Document:

exv10w23

 

Exhibit 10.23

EXECUTION COPY

Form of Fourth Amended and Restated Company Pledge Agreement

among Hollinger International Publishing Inc. and its Subsidiaries and

Wachovia Bank, N.A. dated as of December 23, 2002

FOURTH AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT

     THIS FOURTH AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT (this
“Agreement”) dated as of December 23, 2002, is among HOLLINGER INTERNATIONAL
PUBLISHING INC., a Delaware corporation (the “Company”), the subsidiaries of
the Company listed on the signature page hereof and such other persons or
entities which from time to time become parties hereto as pledgors
(collectively, including the Company, the “Pledgors” and individually each a
“Pledgor”) and WACHOVIA BANK, N.A., in its capacity as administrative agent for
the Lenders referred to below (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

     WHEREAS, Hollinger International Publishing Inc. (the “Company”),
Telegraph Group Limited (“Telegraph”), certain other borrowers, The
Toronto-Dominion Bank (“Toronto-Dominion”), as issuing bank and Toronto
Dominion (Texas), Inc., as administrative agent (in such capacity, together
with any successors in such capacity) entered into that certain Third Amended
and Restated Credit Agreement dated as of April 30, 1999 (as amended or
modified and in effect on the Amendment Effective Date, the “Existing Credit
Agreement”), whereunder certain financial institutions agreed to make loans and
to issue letters of credit and bankers’ acceptances (such loans, letters of
credit and bankers’ acceptances outstanding on the Amendment Effective Date,
collectively the “Existing Credit Extensions”); and

     WHEREAS, in connection with the Original Guaranty, the Company and certain
Pledgors executed that certain Third Amended and Restated Company Pledge
Agreement dated as of April 30, 1999 among the Company, certain Subsidiaries of
the Company parties thereto and Toronto Dominion (Texas), Inc., as
administrative agent (as amended and in effect on the Amendment Effective Date,
the “Original Company Pledge Agreement”); and

     WHEREAS, the Company has requested various financial institutions
(together with their respective successors and assigns, collectively the
“Lenders” and each individually a “Lender”) to amend and restate the Existing
Credit Agreement on the terms and conditions set forth in the Fifth Amended and
Restated Credit Agreement, dated as of even date herewith, among the Company,
Telegraph and First DT Holdings Limited (“FDTH” and, together with the Company
and Telegraph, each a “Borrower” and collectively, the “Borrowers”), the
Lenders, the Administrative Agent, Wachovia Securities, Inc., as sole lead
arranger and book runner, Toronto Dominion (Texas), Inc., as Syndication Agent,
and General Electric Capital Corporation, as Documentation Agent (together with
all amendments and other modifications, if any, from time to time made thereto,
the “Amended and Restated Credit Agreement”) to set forth, among other things,
the terms and conditions under which the Lenders thereafter will make credit
extensions to the Borrowers; it being the intention of the Company, the Lenders
and the Administrative Agent that the Amended and Restated Credit Agreement and
the Loan Documents executed in connection therewith shall not effect the
novation of the obligations of the Borrowers under the

Company Pledge Agreement

 

	 	 	 	 	 	 	 	 	 	 	 
	Receivables Due from Unrestricted Group	 	Type of Investment and/or Percentage Owned	 	Sept 30, 2002	 	Nov 30, 2002
	
	 	
	 	
	 	

	Chicago Sun Times	 	 	 	 	 	 	 	 	 	 
	Due from Hollinger Digital Inc.	 	non interest bearing advance, due on demand	 	$	1,031,689	 	 	$	1,241,702	 
	Due from Hollinger International Inc.	 	non interest bearing advance, due on demand	 	$	5,017,938	 	 	$	5,017,938	 
	HIPI	 	 	 	 	 	 	 	 	 	 
	Due from Hollinger Canadian Publishing Holdings Co.	 	non interest bearing advance, due on demand, denominated in Canadian dollars	 	$	5,005,966	 	 	$	5,071,498	 
	Due from XSTM Business Communications Ltd	 	non interest bearing advance, due on demand	 	$	75,000	 	 	$	75,000	 
	Due from Hollinger (Challenger) Holdings Co.	 	non interest bearing advance, due on demand, denominated in Canadian dollars	 	$	220,639	 	 	$	61,141	 
	Due from Hollinger Telegraph New Media LLC	 	mixture of interest bearing and non interest bearing notes, due on
demand, denominated in US and GBP	 	$	14,699,292	 	 	$	14,756,467	 
	Due from Hollinger International Inc.	 	interest bearing note at 9%, denominated in Canadian dollars	 	$	263,335,261	 	 	$	270,282,253	 
	HIF Corporation	 	 	 	 	 	 	 	 	 	 
	Due from Hollinger Canadian Publishing Holdings Co.	 	non interest bearing advance, due on demand, denominated in Canadian dollars	 	$	949,660	 	 	$	959,215	 
	TAHL	 	 	 	 	 	 	 	 	 	 
	Due from Hollinger Digital Inc.	 	non interest bearing promissory note, due on demand, denominated in GBP	 	$	8,011,117	 	 	$	7,936,146	 
	Telegraph Group	 	 	 	 	 	 	 	 	 	 
	Due from Hollinger Telegraph New Media LLC	 	non interest bearing advance, due on demand, denominated in GBP	 	$	676,335	 	 	$	669,990	 

 

 Existing Credit Agreement but be merely a restatement and, where
applicable, an amendment of and substitution for the terms governing such
obligations hereafter; and

          WHEREAS, in connection with the Amended and Restated Credit Agreement,
each of the Pledgors (other than the Company) is executing and delivering an
amended and restated guaranty of even date herewith (the “U.S. Subsidiary
Guaranty”) of the obligations of the Borrowers under the Amended and Restated
Credit Agreement; and

          WHEREAS, as a condition precedent to the Amendment Effective Date of the
Amended and Restated Credit Agreement, the Pledgors are required to execute and
deliver this Agreement; and

          WHEREAS, the parties desire to amend and restate the Original Company
Pledge Agreement to recognize the addition of new issuers and new Borrowers, it
being the intention of the Borrowers, the other Pledgors, the Lenders and the
Administrative Agent that this Agreement and the Loan Documents executed in
connection herewith shall not effect a novation of the obligations of the
Company and the other Pledgors under the Original Company Pledge Agreement but
be merely a restatement and, where applicable, an amendment of the terms
governing such obligations hereafter;

          WHEREAS, the Pledgors have duly authorized the execution, delivery and
performance of this Agreement; and

          WHEREAS, it is in the best interests of the Pledgors to execute this
Agreement inasmuch as the Pledgors will derive substantial direct and indirect
benefits from the Loans made from time to time to the Borrowers and the Letters
of Credit issued from time to time for the account of the Company and Telegraph
pursuant to the Amended and Restated Credit Agreement;

          NOW, THEREFORE, for and in consideration of any loan, advance or other
financial accommodation heretofore or hereafter made to any of the Borrowers
under or in connection with the Amended and Restated Credit Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

          1.
Definitions. When used herein, the following terms have the following
meanings (such meanings to be applicable to both the singular and plural forms
of such terms):

		
	 	     Additional Rights means any ownership interest, dividend or other
distribution and any other right or property which the Pledgor shall
receive or shall become entitled to receive for any reason whatsoever
with respect to, in substitution for or in exchange for any portion of
the Entity Interest and any ownership interest or right to receive any
ownership interest or dividend or distribution in which the Pledgor now
has or hereafter acquires any right, issued by any entity listed on
Schedule III hereto.

		
	 	     Collateral — see Section 2 hereof.
	 
	 	     Default means the occurrence of any Event of Default (as defined in
the Amended and Restated Credit Agreement).

Company Pledge Agreement

2

 

		
	 	     Entity Interest means each Pledgor’s entire interest in the entities
listed on Schedule III hereto including, without limitation, all rights
in and to all profits, proceeds and distributions of every kind and
nature whatsoever due to such Pledgor pursuant to the terms of a
partnership agreement, LLC agreement, or other similar agreement.

		
	 	     Issuer means the issuer of any of the shares of stock, any Entity
Interest or other securities representing all or any of the Collateral.

		
	 	     Liabilities means, as to each Pledgor, all obligations (monetary or
otherwise) of such Pledgor howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or hereafter
existing or due or to become due including, without limitation, any
post-petition interest accruing during any bankruptcy reorganization of
any Pledgor or other similar proceeding, which arise out of or in
connection with the Amended and Restated Credit Agreement, the U.S.
Subsidiary Guaranty, Letters of Credit or Letter of Credit Applications,
any other Loan Document or any other document or instrument (including
any Hedging Agreement entered into with a Qualified Hedge Counterparty)
executed in connection therewith.

		
	 	     Loan Document has the meaning assigned to such term in the Amended
and Restated Credit Agreement.

		
	 	     Maker means the maker of any of the Subsidiary Notes or other
chattel paper representing any or all of the Collateral.

		
	 	     Qualified Hedge Counterparty means Wachovia Bank, N.A. and each
other Person who, on the date the applicable Hedging Agreement is entered
into, is a Lender or an affiliate of a Lender.

		
	 	     Secured Parties has the meaning assigned to such term in the U.S.
Subsidiary Guaranty.

          Unless otherwise defined herein or the context otherwise requires,
capitalized terms used in this Agreement, including its preamble and recitals,
have the meanings provided in the Amended and Restated Credit Agreement.

          2.
Pledge. As security for the payment of all Liabilities, each Pledgor
hereby pledges to the Administrative Agent for the benefit of itself and the
other Secured Parties, and grants to the Administrative Agent for the benefit
of itself and the other Secured Parties a continuing security interest in, all
of the following:

		
	 	     (a) All equity interests owned by such Pledgor in any Borrower or
other Restricted Subsidiary, including without limitation, all Entity
Interests and all of the shares of stock and other securities described
in Schedule I hereto listed under such Pledgor’s name, all of the certificates and/or instruments
representing such equity interests, shares of stock and other securities
and all cash, securities, dividends, distributions, returns of capital,
instruments, rights and other property at any time and from time to time
received, receivable or otherwise distributed in respect of or in
exchange for any or all of such equity interests, shares or other
securities;

Company Pledge Agreement

3

 

		
	 	     (b) All additional shares of stock of any of the Issuers listed in
Schedule I and all additional shares of stock or other equity interests
of any Borrower or other Restricted Subsidiary, at any time and from time
to time acquired by any Pledgor in any manner, all of the certificates
representing such additional shares or other equity interests, and all
interest, cash, instruments, securities, dividends, rights and other
property at any time and from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
shares;

		
	 	     (c) All of the Subsidiary Notes, Subsidiary Security Agreements,
instruments and chattel paper described in Schedule II hereto listed
under such Pledgor’s name, all indebtedness evidenced thereby or related
thereto, all other indebtedness owed to such Pledgor by any Person, all
substitutes for or additions to any of the foregoing, and any interest,
products, proceeds or other property at any time and from time to time
received, receivable or otherwise distributed in respect of or in
exchange for any or all of the foregoing;

		
	 	     (d) All additional Subsidiary Notes, Subsidiary Security Agreements,
instruments and chattel paper of any of the Makers listed in Schedule II
hereto or any other Subsidiary of any Pledgor at any time and from time
to time acquired by any Pledgor in any manner, all additional
indebtedness evidenced thereby or related thereto, all other additional
indebtedness of any Person at any time and from time to time acquired by
any Pledgor, all substitutes for or additions to any of the foregoing,
and any interest, products, proceeds or other property at any time and
from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the foregoing;
	 
	 	     (e) All Additional Rights;

		
	 	     (f) All other property hereafter delivered to the Administrative
Agent in substitution for or in addition to any of the foregoing, all
certificates and instruments representing or evidencing such property,
and all cash, securities, interest, dividends, rights and other property
at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof; and

		
	 	     (g) All products and proceeds of all of the foregoing.

All of the foregoing are herein collectively called the “Collateral”.

          Each Pledgor agrees to deliver to the Administrative Agent, promptly upon
receipt and in due form for transfer (i.e., endorsed in blank or accompanied by
stock or bond powers executed in blank), any Collateral which may at any time
or from time to time be in or come into the possession or control of such
Pledgor; and prior to the delivery thereof to the Administrative Agent, such
Collateral shall be held by each Pledgor separate and apart from its other
property and in express trust for the Administrative Agent. In addition, the
Administrative Agent shall have the right at any time to exchange certificates
or instruments representing or evidencing the Collateral for certificates or
instruments of smaller or larger denominations.

          3. Warranties; Further Assurances. Each Pledgor warrants to the
Administrative Agent and each other Secured Party that: (a) such Pledgor is (or
at the time of any future delivery,

Company Pledge Agreement

4

 

pledge, assignment or transfer thereof will
be) the legal and equitable owner of the Collateral free and clear of all
liens, security interests and encumbrances of every description whatsoever
other than the security interest created hereunder; (b) assuming continuous
possession by the Administrative Agent, the pledge and delivery of the
Collateral pursuant to this Agreement will create a valid perfected security
interest in the Collateral in favor of the Administrative Agent; (c) no
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party which
has not been obtained, made or taken, is required for (i) the grant by such
Pledgor of the security interest granted hereunder or for the execution,
delivery or performance of this Agreement by such Pledgor, (ii) the perfection
or maintenance of the security interest created hereunder (including the first
priority nature of such security interest), or (iii) the exercise by the
Administrative Agent of its voting or other rights provided for in this
Agreement or the remedies in respect of the Collateral pursuant to this
Agreement, except as may be required in connection with the disposition of any
portion of the securities pledged hereunder by laws affecting the offering and
sale of securities generally; (d) all shares of stock referred to in Schedule I
hereto are duly authorized, validly issued, fully paid and non-assessable; (e)
all Entity Interests referred to in Schedule III hereto are duly authorized,
validly issued, fully paid and non-assessable; (f) no consent, approval,
authorization, order, registration or qualification of or with any governmental
agency or body or any court or any other Person is required for the sale of any
of the Collateral in accordance with the provisions of this Agreement except
for such as have been obtained or made and except as may be required in
connection with the disposition of any portion of the securities pledged
hereunder by laws affecting the offering and sale of securities generally; (g)
as to each Issuer whose name appears in Schedule I hereto, the Collateral
represents on the date hereof not less than the applicable percent (as shown in
Schedule I hereto) of the total shares of capital stock issued and outstanding
of such Issuer; (h) as to each Issuer whose name appears in Schedule III
hereto, the Collateral represents on the date hereof not less than the
applicable percent (as shown in Schedule III hereto) of the total Entity
Interest of such Issuer, (i) the information contained in Schedule I hereto is
true and accurate in all respects and reflects all equity interests owned by
such Pledgor in any Borrower or any Restricted Subsidiary, except for any
equity interests reflected on Schedule III hereto; (j) the information
contained in Schedule II hereto is true and accurate in all respects, and
reflects all indebtedness owed to such Pledgor by any member of the Financial
Group; and (k) the information contained in Schedule III hereto is true and
accurate in all respects and reflects all equity interests owned by the
applicable Pledgor in the entities specified thereon.

          So long as any of the Liabilities shall be outstanding or any commitment
shall exist on the part of the Administrative Agent or any Secured Party with
respect to the creation of any Liabilities, each Pledgor (i) shall not (except
as otherwise permitted pursuant to the Amended and Restated Credit Agreement),
without the express prior written consent of the Administrative Agent, (x)
sell, assign, exchange, pledge or otherwise transfer, encumber, or grant any
option, warrant or other right to purchase any Collateral which is pledged
hereunder or (y) otherwise diminish or impair any of its rights in, to or under
any of the Collateral; (ii) as to each Issuer whose name appears on Schedule I
hereto, except as otherwise permitted under the Amended and Restated Credit
Agreement, shall continue to own and keep pledged hereunder not less than the
applicable percent (as shown in Schedule I hereto) of the total shares of
capital stock issued and outstanding of such Issuer; (iii) as to each Issuer
whose name appears on Schedule III hereto, except as otherwise permitted under
the Amended and Restated Credit Agreement, shall continue

Company Pledge Agreement

5

 

to own and keep
pledged hereunder not less than the applicable percent (as shown in
Schedule
III hereto) of the total Entity Interest of such Issuer; (iv) shall execute
such Uniform Commercial Code financing statements and other documents (and pay
the costs of filing and recording or re-filing and re-recording the same in all
public offices reasonably deemed necessary or appropriate by the Administrative
Agent) and do such other acts and things, all as the Administrative Agent may
from time to time reasonably request, to establish and maintain a valid,
perfected security interest in the Collateral including, without limitation,
marking the Pledgor’s stock transfer books and records to reflect such security
interest (free of all other liens, claims and rights of third parties
whatsoever), to secure the performance and payment of the Liabilities; (v) will
execute and deliver to the Administrative Agent such stock powers, endorsements
and similar documents relating to the Collateral, satisfactory in form and
substance to the Administrative Agent, as the Administrative Agent may
reasonably request; (vi) will upon the request of the Administrative Agent,
upon the occurrence and during the continuance of an Event of Default, notify
each issuer of the indebtedness pledged hereunder that such indebtedness is
subject to the security interest granted hereunder; and (vii) will furnish the
Administrative Agent or any other Secured Party with such information
concerning the Collateral as the Administrative Agent or such other Secured
Party may from time to time reasonably request, and will permit the
Administrative Agent or any other Secured Party or any designee of the
Administrative Agent or any other Secured Party, from time to time at
reasonable times and on reasonable notice, to inspect, audit and make copies of
and extracts from all records and all other papers in the possession of such
Pledgor which pertain to the Collateral as set forth in Section 10.2 of the
Amended and Restated Credit Agreement and will, upon request of the
Administrative Agent at any time when a Default has occurred and is continuing,
deliver to the Administrative Agent all of such records and papers.

          4.     Holding in Name of Administrative Agent, etc. The Administrative Agent
may from time to time after the occurrence and during the continuance of a
Default, without notice to any Pledgor, take all or any of the following
actions: (a) transfer all or any part of the Collateral into the name of the
Administrative Agent or any nominee or sub-agent for the Administrative Agent,
with or without disclosing that such Collateral is subject to the lien and
security interest hereunder; (b) appoint one or more sub-agents or nominees for
the purpose of retaining physical possession of the Collateral; (c) notify the
parties obligated on any of the Collateral to make payment to the
Administrative Agent of any amounts due or to become due thereunder; (d)
endorse any checks, drafts or other writings in the name of any Pledgor to
allow collection of the Collateral; (e) enforce collection of any of the
Collateral by suit or otherwise and surrender, release or exchange all or any
part thereof, or compromise or renew for any period (whether or not longer than
the original period) any obligations of any nature of any party with respect
thereto; and (f) take control of any proceeds of the Collateral. Without
limiting the forgoing or any other provision in the Loan Documents,
the Administrative Agent may at any time make any and all filings deemed
reasonably necessary in furtherance of this Agreement, the other Loan Documents
and the purposes hereof and thereof, including without limitation, Uniform
Commercial Code financing statements showing any Pledgor as Debtor thereunder
(which financing statements may be filed in advance of the Amendment Effective
Date) in all appropriate jurisdictions, which financing statements may describe
the collateral in which a security interest is granted by each such Debtor as
“all assets” of such Debtor. The Administrative Agent acknowledges that, in
its capacity as Administrative Agent and security

Company Pledge Agreement

6

 

trustee, it holds the
Collateral under the Collateral Documents for the benefit of and in trust for
itself and the Lenders.

          5.     Voting Rights, Dividends, Payments, etc. (a) Notwithstanding certain
provisions of Section 4 hereof, so long as the Administrative Agent has not
given the notice referred to in paragraph (b) below:

		
	 	     (1) Each Pledgor shall be entitled to exercise any and all
voting or consensual rights and powers and stock purchase or
subscription rights or other similar rights to acquire equity
interests (but any such exercise by a Pledgor of stock purchase or
subscription rights or other similar rights to acquire equity
interests may be made only from funds of such Pledgor not
comprising part of the “Collateral” (as defined in the Amended and
Restated Credit Agreement) relating or pertaining (to the extent
that such Pledgor is otherwise entitled to exercise such rights) to
the Collateral constituting stock or any part thereof for any
purpose; provided, however, that each Pledgor agrees that it will
not exercise any such rights or powers in any manner which would
have a material adverse effect on the value of such Collateral or
any part thereof.
	 
	 	     (2) Each Pledgor shall, subject to the proviso below, be
entitled to receive and retain (to the extent that such Pledgor is
otherwise entitled to receive and retain dividends in respect of
the Collateral) any and all lawful dividends payable in respect of
the Collateral constituting stock and any Additional Rights which
are paid in cash by any Issuer if such dividends are permitted by
the Amended and Restated Credit Agreement; provided, however, that
all dividends, distributions and Additional Rights in respect of
such Collateral or any part thereof made in shares of stock or
other property or otherwise representing any return of capital,
whether resulting from a subdivision, combination or
reclassification of such Collateral or any part thereof or received
in exchange for such Collateral or any part thereof or as a result
of any merger, consolidation, acquisition or other exchange of
assets to which any Issuer may be a party or otherwise or as a
result of any exercise of any stock purchase or subscription right,
shall be and become part of the Collateral hereunder and, if
received by any Pledgor, shall be forthwith delivered to the
Administrative Agent in due form for transfer (i.e., endorsed in
blank or accompanied by stock or bond powers executed in blank) to
be held for the purposes of this Agreement.
	 
	 	     (3) The Administrative Agent shall execute and deliver, or
cause to be executed and delivered, to each Pledgor, all such
proxies, powers of attorney, dividend orders and other instruments
as such Pledgor may request for the purpose of enabling such
Pledgor to exercise the rights and powers which it is entitled to
exercise pursuant to clause (1) above and to receive the dividends
and Additional Rights which it is authorized to retain pursuant to
clause (2) above.
	 
	 	     (4) Subject to any restrictions contained herein or in any
other Loan Document, each Pledgor shall be entitled to (a) collect
all regular payments made or proceeds received with respect to
Collateral constituting the Subsidiary Notes 

Company Pledge Agreement

7

 

or relating to any
other indebtedness pledged hereunder and (b) enforce and prosecute
all rights and remedies available under any of the Subsidiary Notes
or Subsidiary Security Agreements, or under the documents governing
or evidencing any other indebtedness pledged hereunder.

          (b)  Upon written notice from the Administrative Agent during the existence
of a Default, and for so long as the same shall be continuing, all rights and
powers which the Pledgors are entitled to exercise pursuant to Section 5(a)(1)
hereof, and all rights of the Pledgors to receive and retain dividends pursuant
to Section 5(a)(2) hereof, and all rights of the Pledgors to receive payments
pursuant to Section 5(a)(4) hereof, shall forthwith cease, and all such rights
and powers shall thereupon become vested in the Administrative Agent which
shall have, during the continuance of such Default, the sole and exclusive
authority to exercise such rights and powers and to receive such dividends and
payments. Any and all money and other property paid over to or received by the
Administrative Agent pursuant to this paragraph (b) shall be retained by the
Administrative Agent as additional Collateral hereunder and applied in
accordance with the provisions hereof.

          6.     Remedies. Whenever a Default shall exist and be continuing, the
Administrative Agent may exercise from time to time any rights and remedies
available to it under the Uniform Commercial Code as in effect in New York or
otherwise available to it. Without limiting the foregoing, whenever a Default
shall exist and be continuing the Administrative Agent (a) may, to the fullest
extent permitted by applicable law, without notice, advertisement, hearing or
process of law of any kind, (i) sell any or all of the Collateral, free of all
rights and claims of the Pledgors therein and thereto, at any public or private
sale or brokers’ board and (ii) bid for and purchase any or all of the
Collateral at any such public sale; (b) shall have the right, for and in the
name, place and stead of the Pledgors, to execute endorsements, assignments,
stock powers and other instruments of conversion, conveyance or transfer with
respect to all or any of the Collateral; and (c) may, with respect to the
Collateral consisting of the Subsidiary Notes or relating to any other
indebtedness pledged hereunder, declare the underlying loans immediately due,
payable and collectible without notice to any Pledgor, regardless of maturity,
and in that event the underlying loans and obligations shall become immediately
due, payable, and collectible; and thereupon the Administrative Agent may then
or at any time thereafter, in addition to the remedies of the Administrative
Agent and other Secured Parties set forth in the Amended and Restated Credit
Agreement, collect from any Pledgor any payments or collections theretofore
received by such Pledgor pursuant to Section 5 hereof, or sell, assign,
transfer and deliver the whole of the
Collateral or any part thereof, or additions thereto, or substitutions
therefor, in such order as the Administrative Agent may elect, at public or
private sale, at such price or prices, and upon such terms and conditions as
the Administrative Agent in its sole and absolute discretion may determine,
without demand, advertisement or notice of any kind. Each Pledgor hereby
expressly waives, to the fullest extent permitted by applicable law, any and
all notices, advertisements, hearings or process of law in connection with the
exercise by the Administrative Agent of any of its rights and remedies during
the continuance of a Default. If any notification of intended disposition of
any of the Collateral is required by law, such notification, if mailed, shall
be deemed reasonably and properly given if mailed by certified or registered
mail at least twenty (20) days before such disposition, postage prepaid,
addressed to the Company, either at the address of the Company shown below or
at any other address of the Company appearing on the records of the
Administrative Agent. Any proceeds of any of the Collateral may be applied by

Company Pledge Agreement

8

 

the Administrative Agent to the payment of expenses in connection with the
Collateral, including, without limitation, reasonable attorneys’ fees and legal
expenses, and any balance of such proceeds may be applied by the Administrative
Agent toward the payment of such of the Liabilities, and in such order of
application, as the Administrative Agent may from time to time elect (and,
after payment in full of all Liabilities, any excess shall be delivered to the
Company or as a court of competent jurisdiction shall direct).

          The Administrative Agent is hereby authorized to comply with any
limitation or restriction in connection with any sale of Collateral as it may
be advised by counsel is necessary in order to (x) avoid any violation of
applicable law (including, without limitation, compliance with such procedures
as may restrict the number of prospective bidders and purchasers and/or further
restrict such prospective bidders or purchasers to persons or entities who will
represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such
Collateral) or (y) obtain any required approval of the sale or of the purchase
by any governmental regulatory authority or official, and each Pledgor agrees
that such compliance shall not result in such sale being considered or deemed
not to have been made in a commercially reasonable manner and that the
Administrative Agent shall not be liable or accountable to any Pledgor for any
discount allowed by reason of the fact that such Collateral is sold in
compliance with any such limitation or restriction.

          7.     Termination or Release. This Agreement and the security interest
granted hereby shall terminate when all the Liabilities have been indefeasibly
paid in full and the Lenders have no further commitment to lend under the
Amended and Restated Credit Agreement. The Administrative Agent shall execute
and deliver to the Pledgor, at the Pledgor’s expense, all documents that the
Pledgor shall reasonably request to evidence such termination or release. Any
execution and delivery of documents pursuant to this Section 7 shall be without
recourse to or warranty by the Administrative Agent. If at any time all or any
part of any payment theretofore applied by the Administrative Agent or any
other Secured Party to any of the obligations under the Facilities is or must
be rescinded or returned by the Administrative Agent or such other Secured
Party for any reason whatsoever (including, without limitation, the insolvency,
bankruptcy or reorganization of any Pledgor), such obligations shall, for the
purposes of this Agreement, to the extent that such payment is or must be
rescinded or returned, be deemed to have continued in existence,
notwithstanding such application by the Administrative Agent or such other
Secured Party, and this Agreement shall continue to be
effective or be reinstated, as the case may be, as to such obligations,
all as though such application by the Administrative Agent or such other
Secured Party had not been made.

          8.      Address for Notices. All notices hereunder shall be in writing
(including facsimile transmission) and shall be sent to the applicable party at
its address or facsimile number set forth below its signature hereto or at such
other address or facsimile number as such party may, by written notice received
by the other parties hereto, have designated as its address for such purpose.
Notices sent by facsimile transmission shall be deemed to have been given when
sent; notices sent by mail shall be deemed to have been given three Business
Days after the date when sent by registered or certified mail, postage prepaid;
and notices sent by hand delivery shall have been deemed to have been given
when received.

Company Pledge Agreement

9

 

          9.     General. The Administrative Agent shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral if it takes
such action for that purpose as any Pledgor shall request in writing, but
failure of the Administrative Agent to comply with any such request shall not
of itself be deemed a failure to exercise reasonable care, and no failure of
the Administrative Agent to preserve or protect any rights with respect to the
Collateral against prior parties, or to do any act with respect to preservation
of the Collateral not so requested by any Pledgor, shall be deemed of itself a
failure to exercise reasonable care in the custody or preservation of any
Collateral.

          Each Pledgor agrees to indemnify, defend and save and hold harmless each
Secured Party and each of their Affiliates and their respective officers,
directors, employees, agents and advisors (each, an “Indemnified Party”) from
and against, and shall pay on demand, any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and
expenses of counsel) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or
resulting from this Agreement (including, without limitation, enforcement of
this Agreement), except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or
willful misconduct. Each of the Pledgors agrees to pay all reasonable expenses
(including reasonable fees and expenses of counsel) paid or incurred by the
Administrative Agent or any other Secured Party in endeavoring to collect the
obligations of such Pledgor, or any part thereof, and in enforcing this
Agreement against such Pledgor, and such obligations will themselves be
obligations hereunder.

          No delay on the part of the Administrative Agent in exercising any right,
power or remedy shall operate as a waiver thereof, and no single or partial
exercise of any such right, power or remedy shall preclude any other or further
exercise thereof, or the exercise of any other right, power or remedy. No
amendment, modification or waiver of, or consent with respect to, any provision
of this Agreement shall be effective unless the same shall be in writing and
signed and delivered by the Administrative Agent and each Pledgor, and then
such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

          All obligations of the Pledgors and all rights, powers and remedies of the
Administrative Agent and the other Secured Parties expressed herein are in
addition to all other rights, powers and remedies possessed by them, including,
without limitation, those provided by applicable law or in any other written
instrument or agreement relating to any of the Liabilities or any security
therefor.

          THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK. Wherever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

Company Pledge Agreement

10

 

          This Agreement shall be binding upon each Pledgor and the Administrative
Agent and their respective successors and assigns, and shall inure to the
benefit of each Pledgor and the Administrative Agent and the successors and
assigns of the Administrative Agent.

          This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute one and the same Agreement. Delivery of an executed counterpart of
a signature page to this Agreement by telecopier shall be effective as delivery
of an original executed counterpart of this Agreement. At any time after the
date of this Agreement, one or more additional persons or entities may become
parties hereto by executing and delivering to the Administrative Agent a
counterpart of this Agreement. Immediately upon such execution and delivery
(and without any further action), each such additional person or entity will
become a party to, and will be bound by all the terms of, this Agreement.

          ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH
PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. EACH PLEDGOR HEREBY IRREVOCABLY APPOINTS HOLLINGER INTERNATIONAL
INC, 712 FIFTH AVENUE, NEW YORK, NEW YORK, 10019, USA, (THE “PROCESS AGENT”),
ATTENTION: MARK KIPNIS, AS ITS AGENT TO RECEIVE, ON ITS BEHALF AND ON BEHALF OF
ITS PROPERTY, SERVICE OF COPIES OF THE SUMMONS AND COMPLAINT AND ANY OTHER
PROCESS WHICH MAY BE SERVED IN ANY SUCH LITIGATION,
SUCH SERVICE MAY BE MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS
TO EACH PLEDGOR IN CARE OF THE PROCESS AGENT AT THE PROCESS AGENT’S ABOVE
ADDRESS, AND EACH PLEDGOR HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE PROCESS
AGENT TO ACCEPT SUCH SERVICE ON ITS BEHALF. EACH PLEDGOR FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE
ADDRESS OF THE PERSON SPECIFIED IN, OR PURSUANT TO, THE AMENDED AND RESTATED
CREDIT AGREEMENT OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW
YORK. EACH PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. TO THE

Company Pledge Agreement

11

 

EXTENT THAT ANY PLEDGOR HAS OR HEREAFTER MAY
ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
(WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN
AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH
PLEDGOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

          EACH OF THE PLEDGOR, THE ADMINISTRATIVE AGENT AND, BY ACCEPTING THE
BENEFITS HEREOF, EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY
OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH
ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

          All payments to be made by any Pledgor to any person hereunder shall be
made free and clear of, and without deduction for or on account of, tax unless
such Pledgor is required by law to make such a payment subject to the deduction
or withholding of tax, in which case the sum payable by such Pledgor in respect
of which such deduction or withholding is required to be made shall be
increased to the extent necessary to ensure that, after the making of such
deduction or withholding, such person receives and retains (free from any
liability in respect of any such deduction or withholding) a net sum equal to
the sum which it would have received and so retained had no such deduction or
withholding been made or required to be made.

          The obligations of each Pledgor in respect of any sum due to the
Administrative Agent or any other Secured Party hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than
the currency in which such sum was originally denominated (the “Original
Currency”), be discharged only to the extent that following receipt by the
Administrative Agent or such other Secured Party of any sum adjudged to be so
due in the Judgment Currency, the Administrative Agent or such other Secured Party,
in accordance with normal banking procedures, purchases the Original Currency
with the Judgment Currency. If the amount of Original Currency so purchased is
less than the sum originally due to the Administrative Agent or such other
Secured Party, each Pledgor agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or
such other Secured Party, as the case may be, against such loss, and if the
amount of Original Currency so purchased exceeds the sum originally due to the
Administrative Agent or such other Secured Party, as the case may be, the
Administrative Agent or such other Secured Party agrees to remit such excess to
such Pledgor.

Company Pledge Agreement

12

 

          IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as
of the day and year first written above.

	 	 	 
	 	HOLLINGER
INTERNATIONAL PUBLISHING INC.
	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629

	 	 
	 	Attention:

Company Pledge Agreement

 

	 	 
	 
	 	ALLIANCE NEWS INC.

AMERICAN PUBLISHING (1991) INC.

AMERICAN PUBLISHING COMPANY

AMERICAN PUBLISHING COMPANY OF NEW YORK

APAC-90 OKLAHOMA HOLDINGS, INC.

APAC-95 OKLAHOMA HOLDINGS, INC.

APC 1993, INC.

APMS-93 INC.

CHICAGO GROUP ACQUISITION INC.

CHICAGO SUN-TIMES FEATURES, INC.

CHICAGO SUN-TIMES, INC.

DIGITAL CHICAGO INC.

FOX VALLEY PUBLICATIONS, INC.

HOLLINGER INTERNATIONAL PUBLISHING INC.

HOLLINGER NCI HOLDINGS, LLC

HTH BENHOLDCO LLC

HTH HOLDINGS INC.

LHAT CORPORATION

MIDWEST SUBURBAN PUBLISHING, INC.

PIONEER NEWSPAPERS INC.

REACH CHICAGO INC.

SUN TELEMARKETING INC.

SUN-TIMES DISTRIBUTION SYSTEMS, INC.

SUN-TIMES PRD INC.

TAHL (2002) INC.

TELEGRAPH AUSTRALIAN HOLDINGS LIMITED

THE JOHNSTOWN TRIBUNE PUBLISHING COMPANY

THE POST-TRIBUNE COMPANY

THE RED STREAK HOLDING COMPANY

THE SUN-TIMES COMPANY

VALLEY CABLE TV, INC
	 

	 	 	 
	 	By:	

	 	Name:
	 	Title:

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

Company Pledge Agreement

 

	 	 	 
	 	OKLAHOMA AIRPLANE LLC
	 
	 	By:  APAC-95 Oklahoma
Holdings, Inc., its Manager
	 
	 
	 
	 	By:	

	 	Name:
	 	Title:

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

	 	 	 
	 	CST MEMBER LLC
	 
	 	By:  Chicago Sun-Times, Inc., its Manager
	 
	 
	 
	 	By:	

	 	Name:
	 	Title:

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

Company Pledge Agreement

 

	 	 	 
	 	HGP, PARTNERSHIP
	 
	 	By:  Hollinger International Publishing Inc., general partner
	 
	 
	 
	 	By:	

	 	Name:
	 	Title:
	 
	 
	 	By:  The Johnstown Tribune Company, its general partner
	 
	 
	 	By:	

	 	Name:
	 	Title:

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

	 	 	 
	 	WACHOVIA BANK, N.A. as Administrative Agent
	 
	 
	 
	 	By:	

	 	Name:
	 	Title:

	 	 	 
	 	Address:	One Wachovia Center,

301 South College Street

Charlotte, NC 28288-0604
	 
	 	Facsimile No.:	(704) 374-4092
	 
	 	Attention:	Joe Mynatt

Company Pledge Agreement

 

SCHEDULE I

STOCK

PART A:

HOLLINGER INTERNATIONAL PUBLISHING
INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    Alliance News Inc.
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    American Publishing Company
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    HTH Holdings Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Reach Chicago Inc. (f/k/a Aditus (USA) Inc.)
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    The Sun-Times Company
    

    	 	 	A25	 	 	34,999.66
Class A Common Shares	 	 	100	%	 	 	34,999.66	 
	
    
    The Sun-Times Company
    

    	 	 	C6	 	 	80,873
Class C Common Shares	 	 	100	%	 	 	80,873	 
	
    
    The Sun-Times Company (Warrants)
    

    	 	 	W–	 	 	168,651
Class C Common Shares	 	 	 	 	 	 	 	 
	 	 	 	W–	 	 	109,226
Class C Common Shares	 	 	100	%	 	 	277,877	 
	
    
    Valley Cable TV, Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Sugra (Bermuda) Limited
    

    	 	 	2	 	 	 	12,000	 	 	 	100	%	 	 	12,000	 

 

PART B:

AMERICAN PUBLISHING COMPANY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    American Publishing (1991) Inc.
    

    	 	 	C3	 	 	 	10,000 Common Shares	 	 	 	100	%	 	 	10,000	 
	
    
    American Publishing (1991) Inc.
    

    	 	 	P3	 	 	31,700 First Series Preferred Shares	 	 	100	%	 	 	31,700	 
	
    
    American Publishing Holdings Inc.
    

    	 	 	4	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    APAC-95 Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    The Crowley Publishing Corporation
    

    	 	 	44	 	 	 	150	 	 	 	100	%	 	 	150	 
	
    
    The Crowley Publishing Corporation
    

    	 	 	13	 	 	 	1,650 Preferred Shares	 	 	 	100	%	 	 	1,650	 

AMERICAN PUBLISHING (1991) INC. (f/k/a
American Publishing Company)1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    American Publishing Company of New York (f/k/a
    APC New York Holdings, Inc.)
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    APAC-90 Oklahoma Holdings, Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    APAC-95 Oklahoma Holdings, Inc.
    

    	 	 	6	 	 	 	108	 	 	 	52	%	 	 	208	 
	
    
    APAC-95 Oklahoma Holdings, Inc.
    

    	 	 	7	 	 	 	100	 	 	 	48	%	 	 	208	 
	
    
    The Johnstown Tribune Publishing Company
    

    	 	 	—	 	 	 	10	 	 	 	100	%	 	 	10	 
	
    
    American Publishing Company of North Carolina
    

    	 	 	54	 	 	 	540	 	 	 	100	%	 	 	540	 
	
    
    American Publishing Company of Ohio (f/k/a Eden
    Publishing Company)
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    American Publishing Company of Pennsylvania
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    American Publishing Management Services, Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 

1until
August 30, 1991

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    APAC-90 Inc.
    

    	 	 	P5	 	 	 	10,000
First Preferred Shares	 	 	 	100	%	 	 	100	 
	
    
    APC Missouri Holdings, Inc. (f/k/a Rolla
    Publishing Company)
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Meridian Star, Inc.
    

    	 	 	77	 	 	 	181	 	 	 	100	%	 	 	181	 
	
    
    The Statesman-Examiner, Inc.
    

    	 	 	30	 	 	 	175	 	 	 	100	%	 	 	175	 
	
    
    United Media Group Inc.
    

    	 	 	45	 	 	 	313	 	 	 	100	%	 	 	313	 
	
    
    New Times Publishing, Inc.
    

    	 	 	94	 	 	 	100	 	 	 	100	%	 	 	100	 

THE SUN-TIMES COMPANY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    APC 1993, Inc.
    

    	 	 	3	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Chicago Group Acquisition Inc.
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Chicago Sun-Times, Inc.
    

    	 	 	1A	 	 	 	1,000	 	 	 	100	%	 	 	1,000	 
	
    
    Chicago Sun-Times Features, Inc.
    

    	 	 	1	 	 	 	1,000	 	 	 	100	%	 	 	1,000	 
	
    
    Digital Chicago Inc.
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Fox Valley Publications, Inc. (f/k/a American
    Publishing Company of Arkansas
    

    	 	 	4	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    LHAT Corporation
    

    	 	 	1	 	 	 	1	 	 	 	1	%	 	 	100	 
	
    
    LHAT Corporation
    

    	 	 	2	 	 	 	99	 	 	 	99	%	 	 	100	 
	
    
    The Post-Tribune Company (f/k/a American
    Publishing Company of Illinois, f/k/a Olney Publishing Company)
    

    	 	 	2	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Sun Telemarketing Inc.
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Sun-Times Distribution Systems, Inc.
    

    	 	 	1	 	 	 	8,000	 	 	 	80	%	 	 	10,000	 
	
    
    Sun-Times PRD Inc.
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 

 

APC 1993, INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    APMS-93 Inc.
    

    	 	 	3	 	 	 	100	 	 	 	100	%	 	 	100	 

CHICAGO SUN-TIMES, INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    The Red Streak Holdings Company
    

    	 	 	1	 	 	 	100	 	 	 	100	%	 	 	100	 

LHAT CORPORATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer		Cert #		No. of Shares		%		Total Outstanding
	
		
		
		
		

	
    
    Midwest Suburban Publishing, Inc. (f/k/a/ Daily
    Southtown Inc.)
    

    	 	 	3	 	 	 	100	 	 	 	100	%	 	 	100	 
	
    
    Pioneer Newspapers Inc.
    

    	 	 	2	 	 	 	1000	 	 	 	100	%	 	 	1000	 
	
    
    Telegraph Australian Holdings Limited
    

    	 	 	8	 	 	 	103	 	 	 	100	%	 	 	103	 
	
    
    TAHL (2002) Inc.
    

    	 	 	1	 	 	 	1	 	 	 	100	%	 	 	1	 

Company Pledge Agreement

 

SCHEDULE II

TO FOURTH AMENDED AND RESTATED COMPANY PLEDGE
AGREEMENT

Debt owing from HIPI or any Restricted
Subsidiary Obligor to HIPI or any U.S. Restricted Subsidiary
Obligor

USD unless otherwise stated

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor (A/P)		Creditor (A/R)		Amount		Currency		US$
	
		
		
		
		

	
    
    Alliance News Inc. 

    	 	
    Chicago Sun-Times, Inc.
    	 	 	82,132.00	 	 	 	USD	 	 	 	 	 
	
    
    American Publishing Company
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	2,600,000.00	 	 	 	USD	 	 	 	 	 
	
    
    American Publishing Company
    

    	 	
    Chicago Sun-Times, Inc.
    	 	 	969.00	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Fox Valley Publications, Inc.
    	 	 	1,642,532.00	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Hollinger International Publishing Inc.
    	 	 	58,314,581.86	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Midwest Suburban Publishing, Inc.
    	 	 	30,497,699.00	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Pioneer Newspapers Inc.
    	 	 	30,926,244.00	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Post-Tribune Company, The
    	 	 	1,275,155.00	 	 	 	USD	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	11,847,481.00	 	 	 	USD	 	 	 	 	 
	
    
    DT Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	7,924,378.73	 	 	 	USD	 	 	 	 	 
	
    
    DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	700,035.88	 	 	 	GBP	 	 	 	1,088,770.84	 
	
    
    First DT Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	193,389,905.84	 	 	 	GBP	 	 	 	300,780,711.26	 
	
    
    First DT Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	4,506,304.13	 	 	 	USD	 	 	 	 	 
	
    
    First DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	17,528,506.00	 	 	 	GBP	 	 	 	27,262,211.43	 
	
    
    First DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	4,647,990.00	 	 	 	GBP	 	 	 	7,229,052.27	 
	
    
    First DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	701,566.00	 	 	 	GBP	 	 	 	1,091,150.64	 
	
    
    First DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	108,220.00	 	 	 	GBP	 	 	 	168,315.34	 
	
    
    First DT Holdings Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	13,018,378.64	 	 	 	GBP	 	 	 	20,247,577.92	 
	
    
    Fox Valley Publications, Inc. 

    	 	
    Hollinger International Publishing Inc.
    	 	 	106,578,325.54	 	 	 	USD	 	 	 	 	 
	
    
    Fox Valley Publications, Inc. 

    	 	
    Midwest Suburban Publishing, Inc.
    	 	 	1,421,531.00	 	 	 	USD	 	 	 	 	 
	
    
    Fox Valley Publications, Inc. 

    	 	
    Pioneer Newspapers Inc.
    	 	 	85,542.00	 	 	 	USD	 	 	 	 	 
	
    
    Fox Valley Publications, Inc. 

    	 	
    Post-Tribune Company, The
    	 	 	19,645.00	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    American Publishing Company
    	 	 	504,008,500.93	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Post-Tribune Company, The
    	 	 	1,656,420.04	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	175,861,261.00	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	134,635,314.71	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	62,301,580.27	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	38,782,476.00	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	23,813,848.24	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    Telegraph Australian Holdings Limited
    	 	 	20,017,740.11	 	 	 	GBP	 	 	 	31,133,735.14	 
	
    
    Hollinger International Publishing
    Inc. 

    	 	
    HGP, Partnership
    	 	 	185,130,000.00	 	 	 	USD	 	 	 	 	 
	
    
    Hollinger UK Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	512,543.45	 	 	 	GBP	 	 	 	797,162.51	 
	
    
    Johnstown Tribune Publishing 
Company, The
    

    	 	
    HGP, Partnership
    	 	 	1,870,000.00	 	 	 	USD	 	 	 	 	 
	
    
    Midwest Suburban Publishing, Inc. 

    	 	
    Alliance News Inc.
    	 	 	13,873.00	 	 	 	USD	 	 	 	 	 
	
    
    Midwest Suburban Publishing, Inc. 

    	 	
    American Publishing Company
    	 	 	2,500,000.00	 	 	 	USD	 	 	 	 	 
	
    
    Midwest Suburban Publishing, Inc. 

    	 	
    Hollinger International Publishing Inc.
    	 	 	4,725,257.17	 	 	 	USD	 	 	 	 	 
	
    
    Pioneer Newspapers Inc. 

    	 	
    Hollinger International Publishing Inc.
    	 	 	6,410,668.27	 	 	 	USD	 	 	 	 	 
	
    
    Pioneer Newspapers Inc. 

    	 	
    Midwest Suburban Publishing, Inc.
    	 	 	23,201.00	 	 	 	USD	 	 	 	 	 
	
    
    Post-Tribune Company, The
    

    	 	
    American Publishing (1991) Inc.
    	 	 	17,391,000.00	 	 	 	USD	 	 	 	 	 
	
    
    Post-Tribune Company, The
    

    	 	
    American Publishing Company
    	 	 	36,405,025.00	 	 	 	USD	 	 	 	 	 
	
    
    Post-Tribune Company, The
    

    	 	
    Midwest Suburban Publishing, Inc.
    	 	 	90,676.00	 	 	 	USD	 	 	 	 	 
	
    
    Post-Tribune Company, The
    

    	 	
    Pioneer Newspapers Inc.
    	 	 	8,000.00	 	 	 	USD	 	 	 	 	 
	
    
    Second DT Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	6,714.89	 	 	 	USD	 	 	 	 	 
	
    
    Telegraph Australian Holdings Limited
    

    	 	
    Hollinger International Publishing Inc.
    	 	 	3,947,825.38	 	 	 	USD	 	 	 	 	 
	
    
    Telegraph Group Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	4,842,094.33	 	 	 	GBP	 	 	 	7,530,944.13	 
	
    
    Telegraph Group Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	19,982,618.29	 	 	 	GBP	 	 	 	31,079,109.93	 
	
    
    Telegraph Group Limited
    

    	 	
    Telegraph Australian Holdings Limited
    	 	 	6,260,347.39	 	 	 	GBP	 	 	 	9,736,763.32	 

Company Pledge Agreement

 

SCHEDULE III

TO FOURTH AMENDED AND RESTATED COMPANY PLEDGE
AGREEMENT

ENTITY INTERESTS

Hollinger International Publishing
Inc.

	 	 	 
	Issuer		Description of Entity Interest
	
		

	
    
    HGP, Partnership
    

    	 	
    99% general partnership interest/Uncertificated
    
	
    
    HTH Benholdco LLC
    

    	 	
    100% general partnership interest/Uncertificated
    
	
    
    Hollinger NCI Holdings, LLC
    

    	 	
    100% membership interest/Uncertificated
    

APAC-95 Oklahoma Holdings, Inc.

	 	 	 
	Issuer		Description of Entity Interest
	
		

	
    
    Oklahoma Airplane LLC
    

    	 	
    100% Membership Interest/Uncertificated
    

The Johnstown Tribune Publishing
Company

	 	 	 
	Issuer		Description of Entity Interest
	
		

	
    
    HGP, Partnership
    

    	 	
    1% general partnership interest/Uncertificated
    

Chicago Sun-Times, Inc.

	 	 	 
	Issuer		Description of Entity Interest
	
		

	
    
    CST Member LLC
    

    	 	
    100% Membership Interest/Uncertificated
    

 

CST Member LLC

	 	 	 
	Issuer		Description of Entity Interest
	
		

	
    
    401 North Wabash Ventures LLC
    

    	 	
    50% Membership Interest (Subject to restructure
    in 401 North Wabash Venture LLC Organic
    Documents/Uncertificated)exv10w24

 

Exhibit 10.24

EXECUTION COPY

Form of Fourth Amended and Restated Hollinger International Guaranty

in favor of Wachovia Bank, N.A., Toronto Dominion Bank and the Lenders

dated as of December 23, 2002

FOURTH AMENDED AND RESTATED

HOLLINGER INTERNATIONAL GUARANTY

          THIS FOURTH AMENDED AND RESTATED GUARANTY (this “Guaranty”) dated as of
December 23, 2002, is made by HOLLINGER INTERNATIONAL INC., a Delaware
corporation (“Hollinger International”), in favor of the Secured Parties and
the Administrative Agent (as defined below).

W I T N E S S E T H:

          WHEREAS, Hollinger International Publishing Inc. (the “Company”),
Telegraph Group Limited (“Telegraph”), certain other borrowers, The
Toronto-Dominion Bank, as issuing bank and Toronto Dominion (Texas) Inc., as
administrative agent entered into that certain Fourth Amended and Restated
Credit Agreement, dated as of April 30, 1999 (as amended or modified and in
effect on the Amendment Effective Date, the “Existing Credit Agreement”),
whereunder certain financial institutions agreed to make loans and to issue
letters of credit and bankers’ acceptances (such loans, letters of credit and
bankers’ acceptances outstanding on the Amendment Effective Date, collectively
the “Existing Credit Extensions”); and

          WHEREAS, Hollinger International executed and delivered that certain Third
Amended and Restated Hollinger International Guaranty, dated as of April 30,
1999 (as amended or modified and in effect on the Amendment Effective Date, the
“Original Guaranty”), guarantying the obligations of the Company, Telegraph and
the other borrowers under the Existing Credit Agreement; and

     WHEREAS, the Company desires to refinance the Existing Credit Extensions,
add additional borrowers thereunder and obtain a revolving loan commitment (to
include availability for revolving loans and the issuance of letters of credit)
and term loans; and

          WHEREAS, the Company has requested various financial institutions
(together with their respective successors and assigns, collectively the
“Lenders” and each individually a “Lender”) to amend and restate the Existing
Credit Agreement on the terms and conditions set forth in the Fifth Amended and
Restated Credit Agreement, dated as of even date herewith (together with all
amendments and other modifications, if any, from time to time made thereto, the
“Amended and Restated Credit Agreement”), among the Company, Telegraph and
First DT Holdings Limited (“FDTH” and, together with the Company, Telegraph and
each Incremental Borrower, each a “Borrower” and collectively, the
“Borrowers”), the Lenders, Wachovia Bank, N.A., as administrative agent (in
such capacity the “Administrative Agent”), issuing bank and security trustee
for the Lenders, Wachovia Securities, Inc., as sole lead arranger and book
runner, Toronto Dominion (Texas), Inc., as Syndication Agent, and General
Electric Capital Corporation, as Documentation Agent to set forth, among other
things, the terms and conditions under which the Lenders thereafter will make
credit extensions to the Borrowers; it being the intention of the Company, the
Lenders and the Administrative Agent that the Amended and Restated Credit
Agreement and the Loan Documents executed in connection therewith shall not

Hollinger International Guaranty

 

 

effect the novation of the obligations of the Borrowers under the Existing
Credit Agreement but be merely a restatement and, where applicable, an
amendment of and substitution for the terms governing such obligations
hereafter; and

          WHEREAS, as a condition precedent to the Amendment Effective Date of the
Amended and Restated Credit Agreement, Hollinger International is required to
execute and deliver this Guaranty; and

          WHEREAS, the parties hereto desire to amend and restate the Original
Guaranty to recognize the addition of new Borrowers, it being the intention of
the Borrowers, Hollinger International, the Lenders and the Administrative
Agent that this Guaranty and the Loan Documents executed in connection herewith
shall not effect a novation of the obligations of Hollinger International under
the Original Guaranty but merely a restatement and, where applicable, an
amendment of and substitution for the terms governing such obligations
hereafter; and

          WHEREAS, Hollinger International has duly authorized the execution,
delivery and performance of this Guaranty; and

          WHEREAS, it is in the best interests of Hollinger International to execute
this Guaranty inasmuch as Hollinger International will derive substantial
direct and indirect benefits from the Loans made from time to time to the
Borrowers and the Letters of Credit issued from time to time for the account of
the Company and Telegraph pursuant to the Amended and Restated Credit
Agreement;

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the
Lenders to make the Loans and issue or participate in Letters of Credit
(including the initial Credit Extensions) to the Borrowers pursuant to the
Amended and Restated Credit Agreement, Hollinger International agrees, for the
benefit of the Secured Parties, as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.1 Certain Terms. The following terms (whether or not
underscored) when used in this Guaranty, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to
the singular and plural forms thereof):

          Administrative Agent is defined in the fourth recital.

          Amended and Restated Credit Agreement is defined in the fourth recital.

          Borrowers is defined in the fourth recital.

          Company is defined in the first recital.

Hollinger International Guaranty

2

 

          Guaranteed Obligations is defined in Section 2.1 hereof.

          Guaranteed Obligor means each of the Borrowers, and each guarantor under
each of the U.S. Subsidiary Guaranty and the U.K. Subsidiary Guaranty.

          Guaranty is defined in the preamble.

          Hedging Agreements means all agreements that are defined to be “Hedging
Agreements” in the Amended and Restated Credit Agreement that are entered into
between any Borrower and a Qualified Hedge Counterparty.

          Hollinger International is defined in the preamble.

          Lender is defined in the fourth recital.

          Loan Documents means those agreements and other documents defined as “Loan
Documents” in the Amended and Restated Credit Agreement and, in addition, all
Hedging Agreements.

          Material Adverse Effect means a material adverse effect on (a) the
condition (financial or otherwise), operations, business, properties, assets or
prospects of Hollinger International and its Subsidiaries taken as a whole or
(b) the ability of Hollinger International to timely and fully perform any of
its payment or other material obligations under this Guaranty or any other Loan
Document to which it is a party.

          Qualified Hedge Counterparty means Wachovia Bank, N.A. and each other
Person who, on the date the applicable Hedging Agreement is entered into, is a
Lender or an affiliate of a Lender.

          Secured Parties means the Lenders, the Issuing Bank, the Administrative
Agent and each Qualified Hedge Counterparty.

          Telegraph is defined in the first recital.

          SECTION 1.2 Amended and Restated Credit Agreement Definitions. Unless
otherwise defined herein or the context otherwise requires, capitalized terms
used in this Guaranty, including its preamble and recitals, have the meanings
provided in the Amended and Restated Credit Agreement.

ARTICLE II

GUARANTY PROVISIONS

          SECTION 2.1 Guaranty. (a) Hollinger International hereby absolutely,
unconditionally and irrevocably as primary obligor and not merely as surety,
guarantees the full and prompt payment when due, whether by acceleration or
otherwise, and at all times thereafter, of all

Hollinger International Guaranty

3

 

obligations (monetary or otherwise) of the
Guaranteed Obligors to each of the Lenders, the Issuing Bank, the
Administrative Agent and each Qualified Hedge Counterparty, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now
or hereafter existing, or due or to become due, which arise out of or in
connection with the Amended and Restated Credit Agreement, any Letter of Credit
or Letter of Credit Application, any Hedging Agreement or any other Loan
Document, in each case as the same may be amended, modified, extended or
renewed from time to time (all such obligations being herein collectively
called the “Guaranteed Obligations”), and agrees to pay any and all reasonable
expenses (including, without limitation, reasonable fees and expenses of
counsel) incurred by the Administrative Agent or any other Secured Party in
enforcing any rights under this Guaranty or any other Loan Document. Without
limiting the generality of the foregoing, Hollinger International’s liability
shall extend to all amounts that constitute part of the Guaranteed Obligations
and would be owed by any Guaranteed Obligor to any Secured Party under or in
respect of the Loan Documents but for the fact that they are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such Guaranteed Obligor.

          (b)  Hollinger International, and by its acceptance of this Guaranty, the
Administrative Agent and each other Secured Party hereby confirms that it is
the intention of all such Persons that this Guaranty and the Obligations of
Hollinger International hereunder not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law (as hereinafter defined), the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
foreign, federal or state law to the extent applicable to this Guaranty and the
Obligations of Hollinger International hereunder. To effectuate the foregoing
intention, the Administrative Agent, the other Secured Parties and the
Guarantors hereby irrevocably agree that the Obligations of Hollinger
International under this Guaranty at any time shall be limited to the maximum
amount as will result in the Obligations of Hollinger International under this
Guaranty not constituting a fraudulent transfer or conveyance. For purposes
hereof, “Bankruptcy Law” means any proceeding of the type referred to in
Section 12.1.4 of the Credit Agreement or Title 11, U.S. Code or any similar
foreign, federal or state law for the relief of debtors.

          (c)  Hollinger International hereby unconditionally and irrevocably agrees
that in the event any payment shall be required to be made to any Secured Party
under this Guaranty or any other guaranty, Hollinger International will
contribute, to the maximum extent permitted by law, such amounts to each other
Guarantor and each other guarantor so as to maximize the aggregate amount paid
to the Secured Parties under or in respect of the Loan Documents.

          (d)  This Guaranty constitutes a guaranty by Hollinger International of
payment when due and not of collection, and Hollinger International
specifically agrees that it shall not be necessary or required that the
Administrative Agent or any other Secured Party exercise any right, assert any
claim or demand or enforce any remedy whatsoever against any Guaranteed Obligor
(or any other Person) before or as a condition to the obligations of Hollinger
International hereunder.

          SECTION 2.2 Acceleration of Guaranty. Hollinger International agrees
that, in the event of any Event of Default under Section 12.1.4 of the Amended
and Restated Credit Agreement, and if such event shall occur at a time when any
of the Guaranteed Obligations are not then due and payable, Hollinger International shall pay to the
Administrative Agent for the

Hollinger International Guaranty

4

 

account of the Administrative Agent and the other
Secured Parties forthwith the full amount which would be payable hereunder by
Hollinger International if all Guaranteed Obligations were then due and
payable.

          SECTION 2.3 Guaranty Absolute, etc. This Guaranty shall in all respects
be a continuing, absolute, unconditional and irrevocable guaranty of payment by
Hollinger International, and shall remain in full force and effect until all
Guaranteed Obligations have been paid in full, finally and indefeasibly, all
obligations of Hollinger International hereunder shall have been paid in full,
finally and indefeasibly, and the commitments under the Facilities, all Letters
of Credit, all Hedging Agreements and any other commitments by the Lenders or
the Administrative Agent or any other Secured Party to the Guaranteed Obligors
shall have terminated (even if the Letters of Credit shall have been cash
collateralized). Hollinger International guarantees that the Guaranteed
Obligations shall be paid strictly in accordance with the terms of the Amended
and Restated Credit Agreement and each other Loan Document under which they
arise, regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of such terms or the rights of the
Administrative Agent or any other Secured Party with respect thereto. The
creation or existence from time to time of additional Guaranteed Obligations to
the Administrative Agent or the other Secured Parties or any of them is hereby
authorized, without notice to Hollinger International, and shall in no way
impair the rights of the Administrative Agent or the other Secured Parties or
the obligations of Hollinger International under this Guaranty, including
Hollinger International’s guaranty of such additional Guaranteed Obligations.
The liability of Hollinger International under this Guaranty shall be absolute,
unconditional and irrevocable irrespective of:

		
	 	     (a) any lack of validity, legality or enforceability of the Amended
and Restated Credit Agreement or any other Loan Document;

		
	 	     (b) the failure of the Administrative Agent or any other Secured
Party

		
	 	     (i) to assert any claim or demand or to enforce any right or
remedy against any of the Guaranteed Obligors or any other Person
(including any other guarantor) under the provisions of the Amended
and Restated Credit Agreement, any other Loan Document or
otherwise, or to join any other Person in any action against any of
the Guaranteed Obligors or any other Person, or
	 
	 	     (ii) to exercise any right or remedy against any other
guarantor of, or collateral securing, any Guaranteed Obligations;

		
	 	     (c) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations, or any other
extension, compromise or renewal of any Guaranteed Obligation;

		
	 	     (d) any reduction, limitation, impairment or termination of any
Guaranteed Obligations for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to
(and Hollinger International hereby waives any right to or claim of) any
defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality, nongenuineness,
irregularity,

Hollinger International Guaranty

5

 

		
	 	compromise, unenforceability of, or any other event or
occurrence affecting, any Guaranteed Obligations;

		
	 	     (e) any amendment to, rescission, waiver, or other modification of,
or any consent to departure from, any of the terms of the Amended and
Restated Credit Agreement or any other Loan Document;

		
	 	     (f) (i) any addition, exchange, release, surrender or non-perfection
of any collateral or (ii) any amendment to or waiver or release or
addition of, or consent to departure from, any other guaranty held by the
Administrative Agent or any other Secured Party, securing or supporting
any of the Guaranteed Obligations;
	 
	 	     (g) any manner of application of Collateral or any other collateral,
or proceeds thereof, to all or any of the Guaranteed Obligations, or any
manner of sale or other disposition of any Collateral or any other
collateral for all or any of the Guaranteed Obligations or any other
Obligations of any Guaranteed Obligor under the Loan Documents or any
other assets of any Guaranteed Obligor or any of its Subsidiaries;
	 
	 	     (h) any failure of any Secured Party to disclose to any Guaranteed
Obligor any information relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any other
Guaranteed Obligor now or hereafter known to such Secured Party
(Hollinger International waives any duty on the part of the Secured
Parties to disclose such information);
	 
	 	     (i) any change, restructuring or termination of the corporate
structure or existence of any Guaranteed Obligor or any of its
Subsidiaries;
	 
	 	     (j) the failure of any other Person to execute or deliver this
Guaranty or any other guaranty or agreement, or the release or reduction
of liability of any Guarantor or any other guarantor or surety with
respect to the Guaranteed Obligations; or
	 
	 	     (k) any other circumstance (including, without limitation, any
statute of limitations) which might otherwise constitute a defense
available to, or a legal or equitable discharge of, Hollinger
International, any Borrower, any other Guaranteed Obligor, any other
surety or any other guarantor.

          SECTION
2.4 Reinstatement, etc. Hollinger International agrees that this
Guaranty shall continue to be effective or be reinstated, as the case may be,
if at any time any payment (in whole or in part) of any of the Guaranteed
Obligations is rescinded or must otherwise be restored by the Administrative
Agent or any other Secured Party, upon the insolvency, bankruptcy or
reorganization of any Guaranteed Obligor, any other Person or otherwise, as
though such payment had not been made.

          SECTION 2.5 Waiver, etc. Hollinger International hereby waives
promptness, diligence, notice of acceptance and any other notice with respect
to any of the Guaranteed Obligations and this Guaranty and any requirement that
the Administrative Agent or any other
Secured Party protect, secure, perfect or insure any security interest or
Lien, or any property

Hollinger International Guaranty

6

 

subject thereto, or exhaust any right or take any action
against any Guaranteed Obligor or any other Person (including any other
guarantor) or entity or any collateral securing any Guaranteed Obligations.

          SECTION 2.6 Waiver of Subrogation and Contribution. (a) Until the
Guaranteed Obligations have been paid in cash indefeasibly in full, Hollinger
International hereby irrevocably waives any claim or other rights which it may
now or hereafter acquire against the Guaranteed Obligors or any other Person
that arise from the existence, payment, performance or enforcement of Hollinger
International’s obligations under this Guaranty or any other Loan Document,
including any right of subrogation, reimbursement, contribution, exoneration,
or indemnification, any right to participate in any claim or remedy of the
Administrative Agent or any other Secured Party against the Guaranteed Obligors
or any other Person or any collateral which the Administrative Agent or any
other Secured Party now has or hereafter acquires, whether or not such claim,
remedy or right arises in equity, or under contract, statute or common law,
including the right to take or receive from the Guaranteed Obligors or any
other Person, directly or indirectly, in cash or other property or by setoff or
in any manner, payment or security on account of such claim or other rights.
If any amount shall be paid to Hollinger International in violation of the
preceding sentence and the Guaranteed Obligations shall not have been paid in
cash indefeasibly in full and the commitments under the Facilities, all Letters
of Credit, all Hedging Agreements and any other commitments by Lenders or the
Administrative Agent or any other Secured Party to the Guaranteed Obligors
shall not have been terminated, such amount shall be deemed to have been paid
to Hollinger International for the benefit of, and held in trust for, the
Administrative Agent and the other Secured Parties, and shall forthwith be paid
to the Administrative Agent to be credited and applied upon the Guaranteed
Obligations, whether matured or unmatured.

          (b)  Hollinger International hereby unconditionally and irrevocably waives
any right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether
existing now or in the future.

          (c)  Hollinger International hereby unconditionally and irrevocably waives
(i) any defense arising by reason of any claim or defense based upon an
election of remedies by any Secured Party that in any manner impairs, reduces,
releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights or other rights to proceed
against any of the other Guaranteed Obligors, any other guarantor or any other
Person or any Collateral and (ii) any defense based on any right of setoff or
counterclaim against or in respect of the Obligations.

          (d)  Hollinger International acknowledges that the Administrative Agent
may, without notice to or demand upon and without affecting the liability under
this Guaranty, foreclose with respect to any Collateral by nonjudicial sale,
and Hollinger International hereby waives any defense to the recovery by the
Administrative Agent and the other Secured Parties of any deficiency after such
nonjudicial sale.

          (e)  Hollinger International hereby unconditionally and irrevocably waives
any duty on the part of any Secured Party to disclose to Hollinger
International any matter, fact or thing
relating to the business, condition (financial or otherwise), operations,
performance, properties or

Hollinger International Guaranty

7

 

prospects of any other Guaranteed Obligor or any of
its Subsidiaries now or hereafter known by such Secured Party.

          (f)  Hollinger International acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by the Amended
and Restated Credit Agreement and that the waivers set forth herein are
knowingly made in contemplation of such benefits.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     To induce the Administrative Agent and the Lenders to enter into the
Amended and Restated Credit Agreement and to induce the Lenders to make Loans
and issue or participate in Letters of Credit thereunder, Hollinger
International represents and warrants with respect to itself to the
Administrative Agent and the other Secured Parties that:

          SECTION
3.1 Organization, etc.  Hollinger International is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; is duly qualified to do business in each jurisdiction where the
nature of its business makes such qualification necessary, except where the
failure to be so qualified would not have a Material Adverse Effect; and has
full corporate power and authority to own its property and conduct its business
as presently conducted by it.

          SECTION
3.2 Authorization; No Conflict.  The execution and delivery by
Hollinger International of this Guaranty and each other Loan Document to which
it is intended to be a party, and the performance by Hollinger International of
its obligations under each Loan Document to which it is intended to be a party
are within the corporate powers of Hollinger International, have been duly
authorized by all necessary corporate action on the part of Hollinger
International (including any necessary shareholder action), have received all
necessary governmental approval (if any shall be required), and do not and will
not (a) violate any provision of law or any order, decree or judgment of any
court or other government agency which is binding on Hollinger International,
(b) contravene or conflict with, or result in a breach of, any provision of the
Certificate of Incorporation, By-Laws or other organizational documents of
Hollinger International or of any agreement, indenture, instrument or other
document, or any judgment, order or decree, which is binding on Hollinger
International or (c) result in, or require, the creation or imposition of any
Lien on any property of Hollinger International (other than pursuant to the
Loan Documents).

          SECTION
3.3 Validity and Binding Nature.  This Guaranty is, and upon the
execution and delivery thereof each other Loan Document to which Hollinger
International is intended to be a party will be, the legal, valid and binding
obligation of Hollinger International, enforceable against Hollinger
International in accordance with its terms, except that enforceability may be
limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer,
reorganization,
moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally

Hollinger International Guaranty

8

 

and by general principles of equity (regardless of
whether enforcement is sought in equity or at law).

          SECTION 3.4 Independent Credit Decision. Hollinger International has,
independently and without reliance upon the Administrative Agent or any other
Secured Party and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Guaranty and each other Loan Document to which it is or is to be a party, and
has established adequate means of obtaining from each Guaranteed Obligor on a
continuing basis information pertaining to, and is now and on a continuing
basis will be completely familiar with, the business, condition (financial or
otherwise), operations, performance, properties and prospects of such
Guaranteed Obligor.

          SECTION 3.5 Financial Information. The audited consolidated financial
statements of Hollinger International and its Subsidiaries as of December 31,
2001 and for the two years then ended, and the unaudited consolidated financial
statements of Hollinger International and its Subsidiaries as at September 30,
2002, copies of which have been delivered to the Administrative Agent, in each
case (a) are true and correct in all material respects, (b) have been prepared
in accordance with generally accepted accounting principles consistently
applied throughout the periods involved (except as disclosed therein and, in
the case of the interim financial statements, the absence of footnotes) and (c)
present fairly in all material respects the consolidated financial condition of
Hollinger International and its Subsidiaries at such dates and the results of
their operations for the periods then ended.

          SECTION 3.6 No Material Adverse Change. Except as disclosed on Schedule
9.5 to the Amended and Restated Credit Agreement, from December 31, 2001 to the
Amendment Effective Date, no event or events have occurred which, individually
or in the aggregate, have had or are reasonably likely to have a Material
Adverse Effect.

          SECTION 3.7 Litigation and Contingent Obligations. As of the Amendment
Effective Date, no litigation (including, without limitation, derivative
actions), arbitration proceeding or governmental proceeding is pending or, to
Hollinger International’s knowledge, threatened against Hollinger International
or any of its Subsidiaries which, if adversely determined, might have a
Material Adverse Effect [, except as set forth in Schedule 3.6 hereto]. Other
than any liability incident to such litigation or proceedings, as of the
Amendment Effective Date, neither Hollinger International nor any of its
Subsidiaries has any material contingent obligations not provided for or
disclosed in the financial statements referred to in clause (a) of Section 3.5
[or listed in Schedule 3.6 hereto].

          SECTION 3.8 Investment Company Act. Neither Hollinger International nor
any of its Subsidiaries is an “investment company” or a company “controlled” by
an “investment company,” within the meaning of the Investment Company Act of
1940, as amended.

          SECTION 3.9 Public Utility Holding Company Act. Neither Hollinger
International nor any of its Subsidiaries is a “holding company,” or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company,” within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

Hollinger International Guaranty

9

 

          SECTION
3.10 Solvency, etc. On the Amendment Effective Date and
immediately prior to and after giving effect to each borrowing under the
Amended and Restated Credit Agreement and the use of the proceeds thereof, (a)
Hollinger International’s assets will exceed its liabilities and (b) Hollinger
International will be solvent, will be able to pay its debts as they mature,
will own property with fair saleable value greater than the amount required to
pay its debts and will have capital sufficient to carry on its business as then
constituted.

          SECTION 3.11 Information. All written information heretofore or
contemporaneously herewith furnished by Hollinger International to the
Administrative Agent or any other Secured Party for purposes of or in
connection with the Amended and Restated Credit Agreement and this Guaranty and
the transactions contemplated thereby and hereby is, and all written
information hereafter furnished by or on behalf of Hollinger International to
any other Secured Party or the Administrative Agent pursuant hereto or thereto
or in connection herewith or therewith will be, true and accurate in every
material respect on the date as of which such information is dated or
certified, and none of such information is or will be incomplete by omitting to
state any material fact necessary to make such information not misleading.

          SECTION 3.12 Conditions Precedent. There are no conditions precedent to
the effectiveness of this Guaranty that have not been satisfied or waived.

ARTICLE IV

COVENANTS

     So long as this Guaranty is in effect Hollinger International agrees that,
unless at any time the Required Lenders shall otherwise expressly consent in
writing, it will:

          SECTION 4.1 Reports, Certificates and Other Information. Furnish to each
Lender:

          Section 4.1.1. Annual Report. Promptly when available and in any event
within 90 days after the close of each Fiscal Year, a copy of the annual report
of Hollinger International and its Subsidiaries for such Fiscal Year, including
therein consolidated balance sheets of Hollinger International and its
Subsidiaries as of the end of such Fiscal Year and consolidated statements of
earnings and cash flow of Hollinger International and its Subsidiaries for such
Fiscal Year, which report (i) shall be certified by independent auditors of
recognized national standing selected by Hollinger International and reasonably
acceptable to the Required Lenders, in an audit report which shall be without
qualification as to going concern or scope and (ii) shall be accompanied by a
written statement from such auditors to the effect that in making the
examination necessary for the signing of such audit report they have not become
aware of any Event of Default or Unmatured Event of Default that has occurred
and is continuing or, if they have become aware of any such event, describing
it in reasonable detail.

          Section 4.1.2. Quarterly Reports. Promptly when available and in any
event within 45 days after the end of each Fiscal Quarter of each Fiscal Year,
consolidated balance sheets of Hollinger International and its Subsidiaries as
of the end of such calendar month and

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10

 

consolidated statements of earnings and consolidated statements of cash
flow for such Fiscal Quarter and for the period beginning with the first day of
such Fiscal Year and ending on the last day of such Fiscal Quarter, including a
comparison with the corresponding Fiscal Quarter and period of the previous
Fiscal Year together with a certificate of one of the chief executive officer,
the chief financial officer, the chief operating officer or the controller of
Hollinger International to the effect that such financial statements fairly
present in all material respects the financial condition and results of
operations of Hollinger International and its Subsidiaries as of the dates and
periods indicated, subject to changes resulting from normal year-end
adjustments.

          Section 4.1.3. Reports to SEC and to Shareholders. Promptly upon the
filing or sending thereof, a copy of (a) any annual, periodic or special report
or registration statement (inclusive of exhibits thereto) filed by Hollinger
International with the SEC or any securities exchange and (b) any report, proxy
statement or similar communication to Hollinger International’s public
shareholders generally.

          Section 4.1.4. Notice of Default and Litigation Matters. Promptly (and
in any event within one Business Day in the case of clause (a) and within five
days in the case of clauses (b) through (d)) after any officer of Hollinger
International learns of any of the following, written notice describing the
same and the steps being taken by Hollinger International or the Subsidiary
affected thereby with respect thereto: (a) the occurrence of an Event of
Default or an Unmatured Event of Default; (b) any litigation, arbitration or
governmental investigation or proceeding not previously disclosed by Hollinger
International to the Administrative Agent and each Lender which has been
instituted or, to the knowledge of Hollinger International, is threatened
against Hollinger International or any Subsidiary or to which any of the
properties of any thereof is subject which has had or is reasonably likely to
have a Material Adverse Effect; (c) any material adverse development which
occurs in any litigation, arbitration or governmental investigation or
proceeding previously disclosed [on Schedule 3.6 hereto] or pursuant to clause
(b); and (d) the occurrence of any other event or circumstance which has had or
is reasonably likely to have a Material Adverse Effect.

          Section 4.1.5. Management Reports. Promptly upon the request of the
Administrative Agent or any other Secured Party, copies of all detailed
financial and management reports submitted to Hollinger International by
independent auditors in connection with any annual or interim audit made by
such auditors of the books of Hollinger International.

          Section 4.1.6. Other Information. Promptly from time to time, such other
information concerning Hollinger International and its Subsidiaries as the
Administrative Agent or any other Secured Party may reasonably request.

          SECTION 4.2 Books, Records and Inspections. Keep proper books and records
in which full and correct entries shall be made sufficient to allow the
preparation of financial statements in accordance with generally accepted
accounting principles; permit on reasonable notice and at reasonable times and
intervals during normal business hours the Administrative Agent or any other
Secured Party or any representative thereof to (a) visit and inspect the
properties of Hollinger International during normal business hours, (b) inspect
and make extracts from and copies of its books and records and (c) discuss with
its principal officers its businesses, operations and financial matters.
Hollinger International will (i) after the occurrence and during

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11

 

the continuance of any Event of Default and (ii) otherwise with the
consent of the Company, which consent shall not be unreasonably withheld, also
permit the Administrative Agent, any other Secured Party or any representative
thereof to discuss with Hollinger International’s independent auditors its
businesses, operations and financial matters, provided that Hollinger
International is given reasonable prior notice of and an opportunity to attend
any meeting between such auditors and the Administrative Agent, such other
Secured Party or any representative thereof at which such issues will be
discussed. Hollinger International will pay all reasonable out-of-pocket costs
and expenses incurred by the Administrative Agent in connection with all
visits, discussions, and examinations by the Administrative Agent.

          SECTION 4.3 Maintenance of Existence, etc. Maintain and preserve (a) its
existence and good standing in the jurisdiction of its incorporation and (b)
its qualification and good standing as a foreign corporation in each
jurisdiction where the nature of its business makes such qualification
necessary (except in those instances in which the failure to be qualified or in
good standing would not be reasonably likely to result in a Material Adverse
Effect).

          SECTION 4.4 Mergers, Consolidations, Sales. Not be a party to any merger
or consolidation or sale of all or substantially all of the assets of Hollinger
International, except for (a) any such merger or consolidation, sale, transfer,
conveyance, lease or assignment permitted under the Amended and Restated Credit
Agreement, (b) any merger by Hollinger International so long as it is the
surviving corporation or (c) any consolidation by Hollinger International so
long as it does not result in a Change in Control.

          SECTION 4.5 Amendments to Certain Documents. Not, and not permit any
Subsidiary to, make or agree to any amendment to or modification of, or waive
any of its rights under, any of the terms of [(a) the Series E Preferred Shares
or the Exchange Agreement dated April 18, 1998 between Hollinger Inc. and
Hollinger International executed in connection with the issuance of such
Preferred Shares, (b) the Hollinger/APC Share Exchange Agreement dated as of
July 19, 1995, as amended to date, between Hollinger Inc. and Hollinger
International, or (c) the Tax Allocation Agreement] if such amendment,
modification or waiver to such Participation Document would adversely affect
the interest of the Lenders.

          SECTION 4.6 Certain Restrictive Agreements. With respect to each of the
Restricted Subsidiaries (other than the Company), not, and not permit such
Restricted Subsidiary to, enter into any agreement or other contract other than
the New High Yield Notes which would impose restrictions on the ability of
Hollinger International to receive, or such Restricted Subsidiary to make or
declare, dividends or other distributions from such Restricted Subsidiary to
Hollinger International that are more restrictive than the restrictions that
Hollinger International and such Restricted Subsidiary are subject to on the
Amendment Effective Date.

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ARTICLE V

INDEMNIFICATION

          SECTION 5.1 General Indemnity. Without limitation on any other
Obligations of any Guarantor or remedies of the Secured Parties under this
Guaranty, Hollinger International shall, to the fullest extent permitted by
law, indemnify, defend and save and hold harmless each Secured Party and each
of their Affiliates and their respective officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party in
connection with or as a result of any failure of any Guaranteed Obligations to
be the legal, valid and binding obligations of any Guaranteed Obligor
enforceable against such Guaranteed Obligor in accordance with their terms.

          SECTION 5.2 Additional Provision. Hollinger International hereby also
agrees that none of the Indemnified Parties shall have any liability (whether
direct or indirect, in contract, tort or otherwise) to any of the Guarantors or
any of their respective Affiliates or any of their respective officers,
directors, employees, agents and advisors, and Hollinger International hereby
agrees not to assert any claim against any Indemnified Party on any theory of
liability, for special, indirect, consequential or punitive damages arising out
of or otherwise relating to the Facilities, the actual or proposed use of the
proceeds of the Advances or Letters of Credit, the Loan Documents or any other
transactions contemplated by the Loan Documents.

ARTICLE VI

SUBORDINATION

          Hollinger International hereby subordinates any and all debts, liabilities
and other Obligations owed to it by each Borrower (the “Subordinated
Obligations”) to the Guaranteed Obligations to the extent and in the manner
hereinafter set forth in this Article:

          SECTION 6.1 Prohibited Payments, etc. Except during the continuance of an
Event of Default or an Unmatured Event of Default (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to any
Borrower), Hollinger International may receive regularly scheduled payments
from any Borrower on account of the Subordinated Obligations. After the
occurrence and during the continuance of any Event of Default or Unmatured
Event of Default (including the commencement and continuation of any proceeding
under any Bankruptcy Law relating to any Borrower), however, unless the
Administrative Agent otherwise agrees, Hollinger International shall not
demand, accept or take any action to collect any payment on account of the
Subordinated Obligations.

          SECTION 6.2 Prior Payment of Guaranteed Obligations. In any proceeding
under any Bankruptcy Law relating to any Borrower, Hollinger International
agrees that the Secured Parties shall be entitled to receive payment in full in
cash of all Guaranteed Obligations (including all

Hollinger International Guaranty

13

 

interest and expenses accruing after the commencement of a proceeding
under any Bankruptcy Law, whether or not constituting an allowed claim in such
proceeding (“Post Petition Interest”)) before Hollinger International receives
payment of any Subordinated Obligations.

          SECTION 6.3 Turn-Over. After the occurrence and during the continuance of
any Event of Default or Unmatured Event of Default (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to any
Borrower), Hollinger International shall, if the Administrative Agent so
requests, collect, enforce and receive payments on account of the Subordinated
Obligations as trustee for the Secured Parties and deliver such payments to the
Administrative Agent on account of the Guaranteed Obligations (including all
Post Petition Interest), together with any necessary endorsements or other
instruments of transfer, but without reducing or affecting in any manner the
liability of Hollinger International under the other provisions of this
Guaranty.

          SECTION 6.4 Administrative Agent Authorization. After the occurrence and
during the continuance of any Event of Default or Unmatured Event of Default
(including the commencement and continuation of any proceeding under the
Bankruptcy Law relating to any Borrower), the Administrative Agent is
authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of Hollinger International, to collect and enforce,
and to submit claims in respect of, Subordinated Obligations and to apply any
amounts received thereon to the Guaranteed Obligations (including all Post
Petition Interest), and (ii) to require Hollinger International (A) to collect
and enforce, and to submit claims in respect of, Subordinated Obligations and
(B) to pay any amounts received on such obligations to the Administrative Agent
for application to the Guaranteed Obligations (including any and all Post
Petition Interest).

ARTICLE VII

MISCELLANEOUS PROVISIONS

          SECTION 7.1 Loan Document. This Guaranty is a Loan Document executed
pursuant to the Amended and Restated Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in
accordance with the terms and provisions thereof.

          SECTION 7.2 Covenants. Hollinger International covenants and agrees that,
so long as any part of the Guaranteed Obligations shall remain unpaid, any
Letter of Credit shall be outstanding, or any Lender shall have any commitment
under the Facilities, Hollinger International will perform and observe, and
cause each of its Subsidiaries to perform and observe, all of the terms,
covenants and agreements set forth in the Loan Documents on its or their part
to be performed or observed or that any Borrower has agreed to cause Hollinger
International or such Subsidiaries to perform or observe.

          SECTION 7.3 Binding on Successors, Transferees and Assigns; Assignment of
Guaranty. This Guaranty shall be binding upon Hollinger International and its
successors,

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14

 

transferees and assigns, and all references herein to the Guaranteed
Obligors and Hollinger International, respectively, shall be deemed to include
any of such Person’s successor or successors, whether intermediate or remote.
Any Lender may from time to time, in accordance with Section 15.9 of the
Amended and Restated Credit Agreement, without notice to Hollinger
International, assign or transfer any or all of the Guaranteed Obligations or
any interest therein; and, notwithstanding any such assignment or transfer or
any subsequent assignment or transfer thereof, such Guaranteed Obligations
shall be and remain Guaranteed Obligations for the purpose of this Guaranty,
and each and every immediate and successive assignee or transferee of any of
the Guaranteed Obligations or of any interest therein shall, to the extent of
the interest of such assignee or transferee in the Guaranteed Obligations, be
entitled to the benefits of this Guaranty and shall be protected to the same
extent as if such assignee or transferee were a Lender.

          SECTION 7.4 Amendments, etc. No amendment to or waiver of any provision
of this Guaranty, nor consent to any departure by Hollinger International
herefrom, shall in any event be effective unless the same shall be in writing
and signed by the Administrative Agent and Hollinger International, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

          SECTION 7.5 Addresses for Notices to Hollinger International. All notices
hereunder to Hollinger International shall be in writing (including via
facsimile) and shall be sent to it at the address or facsimile number set forth
below its signature hereto or at such other address or facsimile number as may
be designated by Hollinger International in a written notice received by the
Administrative Agent. Notices sent by facsimile transmission shall be deemed
to have been given when sent; notices sent by mail shall be deemed to have been
given three Business Days after the date when sent by registered or certified
mail, postage prepaid; and notices sent by hand delivery shall be deemed to
have been received when received.

          SECTION 7.6 No Waiver; Remedies; Security. In addition to, and not in
limitation of, Section 2.3 and Section 2.5, no failure on the part of the
Administrative Agent or any other Secured Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law. Pursuant to the Amended and Restated Credit Agreement, (a) this Guaranty
has been delivered to the Administrative Agent and (b) the Administrative Agent
has been authorized to enforce this Guaranty on behalf of itself, and each of
the Secured Parties. All payments by Hollinger International pursuant to this
Guaranty shall be made to the Administrative Agent and applied to costs,
expenses, fees or the ratable benefit of the Secured Parties, as applicable.
This Guaranty is secured by various Collateral Documents delivered by Hollinger
International and reference is made to such Collateral Documents for a
description of the collateral security for this Guaranty, the nature and extent
of such Collateral and the rights of the parties in and to such Collateral.

          SECTION 7.7 Section Captions. Section captions used in this Guaranty are
for convenience of reference only, and shall not affect the construction of
this Guaranty.

Hollinger International Guaranty

15

 

          SECTION 7.8 Setoff. In addition to, and not in limitation of, any rights
of the Administrative Agent or any other Secured Party under applicable law,
the Administrative Agent or any other Secured Party shall, upon the occurrence
of any Event of Default, have the right to appropriate and apply to the payment
of the obligations of Hollinger International owing to it hereunder, whether or
not then due, and Hollinger International hereby grants to the Administrative
Agent and each of the other Secured Parties a continuing security interest in,
any and all balances, credits, deposits, accounts or moneys of Hollinger
International then or thereafter maintained with the Administrative Agent or
such other Secured Party and any and all property of every kind or description
or in the name of Hollinger International now or hereafter, for any reason or
purpose whatsoever, in the possession or control of, or in transit to, the
Administrative Agent or such other Secured Party or any agent or bailee
therefor.

          SECTION 7.9 Fees and Expenses. Hollinger International further agrees to
pay all reasonable expenses (including reasonable attorneys’ fees and legal
expenses) paid or incurred by the Administrative Agent or any other Secured
Party in endeavoring to collect the Guaranteed Obligations, or any part
thereof, in realizing upon or protecting any Collateral for this Guaranty, and
in enforcing this Guaranty against Hollinger International.

          SECTION 7.10 Severability. Wherever possible each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

          SECTION 7.11 Governing Law, Entire Agreement, Counterparts, etc. THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. This Guaranty and the other Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject
matter hereof and thereof and supersede any prior agreements, written or oral,
with respect thereto. This Guaranty and each amendment, waiver and consent
with respect hereto may be executed in any number of counterparts and by
different parties thereto 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 of a signature page to this Guaranty and each amendment, waiver and
consent with respect thereto by telecopier shall be effective as delivery of an
original executed counterpart of this Guaranty.

          SECTION 7.12 Forum Selection and Consent to Jurisdiction. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK PROVIDED, HOWEVER, THAT ANY SUCH LITIGATION MAY
BE BROUGHT AND MAINTAINED AND/OR ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S
OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY

Hollinger International Guaranty

16

 

BE FOUND. HOLLINGER INTERNATIONAL HEREBY EXPRESSLY AND IRREVOCABLY
SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE
PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. HOLLINGER INTERNATIONAL
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL,
POSTAGE PREPAID OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.
HOLLINGER INTERNATIONAL HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

          SECTION 7.13 Waiver of Jury Trial. HOLLINGER INTERNATIONAL AND (BY
ACCEPTING THE BENEFITS HEREOF) THE ADMINISTRATIVE AGENT AND EACH OTHER SECURED
PARTY HEREBY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS
GUARANTY, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT A JURY.

          SECTION 7.14 Taxes. All payments to be made by Hollinger International to
any person hereunder shall be made free and clear of, and without deduction for
or on account of, tax unless Hollinger International is required by law to make
such a payment subject to the deduction or withholding of tax, in which case
the sum payable by Hollinger International in respect of which such deduction
or withholding is required to be made shall be increased to the extent
necessary to ensure that, after the making of such deduction or withholding,
such person receives and retains (free from any liability in respect of any
such deduction or withholding) a net sum equal to the sum which it would have
received and so retained had no such deduction or withholding been made or
required to be made.

          SECTION 7.15 Judgment Currency. The obligations of Hollinger
International, in respect of any sum due to the Administrative Agent or any
other Secured Party hereunder shall, notwithstanding any judgment in a currency
(the “Judgment Currency”) other than the currency in which such sum was
originally denominated (the “Original Currency”), be discharged only to the
extent that following receipt by the Administrative Agent or such Secured Party
of any sum adjudged to be so due in the Judgment Currency, the Administrative
Agent or such Secured Party, in accordance with normal banking procedures,
purchases the Original Currency with the Judgment Currency. If the amount of
Original Currency so purchased is less than the sum originally due to the
Administrative Agent or such Secured Party, Hollinger International agrees, as
a separate obligation and notwithstanding any such judgment, to indemnify the
Administrative

Hollinger International Guaranty

17

 

Agent or such Secured Party, as the case may be, against such loss, and if
the amount of Original Currency so purchased exceeds the sum originally due to
the Administrative Agent or such Secured Party, as the case may be, the
Administrative Agent or such Secured Party agrees to remit such excess to
Hollinger International.

Hollinger International Guaranty

18

 

          IN WITNESS WHEREOF, Hollinger International has caused this Guaranty to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

	 	 	 	 
	 	
HOLLINGER INTERNATIONAL INC.
	 	 	 	 
	 	By:	 	 
	 	 	

	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	Address:	 	
401 North Wabash Avenue
	 	 	 	
Chicago, Illinois 60611
	 	 	 	 
	 	Facsimile No.:	
(312) 321-0629
	 	 	 	 
	 	Attention:	 	 

Hollinger International Guaranty

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