Document:

exv10w7

 

EXHIBIT 10.7

AMENDMENT TO THE AMENDED AND RESTATED MEDIANEWS GROUP, INC.

SHAREHOLDERS’ AGREEMENT

     AMENDMENT, dated as of June 30, 2005 (this “Amendment”), to the Amended and Restated
MediaNews Group, Inc. Shareholders’ Agreement, effective as of January 31, 2000 and amended and
restated as of March 16, 2004 (as amended by this Amendment and as otherwise amended, supplemented
or modified from time to time, the “Agreement”), by and among The Singleton Family Voting
Trust for MediaNews Group, Inc. (the “Singleton Family Voting Trust”), by Howell E. Begle Jr.,
Trustee, The Singleton Family Irrevocable Trust by Howell E. Begle, Jr. and Patricia Robinson,
Trustees, The Singleton Family Revocable Trust by William Dean Singleton and Howell E. Begle, Jr.,
Trustees (the Singleton Family Voting Trust, the Singleton Family Irrevocable Trust and the
Singleton Family Revocable Trust being sometimes collectively referred to herein as the “Singleton
Shareholders”), The Scudder Family Voting Trust for MediaNews Group, Inc. (the “Scudder Family
Voting Trust”) by Jean L. Scudder, Trustee, The Jean L. Scudder Irrevocable Trust by Jean L.
Scudder, Trustee (the “Jean L. Scudder Irrevocable Trust”), the Scudder Family 1987 Trust by Jean
L. Scudder, Trustee (the “Scudder Family 1987 Trust”), Charles Scudder individually, Jean L.
Scudder individually, Carolyn Miller, individually, and as Trustee under The Jennifer Miller
Irrevocable Trust and The Katherine Miller Irrevocable Trust, and Elizabeth H. Difani,
individually, and as Trustee under The Miguel Difani Irrevocable Trust, as Trustee under The
Chipeta Difani Irrevocable Trust, and The Katya Difani Irrevocable Trust (the Scudder Family Voting
Trust, the Jean L. Scudder Irrevocable Trust, the Scudder Family 1987 Trust, Charles Scudder
individually, Jean Scudder individually, Carolyn Miller, individually, and as Trustee for The
Jennifer Miller Irrevocable Trust and The Katherine Miller Irrevocable Trust, and Elizabeth H.
Difani, individually, and as Trustee for The Miguel Difani Irrevocable Trust, as Trustee for The
Chipeta Difani Irrevocable Trust, and The Katya Difani Irrevocable Trust, being sometimes
collectively referred to herein as the “Scudder Shareholders”), Joseph J. Lodovic, IV and MediaNews
Group, Inc., a Delaware corporation (“MNG” or the “Company”).

W
I T N E S S E T H:

          WHEREAS, the parties entered into the Agreement effective as of January 31, 2000 and amended
and restated as of March 16, 2004; and

          WHEREAS, the parties have agreed to amend certain provisions of the Agreement as set forth in
this Amendment;

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

 

 

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     1. Defined Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Agreement.

     2. Amendment to Second Paragraph. The second paragraph of the Agreement is hereby
amended by deleting such paragraph in its entirety and replacing it with the following:

     “WHEREAS, the current equitable ownership of the Class A Common Stock, par value
$0.001 per share, (the “Class A Common Stock”) of MNG is as follows:

	 	 	 	 	 	 	 
	The Singleton Family Revocable
Trust

	 	 	254,858.9900	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	The Singleton Family Irrevocable
Trust

	 	 	786,426.5100	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Joseph J. Lodovic, IV

	 	 	58,199.0000	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Jean L. Scudder, Individually

	 	 	185,817.3750	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Charles Scudder, Individually

	 	 	260,321.3750	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Jean L. Scudder, as Trustee for
Kurt Miller and Gabriel Difani
under The Scudder Family 1987
Trust

	 	 	123,743.7450	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Jean L. Scudder, as Trustee for
Benjamin Fulmer and Nina Fulmer
under The Jean L. Scudder
Irrevocable Trust

	 	 	74,504.0000	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Elizabeth H. Difani, Individually

	 	 	86,773.7917	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Elizabeth H. Difani, as Trustee
for Chipeta Difani Irrevocable
Trust, The Katya Difani
Irrevocable Trust and The Miguel
Difani Irrevocable Trust

	 	 	132,299.6658	 	 	Shares of Class A
Common Stock
	 
	 	 	 	 	 	 
	Carolyn Miller, Individually

	 	 	59,275.1825	 	 	Shares of Class A
Common Stock

 

 

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	Carolyn Miller, as Trustee for
the Jennifer Miller Irrevocable
Trust and the Katherine Miller
Irrevocable Trust

	 	 	118,550.3650	 	 	Shares of Class A
Common Stock

     Each such shareholder and each transferee of such shareholder pursuant to Section 3.01
that executes a written acknowledgement that such shareholder is bound hereby is, so long
as they continue to hold such shares, referred to herein as a “Shareholder.””

     3. Amendment to Section 3.01. The fourth line of Section 3.01 of the Agreement is
hereby amended by deleting the phrase “of the Singleton Shareholders or Scudder Shareholders” and
replacing it with the following phrase:

     “Shareholder”

     4. Amendment to Section 7.02. Section 7.02 of the Agreement is hereby amended (which
Section, as amended, shall be deemed to apply to actions taken at the Company’s June 29, 2005 Board
meeting) by deleting such section in its entirety and replacing it with the following:

“7.02 Negative Covenants. MNG covenants that it shall not do, take or permit any
of the following actions, unless the same shall have first been approved by all directors
then serving on MNG’s Board of Directors (or on any committee of the Board of Directors
appointed to consider such action with the approval of all directors then serving on MNG’s
Board of Directors), excluding any director that has recused him or herself from voting on
the particular action, or by unanimous approval of the full Executive Committee of MNG’s
Board of Directors as appointed by all directors then serving on MNG’s Board of Directors,
or by the holders of not less than 75% of the shares of Class A Common Stock then
outstanding, and each of the parties to this Agreement covenant that they shall cause MNG
to refrain from such actions, unless they have been approved in the manner provided above:

	 	(a)	 	Declare and pay any dividends on its common stock;
	 
	 	(b)	 	Purchase or redeem any of its capital stock (other than
pursuant to MNG’s Career RSU Plan or agreements approved by all directors then
serving on MNG’s Board of Directors (or on any committee of the Board of
Directors appointed to consider such action with the approval of all directors
then serving on MNG’s Board of Directors), excluding any director that has
recused him or herself from voting on the particular action);
	 
	 	(c)	 	Adopt annual capital or annual operating budgets;
	 
	 	(d)	 	Except as otherwise provided in the Certificate of
Incorporation, acquire any subsidiary, or liquidate or dissolve itself, or
merge or

 

 

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	 	 	 	consolidate, or cause or permit any subsidiary to be merged or
consolidated, with any corporation (other than another subsidiary of MNG), or
enter into any transaction under which any class of its stock would be
acquired or the stock of any subsidiary would be sold, or sell, lease,
encumber, convey, transfer or otherwise dispose of all or any substantial part
of its assets or those of any subsidiary(other than to another subsidiary of
MNG), or amend its
Certificate of Incorporation or Bylaws, or permit any subsidiary to issue
capital stock to any person other than MNG (or its subsidiaries) or elect
any directors of any subsidiary;
	 
	 	(e)	 	Issue equity securities of MNG, or securities of a class
convertible into equity securities of MNG, or incur obligations of MNG to
issue additional equity securities;
	 
	 	(f)	 	Increase the aggregate borrowing capacity of MNG and its
subsidiaries by more than $10 million in any fiscal year under its bank credit
facilities;
	 
	 	(g)	 	Enter into or acquiesce in any agreement which limits or
restricts the rights of MNG or any of the parties to this Agreement to comply
with the provisions of this Agreement; or
	 
	 	(h)	 	Replace or discharge the chief executive officer of MNG.”

     5. Amendment to Section 8.06. Section 8.06 of the Agreement is hereby amended by
inserting the following after the first sentence of Section 8.06:

“Notwithstanding the foregoing, a waiver of rights of all or certain Shareholders hereunder
shall be effective if executed by such Shareholders holding at least 75% of shares held by
all such Shareholders.”

     6. Amendment to Section 8.07. Section 8.07 of the Agreement is hereby amended by
deleting the phrase “all of the parties hereto” and replacing it with the following phrase:

“Shareholders holding 75% of all shares held by Shareholders.”

     7. Approval of MNG Career RSU Plan. The shareholders of MNG party hereby authorize
(i) the amendment of MNG’s Certificate of Incorporation to authorize up to 150,000 shares of Class
B Common Stock having such rights and preferences as may be approved by the Board of Directors,
(ii) the adoption by MNG or a Career RSU Plan having such terms and conditions as the Board of
Directors shall approve and (iii) the issuance of RSUs under the MNG Career RSU Plan providing for
the issuance of up to 150,000 shares of Class B Common Stock.

     8. Continuing Effect; No Other Amendments. Except as expressly set forth in this
Amendment, all of the terms and provisions of the Agreement are and shall remain in full force and
effect and are hereby ratified by the parties, and the parties shall continue to be bound by all of
such terms and provisions. The amendments

 

 

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provided for herein are limited to the specific provisions of the Agreement specified herein and shall not constitute an amendment of any other
provisions of the Agreement.

     9. Effect of Amendment. On the date first written above, the Agreement shall be
amended as provided herein.

     10. Governing Law. This Amendment shall be construed and interpreted in accordance
with the internal laws of the State of Delaware without regard to the conflict of laws provisions
thereof.

     11. Counterparts. This Amendment may be executed in one or more counterparts and by
facsimile signatures, each of which shall be deemed to be an original, and all of which taken
together shall be deemed to be one and the same instrument.

          IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date and year first
shown above.

	 	 	 	 	 
	 	 	MEDIANEWS GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ W. Dean Singleton
	 

	 	 	 	 
	 

	 	 	 	W. Dean Singleton, Vice Chairman,
	 

	 	 	 	Chief Executive Officer and President
	 
	 	 	 	 
	 	 	THE SINGLETON FAMILY VOTING TRUST FOR MEDIANEWS GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Howell E. Begle, Jr.
	 

	 	 	 	 
	 

	 	 	 	Howell E. Begle, Jr., Trustee
	 
	 	 	 	 
	 	 	THE SINGLETON FAMILY IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Howell E. Begle, Jr.
	 

	 	 	 	 
	 

	 	 	 	Howell E. Begle, Jr., Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Patricia Robinson
	 

	 	 	 	 
	 

	 	 	 	Patricia Robinson, Trustee

 

 

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	 	 	THE SINGLETON FAMILY REVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ William Dean Singleton
	 

	 	 	 	 
	 

	 	 	 	William Dean Singleton, Trustee
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Howell E. Begle, Jr.
	 

	 	 	 	 
	 

	 	 	 	Howell E. Begle, Jr., Trustee
	 
	 	 	 	 
	 

	 	 	 	/s/ Joseph J. Lodovic, IV
	 	 	 
	 

	 	 	 	Joseph J. Lodovic, IV, Individually
	 
	 	 	 	 
	 	 	THE SCUDDER FAMILY VOTING TRUST FOR MEDIANEWS GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Jean L. Scudder
	 

	 	 	 	 
	 

	 	 	 	Jean L. Scudder, Trustee
	 
	 	 	 	 
	 	 	THE JEAN L. SCUDDER IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Jean L. Scudder
	 

	 	 	 	 
	 

	 	 	 	Jean L. Scudder, Trustee
	 
	 	 	 	 
	 	 	THE SCUDDER FAMILY 1987 TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Jean L. Scudder
	 

	 	 	 	 
	 

	 	 	 	Jean L. Scudder, Trustee
	 
	 	 	 	 
	 

	 	 	 	/s/ Jean L. Scudder
	 	 	 
	 

	 	 	 	Jean L. Scudder, Individually
	 
	 	 	 	 
	 

	 	 	 	/s/ Charles Scudder
	 	 	 
	 

	 	 	 	Charles Scudder, Individually
	 
	 	 	 	 
	 

	 	 	 	/s/ Carolyn Miller
	 	 	 
	 

	 	 	 	Carolyn Miller, Individually

 

 

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	 	 	THE JENNIFER MILLER IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Carolyn Miller
	 

	 	 	 	 
	 

	 	 	 	Carolyn Miller, Trustee
	 
	 	 	 	 
	 	 	THE KATHERINE MILLER IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Carolyn Miller
	 

	 	 	 	 
	 

	 	 	 	Carolyn Miller, Trustee
	 
	 	 	 	 
	 	 	THE MIGUEL DIFANI IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Elizabeth H. Difani
	 

	 	 	 	 
	 

	 	 	 	Elizabeth H. Difani, Trustee
	 
	 	 	 	 
	 	 	THE CHIPETA DIFANI IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Elizabeth H. Difani
	 

	 	 	 	 
	 

	 	 	 	Elizabeth H. Difani, Trustee
	 
	 	 	 	 
	 	 	THE KATYA DIFANI IRREVOCABLE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Elizabeth H. Difani
	 

	 	 	 	 
	 

	 	 	 	Elizabeth H. Difani, Trustee
	 
	 	 	 	 
	 

	 	 	 	/s/ Elizabeth H. Difani
	 	 	 
	 

	 	 	 	Elizabeth H. Difani, Individuallyexv10w24

 

EXHIBIT 10.24

SHAREHOLDER AGREEMENT

     This SHAREHOLDER AGREEMENT, dated as of July 1, 2005, between MediaNews Group, Inc., a
Delaware corporation (the “Company”), and Joseph J. Lodovic, IV (“Shareholder”), as
amended as of September 22, 2005. Capitalized terms used but not defined elsewhere herein are
defined in Section 4.

WITNESSETH:

     WHEREAS, Shareholder owns approximately 2.53% of the Company’s outstanding common stock; and

     WHEREAS, the Company and Shareholder have entered into this Agreement to provide liquidity to
Shareholder and other Permitted Lodovic Holders under certain circumstances, and to enable the
Company to repurchase Shareholder’s shares of common stock, under certain circumstances.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Company and
Shareholder hereby agree as follows:

     1. Put and Call.

     (a) Following the termination of Shareholder’s employment with the Company (i) on or after
December 31, 2009 (for any reason), (ii) upon (A) Shareholder’s death or disability pursuant to
Section 5 of the Employment Agreement or (B) the mutual agreement of Shareholder and the Company,
(iii) by Shareholder pursuant to clause (a) or (b) of Section 7 of the Employment Agreement, (iv)
by the Company in breach of the Employment Agreement, or (v) for any reason upon or following a
Change in Control, Shareholder or his estate or legal representatives (as the case may be) shall
have the right to require the Company to purchase all (but not less than all) Eligible Shares,
which right shall be exercisable by Shareholder or any Permitted Lodovic Holder upon written notice
to the Company during the one hundred eighty (180) days following such termination. Any purchase
pursuant to the prior sentence shall be made at 100% of Fair Market Value of the Eligible Shares so
purchased, provided that in the case of an exercise of the right described in clause (i) of this
Section 1(a) in connection with termination of employment between December 31, 2009 and June 30,
2010, the Fair Market Value of 5% of Eligible Shares so purchased shall be determined as of the
earlier of (x) July 1, 2010 and (y) the date Shareholder or his estate or legal representatives (as
the case may be) has knowledge of the occurrence of a Change in Control (the “Delayed Fair
Market Value”). If the proviso to the preceding sentence is applicable, and the date of
determination of the Delayed Fair Market Value is after the date of closing of the purchase, then
(i) the purchase price for 100% of Eligible Shares shall be paid at the closing of the purchase as
if the Fair Market Value on the date of termination of Employment (the “Initial Fair Market Value”)
were the Delayed Fair Market Value, (ii) at the closing 5% of the purchase price shall be deposited
in escrow with an escrow agent reasonably acceptable to the Shareholder and the Company, (iii)
promptly following determination of the Delayed Fair Market Value, the escrow agent shall pay the
amount held in escrow (up to the amount of the Delayed Fair Market Value of 5% of Eligible

 

 

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Shares, plus interest as provided below) to Shareholder and, if the amount held in escrow is
greater than the payment to the Shareholder, the escrow agent shall pay the balance to the Company,
and (iv) if the amount held in escrow is less than the amount of the Delayed Fair Market Value of
5% of Eligible Shares, plus interest as provided below, the Company shall pay to the Shareholder
the amount of the shortfall. The payment to the Shareholders of the portion of the purchase price
paid to the Shareholder following determination of the Delayed Fair Market Value shall be
accompanied by interest thereon at an annual rate of LIBOR plus 6%. The right of Shareholder or
any Permitted Lodovic Holder to require the Company to purchase such Eligible Shares pursuant to
this paragraph (a) shall terminate upon the occurrence of an Eligible IPO unless previously
exercised.

     (b) Following any termination of Shareholder’s employment with the Company other than
terminations described in the preceding paragraph (a) of this Section 1, (i) the Company shall have
the right to purchase all (but not less than all) Eligible Shares, which right shall be exercisable
by the Company upon written notice to Shareholder or his estate or legal representatives (as the
case may be) during the one hundred eighty (180) days following such termination, and (ii)
Shareholder and Permitted Lodovic Holders shall have the right to require the Company to purchase
all (but not less than all) Eligible Shares, which right shall be exercisable by written notice
during the one hundred eighty (180) day period commencing on the earlier of (x) July 1, 2010 and
(y) the date Shareholder or his estate or legal representatives (as the case may be) has knowledge
of the occurrence of a Change in Control (occurring after the date of termination of Shareholder’s
employment with the Company). Any purchase pursuant to the prior sentence shall be made at the
following stated percentages of Fair Market Value of the Eligible Shares so purchased: if
Shareholder’s employment with the Company terminates on or after December 31, 2009, 100%; for
termination on or after December 31, 2008 and before December 31, 2009, 95%; for termination on or
after December 31, 2007 and before December 31, 2008, 90%; for termination on or after December 31,
2006 and before December 31, 2007, 85%; for termination on or after December 31, 2005 and before
December 31, 2006, 80%; and for termination on or after December 31, 2004 and before December 31,
2005, 75%. Notwithstanding the foregoing, the percentage of Fair Market Value shall be deemed to
be 100% upon and following the occurrence of a Change in Control.

     (c) With regard to any exercise of any right of the Company to purchase Eligible Shares
pursuant to clause (i) of the first sentence of Section 1(b) (a “Call Right”), the Company
may, upon written notice accompanying notice of such exercise, elect to pay the exercise price in
installments, the first of which shall be payable at the closing of the purchase, with subsequent
installments due on each successive anniversary of the closing (a “Payment Date”). The
amount due on each Payment Date (including the date of the closing of the purchase) shall be (x) an
amount determined by multiplying the total purchase price by the percentages specified in the chart
below or (y) if less, the remaining unpaid balance of the purchase price. For this purpose, the
Leverage Ratio shall be determined as of the end of the fiscal quarter of the Company ending at
least 60 days prior to the exercise of the Call Right and each subsequent Payment Date, as
applicable, and without regard to any debt constituting obligations under this Agreement, until all
the Eligible Shares subject to the Call Right are paid for.

 

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	Leverage Ratio	 	Percentage
	3:1 or less
	 	100%
	Greater than 3:1 and equal to or less than 3.5:1
	 	60%
	Greater than 3.5:1 and equal to or less than 4:1
	 	50%
	Greater than 4.1 and equal to or less than 4.5:1
	 	40%
	Greater than 4.5:1 and equal to or less than 5:1
	 	30%
	Greater than 5:1 and equal to or less than 5.5:1
	 	20%
	Greater than 5.5:1 and equal to or less than 6:1
	 	10%
	Greater than 6:1
	 	0%

     Notwithstanding the foregoing, (x) the percentages in the chart shall all be deemed to be 100%
following the first to occur of (i) the occurrence of a Change in Control, (ii) the consummation of
an Eligible IPO, or (iii) January 1, 2010 and (y) all remaining payments of purchase price pursuant
to the exercise of a Call Right shall be payable on the first to occur of January 1, 2010, the date
of the occurrence of a Change in Control or the date of consummation of an Eligible IPO occurring
after the exercise of such Purchase Right.

     (d) (i) The closing of any purchase of Eligible Shares pursuant to this Section 1 shall
(subject to clause (ii) below) take place on the later of (x) the thirtieth day after notice of
exercise of a right of Shareholder to require the Company to purchase Eligible Shares pursuant to
paragraphs (a) or (b) of this Section 1 (a “Put Right”) or of a Call Right (Call Rights and
Put Rights are referred to collectively as “Purchase Rights”) is given, (y) in the case of
the exercise of a Put Right, the fifth business day after the condition described in clause (ii) of
this paragraph (d) is first satisfied and (z) the fifth business day after expiration or
termination of any applicable waiting period under the HSR Act. At any such closing, the Eligible
Shares shall be delivered to the Company free and clear of all liens, claims and other
encumbrances.

          (ii) If, (x) at the time of the exercise of a Put Right, the Leverage Ratio is greater than
5:1, then (without limitation of Section 2 below) the consummation of the purchase of Eligible
Shares shall be deferred until such time as the Leverage Ratio is equal to or less than 5:1
(without regard to any debt constituting obligations under this Agreement), or (y) at the time of
payment of the purchase price pursuant to a Put Right, the purchase by the Company of Eligible
Shares pursuant to such Put Right would violate Section 160(a) of the General Corporation Law of
the State of Delaware, then the purchase of such portion of such Eligible Shares as would result in
such violation shall be deferred until such purchase would not so violate such provision,
provided that (I) following receipt of notice of the exercise of a Put Right that is
affected by this clause (d)(ii), the Company shall not repurchase any Common Stock (either directly
or thorough any subsidiary or any other Person, but excluding repurchases of shares issued under
the RSU Plan, Section 2 hereof or under Section 10 of the Employment Agreement dated the date
hereof between the Company and William Dean Singleton) or pay or declare any dividends or other
distributions on its Common Stock until the purchase of Eligible Shares pursuant to such Put Right
has been consummated and the entire purchase price therefore paid, (II) in no event shall the
making of any payment be deferred as a result of sub-clause (x) of this clause (d)(ii) beyond the
first to occur of (a) the third business day following the second anniversary of the exercise of
the Put Right or (b) the date of the occurrence of a Change in Control or the consummation of an
eligible IPO and (III) in the event that this clause (d)(ii) would result in the deferral of
payment of all or any portion of the purchase price pursuant to a

 

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Put Right, Shareholder by notice to the Company may rescind the exercise of such Put Right
(which Put Right may be exercised at a later date in accordance with this Agreement).

     (e) (i) The Company and Shareholder agree that from and after the exercise of any Purchase
Right, each shall use their respective commercially reasonable efforts to take or cause to be taken
all actions and to do or cause to be done all things necessary, proper or advisable to consummate
the closing thereof, and to cooperate in connection with the foregoing, including using their
respective commercially reasonable efforts to obtain all approvals that are required to be obtained
under any legal requirement, to effect all necessary registrations, filings and submissions of
information requested by any governmental authority and, subject to paragraph (d)(ii) of this
Section 1, obtain all consents required under agreements binding upon the Company or its
subsidiaries.

          (ii) As soon as practicable after the exercise of any Purchase Right, the Company and
Shareholder will, and will cause their respective affiliates to, prepare and file all documents
with the Federal Trade Commission and the United States Department of Justice (if any) that are
required to comply with the HSR Act in connection with the transactions contemplated hereby. The
Company and Shareholder will (and will cause their respective affiliates to) in good faith promptly
furnish all materials reasonably requested by any of the regulatory agencies having jurisdiction
over such filings. The Company and Shareholder will (and will cause their respective affiliates
to) request early termination of the waiting period under the HSR Act. All fees payable to the
Federal Trade Commission or the Department of Justice (or otherwise to the U.S. government) in
connection with such filing shall be paid by the Company.

     (f) Any payment of the purchase price pursuant to the exercise of a Purchase Right that is
made on a date subsequent to the date it would otherwise be made pursuant to paragraph (d)(i)
(whether as a result of paragraph (c) or paragraph (d)(ii) of this Section 1 or for any other
reason) (the “Original Payment Date”) shall accrue interest from the Original Payment Date
through (but excluding) the date made at an annual rate of LIBOR plus 6%, payable quarterly in
arrears on the fifth business day following the end of each calendar quarter.

     (g) Nothing in this Section 1 shall be deemed to restrict Shareholder or any Permitted Lodovic
Holder from selling or otherwise transferring Eligible Shares prior to the exercise of a Purchase
Right. All Eligible Shares transferred to a Permitted Lodovic Holder shall remain subject to the
terms and provisions of this Section 1, and Eligible Shares that are transferred to any other
Person shall not be subject to the terms of this Section 1. Until Eligible Shares are transferred
to a Person who is not a Permitted Lodovic Holder, the certificates representing such shares shall
bear the following legend (or a legend of similar effect):

“THIS CERTIFICATE AND THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE
PROVISIONS OF A SHAREHOLDER AGREEMENT. A COPY OF THAT AGREEMENT, AS IT MAY BE
AMENDED FROM TIME TO TIME, IS MAINTAINED WITH THE CORPORATE RECORDS OF THE COMPANY
AND IS AVAILABLE FOR INSPECTION AT THE EXECUTIVE OFFICES OF THE COMPANY.”

 

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     2. Right to Sell Shares following Disability. Notwithstanding any provision of this
Agreement, in the event that (x) Shareholder’s employment with the Company terminates as a result
of Shareholder’s disability pursuant to the second paragraph of Section 5 of his Employment
Agreement, or (y) at any time following the termination of Shareholder’s employment with the
Company for any reason Shareholder is or becomes Disabled, Shareholder (or any Permitted Lodovic
Holder) shall have the right (in the case of the exercise of this right pursuant to clause (y)
above, so long as Shareholder remains Disabled) commencing the day that is six months and one day
following termination of employment, to require the Company to purchase Common Stock from
Shareholder (or such Permitted Lodovic Holder) from time to time during Shareholder’s lifetime
(subject to lawfully available funds) in an aggregate amount not to exceed $1 million in any fiscal
year of the Company, or such lesser amount of Common Stock (if any) as the Company may purchase
without violating any covenant limiting “restricted payments” contained in any instrument governing
debt of the Company. The purchase price for Common Stock purchased by the Company under this
Section 2 shall be the Fair Market Value of the Common Stock so purchased. Such right shall be
exercised by written notice of Shareholder (or such Permitted Lodovic Holder) given to the Company,
and may be exercised no more than 2 times in any fiscal year of the Company. The closing of any
such purchase shall take place within 30 days of the giving of a notice of exercise by Shareholder
(or such Permitted Lodovic Holder). The provisions of Section 1(e)(i) shall apply to transaction
pursuant to this Section 2 mutatis mutandis. The right of Shareholder or any Permitted
Lodovic Holder to require the Company to purchase Common Stock pursuant to this Section 2 shall
terminate upon the occurrence of an Eligible IPO unless previously exercised.

     3. Rules 144 and 144A. If the Company shall have consummated an Eligible IPO, the
Company covenants that it will file the reports required to be filed by it under the Securities Act
and the Exchange Act and the rules and regulations adopted by the Commission thereunder, and it
will take such further action as any holder of Eligible Shares may reasonably request, all to the
extent required from time to time to enable such holder to sell Eligible Shares without
registration under the Securities Act within the limitation of the exemptions provided by (i) Rules
144, 144A or Regulation S under the Securities Act, as such rules may be amended from time to time,
or (ii) any similar rule or regulation hereafter adopted by the Commission. Upon the request of
any holder of Eligible Shares, the Company will deliver to such holder a written statement as to
whether it has complied with such requirements and, if not, the specifics thereof.

     4. Certain Definitions.

     (a) “Average Market Price” per share of Common Stock on any date means the average of
the daily Closing Prices of Common Stock for the 10 consecutive Trading Days prior to such date.

     (b) “Beneficial Owner” and “Beneficially Own” have the meaning ascribed
thereto in Rule 13d-3 under the Exchange Act.

     (c) “Change in Control” shall be deemed to occur on:

          (i) the date that both

 

6

      (A) any Person (or other group of Persons acting in concert) with a view to the
acquisition, holding or disposition of securities of the Company, becomes, directly
or indirectly, the Beneficial Owner of securities of the Company representing 35% or
more of the voting power of all Voting Securities of the Company, other than by
reason of (x) the acquisition of Company securities by the Company or any of its
subsidiaries or any employee benefit plan of the Company or any of its subsidiaries,
or (y) the acquisition of Company securities by Permitted Holders, and

      (B) Permitted Holders cease to be, directly or indirectly, the Beneficial
Owners of Voting Securities of the Company having a voting power equal to or greater
than that of such Person or group;

   (ii) the consummation of a merger or consolidation of the Company with another Person
unless

      (A) the shareholders of the Company, immediately prior to the merger or
consolidation, Beneficially Own, immediately after the merger or consolidation, shares entitling such shareholders to more than 50% of the voting power of all
Voting Securities of the corporation or other entity surviving the merger or
consolidation in substantially the same proportions as their ownership, immediately
prior to such merger or consolidation, of Voting Securities of the Company; and

      (B) the members of the Board of Directors of the Company, immediately prior to
the merger or consolidation, constitute, immediately after the merger or
consolidation, a majority of the board of directors of the Person issuing cash or
securities in the merger;

   (iii) the date on which a majority of the members of the Board of Directors of the
Company consist of persons other than Current Directors;

   (iv) the consummation of a sale or other disposition of all or substantially all of the
assets of the Company unless:

      (A) the shareholders of the Company, immediately prior to such sale or other
disposition, Beneficially Own, immediately after such sale or other disposition, shares entitling such shareholders to 50% or more of the voting power of all Voting
Securities of the corporation or other entity acquiring such assets in substantially
the same proportions as their ownership immediately prior to the consummation of
such sale or other disposition, of Voting Securities of the Company; and

      (B) the members of the Board of Directors of the Company, immediately prior to
such sale or other disposition, constitute, immediately after the sale or other
disposition, a majority of the board of directors of the Person acquiring such
assets; or

 

7

   (v) the date of approval by the shareholders of the Company of a plan of complete
liquidation of the Company.

     (d) “Closing Price” means, as applied to Common Stock on any date, the last reported
sales price, regular way, per share of such stock on such day, or if no such sale takes place on
such day, the average of the closing bid and asked prices, regular way, in each case, as reported
in the principal consolidated transaction reporting system with respect to securities listed on the
principal national securities exchange on which Common Stock is listed, or if not listed on a
national securities exchange, quoted on the national market system of The NASDAQ Stock Market (or
any successor or similar system).

     (e) “Common Stock” means all common stock of the Company. In the event that the
Common Stock shall be changed into or exchanged for a different number or kind of shares of capital
stock or other securities of the Company or of another corporation or other entity as a result of a
merger, consolidation, partial or complete liquidation, sale of assets, distribution to
stockholders or otherwise, the Common Stock shall include such different capital stock or other
securities.

     (f) “Consolidated Operating Cash Flow” shall have the meaning specified in the Senior
Credit Facility from time to time, and shall include successor definitions contained therein having
a similar meaning and use therein. It is intended that Consolidated Operating Cash Flow reflect
all pro forma adjustments made thereto under the Senior Credit Facility. Furthermore, regardless
of whether an adjustment is made under the Senior Credit Facility, to the extent that a capital
project that exceeds $2 million in cost and that is expected to result in aggregate cost savings is
approved, for purposes of determining Consolidated Operating Cash Flow appropriate pro forma
adjustments shall be made to Consolidated Operating Cash Flow in order that all debt to be incurred
to finance such capital expenditure shall be deemed to have been incurred and such cost savings
shall be deemed to be recognized commencing the first day of the four fiscal quarter period ending
the last day of the fiscal quarter ending immediately prior to the approval of such capital
expenditure for which Required Financial Information has been delivered under the Senior Credit
Facility.

     (g) “Current Director” shall mean any member of the Board of Directors of the Company
on the date hereof and any member whose nomination or election has been approved by a majority of
Current Directors then on the Board of Directors of the Company.

     (h) “Disabled” means Executive’s permanent inability to perform the material and
substantial duties of his regular occupation.

     (i) “EBITDA” means, at any date of determination, the Consolidated Operating Cash Flow
of the Company for the immediately preceding four fiscal quarters of the Company for which Required
Financial Information has been delivered under the Senior Credit Facility.

     (j) “Eligible IPO” means (x) a public offering by the Company or its shareholders of
shares of Common Stock pursuant to a registration statement under the Securities Act of 1933 that
results in (i) aggregate cash proceeds to the Company and selling shareholders of an amount equal
to or greater than $50 million (before deduction of underwriting discounts and commissions) and
(ii) the listing of Common Stock on any national securities exchange or

 

8

quotation on the national market system of The Nasdaq Stock Market (or any successor or
similar system) or (y) consummation of any transaction that results in (i) the listing of Common
Stock on any national securities exchange or quotation on the national market system of The NASDAQ
Stock Market (or any successor or similar system) and (ii) shares Common Stock having a market
value of at least $50 million held by Persons that are not “affiliates” of the Company (as such
term is used in Rule 144 under the Securities Act of 1933).

     (k) “Eligible Shares” means all shares of Common Stock as to which both of the
following conditions are satisfied: (i) such shares are owned by Shareholder on the date hereof and
(ii) continue to be owned by Shareholder or any Lodovic Permitted Holder on the date of termination
of Shareholder’s employment with the Company.

     (l) “Employment Agreement” means the Employment Agreement dated the date hereof,
between Shareholder and the Company, as in effect from time to time.

     (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (n) “Fair Market Value” with respect to any Common Stock means the fair market value
of such Common Stock as of the date of exercise of a Purchase Right, or, to the extent provided in
Section 1(a), at the time provided in Section 1(a). Prior to the occurrence of Eligible IPO, fair
market value of a share of Common Stock, on any date, shall be an amount equal to (A)(i) the
product of the Representative Multiple, multiplied by EBITDA, minus (ii) consolidated long-term
debt of the Company as of such date, divided by (B) the total number of shares of Common Stock
outstanding (including Common Stock issuable (x) pursuant to the Company’s Career RSU Plan to the
extent RSUs have vested, (y) under options and rights to purchase Common Stock, determined using
the treasury stock method, and (z) under securities convertible into Common Stock);
provided, however, that in the event that the Fair Market Value does not at any
time reasonably approximate the fair market value of a share of Common Stock, the formula described
above shall be amended in such manner as the Board of Directors of the Company reasonably
determines, with the approval of Shareholder (such approval not to be unreasonably withheld), so
that Fair Market Value reasonably approximates such fair market value. Following an Eligible IPO,
fair market value of Common Stock shall be the Average Market Price of Common Stock as of the date
of determination, provided that if following an Eligible IPO on the day of determination
Common Stock is not listed or traded on a national securities exchange or the national market
system of The NASDAQ Stock Market (or any successor or similar system) or has not been listed or
traded for the 10 consecutive Trading Days prior to such date, “Average Market Price” shall be the
Fair Market Value determined pursuant to the first sentence of this definition as if no Eligible
IPO has occurred.

     (o) “HSR Act” means the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as
amended.

     (p) “Leverage Ratio” is defined in the Indenture dated as of January 26, 2004 between
the Company and The Bank of New York.

     (q) “LIBOR” shall mean on any day the weighted average of the “Eurodollar Base Rate”
under the Senior Credit Facility (or successor definitions contained therein having a

 

9

similar meaning or use therein) applicable to outstanding borrowings of the Company thereunder
on such date.

     (r) “Multiple” means, at any date of determination for any company, a number equal to
the quotient of (i) long-term debt (as reflected on the most recently available balance sheet of
such company) plus market capitalization of such company on such date, divided by (ii) earnings of
such company before interest, taxes, depreciation, amortization and any one-time or extraordinary
items (such as restructuring charges) for the four most recent fiscal quarters of such company for
which financial statements of such company are available, as determined by the Board.

     (s) “Permitted Holders” means (i) each of William Dean Singleton, Richard B. Scudder,
Shareholder and their respective spouses, ancestors, siblings, descendants (including children or
grandchildren by adoption) and the descendants of any of their siblings; (ii) in the event of the
incompetence or death of any of the Persons described in clause (i), such Person’s estate,
executor, administrator, committee or other personal representative, in each case who at any
particular date shall beneficially own or have the right to acquire, directly or indirectly, the
relevant Common Stock; (iii) any trust created for the benefit of the Persons described in clause
(i) or (ii) or any trust for the benefit of any such trust; or (iv) any Person controlled by any of
the Persons described in clause (i), (ii) or (iii). For purposes of this definition, “control,” as
used with respect to any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through
ownership of voting securities or by contract or otherwise.

     (t) “Permitted Lodovic Holder” means (i) each of Shareholder and his spouse,
ancestors, siblings, descendants (including children or grandchildren by adoption) and the
descendants of any of their siblings; (ii) in the event of the incompetence or death of any of the
Persons described in clause (i), such Person’s estate, executor, administrator, committee or other
personal representative, in each case who at any particular date shall beneficially own or have the
right to acquire, directly or indirectly, the relevant Common Stock; (iii) any trust created for
the benefit of the Persons described in clause (i) or (ii) or any trust for the benefit of any such
trust; or (iv) any Person controlled by any of the Persons described in clause (i), (ii) or (iii).
For purposes of this definition, “control,” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting securities or by contract or
otherwise.

     (u) “Person” means any individual, corporation, limited liability company,
partnership, joint venture, incorporated or unincorporated association, joint-stock company or
trust or other entity of any kind.

     (v) “Representative Multiple” shall mean, at any date of determination, the average of
the Multiples of Gannett Co. Inc., Lee Enterprises Inc., Knight-Ridder, Inc., The McClatchy Co. and
Journal Register Co., provided that in the event that any such company shall be acquired or cease
to be publicly traded, its name shall be deemed to be deleted from this definition and, if as a
result thereof there are less than three companies referred to in this definition, the Board of
Directors of the Company, with the approval of the Shareholder (not to be unreasonably

 

10

withheld), shall select another publicly traded newspaper company, which shall be deemed to be
added to this definition such that this definition refers to three companies.

     (w) “Required Financial Information” shall have the meaning specified in the Senior
Credit Facility, and shall include successor definitions therein having a similar meaning and use
therein.

     (x) “RSU Plan” means the MediaNews Group, Inc. Career RSU Plan.

     (y) “Senior Credit Facility” shall means the Credit Agreement dated as of August 30,
2004, among the Company, the Guarantors identified therein, Bank of America, N.A., as
Administrative Agent, and the other financial institutions and lenders identified therein, as
amended, substituted, refinanced, renewed or replaced from time to time without regard to the
amount of credit extended thereunder or the identity of the borrowers, lenders or agents with
respect thereto.

     (z) “Securities Act” means the Securities Act of 1933, as amended.

     (aa) “Trading Day” means, as applied to Common Stock, any day on which the principal
consolidated transaction reporting system with respect to securities listed or traded on the
principal national securities exchange or the national market system of The NASDAQ Stock Market (or
any successor or similar system) is open for the trading of securities generally and with respect
to which information regarding the sale of securities included therein, or with respect to which
sales information is reported, is generally available.

     (bb) “Voting Securities” means, as to a Person, securities of such Person having the
right under ordinary circumstances to vote at an election of the Board of Directors (or other
governing body).

     5. Miscellaneous.

     (a) Remedies. Any Person having rights under any provision of this Agreement shall be
entitled to enforce such rights specifically, to recover damages caused by reason of any breach of
any provision of this Agreement and to exercise all other rights granted by law. The parties
hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion apply to any court of
law or equity of competent jurisdiction (without posting any bond or other security) for specific
performance and for other injunctive relief in order to enforce or prevent violation of the
provisions of this Agreement.

     (b) Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

     (c) Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or legal holiday in the state in which the

 

11

Company’s chief-executive office is located, the time period shall automatically be extended
to the business day immediately following such Saturday, Sunday or legal holiday.

     (d) Notices. All communications and notices made pursuant to this Agreement shall be
in writing and delivered by hand or by fax or sent by a nationally recognized overnight carrier
(such as Federal Express) as follows:

	 	(i)	 	If to Company, to:

MediaNews Group, Inc.

Attn: William Dean Singleton

Vice Chairman and Chief Executive Officer

1560 Broadway, Suite 2100

Denver, Colorado 80202

	 	(ii)	 	If to Shareholder, addressed to:

Joseph J. Lodovic, IV

4920 East Progress Court

Greenwood Village, CO 80121

or to such other address as either of the foregoing may from time to time specify in writing. Any
such notice shall be deemed to be given upon receipt.

     (e) Interpretation, Etc. This Agreement constitutes the entire contract between the
parties hereto with respect to the subject matter.

     (f) Governing Law. This Agreement shall be interpreted under the laws of the State of
Delaware, without regard to principles of conflicts of laws that would result in the application of
the laws of another jurisdiction.

     (g) Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, any one of which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same Agreement.

     (h) Successors, Assigns and Transferees.

   (i) Shareholder may not transfer or assign his rights hereunder without the consent of
the Company except for an assignment to a Permitted Lodovic Holder in connection with the
transfer of Eligible Shares to any Permitted Lodovic Holder of rights and obligations
hereunder as they relate to such Eligible Shares. No transfers of Eligible Shares (other
than by operation of law) shall be made to a Permitted Lodovic Holder unless such Permitted
Lodovic Holder agrees to be bound by the terms and conditions hereof in respect of such shares.

   (ii) This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, and their respective successors and permitted assigns. Whether or not any express
assignment shall have been made, the provisions of this Agreement which are for

 

12

the benefit of the parties hereto other than the Company shall also be for the benefit
of and enforceable by any permitted transferee holding Eligible Shares, subject to the
provisions contained herein.

     (i) Amendment and Waiver. This Agreement may not be amended or modified without the
prior written consent of the Company and Shareholder. Any party may, only by an instrument in
writing, waive compliance by any other party or parties with any term or provision hereof on the
part of such other party or parties hereto to be performed or complied with. No failure by any
party to insist upon the strict performance of any covenant, duty, agreement or condition of this
Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a
waiver of any such breach or any other covenant, duty, agreement or condition. No waiver of any
breach by either party to this Agreement shall operate or be construed as a waiver of any
subsequent breach by any party.

[The next page is the signature page]

 

13

     IN WITNESS WHEREOF, the parties hereto have caused this Shareholder Agreement to be executed
as of the day and year first above written.

	 	 	 	 	 
	 	MediaNews Group, Inc.

 	 
	 	By:  	/s/ W. Dean Singleton
 	 
	 	 	W. Dean Singleton 	 
	 	 	Vice Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 

	 	/s/ Joseph J. Lodovic, IV
	 	 
	 

	 	 	 	 
	 

	 	Joseph J. Lodovic, IV

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