Document:

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                                                                   EXHIBIT 10.21

                   MASTER RESTRUCTURING AND PURCHASE AGREEMENT

                                      AMONG

                             DAILY GAZETTE COMPANY,

                             MEDIANEWS GROUP, INC.,

                          CHARLESTON PUBLISHING COMPANY

                                       AND

                              CHARLESTON NEWSPAPERS

                             DATED AS OF MAY 7, 2004

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                                TABLE OF CONTENTS

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ARTICLE I DEFINITIONS..........................................................................................      1

         Section 1.1. Certain Definitions......................................................................      1

ARTICLE II RESTRUCTURING; CLOSING..............................................................................      3

         Section 2.1. Restructuring Transactions...............................................................      3
         Section 2.2. Purchase Price...........................................................................      5
         Section 2.3. Assumption of Liabilities................................................................      6
         Section 2.4. Tax Matters..............................................................................      7
         Section 2.5. The Closing; Deliveries..................................................................      8

ARTICLE III CONDITIONS TO CLOSINGS.............................................................................      8

         Section 3.1. Conditions of DGC to Closing.............................................................      8
         Section 3.2. Conditions of CPC and MNG to Closing.....................................................      9

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF CPC AND MNG.......................................................     10

         Section 4.1. Organization, Qualification, Etc.........................................................     10
         Section 4.2. Corporate Authority......................................................................     10
         Section 4.3. No Conflict..............................................................................     11
         Section 4.4. No Consents..............................................................................     11
         Section 4.5. Assets and Liens.........................................................................     11
         Section 4.6. Covenants of CPC Under Letter of Intent..................................................     12

ARTICLE V REPRESENTATIONS AND WARRANTIES OF DGC................................................................     12

         Section 5.1. Organization, Qualification, Etc.........................................................     12
         Section 5.2. Corporate Authority......................................................................     12
         Section 5.3. No Conflict..............................................................................     13
         Section 5.4. No Consents..............................................................................     13

ARTICLE VI COVENANTS AND AGREEMENTS............................................................................     13

         Section 6.1  Regulatory Approvals and Newspaper Preservation Act Notice...............................     13
         Section 6.2  Cooperation..............................................................................     14
         Section 6.3  Non-Disclosure...........................................................................     14
         Section 6.4  MNG Guaranty.............................................................................     14

ARTICLE VII INDEMNIFICATION....................................................................................     14

         Section 7.1. Indemnification by CPC and MNG...........................................................     14
         Section 7.2  Indemnification by DGC...................................................................     14
         Section 7.3  Survival.................................................................................     15
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                                TABLE OF CONTENTS
                                  (continued)

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         Section 7.4 Brokers' Fees.............................................................................     15

ARTICLE VIII MISCELLANEOUS.....................................................................................     15

         Section 8.1. Assignment...............................................................................     15
         Section 8.2. Entire Agreement.........................................................................     15
         Section 8.3. Transactional Costs/Expenses.............................................................     16
         Section 8.4. Waiver, Amendment, Etc...................................................................     16
         Section 8.5. Binding Agreement; No Third Party Beneficiaries..........................................     16
         Section 8.6. Notices..................................................................................     16
         Section 8.7. Governing Law............................................................................     17
         Section 8.8. Severability.............................................................................     17
         Section 8.9  Rights Cumulative........................................................................     17
         Section 8.10 Further Assurances.......................................................................     17
         Section 8.11.Table of Contents; Headings..............................................................     18
         Section 8.12 Counterparts.............................................................................     18
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                   MASTER RESTRUCTURING AND PURCHASE AGREEMENT

      MASTER RESTRUCTURING AND PURCHASE AGREEMENT, dated as of May 7, 2004,
among DAILY GAZETTE COMPANY, a corporation organized under the laws of the State
of West Virginia ("DGC"); MEDIANEWS GROUP, INC., a corporation organized under
the laws of the State of Delaware ("MNG"); CHARLESTON PUBLISHING COMPANY, a
corporation organized under the laws of the State of Delaware ("CPC"); and
CHARLESTON NEWSPAPERS, an unincorporated joint venture under the laws of the
State of West Virginia (the "JOINT VENTURE").

                                    RECITALS

      WHEREAS, DGC and CPC, as assignee of MNG (then known as Garden State
Newspapers, Inc.) previously entered into an Amended and Restated Joint Venture
Agreement dated August 23, 1998 (the "EXISTING JOA"), pursuant to which the
Joint Venture has managed and operated the Newspapers (as defined in the
succeeding recital), except for the news and editorial departments of each
Newspaper, which have remained separate and independent;

      WHEREAS, prior to the date hereof DGC has published The Charleston
Gazette, a morning daily newspaper Monday through Saturday, and The Sunday
Gazette-Mail on Sunday, and CPC has published The Charleston Daily Mail, an
afternoon daily newspaper Monday through Friday except for legal holidays, all
in Charleston, West Virginia (each a "NEWSPAPER" and collectively the
"NEWSPAPERS"); and

      WHEREAS, DGC, MNG and CPC entered into a Letter of Intent on February 24,
2004 (the "LETTER OF INTENT"), pursuant to which they agreed in principle to
restructure the ownership of the Joint Venture and certain related assets and to
amend the Existing JOA, and they now desire to memorialize their agreement in a
definitive document;

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements set forth herein, each of DGC, MNG, CPC and the Joint Venture
(each a "PARTY" and collectively the "PARTIES") agrees as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Section 1.1. Certain Definitions. As used in this Agreement, the following
terms shall have the meanings specified below. Certain other terms are defined
elsewhere in this Agreement and shall have the meanings so specified.

      "ABRY" means, collectively, ABRY Mezzanine Partners, L.P., a limited
partnership organized under the laws of the State of Delaware, and ABRY
Investment Partnership, L.P., a limited partnership organized under the laws of
the State of Delaware.

      "ABRY-CO" means ABRY/Charleston, Inc., a corporation newly formed under
the laws of the State of Delaware, and which is wholly-owned by ABRY.

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      "AGREEMENT" means this Master Restructuring and Purchase Agreement,
including the Exhibits and Schedules attached hereto, as it may be amended from
time to time.

      "AMENDED JOA" means the Amended and Restated Joint Venture Agreement to be
executed and delivered at the Closing by DGC, DGHC, the Limited Partnership,
DGPC, CPC and the Joint Venture.

      "BUSINESS DAY" means any day other than a day on which commercial banks in
Charleston, West Virginia are required or authorized by law to be closed.

      "CLOSING" means the closing of the transactions contemplated by this
Agreement, to be held on the date and at the place fixed in accordance with
Section 2.5.

      "CLOSING DATE" means the date of the Closing.

      "CODE" means the Internal Revenue Code of 1986, as amended, and the rules
and regulations promulgated thereunder.

      "DGHC" means Daily Gazette Holding Company, LLC, a limited liability
company newly formed by DGC under the laws of the State of Delaware, which is
governed by the Limited Liability Company Operating Agreement for DGHC dated as
of May 7, 2004 and whose sole member is DGC.

      "DGPC" means Daily Gazette Publishing Company, LLC, a limited liability
company newly formed by DGHC under the laws of the State of Delaware, which is
governed by the Limited Liability Company Operating Agreement for DGPC dated as
of May 7, 2004 and whose initial sole member will be DGHC and whose sole member
after giving effect to the Closing transactions will be the Limited Partnership.

      "HSR ACT" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

      "LIEN" means any liability and any lien, pledge, claim, encumbrance,
mortgage or security interest in real or personal property.

      "LIMITED PARTNERSHIP" means Charleston Newspapers Holdings, L.P., a
limited partnership newly formed by DGHC, CPC and ABRY-Co under the laws of the
State of Delaware, which will be governed by the Partnership Agreement and whose
sole general partner is DGHC and whose sole limited partners are CPC and
ABRY-Co.

      "NPA" means the Newspaper Preservation Act, as amended.

      "PARTNERSHIP AGREEMENT" means the Limited Partnership Agreement for
Charleston Newspapers Holdings, L.P. to be entered into at the Closing by DGHC,
as general partner, and CPC and ABRY-Co, as limited partners.

      "TRANSACTION DOCUMENTS" means this Agreement, the Amended JOA, the
Partnership Agreement and all other documents and instruments delivered pursuant
to this Agreement.

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                                   ARTICLE II

                             RESTRUCTURING; CLOSING

      Section 2.1. Restructuring Transactions. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing, the Parties shall take
the following actions. All of the following actions to occur on the Closing Date
shall be deemed to have occurred at the Closing, and none of such actions shall
be effective unless all of such actions have occurred.

            (a) Contribution of DGC's Assets. At the Closing, DGC shall
      transfer, assign and contribute to DGHC, all of its assets, including the
      mastheads of The Charleston Gazette and The Sunday Gazette-Mail and the
      other related intangible assets, all of its cash and other liquid assets,
      and the entire DGC Joint Venture Interest. At the Closing, immediately
      thereafter, DGHC shall, in turn, transfer, assign and contribute to DGPC,
      the entire DGC Joint Venture Interest.

            The term "DGC JOINT VENTURE INTEREST" means all of DGC's rights,
      claims and interests under the Existing JOA and in the Joint Venture,
      including, but not limited to, DGC's entire 50% general partnership
      interest and joint venture interest in the Joint Venture and all rights
      relating thereto and all of DGC's rights and interests in all of the
      assets of the Joint Venture.

            (b) Partnership Agreement. DGHC, as general partner, and CPC and
      ABRY-Co, as limited partners, have formed the Limited Partnership as a new
      partnership and at the Closing shall enter into the Partnership Agreement.

            (c) Contribution of DGHC's Membership Interest in DGPC. At the
      Closing, after the contributions by DGC pursuant to Section 2.1(a), DGHC
      shall transfer, assign and contribute to the Limited Partnership its
      entire membership interest in DGPC and such portion of the cash and other
      liquid assets received from DGC as determined by DGHC. In consideration
      for such contribution, DGHC shall receive 100% of the general partnership
      interests in the Limited Partnership, having the rights and being subject
      to the obligations that are provided in the Partnership Agreement.

            (d) Transfer of CPC's Assets Relating to the Joint Venture. At the
      Closing, CPC shall transfer, assign and contribute to the Limited
      Partnership good and marketable title to (x) all of the CPC Charleston
      Assets, free and clear of all Liens (subject to the Assumed Liabilities
      and subject to the provisions contained in the Amended JOA), and (y) the
      entire CPC Joint Venture Interest, free and clear of all Liens (subject to
      the Assumed Liabilities and subject to the provisions contained in the
      Amended JOA). At the Closing, in consideration of such assignment,
      transfer and contribution being made, CPC shall receive 100% of the Class
      A limited partnership interests in the Limited Partnership, having the
      rights and being subject to the obligations that are provided in the
      Partnership Agreement, and, subject to Section 2.1(f) below, from the
      Limited Partnership an amount equal to the Purchase Price, as determined
      and adjusted in accordance with Section 2.2.

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            The term "CPC CHARLESTON ASSETS" means all assets of every kind and
      description wherever located, whether tangible or intangible, real,
      personal or mixed, currently used or held for use in connection with the
      business and operation of the Newspapers, including the publication of the
      Newspapers and ancillary activities, or in connection with the Joint
      Venture, that are owned or held by CPC outside the Joint Venture,
      including, without limitation, the assets referenced in Section 8.0 of the
      Existing JOA, all circulation lists of The Charleston Daily Mail and The
      Sunday Gazette-Mail and all rights of CPC to the trade names, trademarks,
      mastheads, service names and service marks, "The Charleston Daily Mail"
      and "The Sunday Gazette-Mail", and all other intellectual property used or
      held for use in the business of the Newspapers including all related
      websites and URL's, including "dailymail.com," but excluding the CPC Joint
      Venture Interest, CPC's Class A limited partnership interests in the
      Limited Partnership and the Excluded Assets.

            The term "EXCLUDED ASSETS" means the following assets:

                  (i)   all cash and cash equivalents on deposit for or held by
            or for CPC as of the Closing for the account of or related to the
            Newspapers, other than cash or cash equivalents of the Joint
            Venture;

                  (ii)  all claims and rights in and to any refunds of Federal,
            state or local income taxes of CPC relating to the Newspapers;

                  (iii) all deposits and prepaid expenses of CPC, if any, as of
            the Closing relating to other Excluded Assets; and

                  (iv)  all assets of CPC or one or more affiliates, including,
            in particular and without limitation those of a corporate overhead
            nature, which in addition to being utilized in the
            business/operations of the Newspapers are also utilized in the
            business/operations of one or more affiliates of CPC.

            The term "CPC JOINT VENTURE INTEREST" means all of CPC's rights,
      claims and interests under the Existing JOA and in the Joint Venture,
      including, but not limited to, CPC's entire 50% general partnership
      interest and joint venture interest in the Joint Venture and all rights
      relating thereto and all of CPC's rights and interests in all of the
      assets of the Joint Venture.

            (e) Subsequent Transfers of Certain CPC Charleston Assets. At the
      Closing, immediately after the actions required by Section 2.1(d) are
      taken, all rights and interests in any real property or tangible personal
      property, if any, included in the CPC Charleston Assets shall be
      transferred by the Limited Partnership to the Joint Venture.

            (f) Financing Transactions. At the Closing, immediately after the
      actions required by Section 2.1(e) are taken, (i) the Joint Venture shall
      assume the Limited Partnership's obligation to pay the Purchase Price, as
      determined and adjusted in accordance with Section 2.2, to CPC, (ii) the
      Limited Partnership shall transfer to the Joint Venture that portion of
      the cash and other liquid assets transferred to the Limited Partnership by
      DGHC pursuant to Section 2.1(c), (iii) the Joint Venture shall obtain

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      financing proceeds from General Electric Capital Corporation and ABRY or
      their affiliates, and (iv) the Joint Venture shall pay the portion of the
      Purchase Price payable at the Closing to CPC in the manner provided in
      Section 2.5(c).

            (g) Amended JOA. At the Closing, DGC, DGHC, the Limited Partnership,
      DGPC, CPC and the Joint Venture shall enter into the Amended JOA.

      Section 2.2 Purchase Price. The "PURCHASE PRICE" shall be Fifty-Five
Million Dollars ($55,000,000), subject to adjustment and payment as provided
herein.

            (a) Adjustments at Closing. The following adjustments shall be made
      to the Purchase Price at Closing, and the amount of the Purchase Price as
      so adjusted shall be the amount paid at the Closing to CPC pursuant to
      Section 2.5(c).

                  (i)   Provisional Working Capital Adjustment. A provisional
            increase in the amount of $786,480 representing CPC's 50% share of
            the Joint Venture's positive working capital as of the end of the
            month of March, 2004 (the "REFERENCE MONTH"), as reflected on the
            Estimated Statement of Working Capital and Long Term Debt which is
            described in Section 2.2(b), with the final working capital
            adjustment to be determined following the Closing in the manner set
            forth in Section 2.2(c). In determining the working capital
            adjustment, current assets and current liabilities shall be
            determined in accordance with generally accepted accounting
            principles consistent with the Joint Venture's past practices,
            except that (A) in calculating the value of current assets, the
            value of all Excluded Assets and all intercompany receivables shall
            be excluded (as thus calculated, "CURRENT ASSETS"), and (B) in
            calculating the value of current liabilities, all of the Excluded
            Liabilities, the current maturities of all long term debt (including
            the portion associated with the unsecured notes due DGC and CPC)
            and, so that there is no duplication, all liabilities that are
            otherwise taken into account and result in a downward adjustment to
            the Purchase Price pursuant to subparagraphs (iii) and (iv) below
            shall be excluded (as thus calculated, "CURRENT LIABILITIES").

                  (ii)  Provisional Long Term Debt Adjustment. A provisional
            reduction in the amount of $2,236,074 representing CPC's 50% share
            of the Joint Venture's long term debt as of the end of the Reference
            Month as reflected on the Estimated Statement of Working Capital and
            Long Term Debt, with the final debt adjustment to be determined
            following the Closing in the manner set forth in Section 2.2(c). In
            calculating long term debt, current maturities of long term debt
            shall be included, but all of the Excluded Liabilities and the
            portion of long term debt associated with the unsecured notes due
            DGC and CPC shall be excluded (as thus calculated, "LONG TERM
            DEBT").

                  (iii) Pension Plan Adjustment. A reduction of $1,142,750.50,
            representing CPC's 50% share of the amount of the estimated unfunded
            accrued benefit obligation for the Charleston Newspapers Retirement
            Benefit Plan as of December 31, 2003 as reported by the Plan's
            actuaries, Aon Consulting, in its letter dated April 9, 2004.

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                  (iv)  Medical Benefit Program Adjustment. A reduction of
            $723,000, representing CPC's 50% share of the estimated unfunded
            accrued benefit obligation for the Charleston Newspapers Post
            Retirement Medical Benefit Program as of December 31, 2003.

            (b) Estimated Working Capital and Long Term Debt Statement. CPC has
      prepared and delivered to DGC a working capital and long term debt
      statement for the Joint Venture as of the end of the Reference Month (the
      "ESTIMATED WORKING CAPITAL AND LONG TERM DEBT STATEMENT"). DGC has
      reviewed the Estimated Working Capital and Long Term Debt Statement
      delivered by CPC, and DGC and CPC have agreed to the final form of the
      Estimated Working Capital and Long Term Debt Statement, which is attached
      hereto as Exhibit A, subject to final adjustments being made after the
      Closing as provided in Section 2.2(c). In order to effectuate the
      provisional adjustments provided for in subparagraphs (i) and (ii) of
      Section 2.2(a) hereof, the Purchase Price has been reduced by one-half the
      amount by which the aggregate value of Current Liabilities and Long Term
      Debt reflected on the Estimated Working Capital and Long Term Debt
      Statement exceeds the value of the Current Assets reflected on such
      statement.

            (c) Final Working Capital and Long Term Debt Statement. Not later
      than ninety (90) days following the Closing, DGC shall prepare and deliver
      to CPC a working capital and long term debt statement for the Joint
      Venture based upon the books and records thereof as of the Closing. Such
      statement (the "FINAL WORKING CAPITAL AND LONG TERM DEBT STATEMENT") shall
      be prepared in accordance with generally accepted accounting principles
      consistent with the Joint Venture's past practices and fairly present the
      Current Assets, Current Liabilities and Long Term Debt of the Joint
      Venture as of the Closing and otherwise determined in a manner consistent
      with this Section 2.2. To the extent that the Current Assets, Current
      Liabilities and Long Term Debt, as thus calculated, of the Joint Venture
      which is reflected on the Final Working Capital and Long Term Debt
      Statement results in a final aggregate adjustment to the Purchase Price
      under subparagraphs (i) and (ii) of Section 2.2(a) that is greater or
      lesser than the provisional aggregate adjustment made at the Closing as
      reflected on the final Estimated Working Capital and Long Term Debt
      Statement, a corresponding adjustment equal to one-half of such difference
      shall be made to the Purchase Price, and CPC or DGC, as appropriate, shall
      pay the amount of such adjustment, by bank draft or wire transfer of
      immediately available funds, within five (5) Business Days of DGC's
      delivery to CPC of the Final Working Capital and Long Term Debt Statement
      or the resolution of any dispute as provided in the following sentence, as
      the case may be. Any dispute between CPC and DGC regarding the Final
      Working Capital and Long Term Debt Statement shall be resolved by Deloitte
      & Touche LLP or such other nationally recognized firm of independent
      public accountants as shall be mutually selected by CPC and DGC, with the
      cost and fees of such firm being shared equally by CPC and DGC.

      Section 2.3 Assumption of Liabilities. Effective as of the Closing, DGHC
shall assume and be responsible for all of CPC's duties and obligations under
the Existing JOA and CPC's pro rata share pursuant to the Existing JOA of all
liabilities of the Joint Venture, arising prior to or subsequent to the Closing,
as well as all obligations and liabilities arising subsequent to the Closing
relating to the business and operations of the Newspapers, provided that DGHC

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shall not assume, and DGHC and its affiliates shall not be responsible for, and
CPC shall be responsible for: (i) all duties, obligations and liabilities
allocated to CPC by the terms of the Amended JOA with respect to The Charleston
Daily Mail; (ii) the entire cost and expense of defending, settling, paying and
discharging any liability or other claim which is not covered by the libel
insurance obtained by the Joint Venture (excluding any such cost or expense
which is not covered as a result of the application of any deductible amount or
co-payment requirement provided under the insurance policy) for the The
Charleston Daily Mail on account of anything published in or excluded from The
Charleston Daily Mail, or arising by reason of anything done or omitted to be
done by the editorial department thereof, whether prior to or subsequent to
Closing; and (iii) all severance and similar obligations and liabilities to Sam
Hindman. No other obligations or liabilities shall be assumed by DGHC (or its
affiliates) at Closing other than those expressly assumed pursuant to the
preceding sentence (collectively, the "ASSUMED LIABILITIES") and CPC shall
retain all other obligations and liabilities, whether or not relating to the
Newspapers (collectively, together with the obligations and liabilities
described in clauses (i), (ii) and (iii) above, the "EXCLUDED LIABILITIES").

      Section 2.4 Tax Matters.

            (a) All tax returns for the Joint Venture (i) that are due on or
      before the Closing Date, or (ii) that relate to taxable periods ending on
      or prior to the Closing Date but are required to be filed after the
      Closing Date shall be prepared and filed in a manner consistent with past
      practice. Allocations of items of income and gain and loss and deduction
      shall for the taxable year that includes the Closing Date be made using
      the closing-of-the-books method. DGPC shall cause an election under
      section 754 of the Code to be in effect for the taxable year in which the
      Closing occurs.

            (b) All transfer, documentary, sales, use, stamp, registration and
      other such taxes and fees (including any penalties and interest) incurred
      in connection with the transactions consummated pursuant to this Agreement
      shall be paid by the Limited Partnership. The Limited Partnership and CPC
      shall cooperate in all reasonable respects to prepare and file all
      necessary tax returns and other documentation with respect to all such
      transfer, documentary, sales, use, stamp, registration and other taxes and
      fees.

            (c) Unless otherwise required by applicable law, the parties agree
      to report the transactions effected by the Transaction Documents in any
      relevant tax returns or similar filings as (i) a sale by CPC to the
      Limited Partnership of the CPC Charleston Assets for $50,000, (ii) a
      distribution by the Joint Venture to CPC of cash in the amount of (x) the
      balance of the Purchase Price, as determined and adjusted in accordance
      with Section 2.2, and (y) the liabilities of the Joint Venture allocable
      to the CPC Joint Venture Interest pursuant to Section 752 of the Code, and
      (iii) the merger of the Joint Venture and the Limited Partnership,
      resulting in a termination of the Limited Partnership and the continuation
      of the Joint Venture.

            (d) The parties agree to allocate $50,000 to the CPC Charleston
      Assets. The parties further agree that any adjustment to the tax basis of
      the Joint Venture's assets pursuant to Section 734(b) of the Code shall be
      allocated 1/3 to tangible assets and 2/3 to intangible assets. Unless
      otherwise required by applicable law, the parties agree to act,

                                      -7-
<PAGE>

      and cause their respective affiliates to act, in accordance with the
      allocations agreed to herein in any relevant tax returns or similar
      filings, and shall make any filings required by Code Sections 704(c),
      734(b), 751, 755 and 1060 (if any) in accordance with such allocation.

            (e) DGC shall cause DGPC and the Limited Partnership to comply with
      this Section 2.4 and perform their obligations hereunder.

      Section 2.5. The Closing; Deliveries. The Closing shall take place as soon
as practicable after the satisfaction or waiver of all conditions for Closing
set forth in Article III, at the offices of Dow, Lohnes & Albertson. PLLC,
located at 1200 New Hampshire Avenue, N.W., Washington, D.C. 20036, or on such
other date and at such other place as may be agreed by DGC and CPC. At the
Closing, the Parties shall make the following deliveries:

            (a) Each of the Parties shall deliver, or cause to be delivered,
      executed copies of each of the Transaction Documents, duly executed by
      each party thereto.

            (b) Each of the Parties, as applicable, shall deliver, or cause to
      be delivered, such conveyance and assumption documents, in form and
      substance mutually satisfactory to the Parties, as may be reasonably
      requested by the other Parties to evidence the contribution and sale
      transactions contemplated in Section 2.1 and consummate the transactions
      contemplated by this Agreement.

            (c) the Joint Venture shall deliver, or cause to be delivered, the
      portion of the Purchase Price payable at the Closing as determined in
      accordance with Section 2.2 by bank draft or wire transfer of immediately
      available funds to an account designated by CPC.

                                   ARTICLE III

                             CONDITIONS TO CLOSINGS

      Section 3.1. Conditions of DGC to Closing. The obligation of DGC to
consummate the transactions contemplated by this Agreement to occur at the
Closing are subject to the satisfaction, on or prior to the Closing, of each of
the following conditions, compliance with which or the occurrence of which may
be waived in whole or in part by DGC:

            (a) Accuracy of Representations and Warranties. The representations
      and warranties made by CPC and MNG in the Letter of Intent and in this
      Agreement shall have been true and correct in all material respects when
      made and shall be true and correct in all material respects at the
      Closing, as if originally made as of the Closing.

            (b) Performance of Covenants. The covenants made by CPC and MNG in
      the Letter of Intent and in this Agreement to be performed prior to the
      Closing shall have been performed in all material respects prior to the
      Closing.

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            (c) Amended JOA and Other Closing Deliveries. The Parties shall have
      entered into the Amended JOA, upon terms reasonably acceptable to DGC. CPC
      and MNG shall have made the deliveries required to be made by them under
      Section 2.5.

            (d) Officer's Certificate. CPC and MNG shall have delivered an
      officer's certificate (duly executed by an officer of CPC and an officer
      of MNG, but without personal liability), certifying that the conditions
      for Closing set forth in Sections 3.1(a), 3.1(b) and the second sentence
      of Section 3.1(c) have been satisfied as of the Closing.

            (e) No Material Adverse Change. Since the execution of the Letter of
      Intent, no event shall have occurred which, either individually or in the
      aggregate with other events, results in or could be reasonably expected to
      result in any material adverse change with respect to the business,
      assets, liabilities, properties or financial condition of the Newspapers,
      the Joint Venture or the CPC Charleston Assets.

            (f) No Legal Proceedings. No action, proceeding, investigation,
      regulation or legislation shall have been instituted or threatened before
      any court or other governmental authority which questions the validity or
      legality of the proposed transactions or seeks to enjoin, restrain,
      prohibit or obtain substantial damages in respect of, or which is related
      to, or arises out of the proposed transactions or can otherwise be
      expected to materially and adversely affect Daily Gazette, the Joint
      Venture, any of their affiliates or the Newspapers, and no writ, order,
      decree or injunction of a court or other governmental authority shall have
      been entered that has the foregoing effect.

            (g) Outside Date. The Closing shall have occurred not later than the
      latter of May 14, 2004 or the fifth (5th) Business Day following the
      satisfaction of all other conditions for Closing.

      Section 3.2. Conditions of CPC and MNG to Closing. The obligations of CPC
and MNG to consummate the transactions contemplated by this Agreement to occur
at the Closing are subject to the satisfaction, on or prior to the Closing, of
each of the following conditions, compliance with which or the occurrence of
which may be waived in whole or in part by CPC and MNG:

            (a) Accuracy of Representations and Warranties. The representations
      and warranties made by DGC in the Letter of Intent and in this Agreement
      shall have been true and correct in all material respects when made and
      shall be true and correct in all material respects at the Closing, as if
      originally made as of the Closing.

            (b) Performance of Covenants. The covenants made by DGC in the
      Letter of Intent and in this Agreement to be performed prior to the
      Closing shall have been performed in all material respects prior to the
      Closing.

            (c) Amended JOA and Other Closing Deliveries. The Parties shall have
      entered into the Amended JOA, upon terms reasonably acceptable to CPC. DGC
      shall have made, or caused to be made, the deliveries required to be made
      by it under Section 2.5.

                                      -9-
<PAGE>

            (d) Officer's Certificate. DGC shall have delivered an officer's
      certificate (duly executed by an officer of DGC, but without personal
      liability), certifying that the conditions for Closing set forth in
      Sections 3.2(a), 3.2(b) and the second sentence of Section 3.2(c) have
      been satisfied as of the Closing.

            (e) No Legal Proceedings. No action, proceeding, investigation,
      regulation or legislation shall have been instituted or threatened before
      any court or other governmental authority which questions the validity or
      legality of the proposed transactions or seeks to enjoin, restrain,
      prohibit or obtain substantial damages in respect of, or which is related
      to, or arises out of the proposed transactions, and no writ, order, decree
      or injunction of a court or other governmental authority shall have been
      entered that has the foregoing effect.

            (f) Outside Date. The Closing shall have occurred not later than the
      latter of May 14, 2004 or the fifth (5th) Business Day following the
      satisfaction of all other conditions for Closing.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF CPC AND MNG

      CPC and MNG each represents and warrants to DGC as follows:

      Section 4.1. Organization, Qualification, Etc. CPC is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. MNG is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware. CPC has all necessary power
and authority to own its properties and assets and to conduct its business as
now conducted. CPC has qualified to conduct business and is in good standing
under the laws of all jurisdictions where the nature of its operations or the
nature or location of its assets requires such qualification.

      Section 4.2. Corporate Authority.

            (a) CPC has full power and authority to execute and deliver this
      Agreement and each of the other Transaction Documents to which it is a
      party and to perform its obligations hereunder and thereunder. All acts
      required to be taken to authorize the execution and delivery by CPC of
      this Agreement and each of the other Transaction Documents to which it is
      a party and the performance of each of its obligations hereunder and
      thereunder have been duly and properly taken, and no other proceedings on
      the part of CPC are necessary to authorize such execution, delivery and
      performance. This Agreement and each of the other Transaction Documents to
      which CPC is a party constitutes a legal, valid and binding obligation of
      CPC enforceable in accordance with its respective terms.

            (b) MNG has full power and authority to execute and deliver this
      Agreement and each of the other Transaction Documents to which it is a
      party and to perform its obligations hereunder and thereunder. All acts
      required to be taken to authorize the execution and delivery by MNG of
      this Agreement and each of the other Transaction

                                      -10-
<PAGE>

      Documents to which it is a party and the performance of each of its
      obligations hereunder and thereunder have been duly and properly taken,
      and no other proceedings on the part of MNG are necessary to authorize
      such execution, delivery and performance. This Agreement and each of the
      other Transaction Documents to which MNG is a party constitutes a legal,
      valid and binding obligation of MNG enforceable in accordance with its
      respective terms.

      Section 4.3. No Conflict. The execution, delivery and performance of this
Agreement and the other Transaction Documents to which CPC and/or MNG is a party
by CPC and/or MNG, as the case may be, and the consummation of the transactions
contemplated herein and therein by CPC and MNG do not and will not, with or
without the passage of time and/or the giving of notice, conflict with or result
in a breach or violation of any of the terms and provisions of, or constitute a
default under, (i) any loan or credit agreement, note, bond, indenture,
mortgage, deed of trust, lease, franchise, contract, or other agreement,
obligation, instrument or binding commitment of any nature to which CPC or MNG
is a party or subject, (ii) the certificate of incorporation or bylaws of CPC or
MNG, or (iii) any law, order, rule, regulation, writ, injunction, judgment or
decree of any court, administrative agency, regulatory body, or governmental
agency or body, domestic or foreign, having jurisdiction over CPC or MNG or
their assets or properties, and do not and will not result in the creation of
any Lien on any of the CPC Charleston Assets or the CPC Joint Venture Interest,
except, with respect to clauses (i) and (iii), for any conflict, breach,
violation or default which would not impair CPC's or MNG's ability to execute,
deliver and perform this Agreement and the other Transaction Documents to which
they are a party or to consummate the transactions contemplated herein or
therein.

      Section 4.4 No Consents. No consent, approval, order or authorization of,
or declaration to, notice to, or filing with, any federal, state or local
governmental or regulatory authority or other third party on the part of CPC or
MNG is required in connection with the execution, delivery and performance of
this Agreement and the other Transaction Documents to which CPC and/or MNG is a
party by CPC and/or MNG, as the case may be, and the consummation of the
transactions contemplated herein and therein (each a "CONSENT") that have not
already been obtained or made, except for the filing required under the NPA as
contemplated by Section 6.1(c).

      Section 4.5 Assets and Liens. CPC has good and marketable title to all of
the CPC Charleston Assets, free and clear of all Liens (subject to the Assumed
Liabilities and the provisions contained in the Existing JOA, for the period
prior to Closing, and the provisions contained in the Amended JOA, for the
period subsequent to Closing). CPC is the record and beneficial owner of 100% of
the CPC Joint Venture Interest, free and clear of all Liens (subject to the
Assumed Liabilities and the provisions contained in the Existing JOA, for the
period prior to Closing, and the provisions contained in the Amended JOA, for
the period subsequent to Closing) and options to purchase or any other right
created by CPC (or its predecessors-in-interest) in favor of a third party
(excluding any rights created under the Existing JOA). CPC and MNG do not make
any representation or warranty with regard to any assets already owned by the
Joint Venture, except that CPC and MNG hereby acknowledge and agree that neither
CPC nor MNG has any interest in any real property or any tangible personal
property used in and useful to the Joint Venture that was previously contributed
to, or acquired by, the Joint Venture.

                                      -11-
<PAGE>

      Section 4.6 Covenants of CPC Under Letter of Intent. Since the date of
execution of the Letter of Intent, CPC has:

      (a) Conducted the business and operations of the Newspapers in the
ordinary course of business consistent with past practices and continued to
perform its duties and obligations under the Existing JOA;

      (b) Not intentionally done anything or intentionally failed to do anything
which has caused any event or transaction to occur which materially or adversely
affects the CPC Charleston Assets or operations of the Joint Venture or the
Newspapers;

      (c) Not sold, assigned or otherwise transferred or approved the sale,
assignment or transfer of any of the CPC Charleston Assets, or canceled or
compromised any debts or claims relating to the Newspapers except in the
ordinary course of business;

      (d) Not failed to use reasonable efforts to preserve intact the Joint
Venture and the Newspapers' present business organizations, keep available the
services of their employees or preserve their relationships with material
advertisers, customers, suppliers, licensors, licensees, distributors or others
having business dealings with the Newspapers and/or the Joint Venture, to the
end that their good will and on-going business will not have been materially
impaired prior to the Closing; and

      (e) Not intentionally done anything or intentionally failed to do anything
which caused any material adverse change to occur subsequent to the date of the
Letter of Intent with respect to the Newspapers, the Joint Venture and/or the
CPC Charleston Assets.

                                    ARTICLE V

                      REPRESENTATIONS AND WARRANTIES OF DGC

      DGC represents and warrants to CPC and MNG as follows:

      Section 5.1. Organization, Qualification, Etc. DGC is a corporation duly
organized, validly existing and in good standing under the laws of the State of
West Virginia. DGC has all necessary power and authority to own its properties
and assets and to conduct its business as now conducted. DGC has qualified to
conduct business and is in good standing under the laws of all jurisdictions
where the nature of its operations or the nature or location of its assets
requires such qualification.

      Section 5.2. Corporate Authority. DGC has full power and authority to
execute and deliver this Agreement and each of the other Transaction Documents
to which it is a party and to perform its obligations hereunder and thereunder.
All acts required to be taken to authorize the execution and delivery by DGC of
this Agreement and each of the other Transaction Documents to which it is a
party and the performance of each of its obligations hereunder and thereunder
have been duly and properly taken, and no other proceedings on the part of DGC
are necessary to authorize such execution, delivery and performance. This
Agreement and each of the other

                                      -12-
<PAGE>

Transaction Documents to which DGC is a party constitutes a legal, valid and
binding obligation of DGC enforceable in accordance with its respective terms.

      Section 5.3. No Conflict. The execution, delivery and performance of this
Agreement and the Transaction Documents to which DGC is a party by DGC and the
consummation of the transactions contemplated herein and therein by DGC do not
and will not, with or without the passage of time and/or the giving of notice,
conflict with or result in a breach or violation of any of the terms and
provisions of, or constitute a default under, (i) any loan or credit agreement,
note, bond, indenture, mortgage, deed of trust, lease, franchise, contract, or
other agreement, obligation, instrument or binding commitment of any nature to
which DGC is a party or subject, (ii) the certificate of incorporation or bylaws
of DGC, or (iii) any law, order, rule, regulation, writ, injunction, judgment or
decree of any court, administrative agency, regulatory body, or governmental
agency or body, domestic or foreign, having jurisdiction over DGC or its assets
or properties, except, with respect to clauses (i) and (iii), for any conflict,
breach, violation or default which would not impair DGC's ability to execute,
deliver and perform this Agreement and the other Transaction Documents to which
DGC is a party or to consummate the transactions contemplated herein or therein.

      Section 5.4 No Consents. No consent, approval, order or authorization of,
or declaration to, notice to, or filing with, any federal, state or local
governmental or regulatory authority or other third party on the part of DGC or
its affiliates is required in connection with the execution, delivery and
performance of this Agreement and the other Transaction Documents by DGC and the
consummation of the transactions contemplated herein and therein, except for the
filing required under the NPA as contemplated by Section 6.1(c) and any of the
foregoing that have already been obtained or made.

                                   ARTICLE VI

                            COVENANTS AND AGREEMENTS

      Section 6.1 Regulatory Approvals and Newspaper Preservation Act Notice.

            (a) Generally. To the extent not provided or obtained prior to the
      Closing, each of the Parties shall take all commercially reasonable steps
      necessary and proceed diligently to provide all required notices and
      obtain all required approvals with respect to the consummation of the
      transactions contemplated by this Agreement, provided that (i) none of the
      Parties shall be required to pay, provide or deliver any consideration to
      obtain any such approvals (except filing or other administrative or
      processing fees), and (ii) DGC shall not be required to assume or accept
      any special terms or conditions or restrictions imposed by any
      governmental authority or third party that could have a material and
      adverse effect on DGC, the Joint Venture, any of their affiliates or the
      Newspapers, in order to obtain any such approval.

            (b) HSR. The Parties acknowledge that the transactions contemplated
      by this Agreement are not subject to notification under the HSR Act.

                                      -13-
<PAGE>

            (c) Newspaper Preservation Act. Without limitation of Section
      6.1(a), the Parties agree to timely provide all notices with respect to
      the consummation of the transactions contemplated by this Agreement
      required under the NPA. The Parties acknowledge that, as of the date of
      this Agreement, the NPA requires the Parties to notify the Department of
      Justice of their entry into the Amended JOA, not later than thirty (30)
      days following the Closing.

      Section 6.2 Cooperation. The Parties will cooperate with the other Parties
in connection with the consummation of the transactions contemplated by this
Agreement, including with regard to DGC's financing transactions.

      Section 6.3 Non-Disclosure. The Parties agree not to make any public
disclosures about the existence or contents of this Agreement or transactions
contemplated hereby without prior written notice to and approval of the other
party.

      Section 6.4 MNG Guaranty. MNG hereby unconditionally and irrevocably
guarantees the performance and payment in full by CPC of all of CPC's
obligations and liabilities under the Amended JOA and all of CPC's obligations
and liabilities under this Agreement and the other Transaction Documents,
including but not limited to the performance and payment of CPC's Excluded
Liabilities.

      Section 6.5 DGHC Assumption. Effective as of the Closing, DGHC shall
assume and perform all of DGC's obligations under this Agreement to be performed
after the Closing, including its indemnification obligations, and DGC shall be
released therefrom.

                                   ARTICLE VII

                                 INDEMNIFICATION

      Section 7.1. Indemnification by CPC and MNG. After the Closing CPC and MNG
shall jointly and severally indemnify, defend and hold DGC (including the Joint
Venture and its other affiliates) harmless from and against (i) all losses or
expenses, including reasonable attorneys fees, caused by any breach of any
warranty, representation or covenant of CPC or MNG contained in the Letter of
Intent or this Agreement and (ii) all of the Excluded Liabilities, whether
liquidated, contingent or otherwise, together with all losses and expenses that
DGC may incur with respect thereto, including attorney's fees. Notwithstanding
the above, CPC and MNG shall not be obligated to indemnify DGC (including the
Joint Venture and its other affiliates) for any liabilities, loss or expense
caused by any breach of any warranty or representation until the aggregate of
such liabilities, losses and expenses exceed the threshold sum of $250,000;
however, when the aggregate amount of such liabilities, losses and expenses
exceed such amount, CPC and MNG shall thereafter be liable in full for all such
liabilities, losses and expenses.

      Section 7.2 Indemnification by DGC. After the Closing DGC shall indemnify,
defend and hold CPC and MNG (including their respective affiliates) harmless
from and against (i) all losses or expenses, including reasonable attorneys
fees, caused by any breach of any warranty, representation or covenant of DGC
contained in the Letter of Intent or this Agreement and (ii) all

                                      -14-
<PAGE>

of the Assumed Liabilities, whether liquidated, contingent or otherwise,
together with all losses and expenses that CPC may incur with respect thereto,
including attorneys' fees. Notwithstanding the above, DGC shall not be obligated
to indemnify CPC or MNG (or their respective affiliates) for any liabilities,
loss or expense caused by any breach of any warranty or representation until the
aggregate of such liabilities, losses and expenses exceed the threshold sum of
$250,000; however, when the aggregate amount of such liabilities, losses and
expenses exceed such amount, DGC shall thereafter be liable in full for all such
liabilities, losses and expenses.

      Section 7.3 Survival. Except for indemnification claims which are based
upon actual or potential claims against DGC (including the Joint Venture and its
other affiliates) by third parties or claims which are based upon the failure of
CPC to perform and discharge the Excluded Liabilities, which claims may be
asserted at any time prior to the running of the applicable statute of
limitations, all indemnification claims of DGC (including the Joint Venture and
its other affiliates) with respect to breach of warranties or pre-Closing
covenants shall be made within eighteen (18) months of the Closing. Except for
indemnification claims which are based upon actual or potential claims against
CPC and/or MNG (including their respective affiliates) by third parties or
claims which are based upon the failure of DGHC to perform and discharge the
Assumed Liabilities, which claims may be asserted at any time prior to the
running of the applicable statute of limitations, all indemnification claims of
CPC and/or MNG (including their respective affiliates) with respect to breach of
warranties or pre-Closing covenants shall be made within eighteen (18) months of
the Closing.

      Section 7.4 Brokers' Fees. DGC, on the one hand, and CPC and MNG, on the
other hand, each warrant that they are not represented by any brokers, finders,
or agents in connection with this transaction and agree to mutually indemnify
each other against any claim for any fee, commission, or any other compensation
claimed to be due by any purported broker, finder or agent engaged by them.

                                  ARTICLE VIII

                                  MISCELLANEOUS

      Section 8.1. Assignment. No Party will assign this Agreement or any
rights, interests or obligations hereunder, or delegate performance of any of
its obligations hereunder, without the prior written consent of each other
Party, except DGC may assign its rights hereunder to a related entity, and DGC
and the Joint Venture may collaterally assign their rights hereunder to their
lenders for security purposes.

      Section 8.2. Entire Agreement. This Agreement and the other Transaction
Documents embody the entire agreement and understanding of the Parties in
respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the Parties with respect to such
subject matter, except to the extent any provisions of the Existing JOA or
Letter of Intent are referred to herein, such provisions shall be deemed
restated herein and survive to the limited extent of giving effect to the
provisions hereof. In the event of any conflict between this Agreement and the
Amended JOA or the Letter of Intent, this Agreement

                                      -15-
<PAGE>

shall control. In the event of any conflict between this Agreement and the
Partnership Agreement, the Partnership Agreement shall control.

      Section 8.3. Transactional Costs/Expenses. Except as otherwise expressly
herein provided, each Party shall bear all fees and expenses incurred by such
Party in connection with, relating to or arising out of the consummation of the
transactions contemplated hereby, including, without limitation, attorneys',
accountants' and other professional fees and expenses.

      Section 8.4. Waiver, Amendment, Etc. This Agreement may not be amended or
supplemented, and no waivers of or consents to departures from the provisions
hereof shall be effective, unless set forth in a writing signed by the
Party(ies) to be bound. No failure or delay of any Party in exercising any power
or right under this Agreement will operate as a waiver thereof, nor will any
single or partial exercise of any right or power, or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.

      Section 8.5. Binding Agreement; No Third Party Beneficiaries. This
Agreement will be binding upon and inure to the benefit of the Parties and their
successors and permitted assigns. Nothing expressed or implied herein is
intended or will be construed to confer upon or to give to any third party any
rights or remedies by virtue hereof (except in its capacity as an indemnified
party under Article VII). It is specifically agreed that DGC shall have no
obligation whatsoever to any creditor, employee, vendor or agent of CPC as a
consequence of its entering into this Agreement. It is specifically agreed that
CPC and MNG shall have no obligation whatsoever to any creditor, employee,
vendor or agent of DGC as a consequence of its entering into this Agreement,
except as expressly provided in the other Transaction Documents, any other
agreement, document or instrument entered into by CPC or MNG or in the
Assignment of Representations, Warranties, Covenants and Indemnities
(Acquisition Agreement) dated as of even date herewith among the Joint Venture,
DGC and General Electric Capital Corporation, as agent.

      Section 8.6. Notices. All notices, requests, demands, claims and other
communications which may or are to be given hereunder or with respect hereto
shall be in writing, shall be given either by personal delivery, facsimile or by
certified or special express mail or recognized overnight delivery service,
first class postage prepaid, or when delivered to such delivery service, charges
prepaid, return receipt requested, and shall be deemed to have been given or
made when personally received by the addressee, addressed as follows:

If to DGC or the Joint Venture:      c/o Daily Gazette Company
                                     1001 Virginia Street, East
                                     Charleston, WV  25301
                                     Attn:  Ms. Elizabeth E. Chilton, President,
                                     Facsimile:  (304) 348-5180, and
                                     Attn: Mr. Norman Watts Shumate III,
                                     Facsimile: (304) 348-1795

With A Copy to:                      Dow, Lohnes & Albertson, PLLC
                                     1200 New Hampshire Avenue, NW

                                      -16-
<PAGE>

                                     Washington, D.C. 20036
                                     Attn:  J. Michael Hines, Esq.
                                     And
                                     J. Kevin Mills, Esq.
                                     Facsimile:  (202) 776-2000

If to CPC:                           MediaNews Group, Inc.
                                     1560 Broadway, Suite 2100
                                     Denver, Colorado 80202
                                     Attn:  Joseph J. Lodovic, IV
                                     President
                                     Facsimile:  (303) 894-9327

With a Copy to:                      Hughes Hubbard & Reed LLP
                                     1775 I Street, N.W.
                                     Washington, D.C.  20006-2401
                                     Attn:  Howell E. Begle, Jr., Esq.
                                     Facsimile:  (202) 721-4739

Any party may change the address to which notices, requests, demands, claims,
and other communications hereunder are to be delivered by giving the other
parties notice in the manner herein set forth.

      Section 8.7. Governing Law. This Agreement shall be governed and
controlled as to validity, enforcement, interpretation, construction, effect and
all other respects by the internal laws of the State of West Virginia applicable
to contracts made and wholly to be performed therein.

      Section 8.8. Severability. If any provision of this Agreement is held to
be invalid or unenforceable, such provision shall (i) be modified to the minimum
extent necessary to render it valid and enforceable, or (ii) if it cannot be so
modified, be deemed not to be a part of this Agreement and not affect the
validity or enforceability of the remaining provisions so long as the material
terms and intent of the parties can be preserved in all material respects.

      Section 8.9 Rights Cumulative. All rights and remedies of the Parties will
be cumulative, and the exercise of one or more rights or remedies will not
preclude the exercise of any other right or remedy available under this
Agreement or the other Transaction Documents or applicable law.

      Section 8.10 Further Assurances. At and after the Closing, each of the
Parties will promptly execute and deliver, or cause to be executed and
delivered, to the other Parties all such documents and instruments, in addition
to those otherwise required by this Agreement and the other Transaction
Documents, in form and substance reasonably satisfactory to the Parties, as they
may reasonably request in order to carry out or evidence the terms of this
Agreement and the intent of the Parties.

                                      -17-
<PAGE>

      Section 8.11. Table of Contents; Headings. The table of contents and the
headings in this Agreement are for convenience of reference only and will not
affect the construction of any provisions hereof.

      Section 8.12 Counterparts. This Agreement may be executed in one or more
counterparts, each of which when so executed and delivered will be deemed an
original but all of which will constitute one and the same Agreement.

                        [Signatures follow on next page.]

                                      -18-
<PAGE>

      IN WITNESS WHEREOF, the Parties have caused this Master Restructuring and
Purchase Agreement to be duly executed as of the date first above written.

                          DAILY GAZETTE COMPANY

                          By: /s/ Elizabeth E. Chilton
                              -----------------------------------
                              Name: Elizabeth E. Chilton
                              Title: President

                          MEDIANEWS GROUP, INC.

                          By: /s/ Ronald A. Mayo
                              -----------------------------------
                              Name: Ronald A. Mayo
                              Title: Vice President and Chief Financial
                              Officer

                          CHARLESTON PUBLISHING COMPANY

                          By: /s/ Ronald A. Mayo
                              -----------------------------------
                              Name: Ronald A. Mayo
                              Title: Vice President and Chief Financial
                              Officer

                          CHARLESTON NEWSPAPERS

                          By: Charleston Newspapers Holdings, L.P.,
                              General Partner
                          By: Daily Gazette Holding Company, LLC,
                              General Partner
                          By: Daily Gazette Company, Member

                          By: /s/ Elizabeth E. Chilton
                              -----------------------------------
                              Name: Elizabeth E. Chilton
                              Title: PresidentExhibit 10.90

                         TAPCO INTERNATIONAL CORPORATION
                                 29797 Beck Road
                                 Wixom, MI 48939

22 September 2004

Mr. John N. Lawless, III
c/o TAPCO INTERNATIONAL CORPORATION
29797 Beck Road
Wixom, Michigan 48939

         Re:      Employment Agreement

Dear Jack:

I am pleased to offer you employment as the President of Tapco International
Corporation ("the Company") on the terms and conditions set forth in this letter
agreement (this "Agreement"). You may accept this Agreement by signing and
returning a copy of this Agreement as provided below.

1. Term of Employment. Your employment under this Agreement shall commence on 8
September 2004 ("Start Date") and continue until 30 September 2007, unless it is
terminated earlier either by you or the Company or is extended by both you and
the Company in a signed writing ("Separation Date"). Your employment under this
Agreement is terminable at will by you or the Company at any time (for any
reason or for no reason) subject to the provisions of Section 3.

2. Position and Duties. During the term of this Agreement, the Company shall
employ you as the President of the Company and you shall report to the Chief
Executive Officer of Headwaters Incorporated ("Headwaters"). Your duties shall
include the duties set forth in the bylaws of the Company for your position and
any other duties the Board and the Chief Executive Officer of Headwaters may
delegate to you from time to time. You will be expected to commit your attention
and efforts to the position on a full-time basis subject to a reasonable amount
of time that you may spend on Permitted Activities (as defined below). This
Agreement is personal to you and you may not assign or delegate any of your
rights or obligations hereunder.

3. Compensation and Benefits. In consideration for your services to the Company
during the time period in which this Agreement is effective, you shall receive
the following compensation and benefits:

         (a) Base Salary. The Company shall pay you your current base salary
through 30 September 2004. Beginning 1 October 2004, the Company shall pay you
an annual base salary at the rate of $275,000.00 per year to be paid in
installments according to the Company's regular payroll policy. Thereafter, your
salary will be reviewed on an annual basis, and may be increased at the
discretion of the Company. The Company shall withhold and deduct all applicable
federal and state income and employment and disability taxes from your base
salary as required by applicable laws.

         (b) Annual Incentive Opportunity. You will receive 11/12ths of the
fiscal year 2004 cash bonus you would otherwise be entitled to under the
Company's current bonus plan at the time such bonus is to be paid in the
ordinary course of the Company's business. Thereafter, in lieu of Company bonus

                                     Page 1
<PAGE>

or other incentive compensation plans, you shall be eligible to participate in
any bonus plan which Headwaters may maintain or establish for the executives of
Headwaters and its subsidiaries on the terms of such plan and the awards
thereunder. Currently, Headwaters maintains an Incentive Bonus Plan and you will
be eligible to participate in that plan effective 1 October 2004 with an
assigned Bonus Percent for Headwaters fiscal 2005 of 50%. For Headwaters' fiscal
year 2005, the EVA Multiplier for your Award calculation under the Incentive
Bonus Plan shall be adjusted upwards, if necessary, so that your total cash
compensation shall not be less than your Company fiscal year 2004 total cash
compensation (but subject to your individual 2005 Performance Adjustment
Factor).

         (c) Stock Options. Headwaters shall grant you stock options to purchase
up to 125,000 shares of the common stock of Headwaters (the "Options") outside
of any plan of Headwaters or the Company at an exercise price equal $28.49 per
share. The Options will be granted on the form of grant and agreement ("Option
Agreement") attached hereto as Exhibit A.

                  (i) Terms of the Options. The Options shall be governed by the
terms of the Option Agreement, the policies of Headwaters (including but not
limited to the insider trading policy of Headwaters), and applicable laws
(including but not limited to state and federal securities laws). The Company
will use reasonable commercial efforts to register under federal securities laws
the shares underlying the Options.

                  (ii) Vesting of the Options. The Options shall vest in equal
increments of 20% per year beginning on 31 March 2005 and each anniversary
thereof ending on 31 March 2009, subject to your remaining in continuous
employment or service with Headwaters or any of its subsidiaries, including the
Company, as required by the Option Agreement. After your employment or service
with Headwaters or any of its subsidiaries, including the Company has
terminated, the vesting of the Options shall cease immediately; provided, that
if your employment or service with Headwaters or any of its subsidiaries,
including the Company, has terminated for reason of Disability or death or
without Cause or for Good Reason (as such terms are defined below), any unvested
Options shall immediately vest upon the occurrence of said event.

                  (iii) Exercisability of the Options. You may exercise the
vested portion of the Options while you remain in employment or service with
Headwaters or any of its subsidiaries, including the Company. You or your estate
(if applicable) may exercise the vested portion of your Options following the
termination of your employment or service in accordance with the Option
Agreement.

         (d) Future Stock Incentive Grants. You shall be eligible to participate
in future stock incentive grants under such stock incentive plans which
Headwaters may maintain or establish, on the terms of such plan and grants
thereunder.

         (e) Section 401(k) Plan and Other Benefits. Beginning 1 October 2004,
after the Company's fiscal 2004, you shall be eligible to participate in
Headwaters' 401(k) Plan, subject to the terms of that plan. Subject to the terms
of such other plans of the Company, you shall be eligible to receive such other
benefits or rights as may be provided under any employee benefit plans provided
by the Company to its executives that are now or hereafter will be in effect,
including participation in life, medical, disability and dental insurance plans.
The Company will continue to provide you with a Company car through the term of
this Agreement.

         (f) Vacation and Sick Leave. You shall be entitled to paid vacation
plus sick leave on the same basis as all other executives of the Company in
accordance with the terms and conditions of the vacation and sick leave policies
of the Company.

                                     Page 2
<PAGE>

         (g) Termination and Change in Control.

                  (1) Termination for Cause, Termination for Other than Good
Reason or Termination Due to Death or Disability. In the event that your
employment with the Company is terminated by the Company for "Cause" (as defined
below), is terminated by you for reasons other than "Good Reason" (as defined
below), or is terminated due to your death or Disability, then you (or your
estate, if applicable) shall be entitled to payment of your accrued but unpaid
salary and vacation pay through the date of the termination of your employment.

                  (2) Termination Without Cause or for Good Reason. In the event
that your employment is terminated by the Company without Cause or is terminated
by you for a Good Reason, then you shall be entitled to payment of your accrued
but unpaid salary and vacation pay through the date of the termination of your
employment plus an additional 24 months of your base salary paid by the Company
to you immediately preceding the Start Date or, if greater, your regular base
salary payable immediately prior to the termination of your employment, and the
Company shall continue your health insurance coverage for such 24 month period,
provided that you execute an effective release in a form to be provided by the
Company with terms substantially as set forth in the attached Exhibit B.

                  (3) Change in Control. Effective on the Start Date, Headwaters
shall enter into a change in control agreement in the form attached as Exhibit
C. In the event you become eligible to receive the severance payments and
benefits under the change in control agreement, such as in the event your
employment with the Company is terminated within the protection period prior to
and following a "Change in Control" as defined in the change in control
agreement, then any severance payments and benefits to be provided to you by the
Company shall be made under the change in control agreement in lieu of severance
payments and benefits under this Agreement and the provisions of the change in
control agreement pertaining to the your employment and post-termination
covenants and arbitration as provided in the change in control agreement shall
apply to you instead of the provisions herein pertaining to your employment and
post-termination covenants and arbitration set forth in Sections 4 and 8,
respectively.

         (h) Definitions.

         As used in this Agreement, the following terms shall have the meanings
set forth below:

                  (1) "Cause" shall mean:

                           (i) your engaging in willful misconduct against
Headwaters or the Company that is materially injurious to Headwaters or the
Company; provided that any action undertaken with a reasonable and good faith
belief that it is in the best interests of Headwaters or the Company shall not
constitute willful misconduct for purposes of this clause (i).

                           (ii) your engaging in any activity that is a conflict
of interest or competitive with the Company (other than (1) any action not taken
in bad faith and which is promptly remedied by you upon notice by the Company,
(2) your management of current personal investments, provided, that the
investments described in clause (2) do not require your active participation in
the management or the operation of the investments, and further provided, that
such service does not constitute a breach of your fiduciary duties to the
Company or prevent you from discharging all of your duties under this Agreement
(the activities described in clause (2) are hereafter referred to as "Permitted
Activities");

                                     Page 3
<PAGE>

                           (iii) your engaging in any act of fraud or dishonesty
that is materially injurious to the Company, Headwaters, or any of their
affiliates or any material breach of federal or state securities or commodities
laws or regulations;

                           (iv) your engaging in an act of assault or other acts
of violence in the workplace;

                           (v) your harassment after the Start Date of this
Agreement of any individual in the workplace based on age, gender or other
protected status or class or violation of any policy of the Company regarding
harassment (subject to a factual finding made by a court of law that you have in
fact engaged in the above prohibited conduct); or

                           (vi) your conviction, guilty plea or plea of nolo
contendre for any felony crime.

                  (2) "Disability" shall mean a disability as determined under
the Company's long-term disability plan that prevents you from performing your
duties under this Agreement (even with a reasonable accommodation by the
Company) for a period of six months or more.

                  (3) "Good Reason" shall mean any one of the following without
your consent:

                           (i) a demotion or any action by the Company which
results in diminution of your position, authority, duties or responsibilities
(other than any insubstantial action not taken in bad faith and which is
promptly remedied by the Company upon notice by you);

                           (ii) requirement that you report to work more than 60
miles from the Company's existing headquarters (not including normal business
travel required of your position);

                           (iii) a reduction in your base salary or benefits of
more than ten percent (10%) (unless, in the case of a reduction in benefits
only, such reduction in benefits applies to all officers of the Company);

                           (iv) a material breach by the Company of its
obligations hereunder which is not cured within thirty (30) days following
written notice to the Board by you; or

                           (v) any failure by a successor to the Company to
assume and agree to perform the Company's obligations hereunder.

                  (4) "Service" shall mean service to the Company, Headwaters,
or any of their affiliates, other than as an employee, such as a member of the
Board or a consultant.

4. Employment and Post Termination Covenants. By accepting the terms of this
Agreement and as a condition for the termination payments and benefits you
hereby agree to the following covenants in addition to any obligations you may
have by law and make the following representations:

         (a) Confidentiality. You acknowledge that, in connection with your
employment by the Company, you will have access to trade secrets of the Company
and other information and materials which the Company desires to keep
confidential, including customer lists, supplier lists, financial statements,
business records and data, marketing and business plans, and information and
materials relating to the Company's services, products, methods of operation,
key personnel, proprietary software and other proprietary intellectual property
and information disclosed to the Company of third parties to which the Company

                                     Page 4
<PAGE>

owes a duty of nondisclosure (collectively, the "Confidential Information");
provided, however, that Confidential Information does not include information
which (i) is or becomes publicly known other than as a result of your actions in
violation of this Agreement; (ii) is or becomes available to you from a source
(other than the Company) that you reasonably believe is not prohibited from
disclosing such information to you by a contractual or fiduciary obligation to
the Company, (iii) has been made available by the Company, directly or
indirectly, to a non-affiliated third party without obligation of
confidentiality; (iv) you are obligated to produce as a result of a court order
or pursuant to governmental action or proceeding, provided that you give the
Company prompt written notice of such requirement prior to such disclosure and
assistance in obtaining an order protecting such Confidential Information from
public disclosure; or (v) business knowledge you have acquired unrelated to any
specific proprietary information relating to the Company. You covenant and agree
that, both during and after the term of your employment with the Company, you
will keep secret all Confidential Information and will not disclose, reveal,
divulge or otherwise make known any Confidential Information to any person
(other than the Company or its employees or agents in the course of performing
you duties hereunder) or use any Confidential Information for your own account
or for the benefit of any other individual or entity, except with the prior
written consent of the Company.

         (b) Ownership of Intellectual Property. You agree that all inventions,
copyrightable material, software, formulas, trademarks, trade secrets and the
like which are developed or conceived by you in the course of your employment by
the Company or on the Company's time or property (collectively, the
"Intellectual Property") shall be disclosed promptly to the Company and the
Company shall own all right, title and interest in and to the Intellectual
Property. The parties expressly agree that any and all of the Intellectual
Property developed by the Employee shall be considered works made-for-hire for
the Company pursuant to the United States Copyright Act of 1976, as amended from
time to time. In order to ensure that the Company shall own all right, title and
interest in and to the Intellectual Property in the event that any of the
Intellectual Property is not deemed a work made-for-hire (as defined in the
Copyright Act of 1976) and in any other event, you hereby sell and assign all
right, title and interest in and to all such Intellectual Property to the
Company, and you covenant and agree to affix to the Intellectual Property
appropriate legends and copyright notices indicating the Company's ownership of
all Intellectual Property and all underlying documentation to the extent
reasonably appropriate, and shall execute such instruments of transfer,
assignment, conveyance or confirmation as the Company reasonably considers
necessary to transfer, confirm, vest, perfect, maintain or defend the Company's
right, title and interest in and to the Intellectual Property throughout the
world. Your obligation under this Section 4(b) to assign to the Company
inventions created or conceived by you shall not apply to an invention that you
developed entirely on your own time without using the Company's equipment,
supplies, facilities, or trade secret information, provided that those
inventions (i) do not or did not relate directly, at the time of conception or
reduction to practice of the invention, to the Company's business as conducted
at such time or actual or demonstrably anticipated research or development of
the Company; and (ii) do not or did not result from any work performed by you
for the Company.

         (c) Non-Solicitation. You agree for a period of not less than twelve
(12) months following termination of your employment or service (whichever is
later) with Headwaters or its affiliated companies that you shall not solicit
the services or employment or engage the services or employ any of the employees
of Headwaters or its affiliated companies.

                                     Page 5
<PAGE>

         (d) Non-Competition. You agree not to compete directly or indirectly by
becoming a principal, partner, shareholder, equity holder, limited liability
company member, agent, officer, other employee, advisor, consultant, member of a
board of directors, or by becoming interested in any other capacity, with any of
the following entities, their successors or affiliates: Alcoa, Dinesol, Alpha,
Girardin, Pinckney Molded Plastics, and any business or firm that you establish
or form, during the period of 24 months following the termination of your
employment or service with the Company or its affiliated companies in the
geographic markets in which the Company or its affiliated companies operate as
of the Separation Date.

         (e) Authorization to Work for the Company. You represent that you are
legally authorized to work in the United States and that your employment with
the Company shall not constitute a violation of any contractual or other legal
obligation you may have to another entity or employer.

         (f) Breach of Terms of Section 4. The parties to this Agreement agree
that (i) if you breach the provisions set forth in Sections 4, 6 and 8 of this
Agreement, the damage to the Company may be substantial, although difficult to
ascertain, and money damages will not afford the Company an adequate remedy, and
(ii) if you are in breach of any provisions of Sections 4 and 6 of this
Agreement or threaten a breach of any provision of Sections 4 and 6 of this
Agreement, the Company shall be entitled, in additional to all other rights and
remedies as may be provided by law, to seek specific performance and injunctive
and other equitable relief to prevent or restrain a breach of any provision of
this Sections 4 and 6 of this Agreement.

5. Business Expenses. You shall be entitled to reimbursement by the Company for
such customary, ordinary and necessary business expenses as are incurred by you
in the performance of your duties and activities associated with promoting or
maintaining the business of the Company. All expenses as described in this
paragraph shall be reimbursed only upon presentation by you of such
documentation as may be reasonably necessary to substantiate that all such
expenses were incurred in the performance of your duties in accordance with the
Company's policies.

6. Return Of Company Property. On the Separation Date or as earlier requested by
the Company, you agree to return to the Company all Company documents (and all
copies thereof) and other Company property in your possession or control,
including, but not limited to, Company files, correspondence, memos, notebooks,
notes, drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property and equipment,
credit cards, entry cards, identification badges and keys; and any materials of
any kind that contain or embody any proprietary or confidential information of
the Company (and all reproductions thereof in whole or in part) (collectively,
the "Company Property"). You agree to conduct a good faith and diligent search
of your belongings in advance of the aforementioned deadline to ensure your
compliance with the provisions of this Section 6.

7. Binding on Successors. This Agreement may be assigned by the Company to
Headwaters or any of its subsidiaries that become your employer. Further, this
Agreement may be assigned by the Company to a successor by merger, acquisition,
consolidation or otherwise to the business formerly carried on by the Company
and shall be binding upon the Company and any entity which is a successor by
merger, acquisition, consolidation or otherwise to the business formerly carried
on by the Company, or an affiliate of any such entity, and becomes your employer
by reason of (or as the direct result of) any direct or indirect sale or other
disposition of the Company or substantially all of the assets of the business
currently carried on by the Company, without regard to whether or not such
person actively adopts this letter agreement.

8. Arbitration. The parties agree that any future disputes between Executive and
Headwaters (the "parties") under this Agreement including but not limited to
disputes relating to the Release of Claims shall be resolved by binding
arbitration, except where the law specifically forbids the use of arbitration as
a final and binding remedy as provided below, except as provided in Section 8(g)
below.

                                     Page 6
<PAGE>

         (a) The complainant shall provide the other party a written statement
of the claim. Such statement shall identify any supporting witnesses or
documents and the relief requested.

         (b) The respondent shall furnish a statement of the relief, if any,
that it is willing to provide, and identifying supporting witnesses or
documents. If the matter is not resolved, the parties agree to submit their
dispute to a non-binding mediation paid for by Headwaters, provided, however,
that if the amount in dispute is $50,000 or less, this step may be waived at the
election of either party.

         (c) If the matter is not resolved, the parties agree that the dispute
shall be resolved by binding arbitration pursuant to the commercial arbitration
rules of the American Arbitration Association, including any provisions thereof
pertaining to discovery. If the parties are not able to agree upon the selection
of an arbitrator, an arbitrator shall be selected according to the applicable
procedures established by the American Arbitration Association.

         (d) The arbitrator shall have the authority to determine whether the
conduct complained of in Section 8(a) violates the complainant's rights under
this Agreement and, if so, to grant any relief authorized by law; subject to the
provisions of Section 8(g) below. The arbitrator shall not have the authority to
modify, change or refuse to enforce any lawful term of this Agreement and the
Release of Claims.

         (e) Headwaters shall pay for the arbitrator's fees, while each party
shall pay its own attorneys' fees.

         (f) Arbitration shall be the exclusive final remedy for any dispute
between the parties under this Agreement and disputes involving claims for
discrimination or harassment (such as claims under the Fair Employment and
Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, or the Age Discrimination in Employment Act), wrongful
termination, breach of contract, breach of public policy, physical or mental
harm or distress or any other disputes, and the parties agree that no dispute
shall be submitted to arbitration where the complainant has not complied with
the preliminary steps provided for in Sections 8(a) and (b) above.

         (g) The parties agree that the arbitration award shall be enforceable
in any court having jurisdiction to enforce this Agreement and Release of
Claims, so long as the arbitrator's findings of fact are supported by
substantial evidence on the whole and the arbitrator has not made errors of law;
however, either party may bring an action in a court of competent jurisdiction,
regarding or related to matters involving Headwaters' confidential, proprietary
or trade secret information, or regarding or related to inventions that
Executive may claim to have developed prior to or after joining Headwaters,
seeking preliminary injunctive relief in court to preserve the status quo or
prevent irreparable injury before the matter can be heard in arbitration.

         (h) The arbitration shall be held at a location within 50 miles of
Wixom, Michigan unless the parties mutually agree to a different location for
the arbitration.

         (i) In the event that Headwaters wishes to contest or dispute a
termination for Good Reason by Executive, it must give written notice of such
dispute within the ninety (90) calendar day period after the date of Executive's
resignation. If Executive wishes to contest or dispute a termination for Cause
by Headwaters, or any failure to make payments claimed to be due hereunder,
Executive must give written notice of such dispute within ninety (90) calendar
days of receiving a Notice of Termination. Executive may, at Executive's or
Headwaters' option, be suspended from all duties during the pendency of such a
contest or dispute. If Executive prevails in any such contest or dispute,
Headwaters or its successor or assign shall thereupon be liable for the full
amounts due under Section 3 as of the date of termination after adjustments for
amounts already paid.

                                     Page 7
<PAGE>

9. Indemnification. Effective on the Start Date, Headwaters shall enter into an
indemnification agreement in the form attached as Exhibit D. In addition,
Headwaters shall maintain a Directors and Officers insurance policy covering
directors and officers of the Company consistent with prevailing commercial
practice.

10. Miscellaneous.

         (a) This Agreement constitutes the complete, final and exclusive
embodiment of the entire agreement between you and the Company with regard to
the terms and conditions of your employment with the Company and your
anticipated termination of employment. It is entered into without reliance on
any promise or representation, written or oral, other than those expressly
contained herein, and it supersedes any other such promises, warranties or
representations and any other written or oral statements concerning your rights
to any compensation, equity or benefits from the Company, its predecessors or
successors in interest.

         (b) Subject to the mandatory arbitration provided in Section 8 above,
jurisdiction and venue in any action to enforce any arbitration award or to
enjoin any action that violates the terms of this Agreement shall be in the
state and federal courts serving the locality of Wixom, Michigan.

         (c) This Agreement may not be modified or amended except in a writing
signed by both you and a duly authorized officer of the Company. This Agreement
shall bind the heirs, personal representatives, successors and assigns of both
you and the Company, and inure to the benefit of both you and the Company, their
heirs, successors and assigns. If any provision of this Agreement is determined
to be invalid or unenforceable, in whole or in part, this determination shall
not affect any other provision of this Agreement and the provision in question
shall be modified by the court so as to be rendered enforceable in a manner
consistent with the intent of the parties insofar as possible. Headings and
subheadings in this Agreement are solely for convenience and do not constitute
terms of this Agreement.

         (d) This Agreement may be signed in counterparts and the counterparts
taken together shall constitute one agreement. Facsimile or photocopied
signatures shall be deemed as effective as original signatures.

         (e) This Agreement shall be deemed to have been entered into and shall
be construed and enforced in accordance with the laws of the State of Michigan
irrespective of any conflicts of law analysis.

If this Agreement is acceptable to you, please sign below and return the
original, fully executed Agreement to Harlan M. Hatfield, General Counsel of
Headwaters. A copy of the Agreement is also being provided to you for your
records.

I look forward to your future contributions to the Company.

Sincerely,

TAPCO INTERNATIONAL CORPORATION

By:  /s/ Steven G. Stewart
-----------------------------------
Its:  Vice President - Finance

AGREED AND ACCEPTED:

 /s/ John N. Lawless, III                            September 22, 2004
-----------------------------------                -------------------------
John N. Lawless, III                                          Date

                                     Page 8
<PAGE>

                                    EXHIBIT A

                             STOCK OPTION AGREEMENT

                      See Exhibit 10.90.1 of this Form 8-K

<PAGE>

                                    EXHIBIT B

                            GENERAL RELEASE LANGUAGE

Executive agrees, for himself, his spouse, heirs, executor or administrator,
assigns, insurers, attorneys and other persons or entities acting or purporting
to act on his behalf (the "Executive's Parties"), to irrevocably and
unconditionally release, acquit and forever discharge the Company, its parent,
affiliates, subsidiaries, directors, officers, employees, shareholders,
partners, agents, representatives, predecessors, successors, assigns, insurers,
attorneys, benefit plans sponsored by the Company and said plans' fiduciaries,
agents and trustees (the "Company's Parties"), from any and all actions, cause
of action, suits, claims, obligations, liabilities, debts, demands, contentions,
damages, judgments, levies and executions of any kind, whether in law or in
equity, known or unknown, which the Executive's Parties have, have had, or may
in the future claim to have against the Company's Parties by reason of, arising
out of, related to, or resulting from Executive's employment with the Company or
the termination thereof. This release specifically includes without limitation
any claims arising in tort or contract, any claim based on wrongful discharge,
any claim based on breach of contract, any claim arising under federal, state or
local law prohibiting race, sex, age, religion, national origin, handicap,
disability or other forms of discrimination, any claim arising under federal,
state or local law concerning employment practices, and any claim relating to
compensation or benefits. This specifically includes, without limitation, any
claim which the Executive has or has had under Title VII of the Civil Rights Act
of 1964, as amended, the Age Discrimination in Employment Act, as amended, the
Americans With Disabilities Act, as amended, and the Employee Retirement Income
Security Act of 1974, as amended. It is understood and agreed that the waiver of
benefits and claims contained in this section does not include a waiver of the
right to payment of any vested, nonforfeitable benefits to which the Executive
or a beneficiary of the Executive may be entitled under the terms and provisions
of any employee benefit plan of the company which have accrued as of the
separation date and does not include a waiver of the right to benefits and
payment of consideration to which Executive may be entitled under this Agreement
or any of the agreements contemplated hereby (including the indemnification
agreement and the stock option agreements). Executive acknowledges that he is
only entitled to the severance benefits and compensation set forth in this
Agreement, and that all other claims for any other benefits or compensation are
hereby waived, except those expressly stated in the preceding sentence.

<PAGE>

                                    EXHIBIT C

                           CHANGE IN CONTROL AGREEMENT

                      See Exhibit 10.90.2 of this Form 8-K

<PAGE>

                                    EXHIBIT D

                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION AGREEMENT is made and entered into as to this 22nd
day of September 2004 ("Agreement"), by and between Headwaters Incorporated, a
Delaware corporation (the "Company"), and John N. Lawless, III (the
"Indemnitee"), with reference to the following facts:

         A. The Company desires the benefits of having Indemnitee serve as an
officer and/or director secure in the knowledge that any expenses, liability
and/or losses incurred by him in his good faith service to the Company or any of
its affiliates will be borne by the Company or its successors and assigns, and
that the Company will defend Indemnitee against the same;

         B. Indemnitee is willing to serve in his position with the Company only
on the condition that he be indemnified for such expenses, liability and/or
losses;

         C. The Company and Indemnitee recognize the increasing difficulty in
obtaining liability insurance for directors, officers and agents of a
corporation at reasonable cost;

         D. The Company and Indemnitee recognize that there has been an increase
in litigation against corporate directors, officers and agents; and

         E. The Company's Restated Certificate of Incorporation and Bylaws allow
the Company to indemnify its directors, officers and agents to the maximum
extent not prohibited under Delaware law;

         NOW, THEREFORE, the parties hereby agree as follows:

         1. Definitions. For purposes of this Agreement:

         1.1 "Agent" shall mean any person who (a) is or was a director,
officer, employee or agent of the Company or a subsidiary of the Company whether
serving in such capacity or as a director, officer, employee, agent, fiduciary
or other official of another corporation, joint venture, trust or other
enterprise at the request of, for the convenience of, or to represent the
interests of the Company or a subsidiary of the Company or (b) was a director,
officer, employee or agent of a corporation which was a predecessor corporation
of the Company or a subsidiary of the Company whether serving in such capacity
or as a director, officer, employee, agent, fiduciary or other official of
another corporation, joint venture, trust or other enterprise at the request of,
for the convenience of, or to represent the interests of such predecessor
corporation or subsidiary.

         1.2 "Change of Control" shall mean the occurrence of any of the
following events after the date of this Agreement:

         (a) A change in the composition of the board of directors of the
Company (the "Board"), as a result of which fewer than two-thirds of the
incumbent directors are directors who either (a) had been directors of the

                                       1
<PAGE>

Company 24 months prior to such change or (b) were elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the
directors who had been directors of the Company 24 months prior to such change
and who were still in office at the time of the election or nomination; or

         (b) Any "person" (as such term is used in sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) through the acquisition or
aggregation of securities is or becomes the beneficial owner, directly or
indirectly, of securities of the Company representing 20 percent or more of the
combined voting power of the Company's then outstanding securities ordinarily
(and apart from rights accruing under special circumstances) having the right to
vote at elections of directors (the "Capital Stock"), except that any change in
ownership of the Company's securities by any person resulting solely from a
reduction in the aggregate number of outstanding shares of Capital Stock, and
any decrease thereafter in such person's ownership of securities, shall be
disregarded until such person increases in any manner, directly or indirectly,
such person's beneficial ownership of any securities of the Company.

         1.3 "Disinterested Director" shall mean a director of the Company who
is not and was not a party to the Proceeding in respect of which indemnification
is being sought by Indemnitee.

         1.4 "Expenses" shall be broadly construed and shall include, without
limitation, (a) all direct and indirect costs incurred, paid or accrued, (b) all
attorneys' fees, retainers, court costs, transcripts, fees of experts, witness
fees, travel expenses, food and lodging expenses while traveling, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service,
freight or other transportation fees and expenses, (c) all other disbursements
and out-of-pocket expenses, (d) amounts paid in settlement, to the extent not
prohibited by Delaware Law, and (e) reasonable compensation for time spent by
Indemnitee for which he is otherwise not compensated by the Company or any third
party, actually and reasonably incurred in connection with or arising out of a
Proceeding, including a Proceeding by Indemnitee to establish or enforce a right
to indemnification under this Agreement, applicable law or otherwise.

         1.5 "Independent Counsel" shall mean a law firm or a member of a law
firm that neither is presently nor in the past five years has been retained to
represent: (a) the Company, an affiliate of the Company or Indemnitee in any
matter material to either party or (b) any other party to the Proceeding giving
rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term "Independent Counsel" shall not include any person who, under the
applicable standards of professional conduct then prevailing would have a
conflict of interest in representing either the Company or Indemnitee in an
action to determine Indemnitee's right to indemnification under this Agreement.

         1.6 "Liabilities" shall mean liabilities of any type whatsoever,
including, but not limited to, judgments or fines, ERISA or other excise taxes
and penalties, and amounts paid in settlement (including all interest,
assessments or other charges paid or payable in connection with any of the
foregoing) actually and reasonably incurred by Indemnitee in connection with a
Proceeding.

         1.7 "Delaware Law" means the Delaware General Corporation Law as
amended and in effect from time to time or any successor or other statutes of
Delaware having similar import and effect.

                                       2
<PAGE>

         1.8 "Proceeding" shall mean any pending, threatened or completed
action, hearing, suit or any other proceeding, whether civil, criminal,
arbitrative, administrative, investigative or any alternative dispute resolution
mechanism, including without limitation any such Proceeding brought by or in the
right of the Company. Employment Rights and Duties

         2. Employment Rights and Duties. Subject to any other obligations
imposed on either of the parties by contract or by law, and with the
understanding that this Agreement is not intended to confer employment rights on
either party which they did not possess on the date of its execution, Indemnitee
agrees to serve as a director or officer so long as he is duly appointed or
elected and qualified in accordance with the applicable provisions of the
Restated Certificate of Incorporation (the "Certificate") and Bylaws (the
"Bylaws") of the Company or any subsidiary of the Company and until such time as
he resigns or fails to stand for election or until his employment terminates.

         2.1 Directors' and Officers' Insurance.

         (a) The Company hereby covenants and agrees that, so long as Indemnitee
shall continue to serve as a director or officer of the Company and thereafter
so long as Indemnitee shall be subject to any possible Proceeding, the Company,
subject to Section 2(b), shall maintain directors' and officers' insurance in
full force and effect.

         (b) The Company shall have no obligation to maintain directors' and
officers' insurance or any specific coverages or limits if the Company
determines in good faith that such insurance is not reasonably available, the
premium costs for such insurance is disproportionate to the amount of coverage
provided, or the coverage provided by such insurance is limited by exclusions so
as to provide an insufficient benefit.

         3. Indemnification. The Company shall indemnify, defend, and hold
harmless Indemnitee to the fullest extent not prohibited by Delaware Law and the
provisions of the Certificate and Bylaws of the Company in effect on the date
hereof and as the Delaware Law, the Certificate and Bylaws may from time to time
be amended (but, in the case of any such amendment, only to the extent such
amendment permits the Company to provide broader indemnification rights than
Delaware Law, the Certificate and Bylaws permitted the Company to provide before
such amendment). The right to indemnification conferred in the Bylaws shall be
presumed to have been relied upon by Indemnitee in serving or continuing to
serve the Company as a director or officer and shall be enforceable as a
contract right. Without in any way diminishing the scope of the indemnification
provided by the Bylaws and this Section 3, the Company will indemnify, defend,
and hold harmless Indemnitee if and whenever he is or was a witness, party or is
threatened to be made a witness or a party to any Proceeding, by reason of the
fact that he is or was an Agent or by reason of anything done or not done, or
alleged to have been done or not done, by him in such capacity, against all
Expenses and Liabilities actually and reasonably incurred by Indemnitee or on
his behalf in connection with the investigation, defense, settlement or appeal

                                       3
<PAGE>

of such Proceeding. In addition to, and not as a limitation of, the foregoing,
the rights of indemnification of Indemnitee provided under this Agreement shall
include those rights set forth in Sections 4, 5 and 6 below.

         4. Payment of Expenses.

         4.1 All Expenses incurred by or on behalf of Indemnitee shall be
advanced by the Company to Indemnitee immediately after the receipt by the
Company of a written request for such advance which may be made from time to
time, whether prior to or after final disposition of a Proceeding (unless there
has been a final determination by a court of competent jurisdiction that
Indemnitee is not entitled to be indemnified for such Expenses). Indemnitee's
entitlement to advancement of Expenses shall include those incurred in
connection with any Proceeding by Indemnitee seeking a determination, an
adjudication or an award in arbitration pursuant to this Agreement. The requests
shall reasonably evidence the Expenses incurred by Indemnitee in connection
therewith. Indemnitee hereby undertakes to repay the amounts advanced if it
shall ultimately be determined that Indemnitee is not entitled to be indemnified
pursuant to the terms of this Agreement.

         4.2 Notwithstanding any other provision in this Agreement, to the
extent that Indemnitee has been successful on the merits or otherwise in defense
of any Proceeding, Indemnitee shall be indemnified against all Expenses and
Liabilities actually and reasonably incurred by Indemnitee in connection
therewith.

         4.3. The Company acknowledges that it has agreed to advance Expenses
hereunder in order to promote the business interests of the Company and the
Company agrees with Indemnitee that it will not fail to comply with its
obligation to advance Expenses to Indemnitee as required under this Agreement on
the ground that such advancement violates or would violate Section 13(k) of the
Securities Exchange Act of 1934, as amended, unless the Company has received an
affirmative and unqualified written opinion of Independent Counsel to the effect
that such an advance of Expenses would result in a violation of said Section
13(k).

         5. Procedure for Determination of Entitlement to Indemnification.

         5.1 Whenever Indemnitee believes that he is entitled to indemnification
and/or defense pursuant to this Agreement, Indemnitee shall submit a written
request for indemnification and/or defense (the "Indemnification Request") to
the Company to the attention of the President with a copy to the Secretary. This
request shall include documentation or information which is necessary for the
determination of entitlement to indemnification and/or defense and which is
reasonably available to Indemnitee. Determination of Indemnitee's entitlement to
indemnification and/or defense shall be made no later than 20 days after receipt
of the Indemnification Request. The President or the Secretary shall, promptly
upon receipt of Indemnitee's request for indemnification and/or defense, advise
the Board in writing that Indemnitee has made such request for indemnification.

         5.2 The Indemnification Request shall set forth Indemnitee's selection
of which of the following forums shall determine whether Indemnitee is entitled
to indemnification:

                                       4
<PAGE>

         (1) A majority vote of a quorum consisting of Disinterested Directors.

         (2) A written opinion of an Independent Counsel.

         (3) A majority vote of the stockholders at a meeting at which a quorum
is present, with the shares owned by the person to be indemnified not being
entitled to vote thereon.

         (4) The court in which the Proceeding is or was pending upon
application by Indemnitee.

         The Company agrees to bear any and all costs and expenses incurred by
Indemnitee or the Company in connection with the determination of Indemnitee's
entitlement to indemnification and defense by any of the above forums.

         6. Presumptions and Effect of Certain Proceedings. No initial finding
by the Board, its counsel, Independent Counsel, arbitrators or the stockholders
shall be effective to deprive Indemnitee of the protection of this indemnity,
nor shall a court or other forum to which Indemnitee may apply for enforcement
of this indemnity give any weight to any such adverse finding in deciding any
issue before it. Upon making a request for indemnification, Indemnitee shall be
presumed to be entitled to indemnification under this Agreement and the Company
shall have the burden of proof to overcome that presumption in reaching any
contrary determination. The termination of any Proceeding by judgment, order,
settlement, arbitration award or conviction, or upon a plea of nolo contendere
or its equivalent, shall not, of itself, (a) adversely affect the rights of
Indemnitee to indemnification except as indemnification may be expressly
prohibited under this Agreement, (b) create a presumption that Indemnitee did
not act in good faith and in a manner which he reasonably believed to be in or
not opposed to the best interests of the Company or (c) with respect to any
criminal action or proceeding, create a presumption that Indemnitee had
reasonable cause to believe that his conduct was unlawful.

         7. Remedies of Indemnitee in Cases of Determination not to Indemnify or
to Advance Expenses.

         7.1 In the event that (a) an initial determination is made that
Indemnitee is not entitled to indemnification or defense, (b) advances for
Expenses are not made when and as required by this Agreement, (c) payment has
not been timely made following a determination of entitlement to indemnification
pursuant to this Agreement or (d) Indemnitee otherwise seeks enforcement of this
Agreement, Indemnitee shall be entitled to a final adjudication in an
appropriate court of the State of Delaware of his entitlement to such
indemnification, defense, or advance. Alternatively, Indemnitee at his option
may seek an award in arbitration to be conducted in Salt Lake City by submitting
the dispute to Judicial Arbitration & Mediation Services, Inc. ("JAMS"). If the
parties are unable to agree on a JAMS arbitrator, the parties shall provide JAMS
with a statement of the nature of the dispute and the desired qualifications of
the arbitrator. JAMS will then provide a list of three available arbitrators.
Each party may strike one of the names on the list, and the remaining person
will serve as the arbitrator. If both parties strike the same person, JAMS will
select the arbitrator from the other two names. The arbitration award shall be
made within 90 days following the demand for arbitration. The Company shall not
oppose Indemnitee's right to seek any such adjudication or arbitration award. In

                                       5
<PAGE>

any such proceeding or arbitration Indemnitee shall be presumed to be entitled
to indemnification and defense under this Agreement and the Company shall have
the burden of proof to overcome that presumption.

         7.2 An initial determination, in whole or in part, that Indemnitee is
not entitled to indemnification or defense shall create no presumption in any
judicial proceeding or arbitration that Indemnitee has not met the applicable
standard of conduct for, or is otherwise not entitled to, indemnification or
defense.

         7.3 If an initial determination is made or deemed to have been made
pursuant to the terms of this Agreement that Indemnitee is entitled to
indemnification and defense, the Company shall be bound by such determination in
the absence of (a) a misrepresentation of a material fact by Indemnitee in the
request for indemnification and defense or (b) a specific finding (which has
become final) by a court of competent jurisdiction that all or any part of such
indemnification and defense is expressly prohibited by law.

         7.4 The Company and Indemnitee agree herein that a monetary remedy for
breach of this Agreement, at some later date, will be inadequate, impracticable
and difficult of proof, and further agree that such breach would cause
Indemnitee irreparable harm. Accordingly, the Company and Indemnitee agree that
Indemnitee shall be entitled to temporary and permanent injunctive relief to
enforce this Agreement without the necessity of proving actual damages or
irreparable harm. The Company and Indemnitee further agree that Indemnitee shall
be entitled to such injunctive relief, including temporary restraining orders,
preliminary injunctions and permanent injunctions, without the necessity of
posting bond or other undertaking in connection therewith. Any such requirement
of bond or undertaking is hereby waived by the Company, and the Company
acknowledges that in the absence of such a waiver, a bond or undertaking may be
required by the court.

         7.5 The Company shall be precluded from asserting that the procedures
and presumptions of this Agreement are not valid, binding and enforceable. The
Company shall stipulate in any such court or before any such arbitrator that the
Company is bound by all the provisions of this Agreement and is precluded from
making any assertion to the contrary.

         7.6 Expenses incurred by Indemnitee in connection with his request for
indemnification and defense under, seeking enforcement of or to recover damages
for breach of this Agreement shall be borne and advanced by the Company.

         8. Other Rights to Indemnification. Indemnitee's rights of
indemnification, defense, and advancement of expenses provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may now or
in the future be entitled under applicable law, the Certificate, the Bylaws, an
employment agreement, vote of stockholders or Disinterested Directors, insurance
or other financial arrangements or otherwise.

         9. Limitations on Indemnification. No indemnification pursuant to
Section 3 shall be paid by the Company nor shall Expenses be advanced pursuant
to Section 3:

                                       6
<PAGE>

         9.1 Insurance. To the extent that Indemnitee is reimbursed pursuant to
such insurance as may exist for Indemnitee's benefit. Notwithstanding the
availability of such insurance, Indemnitee also may claim indemnification from
the Company pursuant to this Agreement by assigning to the Company any claims
under such insurance to the extent Indemnitee is paid by the Company. Indemnitee
shall reimburse the Company for any sums he receives as indemnification from
other sources to the extent of any amount paid to him for that purpose by the
Company;

         9.2 Section 16(b). On account and to the extent of any wholly or
partially successful claim against Indemnitee for an accounting of profits made
from the purchase or sale by Indemnitee of securities of the Company pursuant to
the provisions of Section 16(b) or the Securities Exchange Act of 1934, as
amended, and amendments thereto or similar provisions of any federal, state or
local statutory law; or

         9.3 Indemnitee's Proceedings. Except as otherwise provided in this
Agreement, in connection with all or any part of a Proceeding which is initiated
or maintained by or on behalf of Indemnitee, or any Proceeding by Indemnitee
against the Company or its directors, officers, employees or other agents,
unless (a) such indemnification is expressly required to be made by Delaware
Law, (b) the Proceeding was authorized by a majority of the Disinterested
Directors or (c) such indemnification is provided by the Company, in its sole
discretion, pursuant to the powers vested in the Company under Delaware Law.

         10. Duration and Scope of Agreement; Binding Effect. This Agreement
shall continue so long as Indemnitee shall be subject to any possible Proceeding
subject to indemnification and defense by reason of the fact that he is or was
an Agent and shall be applicable to Proceedings commenced or continued after
execution of this Agreement, whether arising from acts or omissions occurring
before or after such execution. This Agreement shall be binding upon the Company
and its successors and assigns (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the
business or assets of the Company) and shall inure to the benefit of Indemnitee
and his spouse, assigns, heirs, devisees, executors, administrators and other
legal representatives.

         11. Notice by Indemnitee and Defense of Claims. Indemnitee agrees
promptly to notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document
relating to any matter which may be subject to indemnification hereunder,
whether civil, criminal, arbitrative, administrative or investigative; but the
omission so to notify the Company will not relieve it from any liability which
it may have to Indemnitee if such omission does not actually prejudice the
Company's rights and, if such omission does prejudice the Company's rights, it
will relieve the Company from liability only to the extent of such prejudice;
nor will such omission relieve the Company from any liability which it may have
to Indemnitee otherwise than under this Agreement. With respect to any
Proceeding:

         (a) The Company will be entitled to participate therein at its own
expense;

                                       7
<PAGE>

         (b) Except as otherwise provided below, the Company jointly with any
other indemnifying party similarly notified shall assume the defense thereof,
with counsel reasonably satisfactory to Indemnitee. After notice from the
Company to Indemnitee of its assumption of such defense, the Company will not be
liable to Indemnitee under this Agreement for any attorney fees or costs
subsequently incurred by Indemnitee in connection with Indemnitee's defense
except as otherwise provided below. Indemnitee shall have the right to employ
his counsel in such Proceeding but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
and the assumption of such defense shall be at the expense of Indemnitee unless
(i) the employment of counsel by Indemnitee has been authorized by the Company,
(ii) Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of the defense of
such action or that the Company's counsel may not be adequately representing
Indemnitee or (iii) the Company shall not in fact have employed counsel to
assume the defense of such action, in each of which cases the fees and expenses
of counsel shall be at the expense of the Company; and

         (c) The Company shall not be liable to indemnify Indemnitee under this
Agreement for any amounts paid in settlement of any action or claim affected
without its consent. The Company shall not settle any action or claim in any
manner without Indemnitee's consent. Neither the Company nor Indemnitee will
unreasonably withhold its or his consent to any proposed settlement.

         11.1 Contribution. In order to provide for just and equitable
contribution in circumstances in which the indemnification provided for in this
Agreement is held by a court of competent jurisdiction to be unavailable to
Indemnitee in whole or part, the Company shall, in such an event, after taking
into account, among other things, contributions by other directors and officers
of the Company pursuant to indemnification agreements or otherwise, and, in the
absence of personal enrichment, acts of intentional fraud or dishonesty or
criminal conduct on the part of Indemnitee, contribute to the payment of
Indemnitee's losses to the extent that, after other contributions are taken into
account, such losses exceed: (i) in the case of a director of the Company or any
of its subsidiaries who is not an officer of the Company or any of such
subsidiaries, the amount of fees paid to the director for serving as a director
during the 12 months preceding the commencement of the Proceeding; or (ii) in
the case of a director of the Company or any of its subsidiaries who is also an
officer of the Company or any of such subsidiaries, the amount set forth in
clause (i) plus 5% of the aggregate cash compensation paid to said director for
service in such office(s) during the 12 months preceding the commencement of the
Proceeding; or (iii) in the case of an officer of the Corporation or any of its
subsidiaries, 5% of the aggregate cash compensation paid to such officer for
service in such office(s) during the 12 months preceding the commencement of
such Proceeding.

         12. Miscellaneous Provisions.

         12.1 Severability; Partial Indemnity. If any provision or provisions of
this Agreement (or any portion thereof) shall be held by a court of competent
jurisdiction to be invalid, illegal or unenforceable for any reason whatever:
(a) such provision shall be limited or modified in its application to the
minimum extent necessary to avoid the invalidity, illegality or unenforceability
of such provision; (b) the validity, legality and enforceability of the

                                       8
<PAGE>

remaining provisions of this Agreement shall not in any way be affected or
impaired thereby; and (c) to the fullest extent possible, the provisions of this
Agreement shall be construed so as to give effect to the intent manifested by
the provision (or portion thereof) held invalid, illegal or unenforceable. If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of any Expenses or Liabilities of any type
whatsoever incurred by him in the investigation, defense, settlement or appeal
of a Proceeding but not entitled to all of the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for such total amount except as to the
portion thereof for which it has been determined pursuant to Section 5 hereof
that Indemnitee is not entitled.

         12.2 Identical Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement.

         12.3 Interpretation of Agreement. It is understood that the parties
hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification and defense to Indemnitee to the fullest extent not now or
hereafter prohibited by law.

         12.4 Headings. The headings of the Sections and paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

         12.5 Pronouns. Use of the masculine pronoun shall be deemed to include
use of the feminine pronoun where appropriate.

         12.6 Modification and Waiver. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by both of the
parties to this Agreement. No waiver of any provision of this Agreement shall be
deemed to constitute a waiver of any of the provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver. No waiver of any
provision of this Agreement shall be effective unless executed in writing.

         12.7 Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i)
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed or (ii) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it
is so mailed:

         (a) If to Indemnitee, to:

                  John N. Lawless, III
                  46816 Pickford
                  Northville, Michigan  48167
                  (248) 348-2980 (fax)

                  with a copy to:

                  Daniel R. Shemke
                  DANIEL R. SHEMKE, P.C.
                  206 South Main Street
                  Suite 206
                  Ann Arbor, Michigan 48104
                  (734) 663-1191 (fax)

                                       9
<PAGE>

         (b) If to the Company to:

                  CEO, Headwaters Incorporated
                  10653 S. Riverfront Parkway, Suite 300
                  South Jordan, UT 84095

                  with a copy to:

                  General Counsel, Headwaters Incorporated
                  10653 S. Riverfront Parkway, Suite 300
                  South Jordan, UT 84095

or to such other address as may have been furnished to Indemnitee by the Company
or to the Company by Indemnitee, as the case may be.

         12.8 Governing Law. The parties agree that this Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, as applied to contracts between Delaware residents entered
into and to be performed entirely within Delaware.

         12.9 Consent to Jurisdiction. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this agreement and agree that any action instituted under this
agreement shall be brought only in the state courts of the State of Delaware.

         12.10 Entire Agreement. This Agreement represents the entire agreement
between the parties hereto, and there are no other agreements, contracts or
understanding between the parties hereto with respect to the subject matter of
this Agreement, except as specifically referred to herein or as provided in
Sections 8 and 2.1 hereof.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

                                             Headwaters Incorporated

                                             By:
                                                 -----------------------------
                                             Its:  Chief Financial Officer

                                             Indemnitee

                                                 -----------------------------
                                                  John N. Lawless, III

                                       10

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