Document:

Exhibit 10.1

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”) is by and between THE BON-TON STORES, INC., a Pennsylvania corporation
(the “Company”), and STEPHEN BYERS (the “Employee”) as of the 1st day of May, 2011.

W I T N E S S E T H:

WHEREAS, Employee is currently party to an Employment Agreement dated February 1, 2009, the
term of which expires April 30, 2011 (together, the “Prior Employment Agreement”) and for which
notice of non-renewal was provided by the Company on January 21, 2011; and

WHEREAS, the Company and Employee have agreed upon terms upon which Employee will continue his
employment with the Company.

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein and
intending to be legally bound hereby, the Company and Employee agree as follows:

1. Position and Responsibilities.

(a) The Company hereby employs Employee and Employee hereby accepts continued employment by
the Company as the Company’s Executive Vice President, Stores, Visual & Loss Prevention. Employee
will perform duties as determined by the President and Chief Executive Officer of the Company.
Employee shall report directly to the Chief Operating Officer or such other senior executive
officer of the Company designated by the President and Chief Executive Officer or the person
performing the duties of the President and Chief Executive Officer. In addition, Employee shall be
a member of the Management Committee and the Operating Committee.

(b) Throughout the term of this Agreement, Employee shall devote his entire working time,
energy, attention, skill and best efforts to the affairs of the Company and to the performance of
his duties hereunder in a manner that will faithfully and diligently further the business and
interests of the Company. Approval of board memberships and participation in lectures and teaching
activities will be at the discretion of the President and Chief Executive Officer; however, such
approval will not be unreasonably withheld, provided that such activities do not significantly
interfere with Employee’s duties under this Agreement. Employee shall comply with the Company’s
Code of Ethical Standards and Business Practices.

2. Term and Renewal. This Agreement shall become effective on May 1, 2011, provided that
this Agreement has been signed by Employee and the Company. The initial term shall continue through
April 30, 2012, unless sooner terminated in accordance with
paragraph 7 below (the “Initial Term”). Unless terminated by either party not later than sixty (60)
days preceding the termination date of the Agreement, this Agreement shall renew for successive
one-year terms beginning May 1st of each such year.

 

 

 

3. Place of Performance. Employee shall be based at the office of the Company in the
Milwaukee, Wisconsin metropolitan area, except for travel required for Company business.

4. Compensation.

(a) Salary. Employee shall receive a base salary (the “Base Salary”) as follows: (i)
effective May 1, 2011 through April 28, 2012, at the annual rate of $510,000; (ii) effective April
29, 2012, at the annual rate of $470,000. This Base Salary, less taxes and normal deductions, shall
be paid to Employee in substantially equal installments in accordance with the Company’s regular
executive payroll practices in effect from time to time. The Base Salary and Employee’s performance
may be reviewed from time to time during the term of this Agreement by the Company to ascertain
whether, in the Company’s sole discretion, such Base Salary should be increased, and once
increased, such Base Salary shall not be decreased.

(b) Annual Bonus.

(i) Employee will participate in The Bon-Ton Stores, Inc. Cash Bonus Plan (the “Cash Bonus
Plan”) in accordance with its terms and conditions as it may be amended in accordance with
its provisions, or such other annual bonus plan as may be established by the Company.
During the Term, for each fiscal years of the Company beginning with fiscal year 2012,
Employee shall be eligible to earn a target bonus of 50% of Employee’s Base Salary in
effect on the last day of the relevant fiscal year; a threshold bonus and a maximum bonus
shall be as determined from time to time by the Company consistent with other similar
senior executives under the Cash Bonus Plan. For fiscal year 2011, Employee shall be
eligible to earn a target bonus prorated between the 100% target established by the Prior
Agreement for the first three months of the fiscal year and a 50% target for the remaining
nine months of the fiscal year (such prorated target equal to 64.46% of the new Base
Salary). The Human Resources and the Compensation Committee (“HRCC”) of the Company’s Board
of Directors shall retain discretion with respect to this bonus as is provided under the
terms of the Cash Bonus Plan.

(ii) Nothing herein is a guarantee that any Annual Bonus will be paid.

(iii) To the extent reasonably practicable, the Annual Bonus shall be computed within
90 days following the close of the Company’s fiscal year and paid within 30 days of its
computation. Employee must be employed on the last day of the Company’s fiscal year to
receive an Annual Bonus with respect to that fiscal year.

 

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5. Benefits. During the term of his employment, Employee and his eligible dependents shall
be eligible to participate in the Company’s group medical, dental and vision plans in accordance
with the terms of such plans and, subject to the restrictions and limitations contained in the
insurance agreement or agreements. Employee shall be eligible to participate in the Company’s
retirement contribution plan, deferred compensation plan, discount program, vacation plan,
long-term disability plan and employee benefit programs generally made available to other employees
of the Company, subject to their respective generally applicable eligibility requirements, terms,
conditions and restrictions; provided, however, that severance payments under this Agreement shall
be in lieu of any severance benefits otherwise provided by the Company. However, nothing in this
Agreement shall preclude the Company from amending or terminating any such insurance, benefit,
program or plan so long as the amendment or termination is applicable to the Company’s executives
participating in such insurance, benefit, program or plan generally. Moreover, the Company’s
obligations under this provision shall not apply to any insurance, benefit, program or plan made
available on an individual basis to one or more select executive employees by contract if such
insurance, benefit, program or plan is not made available to all executive employees. With respect
to Employee’s participation in the Company’s vacation plan, Employee shall be eligible for four (4)
weeks vacation per calendar year, or greater if according to Company policy, which vacation
entitlement shall be pro-rated in any calendar year in which Employee does not work the entire
calendar year.

6. Business Expenses. The Company shall pay or reimburse Employee for reasonable
entertainment and other expenses incurred by Employee in connection with the performance of
Employee’s duties under this Agreement upon receipt of vouchers therefor and in accordance with the
Company’s regular reimbursement procedures and practices in effect from time to time.

7. Termination of Employment. Notwithstanding any other provision of this Agreement,
Employee’s employment and all of the Company’s obligations or liabilities under this Agreement may
be terminated immediately, excluding any obligations the Company may have under paragraph 8 below,
in any of the following circumstances:

(a) Termination by the Company. Notwithstanding any other provisions of this
Agreement, the Company may terminate Employee’s employment and all of the Company’s obligations and
liabilities under this Agreement immediately, which termination shall not affect any obligations
the Company may have under paragraph 8 below, in any of the following circumstances:

(i)Disability or Incapacity. In the event of Employee’s physical or mental
inability to perform his essential duties hereunder, with or without reasonable
accommodation, for a period of 13 consecutive weeks or for a cumulative period of 26 weeks
during any rolling 24-month period during the term of this Agreement.

(ii) Death of Employee. In the event of Employee’s death.

 

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(iii) Discharge for Cause. The Company may discharge Employee at any time for
“Cause,” which shall be limited to: Employee’s material and serious breach or neglect of
Employee’s responsibilities; willful violation or disregard of standards of conduct
established by law; willful violation or disregard of standards of conduct established by
Company policy as may from time to time be communicated to Employee; fraud, willful
misconduct, misappropriation of funds or other dishonesty; conviction of a crime of moral
turpitude; any misrepresentation made in this Agreement; or any material breach by Employee
of any provision of this Agreement (including, without limitation, acceptance of employment
with another company or performing work or providing advice to another company, as an
employee, consultant or in any other similar capacity while still an employee of the
Company).

(iv) Discharge without Cause. Notwithstanding any other provision of this
Agreement, Employee’s employment and any and all of the Company’s obligations under this
Agreement (excluding any obligations the Company may have under paragraph 8 below) may be
terminated by the Company at any time without Cause.

(b) Resignation by Employee. Employee may resign in the following circumstances:

(i) Resignation for Good Reason. Employee may resign for “Good Reason,” defined
below, upon 30 days’ written notice by Employee to the Company except as set forth in
paragraph 7(c) below. The Company may waive Employee’s obligation to work during this
30-day notice period and terminate his employment immediately, but if the Company takes
this action, Employee shall receive the salary that otherwise would be due through the end
of the notice period. For purposes of this Agreement, “Good Reason” shall mean any of the
following violations of this Agreement by the Company: any reduction in Employee’s Base
Salary; except as provided in this Agreement, any reduction in Employee’s potential bonus
target percentage amounts; any required relocation of Employee from Milwaukee, Wisconsin or
Chicago, Illinois metropolitan areas; and any substantial breach by the Company of any
material provision of this Agreement (unrelated to a change of position/title, duties,
responsibilities and/or supervisor). Notwithstanding the foregoing, the acts or omissions
described above shall not constitute “Good Reason” unless Employee: (i) provides the
Company with written notice, within ninety (90) days of learning of such acts or omissions
that he asserts constitute “Good Reason,” detailing the matters he asserts to be “Good
Reason” and notifying the Company of his intention to resign for Good Reason if the Company
does not cure them within thirty (30) days of receiving the written notice; and (ii)
actually resigns thereafter (and within sixty (60) days of the end of the cure period)
assuming the Company has not cured them.

 

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(ii) Resignation Without Good Reason. Notwithstanding any other provision of this
Agreement, Employee’s employment and any and all of the Company’s obligations under this
Agreement (excluding any obligations the Company may have under Paragraph 8 below) may be
terminated by Employee without Good Reason.

(c) Change of Control. In the event of a Change of Control of the Company, Employee
shall be prohibited from resigning for Good Reason for a period of six (6) months following the
Change of Control. If, in the event of a Change of Control, Employee is required to relocate from
the Milwaukee, Wisconsin, or Chicago, Illinois metropolitan areas, Employee may resign for Good
Reason at any time. In all other respects, the provisions of paragraph 7(b)(i) shall be
applicable. For purposes of this Agreement, a Change of Control shall be deemed to occur if:

(i) any person who is not an affiliate of the Company on the date hereof becomes a
beneficial owner of a majority of the outstanding voting power of the Company’s capital
stock;

(ii) the shareholders of the Company approve and there is consummated any plan of
liquidation providing for the distribution of all or substantially all of the Company’s
assets;

(iii) there is consummated a merger, consolidation or other form of business combination
involving the Company, or, in one transaction or a series of related transactions, a sale
of all or substantially all of the assets of the Company, unless, in any such case:

(A) the business of the Company is continued following such transaction by
a resulting entity (which may be, but need not be, the Company) (the
“Surviving Company”); and

(B) persons who were the beneficial owners of a majority of the
outstanding voting power of the Company immediately prior to the
completion of such transaction beneficially own, by reason of such prior
beneficial ownership, a majority of the outstanding voting power of the
Surviving Company (or a majority of the outstanding voting power of the
direct or indirect parent of the Surviving Company, as the case may be)
immediately following the completion of such transaction; or

(iv) any person beneficially owns shares of the Company’s capital stock possessing a
greater voting power than held in the aggregate by M. Thomas Grumbacher, any member of his
family, any trust for the primary benefit of M. Thomas Grumbacher or any member of his
family, and any charitable foundation of which M. Thomas Grumbacher is a founder or
co-founder with his wife (collectively, the “Grumbacher Affiliates”), or if the Grumbacher
Affiliates control less than twenty percent (20%) of the outstanding voting power of the
Company’s capital stock.

 

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For purposes of this definition, the terms “person,” “beneficial owner,” “beneficial ownership,”
“affiliate” and “control” shall have the meanings ascribed to such terms under Sections 13(d) and
3(a)(9) and Rule 13d-3 under the Securities Exchange Act of 1934 as amended, and Rule 501 under the
Securities Act of 1933 as amended, as applicable.

8. Payments Upon Termination.

(a) Discharge Without Cause or Resignation for Good Reason during the Term. If, other
than during the two (2) year period following a Change of Control during the Term of this
Agreement, Employee is discharged without Cause or resigns for Good Reason during the term of this
Agreement, Employee shall:

(i) receive severance pay at his then current rate of Base Salary at the time of
termination, less taxes and normal deductions, for one and one-half (1 1/2) years, payable
(in either case) in equal installments in accordance with the Company’s regular payroll
practices or, at the Company’s discretion, in a lump sum; and

(ii) be paid a stipend equal to an amount that represents the amount Employee would have to
pay as a monthly COBRA premium for the insurance coverage for the group medical and dental
plans as would be applicable to Employee at the date of termination of Employment for one
and one-half (1 1/2) years, which stipend shall be paid in the same time and manner as the
severance payments referred to above. Such severance payment and stipend shall be paid not
earlier than is permitted under Section 409A of the Internal Revenue Code of 1986 as
amended (“Code”).

(b) Discharge Without Cause or Resignation for Good Reason after the Term. If, at any
time on or prior to February 1, 2014, (i) as of the end of the Term or as of the end of the Term as
extended by one or more automatic renewals pursuant to Paragraph 2 of this Agreement, the Company
exercises its right under Paragraph 2 of this Agreement not to renew the Term for an additional
one-year term and (ii) the Company and the Employee do not enter into an employment agreement
replacing this Agreement and (iii) at any time thereafter Employee is discharged without Cause or
resigns for Good Reason, Employee shall receive severance pay equal to one (1) time his then Base
Salary, payable (in either case) in equal installments in accordance with the Company’s regular
payroll practices or, at the Company’s discretion, in a lump sum.

(c) Payment. Employee’s right to any payments or benefits provided under paragraph
8(a) and (b) shall be contingent upon (i) execution by Employee at or about the time of termination
of his employment, within the time period designated by the Company, of a termination agreement,
that a general release of claims (including, without limitation, contractual, common law and
statutory claims) against the Company and its officers, directors, employees, agents and other
persons and entities designated by the Company, in a form acceptable to the Company and, in the
sole discretion of the Company, non-disparagement and confidentiality provisions; 

 

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and (ii)
compliance by Employee with all of the terms of this Agreement, including without limitation paragraphs 9 and 10 of this Agreement. In the event it is determined that any portion of the
severance payments or stipend referred to in paragraph 8(a) represents a payment of nonqualified
deferred compensation that is not exempt from the requirements of Code Section 409A, then no
payments shall be made during the 90 day period measured from Employee’s separation from service
and, provided Employee executes and does not thereafter revoke the general release of claims
mentioned above, all payments that would, but for this sentence, have been paid during such 90 day
period, shall be paid in a lump sum on the first business day following the end of such 90 day
period, and the remaining payments shall be made as described above. These severance payment shall
be in lieu of any bonus or other Company paid benefits to which Employee is or may be entitled
after Employee’s termination of employment with the Company for any reason whatsoever, whether by
Employee of the Company, including any severance plan sponsored by the Company, or any other
agreement, policy or practice. The Company’s obligations under paragraph 8(a) or (b) shall, as
applicable, cease in the event that Employee breaches any of Employee’s obligations under this
Agreement; and/or be offset by any disability insurance benefits and/or workers compensation
benefits received by Employee during the period covered by the severance payments.

(d) Death or Disability/Incapacity.

(i) Upon Employee’s death, during the term of this Agreement, Employee’s estate’s sole
entitlement will be to his then current Base Salary for any days worked prior to his death,
amounts payable on account of Employee’s death under any insurance or benefit plans or
policies maintained by the Company, and any vested benefits to which Employee is entitled
under the Company’s employee benefit or other plans in accordance with, to the extent
provided in, and subject to the restrictions and payout schedules contained in those plans.

(ii) On termination for disability or incapacity, Employee’s sole entitlement will be to
his then current Base Salary for any days worked prior to the date of termination, amounts
payable on account of disability or incapacity under any insurance or benefit plans or
policies maintained and any vested benefits to which Employee is entitled under the
Company’s stock option and employee benefit plans in accordance with, to the extent
provided in, and subject to the restrictions and payout schedules contained in those plans.

(e) Discharge for Cause or Resignation without Good Reason. If Employee is discharged
for Cause or resigns without Good Reason, Employee’s sole entitlement will be the receipt of his
then current Base Salary for any days worked through the date of termination and any vested
benefits to which Employee is entitled under the Company’s stock option and employee benefit plans
in accordance with, to the extent provided in, and subject to the restrictions and payout schedules
contained in those plans.

(f) Change of Control. In lieu of the foregoing, the provisions of paragraph 11 below
shall be applicable if Employee is discharged with Cause or resigns for Good
Reason within the two (2) year period following a Change of Control, provided the Change of
Control occurs during the term of this Agreement.

 

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9. Company Property. All advertising, sales, manufacturers’ and other materials or articles
or information, including, without limitation, data processing reports, customer sales analyses,
invoices, price lists or information or any other materials or data of any kind furnished to
Employee by the Company or developed by Employee on behalf of the Company or at the Company’s
direction or for the Company’s use or otherwise in connection with Employee’s employment with the
Company, are and shall remain the sole and confidential property of the Company. Such Company
property shall be returned to the Company (retaining, in the case of such information, no
electronic or hard copies thereof) upon the earlier of the Company’s request to return such
property or the cessation of Employee’s employment.

10. Non-Competition and Confidentiality. To the maximum extent permissible by law:

(a) During his employment with the Company and for a period of one (1) year after the
termination of his employment with the Company for any reason whatsoever, whether by Employee or by
the Company and whether during the term of this Agreement or subsequent to the expiration of this
Agreement, Employee shall not, directly or indirectly induce or intentionally influence any
customer, employee, consultant, independent contractor or supplier of the Company to change his,
her or its business relationship with or terminate employment with the Company.

(b) During his employment with the Company and for a period of nine (9) months following the
termination of his employment with the Company for any reason whatsoever, whether by Employee or by
the Company and whether during the term of this Agreement or subsequent to the expiration or
termination of this Agreement, Employee shall not engage in (as a principal, partner, director,
officer, agent, employee, consultant, owner, independent contractor or otherwise) or be financially
interested in the retail department store business of any Competitor of the Company. For purposes
of this Agreement, a Competitor means each of Macy’s, Inc.; Dillard’s Inc.; Kohl’s Corporation;
Belk, Inc. and J.C. Penney, Inc. or the affiliates and successors of each of them.

(c) During his employment with the Company and at all times thereafter, and except as required
by law, Employee shall not use for his personal benefit, or disclose, communicate or divulge to, or
use for the direct or indirect benefit of, any person, firm, association or company other than the
Company, any confidential information of the Company that Employee acquires in the course of his
employment, which is not otherwise lawfully known by and readily available to the general public.
This confidential information includes, but is not limited to: any material referred to in
paragraph 9 or any non-public information regarding the business, marketing, legal or accounting
methods, policies, plans, procedures, strategies or techniques; research or development projects or
results; trade secrets or other knowledge or processes of or developed by the Company; names and
addresses of employees, suppliers or customers. Employee confirms that such information is
confidential and constitutes the exclusive
property of the Company, and agrees that, immediately upon his termination, whether by
Employee or by the Company and whether during the term of this Agreement or subsequent to the
expiration of this Agreement, Employee shall deliver to the Company all correspondence, documents,
books, records, lists, computer programs and other writings relating to the Company’s business; and
Employee shall retain no copies, regardless of where or by whom said writings were kept or
prepared.

 

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(d) Both during his employment with the Company and following his termination for any reason,
whether by Employee or by the Company and whether during the term of this Agreement or following
the expiration of the Agreement, Employee shall, upon reasonable notice, furnish to the Company
such information pertaining to his employment with the Company as may be in his possession. The
Company shall reimburse Employee for all reasonable expenses incurred by him in fulfilling his
obligation under this subparagraph (d).

(e) The provisions of paragraphs 9 and 10 shall survive the cessation of Employee’s employment
for any reason, as well as the expiration of this Agreement at the end of its term or at any time
prior thereto.

(f) Employee acknowledges that the restrictions contained in this paragraph 10, in view of the
nature of the business in which the Company is engaged and the Employee’s position with the
Company, are reasonable and necessary to protect the legitimate interests of the Company, and that
any violation of those restrictions would result in irreparable injury to the Company. Employee
therefore agrees that, in the event of his violation of any of those restrictions, the Company
shall be entitled to obtain from any court of competent jurisdiction preliminary and permanent
injunctive relief against Employee, in addition to damages from Employee and an equitable
accounting of all commissions, earnings, profits and other benefits arising from such violation,
which rights shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled.

(g) Employee agrees that if any or any portion of the foregoing covenants, or the application
thereof, is construed to be invalid or unenforceable, the remainder of such covenant or covenants
or the application thereof shall not be affected and the remaining covenant or covenants will then
be given full force and effect without regard to the invalid or unenforceable portions. If any
covenant is held to be unenforceable because of the area covered, the duration thereof, or the
scope thereof, Employee agrees that the Court making such determination shall have the power to
reduce the area and/or the duration, and/or limit the scope thereof, and the covenant shall then be
enforceable in its reduced form. If Employee violates any of the restrictions contained in
subparagraphs (a) or (b), the period of such violation (from the commencement of any such violation
until such time as such violation shall be cured by Employee to the satisfaction of the Company)
shall not count toward or be included in the restrictive period contained in subparagraphs (a) and
(b).

 

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(h) Employee represents and warrants that the knowledge, skill and abilities he possesses at
the time of his execution of this Agreement are sufficient to permit him to earn a living by
working for a non-competitor of the Company for the restrictive periods set forth in subparagraphs
(a) and (b) above.

(i) For purposes of paragraphs 9 and 10 of this Agreement, the term “Company” shall include
not only The Bon-Ton Stores, Inc., but also any of its successors, assigns, subsidiaries or
affiliates.

11. Change of Control. Upon a Change of Control, as defined in paragraph 7(c), occurring
during the Term of this Agreement:

(a) Options and Restricted Shares. Employee’s options and restricted stock shall vest
in the event that Employee:

(i) is discharged without Cause following and within two (2) years of the Change of
Control; or

(ii) resigns from the Company with Good Reason after the expiration of six (6)
months following the Change of Control and within two (2) years following the
Change of Control (unrelated to a discharge with Cause).

Exception: Employee’s options and restricted shares shall vest immediately upon a Change
of Control in the event that it is contemplated that the Company’s common stock will not remain in
existence or be converted to equity in the surviving company upon the Change of Control.

(b) Change of Control Payment. Employee shall receive a “Change of Control Payment”
(defined below), in the form of a single lump sum payment, less taxes and normal deductions, as
soon as practicable following his discharge or resignation and not earlier than is permitted under
Section 409A of the Code in the event that Employee:

(i) is discharged without Cause following and within two (2) years of the Change of
Control; or

(ii) resigns from the Company with Good Reason after the expiration of six (6)
months following the Change of Control and within two (2) years following the
Change of Control (unrelated to a discharge with Cause).

The Change of Control Payment shall be equal to the lesser of:

(x) One and one-half (1 1/2) times the sum of the following: (A) Employee’s average
Base Salary paid over the most recently completed three (3) W-2 tax years prior to
Employee’s termination; plus (B) the average Cash Bonus paid to Employee
over the Employee’s most recently completed three (3) W-2 tax years prior to
Employee’s termination; or

(y) The “280G Permitted Payment” as described in Paragraph 11(e) below.

 

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(c) Medical and Dental Insurance. In the event that Employee is entitled to a Change
of Control Payment under paragraph 11(b) above, Employee shall be paid a stipend equal to an amount
that represents the amount Employee would have to pay as a monthly COBRA premium for the insurance
coverage for the group medical and dental plans as would be applicable to Employee at the date of
termination of employment for one and one-half (1 1/2) years, which stipend shall be paid in the same
time and manner as the payments referred to above. Such severance payment and stipend shall be paid
not earlier than is permitted under Section 409A of the Code.

(d) General Release Requirement. Employee’s right to any vesting of equity or
receipt of payments under paragraphs 11(a), (b) or (c) above shall be contingent upon: (i)
execution by Employee of a termination agreement which includes a general release of claims and
other provisions in conformance with paragraph 8(a) above; and (ii) compliance by Employee with all
of the terms of this Agreement, including without limitation paragraphs 9 and 10. These payments
and benefits shall be in lieu of any bonus or other Company paid benefits to which Employee is or
may be entitled after Employee’s termination of employment with the Company for any reason
whatsoever, whether by Employee or the Company, including any severance payments to which Employee
is or may be entitled by reason of any severance plan sponsored by the Company, or any other
agreement, policy or practice.

(e) Code Section 280(G). Notwithstanding any other provision of this Agreement, if
the aggregate present value of the “parachute payments” to the Employee, determined under Section
280G(b) of the Code, would be at least three (3) times the “base amount” determined under Code
Section 280G, then the “280G Permitted Payment” shall be the maximum amount that may be paid as a
Change of Control Payment under this Paragraph 12 such that the aggregate present value of such
“parachute payments” to the Employee is less than three (3) times his “base amount.” In addition,
in the event the aggregate present value of the parachute payments to the Employee would be at
least three (3) times his base amount even after a reduction of the Change of Control Payment to $0
(all as determined for purposes of Code Section 280G), compensation otherwise payable under this
Agreement and any other amount payable hereunder or any other severance plan, program, policy or
obligation of the Company or any other affiliate thereof shall be reduced so that the aggregate
present value of such parachute payments to the Employee, as determined under Code Section 280G(b)
is less than three (3) times his base amount. Any decisions regarding the requirement or
implementation of such reductions shall be made by such tax counsel as may be selected by the
Company and acceptable to the Employee.

 

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12. Tax Matters.

(a) Employee agrees that he is responsible for paying any and all federal, state and local
income taxes assessed with respect to any money, benefits or other consideration received from the
Company and that the Company is entitled to withhold any tax payments from amounts otherwise due
Employee to the extent required by applicable statutes, rulings or regulations.

(b) Notwithstanding anything to the contrary herein, no payment otherwise required to be made
hereunder that the Company determines constitutes a payment of nonqualified deferred compensation
for purposes of Section 409A of the Code shall be paid to Employee at a time or in a manner that
will be treated as a violation of the distribution rules of Code Section 409A(a)(2) and no
alternative form of payment of such amount(s) shall be permitted to be made hereunder if such
alternative benefit form would violate any of the requirements of Code Section 409A(a)(3) or (4)
relating to acceleration of benefits and changes in time and form of distribution (taking into
account any regulations or other guidance issued by Treasury or the Internal Revenue Service with
regard to these Code provisions as may be in effect from time to time). The intent of this
provision is to ensure that no additional tax liabilities are imposed on any payments or benefits
provided hereunder pursuant to Code Section 409A, and may require, for example, a delay in
commencement of payments until six months after Employee’s termination of employment with the
Company. In the event any payment is delayed by reason of this paragraph 12, such payment shall,
when made, be increased by an amount representing “interest” from the date payment would otherwise
have been made, through the date payment is actually made, calculated using the Company’s cost of
borrowing as the interest rate, as determined by the Company at its discretion.

13. Prior Agreements.

(a) Employee represents that there are no restrictions, agreements or understandings
whatsoever to which Employee is a party that could impact upon his employment under this Agreement
or that would prevent or make unlawful his execution of this Agreement or his employment hereunder.

(b) Employee agrees that he will not use or disclose any confidential or proprietary
information of any of his prior employers during the course of his employment under this Agreement.

14. Indemnification. Employee shall be entitled to indemnification against claims by
third parties arising out of his acts or omissions within the scope of his employment during the
course of his employment under this Agreement.

15. Entire Understanding. This Agreement contains the entire understanding between the
Company and Employee with respect to the subject matter hereof and supersedes all prior and
contemporary agreements and understandings, inducements or conditions, express or implied, written
or oral, between the Company and Employee except as herein contained. The express terms hereof
control and supersede any course of performance and/or usage of the trade inconsistent with any of
the terms hereof.

 

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16. Modifications. This Agreement may not be modified orally but only by written agreement
signed by Employee and the Company’s President and Chief Executive Officer or such other person as
the Board may designate specifically for this purpose.

17. Provisions Separable. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.

18. Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude the
Company from consolidating or merging into or with, or transferring all or substantially all of its
assets to, another entity that assumes this Agreement and all obligations and undertakings of the
Company hereunder. Under such a consolidation, merger or transfer of assets and assumption, the
term “the Company” as used herein, shall mean such other entity and this Agreement shall continue
in full force and effect.

19. Notices. All notices, requests, demands and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly given, made and
received when delivered (personally, by courier service such as UPS or by messenger) or when
deposited in the United States mails, registered or certified mail, postage pre-paid, return
receipt requested, addressed as set forth below:

(a) If to the Company:

The Bon-Ton Stores, Inc.

331 W. Wisconsin Avenue

Milwaukee, WI 53203

Attention: President and Chief Executive Officer

with a copy to:

The Bon-Ton Stores, Inc.

2801 East Market Street

York, PA 17402

Attention: General Counsel

(b) If to Employee:

Stephen Byers

629 Fox Glen Drive

St. Charles, IL 60174

 

13

 

In addition, notice by mail shall be by air mail or courier if posted outside of the continental
United States. Any party may alter the address to which communications or
copies are to be sent by giving notice of such change of address in conformity with the provisions
of this paragraph for the giving of notice.

20. No Attachment. Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be
null, void and of no effect.

21. Binding Agreement. This Agreement shall be binding upon, and shall inure to the benefit
of the Company and its successors, representatives, and assigns and shall be binding upon Employee,
his heirs, executors and legal representatives.

22. No Assignment by Employee. Employee acknowledges that the services to be rendered by
him are unique and personal. Accordingly, Employee may not assign or delegate any of his rights or
obligations hereunder, except that he may assign certain rights hereunder if agreed to in writing
by the President and Chief Executive Officer.

23. Assignment by the Company. Employee consents to the assignment of this Agreement to
any purchaser of the Company or a substantial portion of its assets.

24. Indulgences. Neither the failure nor any delay on the part of either party to exercise
any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

25. Paragraph Headings. The paragraph headings in this Agreement are for convenience only;
they form no part of this Agreement and shall not affect its interpretation.

26. Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement (including, without limitation, provisions concerning
limitations of actions), shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, notwithstanding any conflict-of-laws doctrines of such state or any
other jurisdiction to the contrary, and without the aid of any canon, custom or rule of law
requiring construction against the draftsman.

27. President and Chief Executive Officer. In the absence of the President and Chief
Executive Officer, the decisions of the President and Chief Executive Officer may be made by such
other person as designated by the Company’s Board of Directors.

28. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original against any party whose
signature appears thereon, and all of which shall together constitute one and the same instrument.
This Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties hereto.

 

14

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have duly executed and
delivered this Agreement as of the date first above written.

	 	 	 	 	 
	THE BON-TON STORES, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ BYRON L. BERGREN
 

Byron L. Bergren
	 	 
	 

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	EMPLOYEE:	 	 
	 
	 	 	 	 
	 

	 	/s/ STEPHEN BYERS
 

Stephen Byers
	 	 

 

15exv10w1w9

EXHIBIT
10.1(9)

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND FIRST

AMENDMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

     THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND FIRST AMENDMENT TO AMENDED
AND RESTATED SECURITY AGREEMENT (“Amendment”), dated as of May 2, 2011 (the “Effective
Date”), is among A. H. BELO CORPORATION, THE PROVIDENCE JOURNAL COMPANY, PRESS-ENTERPRISE
COMPANY, DENTON PUBLISHING COMPANY, DMI ACQUISITION SUB, INC., THE DALLAS MORNING NEWS, INC., and
DFW PRINTING COMPANY, INC. (collectively, the “Borrowers”), the other Loan Parties party
hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent (the
“Administrative Agent”).

RECITALS:

     A. The Borrowers, the other Loan Parties, the Administrative Agent and the Lenders have
entered into that certain Amended and Restated Credit Agreement dated as of January 30, 2009, as
amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of August
18, 2009, the Second Amendment to Amended and Restated Credit Agreement dated as of December 3,
2009, the Third Amendment to Amended and Restated Credit Agreement dated as of August 18, 2010, and
the Fourth Amendment to Amended and Restated Credit Agreement dated as of March 10, 2011
(collectively, the “Credit Agreement”), pursuant to which the Lenders have provided certain
credit facilities to the Borrowers.

     B. To secure the Obligations, the Borrower, the other Loan Parties and the Administrative
Agent entered into that certain Amended and Restated Pledge and Security Agreement dated as of
January 30, 2009 (the “Security Agreement”).

     C. Subject to the terms of this Amendment, the Borrowers, the Administrative Agent and the
Lenders hereby agree to amend the Credit Agreement and the Security Agreement as specifically
provided herein.

     NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

ARTICLE 1

Definitions

     Section 1.1 Definitions. Term defined by the Credit Agreement, where used in this
Amendment, to the extent not otherwise defined herein shall have the same meanings as are
prescribed by the Credit Agreement.

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

FIRST AMENDMENT TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT — Page 1

 

 

ARTICLE 2

Amendment

     Section 2.1 Amendment to 1.01 of the Credit Agreement. Effective as of the Effective
Date, each of the following definitions contained in Section 1.01 of the Credit Agreement
is amended and restated to read in its entirety as follows, respectively:

     “Applicable Rate” means, for any day, with respect to any CBFR
Revolving Loan or Eurodollar Revolving Loan, as the case may be, the applicable rate
per annum set forth below under the caption “CBFR Spread” or “Eurodollar Spread”, as
the case may be, based upon the Borrowers’ Fixed Charge Coverage Ratio as of the
most recent determination date, provided that until the delivery to the
Administrative Agent, pursuant to Section 5.01, of the Company’s
consolidated financial information for the Company’s fiscal quarter ending after
March 31, 2011, the “Applicable Rate” shall be the applicable rate per annum set
forth below in Category 1:

	 	 	 	 	 	 	 	 	 
	Fixed Charge Coverage	 	 	 	 	 	Eurodollar	 
	Ratio	 	CBFR Spread	 	 	Spread	 
	Category 1

3 1.75 to 1.0
	 	 	1.25	%	 	 	2.25	%
	 
	 	 	 	 	 	 	 	 
	Category 2

< 1.75 to 1.0 but

3 1.25 to 1.0
	 	 	1.50	%	 	 	2.50	%
	 
	 	 	 	 	 	 	 	 
	Category 3

< 1.25 to 1.0
	 	 	1.75	%	 	 	2.75	%

For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the
end of each fiscal quarter of the Company based upon the Company’s annual or
quarterly consolidated financial statements delivered pursuant to Section
5.01 and (b) each change in the Applicable Rate resulting from a change in the
Fixed Charge Coverage Ratio shall be effective during the period commencing on and
including the date of delivery to the Administrative Agent of such consolidated
financial statements indicating such change and ending on the date immediately
preceding the effective date of the next such change, provided that the Fixed Charge
Coverage Ratio shall be deemed to be in Category 3 (A) at any time that an Event of
Default has occurred and is continuing or (B) at the option of the Administrative
Agent or at the request of the Required Lenders if the Borrowers fail to deliver the
annual or quarterly consolidated financial statements required to be delivered
pursuant to Section 5.01, during the period from the expiration of the time
for delivery thereof until such consolidated financial statements are delivered.

     “Fixed Charges” means, with reference to any period, without
duplication, cash Interest Expense, plus prepayments and scheduled principal
payments on Indebtedness made during such period, plus expense for taxes paid in
cash, plus Restricted Payments paid in cash (other than Restricted Payments made in
accordance with the permissions of Section 6.08(a)(iv)), plus Capital Lease
Obligation payments, all calculated for the Company and its Subsidiaries on a
consolidated basis.

     “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a)
Adjusted EBITDA minus Capital Expenditures that are unfinanced or financed with
Revolving

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

FIRST AMENDMENT TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT — Page 2

 

 

Loans, minus cash contributions to any Plan (other than non-required cash
contributions to any Plan made while no Revolving Loan is outstanding), to the
extent not already deducted from Adjusted EBITDA to (b) Fixed Charges, all
calculated for the Company and its Subsidiaries on a consolidated basis in
accordance with GAAP.

     “Funding Accounts” has the meaning assigned to such term in Section
4.01(g).

     “Maturity Date” means September 30, 2014 or any earlier date on which
the Revolving Commitments are reduced to zero or otherwise terminated pursuant to
the terms hereof.

     “Restructuring Costs” means severance expenses, and other charges
reasonably acceptable to the Administrative Agent which are incurred by the Company
and which do not exceed $5,000,000 during any fiscal year of the Company.

     “Trigger Period” means the period beginning on the date that
Availability is less than $10,000,000 and ending on the date thereafter, if any, on
which Availability has been equal to or greater than $15,000,000 for 60 consecutive
days.

     Section 2.2 Deletion from Section 1.01 of the Credit Agreement. Effective as of the
Effective Date, the definition of “Pension Reimbursement Payment” is deleted from Section
1.01 of the Credit Agreement.

     Section 2.3 Amendment to Section 2.12(a) of the Credit Agreement. Effective as of the
Effective Date, Section 2.12(a) of the Credit Agreement is amended and restated to read in
its entirety as follows:

     (a) The Borrowers agree to pay to the Administrative Agent for the account of
each Lender a commitment fee in an amount equal to the Commitment Fee Rate on the
average daily amount of the Available Revolving Commitment of such Lender during the
period from and including the Effective Date to but excluding the date on which the
Lenders’ Revolving Commitments terminate. Accrued commitment fees shall be payable
in arrears on the first Business Day of each calendar month and on the date on which
the Revolving Commitments terminate, commencing on June 1, 2011. All commitment
fees shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed. As used in this clause (a):

     “Commitment Fee Rate” means, as of any date of determination, a rate
equal to: (i) 0.500% if the average daily amount of the Available Revolving
Commitment for the calendar month most recently ended is greater than 50% of the
Revolving Commitments and (ii) 0.375% if the average daily amount of the Available
Revolving Commitment for the calendar month most recently ended is equal to or less
than 50% of the Revolving Commitments. The Commitment Fee Rate shall be 0.500% for
the period from May 2, 2011 until the Commitment Fee Rate is redetermined on June 1,
2011.

     Section 2.4 Amendment to Section 5.01(f) of the Credit Agreement. Effective as of the
Effective Date, Section 5.01(f) of the Credit Agreement is amended and restated to read in
its entirety as follows:

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

FIRST AMENDMENT TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT — Page 3

 

 

     (f) as soon as available, but in any event not more than 60 days after the end
of each fiscal year of the Company, a copy of the plan and forecast (including a
projected consolidated balance sheet, income statement and funds flow statement) of
the Company for each fiscal quarter of the upcoming fiscal year (the
“Projections”) in form reasonably satisfactory to the Administrative Agent;

     Section 2.5 Amendment to Section 5.02 of the Credit Agreement. Effective as of the
Effective Date, each reference to “$1,000,000” in Section 5.02 of the Credit Agreement is
amended and restated to read “$5,000,000”.

     Section 2.6 Addition to Article VI of the Credit Agreement. Effective as of the
Effective Date, a new Section 6.15 is added to the end of Article VI of the Credit
Agreement and such new Section 6.15 shall read as follows:

     Section 6.15. Plan Contributions. The Borrowers will not, and will
not permit any Subsidiary to, make any non-required cash contributions to any Plan
at any time that (a) a Default exists or (b) a Revolving Loan is outstanding.

     Section 2.7 Amendment to Section 6.04(b) of the Credit Agreement. Effective as of the
Effective Date, Section 6.04(b) of the Credit Agreement is amended and restated to read in
its entirety as follows:

     (b) investments or other interests as described in Schedule 6.04;

     Section 2.8 Amendment to Section 6.04(l) of the Credit Agreement. Effective as of the
Effective Date, Section 6.04(l) of the Credit Agreement is amended and restated to read in
its entirety as follows:

     (l) other acquisitions, loans, advances, Guarantees or other investments made
during any fiscal year in an aggregate amount not to exceed $10,000,000.

     Section 2.9 Amendment to Section 6.08(a) of the Credit Agreement. Effective as of the
Effective Date, Section 6.08(a) of the Credit Agreement is amended and restated to read in
its entirety as follows:

     (a) No Loan Party will, nor will it permit any Subsidiary to, declare or make,
or agree to pay or make, directly or indirectly, any Restricted Payment, or incur
any obligation (contingent or otherwise) to do so, except so long as no Default has
occurred and is continuing or would result from the making of such Restricted
Payment:

          (i) each Borrower may declare and pay dividends with respect to its common
stock payable solely in additional shares of its common stock, and, with respect to
its preferred stock, payable solely in additional shares of such preferred stock or
in shares of its common stock;

          (ii) Subsidiaries may declare and pay dividends ratably with respect to their
Equity Interests;

          (iii) the Company may declare and pay regularly scheduled cash dividends with
respect to its Equity Interests so long as (A) the Company provides written notice
to the Administrative Agent and the Lenders that the Board of Directors

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

FIRST AMENDMENT TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT — Page 4

 

 

has authorized payment of such dividends, (B) such dividends are paid no more
frequently than once every fiscal quarter, and (C) if a Revolving Loan is
outstanding as of the date of the payment of the dividends, then (1) the Fixed
Charge Coverage Ratio for Borrowers is equal to or greater than 1.0 to 1.0 and (2)
Availability at the time of and after giving effect to such dividends is equal to or
greater than $12,500,000; and

          (iv) the Borrowers may make other Restricted Payments so long as no Revolving
Loan is outstanding as of the date of making such Restricted Payments.

For purposes of subclause (iii), the Fixed Charge Coverage Ratio shall be calculated
as of the last day of the calendar month for which the most recent monthly financial
statements were required pursuant to Section 5.01(c), giving pro forma
effect to such proposed dividends.

     Section 2.10 Amendment to Section 6.08(b)(v) of the Credit Agreement. Effective as of
the Effective Date, Section 6.08(b)(v) of the Credit Agreement is amended and restated to
read in its entirety as follows:

     (v) [Intentionally Omitted.]

     Section 2.11 Amendment to Section 6.12 of the Credit Agreement. Effective as of the
Effective Date, Section 6.12 of the Credit Agreement is amended and restated to read in its
entirety as follows:

     Section 6.12 [Intentionally Omitted.]

     Section 2.12 Amendment to Section 6.13 of the Credit Agreement. Effective as of the
Effective Date, the definition of “Testing Period” contained in Section 6.13 of the Credit
Agreement is amended and restated to read in its entirety as follows:

     As used in this Section 6.13, the term “Testing Period” means
the period beginning on the date that Availability is less than $7,500,000 and
ending on the date thereafter, if any, on which Availability has been equal to or
greater than $15,000,000 for 60 consecutive days.

     Section 2.13 Amendment to Schedules 3.06, 3.15, 6.04 and 6.09 to the Credit Agreement.
Effective as of the Effective Date, Schedules 3.06, 3.15 and 6.09 to the Credit Agreement are
amended and restated to read as Schedules 3.06, 3.15, and 6.09 attached hereto.

ARTICLE 3

Amendment to Security Agreement

     Section 3.1 Amendment to Section 1.3 of the Security Agreement. Effective as of the
Effective Date, the following definition is added to Section 1.3 of the Security Agreement, which
shall be deemed inserted in its appropriate alphabetical position and read as follows:

     “Alternative Cash Management Procedure” means, with respect to the
Deposit Account Control Agreement for a Collateral Deposit Account and the Lock Box
Agreement for a Lock Box, a cash management procedure (documented pursuant to a
Deposit Account Control Agreement with a depository bank reasonably acceptable to
the Administrative Agent and in form and substance reasonably satisfactory to the

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

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Administrative Agent) which provides that (i) for so long as (A) no Default has
occurred and is continuing and (B) Availability is in excess of $10,000,000, all
funds deposited into or collected through any such Lock Box or Collateral Deposit
Account shall be deposited on a daily basis directly into the Borrower’s Funding
Account, and (ii) at any time when (A) a Default has occurred and is continuing or
(B) Availability is not in excess of $10,000,000, all funds deposited into or
collected through any such Lock Box or Collateral Deposit Account shall be swept on
a daily basis into a collection account maintained by such Grantor with the
Administrative Agent.

     Section 3.2 Amendment to add Section 7.1(c) of the Security Agreement. Effective as
of the Effective Date, a new Section 7.1(c) is added to the Security Agreement, which shall be
deemed inserted immediately following Section 7.1(b) and read in its entirety as follows:

     (c) With respect to each Lock Box and Collateral Deposit Account, on and after
the date when the Alternative Cash Management Procedure for such Lock Box or
Collateral Deposit Account is established, all funds thereafter deposited into any
such Lock Box or Collateral Deposit Account shall be administered as follows: (i)
for so long as (A) no Default has occurred and is continuing and (B) Availability is
in excess of $10,000,000, all funds deposited into or collected through any Lock Box
subject to a Lock Box Agreement or a Collateral Deposit Account shall be deposited
on a daily basis directly into the Borrower’s Funding Account, and (ii) at any time
when (A) a Default has occurred and is continuing or (B) Availability is not in
excess of $10,000,000, all funds deposited into or collected through any Lock Box
subject to a Lock Box Agreement or a Collateral Deposit Account shall be swept on a
daily basis into a collection account maintained by such Grantor with the
Administrative Agent (the “Collection Account”).

     Section 3.3 Amendment to Section 7.3 of the Security Agreement. Effective as of the
Effective Date, Section 7.3 of the Credit Agreement is amended and restated to read in its
entirety as follows:

     Section 7.3 Application of Proceeds; Deficiency. All amounts deposited
in the Collection Account shall be deemed received by the Administrative Agent in
accordance with Section 2.18 of the Credit Agreement and shall, after having been
credited to the Collection Account, be applied (and allocated) by Administrative
Agent in accordance with Section 2.10(b) of the Credit Agreement; provided
that, notwithstanding the foregoing, so long as no Default has occurred and is
continuing and Availability is in excess of $10,000,000, collections which are
received into the Collection Account shall instead be deposited into the Borrower’s
Funding Account rather than applied (and allocated) pursuant to Section 2.10(b) of
the Credit Agreement. The Administrative Agent shall require all other cash
proceeds of the Collateral, which are not required to be applied to the Obligations
pursuant to Section 2.11 of the Credit Agreement, to be deposited in a special
non-interest bearing cash collateral account with the Administrative Agent and held
there as security for the Secured Obligations, provided that,
notwithstanding the foregoing, so long as no Default has occurred and is continuing
and Availability is in excess of $10,000,000, such cash proceeds may instead by
retained by the Borrower rather than deposited in such cash collateral account. No
Grantor shall have any control whatsoever over such cash collateral account. Any
such proceeds of the Collateral which are deposited in such cash collateral account
shall be applied in the order set forth in Section 2.18 of the Credit Agreement
unless a court of competent

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

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jurisdiction shall otherwise direct. The balance, if any, after all of the Secured
Obligations have been satisfied, shall be deposited by the Administrative Agent into
such Grantor’s general operating account with the Administrative Agent. The
Grantors shall remain liable for any deficiency if the proceeds of any sale or
disposition of the Collateral are insufficient to pay all Secured Obligations,
including any attorneys’ fees and other expenses incurred by Administrative Agent or
any Lender to collect such deficiency.]

ARTICLE 4

Conditions

     Section 4.1 Conditions. The effectiveness of Articles 2 and 3 of this
Amendment are subject to the satisfaction of the following conditions precedent:

          (a) the Administrative Agent shall have received this Amendment duly executed by the Borrowers
and the Lenders;

          (b) the Administrative Agent shall have received evidence that each Borrower has the corporate
authority to execute and deliver this Amendment and to perform its obligations hereunder;

          (c) the Administrative Agent shall have received amendment fees, for the account of the
Lenders, in an aggregate amount equal to 0.50% of the Revolving Commitment of all Lenders;

          (d) the representations and warranties contained herein and in all other Loan Documents, as
amended hereby, shall be true and correct in all material respects as of the date hereof as if made
on the date hereof, except for such representations and warranties limited by their terms to a
specific date; and

          (e) no Default shall exist.

ARTICLE 5

Other Agreements

     Section 5.1 Alternative Cash Management Procedure. As soon as possible and in any
event not later than June 16, 2011, the Borrowers and the Administrative Agent shall cause the
Deposit Account Control Agreement for each Collateral Deposit Account and the Lock Box Agreement
for each Lock Box to be amended (or, at the Borrowers’ option, replaced with a depository bank
reasonably acceptable to the Administrative Agent) in form and substance reasonably satisfactory to
the Administrative Agent, to provide for the Alternative Cash Management Procedure (defined in
Section 7.1 of the Security Agreement, as amended by this Amendment).

     Section 5.2 Acquired Property. The parties hereto acknowledge that the Borrower
Representative has notified the Administrative Agent and the Lenders that a Loan Party has acquired
or will acquire residential real property located in Thousand Oaks, California and improvements and
fixtures thereon (the “Acquired Property”) in connection with an employee’s relocation.
The Administrative Agent and the Lenders hereby agree that they will not require the Loan Parties
to cause the Acquired Property to be subjected to a Lien securing the Secured Obligations or to
take any action to grant or perfect Liens on the Acquired Property (other than to the extent a Lien
on the Acquired Property is perfected by the UCC Financing Statements previously filed against the
Loan Parties), and hereby waive any and all rights to do so under Section 5.12 of the
Credit Agreement or otherwise.

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

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     Section 5.3 Ratifications. Each of the Loan Parties agrees that the terms and
provisions of the Credit Agreement, the Security Agreement, and the other Loan Documents are
ratified and confirmed and shall continue in full force and effect after giving effect to this
Amendment. Each of the Loan Parties, the Administrative Agent and the Lenders agrees that each of
the Credit Agreement and the Security Agreement, as amended hereby, and the other Loan Documents
shall continue to be legal, valid, binding, and enforceable in accordance with their respective
terms.

     Section 5.4 Representations and Warranties. Each Loan Party hereby represents and
warrants to the Administrative Agent and the Lenders that, as of the date of and after giving
effect to this Amendment, (a) the execution, delivery, and performance of this Amendment and any
and all other documents executed and/or delivered in connection herewith have been authorized by
all requisite action on the part of such Loan Party and will not violate such Loan Party’s
organizational or governing document, (b) the representations and warranties contained in the
Credit Agreement and in the other Loan Documents are true and correct on and as of the date hereof,
in all material respects, as if made again on and as of the date hereof except for such
representations and warranties limited by their terms to a specific date, and (c) no Default
exists.

     Section 5.5 Survival of Representations and Warranties. All representations and
warranties made in this Amendment, the Credit Agreement, or any other Loan Document, including any
other Loan Document furnished in connection with this Amendment, shall survive the execution and
delivery of this Amendment, and no investigation by the Administrative Agent or any Lender, or any
closing, shall affect the representations and warranties or the right of the Administrative Agent
and the Lenders to rely upon them.

     Section 5.6 Reference to Credit Agreement. The Credit Agreement, the Security
Agreement and each of the other Loan Documents, and any and all other agreements, documents, or
instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the
terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference to the
Credit Agreement or the Security Agreement in such agreements, documents, and instruments, whether
direct or indirect, shall be a reference to the Credit Agreement or the Security Agreement, as
applicable, as amended hereby. When effective pursuant to Section 4.1 hereof, this
Amendment shall be a Loan Document.

     Section 5.7 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the provision so held to be invalid
or unenforceable.

     Section 5.8 Effect of Amendment. No consent or waiver, express or implied, by the
Administrative Agent or any Lender to or for any breach of or deviation from any covenant,
condition, or duty by any Loan Party shall be deemed a consent or waiver to or of any other breach
of the same or any other covenant, condition, or duty. Each of the Loan Parties (individually, a
“Subject Loan Party”) hereby (a) consents to the execution and delivery of this Amendment
by the other Loan Parties, (b) agrees that this Amendment shall not limit or diminish the
obligations of the Subject Loan Party under its certain Loan Documents delivered in connection with
the Credit Agreement or executed or joined in by the Subject Loan Party and delivered to the
Administrative Agent, (c) reaffirms the Subject Loan Party’s obligations under each of such Loan
Documents, and (d) agrees that each of such Loan Documents remains in full force and effect and is
hereby ratified and confirmed.

     Section 5.9 Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, BUT GIVING EFFECT TO FEDERAL LAW APPLICABLE TO
NATIONAL BANKS.

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     Section 5.10 Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of the Loan Parties, the Administrative Agent and the Lenders and their respective
successors and assigns, except that no Loan Party may assign or transfer any of its respective
rights or obligations hereunder without the prior written consent of the Administrative Agent and
the Lenders.

     Section 5.11 Counterparts. This Amendment may be executed in one or more
counterparts, and on telecopy counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the same agreement.

     Section 5.12 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment. A
telecopy or other electronic transmission of any executed counterpart shall be deemed valid as an
original.

     Section 5.13 Release. TO INDUCE THE ADMINISTRATIVE AGENT AND THE LENDERS TO AGREE TO
THE TERMS OF THIS AMENDMENT, EACH OF THE LOAN PARTIES REPRESENTS AND WARRANTS THAT AS OF THE DATE
OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO SUCH LOAN
PARTY’S OBLIGATIONS UNDER THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND WAIVES ANY AND ALL
SUCH CLAIMS, OFFSETS, DEFENSES, OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE
DATE OF THIS AMENDMENT AND RELEASES AND DISCHARGES THE ADMINISTRATIVE AGENT, THE LENDERS AND THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES, AND ATTORNEYS
(COLLECTIVELY THE “RELEASED PARTIES”) FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS,
LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION, OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN,
SUSPECTED OR UNSUSPECTED, AT LAW OR IN EQUITY, WHICH SUCH LOAN PARTY NOW HAS OR MAY HAVE AGAINST
ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF AND FROM OR IN CONNECTION WITH THE CREDIT
AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED THEREBY.

     Section 5.14 Entire Agreement. THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS,
AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION WITH THIS AMENDMENT EMBODY THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES

     HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE
PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

SIGNATURES FOLLOW

REMAINDER OF PAGE BLANK

 FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND

FIRST AMENDMENT TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT — Page 9

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized officers in several counterparts effective as of the Effective Date specified in the
preamble hereof.

	 	 	 	 	 
	 	BORROWERS:

A. H. BELO CORPORATION

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Senior Vice President/Chief Financial Officer 	 
	 
	 	THE DALLAS MORNING NEWS, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	DENTON PUBLISHING COMPANY

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	DFW PRINTING COMPANY, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	DMI ACQUISITION SUB, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PRESS-ENTERPRISE COMPANY

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	THE PROVIDENCE JOURNAL COMPANY

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	OTHER LOAN PARTIES:

A. H. BELO MANAGEMENT SERVICES, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	AL DIA, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	THE BELO COMPANY

 	 
	 	By:  	Sandra J. Radcliffe
 	 
	 	 	Sandra J. Radcliffe, 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	BELO ENTERPRISES, INC.

 	 
	 	By:  	Sandra J. Radcliffe
 	 
	 	 	Sandra J. Radcliffe, 	 
	 	 	Treasurer/Assistant Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BELO INTERACTIVE, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	BELO INVESTMENTS II, INC.

 	 
	 	By:  	/s/ Sandra J. Radcliffe
 	 
	 	 	Sandra J. Radcliffe, 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	BELO TECHNOLOGY ASSETS, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	NEWS-TEXAN, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 
	 
	 	PROVIDENCE HOLDINGS, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	President 	 
	 
	 	TDMN NEW PRODUCTS, INC.

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 

 

 

	 	 	 	 	 
	 	TRUE NORTH REAL ESTATE LLC

By: A. H. Belo Management Services, Inc., its sole member

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel Senior Vice President/ 	 
	 	 	Chief Financial Officer 	 
	 
	 	WASHINGTON STREET GARAGE CORPORATION

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Alison K. Engel 	 
	 	 	Treasurer/Assistant Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT AND LENDERS:

JPMORGAN CHASE BANK, N.A.,

individually, as a Lender, Administrative Agent,

Issuing Bank and Swingline Lender

 	 
	 	By:  	/s/ Jeff A. Tompkins
 	 
	 	 	Name:  	         Jeff A. Tompkins 	 
	 	 	Title:  	Vice President 	 
	 
	 	CAPITAL ONE, N.A., as a Lender

 	 
	 	By:  	/s/ Shannan Pratt
 	 
	 	 	Name:  	       Shannan Pratt 	 
	 	 	Title:  	Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]