Document:

Seperation and Consulting Agreement

 Exhibit 10.5 
 SEPARATION 
 AND 
 CONSULTING AGREEMENT 
 This SEPARATION AND CONSULTING AGREEMENT (this
“Agreement”) is dated as of and executed on May 6, 2005 (the “Effective Date”), and is entered into by and among Liberty Group Operating, Inc., a Delaware corporation, and Liberty Group Publishing, Inc., a
Delaware corporation (together, the “Company”), and Kenneth L. Serota (“Executive”). 
 WHEREAS, Executive
and the Company are parties to an amended and restated employment agreement by and among Liberty Group Operating, Inc. (“LGO”), Liberty Group Publishing, Inc. and Executive, dated February 11, 2003, effective as of January 1,
2003 (the “Employment Agreement”), pursuant to which Executive serves as President, Chief Executive Officer and Chairman of LGO; and 
 WHEREAS, in connection with the execution and delivery of this Agreement, FIF III Liberty Holdings, LLC (“Parent”), FIF III Liberty Acquisition, LLC, a direct subsidiary of Parent (“Merger
Sub”), and Liberty Group Publishing, Inc. are entering into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub is to merge with and into Liberty Group Publishing, Inc. (the
“Merger”); and 
 WHEREAS, in connection with the Merger, the Company and Executive have agreed that Executive will resign
his employment with the Company as of the Closing Date (as such term in defined in the Merger Agreement); and 
 WHEREAS, subject to the
terms and conditions contained herein, Executive and the Company have mutually agreed to embody in this Agreement the terms and conditions applicable to Executive’s termination of employment with the Company. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows: 
 Section 1. Effective Date;
Termination of Employment Agreement; Entire Agreement. The Company and Executive hereby agree to this Agreement, effective as of the Effective Date. Upon the Effective Date, the Employment Agreement between Executive and the Company shall
terminate and be cancelled in its entirety (other than Section 7.8 thereof, which shall survive such termination and cancellation), and this Agreement (and Section 7.8 of the Employment Agreement) shall constitute the entire agreement
between Executive and the Company relating to Executive’s employment with the Company, termination thereof, and certain activities (as set forth herein) following such termination and shall supersede the Employment Agreement and any other
agreement and understanding, whether written, oral, express or implied, between Executive and the Company relating to Executive’s employment with and termination from employment with the Company; provided, however, that from the period
beginning on the Effective Date and ending on the Closing Date, Executive will continue to be employed by the Company or one of its subsidiaries and receive compensation in accordance with the terms and conditions of Section 2 of the Employment
Agreement unless 

 
Executive voluntarily terminates such employment prior to the Closing Date. For the avoidance of doubt, Executive hereby waives his right to any payments or
benefits in connection with his termination of employment pursuant to Section 4 of the Employment Agreement or rights to any bonus payment in connection with the Merger or loan forgiveness pursuant to any other agreement or understanding,
whether written, oral, express or implied, between Executive and the Company (other than pursuant to this Agreement). 
 Section 2.
Resignation. Effective on the Closing Date, Executive shall resign as an officer and employee of the Company and from any and all directorships, committee memberships or any other positions he holds with the Company or any of its
subsidiaries. 
 Section 3. Company Property. On the Closing Date, Executive shall return to the Company all Company-owned property in
his possession on such date, including, but not limited to, all Company credit cards, hand books, work manuals or procedure books, client or customer documents, tools, computers, or other Company equipment and/or materials maintained by Executive,
except for the property to be transferred to Executive on the Closing Date. For a twelve (12) month period, the Company shall cause all non-business correspondence sent to Executive’s business email address to be forwarded to an email
address designated from time to time by Executive. On the Closing Date, the Company shall transfer to Executive his office computer monitor, his home computer, his cellular telephone, and his blackberry, for no additional consideration, free and
clear of all liens. 
 Section 4. Accrued Payments and Benefits. 
 (a) Accrued Base Salary. On the Closing Date, the Company shall pay to Executive all accrued and unpaid base salary earned through
the Closing Date. 
 (b) Pro Rata Bonus. On the Closing Date, the Company shall pay to Executive a pro rata portion of
Executive’s bonus for 2005, based upon the performance of Executive and the Company from January 1, 2005 through the Closing Date. 
 (c) Accrued Vacation Pay. On the Closing Date, the Company shall pay to Executive all accrued and unused vacation pay earned through the Closing Date. 
 Section 5. Transaction and Termination Payments and Benefits. On the Closing Date, the Company shall make the following payments to Executive,
whether or not Executive is employed by the Company on the Closing Date; provided that no payment described in Section 5(a), (b) or (c) will be made without the prior approval of such payments by the Company’s stockholders in
accordance with Section 280G(b)(5)(B) of the Internal Revenue Code of 1986, as amended (the “Code”), and the applicable Treasury regulations issued thereunder (“Stockholder Approval”); and provided, further, that no payment
in Section 5 shall be made prior to Executive’s (or his representative’s if Executive is not living on the Closing Date) execution of the waiver and release attached hereto as Exhibit A on the Closing Date: 
 (a) Transaction Bonus. On the Closing Date, as consideration for Executive’s efforts in connection with the Merger, the
Company shall pay to Executive a transaction bonus in the amount of $1,000,000, payable in the form of a single lump sum cash payment. 
  

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 (b) Termination Payment. On the Closing Date, the Company shall pay to Executive a
termination bonus in the amount of $500,000, payable in the form of a single lump sum cash payment. 
 (c) Loan Forgiveness
— Principal. On the Closing Date, the Company shall forgive the loans made by the Company to Executive in the principal amount of $597,610, as set forth on Schedule 5.10(d) of the Merger Agreement. 
 (d) Loan Forgiveness — Interest. On the Closing Date, the Company shall forgive any and all accrued but unpaid interest that
may be due with respect to the loans described in Section 5(c). 
 (e) Legal Fees. On the Closing Date, the
Company shall reimburse Executive for all reasonable and documented legal fees and expenses incurred by Executive on or prior to the Closing Date in connection with (i) the Merger, the Support Agreement and any agreements or instruments entered
into in connection therewith, (ii) the Executive’s employment with the Company or its subsidiaries or the termination thereof, and (iii) this Agreement. 
 (f) COBRA. In the event Executive elects to continue health care coverage for himself and his eligible dependents under any group
health plan of the Company pursuant to COBRA, the Company shall pay the Executive’s COBRA premiums (or otherwise provide such coverage at the Company’s expense) for a period of 18 months following the Closing Date. 
 For the avoidance of doubt, no payment shall be made pursuant to Section 5(a), (b) or (c) of this Agreement without the prior Stockholder Approval of such
payment. The Company agrees that it will submit to the stockholders of the Company for a separate vote a proposal to approve, in compliance with the requirements of Section 280G(b)(5)(B) of the Code, Executive’s conditional right to
receive the payments described in Section 5(a), (b) and (c). Without limiting the foregoing, the Company shall recommend to all holders of voting stock that such approval be granted. 
 Section 6. Consulting Appointment. In addition to the payments to be made to Executive pursuant to Sections 4 and 5 hereof, as of the Closing
Date, Executive shall be entitled to the following; provided, however, that the provisions of this Section 6 shall be subject to Executive’s execution, on the Closing Date, and non-revocation of the waiver and release attached
hereto as Exhibit A and Stockholder Approval of the payments described in Section 6(b)(ii): 
 (a) Consulting
Period. As of the Closing Date, the Company shall appoint Executive, and Executive shall serve the Company, in the capacity of a consultant to the business of the Company and its subsidiaries. The term of Executive’s appointment shall
commence on the Closing Date and shall terminate on the twelfth (12) month anniversary of the Closing Date (the “Consulting Period”). 
 (b) Consulting Services. 
 (i) During the Consulting Period, Executive shall act as a
consultant and render his assistance in providing transition services relating to the Merger, 

  

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analyzing potential acquisitions, giving notice to the Company of any potential acquisitions of a newspaper business that Executive learns is for sale and
cooperating with investigations and litigation pursuant to Section 13 hereof (the “Consulting Services”). During the Consulting Period, consistent with his independent contractor status, Executive shall retain control over the
provision of the Consulting Services. Notwithstanding the foregoing, Executive shall not be obligated to give the Company notice of any potential acquisition if giving such notice could breach or violate any confidentiality or similar obligation by
which Executive is bound. 
 (ii) During the Consulting Period, Executive shall perform such Consulting Services at such time
or times as the Company may reasonably request; provided, however, that (x) in no event will Executive be required to perform Consulting Services for more than 20 hours in any calendar month during the Consulting Period, and (y) in
the event that any Consulting Services (other than brief phone conversations which are not unreasonably disruptive) need to be performed during normal business hours, the Company will give Executive at least five (5) days prior notice thereof.
In consideration of such services, the Company shall pay Executive an aggregate amount equal to $500,000, to be paid in 12 equal installments. Such payments shall commence beginning on the first month following the Closing Date and shall be made on
each monthly anniversary of the Closing Date in arrears. Executive shall be reimbursed by the Company for all Executive’s reasonable and customary expenses incurred in connection with services rendered during the Consulting Period, subject to
the submission of properly documented receipts, in accordance with the Company’s policies in effect from time to time. For the avoidance of doubt, no payment shall be made pursuant to this Section 6(b)(ii) without the prior Stockholder
Approval of such payment. The Company agrees that it will submit to the stockholders of the Company for a separate vote a proposal to approve, in compliance with the requirements of Section 280G(b)(5)(B) of the Code, Executive’s
conditional right to receive the payments described in this Section 6(b)(ii). Without limiting the foregoing, the Company shall recommend to all holders of voting stock that such approval be granted. 
 (iii) Notwithstanding the timing of the payments described in clause (ii) above, in the event of Executive’s death or permanent
disability during the Consulting Period, all payments not previously made to Executive pursuant to clause (ii) shall become due and payable as of the date of Executive’s death or permanent disability. For purposes of this clause (iii),
“permanent disability” shall mean any disability resulting from a physical or mental illness pursuant to which Executive is, or would reasonably be expected to be, unable to perform the Consulting Services for a period of at least three
(3) consecutive months. 
 (c) Relationship. Nothing in this Section 6 shall be taken to imply any
relationship of partnership, agency or employer and employee between the Company and Executive during the Consulting Period. Executive shall be an independent contractor, within the meaning of all applicable laws and regulations governing employment
insurance, workers’ 

  

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compensation, industrial accidents, labor and taxes, and Executive shall not, by reason of this Agreement, acquire any benefits, privileges or rights under
any benefit plan operated by the Company or its subsidiaries or affiliates for the benefit of their employees, including, without limitation, (i) any pension or profit-sharing plans or (ii) any plans providing medical, dental, disability
or life insurance protection, except as may otherwise be required under applicable law. 
 (d) Withholding. As an
independent contractor, Executive shall be solely responsible for, and the Company shall not withhold from any amounts payable under this Section 6. 
 Section 7. Full Settlement; Compensation and Benefit Plans. The Company shall pay to Executive all amounts that it is required to pay, directly or indirectly, to or with respect to Executive under the terms of
the Merger Agreement (which shall be in substantially the form of the draft Merger Agreement, dated May 5, 2005, and shall include the definition of “Company Common Stock Conversion Amount” set forth therein so that the cash
consideration payable to Executive for each share of Company common stock shall be $10.00 per share he owns as of the date hereof; so long as Executive does not assign, transfer or otherwise dispose of such shares prior to the Closing Date). Except
as provided in this Section 7, the amounts paid under Sections 4, 5 and 6 shall constitute full settlement and satisfaction with respect to all obligations and liabilities of the Company and its affiliates, officers, directors, trustees,
employees, shareholders, representatives and/or agents to Executive with respect to his employment with the Company, including, without limitation, all claims for wages, salary, vacation pay, draws, incentive pay, bonuses, stock (other than stock
owned by Executive on the date of this Agreement) and stock options, commissions, severance pay and any and all other forms of compensation or benefits. Except as otherwise specifically provided in this Agreement, by law or pursuant to the express
provisions of any Company employee benefit plan, Executive’s participation in all employee benefit plans and executive compensation plans and practices of the Company shall terminate on the Closing Date and, without duplicating amounts included
in the payment made under Section 6 above, Executive shall be entitled to receive any benefits or rights provided to a terminating executive in accordance with the terms of any such plan (excluding any severance payments pursuant to the terms
of any Company severance plan). 
 Section 8. Release and Waiver of Claims at the Closing Date. In consideration for the benefits and
payments provided for in Sections 4, 5 and 6 of this Agreement, Executive hereby agrees to execute a release and waiver of claims in the form attached hereto as Exhibit A, effective as of the Closing Date (except as provided in Section 2(e) of
Exhibit A). 
 Section 9. Taxes. The payments due to Executive under this Agreement (other than pursuant to Section 6 hereof)
shall be subject to reduction to satisfy all applicable Federal, state and local employment and withholding tax obligations to the extent required by law. 
 Section 10. Non-Admission. Executive expressly acknowledges that this Agreement does not constitute an admission by the Company of any violation of any employment law, regulation, ordinance, or administrative
procedure, or any other federal, state, or local law, common law, regulation or ordinance relating to Executive’s employment or termination of employment. 
  

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 Section 11. Continuing Obligations of Executive and the Company. 
 (a) Noncompetition. Executive covenants and agrees that Executive will not during the Consulting Period, without the prior written
consent of the Company and such consent not to be unreasonably withheld, individually or in partnership with or as an employee, officer, director, manager or agent of any other person, firm, corporation or other entity, either directly or
indirectly, undertake or carry on or be engaged or have any financial interest in, or in any other manner advise or assist any person, firm, corporation or other entity engaged or interested in, (i) any newspaper publishing business or
(ii) any other business engaged in the publication of any newspaper, flyer, shopper, circular or other publication carrying advertising which, in the case of (i) or (ii) above, is distributed primarily in an area within a radius of
fifty (50) miles of Chicago, Illinois and that directly competes with any newspaper, flyer, shopper, circular or other publication owned by the Company or its subsidiaries on the date hereof or the Consulting Period. Notwithstanding the
foregoing, Executive may (a) own up to five percent (5%) of any class of securities of any entity registered pursuant to the Securities Exchange Act of 1934, as amended, (b) engage, as an employee, partner, director or otherwise, in
the private equity or private investment business, provided Executive’s services or activities do not directly involve any business that is in competition with the business of the Company and its subsidiaries as provided in the preceding
sentence, or (iii) engage, as an employee, partner, director or otherwise, in an investment banking business, provided Executive’s services or activities do not directly involve any business that is in competition with the business of the
Company and its subsidiaries as provided in the preceding sentence, or a business brokerage business. 
 (b)
Nonsolicitation. Executive further covenants and agrees to refrain during the Consulting Period and for a period of twelve (12) months after the termination of the Consulting Period, from (i) inducing or attempting to induce any
person, firm or corporation to cease, discontinue or fail to renew any advertising contract, agreement or arrangement with one or more of the newspapers or other publications of the Company or any of the Company’s subsidiaries; and
(ii) soliciting, employing, diverting or taking away, attempting to solicit, employ, divert or take away, any person who, at the time of the termination of the Consulting Period or at any time during the six (6) month period prior to such
termination, was employed by or on behalf of the Company or any of the Company’s subsidiaries. 
 (c)
Non-Disparagement. Except to the extent required by law or in the context of a legal dispute between the Company and Executive, each of the Company and Executive agree not to make any derogatory or defamatory remarks, written or oral, about
Executive or the Company, respectively, to any third party. 
 (d) Confidentiality. All books of account, records,
systems, correspondence, documents, and any and all other data, in whatever form, concerning or containing any reference to the works and business of the Company or its subsidiaries shall belong to the Company and shall be given up to the Company in
accordance with Section 3 of this Agreement. Executive agrees that Executive shall not at any time, without the Company’s prior written consent, disclose to any other person or business entity any such information or any trade secrets,
plans or other information or data, in whatever form, concerning the Company’s or any of its subsidiaries’ or customers’ practices, businesses, procedures, systems, plans or policies (collectively, “Confidential
Information”), nor shall Executive disclose to any third party or 

  

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utilize any such Confidential Information in any way. Executive hereby confirms that all Confidential Information constitutes the Company’s exclusive
property, and that all of the restrictions on Executive’s activities contained in this Agreement and such other nondisclosure policies of the Company are required for the Company’s reasonable protection. This confidentiality provision
shall survive the termination of this Agreement. Each of the Company and Executive also agree that it or he shall keep confidential the amounts paid to Executive and all of the other terms of this Agreement. Unless ordered by a court of competent
jurisdiction, Executive shall not reveal the terms of this Agreement to anyone, except to Executive’s family, legal and financial advisors. 
 (e) Capital Stock. Prior to the Closing Date, the Company shall not effect any reverse stock split or other combination of the Company common stock or otherwise take any other action that reduces the number of
outstanding shares of Company common stock on a pro rata basis without Executive’s express written consent. 
 Section 12. Forfeiture
of Payments. Executive acknowledges that if Executive breaches, in any material respect, the terms or conditions contained in the Agreement, the Company will no longer be required to make or continue any payments or benefits payments described
herein, to the extent permitted by applicable law. The Company acknowledges that if the Company breaches, in any material respect, the terms or conditions contained in the Agreement, the obligations of the Company hereunder shall immediately become
due and payable to Executive and his obligations under Section 11(a) shall terminate. 
 Section 13. Cooperation With
Investigations/Litigation. Executive agrees to reasonably cooperate in any Company investigations and/or litigation regarding events which occurred during Executive’s tenure with the Company, whether civil, criminal, or administrative in
nature. The Company will reimburse Executive for reasonable expenses incurred by Executive in extending such cooperation. The Company agrees to pay Executive a fee of $500 per hour for any services rendered by Executive at the request of the Company
pursuant to this Section 13, unless such services are Consulting Services subject to Section 6(b) rendered during the Consulting Period. 
 Section 14. Specific Performance. Executive agrees that if Executive breaches Section 11 of this Agreement, the Company will be irreparably harmed and will have no adequate remedy at law and will be entitled to an injunction as
a matter of right from any court of competent jurisdiction restraining further breach of any of Section 11 of this Agreement without any obligation to post a bond or other security. 
  

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 Section 15. Notice. Other than a notice of revocation of the waiver and release of claims in
accordance with Exhibit A attached hereto, any notice given by either party shall be in writing and shall be deemed to be given five (5) business days after deposit with the United States Postal Service, postage prepaid, certified return
receipt requested or upon actual delivery to the other party at the following addresses: 
  

							
	To:    	  	 Kenneth L. Serota
 1325 Sunburst Lane
 Northbrook, Illinois 60062
	  	To:    	  	 Liberty Group Publishing, Inc.
 3000 Dundee Road, Suite
203
 Northbrook, Illinois 60062
 Attn: Chairman of the Board of
Directors

				
	Cc:    	  	 Katten Munchin Rosenman LLP
 525 West Monroe
Street
 Chicago, Illinois 60661
 Attn: Kenneth W. Miller,
Esq.
 Fax: 312-902-1061
	  	Cc:    	  	 Willkie Farr & Gallagher LLP
 787 Seventh
Avenue
 New York, NY 10019
 Attn: Thomas M. Cerabino,
Esq.
 Fax: 212-728-8111

 Section 16. Entire Agreement. This Agreement, together with the agreements referenced
herein and Exhibit A attached hereto, represents the entire agreement of the parties with respect to the termination of Executive’s employment and shall supersede the Employment Agreement (other than Section 7.8 thereof) in all respects
effective as of the Effective Date. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of
the State of Illinois without regard to the principles of conflicts of law thereof. 
 (b) Each of the Company and Executive
hereby agrees and consents to be subject to the exclusive jurisdiction of the courts of the State of Illinois and the United States District Court for the State of Illinois sitting in Cook County Illinois in any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection with, this Agreement. Each of the Company and Executive hereby irrevocably waives, to the fullest extent permitted by law, (i) any objection that he may now or
hereafter have to laying venue of any suit, action or proceeding brought in such courts, and (ii) any claim that any suit, action or proceeding brought in such courts has been brought in an inconvenient forum. 
 (c) Executive agrees that no provision in this Agreement is intended to limit, release, discharge, terminate, amend or modify in any way
the rights of or remedies available to the Company against Executive as provided under the (i) Merger Agreement or (ii) any other agreement in effect pursuant to or in conjunction with such Merger Agreement. 
 (d) In the event an action is brought to enforce the terms of this Agreement, the non-prevailing party in any such action shall reimburse
the prevailing party for all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in such action. 
 Section 17. Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 
  

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 Section 18. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which together shall be considered one and the same agreement. 
 Section 19.
Effectiveness. This Agreement shall become effective upon the Effective Date; provided, however, that this Agreement shall be of no further force or effect upon any termination of the Merger, in which event the Employment Agreement
will be reinstated in all respects as though it had continued in full force and effect at all times since the Effective Date. 
 Section 20.
Third Party Beneficiary. The parties acknowledge that Merger Sub is intended to be a third party beneficiary of this Agreement, and this Agreement cannot be amended without the prior written consent of Merger Sub. 
 Section 21. Successors and Assigns. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Company and Executive
and their respective heirs, legal representatives, successors and assigns. 
 Section 22. Beneficiaries. Executive shall be entitled
to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death, and may change such election, in either case by giving
the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative. 
 [Signatures appear on the following page.] 
  

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

  

			
	
	/s/ Kenneth L. Serota
	 Kenneth L. Serota

	
	 LIBERTY GROUP PUBLISHING, INC.

		
	By:	 	 /s/ Daniel D. Lewis

		 	 Name: Daniel D. Lewis

		 	 Title:   CFO

	
	 LIBERTY GROUP OPERATING, INC.

		
	By:	 	 /s/ Daniel D. Lewis

		 	 Name: Daniel D. Lewis

		 	 Title:   CFO

  

 -10-Employment Agreement (Michael E. Reed)

 Exhibit 10.8 
 LIBERTY GROUP PUBLISHING, INC. 
 LIBERTY GROUP OPERATING, INC. 
 EMPLOYMENT AGREEMENT 
 THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 3rd day of January, 2006 by and among LIBERTY GROUP PUBLISHING, INC., a Delaware corporation (“Publishing”), LIBERTY GROUP OPERATING, INC., a
Delaware corporation (“Operating” and together with Publishing, the “Company”), and MICHAEL E. REED, an individual presently residing 5303 Southcrest Cove, Hoover, Alabama 35244 (“Executive”).

 WHEREAS, on May 9, 2005, FIF III Liberty Holdings, LLC (“Parent”), FIF III Liberty Acquisition, LLC, a
direct subsidiary of Parent (“Merger Sub”), and Publishing entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub merged with and into Publishing (the
“Merger”); and 
 WHEREAS in order to induce Executive to serve as the Company’s Chief Executive Officer, the Company
desires to provide Executive with compensation and other benefits on the terms and conditions set forth in this Agreement; and 
 WHEREAS,
Executive is willing to accept such employment and perform services for the Company on the terms and conditions herein set forth. 
 NOW,
THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, together with other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 1. SERVICES AND DUTIES. The Company hereby employs Executive, and Executive hereby accepts employment from the Company in the
capacity of its Chief Executive Officer to work in the Rochester, New York area. Executive will report directly to the Company’s Board of Directors (“Board”). Executive shall be a full-time employee of the Company and shall
dedicate all of Executive’s working time to the Company and shall have no other employment and no other business ventures which are undisclosed to the Company or which conflict with Executive’s duties under this Agreement. Executive will
perform such duties as are required by the Company from time to time and normally associated with Executive’s position, together with such additional duties, commensurate with the Executive’s position, as may be assigned to the Executive
from time to time by the Company’s Board. Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) engaging in personal investment activities for himself and his family that do not give rise to any conflict of
interests with the Company or its affiliates, (ii) subject to prior approval of the Board, accepting directorships unrelated to the Company that do not give rise to any conflict of interests with the Company or its affiliates,
(iii) engaging in charitable and civic activities, so long as such outside interests do not interfere with the performance of his duties hereunder, and (iv) continuing to serve on the boards of Associated Press, Newspaper Association of
America and the Inland Press Association. 

 2. TERM. Executive’s employment under the terms and conditions of this Agreement will
commence on January 30, 2006 (the actual date on which Executive is added to the Company’s payroll, the “Effective Date”). The term of this Agreement shall be for a period of three (3) years (the “Initial
Term”) beginning on the Effective Date, subject to earlier termination pursuant to Section 5 herein. This Agreement shall automatically renew subject to the same terms and conditions for additional one (1) year terms (each a
“Renewal Term”) unless either party delivers to the other party at least ninety (90) days prior to the end of the Initial Term or the then current Renewal Term a written notice indicating that it intends not to extend the Term
hereof. The Initial Term and each Renewal Term are hereinafter collectively referred to as the “Term.” Notwithstanding anything to the contrary herein, in the event of any termination of this Agreement, Executive shall nevertheless
continue to be bound by the terms and conditions set forth in Sections 6 and 7 hereof, which provisions, along with Sections 8 and 9 hereof, shall survive any termination of this Agreement. For the sake of clarity, the delivery by the
Company pursuant to this Section 2 of a notice not to extend the Term is not a termination by the Company without Cause for purposes of this Agreement. 
 3. COMPENSATION. 
 (a) Sign-on Cash Bonus. Upon execution of this agreement, Executive shall be
entitled to a Cash Bonus of one million five hundred thousand dollars ($1,500,000), payable within 30 days of the date on which Executive’s employment with the Company commences. 
 (b) Base Salary. In consideration of Executive’s full and faithful satisfaction of Executive’s duties under this Agreement, the Company
agrees to pay to Executive a salary in the amount of five hundred thousand dollars ($500,000) per annum (the “Base Salary”), payable in such installments as the Company pays its similarly placed employees (but not less frequently
than each calendar month), subject to usual and customary deductions for withholding taxes and similar charges, and customary employee contributions to health, welfare and retirement programs in which Executive is enrolled. The Base Salary shall be
reviewed on an annual basis in accordance with Executive’s annual performance evaluation and adjusted at the Company’s sole discretion; provided, however, in no event shall the Base Salary be reduced from its level at the
time without Executive’s approval. 
 (c) Annual Bonus Compensation. In addition to any salary payable pursuant to
Section 3(a) above, Executive shall be eligible to receive in respect of each fiscal year of the Company a bonus (for each such fiscal year, a “Bonus”), based on the achievement, as determined by the Board in its sole
discretion, of certain performance standards as agreed to by Executive and the Board, with a target Bonus of two hundred thousand dollars ($200,000), payable in such combination of cash and shares of common stock of Publishing (“Common
Stock”) as determined by the Board, in its sole discretion (the stock portion of any such Bonus, the “Restricted Stock Grant”); provided, however, in no event shall the Restricted Stock Grant be greater than
fifty percent (50%) of the target Bonus without Executive’s approval. The number of shares comprising any Restricted Stock Grant shall be determined by dividing the applicable portion of the Bonus being awarded in Common Stock by the fair
market value (as determined by the Board in good faith) of the Common Stock on the date of grant. Generally, each Restricted Stock Grant shall vest as follows: (i) one-third (1/3) of the shares subject to such Restricted Stock Grant on the
third anniversary of the date of grant; (ii) one-third (1/3) of the 

  

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shares subject to such Restricted Stock Grant on the fourth anniversary of the date of grant and (iii) the remaining one-third (1/3) of the shares
subject to such Restricted Stock Grant on the fifth anniversary of the date of grant. Executive shall receive dividends on unvested shares to the extent such dividends are paid and such shares have not been forfeited. In the event Executive’s
employment is terminated by the Company with Cause (as such term is defined below), Executive shall immediately forfeit (x) all unvested shares subject to any Restricted Stock Grant and, (y) in the case of a termination based on clause
(ii) of the definition of Cause, all vested shares granted under any Restricted Stock Grant. 
 The foregoing notwithstanding, the
parties agree that for fiscal year 2006 only, Executive shall receive total Current Compensation (Base Salary, Cash Bonus and dividends paid on total Initial Restricted Stock Grant (as defined below)) of not less than seven hundred thousand dollars
($700,000). 
 The cash portion of each Bonus shall be paid to the Executive within a reasonable time after the end of the fiscal year, but
in no event later than 2 1/2 months following completion of the Company’s fiscal year to which such Bonus
relates (“Outside Payment Date”); the Restricted Stock Grant portion of each Bonus shall be made on such date as the Board determines in its discretion, though no later than the applicable Outside Payment Date. Notwithstanding
anything to the contrary contained herein, no Bonus in respect of any fiscal year of the Company will be due to Executive unless he is employed by the Company on the last day of the fiscal year in respect of which the Bonus is awarded. To the extent
that any Bonus is paid as a Restricted Stock Grant, the provisions of this section 3(c) pertaining to any Restricted Stock Grant shall be set forth in a management stockholder agreement containing customary restrictions and terms, including but not
limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights, all of which shall survive any expiration of the Term of this Agreement. 
 (d) Initial Restricted Stock Grant. Subject to Executive’s compliance with Section 3(e) below, upon the Effective Date, Executive shall be
awarded a one time grant (the “Initial Restricted Stock Grant”) of 3,000 shares of Common Stock, which is the number of shares equal to $3,000,000 divided by $1,000.00 per share (“Per Share Price”). The Initial
Restricted Stock Grant shall vest as follows: (i) one-third (1/3) of the shares subject to the Initial Restricted Stock Grant on the third anniversary of the Effective Date; (ii) one-third (1/3) of the shares subject to the
Initial Restricted Stock Grant on the fourth anniversary of the Effective Date and (iii) the remaining one-third (1/3) of the shares subject to the Initial Restricted Stock Grant on the fifth anniversary of the Effective Date. Executive
shall receive dividends on unvested shares to the extent such dividends are paid and such shares have not been forfeited. In the event the Executive is terminated with Cause, he shall forfeit (x) all unvested shares subject to the Initial
Restricted Stock Grant and, (y) in the case of a termination based on clause (ii) of the definition of Cause, all vested shares granted under any Restricted Stock Grant. The provisions of this Section 3(d) shall be set forth in a
management stockholder agreement containing customary restrictions and terms, including but not limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights, all of which shall survive any expiration of the
Term of this Agreement. 
  

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 (e) Vesting of Shares Upon Executive’s Termination without Cause, Change of Control:

 (1) If Executive is terminated by the Company without Cause, Executive shall immediately vest as the owner of the percentage of the shares
that are subject to the Initial Restricted Stock Grant and any additional Restricted Stock Grants that would have vested on the anniversary of the next Effective Date following the date of such termination; provided, however, that in
no event shall the number of shares subject to such vesting in this subsection 3(e)(1) hereof, be less than one-third (1/3) each of the shares subject to the Initial Restricted Stock Grant and any additional Restricted Stock Grants; and

 (2) In the event a “change of control” occurs (as such term shall be defined in the Company’s Incentive Stock Award Plan)
and Executive’s employment is terminated by the Company (or its successor) without Cause within 12 months of such change of control, 100% of the then remaining unvested shares subject to the Initial Restricted Stock Grant and any additional
Restricted Stock Grants shall immediately vest. 
 (f) Withholding. All taxable compensation payable to Executive pursuant to this
Section 3 or otherwise pursuant to this Agreement shall be subject to customary withholding taxes and such other employment taxes as are required under Federal law or the law of any state or governmental body to be collected with respect to
compensation paid to an employee. 
 (g) Executive’s Co-Investment. Executive hereby agrees to invest, as of the Effective Date,
two hundred and fifty thousand dollars ($250,000) in Common Stock at the Per Share Price alongside Parent. Such shares shall not be subject to any vesting restrictions but shall be subject to customary restrictions and terms, including but not
limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights, all of which shall survive any expiration of the Term of this Agreement. 
 4. BENEFITS AND PERQUISITES. 
 (a)
Retirement and Welfare Benefits. During the Term, Executive will be entitled to all the usual benefits offered to employees at Executive’s level, including vacation, sick time, participation in the Company’s medical, dental and
insurance programs, as well as the ability to participate in the Company’s 401(k) retirement savings plan, subject to the applicable limitations and requirements imposed by the terms of such benefit plans, in each case in accordance with the
terms of such plans as from time to time in effect. Nothing in this Section 4, however, shall require the Company to maintain any benefit plan or provide any type or level of benefits to its employees, including Executive; provided,
however, during the Term, Executive shall be entitled to not less than four (4) weeks paid vacation annually. 
  

 - 4 - 

 (b) Reimbursement of Expenses. The Company shall reimburse Executive for any expenses reasonably
and necessarily incurred by Executive in furtherance of Executive’s duties hereunder, including travel, meals and accommodations, upon submission by Executive of vouchers or receipts and in compliance with such rules and policies relating
thereto as the Company may from time to time adopt. 
 (c) Reimbursement of Moving Expenses. The Company shall reimburse Executive for
any moving expenses reasonably and necessarily incurred by Executive, upon submission by Executive of vouchers or receipts. Executive’s relocation to the Rochester, New York area must be complete by July 1, 2006. In the event Executive
voluntarily leaves the Company’s employ, or is terminated for Cause as defined below, within the first twelve months of employment, Executive must reimburse the Company for moving expenses incurred within 30 days of that date. 
 5. TERMINATION. Executive’s employment shall be terminated (i) at the end of the Term in accordance with Section 2 herein,
(ii) on the date on which the Board delivers written notice that Executive is being terminated for Disability (as defined below), or (iii) on the date of Executive’s death. The foregoing notwithstanding, Executive’s employment
with the Company may be terminated (x) by the Company for Cause (as defined below), effective on the date on which a written notice to such effect is delivered to Executive; (y) by the Company at any time without Cause, effective on the
date on which a written notice to such effect is delivered to Executive; or (z) by Executive at any time, effective on the date on which a written notice to such effect is delivered to the Company. 
 (a) For Cause Termination. If Executive’s employment with the Company is terminated by the Company for Cause, Executive shall not be entitled
to any further compensation or benefits other than accrued but unpaid Base Salary (payable as provided in Section 3(b)) and accrued and unused vacation pay through the date of such termination (collectively, the “Accrued
Benefits”). If the definition of “Cause” set forth below conflicts with such definition in any stock incentive plan or agreement of the Company or any of its affiliates, the definition set forth herein shall control. 

(b) Termination by Company without Cause, “Change of Control”. If Executive’s employment is terminated by the Company other than
for Cause, including within 12 months of a “change of control”, prior to the end of the Term hereof, then Executive shall be entitled to, upon Executive’s providing the Company with a signed release of claims in a form adopted by the
Company’s Board of Directors from time to time and subject to Executive’s continued compliance with the provisions of Sections 6 and 7 hereof: (i) the Accrued Benefits, (ii) an amount equal to twelve (12) months Base
Salary payable in the same manner as provided under Section 3(b), (iii) Bonus, as provided in Section 3(c), which includes any declared Bonus not yet paid, (iv) the rights provided in Sections 3(e)(1) or (2), as applicable,
relating to the vesting of a portion of the shares of any Restricted Stock Grant and the Initial Restricted Stock Grant, respectively, that are not vested as of the date of termination, and (v) continuation of Executive’s coverage under
the Company’s medical plan at the same levels as such benefits that have been provided to Executive, and in connection therewith Executive shall periodically pay to the Company amounts equivalent to that which he paid as required employee
contributions immediately prior to the date of termination, until the earlier of (A) the period of time it takes 

  

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Executive to become eligible for the medical benefits program of a new employer (subject to Section 6(a) hereof) or (B) twelve (12) months
from the date of such termination. Executive acknowledges that executive’s termination of employment on the date of such termination shall constitute a “qualifying event” for the purposes of the Consolidated Omnibus Budget
Reconciliation Act of 1986 (“COBRA”). Executive further acknowledges on behalf of himself and his dependents that any period with respect to which any of them would be eligible to elect COBRA shall be reduced by the period of
post-termination medical benefit continuation provided under this subsection. Executive acknowledges that the Company may terminate Executive without Cause at any time, and that the Company shall have no obligations under such circumstances to
Executive beyond the specific obligations set forth in this Section 5(b); in particular, Executive acknowledges that Executive shall have no right whatsoever to any then unvested shares under the Initial Restricted Stock Grant, any Restricted
Stock Grant or any other incentive equity award granted to Executive except as provided above in this Section 5(b). 
 (c)
Resignation, Death or Disability. If Executive’s employment is terminated by reason of Executive’s death, Disability or voluntary resignation prior to the end of the Term, Executive shall not be entitled to receive any further
compensation or benefits under this Agreement or otherwise other than the Accrued Benefits. During any period that Executive fails to perform his duties hereunder as a result of disability or incapacity, Executive shall continue to receive his Base
Salary and all other benefits and all other compensation pursuant to this Agreement unless and until his employment is terminated pursuant to this Section 5. 
 (d) Definitions. For purposes of this Agreement: 
 “Cause” means (i) conviction
of, guilty plea concerning or confession of any felony, (ii) any act of dishonesty committed by Executive in connection with the Company’s or its subsidiaries’ business, (iii) any material breach by Executive of this Agreement,
after written notice thereof from the Board is given in writing and such breach is not cured to the satisfaction of the Company within a reasonable period of time (not greater than 30 days) under the circumstances, (iv) any material breach of
any reasonable and lawful rule or directive of the Company, (v) the gross or willful neglect of duties or gross misconduct by Executive, or (vi) the habitual use of drugs or habitual, excessive use of alcohol to the extent that any of such
uses in the Board’s good faith determination materially interferes with the performance of Executive’s duties under this Agreement. 
 “Disability” means, as determined by the Board of Directors in good faith, Executive’s inability, due to disability or incapacity, to perform all of his duties hereunder on a full-time basis for (i) periods
aggregating 90 days, whether or not continuous, in any continuous period of 365 days, or (ii) where Executive’s absence is adversely affecting the performance of the Company in a significant manner, periods greater than 30 days and
Executive is unable to resume his duties on a full-time basis within 10 days of receipt of written notice of the Board’s determination under this clause (ii). 
  

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 (e) Resignation as Officer or Director. Upon the termination of employment for any reason,
Executive shall resign each position (if any) that he then holds as an officer or director of the Company or any of its subsidiaries. 
 6.
RESTRICTIVE COVENANTS. Executive acknowledges that during the period of his employment with the Company he shall have access to the Company’s Confidential Information (as defined below) and will meet and develop relationships with the
Company’s potential and existing suppliers, financing sources, clients, customers and employees. 
 (a) Noncompetition. Executive
agrees that during the period of his employment with the Company and for the one (1) year period immediately following (i) termination of such employment for any reason by the Company for cause or by the Executive or (ii) termination
of such employment by the Company without cause, unless Executive agrees at such time in writing within 5 days of such termination to waive his rights to receive the amounts set forth in clauses (ii) and (iii) of Section 5(b) above
(in which case the provisions of this Section 6(a) shall not apply, it being understood that Executive shall still be required to deliver the release of claims described in Section 5(a) above in order to receive the rights set forth in
clauses (i), (iv) and (v) of Section 5(b) above). Executive shall not directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, shareholder of a closely held corporation or shareholder in
excess of five (5%) percent of a publicly traded corporation, corporate officer or director, or in any other individual or representative capacity, engage or otherwise participate in any manner or fashion in any business that is in competition
in any manner whatsoever with more than 20% of the business activities of the Company or its affiliates in the United States. Executive further covenants and agrees that this restrictive covenant is reasonable as to duration, terms and geographical
area and that the same protects the legitimate interests of the Company and its affiliates, imposes no undue hardship on Executive, is not injurious to the public, and that any violation of this restrictive covenant shall be specifically enforceable
in any court with jurisdiction upon short notice. 
 (b) Solicitation of Employees, Etc. Executive agrees that during the period of
his employment with the Company and for the one (1) year period immediately following the date of termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly, (i) solicit or
induce any officer, director, employee, agent or consultant of the Company or any of its successors, assigns, subsidiaries or affiliates to terminate his, her or its employment or other relationship with the Company or its successors, assigns,
subsidiaries or affiliates for the purpose of associating with any competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage any such person or entity to leave or sever his, her or its employment or
other relationship with the Company or its successors, assigns, subsidiaries or affiliates, for any other reason or (ii) hire any individual who left the employ of the Company or any of its affiliates during the immediately preceding one-year
period. 
 (c) Solicitation of Clients, Etc. Executive agrees that during the period of his employment with the Company and for the
one (1) year period immediately following the date of 

  

 - 7 - 

 
termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly, solicit or induce (i) any
customers or clients of the Company or its successors, assigns, subsidiaries or affiliates or (ii) any vendors, suppliers or consultants then under contract to the Company or its successors, assigns, subsidiaries or affiliates, to terminate
his, her or its relationship with the Company or its successors, assigns, subsidiaries or affiliates, for the purpose of associating with any competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage
such customers or clients, or vendors, suppliers or consultants then under contract, to terminate his, her or its relationship with the Company or its successors, assigns, subsidiaries or affiliates, for any other reason. 
 (d) Disparaging Comments. Executive agrees that during the period of his employment with the Company and thereafter, Executive shall not make any
disparaging or defamatory comments regarding the Company or, after termination of his employment relationship with the Company, make any comments concerning any mutually agreed to confidential aspects of the termination of their relationship. The
obligations of Executive under this subparagraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency. 
 Nothing contained in this Section 6 shall limit any common law or statutory obligation that the Executive may have to the Company or any of its affiliates. For purposes of this Section 6 and Section 7,
the “Company” refers to the Company and any incorporated or unincorporated affiliates of the Company, including any entity which becomes Executive’s employer as a result of any reorganization or restructuring of the Company.

 7. CONFIDENTIALITY. All books of account, records, systems, correspondence, documents, and any and all other data, in whatever
form, concerning or containing any reference to the works and business of the Company or its affiliated companies shall belong to the Company and shall be given up to the Company whenever the Company requires Executive to do so. Executive agrees
that Executive shall not at any time during the term of Executive’s employment or thereafter, without the Company’s prior written consent, disclose to any person (individual or entity) any information or any trade secrets, plans or other
information or data, in whatever form, (including, without limitation, (i) any financing strategies and practices, pricing information and methods, training and operational procedures, advertising, marketing, and sales information or
methodologies or financial information and (ii) any Proprietary Information (as defined below)), concerning the Company’s or any of its affiliated companies’ or customers’ practices, businesses, procedures, systems, plans or
policies (collectively, “Confidential Information”), nor shall Executive utilize any such Confidential Information in any way or communicate with or contact any such customer other than in connection with Executive’s employment
by the Company. Executive hereby confirms that all Confidential Information constitutes the Company’s exclusive property, and that all of the restrictions on Executive’s activities contained in this Agreement and such other nondisclosure
policies of the Company are required for the Company’s reasonable protection. Confidential Information shall not include any information that has otherwise been disclosed to the public not in violation of this Agreement. This confidentiality
provision shall survive the termination of this Agreement and shall not be limited by any other confidentiality agreements entered into with the Company or any of its affiliates. 
  

 - 8 - 

 Executive agrees that he shall promptly disclose to the Company in writing all information and inventions
generated, conceived or first reduced to practice by him alone or in conjunction with others, during or after working hours, while in the employ of the Company (all of which is collectively referred to in this Agreement as “Proprietary
Information”); provided, however, that such Proprietary Information shall not include (i) any information that has otherwise been disclosed to the public not in violation of this Agreement and (ii) general business
knowledge and work skills of Executive, even if developed or improved by Executive while in the employ of the Company. All such Proprietary Information shall be the exclusive property of the Company and is hereby assigned by Executive to the
Company. Executive’s obligation relative to the disclosure to the Company of such Proprietary Information anticipated in this Section 7 shall continue beyond Executive’s termination of employment and Executive shall, at the
Company’s expense, give the Company all assistance it reasonably requires to perfect, protect and use its right to the Proprietary Information. 
 8. ASSIGNMENT. This Agreement, and all of the terms and conditions hereof, shall bind the Company and its successors and assigns and shall bind Executive and Executive’s heirs, executors and
administrators. No transfer or assignment of this Agreement shall release the Company from any obligation to Executive hereunder. Neither this Agreement, nor any of the Company’s rights or obligations hereunder, may be assigned or otherwise
subject to hypothecation by Executive. The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the Company’s subsidiaries, affiliates or parent corporations, or to any other successor or assign
in connection with the sale of all or substantially all of the Company’s assets or stock or in connection with any merger, acquisition and/or reorganization, provided the assignee assumes the obligations of the Company hereunder. 
 9. SECTION 409A OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. If any of the payments to be made under this Agreement are deemed to be
“deferred compensation”, as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and such regulations and guidance promulgated by the Internal Revenue Service in connection therewith (collectively,
“Section 409A”), the Company reserves the right to modify the terms and provisions of this Agreement to comply with Section 409A; and 
 10. GENERAL. 
 (a) Notices. Any notices provided hereunder must be in writing and shall be
deemed effective upon the earlier of one business day following personal delivery (including personal delivery by telecopy or telex), or the third business day after mailing by first class mail to the recipient at the address indicated below:

 To the Company: 
 Liberty Group
Publishing, Inc. 
 3000 Dundee Road, Suite 203 
 Northbrook, Illinois 60062 
 Attn: Chairman of the Board of Directors 
  

 - 9 - 

 To Executive: 
 Mr. Michael E. Reed 
 5303 Southcrest Cove 
 Hoover, Alabama 35244 
 or to such other address or to the
attention of such other person as the recipient party will have specified by prior written notice to the sending party. 
 (b)
Severability. Any provision of this Agreement which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent of such invalidity, illegality or
unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be
deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and
enforceable. 
 (c) Entire Agreement. This document constitutes the final, complete, and exclusive embodiment of the entire agreement
and understanding between the parties related to the subject matter hereof and supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral. 
 (d) Counterparts. This Agreement may be executed on separate counterparts, any one of which need not contain signatures of more than one party,
but all of which taken together will constitute one and the same agreement. 
 (e) Amendments. No amendments or other modifications to
this Agreement may be made except by a writing signed by all parties. The parties acknowledge that FIF III Liberty Acquisition, LLC (“Merger Sub”) is intended to be a third party beneficiary of this Agreement, and this
Agreement cannot be amended without the prior consent of Merger Sub. The foregoing notwithstanding, nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this
Agreement. 
 (f) Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be
governed by the laws of the State of New York without giving effect to principles of conflicts of law of such state. 
 (g)
Survivorship. The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein shall survive the termination or expiration of this Agreement. 
 (h) Waiver. The waiver by either party of the other party’s prompt and complete performance, or breach or violation, of any provision of this
Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a bar to the
exercise of such right or remedy by such party upon the 

  

 - 10 - 

 
occurrence of any subsequent breach or violation. No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf of the
waiving party. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or
condition for the future or as to any act other than that specifically waived. 
 (i) Captions. The captions of this Agreement are for
convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof. 
 (j) Construction. The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties each afforded representation by legal counsel. Each and every
provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this
Agreement. 
 (k) Arbitration. Except as necessary for the Company and its subsidiaries, affiliates, successors or assigns or
Executive to specifically enforce or enjoin a breach of this Agreement (to the extent such remedies are otherwise available), the parties agree that any and all disputes that may arise in connection with, arising out of or relating to this
Agreement, or any dispute that relates in any way, in whole or in part, to Executive’s services on behalf of the Company or any subsidiary, the termination of such services or any other dispute by and between the parties or their subsidiaries,
affiliates, successors or assigns, shall be submitted to binding arbitration in New York, New York according to the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association. The parties agree that the
prevailing party in any such dispute shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which he or it may be entitled. This arbitration obligation extends to any and all
claims that may arise by and between the parties or their subsidiaries, affiliates, successors or assigns, and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the
open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future
earnings, and claims under the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited
to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as
amended, the Age Discrimination in Employment Act of 1967, as amended, and any other state or federal law. 
 11. EXECUTIVE REPRESENTATION
AND ACCEPTANCE. By signing this Agreement, Executive hereby represents that Executive is not currently under any contractual obligation to work for another employer and that Executive is not restricted by any agreement or arrangement from
entering into this Agreement and performing Executive’s duties hereunder. 
  

 - 11 - 

 IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREOF, the parties hereto have executed and
delivered this Agreement as of the year and date first above written. 
  

			
	LIBERTY GROUP PUBLISHING, INC.
		
	By:	 	 /s/ William B. Doniger

	Name:	 	William Doniger
	Title:	 	Vice President
	
	LIBERTY GROUP OPERATING, INC.
		
	By:	 	 /s/ William B. Doniger

	Name:	 	William Doniger
	Title:	 	Vice President
	
	EXECUTIVE
	
	 /s/ Michael E. Reed
 Michael E. Reed

  

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