by such Lender in a written
instrument, subject to the consent of the Administrative Agent and Gannett; 
provided, that the designation by any Lender of a Conduit Lender shall not
relieve the designating Lender of any of its obligations to fund a Loan under
this Agreement if, for any reason, its Conduit Lender fails to fund any such
Loan, and the designating Lender (and not the Conduit Lender) shall have the
sole right and responsibility to deliver all consents and waivers required or
requested under this Agreement with respect to its Conduit Lender, and 
provided, further, that no Conduit Lender shall (a) be entitled
to receive any greater amount pursuant to Section 2.14, 2.15, 2.16 or 9.5 than
the designating Lender would have been entitled to receive in respect of the
extensions of credit made by such Conduit Lender or (b) be deemed to have any
Commitment hereunder.

                “Contractual Obligation”: as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

                “Credit Status”: any of Credit Status 1, Credit Status 2, Credit
Status 3, Credit Status 4, Credit Status 5 or Credit Status 6. In determining
whether Credit Status 1, Credit Status 2, Credit Status 3, Credit Status 4,
Credit Status 5 or Credit Status 6 shall apply in any circumstance, if the
applicable ratings by S&P and Moody’s differ, the higher of the two ratings
will be determinative, unless the applicable ratings by S&P and Moody’s are
more than one level apart, in which case the Credit Status one level below the
higher rating will be determinative. In the event that Gannett’s senior
unsecured long-term debt is rated by only one of S&P and Moody’s, then that
single rating shall be determinative. The Borrower shall at all times maintain
a senior unsecured long-term debt rating from either S&P or Moody’s.

                “Credit Status 1” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A+
or a rating by Moody’s of Gannett’s senior unsecured long-term debt of at least
A1.

                “Credit Status 2” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A
but lower than A+ or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least A2 but lower than A1.

                “Credit Status 3” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least A-
but lower than A or a rating by Moody’s of Gannett’s senior unsecured long-term
debt of at least A3 but lower than A2.

                “Credit Status 4” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least
BBB+ but lower than A- or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least Baa1 but lower than A3.

 

4

                “Credit Status 5” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of at least BBB
but lower than BBB+ or a rating by Moody’s of Gannett’s senior unsecured
long-term debt of at least Baa2 but lower than Baa1.

                “Credit Status 6” shall exist upon the occurrence of the higher
of a rating by S&P of Gannett’s senior unsecured long-term debt of lower than
BBB or a rating by Moody’s of Gannett’s senior unsecured long-term debt of
lower than Baa2.

                “Default”: any of the events specified in Section 7.1, whether
or not any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.

                “Dollars” and “$”: dollars in lawful currency of the
United States of America.

                “Effective Date”: the date identified by Gannett in a written
notice to the Administrative Agent, which date shall be at least one Business
Day after receipt by the Administrative Agent of such notice and shall, in any
case, occur no later than March 15, 2004.

                “Environmental Laws”: any and all federal, state, local and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
other governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or other
remediation thereof.

                “Eurocurrency Reserve Requirements”: for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the maximum rates
(expressed as a decimal fraction) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and emergency
reserves under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
liabilities” in Regulation D of the Board) maintained by a member bank of such
System.

                “Eurodollar Base Rate”: with respect to each day during each
Interest Period pertaining to a Eurodollar Loan, the rate per annum determined
on the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing
on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two Business
Days prior to the beginning of such Interest Period. In the event that such
rate does not appear on Page 3750 of the Dow Jones Markets screen (or otherwise
on such screen), the “Eurodollar Base Rate” shall be determined by
reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Administrative Agent or, in the
absence of such availability, by reference to the rate at which the
Administrative Agent is offered Dollar deposits at or about 11:00 A.M., Dallas,
Texas time, two Business Days prior to the beginning of such Interest Period in
the interbank eurodollar
market where its eurodollar and foreign currency and exchange operations
are then being conducted for delivery on the first day of such Interest Period
for the number of days comprised therein.

                “Eurodollar Borrowing”: a Borrowing comprised of Eurodollar
Loans.

 

5

                “Eurodollar Competitive Loan”: any Competitive Loan bearing
interest at a rate determined by reference to the Eurodollar Rate.

                “Eurodollar Loan”: any Eurodollar Competitive Loan or Eurodollar
Revolving Credit Loan.

                “Eurodollar Rate”: with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

                    Eurodollar Base Rate                    

1.00 — Eurocurrency Reserve Requirements

                “Eurodollar Revolving Credit Loan”: any Revolving Credit Loan
bearing interest at a rate determined by reference to the Eurodollar Rate.

                “Event of Default”: any of the Events of Default specified in
Section 7.1 of this Agreement.

                “Excess Utilization Day”: each day on which the Commitment
Utilization Percentage exceeds 50%.

                “Extended Date”: as defined in Section 2.8(b) of this Agreement.

                “Extended Loans”: as defined in Section 2.8(b) of this
Agreement.

                “Facility”: each of the 364-Day Facility, the Five-Year Facility
and the Incremental Facility.

                “Federal Funds Effective Rate”: for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on
the next succeeding Business Day by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day of such rates on such transactions
received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it.

                “Five-Year Available Commitment”: as to any Five-Year Lender at
any time, the excess, if any, of such Five-Year Lender’s Five-Year Commitment
over such Five-Year Lender’s Five-Year Loans.

                “Five-Year Commitment”: as to any Lender, the obligation of such
Lender, if any, to make Five-Year Loans in an aggregate principal and/or face
amount not to exceed the amount set forth under the heading “Five-Year
Commitment” opposite such Lender’s name on Schedule 1.1 or in the Assignment
and Acceptance or New Lender Supplement pursuant to which such Lender became a
party hereto, as the same may be changed from time to time pursuant to the
terms hereof.

                “Five-Year Commitment Percentage”: as to any Five-Year Lender at
any time, the percentage which such Five-Year Lender’s Five-Year Commitment
then constitutes of the aggregate Five-Year Commitments (or, at any time after
the Five-Year Commitments shall have expired or terminated, the percentage
which the aggregate principal amount of such Five-Year Lender’s Five-Year

 

6

Loans
then outstanding constitutes of the aggregate principal amount of the Five-Year
Loans then outstanding).

                “Five-Year Commitment Period”: the period from and including the
Effective Date to the Five-Year Termination Date.

                “Five-Year Competitive Loans”: Competitive Loans made under the
Five-Year Facility.

                “Five-Year Facility”: the Five-Year Commitments and the Loans
made thereunder.

                “Five-Year Lender”: each Lender that has a Five-Year Commitment
or that holds Five-Year Loans.

                “Five-Year Loans”: as defined in Section 2.1(b).

                “Five-Year Termination Date”: the fifth anniversary of the
Effective Date.

                “Fixed Rate Borrowing”: a Borrowing comprised of Fixed Rate
Loans.

                “Fixed Rate Loan”: any Competitive Loan bearing interest at a
fixed percentage rate per annum specified by the Lender making such Loan in its
Competitive Bid.

                “GAAP”: generally accepted accounting principles in the United
States as in effect from time to time and consistent with those used in the
preparation of the most recent audited financial statements referred to in
Section 3.2. In the event that any “Accounting Change” (as defined below)
shall occur and such change results in a material change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
Gannett and the Administrative Agent agree to enter into negotiations in order
to amend such provisions of this Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Gannett’s financial condition shall be the same after such Accounting Changes
as if such Accounting Changes had not been made. Until such time as such an
amendment shall have been executed and delivered by Gannett, the Administrative
Agent and the Required Lenders, all financial covenants, standards and terms in
this Agreement shall continue to be calculated or construed as if such
Accounting Changes had not occurred. “Accounting Changes” refers to changes in
accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the
Securities and Exchange Commission.

                “Governmental Authority”: any nation or government, any state or
other political subdivision thereof and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government.

                “Incremental Facility Activation Notice”: a notice substantially
in the form of Exhibit D-2.

                “Incremental Facility”: as defined in Section 2.1(d).

                “Incremental Facility Closing Date”: any Business Day designated
as such in an Incremental Facility Activation Notice.

 

7

                “Incremental Facility Commitment”: as to any Lender, the
obligation of such Lender, if any, to make Incremental Loans in an aggregate
principal amount not to exceed the amount set forth in the applicable
Incremental Facility Activation Notice or in the Assignment and Acceptance or
New Lender Supplement pursuant to which such Lender became a party hereto, as
the same may be changed from time to time pursuant to the terms hereof.

                “Incremental Facility Lenders”: (a) on any Incremental Facility
Closing Date relating to Incremental Loans, the Lenders signatory to the
relevant Incremental Facility Activation Notice and (b) thereafter, each Lender
that is a holder of an Incremental Loan.

                “Incremental Facility Maturity Date”: with respect to the
Incremental Loans, the maturity date specified in such Incremental Facility
Activation Notice, which date shall be either (a) the date that is 364 days
after the Incremental Facility Closing Date or (b) a date at least six months
after the final maturity of the Five-Year Loans.

                “Incremental Loans”: as defined in Section 2.1(d).

                “Interest Payment Date”: (a) as to any ABR Loan, the last day of
each March, June, September and December to occur while such Loan is
outstanding and on the date such Loan is paid in full, (b) as to any Eurodollar
Loan or Fixed Rate Loan, the last day of the Interest Period applicable thereto
and (c) as to any Eurodollar Loan or Fixed Rate Loan having an Interest Period
longer than three months or 90 days, as the case may be, each day which is
three months or 90 days, respectively, after the first day of the Interest
Period applicable thereto; provided that, in addition to the
foregoing, each of (x) the date upon which both the Commitments have been
terminated and the Loans have been paid in full and (y) the Termination Date
shall be deemed to be an “Interest Payment Date” with respect to any interest
which is then accrued hereunder.

                “Interest Period”: (a) with respect to any Eurodollar Loan:

	(i)	 	initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such
Eurodollar Loan and ending one, two, three or six (or if
available to all the Lenders (or, in the case of Eurodollar
Competitive Loans, the Lender making such Loans) nine) months
thereafter, as selected by Gannett in its notice of borrowing
or notice of conversion, as the case may be, given with
respect thereto; and
	 
	(ii)	 	thereafter, each period commencing on the last day of
the next preceding Interest Period applicable to such
Eurodollar Loan and ending one, two, three or six (or if
available to all the Lenders (or, in the case of Eurodollar
Competitive Loans, the Lender making such Loans) nine) months
thereafter, as selected by Gannett by irrevocable notice to
the Administrative Agent not less than three Business Days
prior to the last day of the then current Interest Period
with respect thereto; and
	 
	(b)	 	with respect to any Fixed Rate Loan, the period
commencing on the Borrowing Date with respect to such Fixed
Rate Loan and ending such number of days thereafter (which
shall be not less than seven days or more than 360 days after
the date of such borrowing) as selected by Gannett in its
Competitive Bid Request given with respect thereto.

provided that all of the foregoing provisions relating to Interest
Periods are subject to the following:

 

8

	(A)	 	if any Interest Period would otherwise end on a day
that is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the
case of an Interest Period pertaining to a Eurodollar Loan,
the result of such extension would be to carry such Interest
Period into another calendar month in which event such
Interest Period shall end on the immediately preceding
Business Day; and
	 
	(B)	 	any Interest Period that begins on the last Business
Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business
Day of a calendar month.

                “Invitation for Competitive Bids”: an invitation made by Gannett
pursuant to Section 2.3(c) in the form of Exhibit C-2.

                “Lender Affiliate”: (a) any affiliate of any Lender, (b) any
Person that is administered or managed by any Lender and that is engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business and (c)
with respect to any Lender which is a fund that invests in commercial loans and
similar extensions of credit, any other fund that invests in commercial loans
and similar extensions of credit and is managed or advised by the same
investment advisor as such Lender or by an affiliate of such Lender or
investment advisor.

                “Lenders”: as defined in the preamble hereto; provided,
that unless the context otherwise requires, each reference herein to the
Lenders shall be deemed to include any Conduit Lender.

                “Lien”: any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the foregoing).

                “Loan”: any loan made by any Lender pursuant to this Agreement.

                “Margin”: as to any Eurodollar Competitive Loan, the margin to
be added to or subtracted from the Eurodollar Rate in order to determine the
interest rate applicable to such Loan, as specified in the Competitive Bid
relating to such Loan.

                “Material”: when used to describe an adverse effect or an event
on Gannett or its Subsidiaries, shall mean a condition, event or act which,
with the giving of notice or lapse of time or both, will constitute a Default
or an Event of Default.

                “Material Adverse Effect”: a Material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of Gannett
and its Subsidiaries taken as a whole or
(b) the validity or enforceability of this Agreement or the material
rights or remedies of the Administrative Agent and the Lenders hereunder.

                “Moody’s”: Moody’s Investors Service, Inc. and its successors;
provided, however, that if Moody’s ceases rating securities
similar to the senior unsecured long-term debt of the Borrower and its ratings
and business with respect to such securities shall not have been transferred to
any successor, then “Moody’s” shall mean any other nationally recognized rating
agency (other than S&P) selected by the

 

9

Borrower and approved by the
Administrative Agent (not to be unreasonably withheld or delayed) that rates
any senior unsecured long-term debt of the Borrower.

                “Net Property, Plant and Equipment”: the amount under that
heading on the consolidated balance sheet of Gannett and its Subsidiaries
prepared in accordance with GAAP.

                “Non-Excluded Taxes”: as defined in Section 2.15(a).

                “Non-U.S. Lender”: as defined in Section 2.15(d).

                “Other Taxes”: any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

                “Participant”: as defined in Section 9.6(b).

                “Person”: an individual, partnership, corporation, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

                “Prime Rate”: the rate of interest per annum publicly announced
from time to time by Bank of America, N.A. as its prime rate in effect at its
principal office in Dallas, Texas (the Prime Rate not being intended to be the
lowest rate of interest charged by Bank of America, N.A. in connection with
extensions of credit to debtors).

                “Register”: as defined in Section 9.6(d).

                “Required Lenders”: at any time, the holders of more than 50% of
the Total Commitments then in effect or, if the Commitments have been
terminated, the Total Extensions of Credit then outstanding.

                “Requirement of Law”: as to any Person, any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

                “Revolving Credit Loans”: as defined in Section 2.1(b), and, in
any event include, any 364-Day Loans that remain outstanding after the 364-Day
Termination Date pursuant to Section 2.8.

                “S&P”: Standard & Poor’s Corporation and its successors; 
provided, however, that if S&P ceases rating securities similar
to the senior unsecured long-term debt of the Borrower and its ratings and
business with respect to such securities shall not have been transferred to any
successor, then “S&P” shall mean any other nationally recognized rating agency
(other
than Moody’s) selected by the Borrower and approved by the Administrative
Agent (not to be unreasonably withheld or delayed) that rates any senior
unsecured long-term debt of the Borrower.

                “Subsidiary”: any corporation the majority of the shares of
voting stock of which at any time outstanding is owned directly or indirectly
by Gannett or by one or more of its other subsidiaries or by Gannett in
conjunction with one or more of its other subsidiaries.

                “Termination Date”: the Five-Year Termination Date and/or the
364-Day Termination Date, as applicable.

 

10

                “364-Day Available Commitment”: as to any 364-Day Lender at any
time, the excess, if any, of such 364-Day Lender’s 364-Day Commitment over such
364-Day Lender’s 364-Day Loans.

                “364-Day Commitment”: as to any Lender, the obligation of such
Lender, if any, to make 364-Day Loans in an aggregate principal and/or face
amount not to exceed the amount set forth under the heading “364-Day
Commitment” opposite such Lender’s name on Schedule 1.1 or in the Assignment
and Acceptance or New Lender Supplement pursuant to which such Lender became a
party hereto, as the same may be changed from time to time pursuant to the
terms hereof.

                “364-Day Commitment Percentage”: as to any 364-Day Lender at any
time, the percentage which such 364-Day Lender’s 364-Day Commitment then
constitutes of the aggregate 364-Day Commitments (or, at any time after the
364-Day Commitments shall have expired or terminated, the percentage which the
aggregate principal amount of such 364-Day Lender’s 364-Day Loans then
outstanding constitutes of the aggregate principal amount of the 364-Day Loans
then outstanding).

                “364-Day Commitment Period”: the period from and including March
15, 2004 to the 364-Day Termination Date.

                “364-Day Competitive Loans”: Competitive Loans made under the
364-Day Facility.

                “364-Day Facility”: the 364-Day Commitments and the Loans made
thereunder.

                “364-Day Lender”: each Lender that has a 364-Day Commitment or
that holds 364-Day Loans.

                “364-Day Loans”: as defined in Section 2.1(a).

                “364-Day Termination Date”: the date which is 364 days after
March 15, 2004; provided that if such date is not a Business Day, the
364-Day Termination Date shall be the Business Day immediately preceding such
date.

                “Total Commitments”: at any time, the aggregate amount of the
Commitments then in effect.

                “Total Extensions of Credit”: at any time, the aggregate amount
of all Loans of the Lenders outstanding at such time.

                “Total Shareholders’ Equity”: the amount appearing under that
heading on the consolidated balance sheet of Gannett and its Subsidiaries,
prepared in accordance with GAAP.

                “Transferee”: any Assignee or Participant.

                “Type”: as to any Revolving Credit Loan, its nature as an ABR
Loan or a Eurodollar Loan, and as to any Competitive Loan, its nature as a
Eurodollar Competitive Loan or a Fixed Rate Loan.

                Section 1.2     Other Definitional Provisions.

                (a)     Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings when used in any certificate or other
document made or delivered pursuant hereto.

                (b)     As used herein, and any certificate or other document made or
delivered pursuant hereto, accounting terms relating to Gannett and its
Subsidiaries not defined in Section 1.1 and accounting

 

11

terms partly defined in
Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

                (c)     The words “hereof”, “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.

                (d)     The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.

ARTICLE II

Amount and Terms of the Facilities

                Section 2.1     Revolving Credit Commitments. (a) Subject to the terms and
conditions hereof, each 364-Day Lender severally agrees to make revolving
credit loans (“364-Day Loans”) to Gannett from time to time during the
364-Day Commitment Period in an aggregate principal amount at any one time
outstanding which does not exceed the amount of such Lender’s 364-Day
Commitment. During the 364-Day Commitment Period, Gannett may use the 364-Day
Commitments by borrowing, prepaying the 364-Day Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof.
Notwithstanding anything to the contrary contained in this Agreement, in no
event (after giving effect to the use of proceeds of any Borrowing) shall (i)
the amount of any Lender’s 364-Day Commitment Percentage of a Borrowing of
364-Day Loans exceed such Lender’s 364-Day Available Commitment at the time of
such Borrowing or (ii) the aggregate amount of 364-Day Credit Loans and 364-Day
Competitive Loans at any one time outstanding exceed the aggregate 364-Day
Commitments then in effect of all Lenders.

                (b)     Subject to the terms and conditions hereof, each Five-Year Lender
severally agrees to make revolving credit loans (“Five-Year Loans”,
and, together with the 364-Day Loans, “Revolving Credit Loans”) to
Gannett from time to time during the Five-Year Commitment Period in an
aggregate principal amount at any one time outstanding which does not exceed
the amount of such Lender’s Five-Year Commitment. During the Five-Year
Commitment Period, Gannett may use the Five-Year Commitments by borrowing,
prepaying the Five-Year Loans in whole or in part, and reborrowing, all in
accordance with the terms and conditions hereof. Notwithstanding anything to
the contrary contained in this Agreement, in no event (after giving effect to
the use of proceeds of any Borrowing) shall (i) the amount of any Lender’s
Five-Year Commitment Percentage of a Borrowing of Five-Year Loans exceed such
Lender’s Five-Year Available Commitment at the time of such Borrowing or (ii)
the aggregate amount of Five-Year Loans and Five-Year Competitive Loans at any
one time outstanding exceed the aggregate Five-Year Commitments then in effect
of all Lenders.

                (c)     The Revolving Credit Loans may from time to time be (i) Eurodollar
Loans, (ii) ABR Loans or (iii) a combination thereof, as determined by Gannett
and notified to the Administrative Agent in accordance with Sections 2.2 and
2.6; provided that no 364-Day Loan shall be made as a Eurodollar Loan
after the day that is one month prior to the 364-Day Termination Date and no
Five-Year Loan shall be made as a Eurodollar Loan after the day that is one
month prior to the Five-Year Termination Date.

                (d)     Gannett (upon receipt of requisite authorization from its Board of
Directors) and any one or more Lenders (including New Lenders) may from time to
time agree that such Lenders shall (x) make available to Gannett an additional
credit facility (the “Incremental Facility” and any loans

 

12

thereunder,
the “Incremental Loans”), which credit facility shall take the form of
either a 364-day revolving credit facility and/or a revolving credit facility
which matures at least six months after the Five-Year Termination Date and/or
(y) increase the amount of their 364-Day Commitment and/or Five-Year
Commitment, or (in the case of a New Lender) make available a 364-Day
Commitment and/or Five-Year Commitment, in any such case by executing and
delivering to the Administrative Agent an Incremental Facility Activation
Notice specifying (i) the aggregate principal amount of such increase and the
Facility or Facilities involved, (ii) the applicable Incremental Facility
Closing Date and (iii) in the case of the Incremental Facility, the Incremental
Facility Maturity Date. Notwithstanding the foregoing, (i) the sum of
aggregate principal amount of the Incremental Facility Commitments, any
increase in the 364-Day Commitments and any increase in the Five-Year
Commitments shall not exceed $1,000,000,000, (ii) no increase pursuant to this
paragraph may be obtained after the occurrence and during the continuation of a
Default or Event of Default and (iii) any increase effected pursuant to this
paragraph shall be in a minimum amount of at least $10,000,000. Any
Incremental Facility shall be governed by this Agreement. No Lender shall have
any obligation to participate in any increase described in this paragraph
unless it agrees to do so in its sole discretion.

                (e)     Any additional bank, financial institution or other entity which, with
the consent of Gannett and the Administrative Agent (which consent shall not be
unreasonably withheld), elects to become a “Lender” under this Agreement in
connection with any transaction described in Section 2.1(d) shall execute a New
Lender Supplement (each, a “New Lender Supplement”), substantially in
the form of Exhibit D-1, whereupon such bank, financial institution or other
entity (a “New Lender”) shall become a Lender for all purposes and to
the same extent as if originally a party hereto and shall be bound by and
entitled to the benefits of this Agreement.

                Section 2.2     Procedure for Revolving Credit Borrowing. Gannett may borrow
Revolving Credit Loans under the Commitments on any Business Day; provided that
Gannett shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 11:00 A.M., Dallas, Texas
time, (a) three Business Days prior to the requested Borrowing Date, if all or
any part of the requested Revolving Credit Loans are to be Eurodollar Loans, or
(b) on the requested Borrowing Date, otherwise), specifying (i) the Facility
under which the Borrowing is to be made, (ii) the amount to be borrowed, (iii)
the requested Borrowing
Date, (iv) whether the Borrowing is to be of Eurodollar Loans, ABR Loans
or a combination thereof and (v) if the Borrowing is to be entirely or partly
of Eurodollar Loans, the respective amounts of each such Type of Loan and the
respective lengths of the initial Interest Periods therefor. Any Loans made on
the Effective Date shall be ABR Loans. Each Borrowing under the Commitments
shall be in an amount equal to $10,000,000 or a multiple of $1,000,000 in
excess thereof. Upon receipt of any such notice from Gannett, the
Administrative Agent shall promptly notify each relevant Lender thereof. Each
relevant Lender will make the amount of its pro rata share of each Borrowing
available to the Administrative Agent for the account of Gannett at the office
of the Administrative Agent specified in Section 9.2 prior to 1:00 P.M.,
Dallas, Texas time, on the Borrowing Date requested by Gannett in funds
immediately available to the Administrative Agent. Such Borrowing will then
immediately be made available to Gannett by the Administrative Agent crediting
the account of Gannett on the books of such office with the aggregate of the
amounts made available to the Administrative Agent by the Lenders and in like
funds as received by the Administrative Agent.

                Section 2.3     Competitive Borrowings.

                (a)     The Competitive Bid Option. In addition to the Revolving
Credit Loans which may be made available pursuant to Section 2.1, Gannett may,
as set forth in this Section 2.3, request the Lenders to make offers to make
Competitive Loans to Gannett. The Lenders may, but shall have no obligation
to, make such offers, and Gannett may, but shall have no obligation to, accept
any such offers in the manner set forth in this Section 2.3.

 

13

                (b)     Competitive Bid Request. When Gannett wishes to request
offers to make Competitive Loans under this Section 2.3, it shall transmit to
the Administrative Agent a Competitive Bid Request to be received no later than
12:00 Noon (Dallas, Texas time) on (x) the fourth Business Day prior to the
Borrowing Date proposed therein, in the case of a Borrowing of Eurodollar
Competitive Loans or (y) the Business Day immediately preceding the Borrowing
Date proposed therein, in the case of a Fixed Rate Borrowing, specifying:

          (i)     the Facility under which the Borrowing is to be made,

          (ii)     the proposed Borrowing Date,

          (iii)     the aggregate principal amount of such Borrowing, which shall
be $10,000,000 or a multiple of $1,000,000 in excess thereof,

          (iv)     the duration of the Interest Period applicable thereto, subject
to the provisions of the definition of Interest Period contained in
Section 1.1, and

          (v)     whether the Borrowing then being requested is to be of
Eurodollar Competitive Loans or Fixed Rate Loans.

A Competitive Bid Request that does not conform substantially to the format of
Exhibit C-1 may be rejected by the Administrative Agent in its sole discretion,
and the Administrative Agent shall promptly notify Gannett of such rejection.
Gannett may request offers to make Competitive Loans for more than one Interest
Period in a single Competitive Bid Request. No Competitive Bid Request shall
be given within three Business Days of any other Competitive Bid Request
pursuant to which Gannett has made a Competitive Borrowing.

                (c)     Invitation for Competitive Bids. Promptly after its receipt
of a Competitive Bid Request (but, in any event, no later than 3:00 P.M.,
Dallas, Texas time, on the date of
such receipt) conforming to the requirements of paragraph (b) above, the
Administrative Agent shall send to each of the relevant Lenders an Invitation
for Competitive Bids which shall constitute an invitation by Gannett to each
such Lender to bid, on the terms and conditions of this Agreement, to make
Competitive Loans pursuant to the Competitive Bid Request.

                (d)     Submission and Contents of Competitive Bids. (i) Each
Lender to which an Invitation for Competitive Bids is sent may submit a
Competitive Bid containing an offer or offers to make Competitive Loans in
response to such Invitation for Competitive Bids. Each Competitive Bid must
comply with the requirements of this paragraph (d) and must be submitted to the
Administrative Agent at its offices specified in Section 9.2 not later than (x)
9:30 A.M. (Dallas, Texas time) on the third Business Day prior to the proposed
Borrowing Date, in the case of a Borrowing of Eurodollar Competitive Loans or
(y) 9:30 A.M. (Dallas, Texas time) on the date of the proposed Borrowing, in
the case of a Fixed Rate Borrowing; provided that any Competitive Bids
submitted by the Administrative Agent in the capacity of a Lender may only be
submitted if the Administrative Agent notifies Gannett of the terms of the
offer or offers contained therein not later than fifteen minutes prior to the
deadline for the other Lenders. A Competitive Bid submitted by a Lender
pursuant to this paragraph (d) shall be irrevocable.

                (ii)     Each Competitive Bid shall be in substantially the form of Exhibit
C-3 and shall specify:

          (A)     the date of the proposed Borrowing and the Facility under which
it is to be made,

 

14

          (B)     the principal amount of the Competitive Loan for which each such
offer is being made, which principal amount (w) may be greater than,
equal to or less than the Commitment of the quoting Lender, (x) must be
in a minimum principal amount of $5,000,000 or a multiple of $1,000,000
in excess thereof, (y) may not exceed the principal amount of Competitive
Loans for which offers were requested and (z) may be subject to a
limitation as to the maximum aggregate principal amount of Competitive
Loans for which offers being made by such quoting Lender may be accepted,

          (C)     in the case of a Borrowing of Eurodollar Competitive Loans, the
Margin offered for each such Competitive Loan, expressed as a percentage
(specified in increments of 1/10,000th of 1%) to be added to or
subtracted from such base rate,

          (D)     in the case of a Fixed Rate Borrowing, the rate of interest per
annum (specified in increments of 1/10,000th of 1%) offered for each such
Competitive Loan, and

          (E)     the identity of the quoting Lender.

A Competitive Bid may set forth up to five separate offers by the quoting
Lender with respect to each Interest Period specified in the related Invitation
for Competitive Bids. Any Competitive Bid shall be disregarded by the
Administrative Agent if the Administrative Agent determines that it:     (A) is
not substantially in the form of Exhibit C-3 or does not specify all of the
information required by Section 2.3(d)(ii); (B) contains qualifying,
conditional or similar language (except for a limitation on the maximum
principal amount which may be accepted); (C) proposes terms other than or in
addition to those set forth in the applicable Invitation for Competitive Bids
or (D) arrives after the time set forth in Section 2.3(d)(i).

                (e)     Notice to Gannett. The Administrative Agent shall promptly
(and, in any event, by 10:00 A.M., Dallas, Texas time) notify Gannett, by
telecopy, of all the Competitive Bids
made (including all disregarded bids), the Competitive Bid Rate and the
principal amount of each Competitive Loan in respect of which a Competitive Bid
was made and the identity of the Lender that made each bid. The Administrative
Agent shall send a copy of all Competitive Bids (including all disregarded
bids) to Gannett for its records as soon as practicable after completion of the
bidding process set forth in this Section 2.3.

                (f)     Acceptance and Notice by Gannett. Gannett may in its sole
discretion, subject only to the provisions of this paragraph (f), accept or
reject any Competitive Bid (other than any disregarded bid) referred to in
paragraph (e) above. Gannett shall notify the Administrative Agent by
telephone, confirmed immediately thereafter by telecopy in the form of a
Competitive Bid Accept/Reject Letter, whether and to what extent it wishes to
accept any or all of the bids referred to in paragraph (e) above not later than
(x) 11:00 A.M. (Dallas, Texas time) on the third Business Day prior to the
proposed Borrowing Date, in the case of a Competitive Eurodollar Borrowing or
(y) 11:00 A.M. (Dallas, Texas time) on the proposed Borrowing Date, in the case
of a Fixed Rate Borrowing; provided that:

          (i)     the failure by Gannett to give such notice shall be deemed to be
a rejection of all the bids referred to in paragraph (e) above,

          (ii)     if made under the 364-Day Facility, the aggregate principal
amount of the Competitive Bids accepted by Gannett may not exceed the
lesser of (A) the principal amount set forth in the related Competitive
Bid Request and (B) the excess, if any, of the aggregate 364-Day
Commitments of all 364-Day Lenders then in effect over the aggregate
principal amount of all 364-Day Loans outstanding immediately prior to
the making of such Competitive Loans,

 

15

          (iii)     if made under the Five-Year Facility, the aggregate principal
amount of the Competitive Bids accepted by Gannett may not exceed the
lesser of (A) the principal amount set forth in the related Competitive
Bid Request and (B) the excess, if any, of the aggregate Five-Year
Commitments of all Five-Year Lenders then in effect over the aggregate
principal amount of all Five-Year Loans outstanding immediately prior to
the making of such Competitive Loans,

          (iv)     the principal amount of each Competitive Borrowing must be
$5,000,000 or a multiple of $1,000,000 in excess thereof, and

          (v)     Gannett may not accept any Competitive Bid that is disregarded
by the Administrative Agent pursuant to Section 2.3(d)(ii) or that
otherwise fails to comply with the requirements of this Agreement.

A notice given by Gannett pursuant to this paragraph (f) shall be irrevocable.

                (g)     Allocation by Administrative Agent. If offers are made by
two or more Lenders with the same Competitive Bid Rates for a greater aggregate
principal amount than the amount in respect of which such offers are accepted
for the related Interest Period, the principal amount of Competitive Loans in
respect of which such offers are accepted shall be allocated by the
Administrative Agent among such Lenders as nearly as possible (in integral
multiples of $1,000,000, as the Administrative Agent may deem appropriate) in
proportion to the aggregate principal amounts of such offers.

                (h)     Notification of Acceptance. The Administrative Agent shall
promptly (and, in any event, by 11:30 A.M., Dallas, Texas time) notify each
bidding Lender whether or not its Competitive Bid has been accepted (and if so,
in what amount and at what Competitive Bid Rate), and
each successful bidder will thereupon become bound, subject to the other
applicable conditions hereof, to make the Competitive Loan in respect of which
its bid has been accepted.

                Section 2.4     Termination or Reduction of Commitments. Gannett shall have the
right, upon not less than two Business Days’ notice to the Administrative
Agent, to terminate the 364-Day Commitments when no 364-Day Loans are then
outstanding or, from time to time, to reduce the unutilized portion of the
364-Day Commitments. Gannett shall have the right, upon not less than two
Business Days’ notice to the Administrative Agent, to terminate the Five-Year
Commitments when no Five-Year Loans are then outstanding or, from time to time,
to reduce the unutilized portion of the Five-Year Commitments. Any such
reduction pursuant to this Section 2.4 shall be in an amount equal to
$10,000,000 or a multiple of $1,000,000 in excess thereof and shall reduce
permanently the applicable Commitments then in effect, and the fees payable
pursuant to Section 2.10 shall then reflect the reduced Commitments.

                Section 2.5     Optional Prepayments. Gannett may at any time and from time to
time prepay the Loans, in whole or in part, without premium or penalty, upon
irrevocable notice delivered to the Administrative Agent at least three
Business Days prior thereto in the case of Eurodollar Loans and at least one
Business Day prior thereto in the case of ABR Loans, which notice shall specify
the date and amount of prepayment and whether the prepayment is of Eurodollar
Loans or ABR Loans; provided, that if a Eurodollar Loan is prepaid on any day
other than the last day of the Interest Period applicable thereto, Gannett
shall also pay any amounts owing pursuant to Section 2.16. Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender
thereof. If any such notice is given, the amount specified in such notice
shall be due and payable on the date specified therein, together with accrued
interest and fees to such date on the amount prepaid. Partial prepayments shall
be in an aggregate principal amount of $10,000,000 or a multiple of $1,000,000
in excess thereof. Notwithstanding anything to the contrary contained herein,
Gannett shall not prepay the Competitive Loans except pursuant to

 

16

Article 7,
with the consent of the Lender which has made such Competitive Loan or as
provided in the related Competitive Bid Request.

                Section 2.6     Conversion and Continuation Options. (a) Gannett may elect from
time to time to convert Eurodollar Revolving Credit Loans to ABR Loans by
giving the Administrative Agent at least one Business Day’s prior irrevocable
notice of such election; provided that any such conversion of Eurodollar
Revolving Credit Loans may only be made on the last day of an Interest Period
with respect thereto. Gannett may elect from time to time to convert ABR Loans
to Eurodollar Revolving Credit Loans by giving the Administrative Agent at
least three Business Days’ prior irrevocable notice of such election. Any such
notice of conversion to Eurodollar Revolving Credit Loans shall specify the
length of the initial Interest Period or Interest Periods therefor. Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof. All or any part of outstanding Eurodollar Revolving
Credit Loans and ABR Loans may be converted as provided herein; provided that
(i) no Loan may be converted into a Eurodollar Revolving Credit Loan when any
Event of Default has occurred and is continuing, (ii) no 364-Day Loan may be
converted into a Eurodollar Revolving Credit Loan after the date that is one
month prior to the 364-Day Termination Date and (iii) no Five-Year Loan may be
converted into a Eurodollar Revolving Credit Loan after the date that is one
month prior to the Five-Year Termination Date.

                (b)     Any Eurodollar Revolving Credit Loans may be continued as such upon
the expiration of the then current Interest Period with respect thereto by
Gannett giving notice to the
Administrative Agent, in accordance with the applicable provisions of the
term “Interest Period” set forth in Section 1.1, of the length of the next
Interest Period to be applicable to such Loans; provided that no
Eurodollar Revolving Credit Loan may be continued as such (i) when any Event of
Default has occurred and is continuing or (ii) after the date that is one month
prior to the 364-Day Termination Date or the Five-Year Termination Date, as
applicable; and provided, further, that if Gannett shall fail
to give any required notice as described above in this paragraph or if such
continuation is not permitted pursuant to the preceding proviso such Eurodollar
Revolving Credit Loans shall be automatically converted to ABR Loans on the
last day of such then expiring Interest Period.

                Section 2.7     Minimum Amounts of Eurodollar Borrowings. All borrowings,
conversions and continuations of Revolving Credit Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made
pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of the Revolving Credit Loans comprising each Eurodollar
Borrowing shall be equal to $10,000,000 or a multiple of $1,000,000 in excess
thereof and so that there shall not be more than 20 Eurodollar Borrowings
outstanding at any one time.

                Section 2.8     Repayment of Loans; Evidence of Debt. (a) Gannett hereby
unconditionally promises to pay (i) to each 364-Day Lender on the 364-Day
Termination Date (or such earlier date as the 364-Day Loans become due and
payable pursuant to Article 7 or Section 2.5), the unpaid principal amount of
each 364-Day Loan made by such 364-Day Lender, (ii) to each Five-Year Lender on
the Five-Year Termination Date (or such earlier date as the Five-Year Loans
become due and payable pursuant to Article 7 or Section 2.5), the unpaid
principal amount of each Five-Year Loan made by such Five-Year Lender and (iii)
to each applicable Lender on the last day of the applicable Interest Period,
the unpaid principal amount of each Competitive Loan made by any such Lender.
Gannett hereby further agrees to pay interest in immediately available funds at
the office of the Administrative Agent on the unpaid principal amount of the
Loans from time to time from the date hereof until payment in full thereof at
the rates per annum, and on the dates, set forth in Section 2.9.

                (b)     Notwithstanding anything to the contrary contained herein, so long as
Gannett gives the Administrative Agent at least 30 days’ notice in advance of
the 364-Day Termination Date,

 

17

Gannett may elect that all or any portion of the
364-Day Loan outstanding on the 364-Day Termination Date shall become a term
loan and be due and payable in full on the date (the “Extended Date”;
the 364-Day Loans so extended, the “Extended Loans”) which is one year
following the 364-Day Termination Date (or such earlier date as the 364-Day
Loans become due and payable pursuant to Article 7 or Section 2.5).

                (c)     Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of Gannett to the appropriate
lending office of such Lender resulting from each Loan made by such lending
office of such Lender from time to time, including the amounts of principal and
interest payable and paid to such lending office of such Lender from time to
time under this Agreement.

                (d)     The Administrative Agent shall maintain the Register pursuant to
Section 9.6(d), and a subaccount for each Lender, in which Register and
subaccounts (taken together) shall be recorded (i) the amount of each Loan made
hereunder, the Type of each Loan made and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and
payable from Gannett to each Lender hereunder and (iii) the amount of any
sum received by the Administrative Agent hereunder from Gannett and each
Lender’s share thereof.

                (e)     The entries made in the Register and accounts maintained pursuant to
paragraphs (c) and (d) of this Section 2.8 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of Gannett therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
account, such Register or such subaccount, as applicable, or any error therein,
shall not in any manner affect the obligation of Gannett to repay (with
applicable interest) the Loans made to Gannett by such Lender in accordance
with the terms of this Agreement.

                Section 2.9     Interest Rates and Payment Dates. (a) Each ABR Loan shall bear
interest at a rate per annum equal to the ABR plus the Applicable Margin.

                (b)     The Loans comprising each Eurodollar Borrowing shall bear interest at
a rate per annum equal to (i) in the case of each Eurodollar Revolving Credit
Loan, the Eurodollar Rate for the Interest Period in effect for such Borrowing
plus the Applicable Margin and (ii) in the case of each Eurodollar Competitive
Loan, the Eurodollar Rate for the Interest Period in effect for such Borrowing
plus (or minus, as the case may be) the Margin offered by the Lender making
such Loan and accepted by Gannett pursuant to Section 2.3. The Applicable
Margin applicable to Extended Loans shall be increased by .1250%.

                (c)     Each Fixed Rate Loan shall bear interest at a rate per annum equal to
the fixed rate of interest offered by the Lender making such Loan and accepted
by Gannett pursuant to Section 2.3.

                (d)     Interest shall be payable in arrears on each Interest Payment Date;
provided that interest accruing pursuant to paragraph (e) of this
Section 2.9 shall be payable from time to time on demand.

                (e)     (i) If all or a portion of the principal amount of any Loan shall not
be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum equal
to the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section 2.9 plus 1% and (ii) to the
extent permitted under applicable law, if all or a portion of any interest
payable on any Loan or any fee or other amount payable hereunder shall not be
paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall

 

18

bear interest at a rate per annum equal to the rate
then applicable to ABR Loans plus 1%, in each case, with respect to
clauses (i) and (ii) above, from the date of such non-payment until such amount
is paid in full (as well after as before judgment).

                Section 2.10     Fees. (a) Gannett shall pay to the Administrative Agent, for
the ratable account of the 364-Day Lenders, a facility fee (the “364-Day
Facility Fee”) at the rate per annum equal to (i) for each day that
Gannett has Credit Status 1, .0500% of the aggregate 364-Day Commitments on
such day, (ii) for each day that Gannett has Credit Status 2, .0600% of the
aggregate 364-Day Commitments on such day, (iii) for each day that Gannett has
Credit Status 3, .0800% of the aggregate 364-Day Commitments on such day, (iv)
for each day that Gannett has Credit Status 4, .1000% of the aggregate 364-Day
Commitments on such day, (v) for each day that Gannett has Credit Status 5, .1500% of the aggregate 364-Day Commitments on such day and (vi) for each day
that Gannett has Credit Status 6, .2000% of the aggregate 364-Day Commitments on such day. On the first
Business Day following the last day of each fiscal quarter of Gannett and on
the 364-Day Termination Date or the Extended Date, as applicable, (or, if
earlier, on the date upon which both the 364-Day Commitments are terminated and
the 364-Day Loans are paid in full), Gannett shall pay to the Administrative
Agent, for the ratable benefit of the Lenders, the portion of the 364-Day
Facility Fee which accrued during the fiscal quarter most recently ended (or,
in the case of the payment due on the 364-Day Termination Date or the Extended
Date, the portion thereof ending on such date). Such facility fee shall be
based upon the aggregate 364-Day Commitments of the 364-Day Lenders from time
to time, regardless of the utilization by Gannett from time to time thereunder.
During any period following the 364-Day Termination Date when 364-Day Loans
are outstanding, the 364-Day Facility Fee shall be payable on the aggregate
principal amount of such 364-Day Loans.

                (b)     Gannett shall pay to the Administrative Agent, for the ratable account
of the Five-Year Lenders, a facility fee (the “Five-Year Facility Fee
”) at the rate per annum equal to (i) for each day that Gannett has Credit
Status 1, .0700% of the aggregate Five-Year Commitments on such day, (ii) for
each day that Gannett has Credit Status 2, .0800% of the aggregate Five-Year
Commitments on such day, (iii) for each day that Gannett has Credit Status 3, .1000% of the aggregate Five-Year Commitments on such day, (iv) for each day
that Gannett has Credit Status 4, .12500% of the aggregate Five-Year
Commitments on such day, (v) for each day that Gannett has Credit Status 5, .1750% of the aggregate Five-Year Commitments on such day and (vi) for each day
that Gannett has Credit Status 6, .2500% of the aggregate Five-Year Commitments
on such day. On the first Business Day following the last day of each fiscal
quarter of Gannett and on the Five-Year Termination Date (or, if earlier, on
the date upon which both the Five-Year Commitments are terminated and the
Five-Year Loans are paid in full), Gannett shall pay to the Administrative
Agent, for the ratable benefit of the Lenders, the portion of the Five-Year
Facility Fee which accrued during the fiscal quarter most recently ended (or,
in the case of the payment due on the Five-Year Termination Date, the portion
thereof ending on such date). Such facility fee shall be based upon the
aggregate Five-Year Commitments of the Five-Year Lenders from time to time,
regardless of the utilization by Gannett from time to time thereunder.

                (c)     Gannett shall pay to the Administrative Agent, for the ratable account
of the Lenders, a utilization fee (the “Utilization Fee”) at a rate
per annum equal to 0.0750% for each day on which the Commitment Utilization
Percentage exceeds 50%, which Utilization Fee shall accrue on the average daily
amount of the Total Extensions of Credit for each Excess Utilization Day during
the term of this Agreement. All Utilization Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days and shall be payable
quarterly in arrears.

                Section 2.11     Computation of Interest and Fees. (a) Interest payable pursuant
hereto shall be calculated on the basis of a 360-day year for the actual days
elapsed, except that, with respect to ABR Loans and Competitive Loans the rate
of interest on which is calculated on the basis of the Prime

 

19

Rate, the interest
thereon shall be calculated on the basis of a 365- (or 366-, as the case may
be) day year for the actual days elapsed. Fees (other than the Utilization
Fees, which shall be calculated as provided in Section 2.10(c)) payable
pursuant hereto shall be calculated on the basis of a 365- (or 366-, as the
case may be) day year for the actual days elapsed. The Administrative Agent
shall as soon as practicable notify Gannett and the relevant Lenders of each
determination of a Eurodollar Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR or the Eurocurrency Reserve Requirements
shall become effective as of the opening of business on the day on which such
change becomes effective. The Administrative Agent shall as soon as
practicable notify Gannett and the relevant Lenders of the effective date and
the amount of each such change in interest rate.

                (b)     Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
Gannett and the Lenders in the absence of manifest error. The Administrative
Agent shall, at the request of Gannett, deliver to Gannett a statement showing
the quotations used by the Administrative Agent in determining any interest
rate pursuant to Section 2.11(a).

                Section 2.12     Inability to Determine Interest Rate. If prior to the first day
of any Interest Period the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon Gannett) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, the
Administrative Agent shall give telecopy or telephonic notice thereof to
Gannett and the relevant Lenders as soon as practicable thereafter. If such
notice is given (x) any Eurodollar Loans under the relevant Facility requested
to be made on the first day of such Interest Period shall be made as ABR Loans,
(y) any Loans under the relevant Facility that were to have been converted on
the first day of such Interest Period to Eurodollar Loans shall be continued as
ABR Loans and (z) any outstanding Eurodollar Loans under the relevant Facility
shall be converted, on the last day of the then-current Interest Period, to ABR
Loans. Until such notice has been withdrawn by the Administrative Agent, no
further Eurodollar Loans under the relevant Facility shall be made or continued
as such, nor shall Gannett have the right to convert Loans under the relevant
Facility to Eurodollar Loans.

                Section 2.13     Pro Rata Treatment and Payments. (a) Each borrowing of
Revolving Credit Loans from the Lenders hereunder, each payment by Gannett on
account of any fee hereunder and, subject to the last sentence of Section 2.4,
any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective 364-Day Commitments or Five-Year Commitments, as
the case may be, of the relevant Lenders. Subject to the last sentence of
Section 2.4, each payment (including each prepayment) by Gannett on account of
principal of and interest on the 364-Day Loans shall be made pro rata according
to the respective outstanding principal amounts of the 364-Day Loans then held
by the Lenders, and each payment (including each prepayment) by Gannett on
account of principal of and interest on the Five-Year Loans shall be made pro
rata according to the respective outstanding principal amounts of the Five-Year
Loans then held by the Lenders. Each payment by Gannett on account of
principal of and interest on any Borrowing of Competitive Loans shall be made
pro rata among the Lenders participating in such Borrowing according to the
respective principal amounts of their outstanding Competitive Loans comprising
such Borrowing.

                (b)     All payments (including prepayments) to be made by Gannett hereunder,
whether on account of principal, interest, fees or otherwise, shall be made
without set-off or counterclaim and shall be made prior to 12:00 Noon, Dallas,
Texas time, on the due date thereof to the Administrative Agent, for the
account of the relevant Lenders, at the Agent’s office specified in Section
9.2, in Dollars and in immediately available funds. Notwithstanding the
foregoing, the failure by Gannett to make a payment (or prepayment) prior to
12:00 Noon on the due date thereof shall not constitute a Default or Event of
Default if such payment is made on such due date; provided, 
however, that any payment (or

 

20

prepayment) made after such time on such due
date shall be deemed made on the next Business Day for the purposes of interest
and reimbursement calculations. The Administrative Agent shall distribute such
payments to the relevant Lenders promptly upon receipt in like funds as
received. If any payment hereunder (other than payments on the Eurodollar
Loans) becomes due and payable on a day other than a Business Day, such payment
shall be extended to the next succeeding Business Day. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on
the immediately preceding Business Day. In the case of any extension of
any payment of principal pursuant to the preceding two sentences, interest
thereon shall be payable at the then applicable rate during such extension.

                (c)     Unless the Administrative Agent shall have been notified in writing by
any Lender prior to a borrowing that such Lender will not make the amount that
would constitute its share of such borrowing available to the Administrative
Agent, the Administrative Agent may assume that such Lender is making such
amount available to the Administrative Agent, and the Administrative Agent may,
in reliance upon such assumption, make available to Gannett a corresponding
amount. If such amount is not made available to the Administrative Agent by
the required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon at a rate
equal to the daily average Federal Funds Effective Rate for the period until
such Lender makes such amount immediately available to the Administrative
Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the
absence of manifest error. If such Lender’s share of such borrowing is not
made available to the Administrative Agent by such Lender within three Business
Days of such Borrowing Date, the Administrative Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum applicable to
ABR Loans under the relevant Facility, on demand, from Gannett. Nothing herein
shall be deemed to limit the rights of Gannett against any Lender who fails to
make its share of such borrowing available.

                (d)     Unless the Administrative Agent shall have been notified in writing by
Gannett prior to the date of any payment being made hereunder that Gannett will
not make such payment to the Administrative Agent, the Administrative Agent may
assume that Gannett is making such payment, and the Administrative Agent may,
but shall not be required to, in reliance upon such assumption, make available
to the Lenders their respective pro rata shares of a corresponding amount. If such payment is not made to the Administrative Agent
by Gannett within three Business Days of such required date, the Administrative
Agent shall be entitled to recover, on demand, from each Lender to which any
amount which was made available pursuant to the preceding sentence, such amount
with interest thereon at the rate per annum equal to the daily average Federal
Funds Effective Rate. Nothing herein shall be deemed to limit the rights of
the Administrative Agent or any Lender against Gannett.

                Section 2.14     Requirements of Law. (a) If the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

(i)     shall subject any Lender to any tax of any kind whatsoever with
respect to this Agreement or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect
thereof (except for Non-Excluded Taxes covered by Section 2.15 and
changes in the rate of tax on the overall net income of such
Lender);

 

21

(ii)      shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held
by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not
otherwise included in the determination of the Eurodollar Rate
hereunder; or

(iii)      shall impose on such Lender any other condition affecting
Eurodollar Loans;

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount that such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, Gannett shall promptly
pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable.
If any Lender becomes entitled to claim any additional amounts pursuant to this
paragraph, it shall promptly notify Gannett (with a copy to the Administrative
Agent) of the event by reason of which it has become so entitled. Gannett
shall not be liable in respect of any such increased costs to, or reduced
amount of any sum received or receivable by, any Lender pursuant to this
Section 2.14(a) with respect to any interest, fees or other amounts accrued by
such Lender more than 15 days prior to the date notice thereof is given to
Gannett pursuant to this Section 2.14(a).

                (b)      If any Lender shall have determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation
or application thereof or compliance by such Lender or any corporation
controlling such Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s
policies with respect to capital adequacy) by an amount deemed by such Lender
to be material, then from time to time, within 15 days after submission by such
Lender to Gannett (with a copy to the Administrative Agent) of a written
request therefor, Gannett shall pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction; provided that
Gannett shall not be required to compensate a Lender pursuant to this paragraph
for any amounts incurred more than 30 days prior to the date that such Lender
notifies Gannett of such Lender’s intention to claim compensation therefor; and
provided further that, if the circumstances giving rise to such
claim have a retroactive effect, then such 30 day period shall be extended to
include the period of such retroactive effect.

                (c)      A certificate, setting forth a reasonably detailed explanation as to
the reason for any additional amounts payable pursuant to this Section 2.14,
submitted by any Lender to Gannett (with a copy to the Administrative Agent)
shall be conclusive in the absence of manifest error. The obligations of
Gannett pursuant to this Section shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

                Section 2.15       Taxes. (a) All payments made by Gannett under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on the Administrative Agent or any Lender as a result
of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than
any such connection arising solely from the

 

 

22

Administrative Agent or such Lender having executed, delivered or
performed its obligations or received a payment under, or enforced, this
Agreement). If any such non-excluded taxes, levies, imposts, duties, charges,
fees, deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes
are required to be withheld from any amounts payable to the Administrative
Agent or any Lender hereunder, the amounts so payable to the Administrative
Agent or such Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes
and Other Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement, provided,
however, that Gannett shall not be required to increase any such amounts
payable to any Lender with respect to any Non-Excluded Taxes (i) that are
attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this Section or (ii) that are United States withholding
taxes imposed on amounts payable to such Lender at the time the Lender becomes
a party to this Agreement (or designates a new lending office), except to the
extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from Gannett with respect to such
Non-Excluded Taxes pursuant to this paragraph.

                (b)      In addition, Gannett shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

                (c)      Whenever any Non-Excluded Taxes or Other Taxes are payable by Gannett,
as promptly as possible thereafter Gannett shall send to the Administrative
Agent for its own account or for the account of the relevant Lender, as the
case may be, a certified copy of an original official receipt received by
Gannett showing payment thereof. If Gannett fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other required
documentary evidence, Gannett shall indemnify the Administrative Agent and the
Lenders for any incremental taxes, interest or penalties that may become
payable by the Administrative Agent or any Lender as a result of any such
failure.

                (d)      Each Lender (or Transferee) that is not a “U.S. Person” as defined in
Section 7701(a)(30) of the Code (a “Non-U.S. Lender”) shall deliver to
Gannett and the Administrative Agent (or, in the case of a Participant, to the
Lender from which the related participation shall have been purchased) two
copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or,
in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement substantially in the form of
Exhibit E and a Form W-8BEN, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by Gannett under this Agreement. Such forms shall be delivered by
each Non-U.S. Lender on or before the date it becomes a party to this Agreement
or designates a new lending office (or, in the case of any Participant, on or
before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender. Each Non-U.S. Lender shall promptly notify Gannett at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to Gannett (or any other form of certification adopted by
the U.S. taxing authorities for such purpose). Notwithstanding any other
provision of this paragraph, a Non-U.S. Lender shall not be required to deliver
any form pursuant to this paragraph that such Non-U.S. Lender is not legally
able to deliver.

                (e)      If the Administrative Agent or any Lender receives a refund in respect
of any amounts paid by Gannett pursuant to this Section 2.15, which refund in
the reasonable judgment of such Administrative Agent or such Lender is
allocable to such payment, it shall pay the amount of such refund to Gannett,
net of all reasonable out-of-pocket expenses of the Administrative Agent or
such Lender, provided however, that Gannett, upon the request of such Lender or
the Administrative Agent, agrees to

 

 

23

repay the amount paid over to Gannett to the Administrative Agent or such
Lender in the event such Administrative Agent or the Lender is required to
repay such refund. Nothing contained herein shall interfere with the right of
the Administrative Agent or any Lender to arrange its tax affairs in whatever
manner it deems fit nor oblige the Administrative Agent or any Lender to apply
for any refund or to disclose any information relating to its affairs or any
computations in respect thereof.

                (e)      The agreements in this Section 2.15 shall survive the termination of
this Agreement and the payment of the Loans and all other amounts payable
hereunder.

                Section 2.16      Indemnity. Gannett agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense that such Lender
sustains or incurs as a consequence of (a) default by Gannett in making a
borrowing of, conversion into or continuation of Eurodollar Loans after Gannett
has given a notice requesting the same in accordance with the provisions of
this Agreement, (b) default by Gannett in making any prepayment of or
conversion from Eurodollar Loans after Gannett has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of a
prepayment of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto. Such indemnification may include an amount equal
to the excess, if any, of (i) the amount of interest that would have accrued on
the amount so prepaid, or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert
or continue to the last day of such Interest Period (or, in the case of a
failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Loans provided for herein (excluding, however, the Applicable
Margin included therein, if any) over (ii) the amount of interest (as
reasonably determined by such Lender) that would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market. A certificate as to any
amounts payable pursuant to this Section submitted to Gannett by any Lender
shall be conclusive in the absence of manifest error. This covenant shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

                Section 2.17      Change of Lending Office. Each Lender agrees that,
upon the occurrence of any event giving rise to the operation of Section 2.14
or 2.15(a) with respect to such Lender, it will, if requested by Gannett, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the
object of avoiding the consequences of such event; provided, that such
designation is made on terms that, in the sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or
regulatory disadvantage, and provided, further, that nothing in this Section
shall affect or postpone any of the obligations of Gannett or the rights of any
Lender pursuant to Section 2.14 or 2.15(a).

                Section 2.18      Replacement of Lenders. Gannett shall be permitted to
replace any Lender that (a) requests reimbursement for amounts owing pursuant
to Section 2.14 or 2.15(a) or (b) defaults in its obligation to make Loans
hereunder, with a replacement financial institution; provided that (i) such
replacement does not conflict with any Requirement of Law, (ii) prior to any
such replacement, such Lender shall have taken no action under Section 2.17 so
as to eliminate the continued need for payment of amounts owing pursuant to
Section 2.14 or 2.15(a), (iii) the replacement financial institution shall
purchase, at par, all Loans and other amounts owing to such replaced Lender on
or prior to the date of replacement, (iv) Gannett shall be liable to such
replaced Lender under Section 2.16 if any Eurodollar Loan owing to such
replaced Lender shall be purchased other than on the last day of the Interest
Period relating thereto, (v) the replacement financial institution, if not
already a Lender, shall be reasonably satisfactory to the Administrative Agent,
(vi) the replaced Lender shall be obligated to make such replacement in
accordance with the provisions of Section 9.6 (provided that Gannett shall be
obligated to pay the registration and processing fee referred to therein),
(vii) until such time as such replacement shall

 

 

24

be consummated, Gannett shall pay all additional amounts (if any) required
pursuant to Section 2.14 or 2.15(a), as the case may be, and (viii) any such
replacement shall not be deemed to be a waiver of any rights that Gannett, the
Administrative Agent or any other Lender shall have against the replaced
Lender.

ARTICLE III

Representations and Warranties

                To induce the Administrative Agent and the Lenders to enter into this
Agreement and to make the Loans, Gannett hereby represents and warrants to the
Administrative Agent and each Lender that:

                Section 3.1      Organization; Powers. Gannett and each of its
Subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation. Except where the
failure to do so, individually or in the aggregate, would result in a Material
Adverse Effect, Gannett and each of its Subsidiaries is duly qualified to do
business as a foreign corporation and is in good standing in all states in
which it owns substantial properties or in which it conducts a substantial
business and its activities make such qualifications necessary.

                Section 3.2      Financial Condition; No Material Adverse Effect. On or
as of the Effective Date, Gannett has furnished to each of the Lenders copies
of either its Annual Report for 2002 or a report on Form 8-K, containing in
either case, copies of its consolidated balance sheet as of December 29, 2002
and the related statements of consolidated income and changes in shareholders’
equity and cash flows for 2002, all reported on by PricewaterhouseCoopers LLP,
independent public accountants. The financial statements contained in such
Annual Report or report on Form 8-K (including the related notes) fairly
present Gannett’s consolidated financial condition as of their respective dates
and the consolidated results of the operations of Gannett and its Subsidiaries
for the periods then ended, and have been prepared in accordance with GAAP.
Gannett and its Subsidiaries have no Material liabilities as of December 29,
2002 not reflected in the consolidated balance sheet as of December 29, 2002 or
the related notes as of said date, and from that date to the Effective Date
there has been no Material change in the business or financial condition of
Gannett and its Subsidiaries taken as a whole which has not been publicly
disclosed.

                Section 3.3      Properties. As of the Effective Date, Gannett and its
Subsidiaries owned absolutely, free and clear of all Liens, all of the real or
personal property reflected in the consolidated balance sheet dated as of
December 29, 2002 referred to in Section 3.2 and all other property acquired by
them, respectively after December 29, 2002 except such property as has been
disposed of in the ordinary course of business, and except for (i) easements,
restrictions, exceptions, reservations or defects which, in the aggregate, do
not materially interfere with the continued use of such property or materially
affect the value thereof to Gannett or its Subsidiaries, (ii) Liens, if any,
for current taxes not delinquent, and (iii) Liens reflected on such
consolidated balance sheet or not otherwise prohibited by Section 6.1. As of
the Effective Date, Gannett and its Subsidiaries enjoy peaceful and undisturbed
possession of their properties which are held under lease and all such leases
are in good standing and valid and binding obligations of the lessors in full
force and effect, except for exceptions, reservations or defects which in the
aggregate do not materially interfere with the continued use of such property
or materially affect the value thereof to Gannett or its Subsidiaries.

                Section 3.4      Litigation. There are no actions, suits, or
proceedings pending or, to Gannett’s knowledge, threatened against or affecting
it or any Subsidiary in or before any court or foreign or domestic governmental
instrumentality, and neither Gannett nor any Subsidiary is in default in
respect of any order of any such court or instrumentality which, in Gannett’s
opinion, are Material.

 

 

25

                Section 3.5      No Conflicts. Neither the execution and delivery of
this Agreement, the consummation of the transactions herein contemplated, nor
compliance with the terms and provisions hereof will conflict with or result in
a breach of any of the provisions of Gannett’s restated certificate of
incorporation, as amended, or by-laws, as amended, or any law or regulation, or
any order of any court or governmental instrumentality, or any agreement or
instrument by which Gannett is bound, or constitute a default thereunder, or
result in the imposition of any Lien not permitted under this Agreement upon
any of Gannett’s property.

                Section 3.6      Taxes. To the best of Gannett’s knowledge, Gannett and
its Subsidiaries have filed all tax returns which are required to be filed by
any jurisdiction, and have paid all taxes which have become due pursuant to
said returns or pursuant to any assessments against it or its Subsidiaries,
except to the extent only that such taxes are not material or are being
contested in good faith by appropriate proceedings.

                Section 3.7      Authorization; Enforceability. The execution and
delivery of this Agreement and the making of all Borrowings permitted by the
provisions hereof have been duly authorized by all necessary corporate action
on the part of Gannett; this Agreement has been duly and validly executed and
delivered by Gannett and constitutes Gannett’s valid and legally binding
agreement enforceable in accordance with its terms; and the Borrowings when
made, will constitute valid and binding obligations of Gannett enforceable in
accordance with the terms of this Agreement, except as limited by applicable
bankruptcy, insolvency, moratorium, reorganization or other laws, judicial
decisions or principles of equity relating to or affecting the enforcement of
creditors rights or contractual obligations generally.

                Section 3.8      Environmental Matters. In the ordinary course of its
business, Gannett becomes aware from time to time of the effect of
Environmental Laws on its business, operations and properties and the business,
operations and properties of its Subsidiaries, and it identifies and evaluates
associated liabilities and costs (including, without limitation, any capital or
operating expenditures required for clean-up or closure of properties then
owned or operated by Gannett or its Subsidiaries, any capital or operating
expenditures required to achieve or maintain compliance with environmental
protection standards imposed by law or as a condition of any license, permit or
contract, any related constraints on operating activities, including any
periodic or permanent shutdown of any facility or reduction in the level of or
change in the nature of operations conducted at such properties, and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses). On the basis of these evaluations, Gannett has reasonably
concluded that Environmental Laws are unlikely to have a Material Adverse
Effect.

                Section 3.9       No Change. Since December 29, 2002, there has been no
development or event that has had or would have a Material Adverse Effect.

                Section 3.10       Federal Regulations. No part of the proceeds of any
Loans, and no other extensions of credit hereunder, will be used for “buying”
or “carrying” any “margin stock” within the respective meanings of each of the
quoted terms under Regulation U as now and from time to time hereafter in
effect or for any purpose that violates the provisions of the Regulations of
the Board. If requested by any Lender or the Administrative Agent, Gannett
will furnish to the Administrative Agent and each Lender a statement to the
foregoing effect in conformity with the requirements of FR Form G-3 or FR Form
U-1, as applicable, referred to in Regulation U.

                Section 3.11       No Default. Neither Gannett nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that would have a Material Adverse Effect.

 

 

26

                Section 3.12      Investment Company Act; Federal Regulations. Gannet
is not an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

ARTICLE IV

Conditions

                The obligation of each Lender to make a Loan hereunder is subject to the
accuracy, as of the date hereof, of the representations and warranties herein
contained and to the satisfaction of the following further conditions:

                (a)      The Administrative Agent shall have received (i) this Agreement,
executed and delivered by the Agents and Gannett and (ii) an Addendum, executed
and delivered by each Lender listed on Schedule 1.1.

                (b)      On the date of each Borrowing (i) no Default or Event of Default shall
have occurred and be continuing and (ii) the representations and warranties
contained in Sections 3.1, 3.5 and 3.7 shall be true and correct in all
material respects on and as of such date as if made on and as of such date.

                (c)      On or prior to the date of the first Borrowing hereunder, there shall
have been delivered to each Lender an opinion from Nixon Peabody LLP, counsel
to Gannett, in substantially the form of Exhibit F hereto. In rendering the
foregoing opinion, such counsel may rely upon certificates of officers of
Gannett and its Subsidiaries as to factual matters, including (i) the nature
and location of the property of Gannett and of its Subsidiaries, (ii)
agreements and instruments to which Gannett and/or its Subsidiaries are a
party, and (iii) the conduct of the business of Gannett and its Subsidiaries.

                (d)      On or prior to the date of the first Borrowing hereunder, there shall
have been delivered to each Lender a certificate of the Secretary of Gannett
certifying, as of the date of the Agreement, to resolutions duly adopted by the
Board of Directors of Gannett or a duly authorized committee thereof
authorizing Gannett’s execution and delivery of this Agreement and the making
of the Borrowings.

                (e)      Prior to or simultaneously with the Effective Date, the Borrower shall
have (i) terminated the “Five-Year Facility” under and as defined in its
Competitive Advance and Revolving Credit Agreement, dated as of July 28, 2000,
as amended, and paid in full all amounts (including, without limitation,
interest and fees), if any, owing thereunder and (ii) terminated the “364-Day
Facility” under and as defined in its Competitive Advance and Revolving Credit
Agreement, dated as of March 11, 2002 and effective as of March 18, 2002, as
amended, and paid in full all amounts (including, without limitation, interest
and fees), if any, owing thereunder.

ARTICLE V

Affirmative Covenants.

                Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid
in full, Gannett covenants and agrees with the Lenders that it shall and shall
cause each of its Subsidiaries to:

 

 

27

                Section 5.1      Financial Statements and Other Information. Furnish to
the Administrative Agent and the Lenders:

         (a)      within 60 days after the end of each of the first three
quarterly periods in each fiscal year, its consolidated statements of
income for such quarterly period and for the period from the beginning of
the fiscal year to the end of such quarterly period and its consolidated
balance sheet at the end of that period, all in reasonable detail,
subject, however, to year-end audit adjustments, together with a
certificate of compliance and no default in substantially the form of
Exhibit G hereto certified by an appropriate financial officer of
Gannett;

         (b)      within 120 days after and as of the close of each fiscal year,
Gannett’s Annual Report to shareholders for such fiscal year, containing
copies of its consolidated income statement, consolidated balance sheet
and changes in shareholders’ equity and cash flows for such fiscal year
accompanied by a report by PricewaterhouseCoopers LLP or some other
accounting firm of national reputation selected by Gannett, based on
their examination of such financial statements, which examination shall
have been conducted in accordance with generally accepted auditing
standards and which report shall indicate that the financial statements
have been prepared in accordance with GAAP, together with a certificate
of compliance and no default in substantially the form of Exhibit G
hereto, certified by an appropriate financial officer of Gannett;

         (c)      promptly upon their becoming available, copies of all regular
and periodic financial reports, if any, which Gannett or any of its
Subsidiaries shall file with the Securities and Exchange Commission or
with any securities exchange;

         (d)      promptly upon their becoming available, copies of all
prospectuses of Gannett and all reports, proxy statements and financial
statements mailed by Gannett to its shareholders generally; and

         (e)      such other information respecting the financial condition and
affairs of Gannett and its subsidiaries as any of the Lenders may from
time to time reasonably request.

                The financial statements of Gannett and its Subsidiaries hereafter
delivered to the Lenders pursuant to this Section 5.1 will fairly set forth the
financial condition of Gannett and its Subsidiaries as of the dates thereof,
and the results of Gannett’s and its Subsidiaries’ operations for the
respective periods stated therein, all in accordance with GAAP.

                Section 5.2      Payment of Obligations. Duly pay and discharge all (i)
material obligations when due and (ii) taxes, assessments and governmental
charges of which Gannett has knowledge assessed against it or against its
properties prior to the date on which penalties are attached thereto, unless
and only to the extent that such obligations, taxes, assessments or charters
are not material or shall be contested in good faith by appropriate proceedings
initiated by Gannett.

                Section 5.3      Books and Records; Inspection Rights. (a) Keep proper
books of records and account in which true and correct entries, in all material
respects, are made of all dealings in relation to its business and activities
and (b) permit any Lender, upon reasonable request, to inspect at all
reasonable times its properties, operations and books of account.

                Section 5.4      Notices of Material Events. Promptly give notice to
the Administrative Agent and each Lender of:

         (a)      the occurrence of any Default or Event of Default;

 

 

28

         (b)      any (i) default or event of default under any Contractual
Obligation of Gannett or any of its Subsidiaries or (ii) litigation,
investigation or proceeding that may exist at any time between Gannett or
any of its Subsidiaries and any Governmental Authority, that in either
case, if not cured or if adversely determined, as the case may be, would
have a material adverse effect on (A) the business, assets, operations or
condition, financial or otherwise, of Gannett and its Subsidiaries taken
as a whole or (B) the validity or enforceability of this Agreement or the
material rights or remedies of the Administrative Agent and the Lenders
hereunder; and

         (c)      any other development or event that has had or would have a
Material Adverse Effect.

Each notice pursuant to this Section 5.4 shall be accompanied by a statement of
an appropriate officer of Gannett setting forth details of the occurrence
referred to therein and stating what action is proposed to take with respect
thereto.

                Section 5.5      Existence; Conduct of Business. Do or cause to be done
all things necessary to preserve, renew and keep in full force and effect its
legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business; provided that the foregoing
shall not prohibit any merger, consolidation or other transaction permitted
under Section 6.2.

                Section 5.6      Maintenance of Properties; Insurance. (a) Keep and
maintain all property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are customarily maintained by companies engaged in
the same or similar businesses operating in the same or similar locations.

                Section 5.7      Compliance with Laws. Comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
would not have a material adverse effect on (a) the business, assets,
operations or condition, financial or otherwise, of Gannett and its
Subsidiaries taken as a whole or (b) the validity or enforceability of this
Agreement or the material rights or remedies of the Administrative Agent and
the Lenders hereunder.

                Section 5.8      Debt Ratings. With respect to Gannett, use its
reasonable best efforts to maintain at all times a senior unsecured long-term
debt rating from either S&P or Moody’s.

ARTICLE VI

Negative Covenants

                Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in
full, Gannett covenants and agrees with the Lenders that, it shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly:

                Section 6.1      Liens. Create, incur, assume or permit to exist any
Lien on any of its properties or assets now owned or hereafter acquired by it,
without making provision satisfactory to the Lenders whereby the Lenders obtain
an equal and ratable or prior Lien as security for the payment of the
Borrowings; or transfer any of its assets for the purpose of subjecting them to
the payment of obligations prior in payment to any of its general creditors; or
allow any liability of, or claims, or demands against it, or any of its
Subsidiaries, to exist for more than 30 days if the liability, claim or demand
might by law be

 

 

29

given any priority over those of its general creditors; provided,
however, that none of the above shall prohibit Gannett or any Subsidiary
from creating or allowing any of the following to exist:

         (a)      Liens incurred after the date hereof covering any of Gannett’s
or its Subsidiaries’ properties or assets; provided that the total
principal amount of indebtedness of Gannett and its Subsidiaries (on a
consolidated basis) secured by all such Liens permitted under this
Section 6.1(a) at any time outstanding shall not exceed 50% of Net
Property, Plant and Equipment;

         (b)      leases of all types, whether or not such leases constitute
leasebacks of property sold or transferred by Gannett or any Subsidiary;

         (c)      pledges and deposits securing the payment of workmen’s
compensation or insurance premiums, good-faith deposits in connection
with tenders, contracts (other than contracts for the payment of borrowed
money) or leases, deposits to secure surety or appeal bonds, liens,
pledges or deposits in connection with contracts made with or at the
request of the United States Government or any agency thereof, or pledges
or deposits for similar purposes made in the ordinary course of business;

         (d)      liens securing taxes, assessments or governmental or other
charges or claims for labor, materials or supplies which are not
delinquent or which are being contested in good faith by appropriate
proceedings and liens, restrictions, easements, licenses on the use of
property or minor irregularities in the title thereof, which do not, in
Gannett’s opinion, in the aggregate materially impair their use in
Gannett’s and its Subsidiaries’ business; and

         (e)      Liens on the assets of any Person which becomes a Subsidiary of
Gannett after the date of this Agreement to the extent that such liens
existed prior to the date of acquisition of such corporation by Gannett;
provided that such Liens existed at the time such Person became a
Subsidiary of Gannett and were not created in anticipation thereof.

                Section 6.2      Fundamental Changes. Merge, consolidate, sell, lease,
transfer or otherwise dispose of all or substantially all of its assets, unless
immediately after giving effect to such transaction, it shall be in compliance
with Sections 6.1 and 6.3 hereof and, in the case of a merger or consolidation
by Gannett, Gannett shall be the survivor corporation.

                Section 6.3      Shareholders’ Equity. Permit Gannett’s Total
Shareholders’ Equity at any time to be less than $3,500,000,000.

ARTICLE VII

Events of Default

                Section 7.1      Events of Default. The following are Events of
Default:

         (a)      Gannett shall fail to pay when due in accordance with the terms
hereof (i) any principal on any Loan and such failure shall have
continued for a period of three Business Days or (ii) any interest on any
Loan, or any other amount payable hereunder, and such failure shall have
continued for a period of five Business Days.

         (b)      Gannett shall (A) default in any payment of principal or of
interest on any other obligation for borrowed money in excess of
$50,000,000 beyond any grace period provided with respect thereto, or (B)
default in the performance of any other agreement, term or condition

 

 

30

contained in any agreement under which any such obligation is
created, if the effect of such default is to cause such obligation to be
accelerated or become due prior to its stated maturity.

         (c)      Any representation or warranty herein made by Gannett, or any
certificate or financial statement furnished by Gannett pursuant to the
provisions hereof, shall prove to have been false or misleading in any
material respect as of the time made or furnished and Gannett shall fail
to take corrective measures satisfactory to the Required Lenders within
30 days after notice thereof to Gannett from any Lender or the
Administrative Agent or by Gannett to the Administrative Agent.

         (d)      Gannett shall default in the performance of any other covenant,
condition or provision hereof and such default shall not be remedied to
the satisfaction of the Required Lenders within a period of 30 days after
notice thereof to Gannett from any Lender or the Administrative Agent or
by Gannett to the Administrative Agent.

         (e)      Gannett or any Subsidiary with more than $100,000,000 in revenue
in the preceding fiscal year (other than Gannett Satellite Information
Network, Inc.) shall (A) apply for or consent to the appointment of a
receiver, trustee, or liquidator of Gannett, (B) make a general
assignment for the benefit of creditors, or (C) file a voluntary petition
in bankruptcy or a petition or an answer seeking reorganization or an
arrangement with creditors or take advantage of any insolvency law or an
answer admitting the material allegations of a petition filed against
Gannett in any bankruptcy, reorganization or insolvency proceeding, or
corporate action shall be taken by Gannett for the purpose of affecting
any of the foregoing.

         (f)      An order, judgment or decree shall be entered, without the
application, approval or consent of Gannett, by any court of competent
jurisdiction, approving a petition seeking reorganization of Gannett or
appointing a receiver, trustee or liquidator of Gannett or of all or a
substantial part of the assets of Gannett, and such order, judgment or
decree shall continue unstayed and in effect for any period of ninety
(90) consecutive days.

         (g)      One or more final, non-appealable judgments for the payment of
money in an aggregate amount in excess of $100,000,000 shall be rendered
against Gannett, any Subsidiary or any combination thereof, and the same
shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed or bonded;

                Section 7.2      Remedies. If an Event of Default shall occur and be
continuing:

         (a)      If an Event of Default specified in Section 7.1(e) or (f) shall
occur and be continuing, automatically the Commitments shall immediately
terminate and the Loans (with accrued interest thereon) and all other
amounts owing under this Agreement shall immediately become due and
payable.

         (b)      If an Event of Default other than those specified in Section
7.1(e) or (f) shall occur and be continuing, either or both of the
following actions may be taken: (i) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to Gannett,
declare Commitments to be terminated forthwith, whereupon the Commitments
shall immediately terminate; and (ii) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to Gannett,
declare the Loans (with accrued interest thereon) and all other amounts
owing under this Agreement to be due and payable forthwith, whereupon the
same shall immediately become due and payable.

 

 

31

         (c)      Except as expressly provided above in this Article, presentment,
demand, protest and all other notices of any kind are hereby expressly
waived by Gannett.

         (d)      Any Lender giving any notice to Gannett under this Article 7
shall simultaneously give like notice to the Administrative Agent.

ARTICLE VIII

The Administrative Agent

                Section 8.1      Appointment. Each Lender hereby irrevocably designates
and appoints the Administrative Agent as the agent of such Lender under this
Agreement, and each such Lender irrevocably authorizes the Administrative
Agent, in such capacity, to take such action on its behalf under the provisions
of this Agreement and to exercise such powers and perform such duties as are
expressly delegated to the Administrative Agent by the terms of this Agreement,
together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

                Section 8.2      Delegation of Duties. The Administrative Agent may
execute any of its duties under this Agreement by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in-fact
selected by it with reasonable care.

                Section 8.3      Exculpatory Provisions. Neither the Administrative
Agent nor any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with
this Agreement (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by Gannett or any officer
thereof contained in this Agreement or in any certificate, report, statement or
other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or for any failure of Gannett to perform its obligations
hereunder or thereunder. The Administrative Agent shall not be under any
obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of Gannett.

                Section 8.4      Reliance by Administrative Agent. The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any instrument, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to Gannett), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent may deem and treat the payee of any promissory note as the
owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent. The Administrative Agent shall be fully justified in failing or
refusing to take any action under this Agreement unless it shall first receive
such advice or concurrence of the Required

 

 

32

Lenders (or, if so specified by this Agreement, all Lenders) as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense that may be incurred by it by reason
of taking or continuing to take any such action. The Administrative Agent
shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement in accordance with a request of the Required Lenders (or,
if so specified by this Agreement, all Lenders), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Loans.

                Section 8.5      Notice of Default. The Administrative Agent shall not
be deemed to have knowledge or notice of the occurrence of any Default or Event
of Default unless the Administrative Agent has received notice from a Lender or
Gannett referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event
that the Administrative Agent receives such a notice, the Administrative Agent
shall give notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders (or, if so specified by this
Agreement, all Lenders); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

                Section 8.6      Non-Reliance on Administrative Agent and Other Lenders.
Each Lender expressly acknowledges that neither the Administrative Agent nor
any of its respective officers, directors, employees, agents, attorneys-in-fact
or affiliates have made any representations or warranties to it and that no act
by the Administrative Agent hereafter taken, including any review of the
affairs of a Gannett or any affiliate of Gannett, shall be deemed to constitute
any representation or warranty by the Administrative Agent to any Lender. Each
Lender represents to the Administrative Agent that it has, independently and
without reliance upon the Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of Gannett and its
affiliates and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon the Administrative Agent or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement, and to make such investigation as it
deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of Gannett and its
affiliates. Except for notices, reports and other documents expressly required
to be furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of Gannett or any affiliate of Gannett that may come into the
possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

                Section 8.7      Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
Gannett and without limiting the obligation of Gannett to do so), ratably
according to their respective Aggregate Commitment Percentages in effect on the
date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with such Aggregate Commitment Percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against the Administrative
Agent in any

 

 

33

way relating to or arising out of, the Commitments, this Agreement or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the
Administrative Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion
of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final
and nonappealable decision of a court of competent jurisdiction to have
resulted from the Administrative Agent’s gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of the
Loans and all other amounts payable hereunder.

                Section 8.8      Agent in Its Individual Capacity. The Administrative
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of business with Gannett as though the Administrative Agent
were not the Administrative Agent. With respect to its Loans made or renewed
by it, the Administrative Agent shall have the same rights and powers under
this Agreement as any Lender and may exercise the same as though it were not
the Administrative Agent, and the terms “Lender” and “Lenders” shall include
the Administrative Agent in its individual capacity.

                Section 8.9      Successor Administrative Agent. The Administrative
Agent may resign as Administrative Agent upon 15 Business Days’ notice to the
Lenders and Gannett. If the Administrative Agent shall resign as
Administrative Agent under this Agreement, then (a) so long as an Event of
Default under Section 7.1(a), 7.1(e) or 7.1(f) with respect to Gannett shall
not have occurred and be continuing, Gannett shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall be
subject to approval by the Required Lenders (which approval shall not be
unreasonably withheld, conditioned or delayed) and (b) if an Event of Default
under Section 7.1(a), 7.1(e) or 7.1(f) with respect to Gannett shall have
occurred and be continuing, the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, whereupon such successor agent shall
succeed to the rights, powers and duties of the Administrative Agent, and the
term “Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans. If no successor
agent has accepted appointment as Administrative Agent by the date that is 15
Business Days following a retiring Administrative Agent’s notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Article 8 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Administrative Agent under this
Agreement.

                Section 8.10      Syndication Agent and Documentation Agent.
Notwithstanding any provision to the contrary elsewhere in this Agreement,
neither the Syndication Agent nor the Documentation Agent shall have any duties
or responsibilities hereunder, or any fiduciary relationship with any Lender,
and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against either
the Syndication Agent or the Documentation Agent.

ARTICLE IX

Miscellaneous

                Section 9.1      Amendments and Waivers. Neither this Agreement nor any
terms hereof may be amended, supplemented or modified except in accordance with
the provisions of this Section 9.1.

 

 

34

The Required Lenders and Gannett may, or, with the written consent of the
Required Lenders, the Administrative Agent and Gannett may, from time to time,
(a) enter into written amendments, supplements or modifications hereto for the
purpose of adding any provisions to this Agreement or changing in any manner
the rights of the Lenders or of Gannett hereunder or thereunder or (b) waive,
on such terms and conditions as the Required Lenders or the Administrative
Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such
amendment, supplement or modification shall (i) forgive the principal amount or
extend the final scheduled date of maturity of any Loan, extend the scheduled
date of any amortization payment in respect of any Loan, reduce the stated rate
of any interest or fee payable hereunder (except (x) in connection with the
waiver of applicability of any post-default increase in interest rates, which
waiver shall be effective with the consent of the Required Lenders and (y) that
any amendment or modification of defined terms used in the financial covenants
in this Agreement shall not constitute a reduction in the rate of interest or
fees for purposes of this clause (i)) or extend the scheduled date of any
payment thereof, in each case without the written consent of each Lender
directly affected thereby; (ii) eliminate or reduce the voting rights of any
Lender under this Section 9.1 or extend or increase the Commitment of any
Lender, in each case without the written consent of such Lender; (iii) reduce
any percentage specified in the definition of Required Lenders, consent to the
assignment or transfer by Gannett of any of its rights and obligations under
this Agreement, in each case without the written consent of all Lenders; (iv)
amend, modify or waive any provision of Article 8 without the written consent
of the Administrative Agent and any other Agent affected thereby; or (v) amend,
modify or waive any provision of Section 2.13(a) or (b) without the written
consent of each Lender directly affected thereby. Notwithstanding anything to
the contrary contained in this Section 9.1, (y) no Five-Year Lender’s consent
(and, for purposes of determining Required Lenders, the Five-Year Lenders shall
not be taken into account) shall be required to (i) extend the 364-Day
Termination Date or (ii) change the stated rate of any interest or fee payable
hereunder in respect of the 364-Day Facility and (z) no 364-Day Lender’s
consent (and, for the purposes of determining Required Lenders, the 364-Day
Lenders shall not be taken into account) shall be required to (i) extend the
Five-Year Termination Date or (ii) change the stated rate of any interest or
fee payable hereunder in respect of the Five-Year Facility. Any such waiver
and any such amendment, supplement or modification shall apply equally to each
of the Lenders and shall be binding on Gannett, the Lenders, the Administrative
Agent and all future holders of the Loans. In the case of any waiver, Gannett,
the Lenders and the Administrative Agent shall be restored to their former
position and rights hereunder, and any Default or Event of Default waived shall
be deemed to be cured and not continuing; but no such waiver shall extend to
any subsequent or other Default or Event of Default, or impair any right
consequent thereon.

                For the avoidance of doubt, this Agreement may be amended (or amended and
restated) with the written consent of the Required Lenders, the Administrative
Agent and Gannett (a) to add one or more additional credit facilities to this
Agreement and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof (collectively,
the “Additional Extensions of Credit”) to share ratably in the benefits
of this Agreement with the Loans and the accrued interest and fees in respect
thereof and (b) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders.

                Section 9.2       Notices. All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of Gannett and the
Administrative Agent, and as set forth in an administrative questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:

 

 

35

	 	 	 	 	 
	

	 	Gannett:
	 	7950 Jones Branch Drive

McLean, VA 22107

Attention: Vice President & Treasurer

Telecopy: 703-854-2047

Telephone: 703-854-6248
	 
	 	 	 	 
	

	 	The Administrative Agent:
	 	Bank of America, N.A.

901 Main Street, 14th Floor

Dallas, TX 75202-3714

Attention: Maurice Washington

Telecopy: 214-290-9544

Telephone: 214-209-4128
	 
	 	 	 	 
	

	 	 	 	With a copy to:
	 
	 	 	 	 
	

	 	 	 	Bank of America, N.A.

335 Madison Avenue, 5th Floor

New York, NY 10017

Attention: Thomas Kane

Telecopy: 212-503-7173

Telephone: 212-503-7980

provided that any notice, request or demand to or upon the
Administrative Agent or the Lenders shall not be effective until received.

                Section 9.3      No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Administrative Agent or any
Lender, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

                Section 9.4      Survival of Representations and Warranties. All
representations and warranties made hereunder and in any document, certificate
or statement delivered pursuant hereto or in connection herewith shall survive
the execution and delivery of this Agreement and the making of the Loans and
other extensions of credit hereunder.

                Section 9.5      Payment of Expenses and Taxes. (a) Gannett agrees (i)
to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement and any other documents prepared in connection herewith, and the
consummation and administration of the transactions contemplated hereby and
thereby, including the reasonable fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with
statements with respect to the foregoing to be submitted to Gannett prior to
the Effective Date (in the case of amounts to be paid on the Effective Date)
and from time to time thereafter on a quarterly basis or such other periodic
basis as the Administrative Agent shall deem appropriate, (ii) to pay or
reimburse each Lender and the Administrative Agent for all its reasonable costs
and expenses incurred in connection with the enforcement of any rights under
this Agreement and any such other documents, including the reasonable fees and
disbursements of counsel to each Lender and of counsel to the Administrative
Agent, and (iii) to pay, indemnify, and hold each Lender and the Administrative
Agent and their respective officers, directors, employees, affiliates, agents
and controlling persons (each, an

 

 

36

“Indemnitee”) harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement and any such other documents, including any of the foregoing
relating to the use of proceeds of the Loans and the reasonable fees and
expenses of legal counsel in connection with claims, actions or proceedings by
any Indemnitee against Gannett under this Agreement (all the foregoing in this
clause (d), collectively, the “Indemnified Liabilities”),
provided, that Gannett shall have no obligation hereunder to any
Indemnitee with respect to Indemnified Liabilities to the extent such
Indemnified Liabilities have resulted from the gross negligence or willful
misconduct of such Indemnitee. All amounts due under this Section 9.5(a) shall
be payable not later than 10 days after written demand therefor.

                (b)      Notwithstanding anything to the contrary in Section 9.5(a), (i)
Gannett shall have no such obligation for costs and expenses if Gannett
prevails or successfully defeats any enforcement or collection proceedings; and
(ii) if, by final adjudication in any proceeding not involving Gannett’s
bankruptcy, reorganization or insolvency, the Lenders receive less relief than
claimed, Gannett’s obligation for costs and expenses shall be limited
proportionately to the relief granted to the Lenders.

                (c)      Gannett agrees to pay, indemnify, and hold each Lender and the
Administrative Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement and any such other documents.

                (d)      If Gannett is required to commence proceedings against any Lender to
enforce its Commitment, the Lender will pay Gannett’s reasonable costs and
expenses (including attorneys’ fees) if Gannett succeeds, or a share of such
reasonable costs and expenses proportionate to Gannett’s recovery if Gannett is
only partially successful.

                (e)      The agreements in this Section 9.5 shall survive repayment of the
Loans and all other amounts payable hereunder.

                Section 9.6      Successors and Assigns; Participations and Assignments.
(a) This Agreement shall be binding upon and inure to the benefit of Gannett,
the Lenders, the Administrative Agent, all future holders of the Loans and
their respective successors and assigns, except that Gannett may not assign or
transfer any of its rights or obligations under this Agreement without the
prior written consent of each Lender.

                (b)      Any Lender other than any Conduit Lender may, without the consent of
Gannett or the Administrative Agent, in accordance with applicable law, at any
time sell to one or more banks, financial institutions or other entities (each,
a “Participant”) participating interests in any Loan owing to such
Lender, any Commitment of such Lender or any other interest of such Lender
hereunder. In the event of any such sale by a Lender of a participating
interest to a Participant, such Lender’s obligations under this Agreement to
the other parties to this Agreement shall remain unchanged, such Lender shall
remain solely responsible for the performance thereof, such Lender shall remain
the holder of any such Loan for all purposes under this Agreement, and Gannett
and the Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement. In no event shall any Participant under any such participation have
any right to approve any amendment or waiver of any provision of this
Agreement, or any consent to any departure by Gannett therefrom, except to the
extent that such amendment, waiver or consent would reduce the principal of, or
interest on, the Loans or any fees payable hereunder, or postpone the date of
the final maturity of the

 

 

37

Loans, in each case to the extent subject to such participation. Gannett
agrees that if amounts outstanding under this Agreement and the Loans are due
or unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall, to the
maximum extent permitted by applicable law, be deemed to have the right of
setoff in respect of its participating interest in amounts owing under this
Agreement to the same extent as if the amount of its participating interest
were owing directly to it as a Lender under this Agreement, provided
that, in purchasing such participating interest, such Participant shall be
deemed to have agreed to share with the Lenders the proceeds thereof as
provided in Section 9.7(a) as fully as if it were a Lender hereunder. Gannett
also agrees that each Participant shall be entitled to the benefits of Sections
2.14, 2.15 and 2.16 with respect to its participation in the Commitments and
the Loans outstanding from time to time as if it was a Lender; provided
that, in the case of Section 2.15, such Participant shall have complied with
the requirements of said Section and provided, further, that no
Participant shall be entitled to receive any greater amount pursuant to any
such Section than the transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

                (c)      Any Lender other than any Conduit Lender (an “Assignor”) may,
in accordance with applicable law, at any time and from time to time assign to
any Lender or, with the consent of Gannett and the Administrative Agent (which,
in each case, shall not be unreasonably withheld, delayed or conditioned; it
being understood that (i) the Administrative Agent and each Lender effecting an
assignment to any Person other than a Lender should notify the Borrower as
promptly as possible of any request for assignment and the Borrower, in turn,
should promptly consider such request for assignment; and (ii) Gannett’s
consent shall not be considered to be unreasonably withheld, delayed or
conditioned if Gannett withholds, delays or conditions its consent because,
among other factors, it is concerned about a potential Assignee’s capital
adequacy, liquidity or ability to perform its obligations under this
Agreement), to any Lender Affiliate, an additional bank, financial institution
or other entity (an “Assignee”) all or any part of its rights and
obligations under this Agreement pursuant to an Assignment and Acceptance,
executed by such Assignee, such Assignor and any other Person whose consent is
required pursuant to this paragraph, and delivered to the Administrative Agent
for its acceptance and recording in the Register; provided that, unless
otherwise agreed by Gannett and the Administrative Agent, no such assignment to
an Assignee (other than any Lender or any Lender Affiliate) shall be in an
aggregate principal amount of less than $10,000,000, in each case except in the
case of an assignment of all of a Lender’s interests under this Agreement. For
purposes of the proviso contained in the preceding sentence, the amount
described therein shall be aggregated in respect of each Lender and its Lender
Affiliates, if any. Upon such execution, delivery, acceptance and recording,
from and after the effective date determined pursuant to such Assignment and
Acceptance, (x) the Assignee thereunder shall be a party hereto and, to the
extent provided in such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder with a Commitment and/or Loans as set forth
therein, and (y) the Assignor thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of an
Assignor’s rights and obligations under this Agreement, such Assignor shall
cease to be a party hereto). Notwithstanding any provision of this Section
9.6, the consent of Gannett shall not be required for any assignment that
occurs when an Event of Default shall have occurred and be continuing.
Notwithstanding the foregoing, any Conduit Lender may assign at any time to its
designating Lender hereunder without the consent of Gannett or the
Administrative Agent any or all of the Loans it may have funded hereunder and
pursuant to its designation agreement and without regard to the limitations set
forth in the first sentence of this Section 9.6(c).

                (d)      The Administrative Agent shall, on behalf of Gannett, maintain at its
address referred to in Section 9.2 a copy of each Assignment and Acceptance
delivered to it and a register (the “Register”) for the recordation of
the names and addresses of the Lenders and the Commitment of, and

 

 

38

the principal amount of the Loans owing to, each Lender from time to time.
The entries in the Register shall be conclusive, in the absence of manifest
error, and Gannett, the Administrative Agent and the Lenders shall treat each
Person whose name is recorded in the Register as the owner of the Loans and any
promissory notes evidencing the Loans recorded therein for all purposes of this
Agreement. Any assignment of any Loan, whether or not evidenced by a
promissory note, shall be effective only upon appropriate entries with respect
thereto being made in the Register. Any assignment or transfer of all or part
of a Loan evidenced by a promissory note shall be registered on the Register
only upon surrender for registration of assignment or transfer of the
promissory note evidencing such Loan, accompanied by a duly executed Assignment
and Acceptance, and thereupon one or more new promissory notes shall be issued
to the designated Assignee.

                (e)      Upon its receipt of an Assignment and Acceptance executed by an
Assignor, an Assignee and any other Person whose consent is required by Section
9.6(c), together with payment to the Administrative Agent of a registration and
processing fee of $3,500 (except that no such registration and processing fee
shall be payable in the case of an Assignee which is a Lender Affiliate of the
relevant Assignor), the Administrative Agent shall (i) promptly accept such
Assignment and Acceptance and (ii) record the information contained therein in
the Register on the effective date determined pursuant thereto.

                (f)      For avoidance of doubt, the parties to this Agreement acknowledge that
the provisions of this Section 9.6 concerning assignments relate only to
absolute assignments and that such provisions do not prohibit assignments
creating security interests, including any pledge or assignment by a Lender to
secure obligations to a Federal Reserve Bank in accordance with applicable law;
provided that no such pledge or assignment shall release a Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for
such Lender as a party hereto.

                (g)      Gannett, upon receipt of written notice from the relevant Lender,
agrees to issue a promissory note to any Lender requiring such a note to
facilitate transactions of the type described in paragraph (f) above.

                (h)      Each of Gannett, each Lender and the Administrative Agent hereby
confirms that it will not institute against a Conduit Lender or join any other
Person in instituting against a Conduit Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding under any state bankruptcy or
similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; provided,
however, that each Lender designating any Conduit Lender hereby agrees to
indemnify, save and hold harmless each other party hereto for any loss, cost,
damage or expense arising out of its inability to institute such a proceeding
against such Conduit Lender.

                Section 9.7      Adjustments; Set-off. (a) Except to the extent that
this Agreement expressly provides for payments to be allocated to a particular
Lender, if any Lender (a “Benefited Lender”) shall, at any time after
the Loans and other amounts payable hereunder shall immediately become due and
payable pursuant to Section 7.2, receive any payment of all or part of the
Obligations owing to it, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 7.1(f), or otherwise), in a greater
proportion than any such payment to or collateral received by any other Lender,
if any, in respect of the obligations owing to such other Lender, such
Benefited Lender shall purchase for cash from the other Lenders a participating
interest in such portion of the Obligations owing to each such other Lender, or
shall provide such other Lenders with the benefits of any such collateral, as
shall be necessary to cause such Benefited Lender to share the excess payment
or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess
payment or benefits is thereafter

 

 

39

recovered from such Benefited Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery,
but without interest.

                (b)      In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to Gannett, any such
notice being expressly waived by Gannett to the extent permitted by applicable
law, upon any amount becoming due and payable by Gannett hereunder (whether at
the stated maturity, by acceleration or otherwise), to set off and appropriate
and apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of Gannett, as the case may be. Each Lender agrees promptly to
notify Gannett and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

                Section 9.8      Counterparts. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. Delivery of an executed signature page of this
Agreement by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement
signed by all the parties shall be lodged with Gannett and the Administrative
Agent.

                Section 9.9      Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                Section 9.10      Integration. This Agreement represents the entire
agreement of Gannett, the Administrative Agent and the Lenders with respect to
the subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender
relative to the subject matter hereof not expressly set forth or referred to
herein.

                Section 9.11      GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                Section 9.12      Submission To Jurisdiction; Waivers. Gannett hereby
irrevocably and unconditionally:

         (a)      submits for itself and its property in any legal action or
proceeding relating to this Agreement, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts
from any thereof;

         (b)      consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not
to plead or claim the same;

 

 

40

         (c)      agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to Gannett
at its address set forth in Section 9.2 or at such other address of which
the Administrative Agent shall have been notified pursuant thereto; and

         (d)      agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction.

                Section 9.13 Acknowledgements. Gannett hereby acknowledges that:

         (a)      it has been advised by counsel in the negotiation, execution and
delivery of this Agreement;

         (b)      neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to Gannett arising out of or in
connection with this Agreement, and the relationship between
Administrative Agent and Lenders, on one hand, and Gannett, on the other
hand, in connection herewith or therewith is solely that of debtor and
creditor; and

         (c)      no joint venture is created hereby or otherwise exists by virtue
of the transactions contemplated hereby among the Lenders or among
Gannett and the Lenders.

                Section 9.14      Confidentiality. Each of the Administrative Agent and
each Lender agrees to keep confidential all non-public information provided to
it by Gannett pursuant to this Agreement; provided that nothing herein
shall prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any Lender
Affiliate subject to this Section 9.14, (b) subject to an agreement to comply
with the provisions of this Section, to any actual or prospective Transferee or
any direct or indirect counterparty to any Hedge Agreement (or any professional
advisor to such counterparty), (c) to its employees, directors, agents,
attorneys, accountants and other professional advisors or those of any of its
affiliates, provided that such Persons to whom disclosure is made will
be informed of the confidential nature of such information and instructed to
keep such information confidential, (d) upon the request or demand of any
Governmental Authority or in response to any order of any court or other
Governmental Authority, upon prior written notice to Gannett to the extent
reasonably practicable, (e) to the extent required by any Requirement of Law
(other than as provided in clause (d) above) or in connection with any
litigation or similar proceeding, provided that Gannett shall be
promptly notified, to the extent reasonably practicable, prior to any such
disclosure so that Gannett may contest such disclosure or seek confidential
treatment thereof, (f) that has been publicly disclosed, (g) to any nationally
recognized rating agency that requires access to information about a Lender’s
investment portfolio in connection with ratings issued with respect to such
Lender, or (h) in connection with the exercise of any remedy hereunder.

 

 

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

	 	 	 	 	 
	 	 	GANNETT CO., INC.
	 
	 	 	 	 
	

	 	By:
	 	 /s/ Michael A. Hart 

Name: Michael A. Hart

Title: Vice President and Treasurer
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrative
Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas J. Kane

Name: Thomas J. Kane

Title: Principal
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as Syndication Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ David M. Mallett

Name: David M. Mallett

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	LLOYDS TSB BANK PLC, as Documentation Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Peter Doyle

Name: Peter Doyle

Title: Vice President Corporate Banking
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	LLOYDS TSB BANK PLC, as Documentation Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lisa Maguire

Name: Lisa Maguire

Title: Assistant Vice President Corporate Banking
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	SUNTRUST BANK, as Documentation Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kip Howard

Name: Kip Howard

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ David M. Mallett

Name: David M. Mallett

Title: Vice President

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas J. Kane

Name: Thomas J. Kane

Title: Principal
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	LLOYDS TSB PLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Peter Doyle

Name: Peter Doyle

Title: Vice President Corporate Banking
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	LLOYDS TSB PLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lisa Maguire

Name: Lisa Maguire

Title: Assistant Vice President Corporate Banking
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	SUNTRUST BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kip Howard

Name: Kip Howard

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	BARCLAYS BANK PLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ L. Peter Yetman

Name: L. Peter Yetman

Title: Director
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	CITIBANK, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Julio Ojea-Quintana

Name: Julio Ojea-Quintana

Title: Director
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	BANK OF TOKYO-MITSUBISHI TRUST COMPANY

 

 

	 	 	 	 	 
	

	 	By:
	 	/s/ Karen Ossolinski

Name: Karen Ossolinski

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	UFJ BANK LIMITED
	 
	 	 	 	 
	

	 	By:
	 	/s/ John T. Feeney

Name: John T. Feeney

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Francis W. Lutz, Jr.

Name: Francis W. Lutz, Jr.

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Leo E. Pagarigan

Name: Leo E. Pagarigan

Title: Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	WACHOVIA BANK, NA
	 
	 	 	 	 
	

	 	By:
	 	/s/ James F. Heatwole

Name: James F. Heatwole

Title: Director
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	WELLS FARGO BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lori A. Ross

Name: Lori A. Ross

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael E. Masters

Name: Michael E. Masters

Title: Vice President

 

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ John Franceschi

Name: John Franceschi

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ David C. Melin

Name: David C. Melin

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	HSBC BANK USA
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jeffrey Rothman

Name: Jeffrey Rothman

Title: SVP Telecommunications,

Media and Technology
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY
	

	 	By:
	 	/s/ Chris McKean

Name: Chris McKean

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	FIRST HAWAIIAN BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Alan H. Arizumi

Name: Alan H. Arizumi

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	STANDARD FEDERAL BANK, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jason W. Bierlein

Name: Jason W. Bierlein

Title: Vice President

 

 

	 	 	 	 	 
	 	 	BANK OF HAWAII
	 
	 	 	 	 
	

	 	By:
	 	/s/ Luke Yeh

Name: Luke Yeh

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	ASSOCIATED BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas M. Thoerpe

Name: Thomas M. Thoerpe

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	FLEET BANK, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael Dwyer

Name: Michael Dwyer

Title: Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	MELLON BANK, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Nancy E. Gale

Name: Nancy E. Gale

Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	HERBERNIA NATIONAL BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Rick Larson

Name: Rick Larson

Title: Vice President

 

 

SCHEDULE 1.1 to

CREDIT AGREEMENT

Commitments

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	364-Day	 	 	Five-Year	 	 	Total	 
	Lenders	 	Commitment	 	 	Commitment	 	 	Commitment	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank
	 	 	$81,250,000	 	 	 	$243,750,000	 	 	 	$325,000,000	 
	Bank of America, N.A.
	 	 	81,250,000	 	 	 	243,750,000	 	 	 	325,000,000	 
	Lloyds TSB Bank tsb
	 	 	62,500,000	 	 	 	187,500,000	 	 	 	250,000,000	 
	SunTrust Banks, Inc.
	 	 	56,250,000	 	 	 	168,750,000	 	 	 	225,000,000	 
	Barclays Bank plc
	 	 	46,875,000	 	 	 	140,625,000	 	 	 	187,500,000	 
	Citicorp
	 	 	27,500,000	 	 	 	82,500,000	 	 	 	110,000,000	 
	Bank of Tokyo-Mitsubishi
Trust Company
	 	 	25,000,000	 	 	 	75,000,000	 	 	 	100,000,000	 
	UFJ Bank Limited
	 	 	25,000,000	 	 	 	75,000,000	 	 	 	100,000,000	 
	Key Bank
	 	 	25,000,000	 	 	 	75,000,000	 	 	 	100,000,000	 
	Sumitomo Mitsui
Banking Corporation
	 	 	25,000,000	 	 	 	75,000,000	 	 	 	100,000,000	 
	Wachovia Bank
	 	 	25,000,000	 	 	 	75,000,000	 	 	 	100,000,000	 
	Wells Fargo Bank
	 	 	21,875,000	 	 	 	65,625,000	 	 	 	87,500,000	 
	The Bank of New York
	 	 	18,750,000	 	 	 	56,250,000	 	 	 	75,000,000	 
	U.S. Bank
	 	 	15,625,000	 	 	 	46,875,000	 	 	 	62,500,000	 
	Fifth Third Bank
	 	 	13,750,000	 	 	 	41,250,000	 	 	 	55,000,000	 
	HSBC Bank USA
	 	 	12,500,000	 	 	 	37,500,000	 	 	 	50,000,000	 
	Northern Trust Company
	 	 	12,500,000	 	 	 	37,500,000	 	 	 	50,000,000	 
	First Hawaiian Bank
	 	 	9,375,000	 	 	 	28,125,000	 	 	 	37,500,000	 
	Standard Federal Bank
	 	 	8,750,000	 	 	 	26,250,000	 	 	 	35,000,000	 
	Bank of Hawaii
	 	 	6,250,000	 	 	 	18,750,000	 	 	 	25,000,000	 
	Associated Bank
	 	 	6,250,000	 	 	 	18,750,000	 	 	 	25,000,000	 
	Fleet Bank, N.A.
	 	 	3,125,000	 	 	 	9,375,000	 	 	 	12,500,000	 
	Mellon Bank, N.A.
	 	 	3,125,000	 	 	 	9,375,000	 	 	 	12,500,000	 
	Hibernia National Bank
	 	 	10,000,000	 	 	 	—	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL:
	 	$	622,500,000	 	 	$	1,837,500,000	 	 	$	2,460,000,000	 

 

 

EXHIBIT A to the

CREDIT AGREEMENT

FORM OF ADDENDUM

                The undersigned (i) agrees to all of the provisions of the Competitive
Advance and Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”; terms defined therein being used
herein as therein defined unless otherwise defined), among Gannett Co., Inc.,
the lenders parties thereto (the “Lenders”), Bank of America, N.A., as
Administrative Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB
Bank plc and SunTrust Bank, as Documentation Agents, and (ii) becomes a party
thereto, as a Lender, with a 364-Day Commitment and/or a Five-Year Commitment,
as the case may be, as set forth opposite the undersigned Lender’s name on
Schedule 1.1 to the Credit Agreement, as such amount may be changed from time
to time as provided in the Credit Agreement.

                 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	
 
	

	 	 	 	(NAME OF LENDER)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated as of February      , 2004
	 	 	 	 	 	 

 

 

EXHIBIT B to the

CREDIT AGREEMENT

FORM OF ASSIGNMENT AND ACCEPTANCE

                Reference is made to the Competitive Advance and Revolving Credit
Agreement, dated as of February 27, 2004 and effective as of March 15, 2004 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms defined therein being used herein are therein defined unless
otherwise defined), among Gannett Co., Inc., a Delaware corporation
(“Gannett”), the several banks and other financial institutions or entities
from time to time parties thereto (the “Lenders”), Bank of America, N.A., as
Administrative Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB
Bank plc and SunTrust Bank, as Documentation Agents.

                The Assignor identified on Schedule l hereto (the “Assignor”) and the
Assignee identified on Schedule l hereto (the “Assignee”) agree as follows:

	 	1.	 	The Assignor hereby irrevocably sells and
assigns to the Assignee without recourse to the Assignor,
and the Assignee hereby irrevocably purchases and assumes
from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the interest
described in Schedule 1 hereto (the “Assigned Interest”) in
and to the Assignor’s rights and obligations under the
Credit Agreement with respect to those credit facilities
contained in the Credit Agreement as are set forth on
Schedule 1 hereto (individually, an “Assigned Facility”;
collectively, the “Assigned Facilities”), in a principal
amount for each Assigned Facility as set forth on Schedule
1 hereto.
	 
	 	2.	 	The Assignor (a) makes no representation or
warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in
connection with the Credit Agreement or with respect to the
execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto, other
than that the Assignor has not created any adverse claim
upon the interest being assigned by it hereunder and that
such interest is free and clear of any such adverse claim;
and (b) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of
Gannett, any of its Subsidiaries or any other obligor or
the performance or observance by Gannett, any of its
Subsidiaries or any other obligor of any of their
respective obligations under the Credit Agreement or any
other instrument or document furnished pursuant hereto or
thereto.
	 
	 	3.	 	The Assignee (a) represents and warrants
that it is legally authorized to enter into this Assignment
and Acceptance; (b) confirms that it has received a copy of
the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant thereto, and
such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to
enter into this Assignment and Acceptance; (c) agrees that
it will, independently and without reliance upon the
Assignor, the Administrative Agent or any other Lender and
based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit
Agreement or any other instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the
Administrative Agent to take such action as agent on its
behalf and to exercise such powers and discretion under the
Credit Agreement or any other instrument or document

 

 

 2

	 	 	 	furnished pursuant hereto or thereto as are delegated to the
Administrative Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will
be bound by the provisions of the Credit Agreement and will
perform in accordance with its terms all the obligations
which by the terms of the Credit Agreement are required to be
performed by it as a Lender.
	 
	 	4.	 	The effective date of this Assignment and
Acceptance shall be the Effective Date of Assignment
described in Schedule 1 hereto (the “Effective Date”).
Following the execution of this Assignment and Acceptance,
it will be delivered to the Administrative Agent and to
Gannett for their consent (if such consent is required)
and, if such consent is granted, for acceptance and
recording by the Administrative Agent pursuant to the
Credit Agreement, effective as of the Effective Date (which
shall not, unless otherwise agreed to by the Administrative
Agent, be earlier than five Business Days after the date of
such acceptance and recording by the Administrative Agent).
IN THE CASE OF ASSIGNMENTS TO AN ASSIGNEE OTHER THAN AN
EXISTING LENDER OR LENDER AFFILIATE, THE ASSIGNOR AND
ASSIGNEE HEREBY ACKNOWLEDGE THAT THIS ASSIGNMENT SHALL NOT
BE EFFECTIVE UNTIL CONSENT FOR SUCH ASSIGNMENT IS GRANTED
BY GANNETT AND THIS ASSIGNMENT IS SIGNED BY EACH OF GANNETT
AND THE ADMINISTRATIVE AGENT.
	 
	 	5.	 	Upon such consent, acceptance and
recording, from and after the Effective Date, the
Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignee whether
such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make
all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Effective
Date or with respect to the making of this assignment
directly between themselves.
	 
	 	6.	 	From and after the Effective Date, (a) the
Assignee shall be a party to the Credit Agreement and, to
the extent provided in this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and shall
be bound by the provisions thereof and (b) the Assignor
shall, to the extent provided in this Assignment and
Acceptance, relinquish its rights and be released from its
obligations under the Credit Agreement.
	 
	 	7.	 	This Assignment and Acceptance shall be
governed by and construed in accordance with the laws of
the State of New York.

 

 

 3

                IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their
respective duly authorized officers on Schedule 1 hereto.

 

 

 4

 

Schedule 1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Percentage Assigned of Facility	 
	 	 	 	 	 	 	 	 	 	(set forth, to at least 8 decimals,	 
	 	 	 	 	Principal Amount	 	 	as a percentage of the aggregate	 
	 	Facility Assigned	 	 	Assigned	 	 	Facility)	 
	 	

364-Day Facility:
	 	 	$	 	 	 	 	 	%	 	 
	 	

Five-Year Facility:
	 	 	 	 	 	 	 	 	 	 	 
	 	

Incremental Facility:
	 	 	 	 	 	 	 	 	 	 	 
	 

Effective Date of Assignment:                             ,             

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[Name of Assignor], as Assignor
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
 
	 	 	 	 	 	 	 	 	Name:
	 	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[Name of Assignee], as Assignee
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
 
	 	 	 	 	 	 	 	 	Name:
	 	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The undersigned hereby consent to the within assignment:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	GANNETT CO., INC.	 	 	 	 	 	BANK OF AMERICA, N.A., as
	 	 	 	 	 	 	 	 	Administrative Agent
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	
 	 	 	 	 	 	 	 	
 
	 	 	Name:	 	 	 	 	 	 	 	Name:
	 	 	Title:	 	 	 	 	 	 	 	Title:

 

 

EXHIBIT C-1 to the

CREDIT AGREEMENT

FORM OF COMPETITIVE BID REQUEST

Bank of America, N.A., as Administrative

Agent for the Lenders referred to below

901 Main Street, 14th Floor

Dallas, TX 75202-3714

                   ,       

Attention:

Dear Ladies and Gentlemen:

                The undersigned, Gannett Co., Inc. (“Gannett”), refers to the Competitive
Advance and Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”; terms defined therein being used
herein are therein defined unless otherwise defined), among Gannett, the
several banks and other financial institutions or entities from time to time
parties thereto (the “Lenders”), Bank of America, N.A., as Administrative
Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB Bank plc and
SunTrust Bank, as Documentation Agents. Gannett hereby gives you notice
pursuant to subsection 2.3(b) of the Credit Agreement that it requests a
Competitive Loan under the Credit Agreement, and in that connection sets forth
below the terms on which such Competitive Loan is requested to be made:

	 	 	 	 	 	 	 
	

	 	(A)
	 	Facility under which Competitive Borrowing is to be made	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(B)
	 	Borrowing Date	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(C)
	 	Principal Amount of Competitive Borrowing1	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(D)
	 	Interest rate basis2	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(E)
	 	Interest Period and the last day thereof3	 	 
	

	 	 	 	 	 	
 

	1	 	Not less than $10,000,000 (and in integral multiples of $1,000,000 in excess
thereof) or greater than the excess, if any, of the aggregate 364-Day
Commitments, Five-Year Commitments or Incremental Facility Commitments, as
applicable, over the aggregate principal amount of all 364-Day Loans, Five-Year
Loans or Incremental Loans, as applicable, outstanding immediately prior to the
making of such requested Competitive Borrowing.
	 
	2	 	Eurodollar Competitive Loan or Fixed Rate Loan.
	 
	3	 	Which shall be subject to the definition of #Interest Period# and end on or
before the 364-Day Termination Date, Five-Year Termination Date or Incremental
Facility Maturity Date, as applicable.

 

 

 2

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	GANNETT CO., INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

EXHIBIT C-2 to the

CREDIT AGREEMENT

FORM OF INVITATION FOR COMPETITIVE BIDS

[Name of Lender]

[Address]

                   ,       

Attention:

Dear Ladies and Gentlemen:

                Reference is made to Competitive Advance and Revolving Credit Agreement,
dated as of February 27, 2004 and effective as of March 15, 2004 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”;
terms defined therein being used herein are therein defined unless otherwise
defined), among Gannett Co., Inc. (“Gannett”), the several banks and other
financial institutions or entities from time to time parties thereto, Bank of
America, N.A., as Administrative Agent, JPMorgan Chase Bank as Syndication
Agent, and Lloyds TSB Bank plc and SunTrust Bank, as Documentation Agents.
Gannett made a Competitive Bid Request on              ,          , pursuant to
subsection 2.3(b) of the Credit Agreement, and in that connection you are
invited to submit a Competitive Bid by [Date]/[Time].4 Your Competitive Bid
must comply with subsection 2.3(d) of the Credit Agreement and the terms set
forth below on which the Competitive Bid Request was made:

	 	 	 	 	 	 	 
	

	 	(A)
	 	Facility under which Competitive Borrowing is to be made	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(B)
	 	Borrowing Date	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(C)
	 	Principal Amount of Competitive Borrowing	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(D)
	 	Interest rate basis5	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(E)
	 	Interest Period and the last day thereof6	 	 
	

	 	 	 	 	 	
 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
	

	 	 	 	as Administrative Agent
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

	4	 	The Competitive Bid must be received by the Administrative Agent (i) in the
case of Eurodollar Competitive Loans, not later than 9:30 A.M. (Dallas, TX
time) three Business Days prior to the proposed Borrowing Date, and (ii) in the
case of Fixed Rate Loans, not later than 9:30 A.M. (Dallas, TX time) on the
proposed Borrowing Date.
	 
	5	 	Eurodollar Competitive Loan or Fixed Rate Loan.
	 
	6	 	Which shall be subject to the definition of #Interest Period# and end on or
before the 364-Day Termination Date, Five-Year Termination Date or Incremental
Facility Maturity Date, as applicable.

 

 

EXHIBIT C-3 to the

CREDIT AGREEMENT

FORM OF COMPETITIVE BID

Bank of America, N.A., as Administrative

Agent for the Lenders referred to below

901 Main Street, 14th Floor

Dallas, TX 75202-3741

                   ,       

Attention:

Dear Ladies and Gentlemen:

                The undersigned, [Name of Lender], refers to the Competitive Advance and
Revolving Credit Agreement, dated as of February 27, 2004 and effective as of
March 15, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”; terms defined therein being used herein are
therein defined unless otherwise defined), among Gannett Co., Inc. (“Gannett”),
the several banks and other financial institutions or entities from time to
time parties thereto (the “Lenders”), Bank of America, N.A., as Administrative
Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB Bank plc and
SunTrust Bank, as Documentation Agents. The undersigned hereby makes a
Competitive Bid pursuant to subsection 2.3(d) of the Credit Agreement, in
response to the Competitive Bid Request made by Gannett on                    ,        , and
in that connection sets forth below the terms on which such Competitive Bid is
made:

	 	 	 	 	 	 	 
	

	 	(A)
	 	Facility under which Competitive Borrowing is to be made	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(B)
	 	Borrowing Date	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(C)
	 	Principal Amount1	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(D)
	 	Competitive Bid Rate2	 	 
	

	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	(E)
	 	Interest Period and the last day thereof	 	 
	

	 	 	 	 	 	
 

	1	 	Not less than $5,000,000 or greater than the requested Competitive Borrowing
and in integral multiples of $1,000,000 and may be subject to limitation as to
the maximum aggregate principal amount of Competitive Loans for which offers
made by such quoting Lender may be accepted. Up to five separate offers may be
included with respect to each Interest Period.
	 
	2	 	i.e., Eurodollar Rate + or -     %, in the case of Eurodollar Competitive Loans
or     %, in the case of Fixed Rate Loans, in each case specified in increments
of 1/10,000th of 1%.

 

 

 2

                The undersigned hereby confirms that the above offer(s) are irrevocable
and that it is prepared, subject to the conditions set forth in the Credit
Agreement, to extend credit to Gannett upon acceptance by Gannett of this bid
in accordance with subsection 2.3(f) of the Credit Agreement.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[NAME OF LENDER]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

EXHIBIT C-4 to the

CREDIT AGREEMENT

FORM OF COMPETITIVE BID ACCEPT/REJECT LETTER

 

                   ,       

Bank of America, N.A., as Administrative

Agent for the Lenders referred to below

901 Main Street, 14th Floor

Dallas, TX 75202-3714

Attention:

Dear Ladies and Gentlemen:

                The undersigned, Gannett Co., Inc. (“Gannett”), refers to the Competitive
Advance and Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”; terms defined therein being used
herein are therein defined unless otherwise defined), among Gannett, the
several banks and other financial institutions or entities from time to time
parties thereto, Bank of America, N.A., as Administrative Agent, JPMorgan Chase
Bank, as Syndication Agent, and Lloyds TSB Bank plc and SunTrust Bank, as
Documentation Agents.

                In accordance with subsection 2.3(e) of the Credit Agreement, we have
received a summary of bids in connection with our Competitive Bid Request dated
                   ,        and in accordance with subsection 2.3(f) of the Credit
Agreement, we hereby accept the following bids:

	 	 	 	 	 
	Principal Amount	 	Fixed Rate/Margin	 	Maturity Date	 	Lender
	 
	 	 	 	 
	$

	 	[%]/[+/-.    %]	 	 

     We hereby reject the following bids:

	 	 	 	 	 
	Principal Amount	 	Fixed Rate/Margin	 	Maturity Date	 	Lender
	 
	 	 	 	 
	$

	 	[%]/[+/-.    %]	 	 

                The $                  should be deposited in Bank of America, N.A. account
number [                ] on [date].

 

 

 2

                Upon acceptance of any or all of the Loans offered by the Lenders in
response to this request, Gannett shall be deemed to have represented and
warranted that the conditions to lending specified in Article IV of the Credit
Agreement have been satisfied.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	GANNETT CO., INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

EXHIBIT D-1 to the

CREDIT AGREEMENT

FORM OF NEW LENDER SUPPLEMENT

                SUPPLEMENT, dated                                    , to the Competitive Advance and
Revolving Credit Agreement, dated as of February 27, 2004 and effective as of
March 15, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”; terms defined therein being used herein are
therein defined unless otherwise defined), among Gannett Co., Inc., a Delaware
corporation (“Gannett”), the several banks and other financial institutions or
entities from time to time parties thereto (the “Lenders”), Bank of America,
N.A., as Administrative Agent, JPMorgan Chase Bank, as Syndication Agent, and
Lloyds TSB Bank plc and SunTrust Bank, as Documentation Agents.

W I T N E S S E T H :

                WHEREAS, the Credit Agreement provides in Section 2.1(e) thereof that any
bank, financial institution or other entity may become a party to the Credit
Agreement in connection with any transaction described in Section 2.1(d)
thereof with the consent of Gannett and the Administrative Agent (which
consent, in the case of the Administrative Agent, shall not be unreasonably
withheld) by executing and delivering to Gannett and the Administrative Agent a
supplement to the Credit Agreement in substantially the form of this
Supplement; and

                WHEREAS, the undersigned now desires to become a party to the Credit
Agreement;

                NOW, THEREFORE, the undersigned hereby agrees as follows:

         1.         The undersigned agrees to be bound by the provisions of the
Credit Agreement, and agrees that it shall, on the date this Supplement
is accepted by Gannett and the Administrative Agent, become a Lender for
all purposes of the Credit Agreement to the same extent as if originally
a party thereto, with [364-Day Commitments of $                                ]
[Five-Year Commitments of $                                    ] [Incremental Facility
Commitments of $                        ].

         2.         The undersigned (a) represents and warrants that it is legally
authorized to enter into this Supplement; (b) confirms that it has
received a copy of the Credit Agreement, together with copies of the
financial statements referred to in Section 3.2 thereof and such other
documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Supplement; (c) agrees
that it has made and will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under the Credit
Agreement or any instrument or document furnished pursuant hereto or
thereto; (d) appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers and
discretion under the Credit Agreement or any instrument or document
furnished pursuant hereto or thereto as are delegated to the
Administrative Agent by the terms thereof, together with such powers as
are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and will perform in accordance with
its terms all the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Lender including, without
limitation, if it is organized under the laws of a jurisdiction outside
the United States, its obligation pursuant to Section 2.15(d) of the
Credit Agreement.

         3.         The undersigned’s address for notices for the purposes of the
Credit Agreement is as follows:

 

 

 2

                IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
executed and delivered by a duly authorized officer on the date first above
written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[INSERT NAME OF LENDER]
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	
 
	

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	Accepted this  
     
    
day of	 	 	 	 	 	 
	    
    
    
    
    
    
    
 ,
    
    
 .	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	GANNETT CO., INC.	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	Accepted this  
    
    
  day of	 	 	 	 	 	 
	
    
    
    
    
    
    
    
 , 
    
    
 .	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.,	 	 	 	 	 	 
	as Administrative Agent	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 

 

 

EXHIBIT D-2 to the

CREDIT AGREEMENT

FORM OF INCREMENTAL FACILITY ACTIVATION NOTICE

	 	To:  	BANK OF AMERICA, N.A.,

as Administrative Agent under the Credit Agreement referred to below

                Reference is hereby made to the Competitive Advance and Revolving Credit
Agreement, dated as of February 27, 2004 and effective as of March 15, 2004 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms defined therein being used herein are therein defined unless
otherwise defined), among Gannett Co., Inc., a Delaware corporation
(“Gannett”), the several banks and other financial institutions or entities
from time to time parties thereto (the “Lenders”), Bank of America, N.A., as
Administrative Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds
TSB Bank plc and SunTrust Bank, as Documentation Agents.

                This notice is an Incremental Facility Activation Notice referred to in
the Credit Agreement, and Gannett and each of the Lenders party hereto hereby
notify you that:

	 	1.	 	Each Lender party hereto agrees to make or
increase the amount of its [364-Day Commitment] [Five-Year
Commitment] [Incremental Facility Commitment] as set forth
opposite such Lender’s name below under the caption
“Incremental Facility Amount”.
	 
	 	2.	 	The Incremental Facility Closing Date is             .
	 
	 	[3.	 	The Incremental Facility Maturity Date is         .]

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	GANNETT CO., INC.
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	
 
	

	 	 	 	 	 	 	 	Name:
	

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	Incremental Facility Amount	 	 	 	 	 	    [NAME OF LENDER]
	 
	 	 	 	 	 	 	 	 
	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	
 
	

	 	 	 	 	 	 	 	Name:
	

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	CONSENTED TO:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.,	 	 	 	 	 	 
	as Administrative Agent	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 
	

	 	Title:	 	 	 	 	 	 

 

 

EXHIBIT E to the

CREDIT AGREEMENT

FORM OF EXEMPTION CERTIFICATE

                Reference is made to the Competitive Advance and Revolving Credit
Agreement, dated as of February 27, 2004 and effective as of March 15, 2004 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms defined therein being used herein are therein defined unless
otherwise defined), among Gannett Co., Inc., a Delaware corporation
(“Gannett”), the several banks and other financial institutions or entities
from time to time parties thereto, Bank of America, N.A., as Administrative
Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB Bank plc and
SunTrust Bank, as Documentation Agent. [Name of Non-U.S. Person] (the
“Lender”) is providing this certificate pursuant to subsection 2.15(d) of the
Credit Agreement. The Lender hereby represents and warrants that:

                1.        The Lender is the sole record and beneficial owner of the Loans in
respect of which it is providing this certificate.

                2.        The Lender is not a “bank” for purposes of Section 881(c)(3)(A) of the
Internal Revenue Code of 1986, as amended (the “Code”). In this regard, the
Lender represents and warrants that:

                           (a)        the Lender is not subject to regulatory or other legal requirements as
a bank in any jurisdiction; and

                           (b)        the Lender has not been treated as a bank for purposes of any tax,
securities law or other filing or submission made to any governmental
authority, any application made to a rating agency or qualification for any
exemption from tax, securities law or other legal requirements.

                3.        The Lender meets all of the requirements under Code Section 871(a) or
881(c) to be eligible for a complete exemption from withholding of taxes on
interest payments made to it under the Credit Agreement (i.e., Gannett will not
be required to withhold any amounts under U.S. tax law with respect to such
interest payments), including without limitation that it is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of Gannett
and is not a controlled foreign corporation related to Gannett (within the
meaning of Section 864(d)(4) of the Code).

                4.        The Lender shall promptly notify Gannett and the Administrative Agent
if any of the representations and warranties made herein are no longer true and
correct.

                IN WITNESS WHEREOF, the undersigned has duly executed this certificate as
of the     day of                              ,          .

	 	 	 	 	 
	 	 	[NAME OF LENDER]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

EXHIBIT F to the

CREDIT AGREEMENT

FORM OF OPINION OF NIXON PEABODY LLP

[Letterhead of Nixon Peabody LLP]

	 	 	 
	 
	 	[DATE]

To the Lenders parties to the Competitive Advance

and Revolving Credit Agreement dated as of

February 27, 2004 and effective as of March 15, 2004,

among Gannett Co., Inc., the Lenders parties thereto,

Bank of America, N.A., as Administrative Agent,

JPMorgan Chase Bank, as Syndication Agent, and

Lloyds TSB Bank plc and SunTrust Bank, as Documentation Agents

Ladies and Gentlemen:

     We are counsel to Gannett Co., Inc., a Delaware corporation (“Gannett”),
and as such we are familiar with the Competitive Advance and Revolving Credit
Agreement dated as of February 27, 2004 and effective as of March 15, 2004,
among Gannett, the several lenders from time to time parties thereto (the
“Lenders”), Bank of America, N.A., as Administrative Agent (the “Administrative
Agent”), JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB Bank plc and
SunTrust Bank, as Documentation Agents (the “Credit Agreement”). Capitalized
terms defined in the Credit Agreement are used herein with the respective
meanings assigned to such terms in the Credit Agreement.

     In connection with this opinion, we have examined, among other documents,
an executed copy of the Credit Agreement and Gannett’s Restated Certificate of
Incorporation, as amended, and By-laws, as amended. Subject to the assumptions
and qualifications contained herein, we also have examined originals or copies,
certified or otherwise identified to our satisfaction, of such other documents,
and made such investigations of law, as we have deemed necessary or appropriate
as a basis for the opinions expressed below. We also have relied upon
certificates and other documents from public officials.

     In rendering the following opinions, we have assumed, without
investigation, the authenticity of any document or other instrument submitted
to us as an original, the conformity to the originals of any document or other
instrument submitted to us as a copy, the legal capacity of natural persons,
and the genuineness of all signatures on such originals or copies.

     We express no opinion herein as to (i) any provisions of the Credit
Agreement which provide for indemnification, waiver or release to the extent
such provisions may be limited or rendered, unenforceable, in whole or in part,
by securities laws, criminal statutes or other laws or the policies underlying
such laws and by the effect of general rules of contract law that limit the
enforceability of provisions releasing, exculpating or exempting a party from,
or requiring indemnification for liability for action or inaction, to the
extent the action or inaction involves gross negligence, recklessness, willful
misconduct or unlawful conduct, or (ii) the waiver of inconvenient forum or any
claim that venue is improper or provisions relating to subject matter
jurisdiction of the courts set forth in the Credit Agreement.

 

 

 2

     The phrase “to our knowledge,” when used herein, means that our opinion is
based solely on matters within the actual knowledge of attorneys in the firm
who have been involved in the preparation of this opinion and the Credit
Agreement.

     Members of our firm involved in the preparation of this opinion are
licensed to practice law in the State of New York and, we do not purport to be
experts on, or to express any opinion herein concerning, any law other than the
laws of the State of New York, the General Corporation Law of the State of
Delaware and the Federal law of the United States.

     Based upon and subject to the foregoing and the other assumptions and
qualifications contained herein, we are of the opinion that:

     1.        Gannett is a corporation duly organized, validly existing and in good
standing under the laws of Delaware and is duly qualified to do business as a
foreign corporation, and Gannett is in good standing in all states in which it
owns substantial properties or in which it conducts substantial business or in
which qualification is necessary in order that the business or financial
condition of Gannett and its Subsidiaries, taken as a whole, be not Materially
adversely affected.

     2.        To our knowledge, there are no actions, suits or proceedings pending or
threatened against or affecting Gannett or any of its Subsidiaries in or before
any court or foreign or domestic government instrumentality, and neither
Gannett nor any of its Subsidiaries are in default in respect of any order of
any such court or governmental instrumentality which, in any such case, in the
opinion of Gannett, are Material.

     3.        Neither the execution and delivery of the Credit Agreement, the
consummation of the transactions therein contemplated nor compliance with the
terms and provisions thereof will conflict with or result in breach of any of
the provisions of the Restated Certificate of Incorporation, as amended, or the
By-Laws, as amended, of Gannett or, to our knowledge and based on reasonable
inquiries made of corporate officers of any law or of any regulation or order
of any court or governmental instrumentality or any material agreement or
instrument by which Gannett is bound or constitute a default thereunder or
result in the creation or imposition of any lien, charge or encumbrance of any
nature whatsoever not permitted under Section 6.1 of the Credit Agreement upon
any of the property of Gannett.

     4.        The execution and delivery of the Credit Agreement and the making of
all Borrowings contemplated or permitted by the provisions thereof have been
duly authorized by all necessary corporate action on the part of Gannett; and
the Credit Agreement has been duly and validly executed and delivered by
Gannett. The Credit Agreement constitutes a valid and legally binding
agreement of Gannett enforceable in accordance with its terms and the
Borrowings when duly made, will constitute valid and legally binding
obligations of Gannett enforceable in accordance with the terms thereof and of
the Credit Agreement, except as limited by applicable bankruptcy, insolvency,
moratorium, reorganization or other laws, judicial decisions or principles of
equity relating to or affecting the enforcement of creditors’ rights or
contractual obligations generally.

     In rendering the foregoing opinions, we have relied upon the certificates
of officers of Gannett as to (i) the nature and location of the property of
Gannett, (ii) the agreements and instruments to which Gannett and/or its
Subsidiaries is a party which are material, and (iii) the existence of Material
pending or threatened actions, suits or proceedings or orders of any court or
governmental instrumentality and other information from such officers. We have
not independently investigated or verified the information represented in such
certificates provided to us and do not opine as to the accuracy thereof.

	 	 	 
	 

	 	Very truly yours,

 

 

EXHIBIT G to the

CREDIT AGREEMENT

FORM OF COMPLIANCE CERTIFICATE

	 	 	 	 	 
	 

	 	[Use for quarterly report]
	 	The undersigned, an officer of Gannett
Co., Inc. (“Gannett”), has executed this Certificate on behalf of
Gannett pursuant to Section 5.1(a) of the Competitive Advance and
Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004 (the “Agreement”), among Gannett, the
several banks and other financial institutions or entities from time
to time parties thereto, Bank of America, N.A., as Administrative
Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB
Bank plc and SunTrust Bank, as Documentation Agents. The
undersigned has reviewed Gannett’s activities during the preceding
fiscal quarter, which has consisted solely of a review of the
unaudited consolidated financial statements of Gannett for said
fiscal quarter.
	 
	 	 	 	 
	

	 	[Use for annual report]
	 	The undersigned, an officer of Gannett
Co., Inc. (“Gannett”) has executed this Certificate on behalf of
Gannett pursuant to Section 5.1(b) of the Competitive Advance and
Revolving Credit Agreement, dated as of February 27, 2004 and
effective as of March 15, 2004 (the “Agreement”), among Gannett, the
several banks and other financial institutions or entities from time
to time parties thereto, Bank of America, N.A., as Administrative
Agent, JPMorgan Chase Bank, as Syndication Agent, and Lloyds TSB
Bank plc and SunTrust Bank, as Documentation Agents. The
undersigned has reviewed the activities of Gannett and its
Subsidiaries during the preceding fiscal year, which has consisted
solely of a review of the audited consolidated financial statements
of Gannett for said fiscal year.
	 
	 	 	 	 
	

	 	[Use for quarterly and
annual report]
	 	At                  the Total Shareholders’ Equity is                      .

     The undersigned hereby CERTIFIES THAT, based upon the review described
above and a review of the Agreement, nothing came to the undersigned’s
attention which caused the undersigned to believe that (i) Gannett has not
fulfilled all of its obligations under the Agreement or (ii) there has occurred
an Event of Default as defined in said Agreement, or any condition, event or
act, which with notice or lapse of time or both, would constitute an Event of
Default, which has not been cured pursuant to the provisions of the Agreement.

	 	 	 	 	 
	 	 	GANNETT CO., INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	 	 	Name:
	

	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]