Document:

EXHIBIT
4.1

 

$8,028,000,000

CREDIT
AGREEMENT

Dated as of May
17, 2007

Among

TRIBUNE
COMPANY

as Borrower

THE
INITIAL LENDERS NAMED HEREIN

as Initial Lenders

JPMORGAN
CHASE BANK, N.A.

as Administrative
Agent

MERRILL
LYNCH CAPITAL CORPORATION

as Syndication Agent

CITICORP
NORTH AMERICA, INC.,

BANK OF AMERICA, N.A.

and

BARCLAY’S BANK PLC

as
Co-Documentation Agents

and

J.P.
MORGAN SECURITIES INC.,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

CITIGROUP GLOBAL MARKETS INC.

and

BANC OF AMERICA SECURITIES LLC

as Joint Lead
Arrangers and Joint Bookrunners

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  ACCOUNTING TERMS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Certain Defined Terms

  	
   

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Terms Generally

  	
   

  	
  37

  
	
  SECTION 1.03.

  	
   

  	
  Accounting Terms

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMOUNTS AND
  TERMS OF THE

  
	
  ADVANCES AND
  LETTERS OF CREDIT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  The Advances and Letters of Credit

  	
   

  	
  38

  
	
  SECTION 2.02.

  	
   

  	
  Making the Advances

  	
   

  	
  39

  
	
  SECTION 2.03.

  	
   

  	
  Issuance of and Drawings and Reimbursement Under
  Letters of Credit

  	
   

  	
  41

  
	
  SECTION 2.04.

  	
   

  	
  Fees

  	
   

  	
  44

  
	
  SECTION 2.05.

  	
   

  	
  Termination or Reduction of the Commitments

  	
   

  	
  45

  
	
  SECTION 2.06.

  	
   

  	
  Repayment of Advances and Letter of Credit Drawings

  	
   

  	
  45

  
	
  SECTION 2.07.

  	
   

  	
  Interest on Advances

  	
   

  	
  47

  
	
  SECTION 2.08.

  	
   

  	
  Interest Rate Determination

  	
   

  	
  47

  
	
  SECTION 2.09.

  	
   

  	
  Optional Conversion of Advances

  	
   

  	
  48

  
	
  SECTION 2.10.

  	
   

  	
  Prepayments of Advances

  	
   

  	
  49

  
	
  SECTION 2.11.

  	
   

  	
  Increased Costs

  	
   

  	
  51

  
	
  SECTION 2.12.

  	
   

  	
  Illegality

  	
   

  	
  52

  
	
  SECTION 2.13.

  	
   

  	
  Payments and Computations; Pro Rata Treatment

  	
   

  	
  52

  
	
  SECTION 2.14.

  	
   

  	
  Taxes

  	
   

  	
  53

  
	
  SECTION 2.15.

  	
   

  	
  Sharing of Payments, Etc.

  	
   

  	
  55

  
	
  SECTION 2.16.

  	
   

  	
  Evidence of Debt.

  	
   

  	
  55

  
	
  SECTION 2.17.

  	
   

  	
  Incremental Facilities

  	
   

  	
  56

  
	
  SECTION 2.18.

  	
   

  	
  Mitigation Obligations

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  CONDITIONS TO
  EFFECTIVENESS AND LENDING

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Conditions Precedent to Initial Borrowing

  	
   

  	
  58

  
	
  SECTION 3.02.

  	
   

  	
  Conditions Precedent to Each Borrowing and Issuance

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Representations and Warranties of Borrower

  	
   

  	
  61

  

 

 i
 

 

	
  ARTICLE V

  
	
   

  
	
  COVENANTS OF THE
  BORROWER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Affirmative Covenants

  	
   

  	
  66

  
	
  SECTION 5.02.

  	
   

  	
  Negative Covenants

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVENTS OF
  DEFAULT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  85

  
	
  SECTION 6.02.

  	
   

  	
  Actions in Respect of the Letters of Credit upon
  Default

  	
   

  	
  87

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  THE AGENT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Authorization and Action

  	
   

  	
  88

  
	
  SECTION 7.02.

  	
   

  	
  Agent’s Reliance, Etc.

  	
   

  	
  88

  
	
  SECTION 7.03.

  	
   

  	
  The Agent and Affiliates

  	
   

  	
  89

  
	
  SECTION 7.04.

  	
   

  	
  Lender Credit Decision

  	
   

  	
  89

  
	
  SECTION 7.05.

  	
   

  	
  Indemnification

  	
   

  	
  89

  
	
  SECTION 7.06.

  	
   

  	
  Successor Agent

  	
   

  	
  90

  
	
  SECTION 7.07.

  	
   

  	
  Other Agents

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Amendments, Etc.

  	
   

  	
  91

  
	
  SECTION 8.02.

  	
   

  	
  Notices, Etc.

  	
   

  	
  92

  
	
  SECTION 8.03.

  	
   

  	
  No Waiver; Remedies

  	
   

  	
  94

  
	
  SECTION 8.04.

  	
   

  	
  Costs and Expenses; Indemnity; Survival

  	
   

  	
  94

  
	
  SECTION 8.05.

  	
   

  	
  Right of Set-off

  	
   

  	
  95

  
	
  SECTION 8.06.

  	
   

  	
  Binding Effect

  	
   

  	
  95

  
	
  SECTION 8.07.

  	
   

  	
  Assignments and Participations

  	
   

  	
  96

  
	
  SECTION 8.08.

  	
   

  	
  Confidentiality

  	
   

  	
  98

  
	
  SECTION 8.09.

  	
   

  	
  Governing Law

  	
   

  	
  99

  
	
  SECTION 8.10.

  	
   

  	
  Execution in Counterparts

  	
   

  	
  99

  
	
  SECTION 8.11.

  	
   

  	
  Jurisdiction, Etc.

  	
   

  	
  99

  
	
  SECTION 8.12.

  	
   

  	
  No Liability of the Issuing Banks

  	
   

  	
  100

  
	
  SECTION 8.13.

  	
   

  	
  Patriot Act Notice

  	
   

  	
  100

  
	
  SECTION 8.14.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  100

  
	
  SECTION 8.15.

  	
   

  	
  Replacement of Lenders

  	
   

  	
  101

  
	
  SECTION 8.16.

  	
   

  	
  Acknowledgments

  	
   

  	
  102

  
	
  SECTION 8.17.

  	
   

  	
  Headings

  	
   

  	
  102

  
	
  SECTION 8.18.

  	
   

  	
  Severability

  	
   

  	
  102

  
	
  SECTION 8.19.

  	
   

  	
  Reliance

  	
   

  	
  102

  
	
  SECTION 8.20.

  	
   

  	
  Releases of Guarantees and Liens

  	
   

  	
  102

  
							

 

 ii
 

Schedules

	
  Schedule I

  	
  –

  	
  Commitments; List of Applicable Lending Offices

  
	
  Schedule 1.01(a)

  	
  –

  	
  Refinancing Debt

  
	
  Schedule 1.01(b)

  	
  –

  	
  TMCT Property

  
	
  Schedule 1.01(c)

  	
  –

  	
  Pro Forma Basis

  
	
  Schedule 1.01(d)

  	
  –

  	
  Certain Intercompany Indebtedness

  
	
  Schedule 1.01(e)

  	
  –

  	
  Closing Date Guarantors

  
	
  Schedule 2.04(a)

  	
  –

  	
  Fiscal Quarters

  
	
  Schedule 4.01(f)

  	
  –

  	
  Litigation

  
	
  Schedule 4.01(p)

  	
  –

  	
  Subsidiaries

  
	
  Schedule 5.02(a)

  	
  –

  	
  Existing Liens

  
	
  Schedule 5.02(c)(ii)

  	
  –

  	
  Existing Debt

  
	
  Schedule 5.02(e)

  	
  –

  	
  Asset Sales

  

 

Exhibits

	
  Exhibit A-1

  	
  –

  	
  Form of Revolving Credit Note

  
	
  Exhibit A-2

  	
  –

  	
  Form of Tranche X Note

  
	
  Exhibit A-3

  	
  –

  	
  Form of Tranche B Note

  
	
  Exhibit A-4

  	
  –

  	
  Form of Swing Line Note

  
	
  Exhibit B

  	
  –

  	
  Form of Notice of Borrowing

  
	
  Exhibit C

  	
  –

  	
  Form of Assignment and Acceptance

  
	
  Exhibit D-1

  	
  –

  	
  Form of Opinion of Counsel for the Company

  
	
  Exhibit D-2

  	
  –

  	
  Form of Opinion of Counsel to the Trustee of the
  ESOP Trust

  
	
  Exhibit E

  	
  –

  	
  Form of Solvency Certificate

  
	
  Exhibit F

  	
  –

  	
  Form of Guarantee

  
	
  Exhibit G

  	
  –

  	
  Form of Pledge Agreement

  
	
  Exhibit H

  	
  –

  	
  Form of Compliance Certificate

  
	
  Exhibit I

  	
  –

  	
  Form of Administrative Questionnaire

  

 

 iii

CREDIT AGREEMENT

This CREDIT AGREEMENT (“Agreement”) is entered
into as of May 17, 2007 among TRIBUNE COMPANY, a Delaware corporation (“Tribune”
or “Borrower”), each lender from time to time party hereto
(collectively, the “Lenders” and individually, a “Lender”),
JPMORGAN CHASE BANK, N.A., as administrative agent (the “Agent”),
MERRILL LYNCH CAPITAL CORPORATION, as syndication agent (in such capacity, the “Syndication
Agent”), and CITICORP NORTH AMERICA, INC. and BANK OF AMERICA, N.A., as
co-documentation agents (in such capacity, the “Documentation Agents”),
J.P. MORGAN SECURITIES INC., MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED, CITIGROUP GLOBAL MARKETS INC. and BANC OF AMERICA SECURITIES LLC
(collectively, the “Lead Arrangers”)
will act as Joint Lead Arrangers and Joint Bookrunners.

Borrower has requested that the Lenders provide a
revolving credit facility, a tranche X facility, an initial tranche B
facility and a delayed draw tranche B facility, and the Lenders are willing to
do so on the terms and conditions set forth herein.

In consideration of the mutual covenants and
agreements herein contained, the parties hereto covenant and agree as follows:

ARTICLE I

DEFINITIONS
AND ACCOUNTING TERMS

SECTION 1.01.      Certain
Defined Terms.  As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

“Acquisition” shall mean the merger providing
for Merger Sub to be merged with and into Borrower, and following such merger,
Borrower to continue as the surviving corporation wholly owned by the ESOP.

“Acquisition Agreement” shall mean the
Agreement and Plan of Merger, dated as of April 1, 2007, by and among Tribune,
Merger Sub, GreatBanc Trust Company, not in its individual or corporate
capacity, but solely as trustee of the Tribune Employee Stock Ownership Trust,
which forms a part of the Tribune Employee Stock Ownership Plan, and, for the
limited purposes set forth therein, EGI-TRB, L.L.C., as the same may be waived,
amended, supplemented or otherwise modified from time to time; provided
that any such waiver, amendment, supplement or other modification, in each case
that is material and adverse to Lenders shall have been approved by the Agent.

“Acquisition Conditions” has the meaning
specified in Section 5.02(b)(v).

“Administrative Questionnaire” means an
Administrative Questionnaire in substantially the form of Exhibit I.

“Advance” means a Revolving Credit Advance, a
Term Advance or a Swing Line Advance.

“Affiliate” means, as to any Person, any other
Person that, directly or indirectly, controls, is controlled by or is under
common control with such Person or is a director or officer of such
Person.  For purposes of this definition,
the term “control” (including the terms “controlling”, “controlled by” and 

“under common control with”) of a Person means the
possession, direct or indirect, of the power to vote 10% or more of the Voting
Stock of such Person or to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Stock, by
contract or otherwise.

“Agent” has the meaning specified in the
preamble.

“Agent’s Account” means the account of the
Agent maintained by the Agent at JPMorgan Chase Bank, N.A. at its office at 270
Park Avenue, New York, New York 10017.

“Agreement” has the meaning specified in the preamble
and includes any subsequent amendments, supplements, amendments and
restatements or other modifications from time to time thereto.

“Applicable ECF Percentage” means, for any
fiscal year, (a) 50% if the Total Guaranteed Leverage Ratio as of the last day
of such fiscal year is greater than or equal to 6.25 to 1.00, (b) 25% if the
Total Guaranteed Leverage Ratio as of the last day of such fiscal year is less
than 6.25 to 1.00 but greater than or equal to 5.75 to 1.00 and (c) 0% if the
Total Guaranteed Leverage Ratio as of the last day of such fiscal year is less
than 5.75 to 1.00.

“Applicable Fee” means, for any day with
respect to (i) Unused Revolving Credit Commitments, the percentage per annum
specified as the “Revolver Commitment Fee” in the table under “Applicable
Margin” based on the then applicable price level and (ii) any Unused Delayed
Draw Tranche B Commitment, 0.75% per annum.

“Applicable Lending Office” means, with respect
to each Lender, such Lender’s Domestic Lending Office in the case of a Base
Rate Advance and such Lender’s Eurodollar Lending Office in the case of a
Eurodollar Rate Advance.

“Applicable Margin” means (a) with respect to
the Tranche X Advances (i) prior to the Second Step Closing Date, (A) 2.50% per
annum, in the case of Eurodollar Rate Advances, and (B) 1.50% per annum, in the
case of Base Rate Advances and (ii) on and after the Second Step Closing Date,
(A) 2.75% per annum, in the case of Eurodollar Rate Advances and (B) 1.75% per
annum, in the case of Base Rate Advances; (b) with respect to the Tranche B
Advances (i) 3.00% per annum, in the case of Eurodollar Rate Advances and (ii)
2.00% per annum, in the case of Base Rate Advances; and (c) with respect to the
Revolving Credit Advances (i) until delivery of financial statements for the
first full fiscal quarter commencing on or after the Closing Date pursuant to Section
5.01(i), (A) 3.00% per annum, in the case of Eurodollar Rate Advances, and
(B) 2.00% per annum, in the case of Base Rate Advances and (ii) thereafter, the
following percentages per annum, based upon the Total Guaranteed Leverage Ratio:

Applicable Margin

	
  Pricing

  Level

  	
   

  	
  Total Guaranteed

  Leverage Ratio

  	
   

  	
  Revolver 

  Commitment

  Fee

  	
   

  	
  Eurodollar Rate 

  Advances

  	
   

  	
  Base Rate

  Advances

  	
   

  
	
  1

  	
   

  	
  >6.25:1

  	
   

  	
  0.500

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  2

  	
   

  	
  <6.25:1 and >5.75:1

  	
   

  	
  0.500

  	
  %

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
  3

  	
   

  	
  <5.75:1

  	
   

  	
  0.375

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  

 

provided that if (x) the Acquisition
Agreement is terminated prior to the consummation of the Acquisition and (y)
the corporate credit ratings for Borrower are B1 or better by Moody’s and B+ or
better by S&P (in each case with a stable outlook), then the Applicable
Margin for each of the Revolving Credit Facility, the 

 2
 

Tranche X Advances and the Tranche B Advances shall be
reduced by 25 basis points.  Any increase
or decrease in the Applicable Margin shall be effective as of the first
Business Day immediately following the receipt by the Agent of annual or
quarterly financial statements pursuant to Section 5.01(i).

“Appropriate Lender” means, at any time, with
respect to any of the Tranche X Facility, the Tranche B Facility or the
Revolving Credit Facility, a Lender that has a Commitment with respect to such
Facility at such time.

“Approved Fund” means any Fund that is administered
or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

“Asset Sale” means (a) any conveyance,
sale, lease, sublease, assignment, transfer or other disposition (including by
way of merger or consolidation and including any Sale and Lease-Back
Transaction and any Disposition) of any property excluding sales of inventory
and dispositions of cash and Cash Equivalents in each case, in the ordinary
course of business, by Borrower or any of its Subsidiaries and (b) any
issuance or sale of any Equity Interests of any Subsidiary of Borrower, in each
case to any Person other than (i) Borrower, (ii) any Guarantor or
(iii) except for purposes of Section 5.02(e), any other
Subsidiary.  Notwithstanding anything
herein to the contrary, Asset Sales shall not include (x) any conveyance, sale,
lease, sublease, assignment, transfer or other disposition of property or any
issuance or sale of any Equity Interests of any Subsidiary of Borrower (in a
single or series of related transactions) with an aggregate fair market value
of less than $10.0 million and (y) any issuance or sale of Junior Capital.

“Asset Sale Prepayment Event” means (x) the receipt
of any Net Cash Proceeds from any Asset Sale or series of related Asset Sales; provided
that the receipt of Net Cash Proceeds from any transactions expressly permitted
by Section 5.02(e), other than transactions consummated in reliance on Section
5.02(e)(ii) and (vii), shall be excluded for purposes of this clause
(x), and (y) pursuant to clause (v) of the definition of “Permitted Disposition
Transactions,” the receipt of the prepayment amount associated with a
Disposition.  Notwithstanding the
foregoing, any sale of the asset listed in the Side Letter shall not constitute
an Asset Sale Prepayment Event if used for the purposes stipulated in the Side
Letter.

“Assignment and Acceptance” means an assignment
and acceptance entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 8.07 or by the
definition of “Eligible Assignee”), and accepted by the Agent and, if
applicable, Borrower, in substantially the form of Exhibit C hereto or
any other form approved by the Agent.

“Attributable Debt” shall mean, when used with
respect to any Sale and Lease-Back Transaction, as at the time of
determination, the present value (discounted at a rate equivalent to Borrower’s
then-current weighted average cost of funds for borrowed money as at the time
of determination, compounded on a semi-annual basis) of the total obligations
of the lessee for rental payments during the remaining term of the lease
included in any such Sale and Lease-Back Transaction.

“Available Amount” of any Letter of Credit
means, at any time, the maximum amount available to be drawn under such Letter
of Credit at such time (assuming compliance at such time with all conditions to
drawing), which maximum amount shall be deemed to be the maximum stated amount
of such Letter of Credit after giving effect to all automatic increases, if
any, under the terms of such Letter of Credit, whether or not such maximum
stated amount is in effect at such time.

“Base Rate” means a fluctuating interest rate
per annum in effect from time to time, which rate per annum shall at all times
be equal to the higher of:

 3
 

(a)           the
rate of interest announced publicly by JPMorgan Chase Bank, N.A. in New York,
New York, from time to time, as JPMorgan Chase Bank, N.A.’s corporate base
rate; and

(b)           1/2
of one percent per annum above the Federal Funds Rate.

“Base Rate Advance” means an Advance that bears
interest as provided in Section 2.07(a)(i).

“Board of Directors” means (a) with respect
to a corporation, the board of directors of the corporation, (b) with
respect to a partnership, the board of directors of the general partner of the
partnership and (c) with respect to any other Person, the board or
committee of such Person serving a similar function.

“Borrower” has the meaning specified in the preamble.

“Borrower Acquisition Bridge Loans” means
senior unsecured bridge loans of Borrower (together with senior subordinated
guarantees thereof by the Guarantors) in each case incurred under agreements
with representations, warranties, affirmative covenants, negative covenants and
events of default substantially similar to those set forth herein, the net
proceeds of which are used exclusively to finance the consummation of the
Acquisition and to pay related fees and expenses.  Borrower Acquisition Bridge Loans also
includes any extended senior term loans and senior exchange securities issued
upon initial maturity of the Borrower Acquisition Bridge Loans in accordance
with the Borrower Acquisition Bridge Loan Documents.

“Borrower Acquisition Bridge Loan Documents”
means any bridge loan credit agreement, loan agreement or indenture, related
guarantee agreement and all other documents executed and delivered, in each
case in connection with the making of Borrower Acquisition Bridge Loans
(including, without limitation, any applicable extended senior term loans and
senior exchange securities issued in exchange therefore and not in addition
thereto), in each case as amended, restated, replaced or otherwise modified
from time to time in accordance therewith.

“Borrower Information” has the meaning
specified in Section 8.08.

“Borrower’s Account” means the account of Borrower
specified by Borrower to the Agent from time to time in writing.

“Borrower High Yield Notes” means senior or
senior subordinated notes issued by Borrower (in either case, with related
senior subordinated guarantees thereof by the Guarantors) in each case incurred
on terms and conditions reasonably satisfactory to the Agent, the net proceeds
of which are used exclusively to (i) finance the consummation of the
Acquisition and to pay related fees and expenses or (ii) refinance any Borrower
Acquisition Bridge Loans.  Borrower High
Yield Notes also includes exchange notes and related guarantees to be issued in
exchange for the initial Borrower High Yield Notes pursuant to a customary
registration rights agreement.

“Borrower High Yield Notes Documents” means any
Borrower High Yield Notes, the indenture under which Borrower High Yield Notes
are issued and all other documents executed and delivered in connection with
the issuance of Borrower High Yield Notes, in each case as amended, restated,
replaced or otherwise modified from time to time in accordance therewith.

“Borrowing” means a Revolving Credit Borrowing,
a Tranche X Borrowing, a Tranche B Borrowing or a Swing Line Borrowing.

 4
 

“Broadcasting Holdco Transaction” means the
contribution by Borrower of 100% of its equity interests in Tribune
Broadcasting Company to its newly-formed, direct wholly owned Subsidiary,
Tribune Broadcasting Holdco, LLC.

“Business Day” means a day of the year on which
banks are not required or authorized by law to close in New York City or
Chicago, Illinois and, if the applicable Business Day relates to any Eurodollar
Rate Advances, on which dealings are carried on in the London interbank market.

“Capital Expenditures” means, for any period,
the aggregate of all expenditures (whether paid in cash or accrued as
liabilities and including in all events all amounts expended or capitalized
under Capital Lease Obligations) by the Borrower and the Subsidiaries during
such period that, in conformity with GAAP, are or are required to be included
as capital expenditures on a consolidated statement of cash flows of Borrower
and its Subsidiaries; provided that the term “Capital Expenditures”
shall not include (i) with respect to any purchase or acquisition of all of the
Equity Interests of a Person or all or substantially all of the property or assets
of a Person or business line of a Person, (x) the purchase price thereof and
(y) any Capital Expenditures expended by the seller or entity to be acquired in
connection with such purchase or acquisition prior to the date thereof or (ii)
expenditures constituting part of a Permitted Disposition Transaction.

“Capital Lease Obligation” means, of any
Person, the obligations of such Person to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified
and accounted for as capital leases on a balance sheet of such Person under
GAAP, and the amount of such obligations shall be the capitalized amount
thereof determined in accordance with GAAP.

“Capital Stock” means any and all shares,
interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person
(other than a corporation).

“Cash Equivalents” means, as to any Person,
(a) securities issued, or directly, unconditionally and fully guaranteed
or insured, by the United States or any agency or instrumentality thereof (provided
that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than one year from the date of
acquisition by such Person; (b) time deposits and certificates of deposit
of any Lender or any commercial bank having, or which is the principal banking
subsidiary of a bank holding company organized under the laws of the United
States, any state thereof or the District of Columbia having, capital and
surplus aggregating in excess of $500.0 million and a rating of “A” (or such
other similar equivalent rating) or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under the
Securities Act) with maturities of not more than one year from the date of
acquisition by such Person; (c) repurchase obligations with a term of not
more than 30 days for underlying securities of the types described in
clause (a) above entered into with any bank meeting the qualifications
specified in clause (b) above; (d) commercial paper issued by any
Person incorporated in the United States rated at least A-1 or the equivalent
thereof by S&P or at least P-1 or the equivalent thereof by Moody’s, and in
each case maturing not more than one year after the date of acquisition by such
Person; (e) investments in money market funds substantially all of whose
assets are comprised of securities of the types described in clauses (a),
(b) and (d) above; (f) demand deposit accounts maintained in the ordinary
course of business; (g) money market funds that (i) comply with the criteria
set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as
amended from time to time, (ii) are rated AAA by S&P or Aaa by Moody’s and
(iii) have portfolio assets of at least $5,000,000,000; (h) marketable direct
obligations issued by any state of the United States or any political
subdivision of any such state or any public instrumentality thereof, maturing
within one year from the date of acquisition thereof and, at the time of acquisition,
having one of the two highest ratings obtainable from either S&P or 

 5
 

Moody’s; and (i) investments in auction rate securities
or similar securities with a rating of AA and a maximum holding period of 90
days, for which the reset date will be used to determine the potential maturity
date.

“Cash Interest Expense” means, for any period,
Consolidated Interest Expense for such period, less the sum of
(a) interest on any debt paid by the increase in the principal amount of
such debt including by issuance of additional debt of such kind, (b) items
described in clause (c) of the definition of “Consolidated Interest
Expense” and (c) non-cash interest expense related to PHONES.

“Cash Management Agreement” means any agreement
or arrangement to provide cash management services, including treasury,
depository overdraft, credit or debit card, electronic funds transfer and other
cash management arrangements.

“Casualty Event” means, with respect to any
equipment, fixed assets or real property (including any improvements thereon)
of Borrower or any Subsidiary, any loss of or damage to, or any condemnation or
other taking by a Governmental Authority of, such property, the date on which
Borrower or any of the Subsidiaries receives insurance proceeds, or proceeds of
a condemnation award or other compensation to replace or repair such property,
in each case, in excess of $10.0 million with respect to any such event.

“Change in Control” means (i) any Person or
group of Persons (within the meaning of Sections 13(d) and 14(d) under the
Exchange Act), other than, in the aggregate, Zell, EGI-TRB, L.L.C., the ESOP,
the ESOP Trust or any Permitted Transferee, shall become the ultimate “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act), directly or indirectly, of Voting Stock representing 40% or more of the
Voting Stock of Borrower (or other securities convertible or exercisable into
such Voting Stock) on a fully diluted basis (including common stock equivalents
issued pursuant to the Tribune Management Equity Incentive Plan) or shall
obtain the power (whether or not exercised) to elect a majority of Borrower’s
directors or (ii) during any period of 24 consecutive months, individuals who
at the beginning of such period constituted the Board of Directors of Borrower
(together with any new directors whose election to such board or whose nomination
for election by the stockholders of Borrower was approved by a vote of a
majority of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board of Directors of Borrower then in office; provided that the consummation
of the Transactions (including the change in Board of Directors pursuant
thereto) shall not constitute a “Change of Control”.

“Closing Date” means the date of the initial Advances
hereunder.

“Code” means the Internal Revenue Code of 1986,
and the regulations thereunder, in each case as amended, reformed or otherwise
modified from time to time.

“Collateral” means any and all property owned,
leased or operated by a Person from time to time subject to a Lien under the
Pledge Agreement.

“Commitment” means a Revolving Credit Commitment,
a Letter of Credit Commitment, a Tranche X Commitment, a Tranche B Commitment,
a Delayed Draw Tranche B Commitment or a Swing Line Commitment.

“Communications” has the meaning specified in Section
8.02(d).

 6
 

“Companies” means
Borrower and its Subsidiaries collectively, and any one of them, a “Company”.

“Company Material Adverse Effect” means the
definition ascribed thereto in the Acquisition Agreement.

“Compliance Certificate” means a certificate of
Borrower in the form of Exhibit H hereto.

“Consolidated” refers to the consolidation of accounts
in accordance with GAAP.

“Consolidated Current Assets” means, as at any
date of determination, the total assets of Borrower and its Subsidiaries which
may properly be classified as current assets on a consolidated balance sheet of
Borrower and its Subsidiaries in accordance with GAAP, excluding cash and Cash
Equivalents.

“Consolidated Current Liabilities” means, as at
any date of determination, the total liabilities of Borrower and its Subsidiaries
which may properly be classified as current liabilities (other than the current
portion of any Debt) on a consolidated balance sheet of Borrower and its
Subsidiaries in accordance with GAAP.

“Consolidated Interest Expense” means, for any
period, the total Consolidated interest expense of Borrower and its
Subsidiaries for such period, including without duplication:

(a)           imputed
interest on Capital Lease Obligations and Attributable Debt of Borrower and its
Subsidiaries for such period;

(b)           commissions,
discounts and other fees and charges owed by Borrower or any of its
Subsidiaries with respect to letters of credit securing financial obligations,
bankers’ acceptance financing and receivables financings for such period;

(c)           amortization
of debt issuance costs, original issue discount and other financing, legal and
accounting fees, costs and expenses (whether or not deferred) and any interest
expense on deferred compensation arrangements, in each case incurred by
Borrower or any of its Subsidiaries for such period;

(d)           cash
contributions to any employee stock ownership plan or similar trust made by
Borrower or any of its Subsidiaries to the extent such contributions are used
by such plan or trust to pay interest or fees to any Person (other than
Borrower or a wholly owned Subsidiary) in connection with Debt incurred by such
plan or trust for such period;

(e)           all
interest paid or payable with respect to discontinued operations of Borrower or
any of its Subsidiaries for such period;

(f)            the
interest portion of any deferred payment obligations of Borrower or any of its
Subsidiaries for such period; and

(g)           all
interest on any Debt of Borrower or any of its Subsidiaries of the type described
in clause (h) or (i) of the definition of “Debt” for such period to the
extent paid by Borrower and its Subsidiaries;

 7
 

provided that (a) to the extent
directly related to the Transactions, debt issuance costs, debt discount or
premium and other financing fees, costs and expenses shall be excluded from the
calculation of Consolidated Interest Expense and (b) Consolidated Interest
Expense shall be calculated after giving effect to Hedge Agreements related to
interest rates (including associated costs), but excluding unrealized gains and
losses with respect to Hedge Agreements related to interest rates.

Other than for purposes of calculating Excess Cash
Flow, Consolidated Interest Expense shall be calculated on a Pro Forma Basis to
give effect to any Debt (other than Debt incurred for ordinary course working
capital needs under ordinary course revolving credit facilities) incurred,
assumed or permanently repaid or extinguished at any time on or after the first
day of a Test Period and prior to the date of determination in connection with
any Permitted Acquisitions and Asset Sales (other than any dispositions in the
ordinary course of business) as if such incurrence, assumption, repayment or
extinguishing had been effected on the first day of such period.

“Consolidated Total Assets” means the total of
all assets of Borrower and the Subsidiaries determined on a consolidated basis
in accordance with GAAP.

“Convert”, “Conversion” and “Converted”
each refers to a conversion of Advances of one Type into Advances of the other
Type pursuant to Section 2.08 or 2.09.

“Debt” of any Person means, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
payment obligations of such Person for the deferred purchase price of property
or services (other than trade payables not overdue by more than 120 days
incurred in the ordinary course of such Person’s business), (c) all payment
obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all Purchase Money Obligations, Capital Lease
Obligations, Attributable Debt and under synthetic, off-balance sheet or tax
retention leases (excluding, however, operating leases), (e) all payment
obligations, contingent or otherwise, of such Person in respect of acceptances,
standby letters of credit or similar extensions of credit, (f) all net payment
obligations of such Person in respect of Hedge Agreements, (g) all payment
obligations outstanding to Persons that are not Affiliates of Borrower in
connection with a Receivables Facility, (h) all Debt of others referred to in
clauses (a) through (g) above or clause (i) below (collectively, “Guaranteed
Debt”) guaranteed directly or indirectly in any manner by such Person, or
in effect guaranteed directly or indirectly by such Person, through an agreement
(1) to pay or purchase such Guaranteed Debt or to advance or supply funds for
the payment or purchase of such Guaranteed Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services, primarily for
the purpose of enabling the debtor to make payment of such Guaranteed Debt or
to assure the holder of such Guaranteed Debt against loss in respect of such
Guaranteed Debt, (3) to supply funds to or in any other manner invest funds in
the debtor (including any agreement to pay for property or services
irrespective of whether such property is received or such services are rendered)
or (4) otherwise to assure a creditor against loss in respect of such Guaranteed
Debt and (i) all Debt referred to in clauses (a) through (h) above (including
Guaranteed Debt) secured by (or for which the holder of such Debt has an
existing right, contingent or otherwise, to be secured by) any Lien on property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the
payment of such Debt; provided that, if such Person has not assumed or
otherwise become liable in respect of such Debt, such obligations shall be
deemed to be in an amount equal to the lesser of (i) the amount of such Debt
and (ii) fair market value of such property at the time of determination (in
the Borrower’s good faith estimate).  The
amount of any Guaranteed Debt shall be deemed to be an amount equal to the
lesser of (a) the stated or determinable amount of the primary obligation in
respect of which such Guaranteed Debt is made and (b) the maximum amount for
which such guaranteeing Person may be liable pursuant to the terms of the instrument
embodying such Guaranteed Debt, unless such primary obligation and the maximum
amount for which such guaranteeing Person may be liable are not stated or
determinable, in which case the amount of the Guaranteed Debt 

 8
 

shall be such guaranteeing Person’s reasonably
anticipated liability in respect thereof as determined by the Borrower in good
faith.  Notwithstanding anything to the
contrary, Borrower’s obligation to pay Dividends to the ESOP pursuant to
Section 6.3(a)(3) of the ESOP Purchase Agreement shall not constitute Debt.

“Debt for Borrowed Money” means, as of any date
of determination and without duplication, all items that, in accordance with
GAAP, would be classified as debt on Borrower’s Consolidated balance sheet; provided
that Debt for Borrowed Money shall exclude, to the extent otherwise included
the preceding clause, (i) accounts payable and accrued liabilities in the
ordinary course of business of Borrower and its Subsidiaries, (ii) to the extent
constituting an “effective” hedge in accordance with GAAP, prepaid variable
forward derivative instruments and prepaid variable forward contract
obligations, (iii) notes, bills and checks presented in the ordinary course of
business by Borrower or any of its Subsidiaries to banks for collection or
deposit, (iv) all obligations of Borrower and its Subsidiaries of the character
referred to in this definition to the extent owing to Borrower or any of its
Subsidiaries; provided, further, that, with respect to Hedge
Agreements, Debt for Borrowed Money shall include only net payment obligations
of such Person in respect of Hedge Agreements and (v) Debt of the type
otherwise permitted under clauses (viii) or (xi) of Section 5.02(c); and
provided, further, that Debt for Borrowed Money shall include,
without duplication, whether or not reflected as debt on Borrower’s
Consolidated balance sheet, all payment obligations outstanding to Persons that
are not Affiliates of Borrower in connection with a Receivables Facility.

“Debt Service” means for any period, Cash
Interest Expense for such period plus scheduled principal amortization in
respect of Debt for Borrowed Money that is payable in cash for such period.

“Default” means any Event of Default or any
event that, unless cured or waived, would constitute an Event of Default but
for the requirement that notice be given or time elapse or both.

“Default Interest” has the meaning specified in
Section 2.07(b).

“Defaulted Advance” means, with respect to any
Lender at any time, the portion of any Advance required to be made by such
Lender to Borrower pursuant to Section 2.01 or 2.02 at or prior
to such time that has not been made by such Lender or by the Agent for the
account of such Lender pursuant to Section 2.02(d) as of such time.

“Defaulting Lender” means, at any time, any
Lender that, at such time, owes a Defaulted Advance.

“Deferred Net Cash Proceeds” has the meaning
assigned to such term in clauses (a) and (c) of the definition of “Net Cash Proceeds.”

“Delayed Draw Tranche B Advance” has the
meaning assigned to such term in Section 2.01(c).

“Delayed Draw Tranche B Commitment” means as to
any Lender (a) the amount set forth opposite such Lender’s name on Schedule
I hereto as such Lender’s “Delayed Draw Tranche B Commitment” or (b) if
such Lender has entered into any Assignment and Acceptance, the amount set forth
for such Lender in the Register maintained by the Agent pursuant to Section
8.07(d) as such Lender’s “Delayed Draw Tranche B Commitment”, as such
amount may be reduced pursuant to Section 2.05.  The aggregate Delayed Draw Tranche B
Commitment on the Closing Date is $263,000,000.

 9
 

“Designated Assets” means those assets listed
as items 1 and 2 on Schedule 5.02(e) and those assets listed in the Side
Letter.

“Disposition” has the meaning provided in the
definition of “Permitted Disposition Transaction.”

“Dividend” means with respect to any Person
that such Person has declared or paid a dividend or returned any equity capital
to the holders of its Equity Interests or authorized or made any other
distribution, payment or delivery of property (other than common stock of such
Person) or cash to the holders of its Equity Interests as such, or redeemed,
retired, purchased or otherwise acquired, directly or indirectly, for consideration
any of its Equity Interests outstanding (or any options or warrants issued by
such Person with respect to its Equity Interests), or set aside any funds for
any of the foregoing purposes, or shall have permitted any of its Subsidiaries
to purchase or otherwise acquire for consideration any of the Equity Interests
of such Person outstanding (or any options or warrants issued by such Person
with respect to its Equity Interests). 
Without limiting the foregoing, “Dividends” with respect to any Person
shall also include (i) all payments made or required to be made by such Person
with respect to any stock appreciation rights, plans, equity incentive or
achievement plans or any similar plans or setting aside of any funds for the
foregoing purposes and (ii) contributions to the ESOP.

“Documentation Agents” has the meaning assigned
to such term in the preamble hereto.

“Dollars” and the “$” sign each means
lawful currency of the United States of America.

“Domestic Lending Office” means, with respect
to any Lender, the office of such Lender specified as its “Domestic Lending
Office” opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Lender, or such other office of such
Lender as such Lender may from time to time specify to Borrower and the Agent.

“Domestic Subsidiary” means any Subsidiary that
is organized or existing under the laws of the United States, any state thereof
or the District of Columbia; provided, that the definition of “Domestic
Subsidiary” shall exclude any such Subsidiary that is a direct or indirect
Subsidiary of a Foreign Subsidiary.

“EBITDA” means, for any period, and with
respect to Borrower and its Subsidiaries, Consolidated net income (or net loss)
of Borrower and its Subsidiaries, exclusive of, without duplication, (w) the
income or loss resulting from extraordinary items for such period, and all
losses or gains resulting from non-cash, non-operating items and one-time
charges, (x) the income of any PDT Entity and any Person accounted for by
Borrower or any of its Subsidiaries on the equity method for such period, but
any such income so excluded may be included in such period or any later period
to the extent of any cash dividends or distributions actually paid in the
relevant period or any later period to Borrower or any Subsidiary of Borrower,
(y) whether or not recurring, non-cash charges and, non-cash stock-based
compensation charges determined in accordance with GAAP during such period, and
whether or not recurring, non-cash retirement expense, including such expense
from ESOP, pension and cash balance plans and (z) expected or actual gains
resulting from the disposition of discontinued operations, (excluding in the
case of clauses (w) and (y) (i) any non-cash charge representing an accrual or
a reserve for potential cash charges in any future period and (ii) the accrual
of revenue or recording of receivables in the ordinary course of business), plus
the sum of (a) Consolidated Interest Expense of Borrower and its Subsidiaries
for such period, (b) Consolidated income tax expense of Borrower and its
Subsidiaries for such period, (c) depreciation expense of Borrower and its
Subsidiaries for such period, (d) amortization expense of Borrower and its
Subsidiaries for such period, in each case determined in accordance with GAAP
for such period, (e) transaction fees and costs associated or incurred by
Borrower or any of its Subsidiaries in connection 

 10
 

with the First Step Transactions, the Second Step
Transactions and Borrower’s existing credit facilities, (f) for the four
quarter periods ending December 30, 2007, March 30, 2008, June 29, 2008 and
September 28, 2008, $60.0 million in each such four quarter period consisting
of pro forma cash savings resulting from termination of contributions into the
Tribune Company 401(k) Savings and Profit Sharing Plan, (g) expected or
actual losses resulting from the disposition of discontinued operations and (h)
to the extent deducted in calculating Consolidated net income (or net loss) of
Borrower and its Subsidiaries, Dividends by Borrower to the ESOP to the extent
the amount so Dividended to the ESOP is used to fund the ESOP Note Repayment
Amounts (and to the extent such ESOP Note Repayment Amounts are themselves not
included in Consolidated net income (or net loss) of Borrower and its
Subsidiaries).

Other than for purposes of calculating Excess Cash
Flow, EBITDA shall be calculated on a Pro Forma Basis.

“Eligible Assignee” means (i) a Lender, (ii) an
Affiliate of a Lender, (iii) an Approved Fund, and (iv) any other bank or
financial institution approved by the Agent, each Issuing Bank (in the case of
any assignment of Revolving Credit Commitments) and Borrower (such approval not
to be unreasonably withheld or delayed); provided, however, that
neither Borrower nor an Affiliate of Borrower shall qualify as an Eligible Assignee.

“Employee Benefit Plan” means an employee
benefit plan (as defined in Section 3(3) of ERISA) that is maintained or
contributed to by a Company or with respect to which a Company could incur
liability.

“Environmental Action” means any action, suit,
demand, demand letter, claim, notice of non-compliance or violation, notice of
liability or potential liability, investigation, proceeding, consent order or
consent agreement relating in any way to any Environmental Law, Environmental
Permit or Hazardous Materials or arising from alleged injury or threat to
health, safety or the environment relating to Hazardous Materials, including,
without limitation, (a) by any governmental or regulatory authority for
enforcement, cleanup, removal, response, remedial or other actions or damages
and (b) by any governmental or regulatory authority or any third party for
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief.

“Environmental Law” means any federal, state,
local or foreign statute, law, ordinance, rule, regulation, code, order,
judgment, decree or judicial interpretation or any binding agency interpretation,
policy or guidance relating to pollution or protection of the environment,
health, safety or natural resources, including, without limitation, those relating
to the use, handling, transportation, treatment, storage, disposal, release or
discharge of Hazardous Materials.

“Environmental Permit” means any permit,
approval, identification number, license or other authorization required under
any Environmental Law.

“Equity Interests” means (i) shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person or (ii) any warrants, options or other rights to acquire such
shares or interests.

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.

“ERISA Affiliate” means any Person that is a
member of Borrower’s controlled group, or under common control with Borrower,
within the meaning of Section 414 of the Code.

 11
 

“ERISA Event” means (a) (i) the occurrence of a
reportable event, within the meaning of Section 4043 of ERISA, with respect to
any Plan unless the 30-day notice requirement with respect to such event has
been waived by the PBGC, or (ii) the requirements of subclause (1) of Section
4043(b) of ERISA (without regard to subclause (2) of such Section) are met with
respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA,
of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such
Plan within the following 30 days; (b) the application for a minimum funding
waiver with respect to a Plan; (c) the provision by the administrator of any
Plan of a notice of intent to terminate such Plan pursuant to Section
4041(a)(2) of ERISA (including any such notice with respect to a plan amendment
referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a
facility of Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by Borrower or any ERISA Affiliate
from a Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for the
imposition of a lien under Section 302 or Section 303 of ERISA shall have
been met with respect to any Plan; (g) the adoption of an amendment to a Plan
requiring the provision of security to such Plan pursuant to Section 307 of
ERISA; (h) the institution by the PBGC of proceedings to terminate a Plan
pursuant to Section 4042 of ERISA, or the occurrence of any event or condition
described in Section 4042 of ERISA that constitutes grounds for the termination
of, or the appointment of a trustee to administer, a Plan or (i) the
receipt by a Loan Party, a Subsidiary or a PDT Entity of any notice concerning
the imposition of liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined
in Part 1 of Subtitle E of Title IV of ERISA, or a determination that
a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

“ESOP” means the Tribune Employee Stock Ownership
Plan.

“ESOP Documentation” means, collectively (a)
the Tribune Employee Stock Ownership Plan, effective as of January 1,
2007, (b) the Tribune Employee Stock Ownership Trust, dated April 1, 2007,
(c) the ESOP Loan Agreement, ESOP Loan and ESOP Pledge Agreement,
(d) the ESOP Purchase Agreement, (e) Acquisition Agreement, (f) Investor
Rights Agreement and (g) all amendments, supplements or other modifications to
the foregoing, all schedules, exhibits and annexes thereto and all agreements
affecting the terms thereof or entered into in connection therewith.

“ESOP Investment” means the purchase by the
ESOP of $250.0 million of Tribune common equity made by the ESOP on April 1,
2007.

“ESOP Loan” means the extension of credit made
under the ESOP Note and the ESOP Loan Agreement.

“ESOP Loan Agreement” means the ESOP Loan
Agreement, dated as of April 1, 2007, by and between Borrower and GreatBanc Trust
Company, not in its individual or corporate capacity, but solely as trustee of
the ESOP Trust, which implements and forms a part of the ESOP, as the same may
be supplemented, amended, restated or otherwise modified from time to time.

“ESOP Note” means the ESOP’s 30-year amortizing
5.01% note as in effect on the Closing Date.

“ESOP Note Repayment Amounts” means, for any
period, the aggregate amount of principal and interest payments due to Borrower
in respect of the ESOP Note.

“ESOP Pledge Agreement” means the ESOP Pledge
Agreement made April 1, 2007, between GreatBanc Trust Company, not in its
individual or corporate capacity but solely in its capacity as 

 12
 

trustee of the ESOP Trust which forms a part of the
ESOP and Borrower, as the same may be supplemented, amended, restated or
otherwise modified from time to time.

“ESOP Purchase Agreement” means the ESOP Purchase
Agreement made April 1, 2007, between Borrower and GreatBanc Trust
Company, as trustee of the ESOP Trust, a separate trust created under the ESOP,
as the same may be amended, restated or otherwise modified from time to time.

“ESOP Related Distributions” means payments,
loans, advances, distributions or dividends made by Borrower to satisfy its
obligations to repurchase Borrower’s common stock pursuant to the ESOP
Documentation or ERISA (including contributions to the ESOP to enable the ESOP
to purchase common stock that Borrower would otherwise be required to purchase
under the ESOP Documentation or ERISA).

“ESOP Trust” means the Tribune Employee Stock
Ownership Trust, dated April 1, 2007.

“Eurocurrency Liabilities” has the meaning assigned
to that term in Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

“Eurodollar Lending Office” means, with respect
to any Lender, the office of such Lender specified as its “Eurodollar Lending
Office” opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Lender (or, if no such office is
specified, its Domestic Lending Office), or such other office of such Lender as
such Lender may from time to time specify to Borrower and the Agent.

“Eurodollar Rate” means, for any Interest
Period for each Eurodollar Rate Advance comprising part of the same Borrowing,
an interest rate per annum equal to the rate per annum obtained by dividing (a)
the rate per annum (rounded upward to the nearest whole multiple of 1/16 of 1%
per annum) appearing on Reuters LIBOR 01 (or any successor page) as the London
interbank offered rate for deposits in U.S. dollars at approximately 11:00 A.M.
(London time) two Business Days prior to the first day of such Interest Period
for a term comparable to such Interest Period or, if for any reason such rate
is not available, the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple) of the rate per annum
at which deposits in U.S.  dollars are
offered by the principal office of each of the Reference Banks in London,
England to prime banks in the London interbank market at 11:00 A.M. (London
time) two Business Days before the first day of such Interest Period in an
amount substantially equal to such Reference Bank’s Eurodollar Rate Advance
comprising part of such Borrowing to be outstanding during such Interest Period
and for a period equal to such Interest Period by (b) a percentage equal to
100% minus the Eurodollar Rate Reserve Percentage for such Interest
Period.  If the Reuters LIBOR 01 (or any
successor page) is unavailable, the Eurodollar Rate for any Interest Period for
each Eurodollar Rate Advance comprising part of the same Borrowing shall be
determined by the Agent on the basis of applicable rates furnished to and
received by the Agent from the Reference Banks two Business Days before the
first day of such Interest Period, subject, however, to the provisions
of Section 2.08.

“Eurodollar Rate Advance” means an Advance that
bears interest as provided in Section 2.07(a)(ii).

“Eurodollar Rate Reserve Percentage” for any
Interest Period for all Eurodollar Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days before the
first day of such Interest Period under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve re-

 13

quirement) for a member bank of the Federal Reserve
System in New York City with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of liabilities
that includes deposits by reference to which the interest rate on Eurodollar
Rate Advances is determined) having a term equal to such Interest Period.

“Events of Default” has the meaning specified
in Section 6.01.

“Excess Cash Flow” shall mean, for any fiscal
year, EBITDA for such fiscal year, minus, without duplication:

(a)           Debt
Service for such fiscal year;

(b)           any
prepayments of Term Advances or Borrower Acquisition Bridge Loans, any
prepayments of Revolving Credit Advances and Swingline Advances to the extent
accompanied by corresponding permanent reductions in the Revolving Credit
Commitments, and any prepayments of other Debt for Borrowed Money, during such
fiscal year, in each case other than amounts already reflected in Debt Service;

(c)           Capital
Expenditures during such fiscal year (excluding Capital Expenditures made in
such fiscal year where a certificate in the form contemplated by the following
clause (d) was previously delivered) that are paid in cash;

(d)           Capital
Expenditures that Borrower or any of its Subsidiaries shall, during such fiscal
year, become obligated to make but that are not made during such fiscal year; provided
that Borrower shall deliver a certificate to the Agent not later than
90 days after the end of such fiscal year, signed by a financial officer
of Borrower and certifying that such Capital Expenditures will be made in the
following fiscal year;

(e)           the
aggregate amount of expenditures made in cash during such period pursuant to Sections 5.02(h)(v)
and (x) and 5.02(f)(vi);

(f)            Taxes
of Borrower and its Subsidiaries that were paid in cash during such fiscal year
or will be paid within six months after the end of such fiscal year and for
which reserves have been established in accordance with GAAP;

(g)           the
absolute value of the difference, if negative, of the amount of Net Working
Capital at the end of the prior fiscal year (or the beginning of the fiscal
year in the case of 2008) over the amount of Net Working Capital at the end of
such fiscal year;

(h)           losses
resulting from (i) non-ordinary course Asset Sales and related tax impact and
(ii) extraordinary losses together with any tax effect, in each case, paid in
cash during such fiscal year excluded from Consolidated net income;

(i)            to
the extent (x) deducted in determining Consolidated net income and added back
to determine EBITDA or (y) not deducted in determining EBITDA, in each case,
the aggregate amount of expenditures made in cash during such period pursuant
to Sections 5.02(g)(ii), (iii), (vii) and (ix);

(j)            the
aggregate amount of all net cash payments received (i) under any Hedge
Agreements and (ii) in respect of reserves relating to a prior fiscal year;

 14
 

(k)           without
duplication of any of clauses (a) – (j) and (l) through (n)
of this definition, any amounts paid in connection with an Asset Sale for
indemnification obligations, which obligations are not deducted from the definition
of “Net Cash Proceeds”;

(l)            to
the extent included in EBITDA, proceeds from any sale of certain Equity Interests
held by Borrower or its Subsidiaries listed in the Side Letter;

(m)          to
the extent included in EBITDA, the aggregate amount of cash proceeds received
by Borrower after April 1, 2007 and prior to any date of determination from the
litigation and proceedings listed in the Side Letter; and

(n)           to
the extent added to determine EBITDA, all items that did not result from a cash
payment to Borrower or any of its Subsidiaries on a consolidated basis during
such fiscal year;

provided that any amount deducted
pursuant of any of the foregoing clauses that will be paid after the close of
such fiscal year shall not be deducted again in a subsequent fiscal year; plus,
without duplication:

(i)            the difference, if
positive, of the amount of Net Working Capital at the end of the prior fiscal
year (or the beginning of the fiscal year in the case of 2008) over the amount
of Net Working Capital at the end of such fiscal year;

(ii)           all proceeds received
during such fiscal year of any Debt (other than Debt under this Agreement) to
the extent used to finance any Capital Expenditure or prepayments of Debt for
Borrowed Money, in each case to the extent there is a corresponding deduction
to Excess Cash Flow above in respect of the use of such borrowings;

(iii)          to the extent any
permitted Capital Expenditures referred to in clause (d) above do not occur in
the fiscal year specified in the certificate of Borrower provided pursuant to
clause (d) above, such amounts of Capital Expenditures that were not so made in
the fiscal year specified in such certificates;

(iv)          any return on
investments received in cash (other than from a Subsidiary) during such period,
which investments were made pursuant to Section 5.02(h)(v), (x)
or (xvi);

(v)           income or gain excluded
from consolidated net income resulting from (a) non-ordinary course Asset Sales
and any related provision for taxes on such gain or (b) extraordinary gains and
any related provision for taxes, in each case realized in cash during such
fiscal year (except to the extent such gain is subject to Section 2.10(b)(iii));

(vi)          if deducted in the
computation of EBITDA, cash interest income; and

(vii)         to the extent subtracted
in determining EBITDA, all items that did not result from a cash payment by
Borrower or any of its Subsidiaries on a consolidated basis during such fiscal
year.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time.

“Exemption Certificate” has the meaning
specified in Section 2.14(e)(ii).

 15
 

“Existing Notes” means the Medium Term Notes
and Borrower’s 4.875% senior notes due 2010, 7.25% senior debentures due 2013,
5.25% senior notes due 2015, 7.5% senior debentures due 2023, 6.25% series D
medium-term notes due 2026, 6.61% senior debentures due 2027 and 7.25% senior debentures
due 2096.

“Facility” means the Revolving Credit Facility,
the Letter of Credit Facility, the Tranche X Facility or the Tranche B Facility.

“FCC” means the Federal Communications
Commission, as established by the Communications Act of 1934.

“Federal Funds Rate” means, for any period, a
fluctuating interest rate per annum equal for each day during such period to
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average of the
quotations for such day on such transactions received by the Agent from three
Federal funds brokers of recognized standing selected by it.

“First Step Transactions” means (i) the Stock
Repurchase, (ii) the Refinancing, (iii) the Initial Zell Investment and
issuance of the Zell Note, (iv) the formation of the ESOP, (v) the execution
and delivery of the Acquisition Agreement, (vi) the ESOP Investment, (vii) the
execution, delivery and performance by the Loan Parties of the Loan Documents
to which they are a party and the making of the credit extensions hereunder to
be made on the Closing Date, (viii) the ESOP Loan and the pledge of shares by
ESOP to secure the ESOP Loan, (ix) the Tribune Finance LLC Transaction and the
Broadcasting Holdco Transaction, (x) all other transactions necessary to effect
or incidental to the foregoing and (xi) the payment of fees, costs and expenses
related to the foregoing.

“Foreign Subsidiary” shall mean a Subsidiary
that is organized under the laws of a jurisdiction other than the United States
or any state thereof or the District of Columbia.

“Fund” means any Person (other than a natural person)
that is (or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit in the ordinary
course of its business.

“GAAP” has the meaning specified in Section
1.03.

“Governmental Authority” means the government
of the United States, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to
government.

“Guarantee” means that certain guarantee
agreement dated the Closing Date among Borrower, the Guarantors and the Agent
substantially in the form of Exhibit F hereto.

“Guaranteed Debt” has the meaning specified in
the definition of “Debt”.

“Guarantor” means each Domestic Subsidiary of
Borrower listed on Schedule 1.01(e) and each other Subsidiary of Borrower
that is required to become a Guarantor after the Closing Date pursuant to Section
5.01(l) and any other Subsidiary designated as a Guarantor by
Borrower.  Borrower will provide to the
Agent a supplement to Schedule 1.01(e) such that on the Closing Date, Schedule
1.01(e) lists

 16
 

each Domestic Subsidiary of Borrower existing on the
Closing Date other than Tribune License Inc., Multimedia Insurance Company, a
captive insurance Subsidiary, and each Immaterial Subsidiary of Borrower.

“Hazardous Materials” means (a) petroleum and
petroleum products, byproducts or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls and radon gas and (b)
any other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental
Law.

“Hedge Agreements” means interest rate swap,
cap or collar agreements, interest rate future or option contracts, currency
swap agreements, currency future or option contracts and other similar agreements.

“Hedging Obligations” means obligations under
or with respect to Hedge Agreements.

“Immaterial Subsidiary” means, at any time of
determination, any Subsidiary of the Borrower that (i) has total annual
revenues and total assets of less than $10,000,000 for the immediately preceding
period of 12 consecutive fiscal months and (ii) does not have any Debt in
respect of which the Borrower or any Subsidiary of the Borrower shall have any
Guaranteed Debt or has not granted or permitted to exist any Lien on any of the
Borrower’s or any of its wholly owned Subsidiaries’ assets.

“Increase Effective Date” has the meaning specified
in Section 2.17(a).

“Increase Joinder” means a joinder agreement executed
by Borrower, the Agent and each Lender making increased or new Commitments
pursuant to Section 2.17, in form and substance reasonably satisfactory
to each of them.

“Incremental Term Advance” has the meaning
specified in Section 2.17(c).

“Incremental Term Borrowing” means a borrowing
(other than a Conversion) consisting of simultaneous Incremental Term Advances
of the same Type made by the applicable Lenders.

“Incremental Term Commitment” has the meaning
specified in Section 2.17(a).

“Indemnified Party” has the meaning specified
in Section 8.04(b).

“Information Memorandum” means the information
memorandum dated April 2007 used by the Agent in connection with the
syndication of the Commitments.

“Initial GAAP” has the meaning specified in Section
1.03.

“Initial Issuing Bank” means with respect to
standby Letters of Credit, JPMorgan Chase Bank, N.A., in its capacity as an
issuer of Letters of Credit hereunder, and its successors in such capacity as
provided in Section 2.03(g), and any other Revolving Credit Lender
approved by the Agent and the Borrower (such approvals not to be unreasonably
withheld) which has agreed to act as an Issuing Bank hereunder.  Each Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of such
Issuing Bank, in which case the term “Issuing Bank” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate and,
except as otherwise agreed to by such Issuing Bank, all payments required to be
made to such Issuing Bank hereunder with respect to Letters of Credit issued by
such Issuing Bank shall instead be made to the Affiliate that issued such
Letter of Credit.

 17
 

“Initial Lenders” means those Lenders listed
under the heading “Initial Lenders” in the signature pages hereto.

“Initial Tranche B Advance” has the meaning assigned
to such term in Section 2.01(c).

“Initial Tranche B Commitment” means as to any
Lender (a) the amount set forth opposite such Lender’s name on Schedule I
hereto as such Lender’s “Initial Tranche B Commitment” or (b) if such Lender
has entered into any Assignment and Acceptance, the amount set forth for such
Lender in the Register maintained by the Agent pursuant to Section 8.07(d)
as such Lender’s “Initial Tranche B Commitment”, as such amount may be reduced
pursuant to Section 2.05.  The
aggregate Initial Tranche B Commitment on the Closing Date is $5,515,000,000.

“Initial Zell Investment” means the investment
by EGI-TRB, L.L.C. in Borrower of $250.0 million with respect to the purchase
of $50.0 million of Borrower common equity and the Zell Note.

“Intellectual Property” has the meaning
specified in Section 4.01(i).

“Intercompany Junior Subordinated Notes” means
the junior subordinated notes of certain Guarantors issued to Tribune Finance,
LLC on the Closing Date in an aggregate principal amount of not less than $3.0
billion.

“Interest Coverage Ratio” means, for any Test
Period, a ratio of Consolidated EBITDA of Borrower and its Subsidiaries for
such period to Cash Interest Expense of Borrower and its Subsidiaries during
such period.

“Interest Period” means, for each Eurodollar
Rate Advance comprising part of the same Borrowing, the period commencing on
the date of such Eurodollar Rate Advance or the date of the Conversion of any
Base Rate Advance into such Eurodollar Rate Advance and ending on the last day
of the period selected by Borrower pursuant to the provisions below and,
thereafter, with respect to Eurodollar Rate Advances, each subsequent period
commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the period selected by Borrower pursuant to the
provisions below.  The duration of each
such Interest Period shall be one, two, three or six months or subject to
clause (c) of this definition, nine or twelve months, as Borrower may, upon
notice received by the Agent not later than 12:00 noon (New York City time) on
the third Business Day prior to the first day of such Interest Period, select; provided,
however, that:

(a)           Borrower
may not select any Interest Period for (i) any Revolving Credit Borrowing that
ends after the Revolving Credit Commitment Termination Date, (iii) any Tranche
X Borrowing that ends after the Tranche X Maturity Date or (ii) any Tranche B
Borrowing or Incremental Term Borrowing that ends after the Tranche B Maturity
Date;

(b)           Interest
Periods commencing on the same date for Eurodollar Rate Advances comprising
part of the same Borrowing shall be of the same duration;

(c)           Borrower
shall not be entitled to select an Interest Period having duration of nine or
twelve months unless, by 2:00 P.M. (New York City time) on the third Business
Day prior to the first day of such Interest Period, each Lender notifies the
Agent that such Lender will be providing funding for such Borrowing with such
Interest Period (the failure of any Lender to so respond by such time being
deemed for all purposes of this Agreement as an objection by such Lender to the
requested duration of such Interest Period); provided that, if any or
all of the Lenders

 18
 

object to the requested
duration of such Interest Period, the duration of the Interest Period for such
Borrowing shall be one, two, three or six months, as specified by Borrower requesting
such Borrowing in the applicable Notice of Borrowing as the desired alternative
to an Interest Period of nine or twelve months;

(d)           whenever
the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur
on the next succeeding Business Day, provided, however, that, if
such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur
on the next preceding Business Day; and

(e)           whenever
the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month.

“Investment” has the meaning specified in Section
5.02(h).

“Investment Reduction Amount” means, on any
date of determination, the sum of (a) the aggregate amount of Junior Capital
(other than the Zell Note, the Initial Zell Investment, the Zell Sub Note as
contemplated on the Closing Date or any additional Investments made to finance
the Stock Repurchase, the Refinancing, the Acquisition and the payment of
related fees and expenses) issued prior to or on such date of determination plus
(b) 50% of Special Proceeds received before such date of determination plus
(c) the aggregate amount of cash proceeds received by Borrower after April 1,
2007 and prior to such date of determination from the litigation and
proceedings listed in the Side Letter and designated (at the time such proceeds
are received) by Borrower to be included in the Junior Capital Reduction Amount
and Investment Reduction Amount.

“Investor Rights Agreement” means the Investor
Rights Agreement dated April 1, 2007 by and among Borrower, EGI-TRB, L.L.C. and
GreatBanc Trust Company, not in its individual or corporate capacity, but
solely as trustee of the ESOP Trust, which implements and forms a part of the
ESOP, as the same may be supplemented, amended, restated or otherwise modified
from time to time.

“Issuance” with respect to any Letter of Credit
means the issuance, amendment, renewal or extension of such Letter of Credit
pursuant to Section 2.03.

“Issuing Bank” means an Initial Issuing Bank or
any Eligible Assignee approved by Borrower (such approval not to be
unreasonably withheld) to which a portion of the Letter of Credit Commitment
hereunder has been assigned pursuant to Section 8.07 or any other
Revolving Credit Lender (or any of its Affiliates) so long as such Eligible
Assignee or other Revolving Credit Lender (or such Affiliate) expressly agrees
to perform in accordance with their terms all of the obligations that by the
terms of this Agreement are required to be performed by it as an Issuing Bank
and notifies the Agent of its Applicable Lending Office (which information
shall be recorded by the Agent in the Register), for so long as such Initial
Issuing Bank, Eligible Assignee or other Revolving Credit Lender (or such
Affiliate), as the case may be, shall have a Letter of Credit Commitment.

“Junior Capital” means (i) common equity of Borrower
that does not (a) provide for scheduled payments of dividends in cash prior to
the date that is one year after the Tranche B Maturity Date or (b) become
mandatorily redeemable pursuant to a sinking fund obligation or otherwise prior
to the date that is one year after the Tranche B Maturity Date and (ii) Debt of
Borrower that (a) is unsecured

 19
 

and not Guaranteed by any Subsidiary, (b) is expressly
subordinated to the prior payment in full in cash of the Secured Obligations on
terms reasonably satisfactory to the Agent (it being agreed that the subordination
provisions of the Zell Note (taken together with Section 5.02(j)(i)(w))
are satisfactory to the Agent), (c) has a final maturity date that is not
earlier than, and provides for no scheduled payments of principal or mandatory
redemption obligations prior to, the date that is one year after the Tranche B
Maturity Date and (d) provides for payments of interest solely in-kind
until the date that is one year after the Tranche B Maturity Date.

“Junior Capital Reduction Amount” means, on any
date of determination, the result of (a) 50% of Special Proceeds received
before such date of determination plus (b) the aggregate amount of cash
proceeds received by Borrower after April 1, 2007 from the litigations and
proceedings listed in the Side Letter and designated (at the time such proceeds
are received) by Borrower to be included in the Junior Capital Reduction Amount
and Investment Reduction Amount minus (c) the Investment Reduction
Amount (calculated without giving effect to clause (a) thereof) to the extent
such amount was actually applied to reduce the Zell Investment Amount minus
(d) the amount of dividends previously made of the type described in Section
5.02(g)(viii)  minus (e) the principal amount of Junior Capital
repurchased pursuant to Section 5.02(j)(i)(w) before such date of determination.

“L/C Cash Deposit Account” means an interest
bearing cash deposit account to be established and maintained by the Agent,
over which the Agent shall have sole dominion and control, upon terms as may be
reasonably satisfactory to the Agent.

“L/C Disbursement” has the meaning specified in
Section 2.03(c).

“L/C Related Documents” has the meaning specified
in Section 2.03(f)(i).

“Lead Arrangers” has the meaning specified in
the preamble.

“Lenders” means, at any time, each Revolving
Credit Lender, each Tranche X Lender, each Tranche B Lender, each Issuing Bank,
the Swing Line Lender and, without duplication, each Eligible Assignee that
shall become a party hereto pursuant to Section 2.17 and each other
Person that shall become a party hereto pursuant to Section 8.07.

“Letter of Credit” means, at any time, a letter
of credit issued by an Issuing Bank pursuant to Section 2.01(b).

“Letter of Credit Agreement” has the meaning
specified in Section 2.03(a).

“Letter of Credit Commitment” means, with
respect to each Issuing Bank, the obligation of such Issuing Bank to issue
Letters of Credit for the account of Borrower and its Subsidiaries in (a) the
Dollar amount set forth opposite each Issuing Bank’s name on Schedule I
hereto under the caption “Letter of Credit Commitment” or (b) if such Issuing
Bank has entered into one or more Assignment and Acceptances, the Dollar amount
set forth for such Issuing Bank in the Register maintained by the Agent pursuant
to Section 8.07(d) as such Issuing Bank’s “Letter of Credit Commitment”,
in each case as such amount may be reduced prior to such time pursuant to Section
2.05.

“Letter of Credit Facility” means, at any time,
an amount equal to the least of (a) the aggregate amount of the Issuing Banks’
Letter of Credit Commitments at such time, (b) $250,000,000 and (c) the
aggregate amount of the Unused Revolving Credit Commitments at such time, as
such amount may be reduced at or prior to such time pursuant to Section 2.05.

 20
 

“Lien” means any lien, security interest or
other charge of any kind, or any other type of preferential arrangement
intending to have the effect of a lien or security interest, including, without
limitation, (x) any lien or retained security title of a conditional vendor,
(y) any easement, right of way or other encumbrance on title to real property
and (z) any assignment of income or proceeds intended to secure Debt for Borrowed
Money.

“Loan Documents” means this Agreement, the
Pledge Agreement and the Notes, in each case as the same may be amended,
restated or otherwise modified from time to time.

“Loan Parties” means, collectively, Borrower
and each Guarantor that is a party to a Loan Document.

“Material Adverse Effect” means (a) prior to
the earlier to occur of the consummation of the Acquisition and the termination
of the Acquisition Agreement in accordance with its terms (including, without
limitation, for purposes of any representation and warranty made, or any
condition required to be satisfied, on the Second Step Closing Date), except as
disclosed in the SEC Reports filed prior to April 1, 2007 (other than risk
factors and similar cautionary disclosure contained therein under the headings “Risk
Factors” or “Forward-Looking Statements” or under any similar heading), or as
disclosed in the “company disclosure schedule” to the Acquisition Agreement, a
Company Material Adverse Effect and (b) thereafter, a material adverse effect
on (i) the business, operations or financial condition of Borrower and its
Subsidiaries taken as a whole (after giving effect to the Transactions), (ii)
the rights and remedies of the Agent or any Lender under the Loan Documents or
(iii) the ability of Borrower and the other Loan Parties (taken as a whole) to
perform its obligations under the Loan Documents.

“Material Debt” means Debt with an outstanding
principal amount of $75.0 million or more.

“Medium Term Notes” means the following medium-term
notes of Borrower:  (i) the 6.35% Series
E Medium-Term Notes issued on February 3, 1998 and maturing on February 1, 2008
with an initial face amount of $25,000,000, (ii) the 5.50% Series E Medium-Term
Notes issued on October 6, 1998 and maturing on October 6, 2008 with an initial
face amount of $167,915,000 and (iii) the 5.67% Series E Medium-Term Notes
issued on December 8, 1998 and maturing on December 8, 2008 with an initial
face amount of $69,550,000.

“Medium Term Notes Final Maturity Date” means
December 8, 2008.

“Merger Sub” shall mean Tesop Corporation, a
Delaware corporation wholly owned by the ESOP.

“Moody’s” means Moody’s Investors Service, Inc.
or any successor thereto.

“Multiemployer Plan” means a multiemployer
plan, as defined in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA
Affiliate is making or had an obligation to make contributions, has within any
of the preceding five plan years made or has an obligation to make
contributions or with respect to which Borrower or any ERISA Affiliate could
have liability.

“Multiple Employer Plan” means a single
employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained
for employees of Borrower or any ERISA Affiliate and at least one Person other
than Borrower and the ERISA Affiliates or (b) was so maintained and in respect
of which Borrower or any ERISA Affiliate could have liability under Section
4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 21
 

“Net Cash Proceeds”
means

(a)           with
respect to any Asset Sale (other than any issuance or sale of Equity Interests),
the cash proceeds received by Borrower or any of its Subsidiaries (including
cash proceeds subsequently received (as and when received by Borrower or any of
its Subsidiaries) in respect of non-cash consideration initially received) net
of (i) selling expenses (including reasonable brokers’ fees or
commissions, legal, accounting and other professional and transactional fees,
transfer and similar taxes and Borrower’s good faith estimate of income taxes
paid or payable in connection with such sale); (ii) amounts provided as a
reserve, in accordance with GAAP, against (x) any liabilities under any
indemnification obligations associated with such Asset Sale or (y) any
other liabilities retained by Borrower or any of its Subsidiaries associated
with the properties sold in such Asset Sale (provided that, to the
extent and at the time any such amounts are released from such reserve (other
than in satisfaction of any such liabilities), such amounts shall constitute Net
Cash Proceeds); (iii) Borrower’s good faith estimate of payments required
to be made with respect to unassumed liabilities relating to the properties
sold within 90 days of such Asset Sale (provided that, to the
extent such cash proceeds are not used to make payments in respect of such
unassumed liabilities within 90 days of such Asset Sale, such cash
proceeds shall constitute Net Cash Proceeds); (iv) the principal amount,
premium or penalty, if any, interest and other amounts on any Debt for Borrowed
Money which is secured by a Lien on the properties sold in such Asset Sale and
which is repaid with such proceeds (other than any such Debt assumed by the
purchaser of such properties); and (v) the amount of any proceeds of such
Asset Sale that Borrower or any Subsidiary has reinvested (or intends to
reinvest within the Reinvestment Period) in the business of Borrower or any of
the Subsidiaries; provided that any portion of such proceeds that has
not been so reinvested within such Reinvestment Period (with respect to such
Prepayment Event, the “Deferred Net Cash Proceeds”) shall (x) be
deemed to be Net Cash Proceeds of an Asset Sale occurring on the last day of
such Reinvestment Period, and (y) be applied to the repayment of Advances
in accordance with Section 2.10(b);

(b)           with
respect to any incurrence of Debt for Borrowed Money or any issuance or sale of
Equity Interests by Borrower or any of its Subsidiaries, the cash proceeds
thereof, net of customary fees, commissions, costs and other expenses incurred
in connection therewith; and

(c)           with
respect to any Casualty Event, the cash insurance proceeds, condemnation awards
and other compensation received in respect thereof, net of all reasonable costs
and expenses incurred in connection with the collection of such proceeds,
awards or other compensation in respect of such Casualty Event net of any
proceeds, awards or other compensation in respect of such Casualty Event that
Borrower or any Subsidiary has reinvested (or intends to reinvest within the
Reinvestment Period) (with respect to such Prepayment Event, the “Deferred
Net Cash Proceeds”) in the business of Borrower or any of the Subsidiaries;
provided that any portion of such proceeds, awards or other compensation
that has not been so reinvested within such Reinvestment Period shall (x) be
deemed to be Net Cash Proceeds of a Casualty Event occurring on the last day of
such Reinvestment Period, and (y) be applied to the repayment of Advances in
accordance with Section 2.10(b).

“Net Working Capital” means, at any time,
without regard to changes due to reclassifications in accordance with GAAP or
purchase accounting, Consolidated Current Assets at such time minus
Consolidated Current Liabilities.

“Non-Consenting Lender” has the meaning provided
in Section 8.01.

 22
 

“Non-Excluded Taxes” means any Taxes other than
(i) net income and franchise taxes imposed with respect to the Agent or
any Lender by the Governmental Authority under the laws of which the Agent or
such Lender, as applicable, is organized or in which it maintains its applicable
lending office and (ii) any branch profits taxes imposed by the United States
or any similar tax imposed by any other jurisdiction in which Borrower is located.

“Non-U.S. Lender” means any Lender that is not
a “United States Person”, as defined under Section 7701(a)(30) of the Code.

“Note” means a Revolving Credit Note, a Tranche
X Note, a Tranche B Note or a Swing Line Note.

“Notice of Borrowing” has the meaning specified
in Section 2.02(a).

“Notice of Issuance” has the meaning specified
in Section 2.03(a).

“Obligations” means all unpaid principal of and
accrued and unpaid interest on the Advances made to Borrower or L/C
Disbursements made pursuant to Letters of Credit issued for the account of
Borrower, including on behalf of any of its Subsidiaries, all accrued and
unpaid fees (including pursuant to Section 2.04 of this Agreement) and
all expenses, reimbursements, indemnities and other obligations of the Loan
Parties to the Lenders or to any Lender, the Agent, an Issuing Bank or any indemnified
party, in each case arising under the Loan Documents (including interest and
fees accruing after commencement of any bankruptcy or insolvency proceeding
against any Loan Party, whether or not allowed in such proceeding).

“Organizational Documents” means, with respect
to any Person, (i) in the case of any corporation, the certificate of
incorporation and by-laws (or similar documents) of such Person, (ii) in
the case of any limited liability company, the certificate of formation and
operating agreement (or similar documents) of such Person, (iii) in the
case of any limited partnership, the certificate of formation and limited
partnership agreement (or similar documents) of such Person, (iv) in the
case of any general partnership, the partnership agreement (or similar
document) of such Person and (v) in any other case, the functional
equivalent of the foregoing.

“Other Taxes” means any and all stamp,
documentary or similar taxes, or any other excise or property taxes or similar
levies that arise on account of any payment being or being required to be made
hereunder or under any Note or from the execution, delivery, registration,
recording or enforcement of this Agreement or any Note.

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26,
2001, as amended from time to time.

“PBGC” means the Pension Benefit Guaranty Corporation
(or any successor).

“PDT Debt” has the meaning provided in the
definition of “Permitted Disposition Transaction.”

“PDT Entity” has the meaning provided in the
definition of “Permitted Disposition Transaction.”

 23
 

“Permitted Acquisition” means any transaction
for the (a) acquisition by a Guarantor of all or substantially all of the
property of any Person, or of any business or division of any Person; or
(b) acquisition (including by merger or consolidation) of the Equity
Interests of any Person that becomes a wholly owned Domestic Subsidiary after
giving effect such transaction; provided, that, for any acquisition over
$10,000,000, in the case of each of (a) and (b) each of the following conditions
shall be met:

(i)            no Event of Default
then exists or would result therefrom;

(ii)           after giving effect to such
transaction on a Pro Forma Basis, Borrower shall be in compliance with all
covenants set forth in Sections 5.02(i)(A) and (B) as of the
most recent Test Period (assuming if such transaction is to be consummated
prior to the last day of the first Test Period for which the covenants in Sections
5.02(i)(A) and (B) are required to be satisfied, the levels required
for such first Test Period shall be deemed to apply in determining compliance
with such covenants for purposes of this clause (ii));

(iii)          no Company (as defined
prior to giving effect to such transaction) shall, in connection with any such
transaction, assume or remain liable with respect to any Debt of the related
seller or the business, Person or properties acquired, except to the extent
permitted under Section 5.02(c);

(iv)          the Person, property or
business to be acquired shall be, or shall be engaged in, a business of the
type that Borrower and the Subsidiaries are permitted to be engaged in under Section 5.02(l);

(v)           all transactions in connection
therewith shall be consummated in accordance with all applicable law;

(vi)          with respect to any
transaction involving acquisition consideration of more than $100,000,000,
unless the Agent shall otherwise agree, Borrower shall have provided the Agent
and the Lenders with (A) historical financial statements for the last three
fiscal years (or, if less, the number of years since formation) of the person
or business to be acquired (audited if available) and unaudited financial
statements thereof for the most recent interim period which are available and
(B) reasonably detailed projections for the succeeding five years pertaining to
the person or business to be acquired and updated projections for Borrower after
giving effect to such transaction to the extent such projections have been
provided to Borrower; provided that at Borrower’s request, such
information may instead be provided to the Agent only (who will in turn make
such information to any Lender upon its reasonable request); provided  further
that the information will be deemed to be Borrower Information and will be subject
to Section 8.08;

(vii)         at least 10 Business Days
prior to the proposed date of consummation of the transaction, Borrower shall
have delivered to the Agent and the Lenders an officers’ certificate certifying
that (A) such transaction complies with this definition (which shall have
attached thereto reasonably detailed backup data and calculations showing such
compliance), and (B) such transaction could not reasonably be expected to
result in a Material Adverse Effect; and

(viii)        in the case of (b) above,
Borrower will cause such new Subsidiary to comply with Section 5.01(l)
(if applicable).

“Permitted
Disposition Transactions” means (i) any disposition of property by Borrower
or any of its Subsidiaries (including, without limitation, any Asset Sale) (a “Disposition”)
and (ii) any related incurrence of Debt (including any Debt secured by a Lien
on such property), merger or consolidation

 24
 

of any Subsidiary of
Borrower with or into any other Person (including, without limitation, with or
into Borrower), Dividends to Borrower or any of its Subsidiaries, Investments
in any other Person, prepayment, acquisition, exchange or other redemption of
Debt, in each case in connection with or for the purpose of effecting such
Disposition (any such related transaction, a “Related Transaction”); provided
that, for any such Disposition (or series of related Dispositions) involving
property with a fair market value of $10,000,000 or more, each of the following
conditions shall be met with respect to the Disposition and all Related Transactions:

(i)            after giving effect to
any such Disposition and all of its Related Transactions on a Pro Forma Basis
(including after giving effect to any prepayment made or required to be made
within six months thereafter pursuant to clause (v) of this definition),
Borrower shall be in compliance with all covenants set forth in Sections
5.02(i)(A) and (B) as of the most recent Test Period (assuming if
such transaction is to be consummated prior to the last day of the first Test Period
for which the covenants in Sections 5.02(i)(A) and (B) are
required to be satisfied, the levels required for such first Test Period shall
be deemed to apply in determining compliance with such covenants for purposes
of this clause (i)); provided that, solely for purposes of the
foregoing calculations in determining whether a Disposition and its Related
Transactions are permitted, all Debt incurred as a Related Transaction of such
Disposition (whether in the form of Guaranteed Debt or otherwise) by Borrower
or any of its Subsidiaries regardless of whether it would be included in
determining compliance with Sections 5.02(i)(A) and (B) shall be
included in the calculation required by this clause (i), except that
Debt incurred by Borrower and not by any Guarantor that is in the form of
either Guaranteed Debt of a third party to which property is being transferred
pursuant to the subject Disposition (the “Subject Transferee”) or an
obligation owed solely to the Subject Transferee shall not be required to be
included in the calculation required by this clause (i) if Borrower
delivers to the Agent and the Lenders an officers’ certificate to the effect
that the Subject Transferee is Solvent (determined as of the date of such
incurrence, treating the Subject Transferee as if it were Borrower for purposes
of the definition of Solvent and disregarding the benefit of Borrower’s
guarantee or loan) which certificate shall be in form and substance satisfactory
to the Agent;

(ii)           the aggregate fair market value of
property subject to Dispositions contemplated by this definition occurring in
any fiscal year shall not exceed an amount equal to (a) (1) 25% of Consolidated
Total Assets prior to the date all Tranche X Advances have been paid in full
and (2) thereafter, 15% of Consolidated Total Assets, in each case, as
disclosed on the face of Borrower’s audited financial statements for the
immediately preceding fiscal year minus (b) the aggregate fair market
value of all Asset Sales (other than Dispositions) permitted under Section
5.02(e)(ii) in the applicable fiscal year; provided that a
Disposition of any property referenced in Section 5.02(e)(vii) shall not
be subject to the foregoing limitations;

(iii)          such Disposition, all Related
Transactions and transactions in connection therewith shall be consummated in
accordance with all applicable law and all terms and conditions thereof shall
be fair and reasonable and no less favorable (on an after-tax basis), taken as
a whole, to Borrower and its Subsidiaries and the holders of the Secured
Obligations than terms and conditions Borrower and its Subsidiaries otherwise
would have obtained in an arm’s-length Asset Sale transaction involving the
property subject to the Disposition that is effected without any such Related
Transactions (other than any Related Transactions that would otherwise be
permitted under this Agreement in the absence of this definition and the
related concepts);

(iv)          at least 10 Business
Days prior to the proposed date of consummation of the Disposition, Borrower
shall have delivered to the Agent and the Lenders an officers’ certificate certifying
that (A) such transaction complies with this definition (which shall have
attached thereto

 25
 

reasonably detailed
backup data and calculations showing such compliance) and (B) such transaction
could not reasonably be expected to result in a Material Adverse Effect;

(v)           with respect to any
such Disposition:

(A)          to
the extent not involving a Sale and Lease-Back Transaction, Borrower shall be
required to apply an amount equal to not less than the greater of (x) 70% of
the fair market value of the property subject to such Disposition and (y) the
Net Cash Proceeds therefrom, in each case to the prepayment of Advances in
accordance with Section 2.10(b)(iii); and

(B)           to
the extent involving a Sale and Lease-Back Transaction, Borrower may elect to
either (i) prepay the Tranche X Advances and the Tranche B Advances in accordance
with Section 2.10(a) prior to the six-month anniversary of the consummation
of such Sale and Lease-Back Transaction from the Net Cash Proceeds received by
Borrower or any of its Subsidiaries therefrom or (ii) on or before the
thirtieth (30th) day following the consummation of such Sale and Lease-Back
Transaction deposit all such Net Cash Proceeds, when received, into an interest
bearing cash deposit account to be established and maintained by the Agent,
over which the Agent shall have sole dominion and control, upon terms as may be
reasonably satisfactory to the Agent, and then on the six-month anniversary of
the consummation of such Sale and Lease-Back Transaction, to the extent not
otherwise voluntarily prepaid in accordance with clause (v)(B)(i) above,
shall apply an amount equal to the Net Cash Proceeds received on or prior to
such date and, when received, such additional Net Cash Proceeds in respect of
such transaction as and when received to the prepayment of Advances in
accordance with Section 2.10(b)(iii); and

(vi)          any
Related Transaction shall be required to comply with the following additional
requirements:  (a) any Related
Transaction involving an incurrence of Debt that is Debt of Borrower or any
Subsidiary shall either be (1) if incurred by Borrower or a Guarantor,
unsecured and, if incurred by a Guarantor, subordinated in right of payment to
the Obligations of such Guarantor in a manner reasonably satisfactory to the
Agent, and shall require no cash payments of principal prior to the sixth month
following the Tranche B Maturity Date (“PDT Debt”) or (2) in an
aggregate principal amount, when taken together with all other Debt incurred
pursuant to this sub-clause (2) and Section 5.02(c)(xxiii), not
exceeding $50.0 million (with amounts incurred pursuant to this sub-clause
(2) reducing dollar-for-dollar the amount of Debt permitted to be incurred
pursuant to Section 5.02(c)(xxiii)) and, to the extent involving the
incurrence of a Lien on any property other than property that is subject to the
Disposition or received as consideration in connection with such Disposition,
any Lien securing Debt permitted by this sub-clause (2) shall be
incurred in compliance with Section 5.02(a)(xi); (b) any Related
Transaction involving a merger with, or transfer or other disposition of
property to, Borrower shall only be permitted to the extent permitted under Section
5.02(b) (except that this shall not prohibit transfers of Net Cash Proceeds
and other transfers as part of cash management or in the ordinary course of business);
(c) any Related Transaction involving a transfer or other disposition of
property to a Subsidiary that is not a Guarantor (a “PDT Entity”) shall
only be permitted if all financial attributes of such Subsidiary (including
Consolidated EBITDA) are excluded from the Pro Forma calculations required by
paragraph (i) of this definition and are excluded from all calculations under Section
5.02(i)(A) and (B) for that and all subsequent Test Periods and
shall thereafter be excluded from the calculation of Excess Cash Flow; (d) any
Related Transaction involving an Investment shall be permitted only to the
extent either (1) the Investment is being received as consideration for the
Disposition or (2) the Investment shall be pursuant to Section 5.02(h)(vi),
(x) or (xvi); (e)

 26
 

any restrictions of the
type subject to Section 5.02(d) shall only be permitted to the extent
that they impact only a Guarantor or a PDT Entity and do not have a material
adverse impact on any Collateral for the Obligations and, in the good faith
judgment of Borrower, will not materially and adversely affect the ability of
such Guarantor to satisfy its Obligations when due; (f) any prepayment or
redemption of Debt shall be in compliance with and pursuant to Section
5.02(j) or shall be of Intercompany Junior Subordinated Notes of the
Company effecting, or that is the subject of, the Disposition in connection
with the Disposition and reasonably related thereto; and (g) restrictions of
the type subject to Section 5.02(m) shall be permitted only to the
extent they relate to property that is the subject of the relevant Disposition
and any Investments received as consideration for the Disposition; provided
that, notwithstanding anything to the contrary, this clause (vi) will
not prohibit a Related Transaction if it otherwise complies with the
requirements of this Agreement other than the definition of “Permitted
Disposition Transaction”.

“Permitted Liens” means each of the following:
(a) Liens for unpaid utilities and for taxes, assessments and governmental
charges or levies to the extent not required to be paid under Section
5.01(b) hereof; (b) Liens imposed by law (other than any Lien imposed by
ERISA that could reasonably be expected to result in a Material Adverse
Effect), such as warehousemen’s, landlord’s, materialmen’s, mechanics’,
carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in
the ordinary course of business securing obligations that are not overdue for a
period of more than 60 days or which are being contested in good faith by
appropriate proceedings and as to which appropriate reserves are being
maintained; (c) pledges or deposits to secure obligations under workers’
compensation, unemployment insurance and other social security or employment
laws or similar legislation or to secure public, statutory or regulatory
obligations; (d) deposits to secure the performance of bids, trade
contracts (other than for borrowed money), leases, statutory or regulatory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business;
(e) easements, rights of way covenants, zoning, use restrictions and other
encumbrances on title to real property that do not materially adversely affect
the use of such property for its present purposes; (f) Liens securing
judgments for the payment of money not constituting a Default under Section 6.01(f)
or securing appeal or other surety bonds related to such judgments; (g) any
interest or title of a lessor, sublessor, licensee or licensor under any
operating lease or license agreement entered into in the ordinary course of
business and not interfering in any material respect with the rights, benefits
or privileges of such lease or licensing agreement, as the case may be; (h)
Liens in favor of payor financial institutions having a right of setoff,
revocation, refund or chargeback with respect to money or instruments of
Borrower or any Subsidiary of Borrower on deposit with or in possession of such
financial institution; (i) leases or licenses of Intellectual Property or
other assets granted by Borrower or any Subsidiary in the ordinary course of
business and not interfering in any material respect with the ordinary conduct
of business of Borrower or any Subsidiary and (j) the filing of UCC financing
statements solely as a precautionary measure in connection with any transaction
not prohibited hereunder.

“Permitted Transferee” means (i) any direct or
indirect Affiliate of EGI-TRB, L.L.C., Equity Group Investments, L.L.C. or
Zell, (ii) any direct or indirect member of EGI-TRB, L.L.C. and any direct or
indirect Affiliate thereof, (iii) Zell or his spouse, lineal ancestors and
descendants (whether natural or adopted), or (iv) any trust or retirement
account primarily for the benefit of Zell and/or his spouse, lineal ancestors
and descendants, any entity formed and wholly owned by any such trust or retirement
account and any private foundation formed by Zell and/or any one or more of his
descendants.

“Person” means an individual, partnership, corporation
(including a business trust), joint stock company, trust, unincorporated
association, joint venture, limited liability company or other entity, or a
government or any political subdivision or agency thereof.

 27
 

“PHONES” means the Exchangeable Subordinated
Debentures of Borrower due 2029 and outstanding as of the Closing Date.

“Plan” means a Single Employer Plan or a
Multiple Employer Plan.

“Platform” has the meaning specified in Section
8.02(d).

“Pledge Agreement” means the Pledge Agreement
in substantially the form of Exhibit G hereto and any other documents
granting a Lien upon the Collateral as security for the payment of the Secured
Obligations.

“Prepayment Event” means any Asset Sale Prepayment
Event or Casualty Event.

“Pro Forma Basis” means, with respect to
compliance with any test or covenant hereunder, to the extent consummated on or
after the first day of a Test Period, the First Step Transactions, the Second
Step Transactions, any Permitted Acquisition, an Asset Sale (including any
anticipated disposition, transfer or assignment of specific assets listed on Schedule
1.01(c) in connection with which a definitive acquisition or other
agreement has been entered into, including where such sale remains subject to
certain customary approvals), the incurrence, permanent repayment or
extinguishment of Debt (other than Debt incurred for working capital needs
under ordinary course revolving credit facilities) or any cost savings realized
or to be realized as a result of any of the foregoing (each a “Specified
Transaction”) and the following transactions in connection therewith shall
be deemed to have occurred as of the first day of the applicable Test Period in
such test or covenant:  income statement
items (whether positive or negative) attributable to the property or Person
subject to such Specified Transaction, (i) in the case of a sale, transfer
or other disposition of all or substantially all Capital Stock in any Subsidiary
or any division, product line, or facility used for operations of Borrower or
any of its Subsidiaries, shall be excluded, and (ii) in the case of Debt
described in the definition of  “Specified
Transaction”, if such Debt has a floating or formula rate, such Debt shall have
an implied rate of interest for the applicable period for purposes of this
definition determined by utilizing the rate that is or would be in effect with
respect to such Debt as at the relevant date of determination); provided
that the foregoing pro forma adjustments may be applied to any such test or
covenant solely to the extent that such adjustments are consistent with the definition
of EBITDA and Regulation S-X.

“Purchase Money Obligation” shall mean, for any
Person, the obligations of such Person in respect of Debt (including Capital
Lease Obligations) incurred for the purpose of financing all or any part of the
purchase price of any property (including Equity Interests of any Person) or
the cost of installation, construction or improvement of any property and any
refinancing thereof; provided,  however,
that (i) such Debt is incurred within one year after such acquisition,
installation, construction or improvement of such property by such Person and
(ii) the amount of such Debt does not exceed 100% of the unamortized cost of
such acquisition, installation, construction or improvement, as the case may
be.

“Ratable Share” of any amount means
(x) with respect to any Revolving Credit Lender at any time, the product
of such amount multiplied by a fraction the numerator of which is the
amount of such Lender’s Revolving Credit Commitment at such time (or, if the
Revolving Credit Commitments shall have been terminated pursuant to Section
2.05 or 6.01, such Lender’s Revolving Credit Commitment as in effect
immediately prior to such termination) and the denominator of which is the
aggregate amount of all Revolving Credit Commitments at such time (or, if the Revolving
Credit Commitments shall have been terminated pursuant to Section 2.05
or 6.01, the aggregate amount of all Revolving Credit Commitments as in
effect immediately prior to such termination), (y) with respect to any Tranche
B Lender at any time, the product of such amount multiplied by a
fraction the numerator of which is the amount of such Lender’s Tranche B
Advances plus the amount of such Lender’s Delayed Draw Tranche

 28

B Commitment which has not been drawn upon at such
time and the denominator of which is the aggregate amount of all Tranche B
Advances plus the amount of all Delayed Draw Tranche B Commitments which
have not been drawn upon at such time and (z) with respect to any Tranche
X Lender at any time, the product of such amount multiplied by a
fraction the numerator of which is the amount of such Lender’s Tranche X
Advances and the denominator of which is the aggregate amount of all Tranche X
Advances.

“Ratably” has the meaning specified in Section
7.05(a).

“Receivables Facility” one or more receivables
financing facilities, in each case, as amended, supplemented, modified,
extended, renewed, restated, refunded, replaced or refinanced from time to
time, the Debt of which is non-recourse (except for Standard Receivables
Facility Undertakings) to Borrower and its Subsidiaries, other than any
Receivables Subsidiary, pursuant to which Borrower or any of its Subsidiaries
sells its accounts, payment intangibles and related assets to either (a) a
Person that is not a Guarantor or (b) a Receivables Subsidiary.

“Receivables Facility Repurchase Obligation”
means any obligation of Borrower or a Subsidiary that is a seller of assets in
a Receivables Facility to repurchase the assets it sold thereunder as a result
of a breach of a representation, warranty or covenant or otherwise, including
as a result of a receivable or portion thereof becoming subject to any asserted
defense, dispute, offset or counterclaim of any kind as a result of any action
taken by, any failure to take action by or any other event relating to the
seller.

“Receivables Subsidiary” means any Subsidiary
formed solely for the purpose of engaging, and that engages only, in one or
more Receivables Facilities.

“Reference Banks” means JPMorgan Chase Bank,
N.A. and Citibank, N.A.

“Refinancing” means the refinancing of Borrower’s
existing indebtedness listed on Schedule 1.01(a).

“Refunded Swing Line Advances” has the meaning
specified in Section 2.02(b).

“Regulation S-X” means Regulation S-X promulgated
under the Securities Act.

“Register” has the meaning specified in Section
8.07(d).

“Reinvestment Period” means 15 months following
the date of an Asset Sale Prepayment Event or Casualty Event (or, if later, 180
days after the date Borrower or a Subsidiary has entered into a binding
commitment to reinvest the proceeds of any such Asset Sale Prepayment Event or
Casualty Event prior to the expiration of such 15 months).

“Related Funds” shall mean with respect to any
Lender that is an Approved Fund, any other Approved Fund that is managed or
advised by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.

“Related Transaction” has the meaning provided
in the definition of “Permitted Disposition Transaction.”

“Required Lenders” means at any time Lenders
owed or holding at least a majority of the sum of (a) the aggregate principal
amount of the Advances outstanding at such time, (b) the aggregate

 29
 

amount of participations in undrawn Letters of Credit,
(c) the aggregate Unused Revolving Credit Commitments at such time, (d) the
aggregate amount of any outstanding Initial Tranche B Commitment and
outstanding Tranche X Commitment and (e) the aggregate Unused Delayed Draw
Tranche B Commitments at such time.

“Required Revolving Credit Lenders” means at
any time Revolving Credit Lenders owed or holding at least a majority of the
aggregate principal amount of the Revolving Credit Advances outstanding at such
time or, if no Revolving Credit Advances are then outstanding, Revolving Credit
Lenders holding at least a majority in interest of the Revolving Credit Commitments
at such time.

“Retained Amount” means (a) the sum of (i) the
cumulative amount of Excess Cash Flow for the period beginning July 1, 2007 to
the date of determination, (ii) the aggregate amount of cash proceeds received
by Borrower after April 1, 2007 and prior to any date of determination from the
litigation and proceedings listed in the Side Letter and not designated by
Borrower to be included in the Junior Capital Reduction Amount and Investment
Reduction Amount and (iii) solely for purposes of Section 5.02(j)(i)(cc),
Net Cash Proceeds from the sale of the asset listed in the Side Letter minus
(b) the sum of (i) 50% of Excess Cash Flow from the period from July 1, 2007
through December 28, 2007, (ii) the amount of any Excess Cash Flow required to
be applied to a prepayment pursuant to Section 2.10(b)(ii), (iii) the
aggregate amount of Dividends paid pursuant to Section 5.02(g)(x), (iv)
the aggregate actual amount of Investments made with the Retained Amount in
reliance on Section 5.02(h)(x) (net of any return on capital in respect
of such Investment or deemed reduction in the amount of such Investment including,
without limitation, the sale of any such Investment for cash), (v) the
aggregate actual amount of debt repayments made pursuant to Section
5.02(j)(i)(cc) and (vi) the aggregate amount of Capital Expenditures made
pursuant to Section 5.02(i)(C) in reliance on the Retained Amount; provided
that if the Retained Amount shall be reduced below zero, it shall be deemed to
be zero for purposes of calculating availability under Sections 5.02(g)(x),
5.02(h)(x), 5.02(j)(i)(cc) and 5.02(i)(C).

“Revolving Credit Advance” has the meaning
specified in Section 2.01(a).

“Revolving Credit Borrowing” means a borrowing
(other than a Conversion) consisting of simultaneous Revolving Credit Advances
of the same Type made by each of the Revolving Credit Lenders.

“Revolving Credit Commitment” means as to any Lender
(a) the amount set forth opposite such Lender’s name on Schedule I as
such Lender’s “Revolving Credit Commitment”, (b) if such Lender has become a
Lender hereunder pursuant to an Assignment and Acceptance, the amount set forth
in such Assignment and Acceptance or (c) if such Lender has entered into an
Assignment and Acceptance, the amount set forth for such Lender in the Register
maintained by the Agent pursuant to Section 8.07(d) as such Lender’s “Revolving
Credit Commitment”, as such amount may be reduced pursuant to Section 2.05.  The aggregate Revolving Credit Commitment on
the Closing Date is $750,000,000.

“Revolving Credit Commitment Termination Date”
means the earlier of (a) the Revolving Credit Facility Maturity Date and
(b) the date of termination in whole of the Revolving Credit Commitments
pursuant to Section 2.05 or 6.01.

“Revolving Credit Facility” means, at any time,
the aggregate amount of the Revolving Credit Lenders’ Revolving Credit
Commitments.

“Revolving Credit Facility Maturity Date” means
the date which is six years after the Closing Date or, if such date is not
a Business Day, the first Business Day thereafter.

“Revolving Credit Lender” means any Lender that
has a Revolving Credit Commitment.

 30
 

“Revolving Credit Note” means a promissory note
of Borrower payable to the order of any Revolving Credit Lender, delivered
pursuant to a request made under Section 2.16 in substantially the form
of Exhibit A-1 hereto, evidencing the aggregate indebtedness of Borrower
to such Lender resulting from the Revolving Credit Advances made by such
Lender.

“S Corp Election” means Borrower has qualified
and elected to be treated as an “S Corporation” under Subchapter S of the Code,
and shall have filed all forms and taken all other actions necessary to qualify
and elect that each Domestic Subsidiary of Borrower (other than (x) Immaterial
Subsidiaries, (y) any other Subsidiaries for which Borrower reasonably
determines the failure to be treated as a “qualified subchapter S subsidiary”
for U.S. federal income tax purposes would not result in material adverse tax
consequences to Borrower and (z) any such Subsidiary that is an “Ineligible
Corporation” under Section 1361(b)(2) of the Code) be treated as a “qualified
subchapter S subsidiary” for U.S. federal income tax purposes, in each case in
accordance with all requirements of law.

“S&P” means Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc., or any successor thereto.

“Sale and Lease-Back Transaction” means any
arrangement with any Person providing for the leasing by Borrower or any
Subsidiary of any real or tangible personal property, which property has been
or is to be sold or transferred by Borrower or such Subsidiary to such Person
in contemplation of such leasing.

“Sarbanes-Oxley Act” means the United States Sarbanes-Oxley
Act of 2002, as amended from time to time, and all rules and regulations
promulgated thereunder.

“Schedule TO” means Borrower’s Schedule TO
filed on April 25, 2007 with the Securities and Exchange Commission, as the
same has been and shall be amended from time to time.

“SEC Reports” means (i) the Annual Report of
Borrower on Form 10-K for the year ended December 31, 2006 filed with the
Securities and Exchange Commission, (ii) Borrower’s Quarterly Report on Form
10-Q for the quarter ended April 1, 2007 filed with the Securities and Exchange
Commission, (iii) Borrower’s current Reports on Form 8-K filed with the
Securities and Exchange Commission prior to the Closing Date (but subsequent to
filing of the SEC Report described in clause (i) above) and (iv) Borrower’s
Schedule TO.

“Second Step Closing Date” means the date on
which the Second Step Transactions are consummated.

“Second Step Commitment Letter” means that
certain Amended and Restated Second Step Commitment Letter dated as of April 5,
2007 (as the same may at any time be amended, supplemented or otherwise
modified from time to time), in each case,  among J.P. Morgan Securities Inc., JPMorgan Chase
Bank, N.A., Merrill Lynch Capital Corporation, Citigroup Global Markets Inc., Bank of America, N.A., Banc of
America Securities LLC and Banc of America Bridge LLC and Borrower.

“Second Step Covenants” means the covenants set
forth in Section 5.02(i)(A) and (B) based on the levels set forth
under the heading “Column C” in each table.

“Second Step Transactions” means (i) the
consummation of the Acquisition pursuant to the Acquisition Agreement
(including the purchase of common stock owned by EGI-TRB, L.L.C.), (ii) the
making of Incremental Term Advances and/or the execution, delivery and
performance by Borrower and its Subsidiaries party thereto of the Borrower
Acquisition Bridge Loan Documents and/or the Borrower

 31
 

High Yield Notes Documents and the making of the
Borrower Acquisition Bridge Loans and/or the issuance of the Borrower High
Yield Notes, (iii) the issuance of the Zell Sub Note and the repayment of
the Zell Note, (iv) the purchase by EGI-TRB, L.L.C. of the Warrant,
(v) entry into the Zell Investment Agreement, (vi) all other transactions
necessary to effect or incidental to the foregoing and (viii) the payment of
fees, costs and expenses related to the foregoing.

“Secured Cash Management Obligations” means all
obligations owing by Borrower or any Subsidiary to the Agent, a Lead Arranger
or a co-arranger, any Affiliate, of any of the foregoing or a Person that was a
Lender or an Affiliate of a Lender on the Closing Date or at the time the Cash
Management Agreement giving rise to such obligations was entered into to the
extent Borrower elects to treat such obligations as “Secured Cash Management
Obligations”.

“Secured Hedging Obligations” means all
obligations owing by Borrower or any Subsidiary to the Agent, a Lead Arranger
or any Affiliate of any of the foregoing or a Person that is or, at the time
such obligation arose, was a Lender or an Affiliate of a Lender, in each case
under a Hedge Agreement.

“Secured Obligations” means all Obligations,
together with all Secured Hedging Obligations and Secured Cash Management
Obligations.

“Secured Parties” has the meaning assigned to
such term in the Pledge Agreement.

“Securities Act” means the Securities Act of
1933, as amended from time to time, and any successor statute.

“Side Letter” means that certain side letter
provided by Borrower to the Agent on the Closing Date that will be made
available to any Lender upon reasonable request; provided that such
letter and its contents shall be deemed Borrower Information and will be
subject to Section 8.08.

“Single Employer Plan” means a single employer
plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of Borrower or any ERISA Affiliate and no Person other than Borrower
and the ERISA Affiliates or (b) was so maintained and in respect of which
Borrower or any ERISA Affiliate could have liability, including, under Section
4069 of ERISA, in the event such plan has been or were to be terminated.

“Solvent” and “Solvency” mean, with
respect to Borrower on the Closing Date or the Second Step Closing Date, as
applicable, that on such date (a) the fair value and present fair saleable
value of the aggregate assets (including goodwill) of Borrower exceeds its
liabilities (including stated liabilities, identified contingent liabilities
and the new financing), and such excess is in an amount that is not less than
the capital of Borrower (as determined pursuant to Section 154 of the Delaware
General Corporate Law), (b) Borrower will be able to pay its debts (including
the stated liabilities, the identified contingent liabilities and the new
financing), as such debts mature or otherwise become absolute or due and (c)
Borrower does not have unreasonably small capital.  As used in this definition:

“fair value” means
the amount at which the aggregate or total assets of Borrower (including
goodwill) would change hands between a willing buyer and a willing seller,
within a commercially reasonable period of time, each having reasonable
knowledge of the relevant facts, neither being under any compulsion to act and,
on the Second Step Closing Date, in a transaction having a similar structure;

 32
 

“present fair
saleable value” means the amount that may be realized by a willing seller from
a willing buyer if Borrower’s aggregate or total assets (including goodwill)
are sold with reasonable promptness and, on the Second Step Closing Date, in a
transaction having a similar structure;

“does not have
unreasonably small capital” relates to the ability of Borrower to continue as a
going concern and not lack sufficient capital for the business in which it is
engaged, and will be engaged, as management has indicated such businesses are
now conducted and are proposed to be conducted;

“stated
liabilities” means recorded liabilities of Borrower as presented on the most
recent balance sheet of Borrower provided to the Agent prior to the Closing
Date or Second Step Closing Date, as the case may be;

“identified
contingent liabilities” means the reasonably estimated contingent liabilities
that may result from, without limitation, threatened or pending litigation,
asserted claims and assessments, environmental conditions, guaranties,
indemnities, contract obligations, uninsured risks, purchase obligations,
taxes, and other contingent liabilities as determined by Borrower;

“new financing”
means (a) on the Closing Date, the indebtedness incurred, assumed or guaranteed
by Borrower in connection with the First Step Transactions and (b) on the
Second Step Closing Date, the indebtedness incurred, assumed or guaranteed by
Borrower in connection with the Transactions; and

“similar structure”
means a structure similar to the structure contemplated in the Transactions (an
S Corporation (under Subchapter 5 of the Code), owned entirely by an Employee
Stock Ownership Plan, which receives favorable federal income tax treatment),
or another structure resulting in equivalent favorable federal income tax
treatment.

“Special Contribution” means an Investment in
Junior Capital of Borrower made as all or part of a Zell Investment or pursuant
to Section 5.01(n).

“Special Proceeds” means any aggregate Net Cash
Proceeds received by Borrower or any Subsidiary from, and all tax savings
directly associated with, the sale, transfer or disposition of Designated Assets
in excess of the aggregate amount disclosed in the Side Letter.

“Standard Receivables Facility Undertakings”
means representations, warranties, covenants and indemnities entered into by
Borrower or any Subsidiary that Borrower has determined in good faith to be
customary in financings similar to a Receivables Facility, including, without
limitation, those relating to the servicing of the assets of a Receivables
Facility Subsidiary, it being understood that any Receivables Facility
Repurchase Obligation shall be deemed to be a Standard Receivables Facility
Undertaking.

“Stock Repurchase” means the repurchase of
certain shares of Borrower’s capital stock by Borrower on or about the Closing
Date as provided in the Schedule TO.

“Subsidiary” means, with respect to any Person,
any corporation, partnership, joint venture, limited liability company, trust
or estate or other business entity of which (or in which) more than 50% of (a)
the issued and outstanding Capital Stock having ordinary voting power to elect
a majority of the Board of Directors of such corporation (irrespective of
whether at the time Capital Stock of any other class or classes of such
corporation shall or might have voting power upon the occurrence of any contingency),

 33
 

(b) the interest in the capital or profits of such
limited liability company, partnership or joint venture or (c) the
beneficial interest in such trust or estate or other business entity is at the
time directly or indirectly owned or controlled by such Person, by such Person
and one or more of its other Subsidiaries or by one or more of such Person’s
other Subsidiaries, in each case, with respect to Borrower; provided
that neither any PDT Entity nor any entity disclosed in the Side Letter shall
be deemed a “Subsidiary” for purposes of the Loan Documents.  Unless expressly stated otherwise or the
context otherwise requires, any reference to “Subsidiary” shall mean a
Subsidiary of Borrower.

“Swing Line Advance” has the meaning specified
in Section 2.01(d).

“Swing Line Borrowing” means a borrowing
consisting of a Swing Line Advance made by the Swing Line Lender.

“Swing Line Commitment” means the obligation of
the Swing Line Lender to make Swing Line Advances pursuant to Section
2.01(d) in an aggregate principal amount at any one time outstanding not to
exceed $100,000,000.

“Swing Line Lender” means JPMorgan Chase Bank,
N.A., in its capacity as the lender of Swing Line Advances.

“Swing Line Note” means a promissory note of
Borrower payable to the order of the Swing Line Lender, delivered pursuant to a
request made under Section 2.16 in substantially the form of Exhibit
A-4 hereto, evidencing the indebtedness of Borrower to such Lender resulting
from the Swing Line Advances made by such Lender.

“Syndication Agent” has the meaning specified
in the preamble hereto.

“Taxes” means any and all income, stamp or
other taxes, duties, levies, imposts, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed
by any Governmental Authority, and all interest, penalties or similar
liabilities with respect thereto.

“Term Advances” means Tranche X Advances,
Tranche B Advances and Incremental Term Advances.

“Test Period” means, for any determination
hereunder, the four consecutive fiscal quarters most recently then last ended.

“TMCT Real Property” means  the real property owned in fee by TMCT, LLC
that is leased to Borrower on the Closing Date and listed on Schedule
1.01(b) hereto.

“Total Guaranteed Leverage Ratio” means, at any
date, the ratio of (x) the aggregate principal amount of Debt for Borrowed
Money of Borrower that is Guaranteed by any of the Guarantors and the aggregate
principal amount of Debt for Borrowed Money of the Guarantors (on a
Consolidated basis) to (y) EBITDA for the period of four fiscal quarters most
recently then ended.

“Tranche B Advance” means Initial Tranche B
Advances and Delayed Draw Tranche B Advances.

“Tranche B Borrowing” means a borrowing (other
than a Conversion) consisting of simultaneous Tranche B Advances of the same
Type made by the applicable Lenders.

 34
 

“Tranche B Commitment” means the Initial
Tranche B Commitment and the Delayed Draw Tranche B Commitment.

“Tranche B Facility” means, at any time, the
aggregate amount of the Lenders’ Tranche B Commitments at such time.

“Tranche B Lender” means any Lender with an
outstanding Initial Tranche B Advance, Delayed Draw Tranche B Advance or a
Tranche B Commitment.

“Tranche B Maturity Date” means the date which
is seven years after the Closing Date or, if such date is not a Business Day,
the first Business Day thereafter.

“Tranche B Note” means a promissory note of
Borrower payable to the order of any Lender with outstanding Tranche B
Advances, delivered pursuant to a request made under Section 2.16 in
substantially the form of Exhibit A-3 hereto, evidencing the
indebtedness of Borrower to such Lender resulting from the Tranche B Advances
made by such Lender.

“Tranche X Advance” has the meaning assigned to
such term in Section 2.01(e).

“Tranche X Borrowing” means a borrowing (other
than a Conversion) consisting of simultaneous Tranche X Advances of the same
Type made by the applicable Lenders.

“Tranche X Commitment” means as to any Lender
(a) the amount set forth opposite such Lender’s name on Schedule I
hereto as such Lender’s “Tranche X Commitment” or (b) if such Lender has
entered into any Assignment and Acceptance, the amount set forth for such
Lender in the Register maintained by the Agent pursuant to Section 8.07(d)
as such Lender’s “Tranche X Commitment”, as such amount may be reduced pursuant
to Section 2.05.  The aggregate
Tranche X Commitment on the Closing Date is $1,500,000,000.

“Tranche X Facility” means, at any time, the
aggregate amount of the Lenders’ Tranche X Commitments at such time.

“Tranche X Lender” means any Lender with an
outstanding Tranche X Advance or a Tranche X Commitment.

“Tranche X Maturity Date” means the date which
is two years after the Closing Date or, if such date is not a Business
Day, the first Business Day thereafter.

“Tranche X Note” means a promissory note of
Borrower payable to the order of any Lender with outstanding Tranche X
Advances, delivered pursuant to a request made under Section 2.16 in
substantially the form of Exhibit A-2 hereto, evidencing the
indebtedness of Borrower to such Lender resulting from the Tranche X Advances
made by such Lender.

“Transaction Documents” means all documents,
instruments and agreements executed and/or delivered in connection with the
Transactions, including without limitation the Loan Documents, the Guarantee,
the Acquisition Agreement, the Borrower Acquisition Bridge Loan Documents, the
Borrower High Yield Notes, the Borrower High Yield Notes Documents, the ESOP
Loan Agreement, the ESOP Note, the ESOP Purchase Agreement, any other ESOP
Documentation, the Intercompany Junior Subordinated Notes, the Zell Investment
Agreement, the Zell Note and the Zell Sub Note.

“Transactions” means the First Step
Transactions and the Second Step Transactions.

 35
 

“Tribune” has the meaning specified in the
preamble.

“Tribune Finance LLC Transaction” means (a) the
satisfaction of the intercompany indebtedness owed by certain Subsidiaries and
listed on Schedule 1.01(d) hereto, (b) the contribution by Borrower of
not less than $3.0 billion to its newly-formed, direct wholly owned subsidiary,
Tribune Finance, LLC, (c) the issuance by certain Subsidiaries of the Intercompany
Junior Subordinated Notes to Tribune Finance, LLC and (d) the direct or
indirect dividend or other distribution by such Subsidiaries of the aggregate
amount of such loaned funds to Borrower.

“Tribune Management Equity Incentive Plan”
means the Tribune Management Equity Incentive Plan as in effect on the Closing
Date.

“Trust Indenture Act” has the meaning specified
in Section 7.03.

“Type” means a Base Rate Advance or a
Eurodollar Rate Advance.

“UCC” means the Uniform Commercial Code as in
effect from time to time (except as otherwise specified) in any applicable
state or jurisdiction.

“Unissued Letter of Credit Commitment” means,
with respect to any Issuing Bank at any time, the obligation of such Issuing
Bank to issue Letters of Credit for the account of Borrower or its Subsidiaries
in an amount equal to the excess of (a) the amount of its Letter of Credit
Commitment at such time over (b) the aggregate Available Amount of all Letters
of Credit issued and outstanding by such Issuing Bank at such time.

“Unused Delayed Draw Tranche B Commitment”
means, with respect to each Tranche B Lender at any time, (a) such Tranche
B Lender’s Delayed Draw Tranche B Commitment minus (b) the aggregate
principal amount of all Delayed Draw Tranche B Advances made by such Lender.

“Unused Revolving Credit Commitment” means,
with respect to each Revolving Credit Lender at any time, (a) such Lender’s
Revolving Credit Commitment at such time minus (b) the sum of (i) the aggregate
principal amount of all Revolving Credit Advances made by such Lender (in its
capacity as a Lender) and outstanding at such time, plus (ii) without
duplication, the aggregate principal amount of (A) all Swing Line Advances
made by such Lender (in its capacity as a Swing Line Lender, if applicable) and
outstanding at such time or (B) all participation interests purchased in Swing
Line Advances outstanding at such time by such Lender pursuant to Section
2.02(b) (other than in its capacity as a Swing Line Lender) plus
(iii) such Lender’s Ratable Share of (A) the aggregate Available Amount of all
the Letters of Credit outstanding at such time and (B) the aggregate principal
amount of all Advances made by each Issuing Bank pursuant to Section 2.03(c)
that have not been ratably funded by such Lender and outstanding at such time.

“Unused Swing Line Commitment” means, with
respect to the Swing Line Lender at any time, the obligation of the Swing Line
Lender to make Swing Line Advances for the account of Borrower or its Subsidiaries
in an amount equal to the excess of (a) the amount of its Swing Line Commitment
at such time minus (b) the amount of Swing Line Advances made by the
Swing Line Lender and outstanding at such time.

“Voting Stock” means capital stock issued by a
corporation, or equivalent interests in any other Person, the holders of which
are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or Persons performing similar functions) of such Person,
even if the right so to vote has been suspended by the happening of such a
contingency.

 36
 

“Warrant” means that certain 15-year warrant of
Borrower issued to EGI-TRB, L.L.C. evidencing rights to purchase 43,478,261
shares (subject to adjustment) of Borrower’s common stock.

“Zell” means Samuel Zell, a natural person.

“Zell Investment” means any Investment made
pursuant to the Zell Investment Agreement.

“Zell Investment Agreement” means an agreement
among Zell, as guarantor, EGI-TRB, L.L.C. and Borrower pursuant to which
EGI-TRB, L.L.C. commits to invest the Zell Investment Amount in the form of
Junior Capital, on the later to occur of March 25, 2008 and the Acquisition
Closing Date, if Borrower has not validly made the S Corp Election on or before
March 15, 2008.  Such agreement shall be in
a form reasonably acceptable to the Agent.

“Zell Investment Amount” means (x) $100.0
million minus (y) the Investment Reduction Amount on the date any
Investment is made pursuant to the Zell Investment Agreement.

“Zell Note” means that certain $200.0 million
aggregate principal amount unsecured subordinated exchangeable promissory note
of Borrower issued to EGI-TRB, L.L.C., its Permitted Transferees and/or any
senior employee of Equity Group Investments, L.L.C. or of any direct or
indirect Affiliates thereof.

“Zell Sub Note” means an 11-year $225.0 million
initial principal amount pay-in-kind subordinated note of Borrower issued to
EGI-TRB, L.L.C., its Permitted Transferees and/or any senior employee of Equity
Group Investments, L.L.C. or of any direct or indirect Affiliates thereof.

SECTION 1.02.     Terms
Generally.  The definitions of terms
herein shall apply equally to the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.  The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) in
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each mean “to but excluding”, (b) any definition of or reference to any
Loan Document, agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein),
(c) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (d) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (e) all
references herein to Sections, Exhibits and Schedules shall be construed to
refer to Sections of, and Exhibits and Schedules to, this Agreement,
(f) any reference to any law or regulation herein shall refer to such law
or regulation as amended, modified or supplemented from time to time and
(g) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

SECTION 1.03.     Accounting
Terms.  Except as otherwise expressly
provided herein, all accounting terms not specifically defined herein shall be
construed in accordance with generally accepted accounting principles as in
effect in the United States from time to time (“GAAP”); provided
that (a) if there is any change in GAAP from such principles applied in the
preparation of the financial statements as in effect on the Closing Date (“Initial
GAAP”) that is material in respect of the calculation of

 37
 

compliance with the covenants set forth in Section
5.02(i), Borrower shall give prompt notice of such change to the Agent and
(b) if Borrower notifies the Agent that Borrower requests an amendment of any
provision hereof to eliminate the effect of any change in GAAP (or the
application thereof) from Initial GAAP (or if the Agent or the Required Lenders
request an amendment of any provision hereof for such purpose), regardless of
whether such notice is given before or after such change in GAAP (or the application
thereof), then such provision shall be applied on the basis of generally
accepted accounting principles as in effect and applied immediately before such
change shall have become effective until such notice shall have been withdrawn
or such provision is amended in accordance herewith.

ARTICLE
II

AMOUNTS
AND TERMS OF THE

ADVANCES AND LETTERS OF CREDIT

SECTION 2.01.     The Advances
and Letters of Credit.

(a)           The Revolving Credit Advances.  Each Revolving Credit Lender severally
agrees, on the terms and conditions hereinafter set forth, to make advances
(each, a “Revolving Credit Advance”) to Borrower from time to time on
any Business Day during the period from the Closing Date until the Revolving
Credit Commitment Termination Date in an aggregate amount not to exceed at any
time outstanding such Lender’s Revolving Credit Commitment.  Each Revolving Credit Borrowing shall be in
an aggregate amount equal to the lesser of (i) the aggregate Unused Revolving
Credit Commitments and (ii) $5,000,000 or an integral multiple of $500,000 in
excess thereof (other than a Borrowing the proceeds of which shall be used
solely to repay or prepay in full outstanding Swing Line Advances or outstanding
Letter of Credit Advances) and shall consist of Revolving Credit Advances of
the same Type made on the same day by the Lenders ratably according to their
respective Revolving Credit Commitments. 
Within the limits of each Lender’s Revolving Credit Commitment, Borrower
may borrow under this Section 2.01(a), prepay pursuant to Section
2.10 and reborrow under this Section 2.01(a).

(b)           Letters of Credit.  Each Issuing Bank agrees, on the terms and
conditions hereinafter set forth, in reliance upon the agreements of the other
Revolving Credit Lenders set forth in this Agreement, to issue letters of
credit (each, a “Letter of Credit”) denominated in Dollars for the
account of Borrower and its Subsidiaries from time to time on any Business Day
during the period from the Closing Date until 30 days before the Revolving
Credit Commitment Termination Date in an aggregate Available Amount (i) for all
Letters of Credit issued hereunder by all Issuing Banks not to exceed at any
time the Letter of Credit Facility at such time and (ii) for each such Letter
of Credit not to exceed an amount equal to the Unused Revolving Credit
Commitments of the Revolving Credit Lenders at such time.  Unless otherwise agreed by the applicable
Issuing Bank in its sole discretion, no Letter of Credit shall have an expiration
date (including all rights of Borrower or the beneficiary to require renewal)
later than 10 Business Days before the date set forth in clause (a) of the
definition of Revolving Credit Commitment Termination Date; provided
that in no event may any Letter of Credit be issued on or after, or have an
expiration date on or after, the date set forth in clause (a) of the definition
of Revolving Credit Commitment Termination Date.  Within the limits referred to above, Borrower
may from time to time request the Issuance of Letters of Credit under this Section
2.01(b).

(c)           The Tranche B Advances.  Each Lender severally agrees, on the terms
and conditions hereinafter set forth, to make advances (each, an “Initial
Tranche B Advance”) to Borrower on the Closing Date in an amount not to exceed
such Lender’s Initial Tranche B Commitment at such time.  Each Lender severally agrees, on the terms
and conditions hereinafter set forth, to make advances (each a “Delayed Draw
Tranche B Advance”) at any time from time to time after the Closing Date
and prior to the Medium Term Notes Final Maturity Date in an amount not to
exceed such Lender’s Delayed Draw

 38
 

Tranche B Commitment at the time outstanding.  Each Delayed Draw Tranche B Advance shall be
in an aggregate amount equal to the amount necessary to repay in full the
obligations owing under any series of Medium Term Notes on the maturity date
thereof and Delayed Draw Tranche B Advances shall be of the same Type made on
the same day by the Lenders ratably according to their respective Delayed Draw
Tranche B Commitments at the time outstanding. 
Amounts borrowed under this Section 2.01(c) and repaid or prepaid
may not be reborrowed.

(d)           The Swing Line Advances.  The Swing Line Lender agrees, on the terms
and conditions hereinafter set forth, to make advances (each, a “Swing Line
Advance”) to Borrower from time to time on any Business Day during the
period from the Closing Date until the Revolving Credit Commitment Termination
Date in an aggregate amount not to exceed at any time outstanding the Swing
Line Commitment.  Each Swing Line Borrowing
shall be in an aggregate amount equal to the lesser of (i) the aggregate Unused
Swing Line Commitments and (ii) $5,000,000 or an integral multiple of $500,000
in excess thereof.  All Swing Line
Advances shall be made as Base Rate Advances and shall not be entitled to be
Converted into Eurodollar Rate Advances. 
Within the limits of the Swing Line Lender’s Swing Line Commitment,
Borrower may borrow under this Section 2.01(d), prepay pursuant to Section
2.10 and reborrow under this Section 2.01(d); provided
that the Swing Line Lender shall not be permitted or required to make Swing
Line Advances if, after giving effect thereto, the aggregate amount of
available Revolving Credit Commitments would be less than zero.

(e)           The Tranche X Advances.  Each Lender severally agrees, on the terms
and conditions hereinafter set forth, to make advances (each, a “Tranche X
Advance”) to Borrower on the Closing Date in an amount not to exceed such
Lender’s Tranche X Commitment at such time. 
Any Tranche X Borrowing shall consist of Tranche X Advances made on the
same day by the Tranche X Lenders ratably according to their Tranche X
Commitments.  Amounts borrowed under this
Section 2.01(e) and repaid or prepaid may not be reborrowed.

SECTION 2.02.     Making the
Advances.

(a)           Except
as otherwise provided in Section 2.03(c), each Borrowing (other
than Swing Line Borrowings) shall be made on notice, given not later than 12:00
noon (New York City time) (x) three Business Days prior to the date of the
proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate
Advances or (y) one Business Day prior to the date of the proposed
Borrowing in the case of a Borrowing consisting of Base Rate Advances, by
Borrower to the Agent, which shall give to each Appropriate Lender prompt
notice thereof by telecopier.  Each such
notice of such a Borrowing (a “Notice of Borrowing”) shall be by
telephone, confirmed immediately in writing, or telecopier in substantially the
form of Exhibit B hereto, specifying therein the requested (i) date of
such Borrowing, (ii) Type of Advances comprising such Borrowing, (iii) Facility
under which such Borrowing is made (and if a Tranche B Borrowing, whether such
Borrowing is comprised of Initial Tranche B Advances or Delayed Draw Tranche B
Advances), (iv) aggregate amount of such Borrowing, and (v) in the case of
a Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
each such Advance.  Each Appropriate
Lender shall, before 2:00 P.M. (New York City time) on the date of such
Borrowing make available for the account of its Applicable Lending Office to
the Agent at the Agent’s Account, in same day funds, such Lender’s ratable
portion of such Borrowing.  After the
Agent’s receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Agent will promptly, and in any event on
the date of such Borrowing, make such funds available to Borrower by wire
transfer to Borrower’s Account.

(b)           Each
Swing Line Borrowing shall be made on telephonic notice, given not later than
3:00 P.M. (New York City time) on a Business Day (followed (within one Business
Day) by the delivery of a confirming Notice of Borrowing).  The proceeds of each Swing Line Advance shall
be made

 39
 

available by the Swing Line Lender to Borrower
promptly, and in any event on the date of such Borrowing, by wire transfer to
Borrower’s Account.  Upon the making of
each Swing Line Advance, and without further action on the part of the Swing
Line Lender or any other Person, each Revolving Credit Lender (other than the
Swing Line Lender) shall be deemed to have irrevocably purchased a participation
interest (equal to its Ratable Share) in such Swing Line Advance, and such
Revolving Credit Lender shall, to the extent of its Unused Revolving Credit
Commitment, be responsible for reimbursing within one Business Day the Swing
Line Lender for Swing Line Advances which have not been timely repaid to the
Swing Line Lender by Borrower in accordance with the terms of this
Agreement.  If (i) any Swing Line Advance
shall be outstanding for more than five Business Days, (ii) any Swing Line
Advance is or will be outstanding on a date when Borrower requests that a
Revolving Credit Advance be made, or (iii) any Default shall occur and be
continuing, then each Revolving Credit Lender (other than the Swing Line
Lender) irrevocably agrees that it will, at the request of the Swing Line
Lender, to the extent of its Unused Revolving Credit Commitment, make a Revolving
Credit Advance (which shall initially be funded as a Base Rate Advance) in an
amount equal to such Lender’s Ratable Share of the aggregate principal amount
of all such Swing Line Advances then outstanding.  On or before 11:00 a.m. (New York City
time) on the first Business Day following receipt by each Revolving Credit
Lender of a request to make Revolving Credit Advances as provided in the
preceding sentence, each Revolving Credit Lender shall deposit in an account
specified by the Swing Line Lender the amount so requested in same day funds
and such funds shall be applied by the Swing Line Lender to repay such
outstanding Swing Line Advances  (such outstanding
Swing Line Advances so repaid are hereinafter referred to as the “Refunded
Swing Line Advances”).  At the time
the Revolving Credit Lenders make the above referenced Revolving Credit Advances,
the Swing Line Lender shall be deemed to have simultaneously made a Revolving
Credit Advance in an amount equal to its Ratable Share of such outstanding
Swing Line Advances (immediately prior to the making of such Refunded Swing
Line Advances).  Upon the making (or
deemed making, in the case of the Swing Line Lender) of any Revolving Credit Advances
pursuant to this clause (b), the amount so funded shall become an outstanding
Revolving Credit Advance and shall no longer be owed as a Swing Line
Advance.  All interest payable with respect
to any Revolving Credit Advances made (or deemed made, in the case of the Swing
Line Lender) pursuant to this clause (b) shall be appropriately adjusted to
reflect the period of time during which the Swing Line Lender had outstanding
Swing Line Advances in respect of which such Revolving Credit Advances were
made.  Each Revolving Credit Lender’s
obligation to make the Revolving Credit Advances referred to in this clause (b)
shall be absolute and unconditional and shall not be affected by any
circumstance, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, Borrower or any Person for any reason
whatsoever; (ii) the occurrence or continuance of any Default;
(iii) any adverse change in the condition (financial or otherwise) of Borrower;
(iv) the acceleration or maturity of any Advances or other obligations of
Borrower hereunder or the termination of any Commitment after the making of any
Swing Line Advance; (v) any breach of this Agreement or any Note by any
Person; or (vi) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.

(c)           Each Notice of Borrowing shall be
irrevocable and binding on Borrower.  In
the case of any Borrowing that the related Notice of Borrowing specifies is to
be comprised of Eurodollar Rate Advances, Borrower shall indemnify each Lender
against any loss (but excluding lost profits), cost or expense incurred by such
Lender as a result of any failure to fulfill on or before the date specified in
such Notice of Borrowing for such Borrowing the applicable conditions set forth
in Article III, including, without limitation, any loss (but excluding
lost profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the Advance
to be made by such Lender as part of such Borrowing when such Advance, as a
result of such failure, is not made on such date.

 40
 

(d)           Unless the Agent shall have received notice
from an Appropriate Lender prior to the time of any Borrowing that such Lender
will not make available to the Agent such Lender’s ratable portion of such
Borrowing, the Agent may assume that such Lender has made such portion
available to the Agent on the date of such Borrowing in accordance with clauses
(a) or (b) of this Section 2.02 and the Agent may, in reliance upon
such assumption, make available to Borrower on such date a corresponding
amount.  If and to the extent that such
Lender shall not have so made such ratable portion available to the Agent, such
Lender and Borrower severally agree to repay to the Agent promptly following
demand such corresponding amount together with interest thereon, for each day
from the date such amount is made available to Borrower until the date such
amount is repaid to the Agent, at (i) in the case of Borrower, the higher of
(A) the interest rate applicable at the time to Advances comprising such
Borrowing and (B) the cost of funds incurred by the Agent in respect of such
amount and (ii) in the case of such Lender, the Federal Funds Rate.  If Borrower and such Lender shall pay such
interest to the Agent for the same or an overlapping period, the Agent shall
promptly remit to Borrower the amount of such interest paid by the Lender for
such period.  If such Lender shall repay
to the Agent such corresponding amount, such amount so repaid shall constitute
such Lender’s Advance as part of such Borrowing for purposes of this Agreement.

(e)           The failure of any Lender to make the
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on the date of any
Borrowing.

SECTION 2.03.     Issuance of
and Drawings and Reimbursement Under Letters of Credit.

(a)           Request for Issuance.  Each Letter of Credit shall be issued upon
notice, given not later than 12:00 noon (New York City time) on the fifth
Business Day prior to the date of the proposed Issuance of such Letter of
Credit (or on such shorter notice as the applicable Issuing Bank may agree), by
Borrower to any Issuing Bank and the Agent. 
Each such notice by Borrower of Issuance of a Letter of Credit (a “Notice
of Issuance”) shall be by telecopier or telephone, confirmed promptly in
writing, specifying therein the requested (A) date of such Issuance (which
shall be a Business Day), (B) Available Amount of such Letter of Credit, (C)
expiration date of such Letter of Credit, (D) name and address of the
beneficiary of such Letter of Credit and (E) form of such Letter of Credit
and such Letter of Credit shall be issued pursuant to such application and
agreement for letter of credit as such Issuing Bank and Borrower shall agree
for use in connection with such requested Letter of Credit (a “Letter of
Credit Agreement”).  If the requested
form of such Letter of Credit is acceptable to such Issuing Bank in its reasonable
discretion (it being understood that any such form shall have only explicit documentary
conditions to draw and shall not include discretionary conditions), such
Issuing Bank will, upon fulfillment of the applicable conditions set forth in Section
3.02, make such Letter of Credit available to Borrower at its office
referred to in Section 8.02 or as otherwise agreed with Borrower in
connection with such Issuance.  In the
event and to the extent that the provisions of any Letter of Credit Agreement
shall conflict with, or shall otherwise include representations, warranties,
covenants or defaults more restrictive than those set forth in, this Agreement,
the provisions of this Agreement shall govern and such provisions in the Letter
of Credit Agreement shall be of no force or effect.

(b)           Participations.  By the Issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing or decreasing the amount thereof)
and without any further action on the part of the applicable Issuing Bank or
the Revolving Credit Lenders, such Issuing Bank hereby grants to each Revolving
Credit Lender, and each Revolving Credit Lender hereby acquires from such
Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Ratable Share of the Available Amount of such Letter of Credit.  Borrower hereby agrees to each such
participation.  In consideration and in furtherance

 41
 

of the foregoing, each Revolving Credit Lender hereby absolutely and
unconditionally agrees to pay to the Agent, for the account of such Issuing
Bank, such Lender’s Ratable Share of each drawing made under a Letter of Credit
funded by such Issuing Bank and not reimbursed by Borrower on the date made, or
of any reimbursement payment required to be refunded to Borrower for any
reason, which amount will be advanced, and deemed to be a Revolving Credit
Advance to Borrower hereunder, regardless of the satisfaction of the conditions
set forth in Section 3.02.  Each Revolving
Credit Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Revolving Credit Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Revolving Credit Lender further
acknowledges and agrees that its participation in each Letter of Credit will be
automatically adjusted to reflect such Lender’s Ratable Share of the Available
Amount of such Letter of Credit at each time such Lender’s Revolving Credit
Commitment is amended pursuant to an assignment in accordance with Section
8.07 or otherwise pursuant to this Agreement; provided that, with
respect to any Letter of Credit that has an expiration date after the date that
is later than 10 Business Days prior to the Revolving Credit Commitment
Termination Date, the participation of each Lender shall terminate on such
Revolving Credit Commitment Termination Date.

(c)           Drawing and Reimbursement.  The payment by an Issuing Bank of a draft
drawn under any Letter of Credit (an “L/C Disbursement”) which is not
reimbursed on the date made shall constitute for all purposes of this Agreement
the making by any such Issuing Bank of a Revolving Credit Advance to Borrower,
which shall be a Base Rate Advance, in the amount of such draft, without regard
to whether the making of such Advance would exceed such Issuing Bank’s Unused
Revolving Credit Commitment.  Each
Issuing Bank shall give prompt notice of each L/C Disbursement to Borrower and
the Agent.  Upon written demand by such
Issuing Bank, with a copy of such demand to the Agent and Borrower, each
Revolving Credit Lender shall pay to the Agent such Lender’s Ratable Share of
such outstanding Advance pursuant to Section 2.03(b).  Each Revolving Credit Lender acknowledges and
agrees that its obligation to make Revolving Credit Advances pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance
of a Default or reduction or termination of the Revolving Credit Commitments,
and that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever.  Promptly after
receipt thereof, the Agent shall transfer such funds to such Issuing Bank.  Each Revolving Credit Lender agrees to fund
its Ratable Share of an outstanding Revolving Credit Advance on (i) the
Business Day on which demand therefor is made by such Issuing Bank, provided
that notice of such demand is given not later than 12:00 noon (New York City
time) on such Business Day, or (ii) the first Business Day next succeeding such
demand if notice of such demand is given after such time.  If and to the extent that any Revolving
Credit Lender shall not have so made the amount of such Advance available to
the Agent, such Lender agrees to pay to the Agent forthwith on demand such
amount together with interest thereon, for each day from the date of demand by
any such Issuing Bank until the date such amount is paid to the Agent, at the
Federal Funds Rate for its account or the account of such Issuing Bank, as
applicable.  If such Lender shall pay to
the Agent such amount for the account of any such Issuing Bank on any Business
Day, such amount so paid in respect of principal shall constitute a Revolving
Credit Advance made by such Lender on such Business Day for purposes of this
Agreement, and the outstanding principal amount of the Revolving Credit Advance
made by such Issuing Bank shall be reduced by such amount on such Business Day.

(d)           Letter of Credit Reports.  Each Issuing Bank shall furnish (A) to the
Agent and each Revolving Credit Lender (with a copy to Borrower) on the first
Business Day of each month a written report summarizing Issuance and expiration
dates of Letters of Credit issued by such Issuing Bank

 42
 

during the preceding month and drawings during such month under all
Letters of Credit and (B) to the Agent and each Revolving Credit Lender (with a
copy to Borrower) on the first Business Day of each calendar quarter a written
report setting forth the average daily aggregate Available Amount during the preceding
calendar quarter of all Letters of Credit issued by such Issuing Bank.

(e)           Failure to Make Advances.  The failure of any Lender to make the Advance
to be made by it on the date specified in Section 2.03(c) shall not
relieve any other Lender of its obligation hereunder to make its Advance on
such date, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on such date.

(f)            Obligation Absolute.  The obligations of Borrower under any Letter
of Credit Agreement and any other agreement or instrument relating to any
Letter of Credit shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement, such Letter of Credit
Agreement and such other agreement or instrument under all circumstances, including,
without limitation, the following circumstances (it being understood that any
such payment by Borrower is without prejudice to, and does not constitute a
waiver of, any rights Borrower might have or might acquire as a result of the
payment by any Issuing Bank or any Lender of any draft or the reimbursement by
Borrower thereof):

(i)            any lack of validity
or enforceability of this Agreement, any Note, any Letter of Credit Agreement,
any Letter of Credit or any other agreement or instrument relating thereto (all
of the foregoing being, collectively, the “L/C Related Documents”);

(ii)           any change in the time,
manner or place of payment of, or in any other term of, all or any of the
obligations of Borrower in respect of any L/C Related Document or any other
amendment or waiver of or any consent to departure from all or any of the L/C
Related Documents;

(iii)          the existence of any
claim, set-off, defense or other right that Borrower may have at any time
against any beneficiary or any transferee of a Letter of Credit (or any Persons
for which any such beneficiary or any such transferee may be acting), any
Issuing Bank, the Agent, any Lender or any other Person, whether in connection with
the transactions contemplated by the L/C Related Documents or any unrelated
transaction;

(iv)          any statement or any
other document presented under a Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect;

(v)           payment by any Issuing
Bank under a Letter of Credit against presentation of a draft or certificate
that does not strictly comply with the terms of such Letter of Credit;

(vi)          any exchange, release or
non-perfection of any collateral, or any release or amendment or waiver of or
consent to departure from any guarantee, for all or any of the obligations of
Borrower in respect of the L/C Related Documents; or

(vii)         any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing,
including, without limitation, any other circumstance that might otherwise constitute
a defense available to, or a discharge of, Borrower or a Guarantor.

(g)           Replacement of an Issuing Bank.  An Issuing Bank may be replaced at any time
with another party eligible to become an Issuing Bank as provided herein, by
written notice given by Bor-

 43

rower (with the approval of the successor Issuing Bank and the Agent)
to the replaced Issuing Bank; provided
that, to the extent requested by the replaced Issuing Bank, prior to such
replacement all Letters of Credit issued by the replaced Issuing Bank are
terminated or cash collateralized or otherwise supported on terms reasonably
satisfactory to the replaced Issuing Bank. 
The Agent shall notify the Lenders of any such replacement of an Issuing
Bank.  At the time any such replacement
shall become effective, Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank (solely in its capacity as Issuing Bank)
pursuant to Section 8.16. 
From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of an Issuing
Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

(h)           Cash Collateralization.  If any Event of Default shall occur and be continuing,
on the Business Day that Borrower receives notice from the Agent (at the
direction of the Required Lenders) (or, if the maturity of the Advances has
been accelerated, Lenders with Letter of Credit obligations representing
greater than 50% of the total Letter of Credit obligations) demanding the
deposit of cash collateral pursuant to this Section 2.03(h), Borrower
shall cash collateralize the Letters of Credit pursuant to Section 6.02.

SECTION 2.04.     Fees.

(a)           Commitment Fee.  Borrower agrees to pay to the Agent for the
account of each Revolving Credit Lender and each Lender with a Delayed Draw
Tranche B Commitment, for the period (including any portion thereof when any of
the Commitments are suspended by reason of Borrower’s inability to satisfy any
condition of Article III) commencing on (i) in the case of each Initial Lender,
from (and including) the Closing Date and (ii) in the case of each other
Lender, from (and including) the effective date specified in the Assignment and
Acceptance pursuant to which such other Lender became a Lender and continuing
through (x) in the case of the Revolving Credit Lenders, the Revolving Credit
Termination Date and (y) in the case of the Lenders with a Delayed Draw Tranche
B Commitment, the date on which all Unused Delayed Draw Tranche B Commitments
are terminated (or deemed terminated), a commitment fee equal to the Applicable
Fee in effect from time to time on the average daily amount of each Lender’s
Unused Revolving Credit Commitment or Unused Delayed Draw Tranche B Commitment,
as applicable, payable in arrears.  All
commitment fees payable pursuant to this Section 2.04(a) shall be
calculated on the basis of a year comprised of 360 days and payable by Borrower
in arrears on the date of the initial Borrowing hereunder and, thereafter,
quarterly on the last day of each fiscal quarter of Borrower ending on or about
the last day of each March, June, September and December as set forth on Schedule
2.04(a) hereof and with respect to any Facility, the date on which all unused
Commitments with respect to such Facility, as applicable, are terminated (or
deemed terminated).  Any term or
provision hereof to the contrary notwithstanding, for purposes of this clause
(a), neither the making of Swing Line Advances nor the purchase of
participation interests therein pursuant to Section 2.02(b) shall
constitute usage under the Revolving Credit Commitment for purposes of
calculating commitment fees to be paid by Borrower under this clause (a).

(b)           Letter of Credit Fees.

(i)            Borrower shall pay to the Agent for the
account of each Lender a fee on such Lender’s Ratable Share of the average
daily aggregate Available Amount of all Letters of Credit issued for the
account of Borrower and outstanding from time to time at a rate per annum equal
to the Applicable

 44
 

Margin for Revolving Credit Advances that are Eurodollar Rate Advances
in effect from time to time during such calendar quarter, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing with the quarter ended June 30, 2007, and on the Revolving
Credit Commitment Termination Date.

(ii)           Borrower shall pay to each Issuing Bank, for
its own account, a fronting fee and such other commissions, issuance fees,
transfer fees and other fees and charges in connection with the Issuance or
administration of each Letter of Credit as Borrower and such Issuing Bank shall
agree.  In addition to the foregoing
fees, Borrower shall pay or reimburse an Issuing Bank for such normal and customary
costs and expenses as are incurred or charged by an Issuing Bank in issuing,
negotiating, effecting payments under, amending or otherwise administering any
Letter of Credit.

(c)           Agent’s Fees; Lead Arrangers’ Fees.  Borrower shall pay to (i) the Agent for its
own account such fees as may from time to time be agreed between Borrower and
the Agent and (ii) the Lead Arrangers for their respective own accounts
such fees as agreed to between Borrower and each such Lead Arranger.

SECTION 2.05.     Termination
or Reduction of the Commitments.

(a)           Optional.  Borrower shall have the right, upon at least
three Business Days’ notice to the Agent, without premium or penalty to
terminate in whole or permanently reduce ratably in part the Unused Revolving
Credit Commitments (but subject to Section 8.04(c)) and the Unissued
Letter of Credit Commitments, or the Unused Delayed Draw Tranche B Commitments
of the Lenders; provided that each partial reduction of a Facility
(i) shall be in the aggregate amount of $10,000,000 or an integral multiple
of $1,000,000 in excess thereof and (ii) shall be made ratably among the
Appropriate Lenders in accordance with their Commitments under such Facility.

(b)           Mandatory.  The Tranche X Commitment and the Initial
Tranche B Commitment shall automatically terminate at 5:00 p.m. New York City
time, on the Closing Date.  Any unused
portion of the Delayed Draw Tranche B Commitments shall terminate at 5:00 P.M.
(New York City time) on the Medium Term Notes Final Maturity Date. The
Revolving Credit Commitments shall automatically terminate on the Revolving
Credit Commitment Termination Date.

SECTION 2.06.     Repayment of
Advances and Letter of Credit Drawings.

(a)           Revolving Credit Advances.  Borrower shall repay to the Agent for the
ratable account of the Revolving Credit Lenders on the Revolving Credit
Commitment Termination Date the aggregate principal amount of the Revolving
Credit Advances then outstanding.

(b)           Tranche B Advances.  Borrower shall pay to the Agent, for the
account of the Tranche B Lenders, on the dates set forth below, or if any such
date is not a Business Day, on the immediately preceding Business Day (each
such date, a “Tranche B Repayment Date”), a principal amount of the
Tranche B Advances (x) as is set forth below, opposite such date under the
heading “Initial Tranche B Advance Amount” if no Delayed Draw Tranche B
Advances have been made on or before the applicable Tranche B Repayment Date or
(y) as set forth below under the heading “Total Amount” if any Delayed
Draw Tranche B Advances have been made as of the applicable Tranche B Repayment
Date (in the case of clauses (x) and (y) as adjusted from time to time
pursuant to Section 2.10 and in the case of clause (y) as may
be further adjusted as provided below), together in each case with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of such
payment.  To the extent not previously
paid, all Tranche B Advances shall be due and payable on the Tranche B Maturity
Date.

 45
 

 

	
  Tranche B Repayment Date

  	
   

  	
  Initial Tranche B 

  Advance Amount

  	
   

  	
  Total Amount**

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 30,
  2007

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 30, 2008

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 29, 2008

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 28,
  2008

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 28,
  2008

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 29, 2009

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 28, 2009

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 27,
  2009

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 27,
  2009

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 28, 2010

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 27, 2010

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 26,
  2010

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 26,
  2010

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 27, 2011

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 26, 2011

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 25,
  2011

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 25,
  2011

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 25, 2012

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 24, 2012

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 23,
  2012

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 30,
  2012

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 31, 2013

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  June 30, 2013

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  September 29,
  2013

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  December 29,
  2013

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  March 30, 2014

  	
   

  	
  $

  	
  13,787,500

  	
   

  	
  $

  	
  14,445,000

  	
   

  
	
  Tranche B Maturity Date

  	
   

  	
  $

  	
  5,142,737,500

  	
   

  	
  $

  	
  5,387,985,000

  	
   

  

**                                  In
the event that Delayed Draw Tranche B Advances have been made on or before a
Tranche B Repayment Date but the aggregate principal amount of such Delayed
Draw Tranche B Advances that were made are less than the aggregate Delayed Draw
Tranche B Commitments in effect on the Closing Date, then the amount in the “Total
Amount” column for each applicable Tranche B Repayment Date shall be reduced on
a pro rata basis to give effect to the lower Delayed Draw Tranche B Advances
actually made at that time.  For example,
if on or before September 30, 2007 only $100.0 million in aggregate principal
amount of Delayed Draw Tranche B Advances have actually been made, then the
amount in the “Total Amount” column for each date, other than the Tranche B
Maturity Date, would be $14,037,500, and the amount in such column for the
Tranche B Maturity Date would be to the extent not previously paid,
$5,235,987,500.

(c)           Swing Line Advances.  Borrower shall repay to the Swing Line Lender
for the ratable account of the Swing Line Lenders on the Revolving Credit
Commitment Termination Date the aggregate principal amount of the Swing Line
Advances then outstanding.

(d)           Tranche X Advances.  Borrower shall repay to the Agent for the
account of the Tranche X Lenders on the date which is 18 months after the
Closing Date or, if such date is not a Business Day, the first Business Day
thereafter, an aggregate principal amount of $750,000,000, as adjusted

 46
 

from time to time pursuant to Section 2.10, together with
accrued and unpaid interest on the principal amount to be paid to but excluding
the date of such payment.  To the extent
not previously paid, all Tranche X Advances shall be due and payable on the
Tranche X Maturity Date.

SECTION 2.07.      Interest
on Advances.

(a)           Scheduled Interest.  Borrower shall pay interest on the unpaid
principal amount of each Advance owing to each Lender from the date of such
Advance until such principal amount shall be paid in full, at the following
rates per annum:

(i)            Base Rate Advances.  During such periods as such Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (x) the Base
Rate in effect from time to time plus (y) the Applicable Margin in
effect from time to time, payable in arrears quarterly on the last day of each
fiscal quarter of Borrower ending on or about the last day of each March, June,
September and December as set forth on Schedule 2.04(a) hereof and on
the date such Base Rate Advance shall be Converted or paid in full.

(ii)           Eurodollar Rate
Advances.  During such periods as
such Advance is a Eurodollar Rate Advance, a rate per annum equal at all times
during each Interest Period for such Advance to the sum of (x) the Eurodollar
Rate for such Interest Period for such Advance plus (y) the Applicable
Margin in effect from time to time, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months
from the first day of such Interest Period and on the date such Eurodollar Rate
Advance shall be Converted or paid in full.

(b)           Default Interest.  Upon the occurrence and during the continuance
of an Event of Default under Section 6.01(a), Borrower will pay interest
(“Default Interest”) on (i) the overdue principal amount of each
Advance owing to each Lender, payable in arrears on the dates referred to in
clause (a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2%
per annum above the rate per annum required to be paid on such Advance pursuant
to clause (a)(i) or (a)(ii) above and (ii) to the fullest extent
permitted by law, the amount of any interest, fee or other amount payable
hereunder that is not paid when due, from the date such amount shall be due
until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and promptly following demand, at a rate per annum
equal at all times to 2% per annum above the rate per annum required to be paid
on Base Rate Advances pursuant to clause (a)(i) above; provided, however,
that following acceleration of the Advances pursuant to Section 6.01,
Default Interest shall accrue and be payable hereunder whether or not
previously required by the Agent.

SECTION 2.08.      Interest
Rate Determination.

(a)           Each
Reference Bank agrees, if requested by the Agent, to furnish to the Agent
timely information for the purpose of determining each Eurodollar Rate.  If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest
rate on the basis of timely information furnished by the remaining Reference
Banks.  The Agent shall give prompt
notice to Borrower and the Lenders of the applicable interest rate determined
by the Agent for purposes of Section 2.07(a)(i) or (ii), and the
rate, if any, furnished by each Reference Bank for the purpose of determining
the interest rate under Section 2.07(a)(ii).

(b)           If,
with respect to any Eurodollar Rate Advances under any Facility, the Lenders
owed at least a majority of the aggregate principal amount thereof notify the
Agent that the Eurodollar Rate for any Interest Period for such Advances will
not adequately reflect the cost to such Lenders of

 47
 

making, funding or maintaining their respective
Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so
notify Borrower and the Appropriate Lenders, whereupon (i) each Eurodollar Rate
Advance under that Facility will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance, and (ii)
the obligation of the Appropriate Lenders to make, or to Convert Advances under
that Facility into, Eurodollar Rate Advances shall be suspended until the Agent
shall notify Borrower and the Appropriate Lenders that the circumstances
causing such suspension no longer exist.

(c)           If Borrower shall fail to select the
duration of any Interest Period for any Eurodollar Rate Advances in accordance
with the provisions contained in the definition of “Interest Period” in Section
1.01, the Agent will forthwith so notify Borrower and the Appropriate
Lenders and such Advances will automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances.

(d)           On the date on which the aggregate unpaid
principal amount of Eurodollar Rate Advances comprising any Borrowing shall be
reduced, by payment or prepayment or otherwise, to less than $5,000,000, such
Advances shall automatically Convert into Base Rate Advances.

(e)           Upon the occurrence and during the
continuance of any Event of Default under Section 6.01(a), (i) each
Eurodollar Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance and (ii)
the obligation of the Lenders to make, or to Convert Advances into, Eurodollar
Rate Advances shall be suspended.

(f)            If Reuters LIBOR 01 page (or any successor
page) is unavailable and fewer than two Reference Banks furnish timely
information to the Agent for determining the Eurodollar Rate for any Eurodollar
Rate Advances,

(i)            the Agent shall
forthwith notify Borrower and the Appropriate Lenders that the interest rate
cannot be determined for such Eurodollar Rate Advances,

(ii)           each such Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance (or if such Advance is then a Base Rate Advance,
will continue as a Base Rate Advance), and

(iii)          the obligation of the
Lenders to make Eurodollar Rate Advances or to Convert Advances into Eurodollar
Rate Advances shall be suspended until the Agent shall notify Borrower and the
Appropriate Lenders that the circumstances causing such suspension no longer exist.

SECTION 2.09.      Optional
Conversion of Advances.  Borrower may
on any Business Day, upon notice given to the Agent not later than 1:00 p.m.
(New York City time) on the (x) third Business Day prior to the date of the
proposed Conversion of Advances from Base Rate Advances to Eurodollar Rate
Advances and (y) the first Business Day prior to the date of the proposed
Conversion of Advances from Eurodollar Rate Advances to Base Rate Advances, and
subject to the provisions of Sections 2.08 and 2.12, Convert all
or any portion of Advances of one Type comprising the same Borrowing into Advances
of the other Type; provided, however, that (a) Borrower shall pay
any amounts owing pursuant to Section 8.04(c) in connection with any
Conversion of Eurodollar Rate Advances into Base Rate Advances, and any Conversion
of Base Rate Advances into Eurodollar Rate Advances shall be in an amount not
less than the minimum amount specified in Section 2.01(a) and (b)
no portion of any Advance may be Converted into a Eurodollar Rate Advance if
any Event of Default has occurred and is continuing.  Each such notice of a Conversion shall,
within the restrictions specified above, specify (i) the date of such

 48
 

Conversion, (ii) the Advances to be Converted and
(iii) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for each such Advance. 
Each notice of Conversion shall be irrevocable and binding on Borrower.

SECTION 2.10.      Prepayments
of Advances.

(a)           Optional.  Borrower may at any time and from time to
time prepay the Advances in whole or in part, without premium or penalty
(subject to Section 2.10(c)), upon notice at least three Business Days’
prior to the date of such prepayment, in the case of Eurodollar Rate Advances,
and not later than 12:00 noon (New York City time) on the date of such
prepayment, in the case of Base Rate Advances, to the Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given Borrower shall, prepay the outstanding principal amount of the
Advances comprising part of the same Borrowing in whole or ratably in part,
together with accrued interest to the date of such prepayment on the principal
amount prepaid; provided, however, that (x) each partial
prepayment shall be in an aggregate principal amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and (y) in the event of
any such prepayment of a Eurodollar Rate Advance, Borrower shall be obligated
to reimburse the Lenders for any additional amounts in respect thereof pursuant
to Section 8.04(c).  Prepayments
under this Section 2.10(a) shall be applied as determined by Borrower in
its sole discretion.

(b)           Mandatory.

(i)            If any Debt for Borrowed Money shall be
issued or incurred by Borrower or any Subsidiary (other than Debt permitted
under Section 5.02(c) except clauses (xix) and (xx)), an
amount equal to 100% of the Net Cash Proceeds thereof shall be applied on the
date of such issuance or incurrence in accordance with clause (iv) below.

(ii)           If, for any fiscal year of Borrower
commencing with the fiscal year ending December 28, 2008, there shall be Excess
Cash Flow, Borrower shall, no later than five Business Days after the date on
which the financial statements with respect to such fiscal year are or are
required to be delivered pursuant to Section 5.01(i), make prepayments
as provided in clause (iv) below in an aggregate amount equal to the Applicable
ECF Percentage of Excess Cash Flow for the fiscal year then ended.

(iii)          On each occasion that a Prepayment Event
occurs, Borrower shall within five Business Days after the occurrence of such
Prepayment Event (or, in the case of Deferred Net Cash Proceeds, within five
Business Days after the last day of the Reinvestment Period relating to such
Prepayment Event), make prepayments, in accordance with clause (iv)
below in an aggregate amount equal to 100% of the Net Cash Proceeds from such
Prepayment Event; provided that up to 50% of the Net Cash Proceeds that
constitute Special Proceeds may be applied to Junior Capital that is being
repurchased, redeemed or repaid pursuant to Section 5.02(g)(viii)
or (j)(i)(w); provided  further that no prepayment shall be
required as a result of any Asset Sale Prepayment Event and Casualty Event
until the aggregate amount of Net Cash Proceeds from all Asset Sale Prepayment
Events and Casualty Events following the Closing Date that have not previously
been applied to prepay Advances in accordance with this Section 2.10
exceeds $50,000,000 with respect to such Asset Sale Prepayment Events and
Casualty Events.

(iv)          Amounts to be applied in connection with
prepayments made pursuant to this Section 2.10(b) shall be applied (A) first,
to the repayment of the Tranche X Advances (in forward order of maturity), (B) second,
to the prepayment of the Tranche B Advances on a pro rata basis among the scheduled repayments remaining to
be made on each other Tranche B Repayment Date pursuant to Section 2.06
(provided that Borrower may elect to apply such prepayment to the next
four occurring installments of the Tranche B Facility after the date of
such prepayments) and, (C) third, to the Revolving Credit Advances and
Revolving Credit Commitments.  The application
of any prepayment pursuant to

 49
 

this Section
2.10(b) shall be made, first, to Base Rate Advances and, second,
to Eurodollar Rate Advances.  Each
prepayment of the Advances under this Section 2.10(b) (except in the
case of Revolving Credit Advances that are Base Rate Advances and Swing Line
Advances) shall be accompanied by accrued interest to the date of such
prepayment on the amount prepaid.

Notwithstanding the foregoing, to the extent that
(x) a mandatory prepayment of the type described in Section 2.10(b)(iii)
would be required to be made with Net Cash Proceeds received by Foreign
Subsidiaries of Borrower, (y) Borrower or any Guarantor requires a
dividend or distribution of such Net Cash Proceeds from such Foreign
Subsidiaries in order to make such prepayment and (z) such dividend or
distribution would result in material adverse tax consequence to Borrower, then
no such prepayment shall be required to until such time as either such dividend
or distribution is no longer required to make such prepayment or such dividend
or distribution would no longer have a material adverse tax consequence to
Borrower.

(v)           Revolving Credit Advance Prepayments.

(A)          In
the event of the termination of all the Revolving Credit Commitments, Borrower
shall, on the date of such termination, repay or prepay all its outstanding
Revolving Credit Advances and all outstanding Swing Line Advances and replace
all outstanding Letters of Credit or cash collateralize all outstanding Letters
of Credit in accordance with the procedures set forth in Section 6.02.

(B)           In
the event of any partial reduction of the Revolving Credit Commitments, then
(x) at or prior to the effective date of such reduction, the Agent shall
notify Borrower and the Revolving Credit Lenders of the sum of the outstanding
Revolving Credit Advances after giving effect thereto and (y) if the sum
of the outstanding Revolving Credit Advances would exceed the aggregate amount
of Revolving Commitments after giving effect to such reduction, then Borrower
shall, on the date of such reduction, first, repay or prepay Swing Line
Advances, second, repay or prepay Revolving Credit Advances and third,
replace outstanding Letters of Credit or cash collateralize outstanding Letters
of Credit in accordance with the procedures set forth in Section 6.02,
in an aggregate amount sufficient to eliminate such excess.

(C)           If,
on any date, the Agent notifies Borrower that, the sum of the aggregate principal
amount of all Revolving Credit Advances (including Advances to be made by an
Issuing Bank or a Revolving Credit Lender pursuant to Section 2.03(a))
plus the aggregate Available Amount of all Letters of Credit then
outstanding plus the aggregate principal amount of all Swing Line
Advances exceeds 100% of the aggregate Revolving Credit Commitments of the
Lenders on such date, Borrower shall, as soon as practicable and in any event
within two Business Days after receipt of such notice, prepay the outstanding
principal amount of any Revolving Credit Advances in an aggregate amount sufficient
to reduce such sum to an amount not to exceed 100% of the aggregate Revolving
Credit Commitments of the Lenders on such date. 
Each prepayment made pursuant to this clause (C) shall be made together
with any interest accrued to the date of such prepayment on the principal
amounts prepaid and, in the case of any prepayment of a Eurodollar Rate Advance
on a date other than the last day of an Interest Period or at its maturity, any
additional amounts which Borrower shall be obligated to reimburse to the
Lenders in respect thereof pursuant to Section 8.04(c).

(D)          In
the event that the aggregate Letter of Credit Obligations exceed the Letter of
Credit Commitment then in effect, Borrower shall, without notice or demand,
immediately replace outstanding Letters of Credit or cash collateralize or
provide other satisfactory support in respect of outstanding Letters of Credit
in accordance with the procedures set forth in Section 6.02, in an
aggregate amount sufficient to eliminate such excess.

 50
 

(vi)          The Agent shall give prompt notice of any
prepayment required under this Section 2.10(b) to Borrower and the
Lenders.

(c)           All
prepayments of (i) Tranche X Advances effected on or prior to the first anniversary
of the Closing Date or (ii) Tranche B Advances effected on or prior to the
first anniversary of the Closing Date, in each case made pursuant to Section
2.10(a), with the proceeds of a substantially concurrent issuance of loans
under any senior secured credit facilities pursuant to this Agreement shall be
accompanied by a prepayment fee equal to 1.00% of the aggregate amount of such
prepayments if the Applicable Margin or similar interest rate spread applicable
to such new loans is or, as of the date of issuance thereof, would be less than
the Applicable Margin applicable to the Tranche X Advances or Tranche B
Advances, as the case may be, in effect immediately before the incurrence of
such new loans.

SECTION 2.11.      Increased
Costs.

(a)           If, due to either (i) the introduction of or
any change in or in the interpretation of any law or regulation after the later
of the Closing Date or the date a Lender shall become a Lender hereunder, or
(ii) the compliance with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law) after the
later of the Closing Date or the date a Lender shall become a Lender hereunder,
there shall be any increase in the cost to such Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances or of agreeing to issue
or of issuing or maintaining or participating in Letters of Credit (excluding
for purposes of this Section 2.11 any such increased costs resulting
from (A) Taxes or Other Taxes and (B) changes in the basis of taxation of
overall net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender is organized
or has its Applicable Lending Office or any political subdivision thereof),
then Borrower shall from time to time, promptly following demand by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of
such Lender additional amounts sufficient to compensate such Lender for such
increased cost; provided that Borrower’s obligations under this Section
2.11(a) shall be limited to amounts accruing not more than 90 days prior to
the invoice thereof by such Lender (such time period to be extended as
necessary to take into account any retroactive application of a change in law
giving rise to such obligations); provided, further, that each
Lender claiming additional amounts under this Section 2.11(a) agrees to
use commercially reasonable efforts (in its own judgment, consistent with its
internal policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would avoid the
need for, or reduce the amount of, such increased cost that may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.  A
certificate as to the amount of such increased cost, submitted to Borrower and
the Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error.

(b)           If any Lender determines that compliance
with any law or regulation or any guideline or request from any central bank or
other governmental authority (whether or not having the force of law) that
becomes effective after the later of the Closing Date or the date such Lender
shall become a Lender hereunder, or any change in any such existing law,
regulation, guideline or request occurring after the later of the Closing Date
or the date such Lender shall become a Lender hereunder affects or would affect
the amount of capital required or expected to be maintained by such Lender or
any corporation controlling such Lender and that the amount of such capital is
increased by or based upon the existence of such Lender’s commitment to lend or
to issue or participate in Letters of Credit hereunder and other commitments of
such type or the issuance or maintenance of or participation in the Letters of
Credit (or similar contingent obligations), then, promptly following demand by
such Lender (with a copy of such demand to the Agent), Borrower shall pay to
the Agent for the account of such Lender, from time to time as specified by
such Lender, additional amounts sufficient to compensate such Lender or such
corporation in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in

 51
 

capital to be allocable to the existence of such Lender’s commitment to
lend or to issue or participate in Letters of Credit hereunder or to the issuance
or maintenance of or participation in any Letters of Credit; provided
that Borrower’s obligations under this Section 2.11(b) shall be limited
to amounts accruing not more than 90 days prior to the invoice thereof by such
Lender (such time period to be extended as necessary to take into account any
retroactive application of a change in law giving rise to such obligations);
and provided, further, that each Lender claiming additional
amounts under this Section 2.11(b) agrees to use commercially reasonable
efforts (in its own judgment, consistent with its internal policy and legal and
regulatory restrictions) to designate a different Applicable Lending Office if
the making of such a designation would avoid the need for, or reduce the amount
of, such increased cost that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender.  A certificate as to such amounts submitted to
Borrower and the Agent by such Lender shall be conclusive and binding for all
purposes, absent manifest error.

SECTION 2.12.      Illegality.  Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent and Borrower that the
introduction of or any change in or in the interpretation of any law or
regulation occurring after the later of the Closing Date or the date a Lender
shall become a Lender hereunder makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for such Lender or its
Eurodollar Lending Office to perform its obligations hereunder to make
Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances hereunder,
(a) each Eurodollar Rate Advance under the applicable Facility will
automatically, upon such demand, Convert into a Base Rate Advance and (b) the
obligation of such Lender to make Eurodollar Rate Advances or to Convert
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify Borrower and the Appropriate Lenders that the circumstances causing such
suspension no longer exist; provided, however, that, before
making any such demand, such Lender agrees to use commercially reasonable
efforts (in its own judgment, consistent with its internal policy and legal and
regulatory restrictions) to designate a different Eurodollar Lending Office if
the making of such a designation would allow such Lender or its Eurodollar
Lending Office to continue to perform its obligations to make Eurodollar Rate
Advances or to continue to fund or maintain Eurodollar Rate Advances and would
not, in the judgment of such Lender, be otherwise disadvantageous to such
Lender.

SECTION 2.13.      Payments
and Computations; Pro Rata Treatment.

(a)           Borrower
shall make each payment hereunder, irrespective of any right of counterclaim,
set-off, rescission or defense (other than defense of payment) (all of which
are hereby waived) not later than 12:00 noon (New York City time) on the day
when due in Dollars to the Agent at the Agent’s Account in same day funds.  The Agent will promptly thereafter cause to
be distributed like funds relating to the payment of principal or interest,
fees or commissions fees ratably (other than amounts payable pursuant to Section
2.04, 2.11, 2.14 or 8.04(c) or (d)) to the
Lenders for the account of their respective Applicable Lending Offices, and
like funds relating to the payment of any other amount payable to any Lender to
such Lender for the account of its Applicable Lending Office, in each case to
be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.07(c), from and after the effective date specified
in such Assignment and Acceptance, the Agent shall make all payments hereunder
and under the Notes in respect of the interest assigned thereby to the Lender
assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves.

(b)           Borrower
hereby authorizes each Lender, if and to the extent payment owed to such Lender
by Borrower is not made when due hereunder or under the Note held by such
Lender, to charge from time to time against any or all of Borrower’s accounts
with such Lender any amount so due.

 52
 

(c)           All
computations of interest based on clause (a) of the definition of Base Rate
shall be made by the Agent on the basis of a year of 365 or 366 days, as the
case may be, and all computations of interest based on the Eurodollar Rate or
the Federal Funds Rate and of commitment fees and Letter of Credit commissions
shall be made by the Agent on the basis of a year of 360 days, in each case for
the actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are
payable.  Each determination by the Agent
of an interest rate hereunder shall be conclusive and binding for all purposes,
absent manifest error.

(d)           Whenever any payment hereunder or under the
Notes shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension
of time shall in such case be included in the computation of payment of
interest, fee or commissions, as the case may be; provided, however,
that, if such extension would cause payment of interest on or principal of
Eurodollar Rate Advances to be made in the next following calendar month, such
payment shall be made on the next preceding Business Day.

(e)           Unless the Agent shall have received notice
from Borrower prior to the time on which any payment is due to the Lenders
hereunder that Borrower will not make such payment in full, the Agent may
assume that Borrower has made such payment in full to the Agent on such date
and the Agent may, in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such
Lender.  If and to the extent Borrower
shall not have so made such payment in full to the Agent, each Lender shall
repay to the Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the
Agent, at the Federal Funds Rate.

(f)            Each payment by Borrower of interest in
respect of Advances shall be applied to the amounts of such obligations owing
to the Lenders pro rata according to the respective amounts then due and owing
the Lenders.  Each payment (including
prepayments) on account of principal of the Tranche X Advances shall be
allocated among the Lenders with outstanding Tranche X Advances pro rata based
on the principal amount of the Tranche X Advances held by such Lenders.  Each payment (including prepayments) on
account of principal of the Tranche B Advances and, after the Increase Effective
Date, Incremental Term Advances, shall be allocated among the Lenders with
outstanding Tranche B Advances and, after the Increase Effective Date,
Incremental Term Advances, pro rata based on the principal amount of the
Tranche B Advances and, after the Increase Effective Date, Incremental Term
Advances, held by such Lenders.  Each
payment by Borrower on account of principal of the Revolving Credit Advances
shall be made pro rata according to the respective outstanding principal
amounts of the Revolving Credit Advances then held by the Revolving Credit Lenders.

SECTION 2.14.      Taxes.

(a)           Any
and all payments by Borrower under this Agreement and each Note shall be made
without setoff, counterclaim or other defense, and free and clear of, and
without deduction or withholding for or on account of, any Taxes, except to the
extent such Taxes are imposed by law.  In
the event that any Taxes are imposed and required by law to be deducted or
withheld from any payment required to be made by Borrower to or on behalf of
the Agent or any Lender hereunder then:

(i)            subject to clause (f)
below, if such Taxes are Non-Excluded Taxes, the amount of such payment shall
be increased as may be necessary such that such payment is made, after withholding
or deduction for or on account of such Taxes, in an amount that is not less
than the amount provided for herein; and

 53
 

(ii)           Borrower shall withhold
the full amount of such Taxes from such payment (as increased pursuant to
clause (a)(i)) and shall pay such amount to the Governmental Authority imposing
such Taxes in accordance with applicable law.

(b)           In addition, Borrower shall pay any and all
Other Taxes imposed to the relevant Governmental Authority imposing such Other
Taxes in accordance with applicable law.

(c)           As promptly as practicable after the payment
of any Taxes or Other Taxes, Borrower shall furnish to the Agent a copy of an
official receipt (or a certified copy thereof) evidencing the payment of such
Taxes or Other Taxes.  The Agent shall
make copies thereof available to any Lender upon request therefor.

(d)           Subject to clause (f), Borrower shall
indemnify the Agent and each Lender for any Non-Excluded Taxes and Other Taxes
levied, imposed or assessed on (and whether or not paid directly by) the Agent
or such Lender (and whether or not such Non-Excluded Taxes or Other Taxes are
correctly or legally asserted by the relevant Governmental Authority).  Promptly upon having knowledge that any such
Non-Excluded Taxes or Other Taxes have been levied, imposed or assessed, and
promptly upon notice thereof by the Agent or any Lender, Borrower shall pay
such Non-Excluded Taxes or Other Taxes directly to the relevant Governmental Authority
(provided, however, that neither the Agent nor any Lender shall
be under any obligation to provide any such notice to Borrower).   In addition, Borrower shall indemnify the
Agent and each Lender for any incremental Non-Excluded Taxes and Other Taxes
that may become payable by the Agent or any Lender as a result of any failure
of Borrower to pay any Taxes when due to the appropriate Governmental Authority
or to deliver to the Agent, pursuant to clause (c), documentation evidencing
the payment of Taxes or Other Taxes. 
With respect to indemnification for Non-Excluded Taxes and Other Taxes
actually paid by the Agent or any Lender or the indemnification provided in the
immediately preceding sentence, such indemnification shall be made within 30
days after the date the Agent or such Lender, as the case may be, makes written
demand therefor.  Borrower acknowledges
that any payment made to the Agent or any Lender or to any Governmental
Authority in respect of the indemnification obligations of Borrower provided in
this clause shall constitute a payment in respect of which the provisions of
clause (a) and this clause shall apply.

(e)           Each Non-U.S. Lender, on or prior to the
date on which such Non-U.S. Lender becomes a Lender hereunder (and from time to
time thereafter upon the request of Borrower or the Agent, but only for so long
as such non-U.S. Lender is legally entitled to do so), shall deliver to
Borrower and the Agent either:

(i)            two duly completed
copies of either (x) Internal Revenue Service Form W-8BEN claiming
eligibility of the Non-U.S. Lender for benefits of an income tax treaty to
which the United States is a party or (y) Internal Revenue Service Form W-8ECI,
or in either case an applicable successor form; or

(ii)           in the case of a
Non-U.S. Lender that is not legally entitled to deliver either form listed in
clause (e)(i), (x) a certificate of a duly authorized officer of such Non-U.S.
Lender to the effect that such Non-U.S. Lender is not (A) a “bank” within the
meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of
Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a
controlled foreign corporation receiving interest from a related Person within
the meaning of Section 881(c)(3)(C) of the Code (such certificate, an “Exemption
Certificate”) and (y) two duly completed copies of  Internal Revenue Service Form W-8BEN or
applicable successor form.

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(f)            Borrower shall not be obligated to pay any
additional amounts to any Lender pursuant to clause (a)(i), or to
indemnify any Lender pursuant to clause (d), in respect of United States
federal withholding taxes to the extent imposed as a result of (i) the failure
of such Lender to deliver to Borrower the form or forms and/or an Exemption
Certificate, as applicable to such Lender, pursuant to clause (e), (ii) such
form or forms and/or Exemption Certificate not establishing a complete
exemption from U.S. federal withholding tax or the information or
certifications made therein by the Lender being untrue or inaccurate on the
date delivered in any material respect, or (iii) the Lender designating a successor
lending office at which it maintains its Loans which has the effect of causing
such Lender to become obligated for tax payments in excess of those in effect
immediately prior to such designation; provided, however, that
Borrower shall be obligated to pay additional amounts to any such Lender
pursuant to clause (a)(i), and to indemnify any such Lender pursuant to clause
(d), in respect United States federal withholding taxes if (i) any such failure
to deliver a form or forms or an Exemption Certificate or the failure of such
form or forms or Exemption Certificate to establish a complete exemption from
U.S. federal withholding tax or inaccuracy or untruth contained therein
resulted from a change in any applicable statute, treaty, regulation or other
applicable law or any interpretation of any of the foregoing occurring after
the date such Lender becomes a Lender hereunder, which change rendered such
Lender no longer legally entitled to deliver such form or forms or Exemption
Certificate or otherwise ineligible for a complete exemption from U.S. federal
withholding tax, or rendered the information or certifications made in such
form or forms or Exemption Certificate untrue or inaccurate in a material
respect, (ii) the redesignation of the Lender’s lending office was made at the
request of Borrower or (iii) the obligation to pay any additional amounts to
any such Lender pursuant to clause (a)(i) or to indemnify any such Lender pursuant
to clause (d) is with respect to a Lender that becomes a Lender as a result of
an assignment made at the request of Borrower.

SECTION 2.15.      Sharing
of Payments, Etc.  If any Lender
shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) on account of the Advances owing to it
(other than pursuant to Section 2.11, 2.14 or 8.04(c)
or (d)) in excess of its ratable share of payments on account of the
Advances obtained by all the Lenders, such Lender shall forthwith purchase from
the other Lenders such participations in the Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and such Lender shall repay
to the purchasing Lender the purchase price to the extent of such recovery
together with an amount equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered; provided, further, that, so long as the obligations
under this Agreement shall not have been accelerated, any excess payment
received by any Appropriate Lender shall be shared on a pro rata basis only
with the other Appropriate Lenders.  Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.15 may, to the fullest extent permitted by
applicable law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the
direct creditor of Borrower in the amount of such participation.

SECTION 2.16.      Evidence
of Debt.

(a)           Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the indebtedness of
Borrower to such Lender resulting from each Advance owing to such Lender from
time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder in respect of Advances.  Borrower agrees that upon notice by any
Lender to Borrower (with a copy of such notice to the Agent) to the effect that
a Note is required or appropriate in order for such Lender to evidence (whether
for purposes of pledge, enforcement or otherwise)

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the Advances owing to, or to be made by, such Lender, Borrower shall
promptly execute and deliver to such Lender the applicable Note payable to the
order of such Lender in a principal amount up to the Revolving Credit
Commitment, the Tranche X Advance, the Tranche B Advance or the Swing Line Commitment,
as the case may be, of such Lender.

(b)           The Register maintained by the Agent
pursuant to Section 8.07(d) shall include a control account, and a
subsidiary account for each Lender, in which accounts (taken together) shall be
recorded (i) the date and amount of each Borrowing made hereunder, the Type of
Advances comprising such Borrowing and, if appropriate, the Interest Period
applicable thereto, (ii) the terms of each Assignment and Acceptance delivered
to and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from Borrower to each Lender hereunder and
(iv) the amount of any sum received by the Agent from Borrower hereunder and
each Lender’s share thereof.

(c)           Entries made in good faith by the Agent in
the Register pursuant to clause (b) above, and by each Lender in its account or
accounts pursuant to clause (a) above, shall be prima  facie
evidence of the amount of principal and interest due and payable or to become
due and payable from Borrower to, in the case of the Register, each Lender and,
in the case of such account or accounts, such Lender, under this Agreement,
absent manifest error; provided, however, that the failure of the
Agent or such Lender to make an entry, or any finding that an entry is
incorrect, in the Register or such account or accounts shall not limit or
otherwise affect the obligations of Borrower under this Agreement.

SECTION 2.17.      Incremental
Facilities.

(a)           Borrower may, by written notice to the
Agent, elect to request the establishment of a new term loan commitment on the
Second Step Closing Date, which may be additional Tranche B Commitments or
commitments to provide a new tranche of term advances (an “Incremental Term
Commitment”), by an amount not in excess of $2,105,000,000 in the
aggregate.  The notice shall specify (i)
the date (the “Increase Effective  Date”) on which Borrower proposes that the
increased or new commitments shall be effective, which shall be a date not
fewer than 5 Business Days (or such shorter period as is reasonably acceptable
to the Agent) after the date on which such notice is delivered to the Agent and
(ii) the identity of each Eligible Assignee to whom Borrower proposes any
portion of such increased or new commitments be allocated and the amounts of
such allocations; provided that any
existing Lender (other than any Lender party to the Second Step Commitment
Letter) approached to provide all or a portion of the Incremental Term
Commitments may elect or decline, in its sole discretion, to provide such
increased or new commitment.

(b)           The Incremental Term Commitments shall
become effective, as of the Increase Effective Date; provided that:

(i)            no Default shall have
occurred and be continuing or would result from the borrowings to be made on
the Increase Effective Date;

(ii)           on the Increase
Effective Date, Borrower represents and warrants that:

(A)          the representations of
Borrower and its Subsidiaries contained in Sections 4.01(a), (b)
(other than clauses (ii) – (iv)), (c), (d), (g), (j)
and (l)(ii) are true and correct in all material respects as of such
date and the Agent shall have received a certificate, signed by the chief
financial officer of Borrower to the foregoing effect; and

(B)           there shall not have
occurred a Material Adverse Effect;

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(iii)          the Acquisition
Conditions shall have been satisfied.

(c)           the terms and provisions of Advances made
pursuant to the Incremental Term Commitments (“Incremental Term Advances”)
shall be as follows:

(i)            the maturity date of
the Incremental Term Advances shall be the Tranche B Maturity Date;

(ii)           the weighted average
life to maturity of the Incremental Term Advances shall be the same as the
remaining weighted average life to maturity of the existing Tranche B Advances;

(iii)          the terms and provisions
of Incremental Term Advances shall be, except as set forth in clause (iv) of
this paragraph (c), identical to the Tranche B Advances (it being understood
that Incremental Term Advances may be additional Tranche B Advances);

(iv)          the Applicable Margins
for the Incremental Term Advances shall be determined by Borrower and the
Lenders of the Incremental Term Advances; provided that in the event
that the Applicable Margins for any Incremental Term Advances are greater than
the Applicable Margins for the Tranche B Advances as in effect on the Closing
Date by more than 25 basis points, then the Applicable Margins for the Tranche
B Advances shall be increased to the extent necessary so that the Applicable
Margins for the Tranche B Advances shall be increased to equal the Applicable
Margins for the Incremental Term Advances minus 25 basis points; provided,
further, that in determining the Applicable Margins applicable to the
Tranche B Advances and the Incremental Term Advances, (x) original issue
discount (“OID”) or upfront fees (which shall be deemed to constitute
like amounts of OID) payable by Borrower to the Lenders of the Tranche B
Advances or the Incremental Term Advances in the primary syndication thereof
shall be included (with OID being equated to interest based on an assumed
four-year life to maturity) and (y) customary arrangement or commitment fees
payable to the Lead Arrangers (or their affiliates) in connection with the
Tranche B Advances or to one or more arrangers (or their Affiliates) of
the Incremental Term Advances shall be excluded;

(v)           Borrower shall have
paid all reasonable and documented accrued fees and expenses (including the
reasonable and documented fees and expenses of Cahill Gordon & Reindel LLP) of the Agent and the applicable
Lenders in connection with the Incremental Term Commitments and related
transactions to the extent that such fees and expenses shall have been invoiced
prior to the Increase Effective Date; and

(vi)          to the extent that the
terms and provisions of Incremental Term Advances are not identical to the
Tranche B Advances (except as permitted by clause (iv) above) they shall be reasonably
satisfactory to the Agent and Borrower.

The new Incremental Term Commitments shall be effected
by an Increase Joinder.  The Increase
Joinder may, without the consent of any other Lenders, effect such amendments
to this Agreement and the other Loan Documents as may be necessary or
appropriate, in the reasonable opinion of the Agent and Borrower, to effect the
provisions of this Section 2.17.

(d)           On any Increase Effective Date on which new
Incremental Term Commitments are effective, subject to the satisfaction of the
foregoing terms and conditions, each Lender of such new Incremental Term
Commitment shall make an Advance to Borrower in an amount equal to its new Incremental
Term Commitment.

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(e)           The Incremental Term Advances and
Incremental Term Commitments established pursuant to this paragraph shall
constitute Advances and Commitments under, and shall be entitled to all the
benefits afforded by, this Agreement and the other Loan Documents, and shall,
without limiting the foregoing, benefit equally and ratably from the Guarantee
and security interests created by the Pledge Agreement.  The Loan Parties shall take any actions
reasonably required by the Agent to ensure and/or demonstrate that the Lien and
security interests granted by the Pledge Agreement continue to be perfected
under the UCC or otherwise after giving effect to the establishment of any
Incremental Term Advances or Incremental Term Commitments.

SECTION 2.18.      Mitigation
Obligations.  If any Lender requests
compensation under Section 2.11, or if Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.14, then such Lender
shall use reasonable efforts to designate a different lending office for
funding or booking its Advances hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.11 or 2.14,
as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  Borrower hereby agrees to pay
all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment to the extent requested within 180 days of such
designation or assignment pursuant to an invoice setting forth such costs and
expenses in reasonable detail.

ARTICLE
III

CONDITIONS
TO EFFECTIVENESS AND LENDING

SECTION 3.01.      Conditions
Precedent to Initial Borrowing.  The
obligation of each Lender to make an Advance on the Closing Date and the
obligations of each Issuing Bank to issue Letters of Credit hereunder shall be
subject to the occurrence and satisfaction or waiver of the following conditions
precedent (other than clause (m), which shall be a simultaneous condition):

(a)           Credit Agreement and
Loan Documents.  The Agent (or its
counsel) shall have received (i) from each party hereto either (A) a
counterpart of this Agreement signed on behalf of such party or
(B) written evidence satisfactory to the Agent (which may include
facsimile or .pdf transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement and (ii) fully
executed copies of the other Loan Documents to be entered into on the Closing
Date, including any Notes requested by a Lender pursuant to Section 2.16(a)
prior to the Closing Date.

(b)           The Lenders shall have
received:

(i)            a solvency certificate
duly executed and delivered by the chief financial or accounting officer of
Borrower authorized to sign such certificate, dated as of the Closing Date, substantially
in the form of Exhibit E hereto;

(ii)           favorable written
opinions (or reliance letters) of (A) Sidley Austin LLP, special counsel for
the Loan Parties, in a form reasonably acceptable to the Agent, (B) Crane H.
Kenney, General Counsel of the Loan Parties, in a form reasonably acceptable to
the Agent, (C) McDermott, Will & Emery LLP, counsel to the Company,
substantially in the form of Exhibit D-1 hereto and (D) Kirkpatrick
& Lockhart Preston Gates Ellis LLP, counsel to the trustee of the ESOP
Trust, substantially in the form of Exhibit D-2 hereto, in each case
dated the Closing Date and addressed to the Agent and Lenders;

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(iii)          copies of (A) the unaudited
consolidated balance sheets and related statements of income, stockholder’s
equity and cash flows of Borrower for the fiscal quarter ended April 1, 2007,
(B) a consolidated balance sheet of Tribune as of April 1, 2007 on a Pro
Forma Basis after giving effect to the First Step Transactions and (C) a
consolidated balance sheet of Tribune as of April 1, 2007 on a Pro Forma Basis
after giving effect to both the First Step Transactions and the Second Step
Transactions; and

(iv)          a certificate of each Loan Party,
dated the Closing Date and executed by its Secretary, Assistant Secretary or
director, which shall (A) certify the resolutions of its Board of
Directors, members or other body authorizing the execution, delivery and performance
of the Loan Documents to which it is a party, (B) identify by name and
title and bear the signatures of the other officers of such Loan Party
authorized to sign the Loan Documents to which it is a party, and
(C) contain appropriate attachments, including the certificate or articles
of incorporation or organization of each Loan Party (certified by the relevant
authority of the jurisdiction of organization of such Loan Party), and a true
and correct copy of its by-laws, memorandum and articles of incorporation
or operating, management, partnership or equivalent agreement to the extent
applicable and a good standing certificate for each Loan Party from its
jurisdiction of organization to the extent such concept exists in such jurisdiction.

(c)           Financial Projections.  The Lead Arrangers shall have received
(i) reasonably detailed consolidated financial projections on behalf of
Tribune for Tribune and its consolidated entities for the five fiscal year
period after the Closing Date on a Pro Forma Basis after giving effect to the
First Step Transactions and (ii) reasonably detailed consolidated
financial projections on behalf of Tribune for Tribune and its consolidated
entities for the five fiscal year period after the Closing Date on a Pro Forma
Basis after giving effect to both the First Step Transactions and the Second
Step Transactions.

(d)           Closing Date Material Adverse
Effect.  (i) Since December 31, 2006
through April 1, 2007, except as otherwise contemplated, disclosed or permitted
by the Acquisition Agreement, the Tribune Purchase Agreement, as defined in the
Acquisition Agreement, or the ESOP Purchase Agreement or the documents
ancillary thereto, there has not been any event, development or state of
circumstances that has had or would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect and (ii) since April 1, 2007,
there has not been any event, development or state of circumstances that has
had or would reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect.  Since April
1, 2007 through the Closing Date, there has not occurred and does not exist any
event that could reasonably be expected to have a material adverse effect on
(i) the rights and remedies of any Secured Party under any Loan Document or
(ii) the ability of Borrower or the other Loan Parties (taken as a whole) to
perform its obligations under any Loan Document.

(e)           Payoff.  The Refinancing shall have occurred and the
Lead Arrangers shall have received evidence thereof reasonably satisfactory to
the Lead Arrangers, including a “pay-off” letter or letters or other
documentation reasonably satisfactory to the Lead Arrangers.

(f)            Fees.  Borrower shall have paid all accrued fees and
expenses (including the reasonable fees and expenses of Cahill Gordon &
Reindel LLP) of the Lead Arrangers
in connection with this Agreement and the transactions contemplated hereby to
the extent that such fees and expenses shall have been invoiced at least two
Business Days prior to the Closing Date.

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(g)           Lien and Security Interest.  The Lenders shall have a valid lien on and
security interest in the Collateral, which lien shall be a first priority
perfected lien, subject only to Permitted Liens and Liens permitted under Section
5.02(a)(vi).  The Agent shall have
received each document (including UCC 1 Financing Statements) reasonably
requested by the Agent to be filed, registered and recorded in order to create
in favor of the Agent for the benefit of the Secured Parties, a perfected Lien
on the Collateral described thereon.  All
such action as shall be necessary to create an equal and ratable security
interest in the Collateral to secure the Existing Notes shall have been taken.

(h)           Acquisition.  The Acquisition Agreement shall have been
executed and delivered and no provision thereof shall have been waived,
amended, supplemented or otherwise modified and no action by Tribune prohibited
by the Acquisition Agreement shall have been consented to, in each case in a
manner material and adverse to the Lenders without the consent of the Lead Arrangers.

(i)            Tender Offer Participation.  Neither EGI-TRB, L.L.C. nor the ESOP shall
have participated in the Stock Repurchase.

(j)            ESOP.  The Lead Arrangers shall be reasonably
satisfied that there shall not have been any changes or waivers to the ESOP
Documentation (including the provisions of the ESOP relating to redemptions and
distributions) since April 1, 2007 that are material and adverse to Lenders.

(k)           Trustee Certificate.  The Lead Arrangers shall have received from
the GreatBanc Trust Company, trustee of the ESOP Trust, a trustee’s certificate
reasonably acceptable to the Lead Arrangers.

(l)            Opinion of Financial Advisor.  The Lead Arrangers shall have received a copy
of the opinion of Duff & Phelps, LLC, in form and substance acceptable to
the Lead Arrangers, which shall include an opinion that (i) the purchase
price paid by the Trustee for the Tribune shares was not in excess of fair
market value for the purposes of Section 3(18) of ERISA; (ii) the
interest rate on the ESOP Loan is not in excess of a reasonable rate of
interest; (iii) the terms of the ESOP Loan are at least as favorable to
the ESOP as would be the terms of a comparable extension of credit resulting
from arm’s length negotiations between independent parties; and (iv) the
terms and conditions of the transactions which have or are to occur pursuant to
and in connection with the ESOP Purchase Agreement and the Acquisition
Agreement are fair and reasonable to the ESOP from a financial point of view.

(m)          Related Transactions.  The Tribune Finance LLC Transaction and the
Broadcasting Holdco Transaction each shall be consummated substantially and
simultaneously with the making of the Advances on the Closing Date.

SECTION 3.02.      Conditions
Precedent to Each Borrowing and Issuance. 
The obligation of each Lender to make an Advance (other than an
Incremental Term Advance, an Advance made by any Issuing Bank or any Lender
pursuant to Section 2.03(c) and other than any Conversion) on the occasion
of each Borrowing (including the initial Borrowing) and the obligation of each
Issuing Bank to issue a Letter of Credit shall each be subject to the
conditions precedent that the Closing Date shall have occurred and on the date
of such Borrowing or such Issuance the following statements shall be true (and
each of the giving of the applicable Notice of Borrowing, Notice of Issuance
and the acceptance by Borrower of the proceeds of such Borrowing or Issuance
shall constitute a representation and warranty by Borrower that on the date of
such Borrowing or such Issuance such statements are true):

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(i)      the representations and warranties
contained in Section 4.01 (other than, on the Closing Date, the last
sentence of Section 4.01(e)(i)) are correct in all material respects (except to
the extent such representation and warranty is already qualified by materiality
or Material Adverse Effect, in which case such representation or warranty shall
be correct in all respects) on and as of such date, before and after giving
effect to such Borrowing or such Issuance and to the application of the
proceeds therefrom, as though made on and as of such date, except to the extent
any such representation or warranty, by its terms, refers to a different
specific date other than the date of such Borrowing or issuance or renewal or
increase, in which case as of such specific date, and

(ii)           no event has occurred and is
continuing, or would result from such Borrowing or such Issuance or from the
application of the proceeds therefrom, that would result in a Default.

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES

SECTION 4.01.      Representations
and Warranties of Borrower.  Borrower
represents and warrants as follows:

(a)           Each Loan Party and each Subsidiary
is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, is duly qualified to do business and is in good
standing as a foreign entity in each jurisdiction where the nature of its
business requires such qualification, and has full power and authority and,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, holds all requisite
governmental licenses (including, without limitation, all licenses such Loan
Party or such Subsidiary is required to hold or maintain which are issued by
the FCC), permits and other approvals required for (i) the ownership and
operation of its businesses and assets in the ordinary course and (ii) the
due execution, delivery and performance by such Loan Party of the Loan
Documents to which it is a party.

(b)           The execution, delivery and
performance by each Loan Party of Loan Documents to which it is a party, and
the consummation of the First Step Transactions and, if and when consummated,
the Second Step Transactions, are or will be within such corporate or other
powers, have been or will be duly authorized by all necessary action, and (i)
do not contravene such Loan Party’s Organizational Documents, (ii) do not
contravene any law applicable to such Loan Party,  except as could reasonably be expected to
have a Material Adverse Effect, (iii) will not violate or result in a default
or require any consent or approval under any agreement or instrument evidencing
Material Debt binding upon any Loan Party or any Subsidiary or its property, or
give rise to a right thereunder to require any payment to be made by such Loan
Party or such Subsidiary, except for such violations, defaults, requirements,
or the creation of such rights that could not reasonably be expected to result
in a Material Adverse Effect, and (iv) will not result in the creation or
imposition of any Lien on any property of any Loan Party or any Subsidiary,
except Liens created pursuant to the Loan Documents, Permitted Liens and Liens
permitted by Section 5.02(a)(vi).

(c)           Except (i) as have been obtained by
the Closing Date, (ii) for filings necessary to perfect Liens created by the
Loan Documents, (iii) for such authorizations, approvals or other actions as
may be required by the FCC in connection with the disposal of the membership
interest of Tribune Broadcasting Holdco and (iv) as could not reasonably be
expected to result in a Material

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Adverse
Effect, 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 is required for the due execution, delivery and performance by each Loan
Party of the Loan Documents to which it is a party.

(d)           Each of the Loan Documents to be delivered
by a Loan Party when delivered hereunder will have been, duly executed and
delivered by such Loan Party.  This
Agreement is, and each of Loan Documents to which each Loan Party is a party
when delivered hereunder will be, the legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding
in equity or at law.

(e)           (i) The audited Consolidated
balance sheet of Borrower and its Subsidiaries as of December 31, 2006 and the
related audited Consolidated statements of income, shareholders’ equity and
cash flows of Borrower and its Subsidiaries for the fiscal year ended December
31, 2006, accompanied by an opinion of PricewaterhouseCoopers LLP, independent
public accountants, copies of which have been made available to each Lender,
fairly present in all material respects the Consolidated financial condition of
Borrower and its Subsidiaries as at such date and the Consolidated results of
the operations of Borrower and its Subsidiaries for the period ended on such
date, all in accordance with GAAP as in effect on the date of preparation
thereof.  Since December 31, 2006 through
April 1, 2007, except as otherwise contemplated, disclosed or permitted by the
Acquisition Agreement, the Tribune Purchase Agreement, as defined in the
Acquisition Agreement, or the ESOP Purchase Agreement, as defined in the
Acquisition Agreement or the documents ancillary thereto, there has not been
any event, development or state of circumstances that has had or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect and since April 1, 2007, there has not been any event,
development or state of circumstances that has had or would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

(ii) The unaudited Consolidated balance sheet of
Borrower and its Subsidiaries as of April 1, 2007 and the related Consolidated
statements of income, shareholders’ equity and cash flows of Borrower and its
Subsidiaries for the fiscal quarter ended April 1, 2007, copies of which have
been furnished to each Lender, fairly present in all material respects the
Consolidated financial condition of Borrower and its Subsidiaries as at such
date and the Consolidated results of the operations of Borrower and its
Subsidiaries for the period ended on such date, all in accordance with GAAP as
in effect on the date of preparation thereof.

(iii)          The unaudited pro forma condensed
Consolidated balance sheet of Borrower and its Subsidiaries as of April 1,
2007, and the related unaudited pro forma combined statements of operations of
Borrower and its Subsidiaries for the fiscal quarter then ended, copies of which
have been furnished to each Lender, fairly present in all material respects the
Consolidated pro forma financial condition of Borrower and its Subsidiaries as
at such date and the Consolidated pro forma results of operations of Borrower
and its Subsidiaries for the period ended on such date, after giving effect (a)
to the First Step Transactions and (b) to both the First Step Transactions and
the Second Step Transactions, all in accordance with GAAP as in effect on the
date of preparation thereof.  Such pro
forma financial statements have been prepared in good faith by Borrower, based
on the assumptions believed by Borrower to be reasonable at the time such pro
forma financial statements were prepared and accurately reflect the adjustments
described therein.

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(f)            Except as set forth in Schedule 4.01(f)
or in the SEC Reports, there is no pending or to the knowledge of Borrower,
threatened action, suit, investigation, litigation, proceeding or labor
controversy, including, without limitation, any Environmental Action, affecting
Borrower, any of its Subsidiaries or any PDT Entity before any court,
governmental agency or arbitrator that (i) could reasonably be expected to have
a Material Adverse Effect or (ii) purports to affect the legality, validity or
enforceability of the Loan Documents or the consummation of the First Step
Transactions and, solely to the extent the Acquisition is consummated, the
Second Step Transactions, and no conditions exist at, on or under any property
now or previously owned or leased by Borrower which, with the passage of time,
or the giving of notice or both, would give rise to material liability under
any Environmental Laws and that could reasonably be expected to have a Material
Adverse Effect.

(g)           Borrower is not engaged in the
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the Board of Governors of
the Federal Reserve System), and no proceeds of any Advance or any Letter of
Credit will be used for any purpose that violates, or which is inconsistent
with, the provisions of Regulation T, U or X of the Board of Governors of the
Federal Reserve of the United States, as in effect from time to time.  The pledge of the Collateral pursuant to the
Pledge Agreement does not violate such regulations.

(h)           Each of Borrower and each of its
Subsidiaries has good fee simple title to, or valid leasehold interests in, or
easements or other limited property interests in, all its real properties and
has good and marketable title to its personal property and assets, in each
case, except for defects in title that do not materially interfere with its
ability to conduct its business as currently conducted or to utilize such
properties and assets for their intended purposes and except where the failure
to have such title would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. 
On the Closing Date all such properties and assets are free and clear of
Liens, other than Liens permitted by Section 5.02(a)(i), (iii), (v),
(vi) and (x).

(i)            Borrower or its Subsidiaries (a)
owns, or is licensed to use the trademarks, tradenames and copyrights and (b)
owns, or is licensed to use or reasonably believes it has the right to use the
technology, know-how and processes, in each case, necessary for the conduct of
its business as currently conducted except for those the failure to own or
license which could not reasonably be expected to have a Material Adverse
Effect (the “Intellectual Property”). 
No claim has been asserted and is pending by any Person challenging any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does such Borrower know of any valid basis for any
such claim, except, in either case, for such claims that in the aggregate could
not reasonably be expected to have a Material Adverse Effect.  The use of such Intellectual Property by
Borrower and its Subsidiaries does not infringe on the intellectual property
rights of any Person, except for such claims and infringements that, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

(j)            No Loan Party is an “investment
company” within the meaning of the Investment Company Act of 1940, as amended
from time to time.

(k)           The Information Memorandum and all
other information, exhibits or reports (including the SEC Reports) (other than
financial projections (such projections being prepared in good faith and based
upon assumptions Borrower believes to have been reasonable at the time made)
and information of a general economic or industry specific nature) furnished by
or on behalf of Borrower or otherwise made available to the Agent or any Lender
in connection with the negotiation and syndication of this Agreement or pursuant
to the terms of this Agreement taken as

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a whole as of
the date furnished or otherwise made available to the Agent or any Lender, do
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made therein not materially misleading in
the light of the circumstances under which such statements were made.

(l)            (i) 
As of the Closing Date, immediately after giving effect to the First
Step Transactions, Borrower is Solvent.

(ii)  Upon and after consummation of the Second
Step Transactions and as of the Second Step Closing Date, immediately after
giving effect to the Second Step Transactions, Borrower is Solvent.

(m)          Borrower, each of its Subsidiaries and
each PDT Entity have filed, have caused to be filed or have been included in
all material tax returns and reports required by law to have been filed by it
and has paid all Taxes thereby shown to be due and owing, except any such
Taxes which are not yet delinquent or are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance
with GAAP shall have been set aside on its books.

(n)           Except as set forth in the SEC
Reports, Borrower, each of its Subsidiaries and each PDT Entity are in
compliance with all applicable laws, rules, regulations and orders that are
material to the conduct of the business of Borrower and its Subsidiaries taken
as a whole, including, without limitation, compliance with ERISA, Environmental
Laws and the Patriot Act, except for any failure to comply which could not
reasonably be expected to have a Material Adverse Effect.

(o)           Borrower, each of its Subsidiaries
and each PDT Entity maintain insurance with responsible and reputable insurance
companies or associations (including affiliated companies) in such amounts and
covering such risks as is customarily carried by companies engaged in similar
businesses and owning similar properties as Borrower and its Subsidiaries; provided,
however, that Borrower and its Subsidiaries may self-insure to the
extent it determines in its good faith reasonable business judgment that such
insurance is consistent with prudent business practices.

(p)           As of the Closing Date, Schedule
4.01(p) sets forth (a) a correct and complete list of the name and relationship
to Borrower of each and all of Borrower’s Subsidiaries, (b) a true and complete
listing of each class of Borrower’s authorized Equity Interests, of which all
of such issued shares are validly issued, outstanding, fully paid and
non-assessable, and (c) the type of entity of Borrower and each of its
Subsidiaries.  On the Closing Date, all
of the issued and outstanding Equity Interests of the Subsidiaries owned by any
Loan Party have been (to the extent such concepts are relevant with respect to
such ownership interests) duly authorized and issued and are fully paid and
non-assessable free and clear of all Liens (other than Liens created under the
Loan Documents, Permitted Liens and Liens permitted by Section 5.02(a)(vi)).

(q)           Except as, in the aggregate, would
not reasonably be expected to have a Material Adverse Effect, there are no
strikes, lockouts or slowdowns against any Loan Party currently occurring or,
to the knowledge of Borrower, threatened. 
Except as, in the aggregate, would not reasonably be expected to have a
Material Adverse Effect, the consummation of the Transactions will not give
rise to a right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which Borrower or any of its
Subsidiaries (or any predecessor) is a party or by which Borrower or any of its
Subsidiaries (or any predecessor) is bound.

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(r)            The provisions of the Pledge
Agreement create legal and valid Liens on all the Collateral in favor of the
Agent, for the benefit of the Secured Parties; and upon the proper filing of
UCC financing statements required pursuant to Section 3.01(g), such
Liens constitute perfected and continuing (upon the periodic filing of UCC
continuation statements) Liens on the Collateral, securing the Secured
Obligations, and having priority over all other Liens on the Collateral except
in the case of Permitted Liens and Liens permitted by Section 5.02(a)(vi).

(s)           [Intentionally Omitted.]

(t)            (i) No ERISA Event has occurred
or is reasonably expected to occur that, when taken together with all other
such ERISA Events for which liability is reasonably expected to occur, would
reasonably be expected to have a Material Adverse Effect.  Except as would not reasonably be expected to
have a Material Adverse Effect, each of the Loan Parties and their Subsidiaries
are in compliance with the applicable provisions of ERISA and the Code with
respect to each Employee Benefit Plan.

(ii)           Neither
any Loan Party nor any Subsidiary, PDT Entity, trustee, administrator, or
fiduciary of any of Employee Benefit Plan, has (i) engaged in a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code for which
there is no exemption under Section 408 of ERISA or Section 4975 of the Code,
respectively, which could directly or indirectly subject any Loan Party or any
Subsidiary to any liability for a tax or penalty imposed by Section 4975 of the
Code or Section 502(i) of ERISA, or (ii) committed a breach of its fiduciary
duties (as defined in Section 404 of ERISA) which could directly or indirectly
subject any Loan Party nor any Subsidiary to any liability under Section 502 of
ERISA except for a liability under (i) or (ii) which would not reasonably be
expected to have a Material Adverse Effect.

(iii)          [Intentionally Omitted.]

(iv)          The purchase of the Capital Stock by
the ESOP Trust from Borrower, the execution and performance of this Agreement,
the Loan Documents, the Acquisition Agreement, and the ESOP Documentation, and
the consummation of the transactions contemplated by this Agreement and by the
Loan Documents, the Acquisition Agreement, and the ESOP Documentation did not
and will not (i) involve a prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code for which there is no exemption under Section 408 of
ERISA or Section 4975 of the Code, respectively; (ii) constitute a violation of
the fiduciary responsibility standards imposed by Section 404 of ERISA; or
(iii) adversely affect the qualified status of the ESOP under Sections 401(a)
or 4975(e)(7) of the Code.

(v)           (A) The ESOP is an “employee
stock ownership plan” within the meaning of Section 4975(e)(7) of the Code
and the ESOP is qualified under Section 401(a) of the Code; (B) the
ESOP has been duly established in accordance with and under applicable law and
the ESOP’s trust is a tax-exempt trust under Section 501(a) of the Code;
(C) the terms of the Acquisition Agreement, and the ESOP Documentation comply
with the applicable provisions of Title I of ERISA; (D) the shares of
Capital Stock acquired by the ESOP Trust are “employer securities,” within the
meaning of Section 409(l) of the Code; (E) the purchase price paid by
the ESOP Trust to Borrower for the Capital Stock under the ESOP Purchase
Agreement as of April 1, 2007 did not exceed “adequate consideration,” as
defined in Section 3(18) of ERISA; and (F) all of the information
provided by, or on behalf of, Borrower to the independent appraiser for the
ESOP Trust, in connection with the transactions contemplated by the Acquisition
Agreement and the ESOP Documentation, were true and accurate in all material
respects and there was no failure by,

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or on behalf of, Borrower
to disclose any material information to the independent appraiser for the ESOP
Trust.

ARTICLE V

COVENANTS
OF BORROWER

SECTION 5.01.      Affirmative
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit is outstanding (or has been cash
collateralized or secured by a back-up letter of credit), any Lender shall have
any Commitment hereunder or any other Obligation shall remain outstanding
(other than contingent obligations for unassessed claims), Borrower will,
unless the Required Lenders shall otherwise consent in writing:

(a)           Compliance with Laws, Etc.  Comply, and cause each of its Subsidiaries
and any PDT Entities to comply, in all material respects, with all applicable
laws, rules, regulations and orders that are material to the conduct of the
business of Borrower and its Subsidiaries taken as a whole, such compliance to
include, without limitation, compliance with ERISA, Environmental Laws and the
Patriot Act except to the extent failure to comply could not reasonably be
expected to have a Material Adverse Effect.

(b)           Payment of Taxes, Etc.  Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i)
all material taxes, assessments and governmental charges or levies imposed upon
it or upon its property and (ii) all lawful claims that, if unpaid, might by
law become a Lien upon any property of Borrower and its Subsidiaries that would
be material to them taken as a whole; provided, however, that
neither Borrower nor any of its Subsidiaries shall be required to pay or
discharge any such tax, assessment, charge or claim that is being contested in
good faith and by proper proceedings and as to which appropriate reserves are
being maintained.

(c)           Maintenance of Insurance.  Maintain, and cause each of its Subsidiaries
and any PDT Entities to maintain, insurance with responsible and reputable
insurance companies or associations (including affiliated companies) in such
amounts and covering such risks, and with such deductibles or, subject to the
proviso set forth below, self-insurance retentions, as is usually carried by
companies engaged in similar businesses and owning similar properties in the
same general areas in which Borrower or such Subsidiary operates; provided,
however, that Borrower and its Subsidiaries may self-insure to the
extent it determines in its good faith reasonable business judgment that such
insurance is consistent with prudent business practices.

(d)           Conduct of Business; Preservation
of Corporate Existence, Etc. 
Continue to engage in business of the same general type as now conducted
by it and preserve and maintain, and cause each of its Subsidiaries (other than
Immaterial Subsidiaries) to preserve and maintain, (i) its existence and
(ii) its rights (charter and statutory) and franchises to the extent
material to the conduct of the business of Borrower and its Subsidiaries taken
as a whole; provided, however, that Borrower and its Subsidiaries
may consummate any transaction permitted under Section 5.02(b) and provided
further that neither Borrower nor any of its Subsidiaries shall be
required to preserve any right or franchise if Borrower or such Subsidiary
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of Borrower or such Subsidiary, as the case may be, and
that the loss thereof is not disadvantageous in any material respect to Borrower,
such Subsidiary or the Lenders.

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(e)           Visitation Rights; Annual Meetings.

(i)              At any reasonable time and from
time to time upon reasonable notice, permit the Agent or any of the Lenders
(subject to the provisos below) or any agents or representatives thereof, to
examine and make copies of and abstracts from the records and books of account
of, and visit the properties of, Borrower and any of its Subsidiaries, and to
discuss the affairs, finances and accounts of Borrower and any of its
Subsidiaries with any of their officers and with their independent certified
public accountants; provided that representatives of Borrower shall have
the opportunity to be present at any meeting with its independent accountants;
and provided, further, that unless (x) an Event of Default has
occurred and is continuing or (y) the Agent reasonably believes an event has
occurred that has a Material Adverse Effect, (i) the Lenders shall coordinate
the timing of their inspections with the Agent and provide reasonable notice
thereof, (ii) such inspections shall be limited to once during any calendar
year for each Lender and (iii) neither Borrower nor any of its Subsidiaries
shall be required to pay or reimburse any costs and expenses incurred by any
Lender (other than the Agent) in connection with the exercise of such rights.

(ii)            Within 150 days after the end of
each fiscal year of Borrower, at the request of the Agent or Required Lenders,
hold a meeting (at a mutually agreeable location, venue and time or, at the
option of the Agent, by conference call, the costs of such venue or call to be
paid by Borrower) with all Lenders who choose to attend such meeting, at which
meeting shall be reviewed the financial results of the previous fiscal year and
the financial condition of the Loan Parties and the budgets presented for the
current fiscal year of the Loan Parties.

(f)            Keeping of Books.  (i) Keep, and cause each of its
Subsidiaries to keep, proper books of record and account, in which true,
complete and correct entries shall be made of all material financial transactions
and the assets and business of Borrower and each such Subsidiary and
(ii) maintain, and cause each of its Subsidiaries to maintain, a system of
accounting established and maintained in conformity, in all material respects,
with GAAP.

(g)           Maintenance of Properties, Etc.  Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, all of its properties that are used or
useful in the conduct of its business in good working order and condition,
ordinary wear and tear excepted, except to the extent that the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

(h)           Transactions with Affiliates.  Conduct, and cause each of its Subsidiaries
to conduct, all transactions otherwise permitted under this Agreement with any
of their Affiliates on terms that are fair and reasonable and no less favorable
to Borrower or such Subsidiary than it would obtain in a comparable arm’s-length
transaction with a Person not an Affiliate; provided that,
notwithstanding the foregoing, the following shall be permitted under this Section
5.01(h):  (i) any Affiliate who is an
individual may serve as director, officer, employee or consultant of Borrower
or any of its Subsidiaries and may receive reasonable compensation and
indemnification and expense reimbursement (including pursuant to plans or
policies approved by the Board of Directors) for his or her services in such
capacity, (ii) Borrower or any of its Subsidiaries may enter into
nonexclusive licenses of patents, copyrights, trademarks, trade secrets and
other intellectual property with Borrower or any of its Subsidiaries, (iii) any
transaction between or among Borrower and its Subsidiaries that is otherwise
permitted under Section 5.02, (iv) payments permitted by Section 5.02(g),
(v) Investments permitted by Sections 5.02(h)(ii), (v), (vi), (ix),
(xi) and (xii), (vi) transactions with customers, clients,
suppliers, joint venture partners or purchasers or sellers of goods and
services, in each case in the ordinary course of business and otherwise not

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prohibited by
the Loan Documents, (vii) the acquisition of the TMCT Real Property pursuant to
the terms and conditions of that certain Amended and Restated Lease Agreement,
dated September 22, 2006, by and between Borrower and TMCT, LLC, (viii) the
existence of, and the performance by any Loan Party of its obligations under
the terms of, any limited liability company, limited partnership or other
Organizational Document or securityholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which
it is a party on the Closing Date and which has been disclosed to the Lenders
as in effect on the Closing Date, and similar agreements that it may enter into
thereafter; provided, however, that the existence of, or the
performance by any Loan Party of obligations under, any amendment to any such
existing agreement or any such similar agreement entered into after the Closing
Date shall only be permitted by this Section 5.01(h)(viii) to the
extent not materially more adverse to the interest of the Lenders, when taken
as a whole, than any of such documents and agreements as in effect on the
Closing Date, (ix) sales of common stock of Borrower to Affiliates of Borrower
not otherwise prohibited by the Loan Documents and the granting of registration
and other customary rights in connection therewith and the exercise by any
Person of warrants issued in connection with the Transactions, (x) any
transaction with an Affiliate where the only consideration paid by any Loan
Party is common stock of Borrower, (xi) the First Step Transactions (including,
without limitation, Borrower’s reimbursement of certain of EGI-TRB, L.L.C.
expenses); (xii) the Second Step Transactions (including, without limitation,
Borrower’s reimbursement of certain of EGI-TRB, L.L.C. expenses); provided
that the Acquisition Conditions shall have been satisfied or waived, (xiii) in
connection with the recapitalization of Eagle New Media Investments, LLC and
Eagle Publishing Investments, LLC (collectively, the “Eagle Entities”),
Borrower and the Eagle Entities may enter into the Exchange Agreement (as
defined in the Acquisition Agreement) and consummate the transactions
contemplated thereby prior to the closing of the transactions contemplated by
the Acquisition Agreement, (xiv) Borrower’s exercise of its rights and/or
fulfillment of its contractual obligations under (A) that certain Letter
Agreement, dated September 21, 2006, among Chandler Trust No. 1, Chandler Trust
No. 2, Borrower, Candle Holdings Corporation and Fortify Holdings Corporation
(including the put/call right provisions contemplated thereunder), as such
rights exist with respect to TMCT, LLC and (B) that certain Letter Agreement,
dated September 21, 2006, among Chandler Trust No. 1, Chandler Trust No. 2,
Borrower, Fortification Holdings Corporation, Wick Holdings Corporation, Eagle
New Media Investments, LLC and Eagle Publishing Investments, LLC (including the
put/call right provisions contemplated thereunder), as such rights exist with
respect to TMCT II, LLC, (xv) sales of accounts receivable, payment intangibles
and related assets or participations therein, in connection with any
Receivables Facility and Standard Receivables Facility Undertakings, (xvi) the
transactions contemplated by the Zell Note, the Zell Sub Note or the Zell
Investment Agreement, (xvii) reimbursement by Borrower of the reasonable
expenses of employees of Equity Group Investments, L.L.C. in connection with
its or its affiliates’ investment in Borrower, (xviii) the ESOP Note and ESOP
Related Distributions and (xix) any Permitted Disposition Transactions.

(i)            Reporting Requirements.  Furnish to the Agent:

(i)      as soon as available and in any event
within 45 days after the end of each of the first three quarters of each fiscal
year of Borrower, unaudited Consolidated balance sheets of Borrower and its
Subsidiaries as of the end of such quarter and unaudited Consolidated
statements of income, shareholders’ equity and cash flows of Borrower and its
Subsidiaries for the period commencing at the end of the previous fiscal year
and ending with the end of such quarter, duly certified by the chief financial
officer, the chief accounting officer or the treasurer of Borrower as having
been prepared in accordance with GAAP (subject to year-end audit adjustments);

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(ii)     as soon as available and in any event
within 90 days after the end of each fiscal year of Borrower, a copy of the
annual audit report for such fiscal year for Borrower and its Subsidiaries,
containing the Consolidated balance sheet of Borrower and its Subsidiaries as
of the end of such fiscal year and Consolidated statements of income,
shareholders’ equity and cash flows of Borrower and its Subsidiaries for such
fiscal year, in each case accompanied by an opinion as to such audit report by
PricewaterhouseCoopers LLP or other independent public accountants of
nationally recognized standing, certified by such accountants without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit, provided that, if Borrower
switches from one independent public accounting firm to another and if such
switch has occurred during any fiscal period being audited by such new
accounting firm, the audit report of any such new accounting firm may contain a
qualification or exception as to the scope of such consolidated financial
statements that relates to the period of such fiscal period prior to its retention;

(iii)    concurrently with the delivery of
Consolidated financial statements under clause (i)(i) or (i)(ii) above, a
certificate of the chief financial officer, the chief accounting officer or the
treasurer of Borrower, substantially in the form of Exhibit H (A)
certifying that no Default or Event of Default has occurred or, if a Default or
Event of Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (B) setting forth in
reasonable detail the calculations necessary to demonstrate compliance with Section 5.02(i)
at the end of such fiscal year or quarter, as the case may be, and (C) setting
forth, in the case of any such compliance certificate delivered concurrently
with the annual financial statements delivered under clause (i)(ii) above
(beginning with the fiscal year ending 2008), Borrower’s calculation of Excess
Cash Flow for such fiscal year;

(iv)    except to the extent in duplication of the
delivery requirements of clause (iii) above, promptly after the chief executive
officer, the chief financial officer, the chief accounting officer, the
treasurer, the controller or the general counsel of the Company has knowledge
of (A) the occurrence of any Default or Event of Default or (B) a Material
Adverse Effect, in each case, a statement of the chief financial officer, the
chief accounting officer or the treasurer of Borrower setting forth details of
such Default and the action that Borrower has taken and proposes to take with
respect thereto;

(v)     [intentionally omitted];

(vi)    promptly after the commencement thereof,
notice of all actions and proceedings before any court, governmental agency or
arbitrator affecting Borrower or any of its Subsidiaries that, individually or
taken as a whole, (i) could reasonably be expected to have a Material Adverse
Effect or (ii) purport to affect the legality, validity or enforceability of
any Loan Document or the consummation of any of the Transactions and could
reasonably be expected to have a reasonable likelihood of success;

(vii)   such other approvals or documents as the
Agent may reasonably request; and

(viii)  such other information respecting the
business, financial condition or operations of Borrower and its Subsidiaries
taken as a whole as any Lender through the Agent may from time to time
reasonably request.

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Financial statements required to be delivered by
Borrower pursuant to subclauses (i) and (ii) of this Section
5.01(i) shall be deemed to have been delivered on the date on which Borrower
posts reports containing such financial statements on its website on the
Internet at www.sec.gov or at such other website
identified by Borrower in a notice to the Agent and that is accessible by the
Lenders without charge; provided that Borrower shall deliver paper
copies of such information to any Lender promptly upon request of such Lender
through the Agent and provided  further that the Lenders shall be
deemed to have received the information specified in subclauses (i) through (vi)
of this Section 5.01(i) on the date (x) the information regarding the
website where such financial information can be found is posted at the website
of the Agent identified from time to time by the Agent to the Lenders and
Borrower and (y) such posting is promptly notified to the Lenders (it being
understood that Borrower shall have satisfied the timing obligations imposed by
those clauses as of the date such information is delivered to the Agent).

(j)            Use of Proceeds.  The proceeds of the Advances shall be
available (and Borrower agrees that it shall use such proceeds) as follows:

(i)            Tranche X Advances and Initial
Tranche B Advances will be available solely to finance a portion of the First
Step Transactions and in each case to pay fees and expenses related thereto;

(ii)           Delayed Draw Tranche B Advances will
be available solely to repay outstanding obligations with respect to each
series of Medium Term Notes upon the maturity thereof; and

(iii)          Revolving Credit Advances will be
available solely for working capital and general corporate purposes of
Borrower, including, without limitation, acquisitions.

(k)           Interest Rate Protection.  No later than the 60th day after the Closing
Date, Borrower shall enter into, and for a minimum of two years thereafter
maintain, Hedge Agreements with terms and conditions reasonably acceptable to
the Agent that result in at least 35% of the aggregate principal amount of
total Consolidated Debt for Borrowed Money being effectively subject to a fixed
or maximum interest rate reasonably acceptable to the Agent.

(l)            Additional Guarantors.  With respect to any Person that is or becomes
a wholly owned Domestic Subsidiary of Borrower (to the extent such Subsidiary
(i) is not an Immaterial Subsidiary after the Closing Date, a Subsidiary of a
Foreign Subsidiary of Borrower or a Receivables Subsidiary or (ii) is not merged
or consolidated with and into Borrower or any Guarantor in compliance with
Section 5.02(b) on or prior to the 30th day after such Subsidiary
shall become a Subsidiary), promptly (and in any event within 30 days
after such Person becomes a wholly owned Domestic Subsidiary) cause such new
wholly owned Domestic Subsidiary to execute a joinder agreement or such
comparable documentation to become a Guarantor, substantially in the form
annexed to the Guarantee.  Notwithstanding
anything to the contrary, no PDT Entity shall be required to become a Guarantor
hereunder.

(m)          Tribune Finance LLC Transactions.  Borrower and the Subsidiaries shall consummate
the Tribune Finance LLC Transactions.

(n)           S-Corporation Election.  Subsequent to the consummation of the Acquisition,
either (i) (x) if the Acquisition is consummated on or before the last date
permitted by law to make such an election to be effective on January 1, 2008,
Borrower shall make the S Corp Election on or before such last date, (y) if the
Acquisition is consummated after the last date permitted by law

 70
 

to make an
election to be effective on January 1, 2008, Borrower shall make the S Corp
Election on or before the last date permitted by law to make such an election
to be effective on January 1, 2009, and (z) if Borrower fails to make the S
Corp Election pursuant to clause (x) or (y) and instead complies
with clause (ii) below, then Borrower shall have an ongoing obligation to make
the S Corp Election on or before the last date permitted by law to make such an
election to be effective for each succeeding year until the S Corp Election is
successfully made and in each case, once the S Corp Election has been made,
Borrower shall maintain the S Corp Election or (ii) if Borrower has failed to
make the S Corp Election (or once made, maintain the S Corp Election) by the
last date permitted by law to make such an election to be effective for any
year beginning with 2009, then within 10 days of such last date, any Person or
Persons (including under the Zell Investment Agreement) shall make an
Investment in Borrower in the form of Junior Capital in an amount of at least
$100.0 million less the Junior Capital Reduction Amount; provided that
if Borrower has taken all steps necessary to make the S Corp Election but is unable
to make the S Corp Election or is unable to keep the S Corp Election effective,
in either case as a result of governmental, regulatory or administrative
challenge or change in law, rule or regulation, for so long as Borrower is
diligently contesting in good faith by appropriate proceedings such inability,
Borrower shall be deemed to have complied with clause (i) above; provided
further that if upon completion of any such contestation, the S Corp
Election has not been made or re-applied, Borrower shall then be deemed to have
failed to make the S Corp Election for all applicable years and within 10 days
of the completion of such contest, any Person or Persons shall make an Investment
in Borrower in the form of Junior Capital in an amount (i) for calendar year
2008 of at least the Zell Investment Amount, if such year is an applicable year
and (ii) of at least $100.0 million for each other applicable year less the
Junior Capital Reduction Amount.  The Net
Cash Proceeds from any such Investment shall be applied in accordance with Section 2.10(b).

(o)           ERISA.

(i)           To the extent permitted by law,
promptly following delivery or receipt by Borrower, as applicable, Borrower
shall deliver to the Agent copies of any financial statements, annual valuation
updates, annual repurchase liability studies, or other material notices,
reports and documents to be delivered by Borrower to the ESOP or any trustee
under the ESOP or to be delivered by the ESOP or any trustee under the ESOP to
Borrower pursuant to the terms of the ESOP.

(ii)          Borrower shall (i) apply for a
favorable determination letter from the Internal Revenue Service that the ESOP
is tax-qualified and tax-exempt under Sections 401(a) and 501(a), respectively,
of the Code and that the ESOP is an “employee stock ownership plan” within the
meaning of Section 4975(e)(7) of the Code; (ii) use its best efforts to obtain
a favorable determination letter from the Internal Revenue Service that the
ESOP is tax-qualified and tax-exempt under Sections 401(a) and 501(a),
respectively, of the Code and that the ESOP is an “employee stock ownership
plan” within the meaning of Section 4975(e)(7) of the Code; (iii) take all
actions reasonably necessary to preserve the existence of the ESOP and to
maintain its tax-qualified status under Sections 401(a) and 501(a),
respectively, of the Code and its status as an employee stock ownership plan;
and (iv) administer the ESOP in compliance in all material respects with the
terms of the ESOP and the provisions of the Code and ERISA, as applicable to
the ESOP, and make any remedial amendments required by the Internal Revenue
Service within the time period allowed for the amendments.

(iii)         [Intentionally
omitted].

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(iv)         Promptly upon the occurrence of any
ERISA Event that, alone or together with any other ERISA Events that have
occurred, could reasonably be expected to result in material liability to a
Loan Party or a Subsidiary, Borrower shall deliver to the Agent a written
notice specifying the nature thereof, what action the Loan Party or its Subsidiaries
have taken, are taking or propose to take with respect thereto, and, when
known, any action taken or threatened by the Internal Revenue Service,
Department of Labor, PBGC or Multiemployer Plan sponsor with respect thereto.

(v)          Upon request by the Lead Arrangers,
deliver to the Agent copies of:  (i) each
Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
filed by any Loan Party or its Subsidiaries with the Internal Revenue Service with
respect to each Plan; (ii) the most recent actuarial valuation report for
each Plan; (iii) all written notices received by any Loan Party from a
Multiemployer Plan sponsor or any governmental agency concerning an ERISA
Event; and (iv) such other documents or governmental reports or filings
relating to any Employee Benefit Plan as the Lead Arrangers shall reasonably
request.

SECTION 5.02.      Negative
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit is outstanding (or has been cash
collateralized or secured by a back-up letter of credit), any Lender shall have
any Commitment hereunder or any other Obligation shall remain outstanding
(other than contingent obligations for unasserted claims) unless the Required
Lenders shall otherwise consent in writing, Borrower will not and will not
cause or permit any Subsidiaries to:

(a)           Liens, Etc.  Create, permit or suffer to exist any Lien on
or with respect to any of its properties, whether now owned or hereafter
acquired, other than:

(i)            Permitted Liens;

(ii)           Liens securing Purchase Money
Obligations incurred pursuant to Section 5.02(c)(v) upon or in any
real property, equipment or any fixed or capital assets acquired or held by
Borrower or any Subsidiary in the ordinary course of business to secure the
purchase price of such property, equipment or assets or to secure Debt incurred
solely for the purpose of financing the acquisition, construction or
improvement of such property, equipment or assets, in each case created within
180 days of any such acquisition or the completion of such construction or
improvement, or Liens existing on such property, equipment or assets at the
time of its acquisition (other than any such Liens created in contemplation of
such acquisition that were not incurred to finance the acquisition of such
property), or Liens securing Capital Lease Obligations incurred pursuant to Section
5.02(c)(v) or extensions, renewals or replacements of any of the foregoing
for the same or a lesser amount, provided, however, that no such
Lien shall extend to or cover any properties other than the property, equipment
or assets being acquired constructed or improved, and no such extension,
renewal or replacement shall extend to or cover any properties not theretofore
subject to the Lien being extended, renewed or replaced;

(iii)          the Liens existing on the Closing
Date, except for (x) Liens exceeding $25,000,000 individually and not described
on Schedule 5.02(a) hereto and (y) other Liens in an aggregate amount
exceeding $50,000,000 and not described on Schedule 5.02(a) hereto;

(iv)          Liens on (x) property of a Person
existing at the time such Person is merged into or consolidated with Borrower
or any Subsidiary of Borrower or becomes a Subsidiary of Borrower and (y) any
property existing at the time of its acquisition thereof

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by Borrower or any of its
Subsidiaries; provided that such Liens were not created in contemplation
of such merger, consolidation or acquisition and do not extend to any assets
other than (A) those of the Person so merged into or consolidated with Borrower
or such Subsidiary or (B) such assets acquired by Borrower or such Subsidiary
or (C) improvements on or proceeds of the assets described in clause (A)
or (B);

(v)           Liens granted pursuant to the Pledge
Agreement to secure the Secured Obligations;

(vi)          Liens securing the Existing Notes
equally and ratably with the Secured Obligations;

(vii)         other Liens securing Debt permitted
under Section 5.02(c)(v);

(viii)        the replacement, extension or renewal of
any Lien permitted by clause (a)(iii) or (a)(iv) above or
this clause (viii) upon or in the same property theretofore subject
thereto or the replacement, extension or renewal of the Debt secured thereby,
and any improvements on or proceeds of such property and any property covered
by an after-acquired property clause in such Lien;

(ix)           Liens junior to the Lien created by
the Pledge Agreement covering Collateral securing Borrower High Yield Notes
that are senior notes;

(x)            Liens securing Debt permitted to be
incurred under Section 5.02(c)(xi)(B), (xviii) and (xx);
and

(xi)           other Liens securing obligations in
an aggregate amount not to exceed $100,000,000.

(b)           Mergers, Dispositions, Etc.  Merge or consolidate with or into, or convey,
transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of the assets of Borrower and
its Subsidiaries taken as a whole (whether now owned or hereafter acquired) to,
any Person, except that:

(i)            any Subsidiary of Borrower may merge
or consolidate with or into, or dispose of assets to any Guarantor, any
Subsidiary of Borrower that is a holding company with no stand-alone operations
or income may merge or consolidate with or into or dispose of all or
substantially all of such Subsidiary’s assets to Borrower, any Subsidiary of
Borrower may distribute to Borrower any Equity Interests of such Subsidiary’s
Subsidiaries; provided that no Default exists or would result therefrom;

(ii)           any Subsidiary of Borrower may merge
into or consolidate with any other Person or permit any other Person to merge
into or consolidate with it so long as, either (1) such Subsidiary shall be the
survivor thereof, or (2) if the other Person shall be the survivor thereof,
such other Person surviving such consolidation or merger shall be a U.S.
organized entity and, if such other Person is merging with a Guarantor, such
Person shall assume all the obligations of such Guarantor under the Loan
Documents pursuant to Section 5.01(l); provided that no Event of
Default exists or would result therefrom;

(iii)          as part of any Asset Sale otherwise
permitted by this Agreement, any Subsidiary of Borrower may merge into or
consolidate with any other Person or permit

 73

any other Person to merge into or consolidate with it;
provided that no Event of Default exists or would result therefrom;

(iv)          any Subsidiary of Borrower may
liquidate or dissolve if Borrower determines in good faith that such
liquidation or dissolution is in the best interest of Borrower and is not materially
disadvantageous to the Lenders; provided that no Event of Default exists
or would result therefrom; and

(v)           the Acquisition may be consummated in
accordance with the Acquisition Agreement (without giving effect to any waiver,
amendment, supplement or other modification thereto that is material and
adverse to the Lenders without the Agent’s prior approval); provided
that (1) the Acquisition is consummated on or before May 31, 2008,
(2) prior to or contemporaneously with the consummation of the Acquisition, the
Zell Investment Agreement shall have been duly executed and delivered and shall
be in full force and effect unless otherwise terminated in accordance with the
terms thereof; (3) each of the other Second Step Transactions shall have been
consummated prior to or substantially concurrent with the consummation of the
Acquisition, (4) Borrower shall be in compliance with the Second Step Covenants
on a Pro Forma Basis for the Test Period ending immediately prior to the
consummation of the Acquisition and (5) no Default exists or would result
therefrom (the conditions set forth in subclauses (1), (2), (3), (4) or (5),
collectively, the “Acquisition Conditions”).

(c)           Debt.  Incur, create, assume or permit to exist,
directly or indirectly, any Debt, except:

(i)            Debt owed to Borrower or to a wholly
owned Subsidiary of Borrower permitted by Section 5.02(h)(vi);

(ii)           Debt existing on or anticipated to be
incurred on or about the Closing Date and described on Schedule 5.02(c)(ii)
hereto or listed in the Side Letter;

(iii)          Debt incurred under this Agreement and
the other Loan Documents; provided that the incurrence of Incremental
Term Loans is subject to the additional conditions thereto set forth in Section 2.17;

(iv)          Debt of a Person existing at the time
such Person is merged into or consolidated with Borrower or a Subsidiary of
Borrower or becomes a Subsidiary of Borrower in connection with a Permitted
Acquisition; provided that such Debt is not created in contemplation of
such Permitted Acquisition;

(v)           Debt in respect of Purchase Money
Obligations, Capital Lease Obligations and other Debt not otherwise permitted
hereunder which, together with Debt secured by Liens permitted under Section
5.02(a)(vii), does not exceed an aggregate principal amount of $100,000,000
at any time outstanding and any guarantee of Debt in respect thereof;

(vi)          endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of
business;

(vii)         (A) 
Debt of Borrower and its Subsidiaries owing to the seller in any
Permitted Acquisition and (B) any Guaranteed Debt in respect thereof so long as
such 

 74
 

Debt does not, when taken together with all other Debt
incurred pursuant to clause (A) and any refinancings thereof, exceed more than
$100,000,000 in aggregate principal amount outstanding at any time; provided,
however, that any Subsidiary may incur Debt pursuant to this clause
(vii) in excess of $100,000,000 for a period of time not to exceed 30 consecutive
days if such Debt is created or assigned in anticipation of a sale or any other
disposition of a Subsidiary or in anticipation of the dividend or distribution
or other spin-off transaction of the Capital Stock of such Subsidiary to
Borrower’s shareholders permitted pursuant to Section 5.02(b)(iv);

(viii)        to the extent constituting Debt,
obligations in respect of net working capital adjustments and/or earn out
arrangements pursuant to a Permitted Acquisition;

(ix)           any Debt extending the maturity of, or
refunding or refinancing, in whole or in part, any Debt permitted by clauses (c)(ii)
or (iv) above or clauses (c)(xv) or (xviii) below (or this
clause (ix)); provided that (A) the principal amount of such
Debt shall not be increased above the principal amount thereof outstanding
immediately prior to such extension, refunding or refinancing, plus the
amount of any accrued and unpaid interest and premiums required to be paid
thereon and reasonable fees and expenses associated therewith, (B) no portion
of such refinancing Debt matures prior to the earlier of the maturity date of
the Debt being refinanced and the date that is six months after the Tranche B
Maturity Date and (C) the direct and contingent obligors with respect to such
Debt are not changed (except that any refinancing Debt may provide for
guarantees by the Guarantors; provided that any such guarantees are on a
subordinated basis to such Guarantor’s obligations under the Guarantee); provided  that refinancings of the Medium Term Notes with proceeds of
Delayed Draw Tranche B Advances shall be deemed incurred under clause (iii)
above;

(x)            (A) Debt in respect of Hedging
Obligations (other than Secured Hedging Obligations) that does not exceed
$25,000,000 in an aggregate principal amount outstanding at any time; provided,
however, that such limitation shall not apply to Hedging Obligations with
respect to the PHONES and (B) Debt in respect of Secured Hedging Obligations
with respect to interest rates, foreign currency exchange rates or commodity
prices; provided that all Hedge Agreements shall be entered into in the
ordinary course of business or as required by this Agreement and not for
speculative purposes;

(xi)           to the extent constituting Debt, (A)
obligations under performance bonds, surety bonds and letter of credit
obligations to provide security for worker’s compensation claims and (B)
obligations in respect of bank overdrafts not more than five Business Days
overdue, in each case, incurred in the ordinary course of business;

(xii)          to the extent constituting Debt,
indemnification obligations and other similar obligations of Borrower and its
Subsidiaries in favor of directors, officers, employees, consultants or agents
of Borrower or any of its Subsidiaries extended in the ordinary course of
business;

(xiii)         Guaranteed Debt with respect to payment
obligations of any wholly owned Subsidiary in respect of Debt otherwise
permitted under this Section 5.02(c); provided that no Subsidiary
shall guarantee the Existing Notes;

(xiv)        Debt owing to insurance companies to
finance insurance premiums incurred in the ordinary course of business;

 75
 

(xv)         after consummation of the Acquisition,
Borrower High Yield Notes or Borrower Acquisition Bridge Loans in an aggregate
amount not to exceed (x) $4,205.0 million minus (y) the
aggregate principal amount of Incremental Term Advances drawn, and any
Guaranteed Debt in respect thereof;

(xvi)        letters of credit (other than Letters of
Credit) in an aggregate amount not to exceed $75.0 million;

(xvii)       prior to the consummation of the
Acquisition, the Zell Note and, after consummation of the Acquisition, the Zell
Sub Note (and any pay-in-kind interest thereon);

(xviii)      Debt incurred to finance the purchase of
the TMCT Real Property in an aggregate principal amount not to exceed $175.0
million, and any Guaranteed Debt in respect thereof;

(xix)         Junior Capital issued as part of a
Special Contribution;

(xx)          Debt arising in connection with a
Receivables Facility or the sale or financing of accounts receivable, and any
Guaranteed Debt of a Receivables Subsidiary in respect thereof, in an aggregate
amount not to exceed $450,000,000, incurred by Borrower or any of its
Subsidiaries at any time outstanding;

(xxi)         Debt in an aggregate amount not to
exceed $50,000,000 at any one time outstanding arising from agreements with any
governmental authority or political subdivision or agency thereof relating to
the construction of buildings, and the purchase and installation of equipment,
to be used in the business of the Companies;

(xxii)        unsecured Debt of Borrower or a
Guarantor not otherwise permitted to be incurred hereunder that does not
require any principal amortization prior to maturity and matures no earlier
than six months after the Tranche B Maturity Date; provided that (x) to
the extent such Debt is incurred by a Guarantor or is guaranteed by a
Guarantor, such Debt is subordinated in right of payment to such Guarantor’s
Guarantee of the Obligations and (y) after giving effect to such transaction on
a Pro Forma Basis, Borrower shall be in compliance with all covenants set forth
in Sections 5.02(i)(A) and (B) as of the most recent Test
Period (assuming if such transaction is to be consummated prior to the last day
of the first Test Period for which the covenants in Sections 5.02(i)(A)
and (B) are required to be satisfied, the levels required for such first
Test Period shall be deemed to apply in determining compliance with such
covenants for purposes of this clause (xxi));

(xxiii)       Debt (that will be either unsecured or
secured in connection with a Related Transaction) of any Company not otherwise
permitted to be incurred hereunder in an aggregate amount not to exceed
$50,000,000; and

(xxiv)       PDT Debt permitted in accordance with the
definition of “Permitted Disposition Transaction.”

(d)           Payment Restrictions Affecting
Subsidiaries.  Directly or
indirectly, enter into or suffer to exist, any agreement or arrangement which
by its terms limits the ability of any of its Subsidiaries (other than an
Immaterial Subsidiary) to declare or pay dividends or other distributions in
respect of its Equity Interests or repay or prepay any Debt owed to, make loans
or advances

 76
 

to, or
otherwise transfer assets to or make investments in, the Company or any
Subsidiary of the Company other than an Immaterial Subsidiary, except (i)
restrictions, limitations, conditions and prohibitions under or imposed by any
indenture, agreement, instrument or other contractual arrangement (A) imposed
or binding upon Eagle New Media Investments, LLC, Eagle Publishing Investments,
LLC or any Subsidiary established to insure risks of Borrower and its
Subsidiaries, including, without limitation, Multimedia Insurance Company, (B)
in effect on the Closing Date (including this Agreement) and any similar
indentures, agreements or instruments to the extent such restrictions,
limitations, conditions and prohibitions are no more restrictive, taken as a
whole, than those set forth in such existing indentures, agreements or
instruments (including this Agreement), (C) created in connection with any
Receivables Facility and, such restrictions are necessary or advisable, in the
good faith determination of Borrower, to effect such Receivables Facility or
(D) imposed on a Guarantor or PDT Entity in connection with a Permitted Disposition
Transaction so long as such limitations do not have a material adverse impact
on the Collateral or materially and adversely affect such Guarantor’s ability
to satisfy the Obligations when due; (ii) any restrictions consisting of
customary provisions contained in leases, licenses and joint ventures and other
agreements; (iii) restrictions with respect to any Asset Sale permitted under Section 5.02(e)
pending the close of the sale of such Asset Sale; (iv) any restriction or encumbrance
on the transfer of any assets subject to the Liens permitted by Section 5.02(a);
(v) prohibitions or conditions under applicable law, rule or regulation; (vi)
any agreement or instrument in effect at the time a Person first became a
Subsidiary of Borrower or the date such agreement or instrument is otherwise
assumed by Borrower or any of its Subsidiaries, so long as such agreement or
instrument was not entered into in contemplation of such Person becoming a
Subsidiary of Borrower or such assumption; (vii) this Agreement and the other
Loan Documents; (viii)  all documents in connection with the Transactions,
including without limitation the Acquisition Agreement and the Warrant; (ix)
customary provisions in Organizational Documents, asset sale and stock sale
agreements and other similar agreements that restrict the transfer of ownership
interests in any partnership, limited liability company or similar Person; (x)
restrictions on cash or other deposits or net worth imposed by suppliers or
landlords or customers under contracts entered into in the ordinary course of
business; (xi) any instrument governing Debt assumed in connection with any
Permitted Acquisition or transaction permitted by Section 5.02(f), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person or the properties or assets of
the Person so acquired; (xii) in the case of any joint venture which is
not a Loan Party in respect of any matters referred to above, restrictions in
such Person’s Organizational Documents or pursuant to any joint venture
agreement or stockholders agreements solely to the extent of the Equity
Interests of or property held in the subject joint venture or other entity;
(xiii) any encumbrance or restriction imposed by any agreement or
instrument imposing an encumbrance or restriction permitted under Section
5.02(m); (xiv) any encumbrances or restrictions imposed by any amendments or
refinancings that are otherwise permitted by the Loan Documents or the
contracts, instruments or obligations referred to in clause (vi), (viii)
or (xiii) above; provided that such amendments or refinancings
are not materially more restrictive with respect to such encumbrances and
restrictions than those prior to such amendment or refinancing; or (xv)
restrictions imposed by applicable law.

(e)           Asset Sales.  Effect any Asset Sale, or agree to effect any
Asset Sale, except that the following shall be permitted:

(i)            disposition of used, damaged, worn
out, obsolete or surplus property by any Company in the ordinary course of
business and the abandonment or other disposition of Intellectual Property, in
each case as determined by Borrower in its reasonable judgment to be no longer
economically practicable to maintain or useful in the conduct of the business
of the Companies taken as a whole;

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(ii)           (A) Dispositions as part of a
Permitted Disposition Transaction and (B) Asset Sales (other than Dispositions
pursuant to clause (A)); provided that (x) the aggregate fair market
value of the assets sold in all Asset Sales and all Dispositions consummated in
any fiscal year pursuant to this clause (ii) shall not exceed (1) 25% of
Consolidated Total Assets prior to the date all Tranche X Advances have been
paid in full and (2) thereafter, 15% of Consolidated Total Assets, in each
case, as disclosed on the face of Borrower’s audited financial statements for
the immediately preceding fiscal year and (y) with respect to clause (B), at
least 70% of the consideration therefore received by the Loan Parties is in the
form of cash or Cash Equivalents; provided that the Equity Interests
associated with the PHONES shall not be permitted to be sold unless Borrower
contemporaneously purchases call options or otherwise enters into Hedge
Agreements sufficient to ensure Borrower’s ability to perform under the terms
of the PHONES as then in effect;

(iii)          leases of real or personal property in
the ordinary course of business;

(iv)          the Transactions as contemplated by
the Transaction Documents;

(v)           Investments and other transactions in
compliance with Section 5.02(b);

(vi)          Investments and other transactions in
compliance with Section 5.02(h);

(vii)         Asset Sales listed on Schedule
5.02(e) or listed in the Side Letter, provided that at least 70% of
the consideration therefor received by the Loan Parties is in the form of cash
or Cash Equivalents;

(viii)        dispositions of cash and Cash
Equivalents and inventory and goods held for sale in the ordinary course of
business;

(ix)           Asset Sales where (x) property
is exchanged for credit against the purchase price of similar replacement
property or (y) the proceeds of such Asset Sale are promptly applied to
the purchase price of such replacement property;

(x)            Asset Sales to Borrower or to a
Subsidiary (including through the dissolution of any Subsidiary); provided
that if the transferor of such property is a Guarantor or Borrower and only to
the extent that such property does not constitute cash or Cash Equivalents
(i) the transferee thereof must either be Borrower or a Guarantor or (ii)
to the extent such transaction constitutes an Investment, such transaction is
permitted under Section 5.02(h);

(xi)           Liens not prohibited by Section
5.02(a) (including Permitted Liens);

(xii)          dispositions of (x) accounts
receivable in connection with the collection or compromise thereof or (y)
accounts receivable, payment intangibles and related assets in connection with
any Receivables Facility or sale or financing of accounts receivable permitted
under Section 5.02(c)(xx);

(xiii)         leases, subleases, assignments,
licenses or sublicenses, in each case in the ordinary course of business and
which do not materially interfere with the business of Borrower and the Subsidiaries;

 78
 

(xiv)        transfers of property subject to
Casualty Events upon receipt of the Net Cash Proceeds of such Casualty Event;

(xv)         to the extent allowable under Section
1031 of the Code (or comparable or successor provision), any exchange of like
property for use in the ordinary course of the business of the Companies taken
as a whole;

(xvi)        Sale and Lease-Back Transactions in
respect of the sale of fixed or capital assets for gross proceeds not to exceed
$50,000,000 in any fiscal year; and

(xvii)       Dividends permitted by Section 5.02(g).

Notwithstanding anything to the contrary, Borrower is
not permitted to sell, transfer or otherwise dispose of Collateral.

(f)            Acquisitions.  Purchase or otherwise acquire (in one or a
series of related transactions) all or a substantial part of the property
and/or Equity Interests (whether tangible or intangible) of any Person (or
agree to do any of the foregoing at any future time), except that the following
shall be permitted:

(i)            Capital Expenditures by Borrower and
the Subsidiaries shall be permitted to the extent permitted by Section 5.02(i)(C);

(ii)           purchases and other acquisitions of
inventory, materials, equipment and intangible property in the ordinary course
of business;

(iii)          Investments in compliance with Section 5.02(h);

(iv)          leases of real or personal property in
the ordinary course of business;

(v)           the Transactions as contemplated by
the Transaction Documents;

(vi)          Permitted Acquisitions;

(vii)         transactions permitted by Section
5.02(g); and

(viii)        Investments and other transactions in
compliance with Section 5.02(b).

(g)           Dividends.  Authorize, declare or pay, directly or
indirectly, any Dividends with respect to any Company, except that the
following shall be permitted:

(i)            Dividends by any Company to Borrower
or any Guarantor that is a wholly owned Subsidiary of Borrower and Dividends by
any Subsidiary to its direct parent;

(ii)           the repurchase or redemption of
common stock equivalents of Borrower held by officers, directors or employees
or former officers, directors or employees (or their transferees, estates or
beneficiaries under their estates) of any Company, in accordance with the terms
of The Tribune Management Equity Incentive Plan;

(iii)          (A) payments by Borrower (directly or
indirectly) to or on behalf of ESOP in an amount sufficient to pay franchise
taxes and other fees required to maintain 

 79
 

the legal
existence of ESOP and (B) payments by Borrower to or on behalf of ESOP in
an amount sufficient to pay out-of-pocket legal, accounting and filing costs
and other expenses in the nature of overhead in the ordinary course of
administration of the ESOP;

(iv)          Dividends made in connection with the
First Step Transactions;

(v)           Dividends made in connection with the
Acquisition and the other Second Step Transactions; provided that the
Acquisition Conditions are satisfied or waived;

(vi)          without duplication to any ESOP
Related Distributions, subsequent to the consummation of the Acquisition,
Dividends to the ESOP (a) in an amount not to exceed the ESOP Note Repayment
Amounts as and when due and payable, (b) to enable the ESOP to prepay a portion
of the ESOP Note to provide for targeted allocations to ESOP participants as
approved by the Board of Directors and (c) ratable (except with respect to
contributions to the ESOP which will not be ratable) Dividends to all other
holders of Borrower’s common stock;

(vii)         without duplication to any ESOP Related
Distributions, the repurchase and redemption of Borrower’s Capital Stock to
satisfy the ESOP’s and Borrower’s obligations to repurchase Borrower’s common
stock pursuant to the ESOP Documentation or applicable law from accounts
allocated to participants in the ESOP in accordance with the terms of the ESOP;

(viii)        the repurchase or redemption of Junior
Capital that is Capital Stock issued in connection with a Special Contribution
or the Zell Investment in an amount not to exceed the Junior Capital Reduction
Amount on the date of such repurchase or redemption;

(ix)           ESOP Related Distributions;

(x)            Dividends not otherwise permitted
hereunder in an aggregate amount not to exceed the sum of $50,000,000 plus the
Retained Amount; provided that the Total Guaranteed Leverage Ratio would
be no greater than 6.0:1.0 on a Pro Forma Basis taking into account the making
of such Dividends; provided  further that Dividends made using
this clause (x) shall not be used to repurchase or redeem Junior Capital issued
in connection with a Special Contribution or the Zell Investment; and

(xi)           Dispositions made as part of a
Permitted Disposition Transaction.

(h)           Investment, Loan and Advances.  Directly or indirectly, lend money or credit
(by way of guarantee or otherwise) or make advances to any Person, or purchase
or acquire any stock, bonds, notes, debentures or other obligations or
securities of, or any other interest in, or make any capital contribution to,
any other Person (all of the foregoing, collectively, “Investments”),
except that the following shall be permitted:

(i)            the Companies may consummate the
Transactions;

(ii)           Investments outstanding or
contemplated on the Closing Date or listed in the Side Letter and any
extensions or renewals thereof;

 80
 

(iii)          the Companies may (w) acquire and
hold accounts receivable owing to any of them if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary terms, (x) invest in, acquire and hold cash and Cash
Equivalents, (y) endorse negotiable instruments held for collection in the
ordinary course of business or (z) make lease, utility and other similar
deposits in the ordinary course of business;

(iv)          Hedging Obligations incurred pursuant
to Section 5.02(c)(x);

(v)           loans and advances to directors,
employees and officers of Borrower and the Subsidiaries for bona  fide
business purposes and to purchase Equity Interests of Borrower, in an aggregate
amount not to exceed $10,000,000 at any time outstanding; provided that
no loans in violation of Section 402 of the Sarbanes-Oxley Act shall be
permitted hereunder;

(vi)          Investments (i) by any Company in
Borrower or any Guarantor (including, without limitation, the Intercompany
Junior Subordinated Notes), (ii) by any Company in any Person that, in
connection with an Investment that is a Permitted Acquisition, becomes a
Guarantor, (iii) by a Subsidiary that is not a Guarantor in any other Subsidiary
that is not a Guarantor, and (iv) by any Company in any Subsidiary that is not
a Guarantor in an amount not to exceed $50,000,000 in any fiscal year;

(vii)         Investments in securities of trade
creditors or customers in the ordinary course of business received upon
foreclosure or pursuant to any plan of reorganization or liquidation or similar
arrangement upon the bankruptcy or insolvency of such trade creditors or
customers;

(viii)        Investments made by Borrower or any
Subsidiary as a result of consideration received in connection with an Asset
Sale made in compliance with Section 5.02(e);

(ix)           the ESOP Note and ESOP Pledge Agreement;

(x)            Investments (including minority
Investments and joint ventures) in Persons that do not constitute Subsidiaries,
in each case valued at the fair market value (determined by Borrower in good
faith) of such Investment at the time each such Investment is made, in an
aggregate amount pursuant to this clause (x) not to exceed the sum of
(A) $100,000,000 annually, plus (B) the Retained Amount plus (C)
the amount of any Net Cash Proceeds received by Borrower in connection with an
issuance of Borrower’s Equity Interests after the Closing Date other than the
issuance of Junior Capital as part of a Special Contribution;

(xi)           without duplication to any Dividends
paid pursuant to Section 5.02(g)(vii), ESOP Related Distributions;

(xii)          acquisitions permitted under Section
5.02(f) (other than clause (iii) thereof);

(xiii)         Investments in connection with any
Receivables Facility or sale or financing of accounts receivable permitted
under Section 5.02(c)(xx);

 81
 

(xiv)        the creation or formation of new
Subsidiaries so long as such Person has complied with any applicable
obligations under Section 5.01(l) hereof;

(xv)         the Broadcasting Holdco Transaction and
the Tribune Finance LLC Transaction;

(xvi)        additional Investments not otherwise
permitted under this Section 5.02(h) in an amount not to exceed
$50,000,000 at any time outstanding;

(xvii)       Guaranteed Debt otherwise permitted under
Section 5.02(c) and Debt permitted under Section 5.02(c)(i);

(xviii)      Investments made with common stock of
Borrower; and

(xix)         Investments in connection with a
Permitted Disposition Transaction.

(i)            Financial Covenants.

(A)          Maximum Total Guaranteed Leverage
Ratio.  Permit the Total Guaranteed
Leverage Ratio, as of the last day of any Test Period in effect during any
period in the table below, to exceed the ratio set forth opposite such period
in the table below under column (B) for any Test Period ending prior to the
consummation of the Second Step Transactions and under column (C) for any Test
Period ending on or after the consummation of the Second Step Transactions:

	
  

  Test Period

  (A)

  	
   

  	
  Total Guaranteed 

  Leverage Ratio

  (B)

  	
   

  	
  Total Guaranteed 

  Leverage Ratio

  (C)

  
	
  Closing Date

  	
  –

  	
  December 30,
  2007

  	
   

  	
  6.25 to 1.0

  	
   

  	
  9.00 to 1.0

  
	
  December 31,
  2007

  	
  –

  	
  December 28,
  2008

  	
   

  	
  6.00 to 1.0

  	
   

  	
  9.00 to 1.0

  
	
  December 29,
  2008

  	
  –

  	
  December 27,
  2009

  	
   

  	
  5.75 to 1.0

  	
   

  	
  8.75 to 1.0

  
	
  December 28,
  2009

  	
  –

  	
  December 26,
  2010

  	
   

  	
  5.50 to 1.0

  	
   

  	
  8.50 to 1.0

  
	
  December 27,
  2010 and thereafter

  	
   

  	
  5.25 to 1.0

  	
   

  	
  8.25 to 1.0

  

 

(B)           Minimum Interest Coverage Ratio.  Permit the Interest Coverage Ratio, for any
Test Period in effect during any period in the table below, to be less than the
ratio set forth opposite such period in the table below under column (B) for
any Test Period ending prior to the consummation of the Second Step Transactions
and under column (C) for any Test Period ending on or after the consummation of
the Second Step Transactions: 

	
  Test Period

  (A)

  	
   

  	
  Interest

  Coverage Ratio

  (B)

  	
   

  	
  Interest Coverage 

  Ratio

  (C)

  
	
  Closing Date

  	
  –

  	
  December 30,
  2007

  	
   

  	
  1.75 to 1.0

  	
   

  	
  1.10 to 1.0

  
	
  December 31,
  2007

  	
  –

  	
  December 28,
  2008

  	
   

  	
  2.00 to 1.0

  	
   

  	
  1.15 to 1.0

  
	
  December 29,
  2008

  	
  –

  	
  December 27,
  2009

  	
   

  	
  2.00 to 1.0

  	
   

  	
  1.20 to 1.0

  
	
  December 28,
  2009 and thereafter

  	
   

  	
  2.00 to 1.0

  	
   

  	
  1.25 to 1.0

  

 

(C)           Limitation on Capital Expenditures.
 Permit the aggregate amount of Capital Expenditures
(excluding (i) the purchase of the TMCT Real Property, (ii) expenditures of
insurance proceeds to rebuild or replace any asset, (iii) leasehold improvement
expenditures for which Borrower

 82
 

or a Subsidiary is reimbursed by the lessor, sublessor
or sublessee and (iv) expenditures of proceeds (including Net Cash Proceeds) of
any asset sale permitted under Section 5.02(e)) made in any period set
forth below to exceed the amount set forth opposite such period below plus the
Retained Amount:

	
  Period

  	
   

  	
  Amount (in millions)

  	
   

  
	
  Closing Date

  	
  –

  	
  December 30,
  2007

  	
   

  	
  $

  	
  210.0

  	
   

  
	
  December 31,
  2007

  	
  –

  	
  December 28,
  2008

  	
   

  	
  $

  	
  210.0

  	
   

  
	
  December 29,
  2008

  	
  –

  	
  December 27,
  2009

  	
   

  	
  $

  	
  145.0

  	
   

  
	
  December 28,
  2009

  	
  –

  	
  December 26,
  2010

  	
   

  	
  $

  	
  145.0

  	
   

  
	
  December 27, 2010 and
  thereafter

  	
   

  	
  $

  	
  145.0

  	
   

  

 

; provided,  however, that if the aggregate amount of Capital
Expenditures made in any fiscal year shall be less than the maximum amount of
Capital Expenditures permitted under this Section 5.02(i)(C) for
such fiscal year, then an amount of such shortfall may be added to the amount
of Capital Expenditures permitted under this Section 5.02(i)(C) for
the succeeding fiscal years.

For purposes of determining pro forma compliance with
any of the tests in this Section 5.02(i) prior to delivery of the first
Compliance Certificate after the Closing Date, compliance will be tested based
on the Test Period ended March 25, 2007 and the levels set forth in the topmost
row of each chart.

(j)            Prepayments of Other Debt and
Modifications of Certain Documents, etc. 
Directly or indirectly:

(i)            make (or give any notice in respect
thereof) any voluntary or optional payment or prepayment on or redemption or
acquisition for value of, or any prepayment or redemption as a result of any
asset sale, change of control or similar event of, any Debt other than Debt
outstanding hereunder; provided that Borrower may (w) prepay or redeem
Junior Capital that is not Capital Stock issued in connection with a Special
Contribution or the Zell Investment not to exceed the Junior Capital Reduction
Amount on the date of such repayment or redemption, (x) make a prepayment or
redemption of Debt listed on Schedule 5.02(c)(ii) in connection
with refinancing thereof permitted under Section 5.02(c)(ix) or
with proceeds of Delayed Draw Tranche B Advances, (y) make a prepayment,
repurchase or redemption of the Zell Note in accordance with its terms, (z)
make a prepayment or redemption of Debt secured by an asset sold in connection
with any Asset Sale permitted under Section 5.02(e) with the Net Cash
Proceeds of such Asset Sale, (aa) make any prepayment of the Zell Sub Note to
the extent not prohibited by the terms of any applicable subordination
provisions, (bb) make prepayments and redemptions of any Debt with the proceeds
of other Debt permitted to be incurred under Section 5.02(c), and (cc)
make prepayments and redemptions of Debt not otherwise permitted hereunder in
an aggregate amount not to exceed the Retained Amount; provided that no
prepayments or redemptions of Junior Capital are permitted using this clause
(cc); or

(ii)           amend or modify, or permit the
amendment or modification of, any provision of any Transaction Document
(including any Borrower Acquisition Bridge Loan Documents, any Borrower High
Yield Notes Documents and the Zell Investment Agreement), the ESOP
Documentation or the PHONES in any manner that is adverse in any material
respect to the interests of the Lenders; provided that Borrower may
amend the ESOP Documentation to the extent required by the Internal Revenue
Service in order to 

 83
 

obtain a favorable determination letter with respect
to the ESOP or to comply with changes in applicable law.

(k)           Limitation on Issuance of Capital
Stock.

(i)            With respect to Borrower, issue any
Equity Interest that is not common stock or warrants, options or other rights
to acquire in each case Borrower common stock.

(ii)           With respect to any Subsidiary, issue
any Equity Interest (including by way of sales of treasury stock) or any
options or warrants to purchase, or securities convertible into, any Equity
Interest, except (v) for issuances made in connection with re-incorporating a
Subsidiary in a different jurisdiction, issuances made in connection with
mergers of Subsidiaries effected for purposes of relocating such Subsidiaries
in a different jurisdiction or becoming a limited liability company and
conversions of corporations into limited liability companies, in each case so
long the owners of the Equity Interests remain the same immediately after such
conversions; (w) issuances of Equity Interests as part of a Permitted
Disposition Transaction; (x) for stock splits, stock dividends and additional
issuances of Equity Interests which do not decrease the percentage ownership of
any Subsidiaries in any class of the Equity Interest of such Subsidiary; (y)
Subsidiaries of Borrower formed after the Closing Date may issue Equity
Interests to Borrower or the Subsidiary of Borrower which is to own such Equity
Interests; and (z) Subsidiaries of Borrower for and after the Closing Date may
issue de minimis amounts of Equity Interests to comply with applicable local
laws.  All Equity Interests issued in
accordance with this Section 5.02(k)(ii) by Tribune Finance, LLC or
Tribune Broadcasting Holdco LLC shall be subject to the pledge pursuant to the
Pledge Agreement.

(l)            Business.  Borrower and the Subsidiaries shall not
engage in any business other than those businesses in which Borrower and its
Subsidiaries are engaged on the Closing Date or, in the good faith judgment of
the Board of Directors, which are incidental or related thereto, reasonable
extensions thereof or reasonably similar or complementary thereto, including,
without limitation, entering into Receivables Facilities.

(m)          No Further Negative Pledge.  Enter into any agreement, instrument, deed or
lease which prohibits or limits the ability of any Loan Party to create, incur,
assume or suffer to exist any Lien upon any of their respective properties or
revenues, whether now owned or hereafter acquired, or which requires the grant
of any security for an obligation if security is granted for another
obligation, except the following: 
(i) this Agreement and the other Loan Documents;
(ii) covenants in documents creating Liens not prohibited by Section
5.02(a) prohibiting further Liens on the properties encumbered thereby;
(iii) any other agreement that does not restrict in any manner (directly
or indirectly) Liens created pursuant to the Loan Documents on any Collateral
securing the Secured Obligations and does not require the direct or indirect
granting of any Lien securing any Debt or other obligation by virtue of the
granting of Liens on or pledge of property of any Loan Party to secure the
Secured Obligations; (iv) any prohibition or limitation that (a) exists
pursuant to applicable requirements of law, (b) consists of customary
restrictions and conditions contained in any agreement relating to the sale of
any property permitted under Section 5.02(e) pending the
consummation of such sale, (c) restricts subletting or assignment of
leasehold interests contained in any lease or sublease governing a leasehold
interest of Borrower or a Subsidiary, (d) exists in any agreement in
effect at the time such Subsidiary becomes a Subsidiary of Borrower, so long as
such agreement was not entered into in contemplation of such Person becoming a
Subsidiary or (e) is imposed by any amendments or refinancings that are otherwise
permitted by the Loan Documents or the contracts, instruments or obligations
referred to

 

 84

in
clause (iii) or (iv)(d); provided that such amendments and
refinancings are no more materially restrictive with respect to such
prohibitions and limitations than those prior to such amendment or refinancing;
(v) the indentures and agreements related to the Existing Notes; (vi) all
Transaction Documents; (vii) restrictions on assignment contained in any
contract entered into by any Company; and (viii) limitations imposed in
connection with a Permitted Disposition Transaction, so long as such
limitations do not extend beyond the asset subject to the Disposition and any Investments
received as consideration for such Disposition.

(n)           Limitation on Tribune Finance, LLC.  Tribune Finance, LLC may not hold any
material properties (other than the Intercompany Junior Subordinated Notes),
become liable for any material obligations, engage in any trade or business, or
conduct any business activity, other than (1) the issuance of its Equity
Interests to Borrower, (2) the incurrence of Debt as a co-obligor or
guarantor, as the case may be, of Borrower Acquisition Bridge Loans and
Borrower High Yield Notes and the Loan Documents, (3) Investments pursuant
to the Intercompany Junior Subordinated Notes; and (4) activities incidental
thereto.  Neither Borrower nor any Subsidiary
shall engage in any transactions with Tribune Finance, LLC in violation of the
immediately preceding sentence.

(o)           ERISA.  For plan years beginning after December 31,
2007, from and after the consummation of the Acquisition, Borrower shall not
make, and shall cause its Subsidiaries not to make, any contributions (other
than “elective contributions” within the meaning of Treas. Reg. § 1.401(k)-6)
to the Tribune Company 401(k) Savings and Profit Sharing Plan; provided, that
for the 2007 plan year, Borrower shall be permitted to make contributions with
respect to such year in 2008.

ARTICLE
VI

EVENTS OF
DEFAULT

SECTION 6.01.        Events
of Default.  If any of the following
events (“Events of Default”) shall occur and be continuing:

(a)           Borrower shall fail to pay any
principal of any Advance when the same becomes due and payable; or Borrower
shall fail to pay any interest on any Advance or make any other payment of fees
or other amounts payable under any Loan Document within five Business Days
after the same becomes due and payable; or

(b)           any representation or warranty made
by or on behalf of any Loan Party in any Loan Document or by or on behalf of
any Loan Party (or any of its officers) in connection with any Loan Document
shall prove to have been incorrect in any material respect when made or deemed
made; or

(c)           (i) any Loan Party shall fail to
perform or observe any term, covenant or agreement contained in Section
5.01(d) (solely with respect to the existence of Borrower), 5.01(i)(iv)(a),
5.01(n) or 5.02, or (ii) any Loan Party shall fail to perform or
observe any other term, covenant or agreement (other than those referred to in
clause (a) or (b) above) contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 30 days after
written notice thereof shall have been given to Borrower by the Agent or any
Lender; or

 85
 

(d)           Borrower or any of its Subsidiaries
(other than an Immaterial Subsidiary) shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal amount of at
least $75,000,000 in the aggregate (but excluding Debt outstanding hereunder
and provided that with respect to Hedge Agreements such amount shall be
the then effective net payment obligations of Borrower or any Subsidiary of
Borrower (other than an Excluded Subsidiary) in respect of such Hedge
Agreements) of Borrower or such Subsidiary (as the case may be), when the same
becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Debt; or any such Debt shall
be declared to be due and payable, or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or
defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be
required to be made, in each case prior to the stated maturity thereof; or

(e)           Borrower or any of its Subsidiaries
(other than an Immaterial Subsidiary) shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or
any proceeding shall be instituted by or against Borrower or any of its
Subsidiaries (other than an Immaterial Subsidiary) seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted
against it (but not instituted by it), either such proceeding shall remain
undismissed or unstayed for a period of 60 days, or any of the actions sought
in such proceeding (including, without limitation, the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall
occur; or

(f)            judgments or orders for the payment
of money in excess of $75,000,000 in the aggregate shall be rendered against
Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) and
either (i) enforcement proceedings shall have been commenced by any creditor
upon such judgment or order or (ii) there shall be any period of 60 consecutive
days during which payment for such judgment or order shall remain unsatisfied
or a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; provided, however,
that any such amount shall be calculated after deducting from the sum so
payable any amount of such judgment or order that is covered by a valid and
binding policy of insurance in favor of Borrower or such Subsidiary; or

(g)           any Change in Control shall occur; or

(h)           Borrower or any of its ERISA
Affiliates shall incur, or shall be reasonably likely to incur, liability as a
result of one or more of the following which would be reasonably likely to have
a Material Adverse Effect: (i) the occurrence of any ERISA Event; (ii) the
partial or complete withdrawal of Borrower or any of its ERISA Affiliates from
a Multiemployer Plan; (iii) the reorganization or termination of a
Multiemployer Plan; or (iv) a prohibited transaction under Section 406 of ERISA
or Section 4975 of the Code for which there is no exemption under Section 408
of ERISA or Section 4975 of the Code, respectively; or

 86
 

(i)            any Loan Document shall cease to be
legal, valid and binding obligations of Borrower or a Guarantor, enforceable
against Borrower and the Guarantor as party thereto in accordance with their
respective terms (except, in any case, as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally and by principles of equity) or the enforceability
of any Loan Document shall be contested by Borrower or a Guarantor; or

(j)            the Liens created by the Pledge
Agreement shall at any time not constitute a valid and perfected Lien on the
Collateral intended to be covered thereby (to the extent perfection by filing,
registration, recordation, or possession is required herein or therein) in
favor of the Agent, having the priority contemplated by the Pledge Agreement
(except to the extent such Liens have been released in accordance with this
Agreement or such other Loan Document), or shall be asserted by Borrower or any
Subsidiary not to be a valid, perfected, security interest in or Lien on the
Collateral covered thereby;

then, and in any such event, the Agent (i) shall at
the request, or may with the consent, of the Required Lenders, by notice to
Borrower, declare the obligation of each Lender to make Advances (other than Advances
to be made by an Issuing Bank or a Revolving Credit Lender pursuant to Section
2.03(c)) and of the Issuing Banks to issue Letters of Credit to be
terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to Borrower,
declare the Advances, all interest thereon and all other amounts payable under
this Agreement to be forthwith due and payable, whereupon the Advances, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with
respect to Borrower under the Federal Bankruptcy Code, (A) the obligation of
each Lender to make Advances (other than Advances to be made by an Issuing Bank
or a Revolving Credit Lender pursuant to Section 2.03(c)) and of the
Issuing Banks to issue Letters of Credit shall automatically be terminated and
(B) the Advances, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by Borrower.

SECTION 6.02.        Actions
in Respect of the Letters of Credit upon Default.  If any Event of Default shall have occurred
and be continuing, the Agent may with the consent, or shall at the request, of
the Required Revolving Credit Lenders, irrespective of whether it is taking any
of the actions described in Section 6.01 or otherwise, make demand upon
Borrower to, and forthwith upon such demand Borrower will, (a) pay to the Agent
on behalf of the Revolving Credit Lenders in same day funds at the Agent’s office
designated in such demand, for deposit in the L/C Cash Deposit Account, an
amount equal to the aggregate Available Amount of all Letters of Credit then
outstanding or (b) make such other arrangements in respect of the outstanding
Letters of Credit as shall be acceptable to the Required Revolving Credit
Lenders and not more disadvantageous to Borrower than the foregoing clause (a);
provided, however, that in the event of an actual or deemed entry
of an order for relief with respect to Borrower under the Federal Bankruptcy
Code, an amount equal to the aggregate Available Amount of all outstanding
Letters of Credit shall be immediately due and payable to the Agent for the
account of the Revolving Credit Lenders without notice to or demand upon
Borrower, which are expressly waived by Borrower, to be held in the L/C Cash
Deposit Account.  If at any time an Event
of Default is continuing the Agent determines that any funds held in the L/C
Cash Deposit Account are subject to any right or claim of any Person other than
the Agent and the Revolving Credit Lenders or that the total amount of such
funds is less than the aggregate Available Amount of all Letters of Credit, Borrower
will, forthwith upon demand by the Agent, pay to the Agent, as additional funds
to be deposited and held in the L/C Cash Deposit Account, an amount equal to
the excess of (a) such aggregate Available Amount over (b) the total amount of
funds, if any, then held in the L/C Cash Deposit Account that the Agent
determines to be free and clear of 

 87
 

any such right and claim.  Upon the drawing of any Letter of Credit, to
the extent funds are on deposit in the L/C Cash Deposit Account, such funds
shall be applied to reimburse the Issuing Banks to the extent permitted by
applicable law.  Upon the earlier of (i)
no Event of Default continuing and (ii) all Letters of Credit having
expired or been fully drawn upon, the balance, if any, in such L/C Cash Deposit
Account shall be returned to Borrower and deposited into Borrower’s Account for
Borrower’s sole use.

ARTICLE
VII

THE AGENT

SECTION 7.01       Authorization
and Action.  Each Lender (in its
capacity as a Lender and Issuing Bank, as applicable) hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto.  As to any matters
not expressly provided for by this Agreement (including, without limitation,
enforcement or collection of the Notes), the Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders (or such greater
number of Lenders as may be required pursuant to Section 8.01), and such
instructions shall be binding upon all Lenders and all holders of Notes; provided,
however, that the Agent shall not be required to take any action that
exposes the Agent to personal liability or that is contrary to this Agreement
or applicable law.  The Agent agrees to
give to each Lender prompt notice of each notice given to it by Borrower
pursuant to the terms of this Agreement. 
The Agent may execute any of its duties under this Agreement and the
other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.  The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.  Notwithstanding the
foregoing, unless and until a replacement Agent shall have been appointed and
shall have accepted such appointment in accordance with Section 7.06,
the Agent shall remain liable for the performance of all of its duties and obligations
hereunder.

SECTION 7.02       Agent’s
Reliance, Etc.  Neither the Agent nor
any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except to the extent resulting from its or their own gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a
final, non-appealable judgment).  Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom
until the Agent receives and accepts an Assignment and Acceptance entered into
by such Lender, as assignor, and an Eligible Assignee, as assignee, as provided
in Section 8.07; (ii) may consult with legal counsel (including
counsel for Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel, accountants
or experts; (iii) except as expressly required herein, makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance, observance or satisfaction of any of the
terms, covenants or conditions of this Agreement on the part of Borrower or the
existence at any time of any Event of Default or to inspect the property
(including the books and records) of Borrower; (v) shall not be responsible to
any Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, this
Agreement or any other instrument or document furnished pursuant hereto; and
(vi) shall incur no liability under or in respect of this Agreement by acting
upon any notice, consent, certificate or other instrument 

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or writing (which may be by telecopier) believed by it
to be genuine and signed or sent by the proper party or parties.

SECTION 7.03.      The
Agent and Affiliates.  With respect
to its Commitments, the Advances made by it and any Note or Notes issued to it,
the Agent shall have the same rights and powers under this Agreement as any
other Lender and may exercise the same as though it were not the Agent; and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include
the Agent in its individual capacity. 
The Agent and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of
Borrower or any such Subsidiary, all as if the Agent were not the Agent and
without any duty to account therefor to the Lenders.  The Agent shall have no duty to disclose any
information obtained or received by it or any of its Affiliates relating to
Borrower or any of its Subsidiaries to the extent such information was obtained
or received in any capacity other than as Agent.  In the event that the Agent or any of its
Affiliates shall be or become an indenture trustee under the Trust Indenture
Act of 1939 (as amended from time to time, the “Trust Indenture Act”) in
respect of any securities issued or guaranteed by Borrower, the parties hereto
acknowledge and agree that any payment or property received in satisfaction of
or in respect of any obligation of Borrower hereunder by or on behalf of the
Agent in its capacity as the Agent for the benefit of any Lender under this
Agreement or any Note (other than the Agent or an Affiliate of the Agent) and
which is applied in accordance with this Agreement shall be deemed to be exempt
from the requirements of Section 311 of the Trust Indenture Act pursuant to
Section 311(b)(3) of the Trust Indenture Act.

SECTION 7.04.      Lender
Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon the Agent or
any other Lender and based on the financial statements referred to in Section 4.01
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement.

SECTION 7.05.      Indemnification.

(a)           The
Lenders agree to indemnify the Agent (to the extent not reimbursed by Borrower,
but without limiting Borrower’s reimbursement obligations), ratably according
to the respective principal amounts of the Advances then owed to each of them
(or if no Advances are at the time outstanding, ratably according to the respective
amounts of their Commitments) (“Ratably”), from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and disbursements of counsel) of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against the Agent
in any way relating to or arising out of this Agreement or any action taken or
omitted by the Agent under this Agreement (collectively, the “Indemnified
Costs”), provided that no Lender shall be liable for any portion of
the Indemnified Costs, except to the extent any such Indemnified Cost is found
in a final, non-appealable judgment to have resulted from the Agent’s gross
negligence or willful misconduct. 
Without limitation of the foregoing, each Lender agrees to Ratably
reimburse the Agent promptly upon demand for any out-of-pocket expenses
(including reasonable counsel fees) incurred by the Agent in connection with
the preparation, execution, delivery, administration, modification, amendment
or enforcement (whether through negotiations, legal proceedings or otherwise)
of, or legal advice in respect of rights or responsibilities under, this
Agreement, to the extent that the Agent is not reimbursed for such expenses by
Borrower.  In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 7.05 applies whether any such investigation,
litigation or proceeding is brought by the Agent, any Lender or a third party.

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(b)           Each
Revolving Credit Lender severally (but not jointly) agrees to indemnify each
Issuing Bank (to the extent not promptly reimbursed by Borrower) from and
against such Lender’s Ratable Share of any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and
disbursements of counsel) of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against any such Issuing Bank in its capacity as
such in any way relating to or arising out of this Agreement or any action
taken or omitted by such Issuing Bank in its capacity as such hereunder or in
connection herewith, in each case whether or not such investigation, litigation
or proceeding is brought by any Lender, its directors, shareholders or
creditors or the Agent is otherwise a party thereto, provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or
disbursements, except to the extent any such Indemnified Cost is found in a
final, non-appealable judgment to have resulted from such Issuing Bank’s gross
negligence or willful misconduct. 
Without limitation of the foregoing, each Lender agrees to reimburse any
such Issuing Bank promptly upon demand for its Ratable Share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by
Borrower under Section 8.04, to the extent that such Issuing Bank is not
promptly reimbursed for such costs and expenses by Borrower.

(c)           The
failure of any Lender to reimburse the Agent or any Issuing Bank promptly upon
demand for its Ratable Share or Ratably, as the case may be, of any amount required
to be paid by the Lenders to the Agent or an Issuing Bank as provided herein
shall not relieve any other Lender of its obligation hereunder to reimburse the
Agent or such Issuing Bank Ratably or for its Ratable Share of such amount, as
the case may be, but no Lender shall be responsible for the failure of any
other Lender to reimburse the Agent or any Issuing Bank for such other Lender’s
share of such amount.  Without prejudice
to the survival of any other agreement of any Lender hereunder, the agreement
and obligations of each Lender contained in this Section 7.05 shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under the Notes. 
Each of the Agent and each Issuing Bank agrees to return to the Lenders
their respective shares of any amounts paid under this Section 7.05 that
are subsequently reimbursed by Borrower, together with any interest received
thereon.

SECTION 7.06.      Successor
Agent.  The Agent may resign at any
time by giving written notice thereof to the Lenders and Borrower and may be
removed at any time with or without cause by the Required Lenders.  Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Agent; provided
that, unless an Event of Default has occurred and is continuing, such successor
Agent shall be reasonable satisfactory to Borrower.  If no successor Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent’s giving of notice of resignation or
the Required Lenders’ removal of the retiring Agent, then the retiring Agent
may, on behalf of the Lenders, appoint a successor Agent, which shall be (i) a
commercial bank organized under the laws of the United States of America or of
any State thereof and having a combined capital and surplus of at least
$500,000,000 and (ii) unless an Event of Default has occurred and is
continuing, reasonably satisfactory to Borrower.  Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, discretion, privileges and
duties of the retiring Agent, and the retiring Agent shall be discharged from
its duties and obligations under this Agreement.  After any retiring Agent’s resignation or
removal hereunder as Agent, the provisions of this Article VII shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

SECTION 7.07.      Other
Agents.  Each Lender hereby
acknowledges that none of the syndication agent, any Lead Arranger, any
co-documentation agent or any other Lender designated as any “Agent” on the
signature pages hereof has any liability hereunder other than in its capacity
(if any) as a Lender.

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ARTICLE
VIII

MISCELLANEOUS

SECTION 8.01.      Amendments,
Etc.  Except as provided in Section
2.17, no amendment or waiver of any provision of this Agreement or the
Notes, nor consent to any departure by Borrower therefrom, shall in any event
be effective unless the same shall be in writing and signed by Borrower and the
Required Lenders, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that (a) no amendment, waiver or consent shall, unless in
writing and signed by Borrower and all the Lenders, do any of the following:
(i) change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Advances or participations in Letters of Credit, the number of
Lenders that shall be required for the Lenders or any of them to take any
action hereunder, or the definition of “Required Lenders” or “Required Revolving
Credit Lenders”,  (ii)  release
any material Guarantor from its obligations under the Guarantee Agreement
(except as otherwise permitted herein or in the other Loan Documents), (iii)
except as provided in Section 8.20(a), release all or substantially of the
Collateral, (iv) amend the proviso of Section 8.06, or (v) amend this Section 8.01
and (b) no amendment, waiver or consent shall, unless in writing and signed by
Borrower and each Lender that has or is owed obligations under this Agreement
that are adversely modified by such amendment, waiver or consent, do any of the
following: (i) increase any Commitment of such Lenders other than as provided
in Section 2.17, (ii) reduce or forgive the principal of, or
interest on, the Advances or any fees or other amounts payable hereunder (including,
without limitation, any amounts that become due pursuant to Section 2.10(c))
or change the currency in which the Advances or any fees or other amounts are
made by such Lender or are payable to such Lender; provided that only
the consent of the Required Lenders shall be necessary to amend Section 2.07(b)
or to waive any obligation of Borrower to pay any increased interest pursuant
to Section 2.07(b), (iii) postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder or (iv) change Section 2.13(a) or (f), Section
2.15 or Section 7 of the Pledge Agreement in a manner that would alter the
manner in which payments are shared; and provided  further that
(x) no amendment, waiver or consent shall, unless in writing and signed by the
Agent in addition to Borrower and the Lenders required above to take such
action, affect the rights or duties of the Agent under this Agreement or any
Note and (y) no amendment, waiver or consent shall, unless in writing and
signed by the Issuing Banks in addition to Borrower and the Lenders required
above to take such action, adversely affect the rights or obligations of the
Issuing Banks in their capacities as such under this Agreement; provided
further that no amendment, waiver or consent shall (x) change or waive
any condition in Section 3.02 to any Revolving Credit Advance without
the written consent of Borrower and the Required Revolving Credit Lenders and
(y) on or before the expiration or termination of all Delayed Draw Tranche B
Commitments, change or waive any condition in Section 3.02 to any
Delayed Draw Tranche B Advance without the written consent of Borrower and the
Lenders holding at least a majority of the aggregate outstanding Delayed Draw
Tranche B Commitments.  Notwithstanding
the foregoing, any amendment that shall cure any ambiguity, omission, mistake,
defect or inconsistency shall be effective if the same shall be in writing and
signed by Borrower and the Agent.

If any Lender does not consent to a proposed
amendment, waiver, consent or release with respect to any Loan Document that
requires the consent of each Lender and that has been approved by the Required
Lenders, Borrower may replace such non-consenting Lender (a “Non-Consenting
Lender”) or replace such Non-Consenting Lender from the class of Advances
for which consent is being sought, in each case, in accordance with Section 8.15;
provided that such amendment, waiver, consent or release can be effected
as a result of the assignment contemplated by such Section (together with all
other such assignments required by Borrower to be made pursuant to this paragraph).

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If any Non-Consenting Lender is required to assign any
Tranche X Advances or Tranche B Advances pursuant to Section 8.07 in connection
with such Non-Consenting Lender’s failure to approve any amendment to this
Agreement that would, as of the effective date of such amendment, reduce the
Applicable Margin applicable to such Tranche X Advances or Tranche B Advances,
as the case may be, and such assignment will become effective on or prior to
the first anniversary of the Closing Date (excluding any such assignment in
connection with a refinancing of all of the Facilities outstanding under this
Agreement), then Borrower agrees to pay such Non-Consenting Lender a fee in an
amount equal to 1.00% of the aggregate amount of such assigned Tranche X
Advances or Tranche B Advances, as the case may be, outstanding on the
effective date of such assignment. 
Notwithstanding anything to the contrary in this Section, this paragraph
shall not be waived, amended or modified without the written consent of each
Lender adversely affected thereby.

SECTION 8.02.      Notices,
Etc.

(a)           Except
in the case of notices and other communications expressly permitted to be given
by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

(i)            if to Borrower, to it at 435 North
Michigan Avenue, 6th Floor, Chicago,
Illinois 60611, Attention of General Counsel (Telecopy No. (312) 222-4206),
with a copy to Sidley Austin LLP, at 1 South Dearborn Street, Chicago, Illinois
60603, Attention:  Robert Lewis, Esq.
(Telecopy No. (312) 853-7036; Email: 
rlewis@sidley.com);

(ii)           if to the Agent, the Swing Line
Lender or the Initial Issuing Bank, to JPMorgan Chase Bank, Loan and Agency
Services Group, 1111 Fannin, 8th Floor, Houston, Texas 77002, Attention of
Gloria Javier (Telecopy No. (713) 750-2358; Email:  gloria.javier@jpmorgan.com), with a copy to
JPMorgan Chase Bank,  270 Park Avenue,
New York 10017, Attention of John Kowalczuk (Telecopy No. (212) 270-5127;
Email:  john.kowalczuk@jpmorgan.com); and

if to any other Lender or Issuing Bank, to it
at its address (or telecopy number or email address) set forth in its Administrative
Questionnaire.

(b)           Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the Agent or the other parties
hereto.  All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date delivered, mailed
or telecopied, except that notices to the Agent pursuant to Article II, III or
IV shall not be effective until the date of receipt.

(c)           Electronic
Communications.  Notices and other
communications to the Lenders and the Issuing Banks hereunder may (subject to Section
8.02(d)) be delivered or furnished by electronic communication (including e-mail
and Internet or intranet websites) pursuant to procedures approved by the Agent
and Borrower; provided that the foregoing
shall not apply to notices to any Lender or any Issuing Bank pursuant to
Article II if such Lender or such Issuing Bank, as applicable, has
notified the Agent that it is incapable of receiving notices under such Section
by electronic communication.  The Agent
or Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it (including as set forth in Section 8.02(d));
provided that approval of such procedures
may be limited to particular notices or communications.

Unless the Agent otherwise prescribes,
(i) notices and other communications sent to an e-mail address shall be
deemed received upon the sender’s receipt of an acknowledgment from the
intended 

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recipient (such as by the “return receipt requested” function,
as available, return e-mail or other written acknowledgment); provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

(d)           Posting.  Each Loan Party hereby agrees that it will
provide to the Agent all written information, documents and other materials
that it is obligated to furnish to the Agent pursuant to this Agreement and any
other Loan Document, including all notices, requests, financial statements,
financial and other reports, certificates and other information materials, but
excluding any such communication that (i) relates to a request for a new,
or a conversion of an existing, Advance or other extension of credit (including
any election of an interest rate or interest period relating thereto),
(ii) relates to the payment of any principal or other amount due under
this Agreement prior to the scheduled date therefor, (iii) provides notice
of any Default or Event of Default under this Agreement or (iv) is
required to be delivered to satisfy any condition precedent to the
effectiveness of this Agreement and/or any borrowing or other extension of
credit hereunder (all such non-excluded communications, collectively, the “Communications”),
by transmitting the Communications in an electronic/soft medium in a format
reasonably acceptable to the Agent at such e-mail address(es) provided to
Borrower from time to time or in such other form, including hard copy delivery
thereof, as the Agent shall reasonably require. 
In addition, each Loan Party agrees to continue to provide the Communications
to the Agent in the manner specified in this Agreement or any other Loan
Document or in such other form, including hard copy delivery thereof, as the
Agent shall reasonably require.  Nothing
in this Section 8.02 shall prejudice the right of the Agent, any
Lender or any Loan Party to give any notice or other communication pursuant to
this Agreement or any other Loan Document in any other manner specified in this
Agreement or any other Loan Document or as the Agent shall reasonably require.

The Agent agrees that receipt of the Communications by
the Agent at its e-mail address(es) set forth above shall constitute effective
delivery of the Communications to the Agent for purposes of the Loan Documents.

Each Loan Party further agrees that Agent may make the
Communications available to the Lenders on a confidential basis by posting the
Communications on Intralinks or a substantially similar electronic transmission
system (the “Platform”).  The Platform
is provided “as is” and “as available”. 
The Agent does not warrant the accuracy or completeness of the
Communications, or the adequacy of the Platform and expressly disclaims
liability for errors or omissions in the Communications.  No warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the Agent in connection
with the Communications or the Platform. 
In no event shall the Agent or any of its Affiliates have any liability
to the Loan Parties, any Lender or any other Person for damages of any kind,
including direct or indirect, special, incidental or consequential damages,
losses or expenses (whether in tort, contract or otherwise) arising out of any
Loan Party’s or the Agent’s transmission of communications through the
Internet, except to the extent the liability of the Agent or any of its
affiliates results solely from such Person’s gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final,
non-appealable judgment) or material breach of its express obligations.

(e)           Each
Lender agrees that notice to it (as provided in the next sentence) (a “Notice”)
specifying that any Communications have been posted to the Platform shall
constitute effective delivery of such information, documents or other materials
to such Lender for purposes of this Agreement; 

 93
 

provided that if requested by any Lender the Agent shall deliver a copy
of the Communications to such Lender by email or telecopier.  Each Lender agrees (i) to notify the Agent in
writing of such Lender’s e-mail address to which a Notice may be sent by
electronic transmission (including by electronic communication) on or before
the date such Lender becomes a party to this Agreement (and from time to time
thereafter to ensure that the Agent has on record an effective e-mail address
for such Lender) and (ii) that any Notice may be sent to such e-mail address.

SECTION 8.03.      No
Waiver; Remedies.  No failure on the
part of any Lender or the Agent to exercise, and no delay in exercising, any
right hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right 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.

SECTION 8.04.      Costs
and Expenses; Indemnity; Survival.

(a)           Borrower
agrees to pay promptly following demand, all reasonable and documented
out-of-pocket costs and expenses of the Agent and the Lead Arrangers in
connection with the preparation, execution, delivery, administration,
modification and amendment (whether or not effective) of this Agreement, the Notes
and the other documents to be delivered hereunder, including, without limitation,
(A) all due diligence, syndication (including printing, distribution and bank
meetings), transportation, computer and duplication expenses and (B) the
reasonable fees and expenses of Cahill Gordon & Reindel LLP, special outside counsel for the
Agent, with respect thereto and with respect to advising the Agent as to its
rights and responsibilities under this Agreement.  Borrower further agrees to pay promptly
following demand all reasonable and documented out-of-pocket costs and expenses
of the Agent, the Lead Arrangers and the Lenders, if any (including, without
limitation, reasonable and documented counsel fees and expenses), in connection
with the enforcement (whether through negotiations, legal proceedings or
otherwise) of this Agreement, the Notes and the other documents to be delivered
hereunder, including, without limitation, reasonable and documented fees and
expenses of counsel for the Agent and each Lender in connection with the
enforcement of rights under this Section 8.04(a).

(b)           Borrower
agrees to indemnify and hold harmless the Agent, each Lead Arranger and each
Lender and each of their Affiliates and their officers, directors, employees,
agents, trustees and advisors (each, an “Indemnified Party”) from and
against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel)
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) the Advances, the Notes, this
Agreement, any Letter of Credit, any of the transactions contemplated herein or
the actual or proposed use of the proceeds of the Advances or Letters of
Credit, 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.  In the case of an
investigation, litigation or other proceeding to which the indemnity in this Section 8.04(b)
applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by Borrower, its directors, equityholders
or creditors or an Indemnified Party or any other Person, whether or not any
Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated.  The parties hereto also agree not to assert
any claim for special, indirect, consequential or punitive damages against any
other party hereto, or any of their respective directors, officers, employees,
attorneys and agents, on any theory of liability, arising out of or otherwise
relating to the Notes, this Agreement, any of the transactions contemplated
herein or the actual or proposed use of the proceeds of the Advances or Letters
of Credit.

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(c)           If
any payment of principal of, or Conversion of, any Eurodollar Rate Advance is
made by Borrower to or for the account of a Lender (i) other than on the last
day of the Interest Period for such Advance, as a result of a payment or
Conversion pursuant to Section 2.08, 2.09, 2.10 or 2.12,
acceleration of the maturity of the Notes pursuant to Section 6.01
or for any other reason, or by an Eligible Assignee to a Lender other than on
the last day of the Interest Period for such Advance upon an assignment of
rights and obligations under this Agreement pursuant to Section 8.07
as a result of a demand by Borrower pursuant to Section 8.07(a) or
(ii) as a result of a payment or Conversion pursuant to Section 2.10
or 2.12, Borrower shall, promptly following demand by such Lender (with
a copy of such demand to the Agent), pay to the Agent for the account of such
Lender any amounts required to compensate such Lender for any additional
losses, costs or expenses (other than lost profits) that it may reasonably
incur as a result of such payment or Conversion, including, without limitation,
any loss, cost or expense (other than lost profits) incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by any Lender
to fund or maintain such Advance.

(d)           In
the event any Lender shall incur any loss or expense (including any loss or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to make or continue any portion of the principal
amount of any Advance as, or to convert any portion of the principal amount of
any Advance into, a Eurodollar Rate Advance) as a result of (i) any Advances
not being made as Eurodollar Rate Advances in accordance with the Notice of
Borrowing therefor or (ii) any Advances not being continued as, or converted
into, Eurodollar Rate Advances in accordance with the notice of Conversion
therefor, Borrower shall, promptly following demand by such Lender (with a copy
of such demand to the Agent), pay to the Agent for the account of such Lender
any amounts required to compensate such Lender for any additional losses, costs
or expenses (other than lost profits) that it may reasonably incur as a result
of such loss or expense, including, without limitation, any loss, cost or
expense (other than lost profits) incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.

(e)           Without
prejudice to the survival of any other agreement of Borrower hereunder, the
agreements and obligations of Borrower contained in Sections 2.11, 2.14
and 8.04 shall survive the payment in full of principal, interest and
all other Obligations (other than contingent obligations for unasserted claims)
hereunder and under the Notes.

SECTION 8.05.      Right
of Set-off.  Upon (a) the
occurrence and during the continuance of any Event of Default and (b) the
making of the request or the granting of the consent specified by Section 6.01
to authorize the Agent to declare the Advances due and payable pursuant to the
provisions of Section 6.01, each Lender and each of its Affiliates
is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender or such Affiliate to or for the
credit or the account of Borrower against any and all of the obligations of
Borrower now or hereafter existing under this Agreement and the Note held by
such Lender, whether or not such Lender shall have made any demand under this
Agreement or such Note and although such obligations may be unmatured.  Each Lender agrees promptly to notify
Borrower after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender
and its Affiliates under this Section 8.05 are in addition to other
rights and remedies (including, without limitation, other rights of set-off)
that such Lender and its Affiliates may have.

SECTION 8.06.      Binding
Effect.  This Agreement shall become
effective when it shall have been executed by Borrower and the Agent and when
the Agent shall have been notified by each Initial Lender that such Initial
Lender has executed it and thereafter shall be binding upon and inure to the
benefit of Borrower, the Agent and each Lender and their respective successors
and assigns, provided,  

 95

 

however
that Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of all the Lenders.

SECTION 8.07.      Assignments
and Participations.

(a)           Each
Lender may, with the consent of the Agent, each Issuing Bank (in the case of
any assignment of the Revolving Credit Commitments) and Borrower (such consents
not to be unreasonably withheld or delayed), and, if demanded by Borrower
pursuant to Section 8.15 upon at least five Business Days’ notice
to such Lender and the Agent, shall, assign to one or more Persons all or a portion
of its rights and obligations under any Facility under this Agreement
(including, without limitation, all or a portion of its Commitments, the
Advances owing to it and the Note or Notes held by it); provided, however,
that the consent of Borrower shall not be required for assignments (i) of Term
Advances, (ii) to any Lender or one or more of such Lender’s Affiliates or
Approved Funds and (iii) if a Default or Event of Default under clause (a) or
(e) of Section 6.01 shall have occurred and be continuing; and provided,
further, that (A) each such assignment shall be of a constant, and not a
varying, percentage of all rights and obligations under this Agreement with
respect to one or more Facilities, (B) except in the case of an assignment to a
Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender’s rights and obligations under this Agreement
with respect to a Facility, the amount of the Commitment under such Facility of
the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to
such assignment and on an aggregate basis with respect to Related Funds (as defined
below)) shall in no event be less than (x) $1,000,000, with respect to a
Term Advance, or (y) $5,000,000, with respect to a Revolving Credit Advance,
or, in each case, an integral multiple of $1,000,000 in excess thereof unless
Borrower and the Agent otherwise agree, (C) each such assignment shall be to an
Eligible Assignee, (D) each such assignment made as a result of a demand by
Borrower pursuant to this Section 8.07(a) shall be arranged by Borrower
after consultation with the Agent and shall be either an assignment of all of
the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with another
such assignment or other such assignments that together cover all of the rights
and obligations of the assigning Lender under this Agreement or, in the case of
any Non-Consenting Lender, all or the portion of all of the rights and
obligations of such Non-Consenting Lender relating to the class of Advances for
which consent is being sought, (E) no Lender shall be obligated to make
any such assignment as a result of a demand by Borrower pursuant to this Section
8.07(a) unless and until such Lender shall have received one or more
payments from either Borrower or one or more Eligible Assignees in an aggregate
amount at least equal to the aggregate outstanding principal amount of the Advances
owing to such Lender, together with accrued interest thereon to the date of
payment of such principal amount and all other amounts payable (including
amounts payable, if any, pursuant to Section 2.10(c)) to such Lender
under this Agreement, (F) the consent of the Agent and/or each Issuing Bank (as
applicable) shall not be required for an assignment to any Lender or one or
more of such Lender’s Affiliates or Approved Funds, (G) any term or provision
hereof to the contrary notwithstanding, the parties to each such assignment
shall execute and deliver to the Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note subject to such
assignment and a processing and recordation fee of $3,500 payable by the
parties to each such assignment (it being understood that only one fee shall be
required to be paid by a Lender in respect of concurrent assignments to two or
more Related Funds) (unless such fee shall otherwise be waived by the Agent),
and (H) if the Eligible Assignee is not a Lender, it shall deliver to the Agent
an Administrative Questionnaire in which the assignee designates one or more
credit contacts to whom all syndicate-level information (which may contain material
non-public information about any of the Loan Parties and their respective
related parties or their respective securities) will be made available, who
will comply with Section 8.08 and who may receive such information in
accordance with the assignee’s compliance procedures and applicable laws,
including Federal and state securities laws; provided, however,
that in the case of each assignment made as a result of a demand by Borrower
pursuant to Section 8.15, such recordation fee shall be payable by
Borrower except 

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that no such recordation fee shall be payable in the
case of an assignment made at the request of Borrower to an Eligible Assignee
that is an existing Lender or an Affiliate of an existing Lender or shall
otherwise be waived by the Agent.  Upon
such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.11, 2.14
and 8.04 to the extent any claim thereunder relates to an event arising
prior to such assignment) and be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto).

(b)           By
executing and delivering an Assignment and Acceptance, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and
the other parties hereto as follows:  (i)
other than as provided in such Assignment and Acceptance, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of, or the perfection or priority of any lien
or security interest created or purported to be created under or in connection
with, this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of Borrower
or the performance or observance by Borrower of any of its obligations under
this Agreement or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this Agreement, together
with copies of the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance;
(iv) such assignee will, independently and without reliance upon the Agent,
such assigning Lender or any other Lender and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all of the obligations that by the terms of this Agreement are
required to be performed by it as a Lender.

(c)           Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and
an assignee representing that it is an Eligible Assignee, together with any
Note or Notes subject to such assignment, the Agent shall, if such Assignment
and Acceptance has been completed and is in substantially the form of Exhibit
C hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to
Borrower.

(d)           The
Agent shall maintain at its address referred to in Section 8.02 a
copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the
Commitments of, and principal amount of the Advances owing to, each Lender from
time to time (the “Register”). 
The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and Borrower, the Agent and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement.  The
Register shall be available for inspection by Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.  The Agent, in maintaining the Register, is
acting solely for such purpose, as an agent for Borrower.

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(e)           Each
Lender may sell participations to one or more banks or other entities (other
than Borrower or any of its Affiliates) in or to all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Advances owing to it and any Note or Notes held
by it); provided, however, that (i) such Lender’s obligations
under this Agreement (including, without limitation, its Commitment to Borrower
hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Note for all purposes of
this Agreement, (iv) Borrower, the Agent and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement and (v) no participant under any
such participation shall have any right to approve any amendment or waiver of
any provision of this Agreement or any Note, or any consent to any departure by
Borrower therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such participation,
or postpone any date fixed for any payment of principal of, or interest on, the
Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation.

(f)            Each
Lender that sells a participating interest in all or a portion of its rights
and obligations under this Agreement to a participant shall, as agent of
Borrower solely for the purpose of this Section 8.07, record in
book entries maintained by such Lender the name and the amount of the participating
interest of each participant entitled to receive payments in respect of such
participating interests.

(g)           Any
Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section 8.07, disclose
to the assignee or participant or proposed assignee or participant, any
information relating to Borrower furnished to such Lender by or on behalf of
Borrower; provided that, prior to any such disclosure, (i) the
assignee or participant or proposed assignee or participant shall agree in
writing to preserve the confidentiality of any Borrower Information relating to
Borrower received by it from such Lender on substantially the same terms as
provided in Section 8.08 and (ii) such Lender shall notify
Borrower of such assignment or participation.

(h)           Any
Lender may at any time pledge or assign a security interest in all or any portion
of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

SECTION 8.08.      Confidentiality.  Until the first anniversary of the date on
which no Advance shall remain unpaid, no Letter of Credit is outstanding and no
Lender shall have any Commitment hereunder, neither the Agent nor any Lender
may disclose to any Person any Borrower Information, except that each of the
Agent and each of the Lenders may disclose Borrower Information (i) to its and
its affiliates’ employees, officers, directors, agents, trustees and advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of Borrower Information and instructed to
keep Borrower Information confidential on substantially the same terms as
provided herein), (ii) to the extent requested by any regulatory authority,
(iii) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (iv) to any other party to this Agreement,
(v) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights
hereunder, (vi) subject to an agreement containing provisions substantially the
same as those of this Section 8.08, to (A) any assignee or
participant or prospective assignee or participant or (B) any actual or
prospective counterparty (or its advisors) to any Hedge Agreements evidencing
Secured Hedging Obligations, (vii) to the extent Borrower Information (A) is or
becomes generally available to the public on a non-confidential basis other
than as a result of a breach of this Section 8.08 by the Agent or
such Lender, or (B) is or becomes available to the Agent or such Lender 

 98
 

on a nonconfidential basis from a source other than
Borrower, (viii) rating agencies, subject to their confidentiality guidelines
and procedures, and (ix) with the consent of Borrower.  Each Lender shall be deemed to have complied
with this Section 8.08 if it exercises the same degree of care with
respect to the confidentiality of Borrower Information as it accords to its own
confidential information in accordance with safe and sound banking
practices.  For the purposes of this Section,
“Borrower Information” means all information received from Borrower or
any of its Subsidiaries relating to Borrower, any of its Subsidiaries or any of
their businesses, other than any such information that is available to the
Agent, the Issuing Banks or any Lender on a non-confidential basis and not in
contravention of any applicable confidentiality or similar provision prior to
disclosure by Borrower or any of its Subsidiaries.  Any Person required to maintain the
confidentiality of Borrower Information as provided in this Section 8.08
shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of
such Borrower Information as such Person would accord to its own confidential
information.

EACH LENDER ACKNOWLEDGES THAT BORROWER
INFORMATION AS DEFINED IN SECTION 8.08 FURNISHED
TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION
CONCERNING ANY OF THE LOAN PARTIES AND THEIR RESPECTIVE RELATED PARTIES OR
THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE
PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT
WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION AND ALL BORROWER INFORMATION
IN COMPLIANCE WITH THIS SECTION 8.08 AND IN ACCORDANCE WITH THOSE PROCEDURES
AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS
AND AMENDMENTS, FURNISHED BY BORROWER OR THE AGENT PURSUANT TO, OR IN THE
COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION,
WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT ANY OF THE LOAN PARTIES
AND THEIR RESPECTIVE RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO
BORROWER AND THE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE
QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE BORROWER  INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN
ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW AND WILL COMPLY
WITH THIS SECTION 8.08.

SECTION 8.09.      Governing Law.  THIS AGREEMENT AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

SECTION 8.10.      Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Agreement by telecopier shall be effective as delivery
of a manually executed counterpart of this Agreement.

SECTION 8.11.      Jurisdiction,
Etc.

(a)           Each
of the parties hereto hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court
or federal court of the 

 99
 

United States of America sitting in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement or the Notes, or for recognition or enforcement of any
judgment arising out of or relating to this Agreement or any Notes, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in any such New York State court or, to the extent permitted by law, in such
federal court.  Borrower hereby
irrevocably consents to the service of process in any action or proceeding in
such courts by the mailing thereof by any parties hereto by registered or
certified mail, postage prepaid, to Borrower at its address specified pursuant
to Section 8.02.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding relating
to this Agreement or the Notes in the courts of any jurisdiction.

(b)           Each
of the parties hereto irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or the Notes in any New York State court
or federal court sitting in New York City. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

SECTION 8.12.      No
Liability of the Issuing Banks. 
Borrower assumes all risks of the acts or omissions of any beneficiary
or transferee of any Letter of Credit with respect to its use of such Letter of
Credit.  Neither an Issuing Bank nor any
of its officers or directors shall be liable or responsible for:  (a) the use that may be made of any
Letter of Credit or any acts or omissions of any beneficiary or transferee in
connection therewith; (b) the validity, sufficiency or genuineness of
documents, or of any endorsement thereon, even if such documents should prove
to be in any or all respects invalid, insufficient, fraudulent or forged; (c)
payment by such Issuing Bank against presentation of documents that do not
comply with the terms of a Letter of Credit, including failure of any documents
to bear any reference or adequate reference to the Letter of Credit; or (d) any
other circumstances whatsoever in making or failing to make payment under any
Letter of Credit, except that Borrower shall have a claim against such Issuing
Bank, and such Issuing Bank shall be liable to Borrower, to the extent of any
direct, but not consequential, damages suffered by Borrower that Borrower
proves were caused by (i) such Issuing Bank’s willful misconduct or gross
negligence when determining whether drafts and other documents presented under
a Letter of Credit comply with the terms thereof or (ii) any Issuing Bank’s
willful failure to make lawful payment under a Letter of Credit after
presentation to it of a draft and certificates, and at a time and place,
strictly complying with the terms and conditions of the Letter of Credit.  In furtherance and not in limitation of the
foregoing, such Issuing Bank may accept documents that appear on their face to
be in order, without responsibility for further investigation; provided
that nothing herein shall be deemed to excuse such Issuing Bank if it acts with
gross negligence or willful misconduct in accepting such documents.

SECTION 8.13.      Patriot
Act Notice.  Each Lender and the
Agent (for itself and not on behalf of any Lender) hereby notifies Borrower
that pursuant to the requirements of the Patriot Act, it is required to obtain,
verify and record information that identifies Borrower, which information
includes the name and address of Borrower and other information that will allow
such Lender or the Agent, as applicable, to identify Borrower in accordance
with the Patriot Act.  Borrower shall
provide such information and take such actions as are reasonably requested by
the Agent or any Lenders in order to assist the Agent and the Lenders in maintaining
compliance with the Patriot Act.

SECTION 8.14.      Waiver of Jury Trial.  EACH OF BORROWER, THE AGENT AND THE LENDERS
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY 

 100
 

IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE NOTES OR THE ACTIONS OF THE AGENT OR ANY
LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

SECTION 8.15.      Replacement
of Lenders.

(a)           If
(A) any Lender requests compensation under Section 2.11(a) or (b),
(B) Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.14,
(C) any Lender gives notice pursuant to Section 2.12 with
respect to an occurrence or state of affairs not applicable to all Lenders,
(D) any Lender is a Defaulting Lender, (E) any Lender is a
Non-Consenting Lender under Section 8.01 or (F) any Lender becomes
insolvent and its assets become subject to a receiver, liquidator, trustee, custodian
or other Person having similar powers, then Borrower may, at its sole expense
and effort, upon notice to such Lender and the Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in, and consents required by, Section 8.07), all of its
interests, rights and obligations under this Agreement and its Note, if any, to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that:

(i)      Borrower shall have paid to the Agent the
assignment fee specified in Section 8.07(a) or the Agent shall have
waived receipt of such fee in writing;

(ii)     such replaced Lender shall have received
payment of an amount equal to the outstanding principal of its Advances,
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under its Note (including any amounts under Sections 2.10(c),
2.11 and 2.14) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or Borrower (in the case of all other
amounts);

(iii)    in the case of any such assignment resulting
from a claim for compensation under Section 2.11(a) or (b)
or payments required to be made pursuant to Section 2.14, such
assignment will result in a reduction in such compensation or payments thereafter;

(iv)    the assignee shall be an Eligible Assignee
and shall agree to accept such assignment and to assume all obligations of such
Lender hereunder in accordance with Section 8.07;

(v)     any such replacement shall not be deemed to
be a waiver of any rights that any party shall have against any other party;

(vi)    in the case of any such assignment of a
Non-Consenting Lender under Section 8.01, the assignee shall grant its
consent with respect to the applicable proposed amendment, waiver or consent;

(vii)   the consent of any Non-Consenting Lender to
any such assignment shall not be required; and

(viii)  such assignment does not conflict with
applicable law.

Upon compliance with the provisions of this Section
8.15, the replacement Lender shall become a Lender hereunder and the Lender so
replaced shall cease to constitute a Lender hereunder.  A Lender shall not be required to make any
such assignment or delegation if, prior thereto, as a result of a waiver by
such 

 101
 

Lender or otherwise, the circumstances entitling
Borrower to require such assignment and delegation cease to apply.

SECTION 8.16.      Acknowledgments.  Each of the Loan Parties hereby acknowledges
that:

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

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

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

SECTION 8.17.      Headings.  Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

SECTION 8.18.      Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

SECTION 8.19.      Reliance.  All covenants, agreements, representations
and warranties made by the Loan Parties herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Advances
and issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the Agent, any
Issuing Bank or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any
accrued interest on any Advance or any fee or any other Obligation under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding
(other than contingent obligations for unasserted claims) or all outstanding
Letters of Credit have been cash collateralized or secured by a back-up letter
of credit and so long as the Commitments have not expired or terminated.

SECTION 8.20.      Releases
of Guarantees and Liens.

(a)           Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
Agent is hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender except as expressly required by Section 8.01)
to take any action requested by Borrower having the effect of releasing any
Collateral or Guarantee obligations (i) to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document or that has
been consented to in accordance with Section 8.01 or (ii) under the
circumstances described in paragraph (b) below.

 102
 

(b)           At
such time as the Advances and the other Obligations (other than contingent
obligations for unasserted claims) shall have been paid in full, the Commitments
have been terminated and no Letters of Credit shall be outstanding or all
outstanding Letters of Credit have been cash collateralized or secured by a
back-up letter of credit, the Collateral shall be released from the Liens
created by the Pledge Agreement, and the Loan Documents and all Obligations
(other than those expressly stated to survive such termination) of the Agent
and each Loan Party under the Loan Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

 103

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first above written.

 

	
  

  	
  TRIBUNE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Donald C. Grenesko

  	
   

  
	
   

  	
   

  	
  Name: Donald C. Grenesko

  
	
   

  	
   

  	
  Title: Senior Vice President/Finance and
  Administration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
   

  	
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Anastasio

  	
   

  
	
   

  	
   

  	
  Name: Robert Anastasio

  
	
   

  	
   

  	
  Title: Vice President

  

 

 S-1
 

 

	
  

  	
  INITIAL LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,

  	
   

  
	
   

  	
  as Co-Documentation Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Daniel R.Petrik

  	
   

  
	
   

  	
   

  	
  Name: Daniel R. Petrik

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS BANK PLC,

  	
   

  
	
   

  	
  as Co-Documentation Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ David Barton

  	
   

  
	
   

  	
   

  	
  Name: David Barton

  
	
   

  	
   

  	
  Title: Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CIT LENDING SERVICES CORP.,

  	
   

  
	
   

  	
  as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Donald J. Oberg, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Donald J. Oberg, Jr.

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITICORP NORTH AMERICA, INC.,

  	
   

  
	
   

  	
  as Co-Documentation Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Julie Persily

  	
   

  
	
   

  	
   

  	
  Name: Julie Persily

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  	
   

  
	
   

  	
  as Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Robert Anastasio

  	
   

  
	
   

  	
   

  	
  Name: Robert Anastasio

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK N.A.,

  	
   

  
	
   

  	
  as Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Paul B. Cronin

  	
   

  
	
   

  	
   

  	
  Name: Paul B. Cronin

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 S-2
 

 

	
  

  	
  LEHMAN BROTHERS COMMERCIAL BANK,

  
	
   

  	
  as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Brian McNany

  	
   

  
	
   

  	
   

  	
  Name: Brian McNany

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL CORPORATION,

  
	
   

  	
  as Syndication Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ David Tuvlin

  	
   

  
	
   

  	
   

  	
  Name: David Tuvlin

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK,

  
	
   

  	
  as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Derek R. Cook

  	
   

  
	
   

  	
   

  	
  Name: Derek R. Cook

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMITOMO MITSUI BANKING CORPORATION,

  
	
   

  	
  as Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Leo E. Pagarigan

  	
   

  
	
   

  	
   

  	
  Name: Leo E. Pagarigan

  
	
   

  	
   

  	
  Title: General Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 S-3Exhibit
      10.1

    

    PURCHASE
      AND SALE AGREEMENT

    

    This
      Purchase and Sale Agreement (this “Agreement”) is entered into this
      11th
      day of
      May, 2007 (“Effective
      Date”),
      between HERITAGE OAKS BANK, a California banking corporation (“Seller”),
      and
      FIRST STATES GROUP, L.P., a Delaware limited partnership (“Purchaser”).
      In
      consideration of the mutual agreements herein set forth, the parties hereto,
      intending to be legally bound, agree as follows. 

    

    1. Defined
      Terms/Riders:
      

    

    
      	
              Closing
                Date:

            	 	
              Fifteen
                (15) days after the expiration of the Due Diligence
                Period.

            
	
              Deposit:

            	 	
              $250,000.00

            
	
              Due
                Diligence Period

            	 	
              Forty-five
                (45) days starting on the date a counterpart of this Agreement is
                delivered to Purchaser, including, without limitation, delivery by
                digital
                or electronic means or facsimile.

            
	
              Escrowee:

            	 	
              Chicago
                Title Insurance Company 

              1601
                Market Street

              Philadelphia,
                PA 19103

              Attention:
                Edwin Ditlow, Vice President

            
	
              Exhibits:

            	 	
              Exhibit
                A
                -
                Property List

              Exhibit
                B
                -
                Escrow Agreement

              Exhibit
                C
                -
                Permitted Exceptions

              Exhibit
                D
                -
                Form of Lease

            
	
              Improvements:

            	 	
              The
                buildings, structures, improvements, personal property and fixtures
                erected or located on the Land.

            
	
              Land:

            	 	
              That
                certain tracts or parcels of land as more fully described on Exhibit
                A
                attached hereto.

            
	
              Lease:

            	 	
              The
                lease pursuant to which Seller shall lease back the Property from
                Purchaser at Closing, substantially in the form identified on Exhibit
                D
                attached hereto.

            
	
              Purchase
                Price:

            	 	
              $12,810,000.00,
                allocated as set forth on Exhibit
                A.
                

            
	
              Purchaser’s
                EIN:

            	 	
              02-0604467

            
	
              Purchaser’s
                Notice Address:

            	 	
              610
                Old York Road

              Suite
                300

              Jenkintown,
                PA 19046

              Attention:
                Jeffrey P. Foster, Senior Vice-President - Real Estate
                Transactions.

               

              With
                a required copy to:

               

              610
                Old York Road

              Suite
                300

              Jenkintown,
                PA 19046

              Attention:
                Sonya A. Huffman, Senior Vice-President - Operations

            
	
              Purchaser’s
                Transfer Tax Share:

            	 	
              0%

            
	
              Riders:

            	 	
              The
                following Riders are attached to and made a part of this Agreement
                as if
                more fully set forth herein:

               

              X Due
                Diligence Rider

              X
                California Rider

            
	
              Seller’s
                EIN:

            	 	
              95-3763629

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Seller’s
                Notice Addresses:

            	 	
              Heritage
                Oaks Bank

              545
                12th
                Street

              Paso
                Robles, CA 93446

              Attention:
                William R. Raver, Senior Vice President - Risk Manager

               

              With
                a copy to:

               

              Heritage
                Oaks Bank

              545
                12th
                Street

              Paso
                Robles, CA 93446

              Attention:
                Margaret Torres, Executive Vice President and Chief Financial
                Officer

            
	
              Seller’s
                Transfer Tax Share:

            	 	
              100%

            
	
              Tenant
                Inducement Costs

            	 	
              Any
                out-of-pocket payments required under the Leases to be paid by the
                landlord thereunder to or for the benefit of the tenant thereunder
                which
                is in the nature of a tenant inducement, including specifically,
                but
                without limitation, tenant improvement costs, lease buyout payments,
                and
                moving, design, refurbishment and club membership allowances and
                costs.
                The term "Tenant Inducement Costs" shall not
                include loss of income resulting from any free rental period, it
                being
                understood and agreed that Seller shall bear the loss resulting from
                any
                free rental period until the Closing Date and that Purchaser shall
                bear
                such loss from and after the Closing Date.

            
	
              Transfer
                Tax:

            	 	
              Any
                tax, levy or documentary stamp required to be paid or purchased in
                connection with recordation of the Deed and the cost of which is
                determined by the amount of the Purchase
                Price.

            

    

    

    2. Agreement
      to Sell; Lease of Property.
      

    

    (A) For
      the
      Purchase Price and subject to the terms and conditions hereof, Seller agrees
      to
      sell and convey to Purchaser, and Purchaser agrees to purchase and take from
      Seller, all Seller’s right, title and interest in and to all and singular the
      following (which are herein sometimes collectively referred to as the
“Property”):

    

    (i) the
      Land;

    

    (ii) the
      Improvements; 

    

    (iii) the
      tenements, hereditaments, appurtenances, rights of way, strips, gores,
      easements, rights and privileges in any way pertaining or beneficial to the
      Land
      or Improvements; and

    

    (iv) all
      damages, awards, claims and causes of action now or hereafter payable or
      assertable with respect to any of the foregoing by reason of any exercise of
      the
      power of eminent domain, any change of grade of any street, road, highway,
      avenue or alley, or any damage, destruction, loss or removal of any of the
      foregoing.

    

    (B) Commencing
      on the Closing Date, Purchaser, as landlord, shall lease to Seller, as tenant,
      the Property upon the terms and conditions provided in the
      Lease. The rent and other consideration to be paid by Seller to Purchaser under
      the Lease for each Property is set forth on Exhibit
      A.

    

    3. Purchase
      Price.
      The
      Purchase Price for the Property shall be payable by Purchaser as
      follows:

    

    (A) The
      Deposit is payable to Escrowee upon execution hereof by Purchaser to Escrowee,
      to be held in escrow and disbursed by Escrowee pursuant to the provisions of
      that certain Escrow Agreement (“Escrow
      Agreement”)
      of
      even date herewith among Seller, Purchaser and Escrowee, a copy of which is
      attached hereto as Exhibit
      B.
      At
      Closing (defined below), the Deposit shall be credited to Purchaser on account
      of the Purchase Price. If Closing does not occur, the Deposit either shall
      be
      refunded to Purchaser or paid to Seller as herein provided. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (B) The
      balance of the Purchase Price, subject to the prorations and adjustments herein
      provided for, shall be payable at Closing (below defined) (A) in cash, (B)
      by
      bank, cashier’s or certified check or (C) by wire transfer to an account
      designated by Seller. If the amount due Seller pursuant to this Agreement is
      not
      received by Seller in sufficient time for reinvestment on the Closing Date,
      then
      Purchaser shall reimburse Seller for loss of interest due to the failure to
      reinvest Seller's funds on the Closing Date. The provisions of the preceding
      sentence of this Section
      3(B)
      shall
      survive Closing and delivery of the Deed.

    

    
      	 	
              4.

            	
              Closing.

            

    

    

    (A) The
      closing of the conveyance of the Property (“Closing”)
      is the
      meeting at which Seller transfers ownership of the Property by deed,
      the
      form
      of which deed (including the legal description of the Property) shall be the
      same form in which title to the Property is vested in Seller (the
      “Deed”),
      and
      Purchaser pays the remainder of the Purchase Price. Closing shall be held at
      10:00 A.M. prevailing local time on the Closing Date. Closing shall be held
      either by mail or, if a closing by mail is not possible, then at the offices
      of
      Escrowee. 

    

    (B) At
      Closing (except as otherwise noted below), Seller shall deliver the following
      documents to Purchaser (the “Seller
      Deliverables”):

    

    (i) the
      Deed
      sufficient to vest in Purchaser title to the Land and the other portions of
      the
      Property that constitute real property in accordance with this
      Agreement;

    

    (ii) a
      bill of
      sale sufficient to vest in Purchaser title to any portion of the Property that
      is not conveyed by the Deed, with covenants of limited or special warranty;
      

    

    (iii) all
      documents reasonably required by Escrowee which are necessary in order for
      Escrowee to issue the title insurance policy to Purchaser in accordance with
      this Agreement;

    

    (iv) a
      duly
      executed counterpart of such certificates, disclosures and reports as are
      required by applicable state and local law in connection with the conveyance
      of
      the Property; 

    

    (v) two
      (2)
      duly executed by Seller counterparts of an assignment and assumption of
      intangibles, pursuant to which Seller assigns to Purchaser and Purchaser assumes
      all of Seller’s right, title and interest to the intangible personal property;

    

    (vi) a
      certificate stating that Seller is not a “foreign person” within the meaning of
      Internal Revenue Code Section 1445; 

    

    (vii) confirmation
      of the existence and subsistence of Seller, and the authority of those executing
      for Seller, including without limitation, the following documents issued no
      earlier than thirty (30) days prior to Closing: (a) a good standing certificate
      in the state of Seller’s organization, and (b) a duly executed certificate from
      any officer of Seller confirming the incumbency of the signatories and the
      current force and effect of the resolution authorizing the execution of the
      documents under this Agreement;

    

    (x) two
      (2)
      duly executed by Seller counterparts of the Lease for the Property;

    

    (xi) an
      estoppel certificate dated as of the Closing Date in the form required under
      the
      Lease, duly executed by Seller and certified to Purchaser and any lender
      identified by Purchaser; and

    

    (xi) not
      later
      than ten (10) days prior to the expiration of the Due Diligence Period, a report
      detailing the natural hazards affecting the property prepared by an independent
      third party pursuant to California Civil Code §1102.4.

    

    (C) At
      Closing, Purchaser shall deliver or cause to be delivered to Seller (the
“Purchaser
      Deliverables”):

    

    (i) the
      amounts required to be paid to Seller pursuant to this Agreement;

    

    (iii) confirmation
      of the existence and subsistence of Purchaser, and the authority of those
      executing for Purchaser, including without limitation, the following documents
      issued no earlier than thirty (30) days prior to Closing: (a) a good standing
      certificate in the state of Purchaser’s organization, and (b) a duly executed
      certificate from any officer of Purchaser confirming the incumbency of the
      signatories and the current force and effect of the resolution authorizing
      the
      execution of the documents under this Agreement;  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv) two
      (2)
      duly executed by Purchaser counterparts of an assignment and assumption of
      intangibles, pursuant to which Purchaser assumes from Seller all of Seller’s
      right, title and interest to the intangible personal property; and

    

    (v) two
      (2)
      duly executed by Purchaser counterparts of the Lease.

    

    
      	 	
              5.

            	
              Title.
                

            

    

     

    (A) At
      Closing title to the Property shall be fee simple absolute, free and clear
      of
      all covenants, restrictions, easements, rights of way, mortgages, security
      interests, liens, encumbrances and title objections, excepting only those
      matters described on Exhibit
      “C”
      attached
      hereto and the exceptions listed on the deed in which title was vested in Seller
      (collectively, the “Permitted
      Exceptions”).
      At
      Closing title to the Property shall be insurable as such by any reputable title
      insurance company authorized to issue title insurance in the state where the
      Property is located, at such company’s regular rates, pursuant to a standard
      form ALTA owner’s form of policy. 

    

    (B) Within
      thirty (30) days after the date of this Agreement, Purchaser shall obtain from
      Escrowee and shall submit to Seller a commitment to insure title to the
      Property, together with complete and legible copies of all written covenants,
      restrictions, easements, and agreements which are listed as exceptions thereon
      (collectively, the “Title
      Commitment”).
      Concurrently with its submission of the Title Commitment, Purchaser shall notify
      Seller in writing of any exception or matter shown in the Title Commitment
      that
      Purchaser believes is not a Permitted Exception (the “Title
      Objection Notice”).
      If
      Purchaser does not submit the Title Commitment or give the Title Objection
      Notice within the time allowed, then Purchaser shall be deemed to have approved
      all exceptions or matters shown on the Title Commitment and shall accept title
      subject thereto, unless the exception or matter (other than a Permitted
      Exception) does not appear of record or was not shown on the Title Commitment
      on
      the date on which Purchaser submits to Seller the Title Commitment and the
      Title
      Objection Notice.

    

    (C) Notwithstanding
      anything to the contrary contained in Section 5(A) above, if Purchaser gives
      the
      Title Objection Notice within the time allowed, then Seller shall have the
      right, at its option, to defer the Closing Date for a period not exceeding
      thirty (30) days, during which time Seller shall have the right, but not the
      obligation, to remove or otherwise resolve Purchaser’s objections.

    

    
      	 	
              6.

            	
              Seller's
                Representations, Warranties and Covenants.
                

            

    

    

    (A)
      Seller represents and warrants to Purchaser as follows:

    

    (viii) Seller
      is
      a duly organized and validly existing banking corporation under the laws of
      California. Seller has the right, power and authority to enter into this
      Agreement and to convey the Property in accordance with the terms and conditions
      of this Agreement, to engage in the transactions contemplated in this Agreement
      and to perform and observe the terms and provisions hereof.

    

    (ix) Seller
      has taken all necessary action to authorize the execution, delivery and
      performance of this Agreement, and upon the execution and delivery of any
      document to be delivered by Seller on or prior to the Closing, this Agreement
      and such document shall constitute the valid and binding obligation and
      agreement of Seller, enforceable against Seller in accordance with its terms,
      except as enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws of general application affecting
      the
      rights and remedies of creditors.

    

    (x) Neither
      the execution, delivery or performance of this Agreement by Seller, nor
      compliance with the terms and provisions hereof, will result in any breach
      of
      the terms, conditions or provisions of, or conflict with or constitute a default
      under, or result in the creation of any lien, charge or encumbrance upon the
      Property or any portion thereof pursuant to the terms of any indenture, deed
      to
      secure debt, mortgage, deed of trust, note, evidence of indebtedness or any
      other agreement or instrument by which Seller is bound.

    

    (xi) Seller
      has the full legal and equitable title to the Property 

    

    (xii) Seller
      is
      not a party to any management, service, equipment, supply, maintenance or other
      agreement of any kind or nature with respect to or affecting the Property that
      will not be terminated prior to Closing, except the Leases.

    

    (xiii) Seller
      has not entered into any contract or agreement with respect to the occupancy
      of
      the Property or any portion or portions thereof which will be binding on
      Purchaser after Closing. 

    

    (xiv) Seller
      is
      not a party to, nor has granted, any right or option (including any right of
      first refusal or right of first offer) to purchase all or any part of the
      Property or any interest therein. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (xv) Seller
      has not received written notice of any pending suit, action or proceeding,
      which
      (A) if determined adversely to Seller, materially and adversely affects the
      use
      or value of the Property, or (B) questions the validity of this Agreement or
      any
      action taken or to be taken pursuant hereto, or (C) involves condemnation or
      eminent domain proceedings involving the Property or any portion
      thereof.

    

    (xvi) Seller
      has not filed, and has not retained anyone to file, notices of protests against,
      or to commence action to review, real property tax assessments against the
      Property.

     

    (xvii) Seller
      has received no written notice alleging any violations of law (including any
      Environmental Law), municipal or county ordinances, or other legal requirements
      with respect to the Property where such violations remain
      outstanding.

    

    (xviii) Seller
      is
      not a "foreign person" which would subject Purchaser to the withholding tax
      provisions of Section 1445 of the Internal Revenue Code of 1986, as
      amended.

    

    (xix) Seller
      has no employees to whom by virtue of such employment Purchaser will have any
      obligation after the Closing.

    

    If,
      after
      the execution of this Agreement, any event occurs or condition exists that
      renders any of the foregoing representations and warranties untrue or
      misleading, Seller shall promptly notify Purchaser. All such representations
      and
      warranties shall be deemed made by Seller on the date of this Agreement and
      at
      the time of Closing.

    

    
      
        (B) 
          Seller’s
          Covenants and Agreements.
          

      

    

    

    (xx) Leasing
      Arrangements.
      During
      the pendency of this Agreement, Seller will not enter into any lease affecting
      the Property, or modify or amend in any material respect, or terminate, any
      of
      the existing Leases without Purchaser's prior written consent in each instance,
      which consent shall not be unreasonably withheld, delayed or conditioned and
      which shall be deemed given unless withheld by written notice to Seller given
      within three (3) Business Days after Purchaser's receipt of Seller's written
      request therefor, each of which requests shall be accompanied by a copy of
      any
      proposed modification or amendment of an existing Lease or of any new Lease
      that
      Seller wishes to execute between the Effective Date and the Closing Date,
      including, without limitation, a description of any Tenant Inducement Costs
      and
      leasing commissions associated with any proposed renewal or expansion of an
      existing Lease or with any such new Lease. If Purchaser fails to notify Seller
      in writing of its approval or disapproval within said three (3) Business Day
      period, such failure by Purchaser shall be deemed to be the approval of
      Purchaser. At Closing, Purchaser shall reimburse Seller for any Tenant
      Inducement Costs, leasing commissions or other expenses, including reasonable
      attorneys' fees, actually incurred by Seller pursuant to a renewal or expansion
      of any existing Lease or new Lease approved (or deemed approved) by Purchaser
      hereunder.

    

    (xxi) New
      Contracts.
      During
      the pendency of this Agreement, Seller will not enter into any contract, or
      modify, amend, renew or extend any existing contract, that will be an obligation
      affecting the Property or any part thereof subsequent to the Closing without
      Purchaser's prior written consent in each instance (which Purchaser agrees
      not
      to withhold or delay unreasonably), except contracts entered into in the
      ordinary course of business that are terminable without cause (and without
      penalty or premium) on 30 days (or less) notice.

    

    (xxii) Operation
      of Property.
      During
      the pendency of this Agreement, Seller shall continue to operate the Property
      in
      a good and business-like fashion consistent with Seller's past
      practices.

    

    (xxiii) Insurance.
      During
      the pendency of this Agreement, Seller shall, at its expense, continue to
      maintain the insurance policies covering the Improvements which is currently
      in
      force and effect.

    

    7.  Purchaser’s
      Representations, Warranties and Covenants.
      Purchaser represents, warrants, covenants and agrees to and with Seller as
      follows:

    

    (A) Purchaser
      represents and warrants to Seller as follows:

    

    (xxiv) Purchaser
      is a duly organized and validly existing limited partnership under the laws
      of
      the State of Delaware. Purchaser has the right, power and authority to enter
      into this Agreement and to purchase the Property in accordance with the terms
      and conditions of this Agreement, to engage in the transactions contemplated
      in
      this Agreement and to perform and observe the terms and provisions
      hereof.

    

    (xxv) Purchaser
      has taken all necessary action to authorize the execution, delivery and
      performance of this Agreement, and upon the execution and delivery of any
      document to be delivered by Purchaser on or prior to the Closing, this Agreement
      and such document shall constitute the valid and binding obligation and
      agreement of Purchaser, enforceable against Purchaser in accordance with its
      terms, except as enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws of general application affecting
      the
      rights and remedies of creditors.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (xxvi) Neither
      the execution, delivery or performance of this Agreement by Purchaser, nor
      compliance with the terms and provisions hereof, will result in any breach
      of
      the terms, conditions or provisions of, or conflict with or constitute a default
      under the terms of any indenture, deed to secure debt, mortgage, deed of trust,
      note, evidence of indebtedness or any other agreement or instrument by which
      Purchaser is bound.

    

    (xxvii) To
      Purchaser's knowledge, Purchaser has received no written notice that any action
      or proceeding is pending or threatened, which questions the validity of this
      Agreement or any action taken or to be taken pursuant hereto.

    

    (xxviii) Neither
      Purchaser nor any of Purchaser’s respective constituents or affiliates nor any
      of their respective agents acting or benefiting in any capacity in connection
      with the purchase of the Property is in violation of any laws relating to
      terrorism or money laundering, including but not limited to, Executive Order
      No.
      13224 on Terrorist Financing, effective September 23, 2001 (the “Executive
      Order”),
      as
      amended from time to time, and the U.S. Bank Secrecy Act of 1970, as amended
      by
      the uniting and Strengthening American by Providing Appropriate Tools Required
      to Intercept and Obstruct Terrorism Act of 2001, and as otherwise amended from
      time to time (collectively, with the Executive Order, “Anti-Terrorism
      Law”).
      

    

    (xxix) Neither
      Purchaser nor any of Purchaser’s respective constituents or affiliates nor any
      of their respective agents acting or benefiting in any capacity in connection
      with the purchase of the Property is a “Prohibited Person” under the
      Anti-Terrorism Law.

    

    If,
      after
      the execution of this Agreement, any event occurs or condition exists that
      renders any of the foregoing representations and warranties untrue or
      misleading, Purchaser shall promptly notify Seller. All such representations
      and
      warranties shall be deemed made by Purchaser on the date of this Agreement
      and
      at the time of Closing.

    

    (B) Purchaser’s
      Covenants and Agreements.
      

     

    (i) Utilities.
      At
      Closing, Purchaser shall cause all utilities servicing the Property, including
      without limitation, electric, natural gas, telephone and tele-communication
      providers, steam, water, sewer, and any other providers of utility services
      (collectively, the “Utilities”),
      to be
      transferred into an account established by or on behalf of Purchaser and for
      which Seller will have no liability for Utility charges after the Closing Date.
      Seller, at no out-of-pocket expense to Seller, shall reasonably cooperate with
      Purchaser to assist Purchaser’s transfer of the Utilities from Seller to
      Purchaser as of the Closing Date. Purchaser shall be responsible prior to
      Closing to post with the providers of the Utilities any and all deposits,
      letters of credit or other security required to transfer the Utilities to
      Purchaser. PURCHASER
      ACKNOWLEDGES AND UNDERSTANDS THAT SELLER SHALL DIRECT ALL PROVIDERS OF UTILITIES
      TO TERMINATE SERVICE TO THE PROPERTY AS OF THE CLOSING DATE AND PURCHASER’S
      FAILURE TO TRANSFER THE UTILITIES WILL RESULT IN THE INABILITY OF PURCHASER
      AND
      THE TENANTS UNDER THE LEASES TO USE THE UTILITIES, WHICH MAY RESULT IN A DEFAULT
      UNDER THE LEASES. SELLER SHALL HAVE NO LIABILITY TO PURCHASER OR THE TENANTS
      UNDER THE LEASES AS A RESULT OF PURCHASER’S FAILURE TO COMPLY WITH THE
      PROVISIONS OF THIS SECTION 7(B)(i).

    

    8. Condition
      of Property.
      Except
      as otherwise specifically provided in this Agreement, Seller makes no
      representation, promise or guaranty with respect to the condition or character
      of the Property (including without limitation the subsoil condition thereof)
      or
      the use or uses to which the Property may be put. Purchaser acknowledges that
      Purchaser has the right to make the examinations and investigations described
      in
      this Agreement, and that Purchaser is relying on this right in order to satisfy
      itself as to the character and condition of the Property, and is fully satisfied
      with this right. Purchaser further acknowledges that except as otherwise
      specifically provided in this Agreement, Purchaser will be purchasing the
      Property on the basis of its examination and investigation and not in reliance
      on any representation or warranty of Seller or any agent, employee or
      representative of Seller. Purchaser realizes that the Property is being sold
      in
“As Is” condition as of the date of this Agreement, reasonable wear and tear
      excepted.

    

    9. Compliance
      with Laws.
      To
      Seller’s actual knowledge, no notice of violation has been issued against the
      Property and received by Seller under zoning, building, health or fire codes
      during Seller’s period of ownership of the Property. If any such notice or
      communication is received by Seller after the date of this Agreement, Seller
      shall promptly notify Purchaser in writing. When
      the
      phrase “to Seller’s actual knowledge” or similar phrase is used with respect to
      Seller, it shall (i) be limited to the actual knowledge of Chris Sands and
      William Raver only, (ii) be deemed to be the current actual, not implied,
      constructive or imputed, knowledge of such person, as of the times expressly
      indicated only, and without any obligation to make any independent investigation
      of, or any implied duty to investigate, such matters, or to make any inquiry
      of
      any other persons, or to search or to examine any files, records, books,
      correspondence and the like, and (iii) not be construed to refer to the
      knowledge of any other beneficial owner, officer, member, manager, director,
      employee, shareholder or agent of Seller. There shall be no personal liability
      on the part of the individual named above arising out of this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10. Apportionments
      at Closing; Transfer Taxes; Closing Costs.
      The
      following charges, pro-rations and apportionments shall be made on a per diem
      basis between Purchaser and Seller at Closing as of 12:01 A.M. prevailing time
      in the City where the Property is located on the Closing Date on the basis
      of a
      365-day year, with Purchaser deemed the owner of the Property on the entire
      Closing Date:

    

    (A) Apportionments.
      

    

    (i) Real
      Estate Taxes.
      Real
      estate taxes, personal property taxes, and business improvement district
      assessments (if any) against the Property for the year or quarter in which
      Closing is held shall be apportioned on a per diem basis between Purchaser
      and
      Seller as of the date of Closing, and all tax adjustments shall be based on
      the
      fiscal year used by the taxing authority with due allowance made for the maximum
      discount allowable. If Closing occurs at a date when the current year's millage
      is not fixed and the current year's assessment is available, then taxes will
      be
      prorated based on such assessment and the prior year's millage. If the current
      year's assessment is not available, then taxes will be prorated based on the
      prior year's tax. If there are completed improvements on the Land by January
      1st
      of the year of Closing, which improvements were not completed on January 1st
      of
      the prior year, then real estate taxes shall be prorated based upon the prior
      year's millage and at an equitable assessment to be agreed upon by Seller and
      Purchaser. 

     

    (ii) Water
      and Sewer Charges.
      All
      water, sewer and other utility charges assessed against or incurred on or with
      respect to the Property based on the fiscal year used by the assessing
      authority.

    

    (iii) Utility
      Deposits/Letters of Credit.
      Seller
      shall be entitled to any deposits, if any, made with utility companies servicing
      the Property, and, if same are not refundable to Seller without a replacement
      by
      Purchaser, Purchaser shall either (A) deliver the required replacement deposits
      to the utility company on or prior to the Closing, or (B) pay to Seller at
      the
      Closing the amount of such deposits, in which case Seller shall transfer all
      of
      Seller’s right, title and interest to such deposits to Purchaser. Seller shall
      be entitled to the return of any bonds, guarantees or letters of credit posted
      with any governmental authority (the “Guaranty”)
      in
      connection with the Property. If the Guaranty is not refundable prior to the
      Closing Date without a replacement by Purchaser, Purchaser shall deliver the
      required replacement Guaranty to the applicable governmental authority on or
      prior to the Closing Date. If the Guaranty is a cash deposit with the applicable
      governmental entity, Seller shall receive a credit in the amount of such cash
      deposit at the Closing. 

    

    (iv) Assessments.
      If the
      Property is affected by any assessment imposed by any governmental authority
      which is or may become payable in annual installments, then Seller shall pay
      the
      unpaid installments of any such assessment which are due and payable on or
      before the Closing Date and Purchaser shall assume full responsibility for
      the
      payment of all installments which become due and payable after the Closing
      Date.

    

    (v) Such
      other items as are customarily adjusted at a closing for similar property.
      

    

    If
      any of
      the aforesaid prorations cannot be calculated accurately on the Closing Date,
      then the same shall be calculated as soon as reasonably practicable after the
      Closing Date, then
      within ninety (90) days after the Closing, Purchaser and Seller will make a
      further adjustment for such taxes, charges and expenses which may have accrued
      or been incurred prior to the Closing Date, but not collected or paid at that
      date. In addition, within ninety (90) days after the close of the fiscal year(s)
      used in calculating the pass-through to tenants of operating expenses and/or
      common area maintenance costs under the Leases (where such fiscal year(s)
      include(s) the Closing Date), Seller and Purchaser shall, upon the request
      of
      either, re-prorate on a fair and equitable basis in order to adjust for the
      effect of any credits or payments due to or from tenants for periods prior
      to
      the Closing Date. All prorations shall be made based on the number of calendar
      days in such year or month, as the case may be. Either
      party owing the other party a sum of money based on proration(s) calculated
      after the Closing Date shall promptly pay said sum to the other party, together
      with interest thereon at the lesser of (a) ten percent (10%) per annum or (b)
      the maximum lawful rate of interest, from the date the invoice is delivered
      to
      the date of payment, if payment is not made within thirty (30) days after
      delivery of a bill therefor. The
      provisions of this Section shall survive the Closing for a period of one (1)
      year after the Closing Date.

    

    (B)
      Transfer
      Tax/Documentary Stamps.
      Seller
      shall pay Seller’s Transfer Tax Share and Purchaser shall pay Purchaser’s
      Transfer Tax Share of all Transfer Taxes imposed in connection with the Closing
      or the recording of the Deed. 

    

    (C)
      Closing
      Costs.
      

    

    
      	 	
              (i)

            	
              Seller
                shall pay at Closing: 

            

    

    

    a. All
      recording fees due on recording of corrective instruments, if any; 

     

    
      
        b.
          Seller’s
          attorney’s fees and costs; and 

         

      

    

    
      
        c.
          one-half
          of all escrow fees charged by Escrowee, if any. 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    All
      costs
      and expenses to be paid by Seller at Closing shall be disbursed from the balance
      of the Purchase Price payable by Purchaser at Closing and shall reduce the
      net
      cash payable to Seller. 

    

    
      	 	
              (ii)

            	
              Purchaser
                shall pay at or prior to Closing: 

            

    

    

    a.
      all
      recording fees due on the Deed; 

     

    b. all
      title
      examination fees, title insurance premiums (including without limitation
      premiums for endorsements and extended coverage);

     

    c.
      the
      cost
      of any survey obtained by Purchaser; 

     

    d. all
      costs
      and expenses of any financing of Purchaser's acquisition of the Property
      (including, without limitation, all intangible taxes, documentary stamp taxes
      and recording and filing fees due on any financing document, and lender's
      attorneys' fees and expenses); 

     

    e.
      Purchaser’s
      attorney’s fees and costs; and 

     

    f.
      one-half
      of all escrow fees charged by Escrowee, if any.

    

    11. Waiver
      of Tender.
      Tender
      at the time of Closing of an executed Deed by Seller and the balance of the
      Purchase Price by Purchaser are hereby mutually waived, but nothing herein
      contained shall be construed as to relieve Seller from the obligation to deliver
      the Deed or to relieve Purchaser from the concurrent obligation to pay the
      balance of the Purchase Price at Closing.

    

    12. Time
      of the Essence.
      Time
      wherever specified herein for satisfaction of conditions or performance of
      obligations by Seller or Purchaser is of the essence of this
      Agreement.

    

    13. Possession
      and Condition. It
      is
      understood and agreed that Purchaser has either inspected the Property during
      the Due Diligence Period, or has waived the right to do so and that the same
      is
      being purchased by Purchaser in its present physical “as is” condition. At
      Closing, Seller shall transfer to Purchaser possession of the Property in
      substantially the same condition the Property is in on the date hereof,
      reasonable wear and tear excepted.

    

    14. Purchaser's
      Default.
      If at
      the time of Closing Purchaser is in default in the observance or performance
      of
      Purchaser’s obligations hereunder, then Seller shall have the right, as Seller's
      sole remedy, to terminate this Agreement and retain the Deposit as liquidated
      damages and thereafter the parties shall have no further obligations hereunder,
      except as otherwise expressly provided in this Agreement. The
      parties acknowledge that the aforesaid liquidated damages are reasonable and
      do
      not constitute a penalty and are being agreed upon due to the difficulty of
      calculating the actual amount of damages that Seller might sustain in the event
      of a default by Purchaser and termination of this Agreement.

    

    15. Seller's
      Default.
      If
      Purchaser complies with all of Purchaser’s obligations under this Agreement, and
      at the time of Closing, Seller is in default in the observance or performance
      of
      Seller’s obligations hereunder, including without limitation Seller’s obligation
      to deliver title in accordance with Section
      5
      above,
      then upon
      written notice to Seller (the “Default Notice”), Purchaser
      shall have the right, as Purchaser’s sole remedy, to either (i) terminate this
      Agreement and receive a return of the Deposit, and
      thereafter the parties shall have no further obligations hereunder, except
      as
      otherwise expressly provided in this Agreement,
      (ii)
      take such title to the Property as Seller can give without adjustment of the
      Purchase Price or (iii) enforce the obligations of Seller hereunder by specific
      performance; provided,
      however, that any such enforcement action shall be commenced by Purchaser by
      the
      filing of a complaint for specific performance not later than ninety (90) days
      following the date of Purchaser’s Default Notice to Seller.

    

    16. Termination.
      Whenever this Agreement specifies a right of Purchaser or Seller to terminate
      this Agreement, such right shall be exercisable only by the exercising party
      giving written notice thereof to the other party. If Seller or Purchaser shall
      exercise any such termination right, other than Seller's termination right
      under
Section
      14
      above
      because of a default by Purchaser, then promptly following such exercise, the
      Deposit shall be refunded to Purchaser, and upon such termination all further
      rights and obligations of the parties hereunder shall terminate,
      except
      as
      otherwise expressly provided in this Agreement.

    

    17. Casualty.
      If the
      Property, or a material part thereof, is destroyed, damaged or lost by fire
      or
      other casualty or cause prior to Closing, Purchaser shall have the right to
      terminate this Agreement. If Purchaser shall not elect to terminate this
      Agreement, then at Closing Seller shall pay to Purchaser all money theretofore
      paid to Seller by reason of such fire, casualty or cause (less any amounts
      expended by Seller to secure or restore the Property), and shall assign to
      Purchaser all of Seller's claims and rights with respect to such fire, casualty
      or cause, including without limitation all rights and claims under all
      applicable policies of insurance, and shall pay to Purchaser all sums which
      may
      have been paid to Seller by reason thereof. Notwithstanding anything to the
      contrary contained in this Section
      17,
      Seller
      shall be entitled to retain any and all proceeds of insurance which are
      compensatory for any insured casualty to the Property which occurred prior
      to
      the date of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    18. Condemnation.
      If the
      Property, or any material part thereof, is taken by eminent domain prior to
      Closing, Purchaser may terminate this Agreement by giving notice to
      Seller.

    

    19. Notices.
      All
      notices (including without limitation approvals, consents and exercises of
      rights or options) required by or relating to this Agreement shall be in writing
      and shall either be (i) hand delivered, (ii) delivered by overnight courier
      service or (iii) mailed United States registered or certified mail, return
      receipt requested, postage prepaid, to the other respective party at its address
      above set forth, or at such other address as such other party shall designate
      by
      notice, and shall be effective when delivered to such address.

    

    20. Brokers.
      Seller
      and Purchaser each represent to the other that neither of them has dealt with
      any broker or other person who may be entitled to a real estate broker’s
      commission or a finder’s fee in connection with this transaction. Seller and
      Purchaser each shall indemnify and hold the other harmless from and against
      any
      claim for broker’s commission or finder’s fee asserted by a person claiming by
      or through them. This indemnification shall survive Closing.

    

    21. Whole
      Agreement; Amendments.
      This
      Agreement sets forth all of the agreements, representations, warranties and
      conditions of the parties hereto with respect to the subject matter hereof,
      and
      supersedes all prior or contemporaneous agreements, representations, warranties
      and conditions. The exhibits, schedules and riders referred to above constitute
      parts of this Agreement. No alteration, amendment, modification or waiver of
      any
      of the terms or provisions hereof, and no future representation or warranty
      by
      either party with respect to this transaction, shall be valid unless the same
      be
      in writing and signed by the party against whom enforcement of same is
      sought.

    

    22. Captions;
      Pronouns.
      The
      captions of the sections of this Agreement are for convenience only and have
      no
      meaning with respect to this Agreement or the rights or obligations of the
      parties hereto. Unless the context clearly indicates a contrary intent or unless
      otherwise specifically provided herein: “person”, as used herein, includes an
      individual, corporation, partnership, limited liability company, trust,
      unincorporated association, government, governmental authority, or other entity;
      “Property” includes each portion of the Property and each estate and interest
      therein; “hereof”, “herein” and “hereunder” and other words of similar import
      refer to this Agreement as a whole; “Agreement” includes these presents as
      supplemented or amended from time to time by written instrument(s) entered
      into
      by Seller and Purchaser; “Purchaser” includes Purchaser's heirs, successors and
      assigns; “Seller” includes Seller's successors and assigns; and “parties” means
      Purchaser and Seller. Whenever the context may require, any pronoun used herein
      shall include the corresponding masculine, feminine or neuter forms, and the
      singular form of pronouns or nouns shall include the plural and vice versa.
      

    

    23. Governing
      Law.
      The
      laws of the state where the Property is located shall govern this Agreement
      and
      all issues arising hereunder.

    

    24. Assignment.
      Purchaser may at its option assign this Agreement without the consent of Seller,
      provided
      Purchaser shall give Seller prior written notice of the same.
      No
      assignment of this Agreement shall release Purchaser of its obligations
      hereunder. 

    

    25. Counterparts. This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, and all of which taken together shall constitute a single agreement,
      with the same effect as if the signatures thereto and hereto were upon the
      same
      instrument. For purposes of this Agreement, a telecopy of an executed
      counterpart shall constitute an original. Any party delivering an executed
      counterpart of this Agreement by telecopier shall also deliver an original
      executed counterpart of this Agreement, but the failure to deliver an originally
      executed counterpart shall not affect the validity of this
      Agreement.

    

    26. Drafts
      Not an Offer to Enter into a Legally Binding Contract.
      The
      parties hereto agree that the submission of a draft of this Agreement by one
      party to another is not intended by either party to be an offer to enter into
      a
      legally binding contract with respect to the purchase and sale of the Property.
      The parties shall be legally bound with respect to the purchase and sale of
      the
      Property pursuant to the terms of this Agreement only if and when the parties
      have been able to negotiate all of the terms and provisions of this Agreement
      in
      a manner acceptable to each of the parties in their respective sole discretion,
      including, without limitation, all of the Exhibits, Schedules and Riders hereto,
      and each of Seller and Purchaser have fully executed and delivered to each
      other
      a counterpart of this Agreement, including, without limitation, all Exhibits,
      Schedules and Riders hereto.

    

    27. Seller’s
      Limited Liability.
      It is
      hereby expressly agreed that any liability of Seller arising hereunder, for
      any
      reason whatsoever, shall be limited to Seller’s interest in and to the Property
      and the proceeds thereof. It is further hereby expressly agreed that in no
      event
      shall any member, manager, officer, trustee, director, shareholder, employee,
      agent or representative of Seller have any personal liability in connection
      with
      this Agreement or the transaction envisioned herein. The provisions of this
      Section 27 shall survive Closing or any termination of this
      Agreement.

    

    28. No
      Recording.
      Neither
      this Agreement nor any memorandum or short form thereof may be recorded by
      Purchaser. A violation of this prohibition shall constitute a material breach
      by
      Purchaser of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    29. Severability.
      If any
      provision in this Agreement, or its application to any person or circumstance,
      is held to be invalid or unenforceable to any extent, that holding shall not
      affect the remainder of this Agreement or the application of that provision
      to
      persons or circumstances other than that to which it was held invalid or
      unenforceable.

    

    30. No
      Partnership.
      Nothing
      contained in this Agreement shall be construed to create a partnership or joint
      venture between the parties or their successors in interest.

    

    31. Confidentiality/No
      Public Disclosure.

    

    (a) If
      required by Seller, Purchaser shall execute a confidentiality agreement
      respecting the transaction contemplated by this Agreement and such due diligence
      materials as are made available to Purchaser.

    

    (b) Except
      as
      may be required in order to comply with a court order or a governmental
      requirement, neither Purchaser nor Seller shall publicly disclose by written
      press release, public announcement or otherwise, the financial terms of this
      transaction without the prior written approval of the other party, provided,
      however, that, notwithstanding the foregoing, either party shall be permitted
      to
      disclose the financial terms of the transaction to any of its attorneys,
      accountants, agents, consultants, advisors, investors and/or lenders who have
      agreed to keep such information confidential, and nothing contained herein
      shall
      prohibit either party from making any public announcement (including without
      limitation placing a notice on a website of such party and/or an affiliate
      thereof) or issuing any written press release to announce the occurrence of
      Closing and the purchase of the Property by Purchaser.

    

    (c) The
      provisions of this Section 31 shall survive Closing or any termination of this
      Agreement.

    

    32. Access
      to Records Following Closing.
      Purchaser agrees that for a period of one (1) year following the Closing, Seller
      shall have the right during regular business hours, on five (5) days' written
      notice to Purchaser, to examine and review at Purchaser's office (or, at
      Purchaser's election, at the Property), the books and records relating to the
      ownership and operation of the Property which were delivered by Seller to
      Purchaser at the Closing. Likewise, Seller agrees that for a period of one
      (1)
      year following the Closing, Purchaser shall have the right during regular
      business hours, on five (5) days' written notice to Seller, to examine and
      review at Seller's office, all books, records and files, if any, retained by
      Seller relating to the ownership and operation of the Property by Seller prior
      to the Closing. The provisions of this Section shall survive the Closing for
      a
      period of one (1) year after the Closing Date.

    

    33. Waiver
      of Trial by Jury.
      EACH
      PARTY HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY
      ACTION BROUGHT ON, UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS
      AGREEMENT OR ANY OF THE DOCUMENTS AND/OR INSTRUMENTS EXECUTED IN CONNECTION
      HEREWITH, THE PROPERTY OR ANY CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER
      ACTIONS PERTAINING HERETO OR TO ANY OF THE FOREGOING.

     

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement the date and year
      first above written.

     

    
      	 	 	 
	Witness:	SELLER:
	 	 
	 	HERITAGE OAKS BANK
	
              
 	 
	 	By:  	
            
	
              

            	
              
Name:
	 	Title:

       

      
        
          	 	 	 
	Witness:	PURCHASER:
	 	 
	
                	
                  FIRST STATES GROUP, L.P.

                  A Delaware limited partnership

                
	
                  
 	 
	 	By:  	First States Group, LLC
	
                  

                	Its general
                  partner

        

        
          	
                	By:  	
                
	 	
                  
Name:
	 	Title:

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    Property
      List

    

    
      	
              Property
                Address

            	 	 	
              City,
                State

            	 	 	
              Square
                Feet

            	 	 	
              Purchase
                Price

            	 	 	
              Starting
                Annual Rent

            	 
	
              545
                12th Street

            	 	 	
              Paso
                Robles, CA

            	 	 	
              9,095

            	 	
              $

            	
              2,837,061

            	 	
              $

            	
              198,594

            	 
	
              1222-1224
                Vine Street

            	 	 	
              Paso
                Robles, CA

            	 	 	
              19,757

            	 	
              $

            	
              6,496,139

            	 	
              $

            	
              454,730

            	 
	
              1255
                E. Grande Ave.

            	 	 	
              Arroyo
                Grande, CA

            	 	 	
              4,017

            	 	
              $

            	
              1,320,797

            	 	
              $

            	
              92,456

            	 
	
              2339
                S. Broadway

            	 	 	
              Santa
                Maria, CA

            	 	 	
              5,492

            	 	
              $

            	
              2,156,002

            	 	
              $

            	
              150,920

            	 
	
               

            	 	 	
              
              

            	 	 	
              38,361

            	 	
              $

            	
              12,810,000

            	 	
              $

            	
              896,700

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

    

    Escrow
      Agreement

     

    CHICAGO
      TITLE INSURANCE COMPANY (“Escrowee”)
      agrees
      to hold in escrow pursuant to this Escrow Agreement (this “Escrow
      Agreement”),
      the
      sum of $250,000 (the “Deposit”)
      to be
      deposited by FIRST STATES GROUP, L.P., a Delaware limited partnership
      (“Purchaser”)
      pursuant to a certain Purchase and Sale Agreement dated May ___, 2007 (the
      “Agreement”),
      among
      Purchaser and HERITAGE OAKS BANK (“Seller”),
      the
      provisions of which (including, without limitation, the defined terms) are
      hereby incorporated herein by reference. The Deposit shall be paid to Seller
      by
      Escrowee at the time of Closing under the Agreement, or if Closing does not
      take
      place, distributed in accordance with the terms of the Agreement. Escrowee
      shall, immediately upon receipt of the Deposit, deposit same in an interest
      bearing, money market type escrow account with a federally insured bank or
      savings and loan association. 

    

    All
      interest which shall accrue on the Deposit shall be credited against the
      Purchase Price, if Closing occurs, and if Closing does not occur, shall be
      paid
      to whichever party to the Agreement is entitled to receive the Deposit. Escrowee
      shall pay such interest to such party contemporaneously with Escrowee's payment
      of the Deposit. 

    

    Seller
      and Purchaser agree that Escrowee is an escrow holder only and is merely
      responsible for the safekeeping of the Deposit and interest and shall not be
      required to determine questions of fact or law. If Escrowee shall receive notice
      of a dispute as to the disposition of the Deposit or the interest, then Escrowee
      shall not distribute the Deposit or interest except in accordance with written
      instructions signed by both Purchaser and Seller. Pending resolution of any
      such
      dispute, Escrowee is authorized to pay the Deposit and interest into court.
      If
      Escrowee pays the Deposit and interest into court, it shall be discharged from
      all further obligations hereunder.

    

    The
      laws
      of the state where the Property is located shall govern this Escrow
      Agreement.

     

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, Escrowee, Seller and Purchaser, for valuable consideration,
      each intending to be legally bound and to bind their respective successors
      and
      assigns, have caused this Escrow Agreement to be executed and delivered as
      of
      ____________, 2007.

     

    
      
        	 	 	 
	Witness:	ESCROWEE:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	
                
 	 
	 	By:  	
              
	
                

              	
                
Name:
	 	Title:

         

        
          
            	 	 	 
	Witness:	SELLER:
	 	 
	
                  	
                    HERITAGE OAKS BANK

                  
	
                    
 	 
	 	By:  	
                  
	
                    

                  	
                    
                      

                    

                    Name:

                    Title:

                  

          

          
            	Witness:	PURCHASER:
	 	 	 
	 	
                    FIRST
                      STATES GROUP, L.P.

                    A
                      Delaware limited partnership

                  
	 	 	 
	
                  	By:  	First States Group, LLC
	 	Its general partner
	 	
                  

          

        

      

      

        
          	
                	By:  	
                
	 	
                  
Name:
	 	
                  Title:
                    Executive Vice
                    President

                

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      C

    

    Permitted
      Exceptions

    

    
      	1.	
              Current
                real estate taxes which are not yet a lien against the
                Property.

            

    

     

    
      	2.	
              Existing
                zoning laws, ordinances and regulations and other laws, ordinances
                and
                 regulations
                respecting the Property.

            

    

     

    
      	3.	
              Assessments
                for improvements begun or completed after the date of this
                Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      D

    

    Form
      of Lease

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Due
      Diligence Rider

    

    The
      following provisions are hereby added to the terms and provisions of the
      Purchase and Sale Agreement dated May 11, 2007, by and between FIRST STATES
      GROUP, L.P., as Purchaser, and HERITAGE OAKS BANK, as Seller (the “Agreement”).
      In the event of a conflict between the terms of this Rider and the terms of
      the
      Agreement, the terms of this Rider shall control. Unless otherwise defined
      in
      this Rider, each capitalized term used in this Rider shall have the meaning
      assigned to it in the Agreement. As hereinafter used in this Rider, the terms
      “the Agreement” or "this Agreement" shall mean the Agreement, as modified by
      this Rider.

    

    1. Due
      Diligence:

    

    (A) 
      During
      the Due Diligence Period, Purchaser or Purchaser's representative shall have
      the
      right, at its sole risk and expense, to conduct an inspection and examination
      of
      the Property and all matters (including environmental and land use matters)
      relating to the Property as Purchaser shall require, other than title
      examination which shall be governed under Paragraph 5 of the Agreement. All
      inspection fees, appraisal fees, engineering fees, legal costs, and other
      expenses of any kind incurred by Purchaser relating to such due diligence will
      be solely Purchaser's expense. Seller shall cooperate with Purchaser in all
      reasonable respects at no cost to Seller. In conducting any due diligence
      hereunder, Purchaser will treat, and will require any representative of
      Purchaser to treat, all information obtained by Purchaser pursuant to the terms
      of this Agreement as strictly confidential. Although Purchaser may search the
      applicable public records in connection with the inspections and examinations
      referred to above, or in order to ascertain or confirm the quality of title
      to
      the Property, Purchaser shall not under any circumstances cause the Property
      to
      be inspected by any governmental authority prior to Closing. Purchaser agrees
      to
      indemnify and hold Seller, tenants, and their contractors, agents and employees
      harmless from any and all injuries, losses, liens, claims, judgments,
      liabilities, costs, expenses or damages (including reasonable attorneys' fees
      and court costs) sustained by or threatened against Seller which result from
      or
      arise out of any due diligence by Purchaser or its representatives pursuant
      to
      this Rider. 

    

    (B) In
      the
      event Purchaser determines as a result of the foregoing due diligence that
      it
      does not desire to proceed with the purchase of the Property, Purchaser, in
      Purchaser’s sole discretion, may elect to terminate this Agreement by delivering
      to Seller written notice of such termination prior to the expiration of the
      Due
      Diligence Period, whereupon the parties shall have no further rights or
      obligations hereunder, and Escrowee shall return the Deposit to Purchaser.
      Unless requested by Seller in writing, Purchaser shall not disclose or otherwise
      release to Seller copies of any reports, test results, inspections or other
      due
      diligence materials produced or received by Purchaser as a result of Purchaser’s
      inspection and investigation of the Property. 

    

    (C) If
      Purchaser does not inspect and examine the Property within the time allowed,
      or
      fails to cancel this Agreement within the time allowed, Purchaser waives and
      gives up the right to cancel this Agreement under the preceding subparagraph
      (B).

    

    (D) Within
      five (5) days of the date the fully executed Agreement is delivered to
      Purchaser, Seller will deliver to Purchaser copies of (i) the title insurance
      commitment obtained when Seller acquired the Property, (ii) Seller’s ALTA/ACSM
      survey of the Property, if any, (iii) the Phase I environmental assessment
      of
      the Property obtained by Seller, if any, and (iv) if applicable, the
      Leases.

    

    (E) The
      provisions of this Rider, including, without limitation, the indemnity
      obligations of Purchaser, shall survive Closing or any termination of the
      Agreement.

    

    2. Right
      of Entry:

    

    (A) Seller
      grants Purchaser the right, at Purchaser’s own risk and expense, to enter upon
      the Property during regular business hours during the Due Diligence Period
      for
      the purpose of making surveys, engineering studies, and non-invasive
      environmental assessments of the Property which Purchaser may deem
      necessary.

    

    (B) Purchaser
      shall cause minimum disturbance to the Property, shall return the Property
      to
      the same condition that existed prior to such entry and shall indemnify and
      save
      Seller harmless from and against all loss, costs, liability, and expense,
      including without limitation reasonable attorneys’ fees, incurred or suffered by
      Seller as a result of such entry. Notwithstanding the foregoing, prior to entry
      upon the Property, Purchaser shall obtain and shall cause its contractors to
      obtain, public liability and property damage insurance insuring Purchaser
      against any liability arising out of any entry or inspections of the Property
      pursuant to the provisions hereof. Purchaser shall repair any damage to the
      Property caused by Purchaser, its employees, agents and contractors with respect
      to such inspections, testings and inquiries.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    California
      Rider

    

    The
      following provisions are hereby added to the terms and provisions of the
      Purchase and Sale Agreement dated May 11, 2007, by and between FIRST STATES
      GROUP, L.P., a Delaware limited partnership, as Purchaser, and HERITAGE OAKS
      BANK, a California banking corporation, as Seller (the “Agreement”). In the
      event of a conflict between the terms of this Rider and the terms of the
      Agreement, the terms of this Rider shall control. Unless otherwise defined
      in
      this Rider, each capitalized term used in this Rider shall have the meaning
      assigned to it in the Agreement. As hereinafter used in this Rider, the terms
      “the Agreement” or "this Agreement" shall mean the Agreement, as modified by
      this Rider.

    

    1. The
      first
      sentence of Section 4(A) of the Agreement is hereby deleted in its entirety
      and
      replaced with the following:

    

    “(A) The
      closing of the conveyance of the Property (“Closing”) is the meeting at which
      the Seller transfers ownership of the Property by grant deed (the “Deed”), and
      the Purchaser pays the remainder of the Purchase Price.”

     

    2. The
      last
      sentence of Section 5(A) of the Agreement is hereby deleted in its entirety
      and
      replaced with the following:

    

    “At
      Closing title to the Property shall be insurable as such by any reputable title
      insurance company authorized to issue title insurance in the state where the
      Property is located, at such company’s regular rates, pursuant to a standard
      form ALTA or CLTA owner’s form of policy.”

     

    3. The
      following provision is hereby added as Section 8(A) of the
      Agreement:

    

    “(A) Notwithstanding
      anything to the contrary contained in this Section, not later than ten (10)
      days
      prior to the expiration of the Due Diligence Period, Seller shall deliver to
      Purchaser a report detailing the natural hazards affecting the property prepared
      by an independent third party pursuant to California Civil Code
§1102.4.”

     

    4. Section
      14 of the Agreement is hereby deleted in its entirety and replaced with the
      following:

    

    “14. LIQUIDATED
      DAMAGES AND LIMITATIONS OF REMEDIES FOR PURCHASER’S BREACH.
      IF
      PURCHASER IN BREACH OF THIS AGREEMENT FAILS TO CLOSE, THEN UPON WRITTEN NOTICE
      OF TERMINATION (A “TERMINATION NOTICE”) FROM SELLER TO PURCHASER AND ESCROWEE,
      THIS AGREEMENT SHALL TERMINATE (EXCEPT FOR THIS SECTION AND PURCHASER’S
      OBLIGATIONS PURSUANT TO SECTION 20). THE PARTIES ACKNOWLEDGE AND AGREE BY
      INITIALING THIS SECTION 14 THAT:

    

    IF
      PURCHASER FAILS TO CLOSE IN BREACH OF THIS AGREEMENT, SELLER WILL INCUR CERTAIN
      COSTS AND OTHER DAMAGES IN AN AMOUNT THAT WOULD BE EXTREMELY DIFFICULT OR
      IMPRACTICAL TO ASCERTAIN. THE DEPOSIT, TOGETHER WITH ALL INTEREST EARNED
      THEREON, BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES WHICH THE PARTIES
      ESTIMATE MAY BE SUFFERED BY SELLER BY REASON OF SUCH A FAILURE OF CLOSING TO
      OCCUR, AND THE DEPOSIT AND INTEREST IS NOT AN AMOUNT WHICH IS UNREASONABLE
      UNDER
      THE CIRCUMSTANCES EXISTING AT THE TIME THIS AGREEMENT IS MADE (PURCHASER
      ACKNOWLEDGING AND AGREEING THAT PURCHASER HAS FULLY CONSIDERED THE PROVISIONS
      OF
      THIS SECTION 14 AND SUCH CIRCUMSTANCES PRIOR TO ENTERING INTO THIS AGREEMENT
      AND
      HAS CONSULTED WITH PURCHASER’S COUNSEL WITH RESPECT THERETO); ANDUPON DELIVERY
      TO ESCROWEE BY SELLER OF A PROPERLY GIVEN TERMINATION NOTICE, SELLER SHALL
      BE
      ENTITLED TO RECEIVE AND RETAIN THE DEPOSIT, TOGETHER WITH ALL INTEREST EARNED
      THEREON, AS LIQUIDATED DAMAGES, WHICH DAMAGES SHALL BE SELLER’S SOLE REMEDY
      HEREUNDER IF PURCHASER IN BREACH OF THIS AGREEMENT FAILS TO
      CLOSE, AND
      PURCHASER SHALL FORTHWITH INSTRUCT ESCROWEE TO RELEASE THE DEPOSIT AND ALL
      INTEREST EARNED THEREON TO SELLER AND TO RETURN TO SELLER ALL DOCUMENTS AND
      INSTRUMENTS THERETOFORE DEPOSITED INTO THE ESCROW BY OR ON BEHALF OF THEM;
      PROVIDED, HOWEVER, THAT SELLER SHALL BE ENTITLED TO RECOVER FROM PURCHASER
      ATTORNEYS’ FEES AND OTHER DIRECT OUT-OF-POCKET COSTS INCURRED BY THEM IN
      CONNECTION WITH THE ENFORCEMENT OR DEFENSE OF OBLIGATIONS CONTAINED IN THIS
      SECTION 14.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      FURTHER EVIDENCE OF THEIR AGREEMENT TO THIS LIQUIDATED DAMAGES PROVISION, SELLER
      AND PURCHASER HAVE INITIALED BELOW:

    

    SELLER:__________    PURCHASER:____________ ”

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