Document:

Exhibit 10.11

 

	
  J.P. MORGAN

  SECURITIES INC.

  JPMORGAN CHASE

  BANK, N.A.

  270 Park Avenue

  New York, NY  10017

  	
  MERRILL LYNCH

  CAPITAL

  CORPORATION

  4 World Financial Center

  New York, NY  10080

  	
  CITIGROUP

  GLOBAL MARKETS

  INC.

  388 Greenwich Street

  New York, NY  10013

  	
  BANC
  OF AMERICA

  SECURITIES LLC 

  BANC OF AMERICA

  BRIDGE LLC

  BANK OF

  AMERICA, N.A.

  9 West 57th Street

  New York, NY 10019

  

 

April 5, 2007

Tribune Company

435 North Michigan Avenue, 6th Floor

Chicago, Illinois  60611

	
  Attention:

  	
  Don Grenesko

  
	
   

  	
  Senior Vice President, Finance and Administration

  

 

Re:          Project Tower — Amended and
Restated Second Step Commitment Letter

Ladies
and Gentlemen:

Tribune Company (“you” or “Tribune”) has
advised J.P. Morgan Securities Inc. (“JPMorgan”),
JPMorgan Chase Bank, N.A. (“JPMCB”), Merrill Lynch Capital
Corporation (“Merrill Lynch”), Citigroup
Global Markets Inc. (“CGMI”) on behalf of Citigroup (as defined below), Bank
of America, N.A. (“Bank of America”), Banc of America Bridge LLC (“Banc
of America Bridge”) and Banc of America Securities LLC (“BAS”) that
(i) you have entered into an agreement and plan of merger dated as of the date
hereof (the “Acquisition Agreement”) with a new employee stock ownership
plan sponsored by Tribune (the “ESOP”) that will be a “qualified plan”
and an “employee stock ownership plan” under the Internal Revenue Code of 1986,
as amended (the “Code”) for the benefit of employees of Tribune and its
subsidiaries (the administrator of the ESOP will be a fiduciary that is
qualified under the Code) and an entity formed by the ESOP, pursuant to which
such entity (“Merger Sub”) will be merged (the “Acquisition”)
with and into Tribune with Tribune continuing as the surviving corporation,
(ii) concurrently with the execution and delivery of the Acquisition Agreement,
you intend to enter into a securities purchase agreement with EGI-TRB, L.L.C.,
a newly formed single member limited liability company (“Holdco”) owned
by Samuel Zell (“Zell”), pursuant to which Holdco will invest, which
investment will be personally guaranteed by Zell, in Tribune $250.0 million in
cash in exchange for $50.0 million of common equity (at a price of $34.00 per
share) and an unsecured subordinated exchangeable promissory note in the
principal amount of $200.0 million due upon the earlier to occur of the
consummation of the Acquisition and the termination of the Acquisition
Agreement in accordance with its terms (the “Zell Note”), (iii)
concurrently with the execution and delivery of the Acquisition Agreement,
Tribune will form the ESOP, (iv) concurrently with 

or as soon as practicable following the execution of
the Acquisition Agreement, the ESOP will purchase $250.0 million of Tribune
common equity (at a price not in excess of fair market value for purposes of Section
3(18) of ERISA) in exchange for a $250.0 million aggregate principal amount 30
year note (at a reasonable rate of interest and otherwise on arms’ length terms
that are generally fair and reasonable to the ESOP from a financial point of
view) (such note, the “ESOP Note” and such investment, the “ESOP
Investment”), (v) immediately upon consummation of the Acquisition, the
ESOP will own 100% of the equity of Tribune, (vi) immediately following the
consummation of the Acquisition, Holdco will use the cash proceeds it receives
from the Acquisition plus an additional $65.0 million (the “Incremental Zell
Investment”) to purchase: (a) an 11 year $225.0 million initial principal
amount pay-in-kind subordinated note (the “Zell Sub Note”) and (b) a 15
year warrant (the “Warrant”) to purchase the number of shares of the
common stock of Tribune (on a fully diluted basis) set forth in the Warrant at
the exercise price provided for in the Warrant (such purchase, the “Holdco
Purchase”), (vii) Tribune intends to enter into that certain “Project Tower
— Amended and Restated First Step Commitment Letter” dated the date hereof
among Tribune, the Initial Lenders and the Lead Arrangers (the “First Step
Commitment Letter” and the Transactions contemplated thereby the “First Step
Transactions”) and consummate the First Step Transactions prior to the
consummation of the Acquisition, and (viii) the sources and uses of the funds
necessary to consummate the Acquisition and the other transactions contemplated
hereby are set forth on Annex I to this Amended and Restated Commitment
Letter.  For purposes of this Amended and
Restated Commitment Letter, “Citigroup” means CGMI, Citibank, N.A.,
Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates
as may be appropriate to consummate the transactions contemplated herein.  This letter amends, restates and supersedes
in its entirety the Project Tower — Second Step Commitment Letter among
JPMorgan, JPMCB, Merrill Lynch, and Citigroup dated April 1, 2007 and such
Commitment Letter shall be of no further force or effect.

In addition, you have advised JPMCB, Merrill Lynch,
Citigroup, Bank of America and Banc of America Bridge (collectively, the “Initial
Lenders”) that in connection with the Acquisition, Tribune will (i) borrow
up to $2,105 million of new term loans described in Exhibit A hereto
(the “Incremental Facility”) as incremental term loans provided for
under the senior secured credit facilities to be entered into by Tribune as
part of the First Step Transactions (the “Senior Secured Credit Facilities”
and together with the Incremental Facility, the “Bank Facilities”) and
(ii) either (a) borrow up to $2,100 million in senior unsecured loans from one
or more lenders under the senior unsecured bridge facility described in Exhibit
B hereto (the “Senior Bridge Facility” and together with the
Incremental Facility, the “Second Step Facilities”) or (b) issue $2,100
million in aggregate principal amount of senior unsecured notes (the “Senior
Notes”) in a public offering or in a Rule 144A or other private placement.

The Acquisition, the incurrence of the incremental
term loans under the Incremental Facility, the execution and delivery of the
Senior Bridge Facility or the issuance of the Senior Notes, the Holdco Purchase
(including the issuance of the Warrant and the Zell Sub Note) and the other
transactions contemplated hereby and thereby (other than the First Step Transactions)
are referred to as the “Second Step Transactions”.

You have requested that the Initial Lenders commit to
provide the Second Step Facilities to finance the Acquisition and to pay
certain related fees and expenses.

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Accordingly, subject to the terms and conditions set
forth below, the Initial Lenders hereby agree with you as follows:

1.             Commitment; Engagement.  (a) Each of JPMCB and Merrill Lynch hereby
commits, severally and not jointly, to provide to Tribune 30% of each of the
Second Step Facilities, (b) Citigroup hereby commits, severally and not
jointly, to provide to Tribune 25% of each of the Second Step Facilities, (c)
Bank of America hereby commits, severally and not jointly, to provide to
Tribune 15% of the Incremental Facility and (d) Banc of America Bridge hereby
commits, severally and not jointly, to provide to Tribune 15% of the Senior
Bridge Facility, in each case, upon the terms and subject to the conditions set
forth or referred to herein, in the confidential Amended and Restated Second
Step Fee Letter (the “Second Step Fee Letter”) dated the date hereof and
delivered to you, in the Incremental Facility Summary of Terms and Conditions
attached hereto (and incorporated by reference herein) as Exhibit A
(the “Incremental Term Sheet”) and in the Bridge Facility Summary of
Terms and Conditions attached hereto (and incorporated by reference herein) as Exhibit
B (the “Bridge Term Sheet” and together with the Incremental Term
Sheet, the “Term Sheets”).  The
commitments of the Initial Lenders hereunder with respect to the Incremental
Facility are subject to the negotiation, execution and delivery of an incremental
term loan amendments to the Credit Documents (as defined in the First Step Commitment
Letter) and appropriate ancillary documentation necessary to include the
Incremental Facility in the Senior Secured Credit Facilities (the “Incremental
Amendments”) reflecting substantially the terms and conditions set forth
herein and in the Term Sheets and the Second Step Fee Letter and otherwise
mutually agreed upon.  The commitments of
the Initial Lenders hereunder with respect to the Bridge Facility are subject
to the negotiation, execution and delivery of definitive documents governing
the Senior Bridge Facility (the “Bridge Documents” and together with the
Incremental Amendments, the “Operative Documents”) reflecting
substantially the terms and conditions set forth herein and in the Term Sheets
and the Second Step Fee Letter and otherwise in a customary form.  Notwithstanding anything in this Amended and
Restated Commitment Letter, the Term Sheets, the Second Step Fee Letter, the
Operative Documents or any other letter agreement or other undertaking
concerning the financing of the Second Step Transactions to the contrary,
(i) the only representations relating to Tribune, its subsidiaries and
their businesses the making of which shall be a condition to availability of
the Second Step Facilities on the Second Step Closing Date shall be (A) such of
the representations made by Tribune in the Acquisition Agreement as are
material to the interests of the Lenders, but only to the extent that Merger
Sub has the right to terminate its obligations under the Acquisition Agreement
as a result of a breach of such representations in the Acquisition Agreement
and (B) the representations and warranties of Tribune set forth in the Credit
Agreement and the Operative Documents relating to corporate status, power and
authority, due authorization, execution and delivery and enforceability of the
Operative Documents, Federal Reserve margin regulations and the Investment
Company Act (the representations in clauses (A) and (B) together the “Specified
Representations”) and (ii) the terms of the Operative Documentation shall
be in a form such that they do not impair availability of the Second Step
Facilities on the Second Step Closing Date if the conditions set forth herein
and in the Term Sheets are satisfied.

2.             Syndication.  The Initial Lenders reserve the right and
intend, prior to or after the execution of the Operative Documents and in
consultation with you, to syndicate all or a portion of their respective
commitments with respect to the Second Step Facilities to one or more financial
institutions (together with the Initial Lenders, the “Lenders”).  Upon the issuance by 

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any additional Lender of
its commitment with respect to any of the Second Step Facilities, the Initial
Lenders’ commitments with respect to such Second Step Facilities shall be
reduced in the aggregate by an equal amount (and on a pro  rata
basis as among the Initial Lenders). 
Notwithstanding any such reduction in commitments, the Initial Lenders
shall remain committed to fund amounts assigned in the event additional Lenders
fail to fund.  The commitments of the
Initial Lenders hereunder are several and not joint, and are subject to (a)
JPMorgan, Merrill Lynch, Citigroup and BAS (or one or more of their respective
affiliates) and acting as joint lead arrangers and bookrunners (the “Lead
Arrangers”) of, (b) Merrill Lynch acting as sole and exclusive administrative
agent (the “Administrative Agent”) for, (c) JPMCB acting as sole and
exclusive syndication agent for, and (d) Citigroup and Banc of America Bridge
acting as co-documentation agents for the Senior Bridge Facility.  It is further agreed that in connection with
any offering or marketing materials relating to the Incremental Facility,
JPMorgan will appear “on the left”, in connection with any offering or
marketing materials relating to the Senior Bridge Facility, Merrill Lynch will
appear “on the left”, and in each case the names of the other Lead Arrangers
will appear in such order as they appear in the caption of this letter.  The Lead Arrangers (or one or more of their
respective affiliates) will manage all aspects of the syndication in
consultation with you, including decisions as to the selection of potential
Lenders to be approached and when they will be approached, when their
commitments will be accepted, which Lenders will participate and the final
allocations of the commitments among the Lenders (which are likely not to be pro
rata across facilities among Lenders). 
The Lead Arrangers will exclusively perform, in consultation with you,
all functions and exercise all authority as customarily performed and exercised
in such capacities, including selecting one law firm as counsel for the Lead
Arrangers and the Initial Lenders and negotiating the Operative Documents.  Any agent or arranger titles (including
co-agents) awarded to other Lenders with respect to the Facilities are subject
to the prior approval of Tribune and the Lead Arrangers (such approval not to
be unreasonably withheld or delayed) and shall not entail any role with respect
to the matters referred to in this paragraph without the prior consent of the
Lead Arrangers (such consent not to be unreasonably withheld or delayed).  You agree that, without the consent of the
Initial Lenders, Tribune shall not pay to any Lender any compensation outside
the terms contained herein and in the Second Step Fee Letter in order to obtain
its commitment to participate in any of the Second Step Facilities.

You understand that the Lead Arrangers intend to
commence the syndication of the Second Step Facilities promptly, and you agree
actively to assist them, and to use commercially reasonable efforts to cause
Tribune to assist them, in achieving a timely syndication that is mutually
satisfactory to the Lead Arrangers and Tribune. 
The syndication efforts will be accomplished by a variety of means,
including direct contact during the syndication between senior management, advisors
and affiliates of Tribune on the one hand and the proposed Lenders on the other
hand, and Tribune hosting, with the Lead Arrangers, at least one meeting with
prospective Lenders at such times and places as the Lead Arrangers may reasonably
request.  You agree, upon the reasonable
request of the Lead Arrangers, to use commercially reasonable efforts to
(a) provide, and cause your subsidiaries and advisors to provide to the
Lead Arrangers all information relating to you and your subsidiaries reasonably
deemed necessary by them as and when such information becomes available,
including without limitation, upon request from the Lead Arrangers copies of
Tribune’s internal management reports prepared in the ordinary course of
business consistent with past practices for each fiscal month after the most
recent fiscal quarter (including year end) for which financial statements were
received by the Lenders as described in Paragraph 1 of Annex II hereto and
ended 30 days before the Second Step Closing Date, to suc-

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cessfully complete the primary syndication of the
Second Step Facilities, including the Information and Projections (including
updated projections) contemplated hereby, (b) assist, and cause your
subsidiaries and advisors to assist, the Lead Arrangers in the preparation of a
Confidential Information Memorandum to be completed not later than 20 business
days prior to the Second Step Closing Date (as defined in Exhibit A) and other
reasonably necessary marketing materials (the contents of which, except to the
extent relating to either Lead Arranger or its affiliates, you shall be solely
responsible for) to be used in connection with the primary syndication of the
Second Step Facilities and (c) obtain, at your expense, corporate family
ratings and a monitored public rating of each of the Second Step Facilities
from each of Moody’s Investors Service, Inc. (“Moody’s”) and Standard
& Poor’s, a division of the McGraw Hill Companies (“S&P”) (which
in the case of the Bank Facilities, may be a re-assignment of an existing
rating).  You also agree to use your
commercially reasonable efforts to ensure that the syndication efforts of the
Lead Arrangers benefit materially from your (and your subsidiaries’) existing
lending relationships.  You further agree
to afford the Lead Arrangers and their affiliates a period of not less than 20
business days prior to the Second Step Closing Date to syndicate the Second
Step Facilities.

Without limiting your obligation to assist with the
syndication efforts as set forth above, it is understood and agreed that
completion of such syndication is not a condition to the Initial Lenders’
commitments hereunder.

3.             Fees.  As consideration for the commitments of the
Initial Lenders hereunder and the agreement of the Lead Arrangers to arrange,
manage, structure and syndicate the Second Step Facilities, you agree to pay to
them when due the fees as set forth in the Second Step Fee Letter.

4.             Conditions.  The Initial Lenders’ commitments hereunder
are subject to the conditions set forth in Annex II to this Amended and
Restated Commitment Letter and are also subject to:

(a)           the preparation, execution and delivery
of mutually satisfactory definitive documentation with respect to the Second
Step Facilities (including Incremental Amendments and a bridge credit agreement
and related guarantees) incorporating the terms outlined in this Amended and Restated
Commitment Letter and in the Term Sheets and otherwise in a customary form;

(b)           the Initial Lenders and their
respective affiliates shall be satisfied that, after the date hereof and until
the successful syndication of the Second Step Facilities, or, if earlier, the
Second Step Closing Date, none of Tribune, Holdco, any of their respective
subsidiaries or the ESOP shall have offered, placed, arranged or issued, or
engaged in discussions concerning the offering, placement, arrangement or
issuance of, any debt facility or debt security (including any renewal or
refinancing of and increase of commitments under existing facilities or
securities) prior to or during the primary syndication of the Second Step
Facilities, without the prior written consent of the Lead Arrangers, other than
the Second Step Facilities, the Zell Note, the Zell Sub Note and any Senior
Notes offered, issued or sold in connection with or as a part of the First Step
Transactions or the Second Step Transactions; and

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(c)           (i)
from December 31, 2006 through the date hereof, except as otherwise
contemplated, required or permitted by the Acquisition Agreement, the Tower
Purchase Agreement (as defined in the Acquisition Agreement) or the ESOP
Purchase Agreement (as defined in the Acquisition Agreement) there has not been
any event, development or state of circumstances that has had or would
reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect (as defined (and all component definitions thereof are
defined) in the Acquisition Agreement as in effect on the date hereof) and (ii)
since the date hereof, there has not been any event, development or state of
circumstances that has had or would reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect.

5.             Information and
Investigations.  You hereby
represent and warrant that (a) all information and data (excluding the
Projections and information of a general economic or industry-specific nature)
that have been or will be made available by you or any of your representatives
or advisors to the Initial Lenders, the Lead Arrangers or any Lender (whether
prior to or on or after the date hereof) in connection with the Second Step
Transactions, taken as a whole (the “Information”), is and will be
complete and correct in all material respects and does not and will not, taken
as a whole, contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements contained therein
not materially misleading in light of the circumstances under which such
statements are made, and (b) all financial projections concerning Tribune
and its subsidiaries and the transactions contemplated hereby (the “Projections”)
that have been made or will be prepared by or on behalf of you or any of your
representatives or advisors and that have been or will be made available to the
Initial Lenders, the Lead Arrangers or any Lender in connection with the
transactions contemplated hereby have been or in the case of projections made
after the date hereof, will be, prepared in good faith based upon assumptions
that you reasonably believe to have been reasonable at the time made (it being
understood that any such projections are subject to significant uncertainties
and contingencies, many of which are beyond your control, and that no assurance
can be given that such projections will be realized and that actual results may
differ from such projections and such differences may be material).  You agree to use commercially reasonable
efforts to supplement the Information and
the Projections from time to time until the Second Step Closing Date and, if requested
by the Lead Arrangers, for a reasonable
period thereafter (not to exceed 45 days) necessary to complete the successful
syndication of the Second Step Facilities so that the representation and
warranty in the preceding sentence remains correct in all material
respects.  In syndicating the Second Step
Facilities the Lead Arrangers will be entitled to use and rely primarily on the
Information and the Projections without responsibility for independent check or
verification thereof.

You hereby acknowledge that (a) the Lead Arrangers
will make available Information and Projections to the proposed syndicate of
Lenders on a confidential basis through posting on IntraLinks or another
similar electronic system and (b) certain of the proposed Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public
information with respect to Tribune and its affiliates or any securities
thereof (“Material Non-Public Information”)) (each, a “Public Lender”).  You hereby agree that (a) you will use commercially
reasonable efforts to identify that portion of the Information and Projections
that may be distributed to the Public Lenders and include a reasonably detailed
term sheet in such Information and that all of the foregoing that is to be made
available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”;
(b) by marking materials “PUBLIC,” you shall be 

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deemed to have authorized the Lead Arrangers and the
proposed Lenders to treat such materials as not containing any Material
Non-Public Information, it being understood that certain of such materials may
be subject to the confidentiality requirements of the definitive credit
documentation; (c) all materials marked “PUBLIC” are permitted to be made
available by electronic means designated for “Public Lenders;” and (d) the Lead
Arrangers shall be entitled to treat any materials that are not marked “PUBLIC”
as being suitable only for posting by confidential electronic means not
designated for “Public Lenders.”  You
also acknowledge that Public Lenders employed by one or more of the Lead
Arrangers or their respective affiliates, consisting of publishing debt
analysts, may participate in any meetings or telephone conference calls held
pursuant to Section 2 hereof; provided that
such analysts shall not publish any information obtained from such meetings or
calls until the syndication of the Second Step Facilities has been completed
upon the making of allocations by the Lead Arrangers and the Lead Arrangers
freeing the Second Step Facilities to trade.

6.             Indemnification.  You agree to indemnify and hold harmless each
Initial Lender, each Lead Arranger, each other Lender and their respective
affiliates, and each such person’s respective officers, directors, employees,
agents and controlling persons (each Initial Lender, each Lead Arranger and
each such other person being an “Indemnified Party”) from and against
any and all losses, claims, damages, costs, expenses and liabilities, joint or
several, to which any Indemnified Party may become subject under any applicable
law, or otherwise related to or arising out of or in connection with this
Amended and Restated Commitment Letter, the Second Step Fee Letter, the Term
Sheets, the Second Step Facilities, the loans thereunder and the use of
proceeds therefrom, any of the Second Step Transactions or any related transaction
and the performance by any Indemnified Party of the services contemplated
hereby, and will reimburse each Indemnified Party for any and all reasonable
and documented expenses (including reasonable and documented counsel fees and
expenses) as they are incurred in connection with the investigation of or
preparation for or defense of any pending or threatened claim or any action or
proceeding arising therefrom, whether or not such Indemnified Party is a party
and whether or not such claim, action or proceeding is initiated or brought by
or on behalf of you or any of your subsidiaries and whether or not any of the
Second Step Transactions are consummated or this Amended and Restated
Commitment Letter is terminated, except to the extent (i) determined by a final
judgment of a court of competent jurisdiction to have resulted from such
Indemnified Party’s bad faith, gross negligence or willful misconduct or (ii)
arising from a material breach of the obligations of such Indemnified Party
under this Amended and Restated Commitment Letter.  No party hereto nor any of its affiliates or
subsidiaries shall be liable to any other party hereto or any of its
subsidiaries or affiliates on any theory of liability for any special,
indirect, consequential, punitive or exemplary damages in connection in any way
with this Amended and Restated Commitment Letter, the Second Step Fee Letter,
the Term Sheets, the Second Step Facilities, the loans thereunder and the use
of proceeds therefrom, any of the Second Step Transactions or any related
transaction or the performance by any party hereto or any of its subsidiaries,
or affiliates, its obligations hereunder or under the Second Step
Facilities.  Notwithstanding any other
provision of this Amended and Restated Commitment Letter, no Indemnified Party
shall be liable for any damages arising from the use by others of information
or other materials obtained through electronic telecommunications or other
information transmission systems, except to the extent determined by a final
judgment of a court of competent jurisdiction to have resulted from such
Indemnified Party’s bad faith, gross negligence or willful misconduct.

 7
 

You agree that, without the prior written consent of
the Lead Arrangers (not to be unreasonably withheld), neither you nor any of
your affiliates or subsidiaries will settle, compromise or consent to the entry
of any judgment in any pending or threatened claim, action or proceeding in
respect of which indemnification has been or could be sought under the indemnification
provisions hereof (whether or not any other Indemnified Party is an actual or
potential party to such claim, action or proceeding), unless such settlement,
compromise or consent (i) includes an unconditional written release in form and
substance reasonably satisfactory to the Lead Arrangers of each Indemnified
Party from all liability arising out of such claim, action or proceeding and
(ii) does not include any statement as to or an admission of fault,
culpability or failure to act by or on behalf of any Indemnified Party.

7.             Expenses.  You agree to reimburse the Initial Lenders
and their affiliates for their reasonable, documented, out-of-pocket expenses
promptly following their request made from time to time (including, without
limitation, all reasonable due diligence investigation expenses, fees of consultants
engaged with your consent (not to be unreasonably withheld), syndication
expenses (including printing, distribution, and bank meetings), travel
expenses, duplication fees and expenses, search fees, filing and recording fees
and the reasonable, documented fees, disbursements and other charges of Cahill
Gordon & Reindel LLP as
counsel to the Initial Lenders, and any sales, use or similar taxes (and any
additions to such taxes) related to any of the foregoing) incurred in
connection with the negotiation, preparation, execution and delivery, waiver or
modification, collection and enforcement of this Amended and Restated
Commitment Letter, the Term Sheets, the Second Step Fee Letter and the
Operative Documents and whether or not such fees and expenses are incurred
before or after the date hereof or any loan documentation is entered into or
the Second Step Transactions are consummated or any extensions of credit are
made under the Facilities or this Amended and Restated Commitment Letter is terminated
or expires; provided that such payment or reimbursement obligation with
respect to legal counsel shall include only the reasonable fees and expenses of
Cahill Gordon & Reindel LLP.

8.             Confidentiality.  This
Amended and Restated Commitment Letter, the Term Sheets, the contents of any of
the foregoing and the Initial Lenders’ and/or their affiliates’ activities pursuant
hereto or thereto are confidential and shall not be disclosed by or on behalf
of you or any of your subsidiaries to any person without the prior written
consent of the Initial Lenders, except that you may (i) disclose this
Amended and Restated Commitment Letter, the Second Step Fee Letter and the Term
Sheets to your officers, directors, employees and advisors, and then only in
connection with the Second Step Transactions and on a confidential need-to-know
basis, (ii) file a copy of any portion of this Amended and Restated
Commitment Letter (but not the Second Step Fee Letter) and the Term Sheets in
any public record in which it is required by law to be filed and
(iii) make any other disclosure as you are required to make by applicable
law or compulsory legal process (based on the advice of legal counsel); provided,
however, that in the event of any such compulsory legal process you
agree, to the extent permitted by applicable law, to give the Lead Arrangers
prompt notice thereof and to cooperate, at the Lead Arrangers’ expense, with
the Initial Lenders in securing a protective order in the event of compulsory
disclosure.  The foregoing restrictions
shall cease to apply with respect to this Amended and Restated Commitment
Letter, the Term Sheets and the contents thereof once this Amended and Restated
Commitment Letter has been accepted by you. 
You agree that you will use commercially reasonable efforts to permit
the Initial Lenders to review and approve any reference to any of the Initial
Lenders or any of their affiliates in connection with the Second Step Facilities
or the 

 8
 

transactions contemplated
hereby contained in any press release or similar public disclosure prior to
public release.  Subject to the terms of
the next succeeding paragraph, you agree that the Initial Lenders and their
affiliates may share information concerning you and your subsidiaries and
affiliates among themselves solely in connection with the performance of their
services hereunder and the evaluation and consummation of financings and
Transactions contemplated hereby.  You
also acknowledge that the Initial Lenders or their affiliates may be providing
debt financing, equity capital or other services (including financial advisory
services) to parties whose interests may conflict with yours.  The Initial Lenders agree that they will not
furnish confidential information obtained from you to any of their other
customers and that they will treat confidential information relating to you and
your affiliates with the same degree of care as they treat their own
confidential information.  The Initial
Lenders further advise you that they and their affiliates will not make available
to you confidential information that they have obtained or may obtain from any
other customer.

Each Lead Arranger agrees to maintain the
confidentiality of the Confidential Information (as defined below), except that
Confidential Information may be disclosed (a) to its and its affiliates’
partners, directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the persons to whom
such disclosure is made will be informed of the confidential nature of such Confidential
Information and agree to keep such Confidential Information confidential), (b)
to the extent requested or required by any state, Federal or foreign authority
or examiner regulating such Lead Arranger, (c) to the extent required by
applicable law, rule or regulation or by any subpoena or similar legal process,
(d) in connection with any litigation or legal proceeding relating to this
Amended and Restated Commitment Letter or the Second Step Fee Letter or any
other documentation in connection therewith or the enforcement of rights hereunder
or thereunder or to which such Lead Arranger or any of its affiliates may be a
party, (e) to any prospective Lender (it being understood that the persons to
whom such disclosure is made will be informed of the confidential nature of
such Confidential Information and agree to keep such Confidential Information
confidential), (f) with the consent of Tribune, (g) to any rating agency when
required by such rating agency, (h) for purposes of establishing a “due diligence
defense” or (i) to the extent such Confidential Information (i) becomes
publicly available other than as a result of a breach of this paragraph or (ii)
becomes available to such Lead Arranger on a nonconfidential basis from a
source other than you or any of your subsidiaries, officers, directors,
employees or advisors.  For the purposes
of this paragraph, “Confidential Information” means all information received
from you or any of your subsidiaries, officers, directors, employees or
advisors relating to you, or your businesses, other than any such information
that is available to the Lead Arrangers on a nonconfidential basis prior to
disclosure by you.  Any person required
to maintain the confidentiality of Confidential Information as provided in this
paragraph shall be considered to have complied with its obligation to do so if
such person has exercised the same degree of care to maintain the
confidentiality of such Confidential Information as such person would accord to
its own confidential information.

9.             Termination.  The Initial Lenders’ commitments hereunder
shall terminate in their entirety on the earliest to occur of (A) May 31, 2008
if the Operative Documents are not executed and delivered by Tribune and the
Lenders on or prior to such date, (B) the date of execution and delivery
of the Operative Documents by Tribune and the Lenders, (C) if earlier than (B),
the date of termination of the Acquisition Agreement and (D) August 17, 2007 if
the Credit Agreement has not been executed and delivered by Tribune and the
lenders thereunder on or 

 9
 

prior to such date.  Notwithstanding the foregoing, the provisions
of Sections 6, 7, 8, 10 and 11 hereof shall survive any termination
pursuant to this Section 9 (it being understood that the reimbursement and
indemnification provisions contained herein shall be superseded by the reimbursement
and indemnifications provisions contained in the Credit Agreement or the Bridge
Documentation when the applicable Operative Documents become effective).

10.           Assignment; No Fiduciary; Etc.  This Amended and Restated Commitment Letter
and the commitments of the Initial Lenders hereunder shall not be assignable by
any party hereto (other than by the Initial Lenders to their respective
affiliates) without the prior written consent of the other parties hereto, and
any attempted assignment shall be void and of no effect; provided, however,
that nothing contained in this Section 10 shall prohibit the Initial Lenders
(in their sole discretion) from (i) performing any of their duties hereunder
through any of their affiliates, and you will owe any related duties (including
those set forth in Section 2 above) to any such affiliate, and
(ii) granting (in consultation with you) participations in, or selling (in
consultation with you) assignments of all or a portion of, the commitments or
the loans under the Second Step Facilities pursuant to arrangements
satisfactory to the Initial Lenders (provided that, in the case of clause (i)
or (ii) above, the Initial Lenders shall be and remain primarily liable for the
full and prompt performance of their duties and obligations hereunder).  This Amended and Restated Commitment Letter
is solely for the benefit of the parties hereto and does not confer any
benefits upon, or create any rights in favor of, any other person.

In connection with all aspects of each transaction
contemplated by this Amended and Restated Commitment Letter, you acknowledge
and agree, and acknowledge your subsidiaries’ understanding, that (i) each
transaction contemplated by this Amended and Restated Commitment Letter is an
arm’s-length commercial transaction, between Tribune, on the one hand, and each
of the Initial Lenders and the Lead Arrangers, on the other hand, (ii) in
connection with each such transaction and the process leading thereto each of
the Initial Lenders and Lead Arrangers will act solely as a principal and not
as agent (except as otherwise provided herein) nor as fiduciary of Tribune, or
its stockholders, affiliates, creditors, employees or any other party, (iii)
none of the Initial Lenders and the Lead Arrangers will assume an advisory or
fiduciary responsibility in favor of Tribune or any of its affiliates with
respect to any of the transactions contemplated hereby or the process leading
thereto (irrespective of whether any Initial Lender or Lead Arranger has
advised or is currently advising Tribune on other matters) and none of the Initial
Lenders and Lead Arrangers will have any obligation to Tribune or any of its
affiliates with respect to the transactions contemplated in this Amended and
Restated Commitment Letter except the obligations expressly set forth herein or
as otherwise expressly agreed to in writing, (iv) the Initial Lenders and Lead
Arrangers may be engaged in a broad range of transactions that involve interests
that differ from those of Tribune and its affiliates, and (v) none of the
Initial Lenders and Lead Arrangers has provided nor will provide any legal,
accounting, regulatory or tax advice with respect to any of the transactions contemplated
hereby and Tribune has consulted and will consult its own legal, accounting,
regulatory, and tax advisors to the extent it deems appropriate.  You hereby waive and release, to the fullest
extent permitted by law, any claims that you may have against the Initial Lenders
and Lead Arrangers with respect to any breach or alleged breach of fiduciary
duty in respect of any of the transactions contemplated by this Amended and
Restated Commitment Letter.

 10
 

11.           Governing Law; Waiver of Jury
Trial.  This Amended and Restated
Commitment Letter shall be governed by, and construed in accordance with, the
laws of the State of New York.  Each of
the parties hereto waives all right to trial by jury in any action, proceeding
or counterclaim (whether based upon contract, tort or otherwise) related to or
arising out of any of the Transactions or the other transactions contemplated
hereby, or the performance by the Initial lenders, the Lead Arrangers or any of
their respective affiliates of the services contemplated hereby.

12.           Amendments; Counterparts; etc.  No amendment or waiver of any provision
hereof or of the Term Sheets shall be effective unless in writing and signed by
the parties hereto and then only in the specific instance and for the specific
purpose for which given.  This Amended
and Restated Commitment Letter, the Term Sheets and the Second Step Fee Letter
are the only agreements between the parties hereto with respect to the matters
contemplated hereby and thereby and set forth the entire understanding of the
parties with respect thereto.  This
Amended and Restated Commitment Letter may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Delivery of an executed counterpart by
telecopier shall be effective as delivery of a manually executed counterpart.

13.           Patriot Act.  The Initial Lenders hereby notify you that
pursuant to the requirements of the USA Patriot Act, Title III of Pub. L.
107-56 (signed into law October 26, 2001) (the “Patriot Act”), the
Lenders may be required to obtain, verify and record information that
identifies Tribune, which information includes the name, address and tax
identification number and other information regarding it that will allow such
Lender to identify it in accordance with the Patriot Act.  This notice is given in accordance with the
requirements of the Patriot Act and is effective as to the Lenders.

14.           Public Announcements; Notices.  The Initial Lenders and Lead Arrangers may,
subject to your prior consent (not to be unreasonably withheld, delayed or conditioned)
at their expense, publicly announce as they may choose the capacities in which
they or their affiliates have acted hereunder. 
Any notice given pursuant hereto shall be mailed or hand delivered in
writing, if to (i) you, at your address set forth on page one hereof;
(ii) JPMorgan and JPMCB, at 270 Park Avenue, New York, NY  10017, Attention:  Rajesh Kapadia; (iii) Merrill Lynch, at 4
World Financial Center, New York, New York 10080, Attention:  David Tuvlin; (iv) CGMI, at 390 Greenwich
Street, New York, NY 10013, Attention: 
Robert Chen; (v) Bank of America, Banc of America Bridge and BAS, at 9
West 57th Street, New York, New York 10019, Attention:  William Pegler; (vi) in the case of the
foregoing clause (i), with a copy to Sidley Austin LLP, 1 South Dearborn
Street, Chicago, Illinois 60603, Attention: 
Robert Lewis; and (vii) in the case of the foregoing clauses (ii),
(iii), (iv) or (v), with a copy to Cahill Gordon & Reindel LLP, 80 Pine Street, New York, NY 10005,
Attention: Jonathan A. Schaffzin.

(Signature Page
Follows)

 11

Please confirm that the foregoing correctly sets forth
our agreement of the terms hereof and the Second Step Fee Letter by signing and
returning to the Initial Lenders the duplicate copy of this letter and the
Second Step Fee Letter enclosed herewith. 
Unless the Initial Lenders receive your executed duplicate copies hereof
and thereof by 5:00 p.m., New York City time, on April 5, 2007, the commitments
of the Initial Lenders hereunder will expire at such time.

We are pleased to have this opportunity and we look
forward to working with you on this transaction.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen B. Paras

  
	
   

  	
   

  	
  Name:

  	
  Stephen B. Paras

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

	
  

  	
  CITIGROUP GLOBAL MARKETS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert H. Chen

  
	
   

  	
   

  	
  Name:

  	
  Robert H. Chen

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

	
  

  	
  J.P. MORGAN SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Anastasio

  
	
   

  	
   

  	
  Name:

  	
  Robert Anastasio

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Anastasio

  
	
   

  	
   

  	
  Name:

  	
  Robert Anastasio

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 S-1
 

 

	
  

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel R. Petrik

  
	
   

  	
   

  	
  Name:

  	
  Daniel R. Petrik

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

	
  

  	
  BANC OF AMERICA BRIDGE LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James G. Rose

  
	
   

  	
   

  	
  Name:

  	
  James G. Rose

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

	
  

  	
  BANC OF AMERICA SECURITIES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James G. Rose

  
	
   

  	
   

  	
  Name:

  	
  James G. Rose

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

 S-2
 

Accepted and agreed to as of

the date first written above:

TRIBUNE COMPANY

	
  By:

  	
  /s/ Donald C. Grenesko

  	
   

  	
   

  
	
  Name:

  	
  Donald C. Grenesko

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President, Finance and Administration

  	
   

  	
   

  

 

Acknowledged:

EGI-TRB, L.L.C.

	
  By:

  	
  /s/ Philip G. Tinkler

  	
   

  	
   

  
	
  Name:

  	
  Philip G. Tinkler

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  

 

 S-3

Annex I

Estimated Sources and Uses of
Funds

(in $ millions)

	
  Sources

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Uses

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Options proceeds(1)

  	
   

  	
  $

  	
  215.0

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Incremental Zell Investment

  	
   

  	
  65.0

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revolving Facility(2)

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Incremental Term Loan

  	
   

  	
  2,105.0

  	
   

  	
  Acquisition
  consideration(3)

  	
   

  	
  $

  	
  4,261.0

  	
   

  
	
  Senior Notes/Senior
  Bridge Facility

  	
   

  	
  2,100.0

  	
   

  	
  Estimated
  fees and expenses(4)

  	
   

  	
  224.0

  	
   

  
	
  Rollover Debt and
  PHONES(5)

  	
   

  	
  9,106.0

  	
   

  	
  Rollover
  Debt and PHONES(5)

  	
   

  	
  9,106.0

  	
   

  
	
  Total Sources

  	
   

  	
  $

  	
  13,591.0

  	
   

  	
  Total Uses

  	
   

  	
  $

  	
  13,591.0

  	
   

  

(1)             Includes
$15.0 million of tax benefits in 2007.

(2)             $750,000,000
of commitments on the Second Step Closing Date; $0 drawn on the Second Step Closing
Date.

(3)             Includes
repayment of the Zell Note to the extent Tribune has not elected to convert it
into common equity in accordance with its terms.

(4)             Includes
approximately $104.0 million of cash distributions resulting from the change of
control.

(5)             Includes
approximately $1,521.0 million
of outstanding notes, the $7,015 million Tranche B Facility and $900.0 million
of PHONES.

Annex II

Project Tower

Summary of Additional
Conditions Precedent

Except as otherwise set forth below, the initial
borrowing under each of the Second Step Facilities shall be subject to the
contemporaneous or prior satisfaction of the following additional conditions:

1.             The Lenders shall
have received audited consolidated balance sheets of Tribune for the most
recent fiscal year ended on or before 75 days before the Second Step Closing
Date and related statements of income, stockholders’ equity and cash flows of
Tribune and unaudited consolidated balance sheets and related statements of
income, stockholders’ equity and cash flows of Tribune for each fiscal quarter
ended after the date of the audited financial statements provided above and
ended on or before 30 days before the Second Step Closing Date.

2.             The Lenders shall
have received a pro forma consolidated balance sheet of Tribune as of the
fiscal quarter (including the fourth quarter) most recently ended prior to the
Second Step Closing Date, after giving effect to the Second Step
Transactions.  The Lead Arrangers shall
have received reasonably detailed pro forma consolidated financial projections
prepared by or on behalf of Tribune for Tribune and its consolidated entities
for the five-fiscal year period after the Second Step Closing Date.

3.             All accrued fees
and expenses (including the reasonable fees and expenses of counsel to the Lead
Arrangers) of the Lead Arrangers in connection with the Operative Documents
shall have been paid; provided that such fees and expenses shall have
been invoiced at least two business days prior to the Second Step Closing Date.

4.             As a condition to
the Incremental Facility, the Lenders thereunder shall have a valid lien on and
security interest in the collateral referred to in Exhibit A under “Collateral”
that is equivalent to the lien in favor of the other Lenders under the Tranche
B Facility.

5.             As a condition to
the Senior Bridge Facility, the Lead Arrangers shall have received, not later
than 20 business days prior to the Second Step Closing Date and at the Second
Step Closing Date, a complete printed preliminary prospectus or preliminary
offering memorandum or preliminary private placement memorandum suitable for
use in a customary “high-yield road show” relating to the Senior Notes, which
will include (unless and to the extent that you and the Lead Arrangers
otherwise agree) all financial statements and other data to be included therein
(including all audited financial statements, all unaudited financial statements
(which shall have been reviewed by the independent accountants for Tribune as
provided in Statement on Auditing Standards No. 100) and all appropriate
pro forma financial statements prepared in accordance with, or reconciled to,
U.S. GAAP and prepared in accordance with Regulation S-X under the Securities
Act), and all other data (including selected financial data) that the
Securities and Exchange Commission would require in a registered offering of
the Senior Notes or that would be necessary for the Lead Arrangers to receive
customary “comfort” (including “negative assur-

ance” comfort) from independent accountants in
connection with the offering of the Senior Notes.  Upon delivery of such prospectus, offering
memorandum or private placement memorandum you will, and will use commercially
reasonable efforts to cause Tribune’s senior management personnel to
participate in, a customary road show for the sale of the Senior Notes.

6.             Delivery of
reasonably satisfactory legal opinions, including customary opinions of counsel
to the ESOP (to the extent requested by the Lead Arrangers) and of Tribune’s
counsel; absence of prepayment events under other material debt instruments; no
creation of liens on Collateral (as defined in Exhibit A) under other debt
instruments or other agreements and no creation of material liens on assets not
constituting Collateral, in each case as a result of the transactions
contemplated hereby; customary closing certificates, including evidence of authority,
charter documents and officers’ incumbency certificates; to the extent requested
by the Lead Arrangers, delivery of the opinion of the ESOP trustee’s financial
advisor; and to the extent requested by the Lead Arrangers, delivery of a
customary certificate of the ESOP trustee.

7.             The Acquisition
shall have been consummated in accordance with the terms and conditions of the
Acquisition Agreement and no provision thereof shall have been waived, amended,
supplemented or otherwise modified and no action by Tribune prohibited by the
Acquisition Agreement shall have been consented to, in each case in a manner
material and adverse to the Lenders without the consent of the Lead Arrangers.

8.             Each of the First
Step Transactions shall have been consummated and the Credit Agreement (as
defined in the First Step Commitment Letter) shall have been executed and
delivered shall be in full force and effect and there shall not have been any
amendments, modifications or waivers thereto subsequent to the execution and
delivery thereof that are adverse to the Lenders under the Incremental Facility
in any material respect.

9.             As a condition to
the Incremental Facility, no default or event of default shall result from the
making of term loans thereunder.

10.           Zell and Holdco
shall have entered an equity commitment agreement or subscription agreement
whereby Zell (either directly or through Holdco) will agree to invest up to
$100.0 million (less the Investment Reduction Amount (as defined in the First
Step Commitment Letter)) on the later to occur of March 25, 2008 and the Second
Step Closing Date, in Junior Capital (as defined in the First Step Commitment
Letter) of Tribune if Tribune has not made the election to be treated as an S
Corporation under the Code (the “S. Corp Election”) on or prior to March
15, 2008, such agreement to be in form and substance reasonably satisfactory to
the Lead Arrangers and granting third-party enforcement rights in favor of the
Administrative Agent on behalf of the Lenders (the “Zell Investment Agreement”).

11.           The ratio of total
outstanding indebtedness of Tribune that is guaranteed by any of its
subsidiaries and outstanding indebtedness of any of the Guarantors (on a consolidated
basis) to trailing four quarter EBITDA (as defined in Annex II to this Exhibit
A) shall not exceed 9.00:1:00 when measured on a pro forma basis as of the
last day of the fiscal quarter ending immediately prior to the date of the
Acquisition (giving effect to the Second Step Transactions and other customary
and appropriate pro forma adjustment events, including any acquisi-

 2
 

tions or
dispositions after the beginning of the relevant determination period but prior
to or simultaneous with the consummation of the Acquisition).

12.           The Lead Arrangers
shall be reasonably satisfied that subsequent to the consummation of the First
Step Transactions, there shall not have been any changes to the terms and conditions
of the documentation regarding the establishment of the ESOP (including the
provisions of the ESOP relating to redemptions and distributions) that are material
and adverse to Lenders.  The Lead
Arrangers shall be reasonably satisfied that subsequent to the consummation of
the First Step Transactions, the ESOP shall not have entered into any
transactions (a) constituting a “prohibited transaction” as defined in the Code,
(b) that violate fiduciary standards imposed by Section 404(a) of ERISA or (c)
adversely affect the qualified status of the ESOP under Sections 401(a) or
4975(e)(7) of the Code.

13.           The Holdco Purchase shall be
consummated substantially concurrent with the consummation of the Acquisition.

 3Exhibit
10.12

[EXECUTION COPY]

INVESTOR RIGHTS AGREEMENT

by and among

TRIBUNE COMPANY,

EGI-TRB, L.L.C.

and

GREATBANC TRUST COMPANY,

solely as trustee of the

TRIBUNE EMPLOYEE STOCK
OWNERSHIP TRUST

which forms a part of the

TRIBUNE EMPLOYEE STOCK OWNERSHIP PLAN

Dated as of April 1, 2007

INVESTOR RIGHTS
AGREEMENT

This INVESTOR RIGHTS AGREEMENT (this “Agreement”) is entered
this 1st day of April, 2007, by and among Tribune Company, a Delaware
corporation (the “Company”), EGI-TRB, L.L.C., a Delaware limited
liability company (“EGI-TRB”),  and
GreatBanc Trust Company, not in its individual or corporate capacity, but
solely as trustee (the “ESOP Fiduciary”) of the Tribune Employee Stock
Ownership Trust, which forms a part of the Tribune Employee Stock Ownership
Plan (the “ESOP” and together with EGI-TRB, the “Initial Shareholders”).

W  I  T  N  E
S  S  E  T  H :

WHEREAS, concurrently herewith, EGI-TRB, the ESOP, Tesop Corporation, a
Delaware corporation (“Merger Sub”), and the Company have entered into
that certain Agreement and Plan of Merger, dated as of April 1, 2007 (the “Merger
Agreement”), pursuant to which Merger Sub, a wholly owned subsidiary of the
ESOP, will be merged with and into the Company, with the Company surviving the
Merger (the “Merger”), on the terms and subject to the conditions set forth
therein.

WHEREAS, concurrently herewith, the Company and
EGI-TRB have entered into a Securities Purchase Agreement (the “EGI Purchase
Agreement”) pursuant to which EGI-TRB has,
on the terms and subject to the conditions set forth in the EGI
Purchase Agreement, agreed to purchase (i) (a) 1,470,588  shares of Common Stock prior to
consummation of the Merger and (b) a $200 million unsecured subordinated
exchangeable promissory note in the form attached as an exhibit thereto, and
(ii) (y) a $225 million unsecured subordinated promissory note in the form
attached as an exhibit thereto and (z) a warrant to purchase 43,478,261 shares
of Common Stock of the Company immediately following consummation of the Merger
(the “Warrant”) pursuant to a warrant agreement in the form attached as
an exhibit thereto (the “Warrant Agreement”).

WHEREAS,
concurrently herewith, the ESOP Fiduciary, on behalf of the ESOP, and the
Company have entered into an Equity Purchase Agreement (the “ESOP Purchase
Agreement”) pursuant to which the ESOP  has,  on the terms and subject to the conditions
set forth in the ESOP Purchase Agreement, agreed to purchase 8,928,571  shares of Common Stock prior to
consummation of the Merger (the “ESOP Purchase”).

WHEREAS, the Company and each of the Initial Shareholders have entered
into this Agreement for purposes, among others, of (a) establishing the
composition of the Company’s board of directors (the “Board”),
(b) granting to the Shareholders (as defined herein) certain rights in
connection with the sale or transfer of Shares (as defined herein) and
(c) granting to the Shareholders certain other rights, including
information rights, with respect to the Company, in each case, upon
consummation of the Merger.

NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties (as defined herein) hereby agree
as follows:

ARTICLE I

DEFINITIONS

Section 1.1             Definitions.  When used in this Agreement, the following
terms shall have the meanings set forth below:

(a)           “Additional Financing” shall
have the meaning set forth in Section 4.4.

(b)           “Affiliate” shall mean, with
respect to a Person, another Person who, directly or indirectly, controls, is
controlled by or is under common control with such Person, including, without
limitation, any general partner, officer, director, or manager of such Person;
provided, however, that no Person for whom the ESOP Fiduciary serves as trustee
shall be deemed to be an Affiliate of the ESOP Fiduciary.

(c)           “Agreement” shall have the
meaning set forth in the Preamble.

(d)           “Annual Budget” shall have the
meaning set forth in Section 7.1.

(e)           “Board” shall have the meaning set forth in the
Recitals.

(f)            “Code” shall mean the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder.

(g)           “Common Stock” shall mean the
common stock, par value $.01 per share, of the Company.

(h)           “Company” shall have the
meaning set forth in Preamble.

(i)            “Convertible Securities”
shall mean any evidences of indebtedness, shares or other securities directly
or indirectly convertible into or exchangeable for Common Stock, but excluding
Options.

(j)            “Effective Date” shall mean
the date of consummation of the Merger.

(k)           “EGI Purchase Agreement” shall have the meaning set
forth in the Recitals.

(l)            “EGI Transferee” shall mean
any direct or indirect Affiliate of EGI-TRB, Equity Group Investments, L.L.C.
or Samuel Zell, and any senior employee of Equity Group Investments,
L.L.C. and any direct or indirect Affiliate thereof.

(m)          “EGI-TRB” shall have the
meaning set forth in the Preamble.

(n)           “EGI-TRB Director” shall have
the meaning set forth in Section 2.1.

(o)           “ESOP” shall have the meaning
set forth in the Preamble.

(p)           “ESOP Fiduciary” shall have
the meaning set forth in the Preamble.

 2
 

(q)           “ESOP Loan Agreement” shall
mean the Loan Agreement, dated as of the date of the ESOP Purchase, by and
between the Company and the ESOP Fiduciary.

(r)            “ESOP Pledge Agreement” shall
mean the Stock Pledge Agreement, dated as of the date of the ESOP Purchase, by
and between the Company and the ESOP Fiduciary.

(s)           “ESOP Purchase” shall have the
meaning set forth in the Recitals.

(t)            “ESOP Purchase Agreement”
shall have the meaning set forth in the Recitals.

(u)           “Excluded Transactions” shall
mean (a) the issuance of shares of Common Stock, Options or Convertible
Securities as a dividend or distribution on Shares, (b) the issuance of
shares of Common Stock, Options or Convertible Securities by reason of a stock
split, split-up or other distribution on shares of Common Stock, (c) the
issuance of shares of Common Stock or Options to employees or directors of, or
consultants or advisors to, the Company or any of its subsidiaries pursuant to
a compensatory plan, agreement or arrangement approved by the Board or
(d) the issuance of shares of Common Stock or Convertible Securities upon
the exercise of Options or upon the conversion or exchange of Convertible
Securities, in each case, provided such issuance is pursuant to the terms of
such Option or Convertible Security.

(v)           “Fully-Exercising Shareholder”
shall have the meaning set forth in Section 4.2.

(w)          “General Notice” shall have the
meaning set forth in Section 4.2.

(x)            “Independent Director” shall
have the meaning set forth in the Company’s By-laws in effect from time to
time.

(y)           “Initial Directors” shall mean
the persons initially designated as directors on the Effective Date, including
the directors designated in accordance with the provisions of Section 2.1
hereof.

(z)            “Initial Shareholders” shall
have the meaning set forth in the Preamble.

(aa)         “Joinder” shall have the meaning
set forth in Section 3.6.

(bb)         “Merger” shall have the meaning
set forth in the Recitals.

(cc)         “Merger Agreement” shall have
the meaning set forth in the Recitals.

(dd)         “Merger Sub” shall have the
meaning set forth in the Recitals.

(ee)         “Option” shall mean any right,
option or warrant to subscribe for, purchase or otherwise acquire Common Stock
or Convertible Securities.

(ff)           “Other Shareholder” shall have
the meaning set forth in Section 3.2.

(gg)         “Parties” shall mean the parties to this Agreement.

 3
 

(hh)         “Permitted Transferees” shall have the meaning set
forth in Section 3.3.

(ii)           “Person” shall mean an individual, corporation,
partnership, limited liability company, association, trust, unincorporated
organization, entity or group.

(jj)           “Qualified Public Offering” shall mean a firm
commitment underwritten public offering of the Common Stock to the public with
gross proceeds to the Company of not less than $250 million, pursuant to an
effective registration statement filed under the Securities Act of 1933, as
amended.

(kk)         “Sale of the Company” shall mean either (a) a merger
or consolidation in which (i) the Company is a constituent party or (ii) a
subsidiary of the Company is a constituent party and the Company issues shares
of its capital stock pursuant to such merger or consolidation, except any such
merger or consolidation involving the Company or a subsidiary pursuant to which
the shares of capital stock of the Company outstanding immediately prior to
such merger or consolidation continue to represent, or are converted into or
exchanged for shares of capital stock that represent, immediately following
such merger or consolidation, at least a majority, by voting power, of the
capital stock of (A) the surviving or resulting corporation or (B) if the
surviving or resulting corporation is a wholly owned subsidiary of another
corporation immediately following such merger or consolidation, the parent
corporation of such surviving or resulting corporation (provided that, for
purposes of this definition, all Shares issuable upon exercise of rights,
options or warrants to subscribe for, purchase or otherwise acquire Shares or
securities convertible into Shares, which are outstanding immediately prior to
such merger or consolidation or upon conversion of convertible securities
outstanding immediately prior to such merger or consolidation shall be deemed
to be outstanding immediately prior to such merger or consolidation and, if
applicable, converted or exchanged in such merger or consolidation on the same
terms as the actual outstanding Shares are converted or exchanged), (b) the
sale, lease, transfer, exclusive license or other disposition, in a single
transaction or series of related transactions, by the Company or any subsidiary
of the Company of all or substantially all the assets of the Company and its
subsidiaries taken as a whole, or the sale or disposition (whether by merger or
otherwise) of one or more subsidiaries of the Company if substantially all of
the assets of the Company and its subsidiaries taken as a whole are held by
such subsidiary or subsidiaries, except where such sale, lease, transfer,
exclusive license or other disposition is to a wholly owned subsidiary of the
Company or (c) a Stock Sale. 
Notwithstanding the foregoing, a “Sale of the Company” shall not
include the Merger or any other transaction contemplated by the Merger
Agreement.

(ll)           “Sale Notice” shall have the meaning set forth in Section
3.2.

(mm)       “Shareholder” or “Shareholders” shall mean (and
this Agreement shall bind and create rights in) the Initial Shareholders and
any other transferee to which (a) any Shares are permitted by this Agreement to
be issued or Transferred or (b) any Warrants are assigned, in each case, in
accordance with the terms of this Agreement. 
Each of the foregoing Persons shall remain a Shareholder as long as he,
she or it continues to own Shares or Warrants in the Company.

 4
 

(nn)         “Shares” shall mean (a) the shares of Common Stock
acquired by the Initial Shareholders as a result of the Merger and the ESOP
Purchase or otherwise, (b) the shares of Common Stock issued upon conversion of
the Warrant and (c) any Common Stock issued with respect to the securities
referred to in clauses (a) and (b) by way of stock dividend or stock split or
in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization.  “Shares”
shall also include shares or other interests in any successor to the Company,
whether by merger, consolidation or otherwise.

(oo)         “Stock Sale” shall mean a transac­tion or series of
related transactions in which a Person, or a group of related Persons, acquires
from Shareholders of the Company capital stock and other voting securities
representing more than fifty percent (50%) of the out­standing voting power of
the Company.

(pp)         “Transfer” or “Transferred” shall mean to
directly or indirectly sell, assign, give, mortgage, pledge, hypothecate,
issue, bequeath or in any manner encumber or dispose of, or permit to be sold,
assigned, encumbered, attached or otherwise disposed of in any manner, whether
voluntarily, involuntarily or by operation of law, with or without
consideration other than as part of a distribution of Shares by the ESOP to a
participant of the ESOP as may be required by the terms thereof.

(qq)         “Transferring Shareholder” shall have the meaning set
forth in Section 3.2.

(rr)           “Warrant” shall have the meaning set forth in the
Recitals.

(ss)         “Warrant Agreement” shall have the meaning set forth
in the Recitals.

(tt)           “Zell Family Group” shall mean Samuel Zell and his
spouse, lineal ancestors and descendants (whether natural or adopted), and any
trust or retirement account primarily for the benefit of Samuel Zell and/or his
spouse, lineal ancestors and descendants.

ARTICLE
II

CORPORATE GOVERNANCE

Section 2.1             Size and  Composition of the Board.  Upon and following the Effective Date, each
Shareholder agrees that in any election of directors of the Company, such
Shareholder shall vote, or cause to be voted, all shares of Common Stock and
any other voting securities of the Company owned by such Shareholder, or over
which such Shareholder has voting control, and shall take all other necessary
or desirable actions within such Shareholder’s control (whether in the capacity
of a Shareholder, director, member of a Board committee or officer of the
Company or otherwise, and including, without limitation, attendance at meetings
in person or by proxy for purposes of obtaining a quorum and execution of
written consents in lieu of meetings), and the Company shall take all necessary
or desirable actions within its control (including, without limitation, calling
special Board and shareholder meetings), so that:

(a)           the Initial Directors shall serve as
directors until the third (3rd) annual election following consummation of the
Merger;

 5
 

(b)           there shall be two (2) directors
designated by EGI-TRB (each an “EGI-TRB Director”);

(c)           there shall be one (1) director who shall be the Company’s
chief executive officer; provided that if for any reason the chief executive
officer of the Company shall cease to serve in such capacity, each Shareholder
shall take all other necessary or desirable actions within such Shareholder’s
control (whether in the capacity of a Shareholder, director, member of a Board
committee or officer of the Company or otherwise, and including, without
limitation, attendance at meetings in person or by proxy for purposes of
obtaining a quorum and execution of written consents in lieu of meetings), and
the Company shall take all necessary or desirable actions within its control,
to (i) remove the former chief executive officer of the Company from the Board
if such person has not resigned as a member of the Board and (ii) elect or
appoint such person’s replacement as chief executive officer of the Company as
a director;

Section 2.2             Removal of EGI-TRB Directors.  Subject to any limitation in the Company’s
By-laws, each Shareholder agrees that it shall take all other necessary or
desirable actions within such Shareholder’s control (whether in the capacity of
a Shareholder, director, member of a Board committee or officer of the Company
or otherwise), and the Company shall take all necessary or desirable actions
within its control, to ensure that no EGI-TRB Director elected or appointed as
a member of the Board pursuant to Section 2.1 may be removed from office
unless such removal is directed or approved by EGI-TRB (in its sole and
absolute discretion).

Section 2.3             Written Consent.  All Shareholders agree to execute any written
consents required to perform the obligations under Sections 2.1 and
2.2 of this Agreement, and the Company agrees at the request of any
Party entitled to designate directors to call a special meeting of shareholders
for the purpose of electing directors.

Section 2.4             No Liability for Election or
Appointment of Recommended Directors. 
No Party, nor any Affiliate of any such Party, shall have any liability
as a result of designating a person for election or appointment as a Board
member or committee member for any act or omission by such designated person in
his or her capacity as a Board member or committee member, as applicable, nor
shall any Party have any liability as a result of voting for any such designee
in accordance with the provisions of this Agreement.

Section 2.5             Compensation of Board.  Upon and following the Effective Date, the
Company agrees to reimburse all members of the Board for their actual and
reasonable out-of-pocket expenses incurred in attending meetings of the Board
and all committees thereof, and otherwise incurred in fulfilling their duties
as Board members or committee members, as applicable, and pay such reasonable
compensation to members of the Board as the Board shall from time to time
determine.

Section 2.6             No Other ESOP Obligations.  For the avoidance of doubt, nothing in this Article
II shall require the ESOP or its participants to vote in any manner on
matters other than the election of directors.  

 6
 

Section 2.7             Termination.  Subject to Article IX, the rights of
EGI-TRB under Sections 2.1 and 2.2 shall continue for so
long as EGI-TRB and its Permitted Transferees hold in the aggregate at least
ten percent (10%) of the outstanding Shares (including for purposes of this Section
2.7, Shares subject to the Warrant) on a fully diluted basis.

ARTICLE
III

TRANSFERS

Section 3.1             Transfer of Shares.  Subject to Article VI, upon and
following the Effective Date, no Shareholder shall Transfer its Shares, except
(a) pursuant to the provisions of Section 3.2, (b) pursuant to a
Transfer of not more than two percent (2%) of the outstanding Common Stock (on
a fully diluted basis) to any transferee or (c) to a Permitted Transferee;
provided that in no event shall any Transfer of Shares pursuant to Section
3.2 be made for any consideration other than cash payable upon consummation
of such Transfer or in installments over time and no Shares may be pledged
(except for a pledge of Shares by a transferee to secure indebtedness to the
transferor thereof hereunder).  In
connection with any transfer pursuant to Section 3.2, no Shareholder
shall consummate any Transfer until thirty (30) calendar days after delivery to
the Company and the other Shareholders of such Shareholder’s Sale Notice,
unless the parties to the Transfer have been finally determined pursuant to
this Article III prior to the expiration of such thirty (30) calendar
day period.

Section 3.2             Co-Sale Rights.  Subject to Section 3.1, upon and
following the Effective Date, at least thirty (30) calendar days prior to any
Transfer of Shares, the transferring Shareholder (the “Transferring
Shareholder”) shall deliver a written notice (the “Sale Notice”) to
the Company and the other Shareholders (the “Other Shareholders”)
specifying in reasonable detail the identity of the prospective transferee(s),
the number of Shares to be Transferred and the terms and conditions of the
Transfer.  The Other Shareholders may
elect to participate in such Transfer as sellers at the same price per share
and on the same terms by delivering written notice to the Transferring
Shareholder within thirty (30)  calendar
days after delivery of the Sale Notice. 
If any Other Shareholders have elected to participate in such Transfer,
the Transferring Shareholder and such Other Shareholders shall be entitled to
sell in the contemplated Transfer, at the same price and on the same terms, a
number of Shares equal to the result of (a) an amount equal to (i) the
percentage of Shares owned by such Person (including for these purposes, in the
case of the holder of the Warrant, the Shares underlying the Warrant) divided
by (ii) the aggregate percentage of Shares owned by the Transferring
Shareholder and the Other Shareholders participating in such sale (including
for these purposes, in the case of the holder of the Warrant, the Shares
underlying the Warrant) multiplied by (b) the number of Shares to be
sold in the contemplated Transfer.

Each
Transferring Shareholder shall use reasonable best efforts to obtain the
agreement of the prospective transferee(s) to the participation of the Other
Shareholders in any contemplated Transfer, and no Transferring Shareholder
shall Transfer any of its Shares to any prospective transferee if such
prospective transferee(s) declines to allow the participation of the Other
Shareholders.  Each Shareholder
transferring Shares pursuant to this Section 3.2 shall pay its pro rata
share (based on the number of Shares to be Transferred) of the expenses
incurred by the Company and the Transferring Shareholder in connection with
such Transfer and shall be obligated to join on a pro rata basis (based on the
number of Shares to be Transferred) in any

 7
 

indemnification or other obligations that the
Transferring Shareholder agrees to provide in connection with such transfer
(other than any such obligations that relate specifically to a particular
Shareholder, such as indemnification with respect to representations and
warranties given by a Shareholder regarding such Shareholder’s title to and
ownership of Shares; provided that no holder shall be obligated in connection
with such Transfer to agree to indemnify or hold harmless the prospective
transferee(s) with respect to an amount in excess of the net cash proceeds paid
to such holder in connection with such Transfer).

Section 3.3             Permitted Transfers.  Subject to Article VI, the
restrictions set forth in this Article III shall not apply with respect
to any Transfer of Shares (a) by any Shareholder to or among its
Affiliates, (b) by EGI-TRB to or among any EGI Transferee or (c) by
EGI-TRB to or among any member of the Zell Family Group (collectively referred
to herein as “Permitted Transferees”); provided that the restrictions
contained in this Article III and Article VI shall continue
to be applicable to such Shares after any such Transfer.  Notwithstanding the foregoing, no Party
hereto shall avoid the provisions of this Agreement by making one or more
transfers to one or more Permitted Transferees and then disposing of all or any
portion of such party’s interest in any such Permitted Transferee.

Section 3.4             ESOP Provisions.  Notwithstanding anything in this Agreement to
the contrary, nothing in this Agreement shall be construed as a restriction
upon the ESOP’s ability to Transfer its Shares if such Transfer is required by
the exercise of the Trustee’s fiduciary duty to the ESOP and its participants.

Section 3.5             Transfers in Violation of
Agreement.  Any Transfer or attempted
Transfer of any Shares in violation of any provision of this Agreement shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Shares as the owner of such shares for any
purpose.

Section 3.6             Joinder.  Upon and following the Effective Date, prior
to Transferring any Shares (other than pursuant to a Qualified Public Offering
or Sale of the Company) to any Person, the Transferring Shareholder shall cause
the prospective transferee to be bound by this Agreement and to execute and
deliver to the Company and the other Shareholders a joinder in the form of Exhibit
A hereto (a “Joinder”).

Section 3.7             Legend.  Upon and following the Effective Date, each
certificate evidencing Shares and each certificate issued in exchange for or
upon the transfer of any Shares (if such shares remain Shares after such
transfer) shall be stamped or otherwise imprinted with a legend in
substantially the following form:

“The securities represented by this certificate are
subject to an Investor Rights Agreement dated as of April 1, 2007, among
the issuer of such securities (the “Company”) and certain of the Company’s
shareholders, as amended and modified from time to time.  A copy of such Investor Rights Agreement
shall be furnished without charge by the Company to the holder hereof upon
written request.”

 8
 

The Company shall
imprint such legend on certificates evidencing Shares outstanding as of the
date hereof.  The legend set forth above
shall be removed from the certificates evidencing any shares which cease to be
Shares hereunder.

Section 3.8             Further Assurances.  The parties hereto agree that, to the extent
the exercise of any rights or the enforcement of any obligations of any party
hereto requires the prior consent of the Federal Communications Commission to a
transfer of control of the Company pursuant to law then in effect, the parties
hereto shall cooperate fully in obtaining all necessary prior approval prior to
the taking of any action that would constitute or be deemed to effect a
transfer of control of the Company requiring such prior approval.

Section 3.9             Termination.  Subject to Articles VI and IX,
the restrictions on the Transfer of Shares set forth in this Article III
shall terminate upon the earlier to occur and shall not be applicable to
Transfers occurring as part of (a) a Qualified Public Offering and (b) a Sale
of the Company.

ARTICLE IV

PRE-EMPTIVE RIGHTS

Section 4.1             General.  Subject to the terms and conditions specified
in this Article IV, and applicable securities laws, the Company hereby
grants to the Shareholders a right of first offer with respect to sales by the
Company of its Shares following the Effective Date, as follows:

Section 4.2             Procedures.  Following the Effective Date, each time the
Company proposes to offer any Shares, the Company shall first make an offering
of such Shares to each Shareholder in accordance with the following provisions:

(a)           The Company shall deliver a written notice (“General
Notice”) to the Shareholders stating (i) its bona fide intention to offer
such Shares, (ii) the number of such Shares to be offered and (iii) the price
and terms upon which it proposes to offer such Shares.

(b)           By written notification received by the Company within ten
(10) calendar days after the giving of the General Notice, each Shareholder may
elect to purchase, at the price and on the terms specified in the General
Notice, up to that portion of such Shares that equals the proportion that the
number of Shares then held by such Shareholder (including for these purposes,
in the case of the holder of the Warrant, the Shares underlying the Warrant)
bears to the total number of Shares then outstanding (including the Shares
underlying the Warrant).  The Company
shall promptly, in writing, inform each Shareholder that elects to purchase all
the Shares available to it (a “Fully-Exercising Shareholder”) of any
other Shareholder’s failure to do likewise. 
During the ten (10) calendar day period commencing after such
information is given, each Fully-Exercising Shareholder may elect to purchase
up to that portion of the Shares for which Shareholders were entitled to
subscribe, but which were not subscribed for by the Shareholders, that is equal
to the proportion that the number of Shares then held by such Fully-Exercising
Shareholder (including for these purposes, in the case of the holder of the
Warrant, the Shares underlying the Warrant) bears to the total number of Shares
then held by all Fully-Exercising Shareholders who wish to purchase some of the
unsubscribed Shares (including for these purposes, in the case of the holder of
the Warrant, the Shares underlying the Warrant).

 9

(c)           If
all Shares that the Shareholders are entitled to obtain pursuant to Sections
4.2(a) and (b) are not elected to be obtained as provided in Sections
4.2(a) and (b) hereof, the Company may, subject to Article VI,
during the ninety (90) calendar day period following the expiration of the
period provided in Sections 4.2(a) and (b) hereof, offer the
remaining unsubscribed portion of such Shares to any Person or Persons at a
price not less than that, and upon terms no more favorable to the offeree than
those, specified in the General Notice. 
If the Company does not enter into an agreement for the sale of the
Shares within such period, or if such agreement is not consummated within
ninety (90) calendar days of the execution thereof, the right provided hereunder
shall be deemed to be revived and such Shares shall not be offered unless first
reoffered to the Shareholders in accordance with this Section 4.2.

Section 4.3             Limitations.  The rights provided in this Article IV
shall not be applicable to Shares issued in any Excluded Transaction.  In addition to the foregoing, the right of
first offer in this Article IV shall not be applicable with respect to
any Shareholder in any subsequent offering of Shares if (a) at the time of such
offering, the Shareholder is not an “accredited investor,” as that term is then
defined in Rule 501(a) of the Securities Act of 1933, as amended, and (b) such
offering of Shares is otherwise being offered only to accredited investors.

Section 4.4             Additional
Financing.  The Company shall use
reasonable best efforts to lend to the ESOP under a note sufficient funds to
permit the ESOP to exercise its preemptive rights in full pursuant to this Article IV
(an “Additional Financing”); provided, however, that the Company shall
have no obligation to provide the Additional Financing (a) if providing
such Additional Financing would violate any covenant or other obligation in
respect of then-outstanding indebtedness or (b) the Board reasonably
determines that providing such Additional Financing would adversely affect in a
material manner the Company’s business plans and objectives, financial position
or results of operations.  The Company
shall be deemed to have satisfied its obligations under this Section 4.4
if it shall have offered such Additional Financing on terms substantially
similar to or more favorable than existing loan obligations between the Company
and the ESOP.

Section 4.5             Termination.  Subject to Article IX, the covenants
set forth in this Article IV shall terminate upon the earlier to occur
and shall not be applicable to Transfers occurring as part of (a) a Qualified
Public Offering or (b) a Sale of the Company.

ARTICLE V

RESTRICTIVE COVENANTS

The Company hereby covenants and agrees that,
from and after the Effective Date, it shall not, without the prior approval or
prior written consent of a majority of the Board, which majority shall include
a majority of the Independent Directors and one EGI-TRB Director, enter into any transaction, contract, agreement or
arrangement to:

(a)           amend,
alter or repeal any provision of the Certificate of Incorporation or By-laws of
the Company;

(b)           create,
or authorize the creation of, or issue or obligate itself to issue shares of,
any additional class or series of capital stock other than shares issued and
sold to the 

 10
 

ESOP at fair market value solely for purposes of maintaining its 51%
equity ownership of the Company, on a fully diluted basis;

(c)           liquidate,
dissolve or wind-up the business and affairs of the Company, or consent to any
of the foregoing;

(d)           purchase
or redeem (or permit any subsidiary to purchase or redeem) or pay or declare
any dividend or make any distribution on, any shares of capital stock of the
Company other than (i) repurchases of stock from former employees, officers,
directors, consultants or other Persons who performed services for the Company
or any subsidiary in connection with the cessation of such employment or
service, (ii) dividends or distributions necessary to enable the ESOP to make
all payments due under the terms of the ESOP Loan Agreement as they come due
and (iii) repurchases of stock from the ESOP as required by the terms of the
ESOP plan document;

(e)           engage
in transactions with Affiliates other than in their capacity as a stockholder,
director, officer or employee of the Company, including any transaction,
contract, agreement or arrangement between the ESOP and the Company, or any
amendment or waiver thereof, other than this Agreement, the Merger Agreement,
the ESOP Purchase Agreement, the ESOP Loan Agreement and the ESOP Pledge
Agreement, and the transactions contemplated thereby;

(f)            make, or permit any subsidiary to make, any loan or
advance to, any subsidiary or other corporation, partnership or other entity
unless it is wholly owned by the Company;

(g)           make, or permit any subsidiary to make, any loan or
advance to any Person, including, without limitation, any employee or director
of the Company or any subsidiary, except (i) advances and similar expenditures
in the ordinary course of business or under the terms of an employee stock or
option plan approved by the Board, (ii) notes that may be issued by the Company
to participants of the ESOP under the terms of the ESOP and
(iii) financing provided to the ESOP pursuant to Section 4.4;

(h)           guarantee, directly or indirectly, or permit any
subsidiary to guarantee, directly or indirectly, any indebtedness except for
trade accounts of the Company or any subsidiary arising in the ordinary course
of business;

(i)            incur any aggregate indebtedness in excess of $250
million that is not already included in the Annual Budget approved by the
Board, other than trade credit incurred in the ordinary course of business;

(j)            acquire any assets or securities of any Person in a
transaction resulting in payments by the Company in an aggregate amount in
excess of $250 million;

(k)           sell, assign, license, pledge or encumber any assets
of the Company for an amount in excess of $250 million;

 11
 

(l)            enter into any corporate strategic relationship
involving the payment, contribution, or assignment by the Company or to the
Company of money or assets greater than $250 million;

(m)          change the fiscal year of the Company; or

(n)           elect not to qualify, or continue to qualify as an S
corporation.

ARTICLE VI

S CORPORATION COVENANTS

Section 6.1             Election
of S Corporation Status.  The Company
and the Shareholders agree to take all actions necessary to enable and allow
the Company to elect, and maintain an election, to be treated as an S
corporation under the Code as soon as reasonably practicable following the Effective
Date (but, in any event, not later than the first day of the Company’s fiscal
year immediately following the fiscal year in which the Effective Date
occurs).  The Company shall elect the
calendar year as its fiscal year in connection with its election of
S corporation status.

Section 6.2             Change
of Shareholder Status.  Neither the
Company nor any Shareholder may cause or effect a change in the status of a
Shareholder or related party that would cause (i) the Shareholder to
become an ineligible S corporation holder, (ii) the Company to become
ineligible for S corporation status or (iii) the S corporation status of
the Company to terminate.

Section 6.3             Exercise
of a Warrant.  For so long as the
Company maintains its status as an S corporation, no Shareholder may exercise a
Warrant if, as a result of such exercise, the Company becomes ineligible for S
corporation status.

Section 6.4             Shareholder
Acknowledgment of S Corporation Status. 
Each Shareholder acknowledges that a termination of the Company’s status
as an S corporation by reason of a Transfer of Shares or the exercise of a
Warrant in violation of this Article VI or a change of status pursuant
to Section 6.2 may cause material adverse tax effects to the other
Shareholders.  For this reason, any Shareholder
who contemplates a Transfer of Shares, an exercise of a Warrant or a change of
status pursuant to Section 6.2 agrees to advise the Company at least
thirty (30) days (or such shorter period as the Company may agree) in advance
of any such Transfer, exercise or change of status, so that the Company may
take action to preserve its status as an S corporation.  Each Shareholder agrees that any such
Transfer, exercise or change of status that causes the Company to become
ineligible for S corporation status may and should be enjoined.

Section 6.5             Inadvertent
Termination.  If the Company’s status
as an S corporation is terminated inadvertently and the Company wishes to
obtain a ruling under Section 1362(f), or a successor provision, of the
Code, each Shareholder agrees to make any adjustments required pursuant to
Section 1362(f)(4), or a successor provision, of the Code and approved by the
Board.  A Shareholder’s obligation to
make such adjustments shall continue after the Shareholder has ceased to own
Shares in the Company and after this Agreement has terminated.

Section 6.6             Further
Assurances.  Each Shareholder agrees
to take all actions necessary to enable and allow the Company to elect, and
maintain an election, to be treated as an 

 12
 

S corporation under the Code, including, without limitation,
consenting to the election pursuant to Section 1362 of the Code.

Section 6.7             Transfer
Restrictions Relating to the Company’s Status as an S corporation.

(a)           Notwithstanding
anything to the contrary in this Agreement, upon and after the Effective Date,
no Shareholder may Transfer and no Person may acquire, the legal, economic or
beneficial ownership of, or any other interest in, any Share if such Transfer
or acquisition would cause the Company to become ineligible for S corporation
status or would cause the S corporation status of the Company to terminate, as
applicable, under the provisions of the Code as in effect at the time of the
purported Transfer (as a result of the status of the proposed transferee, the
number of shareholders of the Company, or otherwise).

(b)           Notwithstanding
anything to the contrary in this Agreement, upon and after the Effective Date,
no Transfer of Shares shall be permitted, and no purported Transfer shall be
effective, unless and until (i) the Shareholder desiring to Transfer Shares
shall have provided the Company, within a reasonable time prior to the proposed
Transfer, with a statement regarding the identity of the proposed transferee
sufficient to satisfy the Company that the transferee is a person that is
eligible to be a shareholder of an S corporation and the Transfer will not
result in an increase in the number of Shareholders of the Company such that it
destroys S corporation status, (ii) if the proposed transferee is a
trust, (A) the Company has received, within a reasonable time prior to the
proposed Transfer, copies of all relevant trust documents, (B) the Company has,
at its option and at the sole expense of the Shareholder, obtained a private
letter ruling from the Internal Revenue Service or an opinion of the Company’s
counsel or, to the extent the Company reasonably determines it to be necessary,
of the Shareholder’s counsel acceptable to the Company, providing, in form and
substance acceptable to the Company, that the Transfer to the trust will not
adversely affect the Company or any of its Shareholders under Subchapter S
of the Code and (C) any persons treated as shareholders of the Company (as
determined under Section 1361 of the Code) agree to be bound by the provisions
of this Agreement as if they were a Shareholder and enter into such agreements
and make such representations or warranties as the Company shall request in
connection therewith, (iii) the Company has provided written notice to the
Shareholder and the transferee that the requirements of clause (i) or (ii)
above have been satisfactorily met and (iv) the transferee has executed a
Joinder.

(c)           Notwithstanding
anything to the contrary in this Agreement, upon and after the Effective Date,
any purported Transfer or acquisition of Shares in violation of any of the
covenants and restrictions of this Article VI shall be null and void ab
initio. The purported transferee shall have no interest in any of the Shares
purported to be transferred, shall not be deemed a Shareholder, and shall not
be entitled to receive a new stock certificate for Shares or any dividends or
other distributions on or with respect to the Shares. Each Shareholder agrees
that any such Transfer or acquisition may and should be enjoined.

(d)           No
more than twenty (20) members of the Zell Family Group may hold Shares at any
given time.  For purposes of this Section 6.7(d),
all members of the Zell Family 

 13
 

Group that are treated as a single shareholder pursuant to
Section 1361(c)(1) of the Code shall be treated as a single member of the
Zell Family Group.

Section 6.8             Termination.  This Article VI shall terminate and no
longer apply if the Board determines that the Company shall not elect to
qualify, or continue to qualify, as an S corporation.

ARTICLE VII

INFORMATION, INSPECTION AND
VISITATION RIGHTS

Section 7.1             Information
Rights.  Upon and following the
Effective Date, any Shareholder owning ten percent (10%) or more of the Company’s
outstanding Common Stock (including the Warrant) shall have the right to
receive, and the Company shall provide, copies of the same financial reporting
information that the Company shares with senior management and its Board.  As soon as reasonably practicable, but in any
event within thirty (30) calendar days of the end of each month, the Company
shall provide unaudited  revenue and
expense information for each of the publishing and broadcasting &
entertainment groups and all significant business units within each of those
groups for the one-month prior and year-to-date periods then ended,  As soon as reasonably practicable, but in any
event within sixty (60) calendar days of the end of each quarter, the Company
shall provide unaudited consolidated operating data, including, consolidated
statements of income, consolidated summaries of cash flows and equity
income/loss, select financial information for each of the publishing and
broadcasting & entertainment groups and select capital expense and balance
sheet data.  As soon as reasonably
practicable, but in any event within one hundred eighty (180) calendar days
after the end of each fiscal year of the Company, the Company shall provide to
each such Shareholder (i) an income statement for such year and the prior
year, (ii) a balance sheet, as of the end of such year and the prior year,
(iii) a statement of stockholders’ equity, as of the end of such year and
the prior year, and (iv) a statement of cash flows for such year and the
prior year, such year-end financial reports to be in reasonable detail,
prepared in accordance with general accepted accounting principles, and audited
and certified by independent public accountants of nationally recognized
standing selected by the Company.  The
Company shall also provide as soon as practicable, an annual budget and
operating plan (the “Annual Budget”) for the next fiscal year, prepared
on a monthly basis, including balance sheets, income statements and statements
of cash flows for such months and such other information relating to the
financial condition, prospects, business or corporate affairs of the Company as
management and the Board shall deem appropriate; provided, however, that
the Company shall not be obligated under this Section 7.1 to
provide information (A) that it reasonably considers to be a trade secret
or similar confidential information (unless covered by an enforceable
confidentiality agreement, in form acceptable to the Company) or (B) would
adversely affect the attorney-client privilege between the Company and its
counsel.

Section 7.2             Inspection
and Visitation Rights.  Upon and
following the Effective Date, the Company shall permit each Shareholder owning
ten percent (10%) or more of the Company’s outstanding Common Stock (including
the Warrant) and such Shareholder’s accountants and counsel, at such
Shareholder’s expense, to visit and inspect the Company’s properties, to
examine its books of account and records and to discuss the Company’s affairs,
finances and accounts with its officers, all at such reasonable times as may be
requested by such Shareholder; 

 14
 

provided, however, that the Company shall not be obligated pursuant to
this Section 7.2 to provide access to any information (a) that
it reasonably considers to be a trade secret or similar confidential
information (unless covered by an enforceable confidentiality agreement, in form
acceptable to the Company) or (b) would adversely affect the attorney-client
privilege between the Company and its counsel.

Section 7.3             Termination.  The obligations set forth in this Article
VII shall terminate upon the earlier to occur and shall not be applicable
to Transfers occurring as part of (a) a Qualified Public Offering or (b) a
Sale of the Company.

ARTICLE VIII

REPRESENTATIONS

Section 8.1             Shareholder
Representations.  Each Shareholder
individually represents and warrants as follows:

(a)           No
Other or Conflicting Arrangements. 
Except for this Agreement, a voting agreement in connection with the
Merger, the Merger Agreement, the EGI Purchase Agreement and the ESOP Purchase
Agreement, it has not entered into any other voting trust, buy-sell, shareholder
or other agreement relating to the Shares, or any arrangement, understanding or
restriction with respect to the voting of the Shares, and no proxy, power of
attorney or other authorization has been granted relating to the Shares.  Other than the Warrant Agreement, such
Shareholder is not a party to any option, warrant, purchase right or other
contract, commitment or arrangement that could require a disposition of any
Shares or the Warrant by such Shareholder or a Transfer of Shares or the
Warrant to any Person that would cause the S corporation status of the
Company to terminate.  Other than
pursuant to this Agreement, the Warrant Agreement and the ESOP Pledge
Agreement, there are no restrictions on rights of disposition or pledge, charge
or other encumbrance or restriction pertaining to such Shareholder’s Shares or
the Warrant.

(b)           Power
and Authority.  The Shareholder has
all requisite power and authority to enter into this Agreement and to perform
its obligations hereunder.

(c)           Binding
Effect.  The Agreement has been duly
executed and delivered by such Shareholder and is a valid and binding agreement
of such Shareholder, enforceable against such Shareholder in accordance with
its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to creditors’ rights generally and by
equitable principles to which the remedies of specific performance and
injunctive and similar forms of relief are subject.

Section 8.2             Company
Representations.  The Company
represents and warrants as follows:

(a)           Power
and Authority.  The Company has all
requisite corporate power and authority to enter into this Agreement and to
perform its obligations hereunder.

(b)           Binding
Effect.  The Agreement has been duly
executed and delivered by the Company and is a valid and binding agreement of
the Company, enforceable against the 

 15
 

Company in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to creditors’ rights generally and by equitable principles to
which the remedies of specific performance and injunctive and similar forms of
relief are subject.

ARTICLE IX

TERMINATION

Section 9.1             Automatic
Termination.  This Agreement shall be
terminated if (i) at any time, there is only one Shareholder, (ii) a
Qualified Public Offering shall be consummated, (iii) the Company shall be
declared to be bankrupt under federal law, make an assignment for the benefit
of creditors or otherwise be found insolvent, (iv) the Company shall
dissolve or wind up its affairs or (v) the Merger Agreement is terminated
in accordance with its terms.

Section 9.2             Optional
Termination.  This Agreement may be
terminated at any time by the mutual written consent of the Parties hereto.

Section 9.3             Effect
of Termination.  From and after a
termination in accordance with Section 9.1 or 9.2, this
Agreement shall become null and void and of no further force and effect, except
for  Sections
10.2, 10.3, 10.8 and 10.13. 
The termination of this Agreement shall not affect any rights or
obligations that shall have arisen or accrued prior the date of termination.

ARTICLE X

MISCELLANEOUS

Section 10.1           No
Other Agreements; Notice.  No
Shareholder shall enter into any other voting, buy-sell, shareholder or other
agreement relating to the Shares that conflicts in any way with this Agreement
without the prior written consent of the other Shareholder or Shareholders.

Section 10.2           Confidentiality;
Announcements.  Except as
contemplated by this Agreement or as may otherwise be required by law, the
Parties shall keep the existence and terms of this Agreement confidential.  A copy of this Agreement shall be filed with
the Secretary of the Company and kept with the records of the Company.

Section 10.3           Specific
Performance.  The Parties hereby
acknowledge and agree that the failure of any Party to perform its agreements
and covenants hereunder shall cause irreparable injury to the other Parties for
which damages, even if available, shall not be an adequate remedy.  Accordingly, each Party hereby consents, in
addition to and not in lieu of monetary damages and other relief, to the
issuance of injunctive relief to compel performance of such Party’s obligations
and to the granting of the remedy of specific performance of its obligations
hereunder.

Section 10.4           Notices.  Any notice given pursuant to this Agreement
shall be in writing and delivered personally, sent by reputable, overnight
courier service (charges prepaid), sent by registered or certified mail,
postage prepaid, or by facsimile, and addressed to the last known address of
the Shareholder set forth on the books and records of the Company.  Such notice shall be deemed to have been
given and shall be effective: at the time delivered by hand, if personally
delivered; one business day after being sent, if sent by reputable, overnight
courier service; at the 

 16
 

time received, if sent by registered or certified mail; and at the time
when confirmation of successful transmission is received by the sending
facsimile machine, if sent by facsimile.

Section 10.5           Assignment;
Third Party Beneficiaries.  Except in
connection with a Transfer of Shares permitted by this Agreement, neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the Parties hereto (whether by operation of law or
otherwise) without the prior written consent of the other Parties.  Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of each of the Shareholders and
their respective permitted successors and assigns.  Notwithstanding anything contained in this
Agreement to the contrary, nothing in this Agreement, express or implied, is
intended or shall be construed to confer upon or give to any Person, other than
the Parties to this Agreement and their respective successors and assigns, or
other Persons who become bound by the terms of this Agreement, any rights or
remedies under or by reason of this Agreement.

Section 10.6           Amendment;
Waiver.  This Agreement may be
amended, modified, waived or altered only in a writing signed by the Parties
hereto.  The failure of a Party to insist
upon the performance of any provision hereof shall not constitute a waiver of,
or estoppel against, assertion of the right to require such performance, nor
shall a waiver or estoppel in one case or instance imply a waiver or estoppel
with respect to any other case or instance, whether of similar nature or
otherwise.

Section 10.7           Descriptive
Headings.  The descriptive headings
of this Agreement are inserted for convenience only and shall not constitute a
part of this Agreement.

Section 10.8           Expenses.  Each Party shall bear its own costs and
expenses in connection with the negotiation, execution and performance of this
Agreement.

Section 10.9           Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of
applicable law or public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any Party.  Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the Parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable
manner to the end that transactions contemplated hereby are fulfilled to the
extent possible.

Section 10.10         Further
Assurances.  The Parties agree to
cooperate fully in the execution, acknowledgment and delivery of all
instruments, agreements and other papers and to take such other actions as may
be necessary to further carry out and fully accomplish the intent and purposes
of this Agreement, including, without limitation, any amendment of the
Certificate of Incorporation or By-laws of the Company.

Section 10.11         Construction.  The Parties have participated jointly in the
negotiation and drafting of this Agreement. 
If any ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties and no
presumption or burden of proof shall arise favoring or disfavoring any Party by
virtue of the authorship of any of the 

 17
 

provisions of this Agreement. 
Wherever in this Agreement a singular word appears, it shall also
include the plural wherever required by the context, and vice versa.  Wherever in this Agreement a masculine,
feminine or neutral pronoun appears, it shall also include each other gender
wherever required by the context.

Section 10.12         Entire
Agreement.  This instrument contains
the entire understanding and agreement among the Parties concerning the subject
matter of this Agreement, and this Agreement supersedes all prior and
contemporaneous understandings, agreements, covenants, negotiations and
representations concerning the subject matter of this Agreement, whether
written or oral.

Section 10.13         Governing
Law.  This Agreement and the rights
of the Parties hereunder shall be governed by and interpreted in accordance
with the laws of the State of Delaware, without giving effect to any laws or
principles of conflicts of laws that would cause the laws of any other jurisdiction
to apply.

Section 10.14         Counterparts;
Facsimile.  This Agreement and any
amendments hereto may be executed in one or more counterparts, each of which
shall be deemed an original and all such counterparts shall constitute one and
the same instrument.  Any executed
counterpart delivered by facsimile or other means of electronic transmission
shall be deemed an original for all purposes.

Section 10.15         Effectiveness
as to the Company.  This Agreement shall not become effective as to
the Company unless and until the Effective Date shall have occurred.

[SIGNATURE PAGE FOLLOWS]

 

 18

 

IN WITNESS
WHEREOF, the Parties hereto have executed this Agreement on the date first
written above.

 

	
  EGI-TRB, L.L.C.

  	
   

  	
  GREATBANC TRUST COMPANY, not in its

  individual or corporate capacity, but solely as

  ESOP Fiduciary of the TRIBUNE EMPLOYEE

  STOCK OWNERSHIP TRUST, which forms a

  part of the TRIBUNE EMPLOYEE STOCK

  OWNERSHIP PLAN 

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip G. Tinkler

  	
   

  
	
  Name:

  	
  Philip G. Tinkler 

  	
   

  
	
  Title:

  	
  Vice 
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Marilyn H. Marchetti

  
	
   

  	
   

  	
  Name:

  	
  Marilyn H. Marchetti 

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President   

  
	
   

  	
   

  	
   

  
	
  TRIBUNE COMPANY  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Dennis J. FitzSimons 

  	
   

  	
   

  
	
  Name:

  	
  Dennis J. FitzSimons 

  	
   

  	
   

  
	
  Title:

  	
  Chairman, President and Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

Signature
Page to Investor Rights Agreement

INVESTOR
RIGHTS AGREEMENT

Joinder

The undersigned is
executing and delivering this Joinder pursuant to that certain Investor Rights
Agreement, dated as of April 1, 2007 (as the same may be hereafter
amended, the “Investor Rights Agreement”), by and among Tribune Company,
a Delaware corporation (the “Company”), EGI-TRB, L.L.C., a Delaware
limited liability company,  and
GreatBanc Trust Company, not in its individual or corporate capacity, but
solely as trustee of the Tribune Employee Stock Ownership Trust, which forms a
part of the Tribune Employee Stock Ownership Plan.

By executing and
delivering this Joinder to the Company, the undersigned hereby agrees to become
a party to, to be bound by, and to comply with the provisions of the Investor
Rights Agreement in the same manner as if the undersigned were an original
signatory to the Investor Rights Agreement.

Accordingly, the
undersigned has executed and delivered this Joinder this      
day of                 ,
20   .

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
  Name:

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