Document:

Exhibit 10.2 - Second Amendment to Credit Agreement

        SECOND AMENDMENT TO THE CREDIT AGREEMENT

        SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of October 29, 2008, among LEE ENTERPRISES, INCORPORATED, a Delaware corporation (the “Borrower”), the Lenders party hereto and DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent (in
        such capacity, the “Administrative Agent”). Unless otherwise indicated, all capitalized terms used herein and not otherwise defined shall have the respective meanings provided such terms in the Credit Agreement referred to below.

        W I T N E S S E T H :

        WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to an Amended and Restated Credit Agreement, dated as of December 21, 2005 (as amended, restated, modified and/or supplemented to, but not including, the date hereof, the “Credit Agreement”); and

        WHEREAS, subject to the terms, conditions and agreements herein set forth, the parties hereto have agreed to amend the Credit Agreement as herein provided;

        NOW, THEREFORE, it is agreed:

        
            	
                        I.

                    	
                        Amendments to the Credit Agreement.

                    

        

        1.         The definition of “Applicable Commitment Commission Percentage” and “Applicable Margin” appearing in Section 1.01 of the Credit Agreement is hereby amended by:

        (i)    deleting the text “or Level 4” appearing in clause (A) of said definition and inserting the text “, Level 4, Level 5 or Level 6” in lieu thereof;

        (ii)   deleting the text “0.50%” appearing in clause (B)(i) of said definition and inserting the text “1.50%” in lieu thereof;

        (iii)  deleting the text “1.50%” appearing in clause (B)(ii) of said definition and inserting the text “2.50%” in lieu thereof;

        (iv)  deleting the table appearing in said definition and inserting the following new table in lieu thereof:

         

        
            	
                        

                        

                        

                        “Level

                    	
                        

                        

                        

                        Total Leverage Ratio

                    	
                        A Term Loan, Revolving Loans and Swingline Loans

                        Base Rate Margin

                    	
                        

                        A Term Loan and

                        Revolving Loans

                        Eurodollar Margin

                    	
                        

                        

                        Applicable Commitment Commission Percentage

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        6

                    	
                        Equal to or greater than 6.25 to 1.00

                    	
                        3.00%

                    	
                        4.00%

                    	
                        0.50%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    

        

         

         

        
            

             

            
                	
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                        5

                    	
                        Equal to or greater than 5.75 to 1.00, but less than 6.25 to 1.00

                    	
                        2.50%

                    	
                        3.50%

                    	
                        0.50%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        4

                    	
                        Equal to or greater than 5.00 to 1.00 but less than 5.75 to 1.00

                    	
                         

                        2.00%

                    	
                         

                        3.00%

                    	
                         

                        0.50%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        3

                    	
                        Equal to or greater than 4.50 to 1.00 but less than 5.00 to 1.00

                    	
                        

                        1.875%

                    	
                        

                        2.875%

                    	
                        

                        0.50%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        2

                    	
                        Equal to or greater than 4.00 to 1.00 but less than 4.50 to 1.00

                    	
                        

                        1.75%

                    	
                        

                        2.75%

                    	
                        

                        0.50%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        1

                    	
                        Less than 4.00 to 1.00

                    	
                        1.625%

                    	
                        2.625%

                    	
                        0.50%”;

                    

        

         

         

        (v)   deleting the text “Level 4” appearing in the penultimate sentence of said definition and inserting the text “Level 6” in lieu thereof;

        (vi)  deleting the word “and” appearing at the end of clause (x) of the last sentence of said definition and inserting a comma in lieu thereof;

        (vii) deleting the text “Level 4” appearing in clause (y) of the last sentence of said definition and inserting the text “Level 6” in lieu thereof; and

        (viii)inserting the following new clause (z) at the end of the last sentence of said definition:

        “and (z) (A) for periods prior to the Second Amendment Effective Date, the Applicable Commitment Commission Percentage and Applicable Margin shall be calculated in accordance with this definition prior to giving effect to the Second Amendment and (B) except as provided in preceding clause (y), for the period from and including the Second Amendment Effective
        Date until the first Start Date thereafter, the Applicable Commitment Commission Percentage and Applicable Margin shall be those applicable to a Total Leverage Ratio based on Level 4”.

         

        2.         The definition of “Applicable Excess Cash Flow Recapture Percentage” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        3.         The definition of “Base Rate” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        4.         The definition of “Collateral” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

         

         

        
            

             

            
                	
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        5.         The definition of “Collateral Agent” appearing in Section 1.01 of the Credit Agreement is hereby amended by deleting the text “Pledge Agreement” appearing in said definition and inserting the text “Security Documents” in lieu thereof.

        6.         The definition of “Consolidated EBITDA” appearing in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting the word “and” appearing immediately preceding the text “(g)” appearing in said definition and (ii) inserting the text
        “, and (h) in the case of any period including any fiscal quarter of the Borrower ending in the Borrower’s fiscal year ending closest to September 30, 2009, up to the amount of Restructuring Charges actually recorded or accrued during such period, provided that no more than $15,000,000 in the aggregate of Restructuring Charges may be added back pursuant to this clause (h)” immediately preceding the period at the end of
        the first sentence of said definition.

        7.         The definition of “Credit Documents” appearing in Section 1.01 of the Credit Agreement is hereby amended by (i) inserting the text “the Security Agreement,” immediately following the text “the Pledge Agreement,” appearing in said definition and
        (ii) inserting the text “and each other Security Document” immediately following the text “, each Note” appearing at the end of said definition.

        8.         The definition of “Guaranty Release Date” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        9.         The definition of “Herald” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        10.       The definition of “Permitted PD LLC Notes Refinancing Indebtedness” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        11.       The definition of “Qualified Wholly-Owned Domestic Subsidiary” appearing in Section 1.01 of the Credit Agreement is hereby amended by deleting the text “(i) prior to the Guaranty Release Date, each Qualified Wholly-Owned Domestic Subsidiary Guarantor, and (ii) from and after
        the Guaranty Release Date,” appearing in said definition.

        12.       The definition of “Secured Creditors” appearing in Section 1.01 of the Credit Agreement is hereby amended by deleting the text “Pledge Agreement” appearing in said definition and inserting the text “respective Security Documents” in lieu thereof.

        13.       The definition of “Security Release Date” appearing in Section 1.01 of the Credit Agreement is hereby deleted in its entirety.

        14.       Section 1.01 of the Credit Agreement is hereby further amended by inserting the following new definitions in the appropriate alphabetical order:

        “Additional Security Documents” shall have the meaning provided in Section 9.12(b).   

         

        “Applicable Excess Cash Flow Recapture Percentage” shall mean, at any time, 75%; provided, however, so long as (i) no Default or Event of Default is then in existence

        
            

             

            
                	
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        and (ii) the Total Leverage Ratio as of the last day of the respective Excess Cash Flow Payment Period is less than 4.50:1.00, the Applicable Excess Cash Flow Recapture Percentage instead shall be 50%.

         

        “Base Rate” shall mean, at any time, the highest of (i) the Prime Lending Rate at such time, (ii) 1/2 of 1% in excess of the overnight Federal Funds Rate at such time and (iii) the Eurodollar Rate for a Eurodollar Loan with a one-month Interest Period commencing at such time plus 1.0%. For the purposes
        of this definition, the Eurodollar Rate shall be determined using the Eurodollar Rate as otherwise determined by the Administrative Agent in accordance with the definition of Eurodollar Rate, except that (x) if a given day is a Business Day, such determination shall be made on such day (rather than two Business Days prior to the commencement of an Interest Period) or (y) if a given day is not a Business Day, the Eurodollar Rate for such day shall be the rate determined by the
        Administrative Agent pursuant to preceding clause (x) for the most recent Business Day preceding such day. Any change in the Base Rate due to a change in the Prime Lending Rate, the Federal Funds Rate or such Eurodollar Rate shall be effective as of the opening of business on the day of such change in the Prime Lending Rate, the Federal Funds Rate or such Eurodollar Rate, respectively.

         

        “Collateral” shall mean all property (whether real or personal) with respect to which any security interests have been granted (or purported to be granted) pursuant to any Security Document, including, without limitation, all Pledge Agreement Collateral, all Security Agreement Collateral, all Mortgaged
        Properties and all cash and Cash Equivalents delivered as collateral pursuant to Section 5.02 or 11.”

         

        “Herald” shall mean The Herald Publishing Company, LLC, a New York limited liability company (and the successor to The Herald Company, Inc., a New York corporation).

        “Mortgage” shall mean a mortgage, deed of trust, deed to secure debt or similar security instrument.

        “Mortgage Policy” shall mean a Lender’s title insurance policy (Form 2006).

        “Mortgaged Property” shall mean any Real Property owned by the Borrower or any other Credit Party which is encumbered (or required to be encumbered) by a Mortgage pursuant to the terms hereof.

         

        “Permitted Encumbrance” shall mean:

         

        (i)        inchoate Liens for taxes, assessments or governmental charges or levies not yet due or Liens for taxes, assessments or governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with GAAP;

        (ii)       Liens in respect of property or assets of the Borrower or any of its Subsidiaries imposed by law, which were incurred in the ordinary course of business and do not

        
            

             

            
                	
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        secure Indebtedness for borrowed money, such as carriers’, warehousemen’s, material men's and mechanics’ liens and other similar Liens arising in the ordinary course of business, which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such
        Lien;

        (iii)      easements, rights-of-way, restrictions, covenants, encroachments and other similar charges or encumbrances, including without limitation, any encumbrances which would be reflected by an accurate survey of the property, and minor title deficiencies, in each case not securing Indebtedness and not materially interfering with the conduct of the
        business of the Borrower or any of its Subsidiaries; and

        (iv)      any exceptions to title as set forth in the Mortgage Policy, as reasonably approved by Collateral Agent.

         

        “PD LLC Refinancing Amendment” shall mean an amendment, in form and substance reasonably satisfactory to the Administrative Agent, to the PD LLC Operating Agreement and the other PD LLC Notes Documents, entered into in connection with the Permitted PD LLC Notes Refinancing Indebtedness to permit PD LLC
        to apply not more than $126,000,000 of Restricted Cash of Pulitzer and its Subsidiaries toward the refinancing of the PD LLC Notes as part of (and concurrently with) the incurrence of the Permitted PD LLC Notes Refinancing Indebtedness and to make such other changes as are reasonably satisfactory to the Administrative Agent in connection with the incurrence of the Permitted PD LLC Notes Refinancing Indebtedness, provided that any such
        other changes that are materially adverse to the interests of the Lenders shall be reasonably satisfactory to the Required Lenders.

        “Permitted PD LLC Notes Refinancing Indebtedness” shall mean Indebtedness solely of PD LLC so long as (i) the proceeds of such Indebtedness, together with not more than $126,000,000 of Restricted Cash of Pulitzer and its Subsidiaries, are used solely to refinance in full the PD LLC Notes and to pay any
        fees and expenses incurred in connection with obtaining such Indebtedness, (ii) such Indebtedness does not have any amortization, redemption, sinking fund, maturity or similar requirement prior to December 31, 2012, (iii) the aggregate principal amount of such Indebtedness shall not be more than the remainder of (X) the aggregate principal amount of the PD LLC Notes outstanding at such time less (Y) the actual amount (which shall not be
        more than $126,000,000) of Restricted Cash of Pulitzer and its Subsidiaries used to refinance the PD LLC Notes, (iv) the terms of such Indebtedness otherwise comply with the other provisions of the PD LLC Operating Agreement (as in effect on the Restatement Effective Date and, at any time after the Second Amendment Effective Date, as amended by the PD LLC Refinancing Amendment), (v) except as otherwise provided above in this definition, any terms thereof that are materially adverse to
        the interest of the Lenders (as compared to the corresponding terms of the PD LLC Notes (as in effect on the Restatement Effective Date)) are reasonable satisfactory to the Required Lenders and (vi) all of the terms and conditions thereof (and the documentation with respect thereto) are in form and substance reasonably satisfactory to the Administrative Agent.

         

        
            

             

            
                	
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        “Restructuring Charges” shall mean non-recurring one-time restructuring charges incurred by the Borrower or any of its Subsidiaries during the Borrower’s fiscal year ending closest to September 30, 2009 which are approved by the Administrative Agent based upon reasonably
        satisfactory evidence thereof delivered by the Borrower to the Administrative Agent.

        “Second Amendment” shall mean the Second Amendment to this Agreement, dated as of October 29, 2008.

        “Second Amendment Effective Date” shall have the meaning provided in the Second Amendment.

        “Security Agreement” shall have the meaning provided in Section 9.17.

        “Security Agreement Collateral” shall mean all “Collateral” as defined in the Security Agreement.

        “Security Document” shall mean and include each of the Security Agreement, the Pledge Agreement, each Mortgage and, after the execution and delivery thereof, each Additional Security Document.

        “Security Requirement Date” shall have the meaning provided in Section 9.17.

        15.       Section 2.14(a) of the Credit Agreement is hereby amended by deleting the text “the date which is 12 months prior to the B Term Loan Maturity Date” appearing in said Section and inserting the text “October 15, 2008” in lieu thereof.

        16.       Section 2.15(a) of the Credit Agreement is hereby amended by deleting the text “the date which is 12 months prior to the Revolving Loan Maturity Date” appearing in said Section and inserting the text “October 15, 2008” in lieu thereof.

        17.       Section 5.02(c) of the Credit Agreement is hereby amended by inserting the text “(other than Additional Permitted Indebtedness which shall be applied as otherwise provided by this Section 5.02(c))” immediately following the text “Restatement Effective Date” appearing in the parenthetical of said Section.

        18.       Section 5.02(d) of the Credit Agreement is hereby amended by deleting the text “; provided, however, such Net Sale Proceeds shall not be required to be so applied on such date so long as no Default or Event of Default then exists and
        such Net Sale Proceeds shall be used to purchase assets (other than inventory and working capital) used or to be used in the businesses permitted pursuant to Section 10.13 within 360 days following the date of such Asset Sale, and provided further, that if all or any portion of such Net Sale Proceeds are not so reinvested within such 360-day period (or such earlier date, if any, as the Borrower or the relevant Subsidiary determines not
        to reinvest the Net Sale Proceeds from such Asset Sale as set forth above), such remaining portion shall be applied on the last day of such period (or such earlier date, as the case may be) as provided above in this Section 5.02(d) without regard to the preceding proviso” appearing in said Section.

        19.       Section 5.02(f) of the Credit Agreement is hereby amended by deleting the text “and prior to the Security Release Date” appearing in said Section.

         

        
            

             

            
                	
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        20.       Section 8.03 of the Credit Agreement is hereby amended by deleting the text “Pledge Agreement” appearing in said Section and inserting the text “Security Documents” in lieu thereof.

        21.       Section 8.11 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 8.11 in lieu thereof:

        “8.11. Security Documents. (a)  Upon the execution and delivery thereof pursuant to Section 9.17, the provisions of the Security Agreement are effective to create in favor of the Collateral Agent for the benefit of the Secured Creditors a legal, valid and enforceable security interest in all right,
        title and interest of the Credit Parties in the Security Agreement Collateral described therein, and the Collateral Agent, for the benefit of the Secured Creditors, has (or within 10 days following the Security Requirement Date will have) a fully perfected security interest in all right, title and interest in all of the Security Agreement Collateral described therein, subject to no other Liens other than Permitted Liens. The recordation of (x) the Grant of Security Interest in U.S.
        Patents and (y) the Grant of Security Interest in U.S. Trademarks in the respective form attached to the Security Agreement, in each case in the United States Patent and Trademark Office, together with filings on Form UCC-1 made pursuant to the Security Agreement, will create, as may be perfected by such filings and recordation, a perfected security interest in the United States trademarks and patents covered by the Security Agreement, and the recordation of the Grant of Security
        Interest in U.S. Copyrights in the form attached to the Security Agreement with the United States Copyright Office, together with filings on Form UCC-1 made pursuant to the Security Agreement, will create, as may be perfected by such filings and recordation, a perfected security interest in the United States copyrights covered by the Security Agreement.

        (b)       The security interests created under the Pledge Agreement in favor of the Collateral Agent, as Pledgee, for the benefit of the Secured Creditors, constitute perfected security interests in the Pledge Agreement Collateral described in the Pledge Agreement, subject to no security interests of any other Person other than
        Permitted Liens applicable thereto.

        (c)       Upon the execution, delivery and recording thereof (which recording shall have been made within 10 days after such execution and delivery), each Mortgage creates, as security for the obligations purported to be secured thereby, a valid and enforceable perfected security interest in and mortgage lien on the respective
        Mortgaged Property in favor of the Collateral Agent (or such other trustee as may be required or desired under local law) for the benefit of the Secured Creditors, superior and prior to the rights of all third Persons (except that the security interest and mortgage lien created on such Mortgaged Property may be subject to the Permitted Encumbrances related thereto) and subject to no other Liens (other than Permitted Encumbrances related thereto).”.

         

        22.       Section 9.01(a) of the Credit Agreement is hereby deleted in its entirety and the following new Section 9.01(a) is inserted in lieu thereof:

        “(a)     Quarterly Financial Statements. Within 45 days after the close of each of the first three quarterly accounting periods in each fiscal year of the Borrower, (i) the consolidated balance sheet of the Borrowerand its Subsidiaries as at the end of such quarterly accounting period
        and the related consolidated statements of income and cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year

         

        
            

             

            
                	
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        ended with the last day of such quarterly accounting period, in each case setting forth comparative figures for the corresponding quarterly accounting period in the prior fiscal year and comparable budgeted figures for such quarterly accounting period as set forth in the respective budget delivered pursuant to Section 9.01(d), all of which shall be certified by an Authorized Officer of
        the Borrower that they fairly present in all material respects in accordance with GAAP the financial condition of the Borrower and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes, (ii) the consolidating and consolidated balance sheets of Pulitzerand its Subsidiaries as at the end of such quarterly accounting period and the related consolidating and
        consolidated statements of income and consolidated statement of cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting period, in each case setting forth comparative figures for the corresponding quarterly accounting period in the prior fiscal year, all of which shall be certified by an Authorized Officer of the Borrower that they fairly present in all material respects in accordance with GAAP
        the financial condition of Pulitzer and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes, and (iii) management’s discussion and analysis of the important operational and financial developments during such quarterly accounting period; provided that to the extent prepared to comply with SEC requirements
        and delivered to each Lender within the time requirement set forth above in this Section 9.01(a), a copy of the SEC Form 10-Q filed by the Borrower with the SEC for each such quarterly accounting period shall satisfy the requirements of clauses (i) and (iii) of this Section 9.01(a) except for any required comparison against budget as provided above (which comparison will still need to be delivered to each Lender separately pursuant to this Section 9.01(a)).”.

         

        23.       Section 9.01(b) of the Credit Agreement is hereby deleted in its entirety and the following new Section 9.01(b) is inserted in lieu thereof:

        “(b)     Annual Financial Statements. Within 90 days after the close of each fiscal year of the Borrower, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the related consolidated statements of income and
        stockholders’ equity and statement of cash flows for such fiscal year setting forth comparative figures for the preceding fiscal year and audited by KPMG LLP or other independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent (which audit shall be without a “going concern” or like qualification or exception and without any qualification or exception as to scope of audit), together with a report of such
        accounting firm stating that in the course of its regular audit of the financial statements of the Borrower and its Subsidiaries, which audit was conducted in accordance with generally accepted auditing standards, such accounting firm obtained no knowledge of any Default or an Event of Default under Section 10.08 or 10.09 which has occurred and is continuing or, if in the opinion of such accounting firm such a Default or an Event of Default has occurred and is continuing, a statement as
        to

        
            

             

            
                	
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        the nature thereof, (ii) the consolidating and consolidated balance sheets of Pulitzerand its Subsidiaries as at the end of such fiscal year and the related consolidating and consolidated statements of income and consolidated statement of cash flows and stockholders’ equity for such fiscal year, in each case setting forth comparative figures for the
        preceding fiscal year and (x) in the case of such consolidated financial statements, audited by KPMG LLP or other independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent (which audit shall be without a “going concern” or like qualification or exception and without any qualification or exception as to scope of audit) and (y) in the case of such consolidating financial statements, certified by an Authorized
        Officer of the Borrower that they fairly present in all material respects in accordance with GAAP the financial condition of Pulitzer and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, and (iii) management’s discussion and analysis of the important operational and financial developments during such fiscal year; provided that to the extent prepared to comply with SEC
        requirements and delivered to each Lender within the time requirement set forth above in this Section 9.01(b), a copy of the SEC Form 10-K filed by the Borrower with the SEC for such fiscal year shall satisfy the requirements of clauses (i) and (iii) of this Section 9.01(b) except for the opinion of the accounting firm as to no Default or Event of Default under Section 10.08 or 10.09 (which opinion will still need to be delivered to each Lender separately pursuant to this Section
        9.01(b)).”.

        24.       Section 9.01(e) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 9.01(e) in lieu thereof:

        “(e)     Officer’s Certificates. At the time of the delivery of the financial statements provided for in Sections 9.01(a) and (b), a compliance certificate from an Authorized Officer of the Borrower in the form of Exhibit K certifying on behalf of the Borrower that, to such
        officer’s knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if any Default or Event of Default has occurred and is continuing, specifying the nature and extent thereof, which certificate shall (i) set forth in reasonable detail the calculations required to establish whether the Borrower and its Subsidiaries were in compliance with the provisions of Sections 5.02(d), 5.02(f), 10.01(x), 10.01(xii), 10.01(xvii), 10.02(iv), 10.03(iii),
        10.03(vii), 10.03(viii), 10.03(ix) 10.04(iv), 10.04(vii), 10.04(ix), 10.04(xiii), 10.05(v), 10.05 (viii), 10.05(xiv) and 10.07 through 10.09, inclusive, at the end of such quarterly accounting period or fiscal year, as the case may be, (ii) if delivered with the financial statements required by Section 9.01(b), set forth in reasonable detail the amount of (and the calculations required to establish the amount of) Excess Cash Flow for the respective Excess Cash Flow Payment Period, and
        (iii) certify that there have been no changes to the Annexes of each of the Pledge Agreement and the Security Agreement, in each case since (x) with respect to the Pledge Agreement Annexes, the Restatement Effective Date and (y) with respect to the Security Agreement Annexes, the Security Requirement Date or, in either case, if later, since the date of the most recent certificate delivered pursuant to this Section 9.01(e), or if there have been any such changes, a list in reasonable
        detail of such changes (but, in each case with respect to this clause (iii), only to the extent that such changes are required to be reported to the Collateral Agent pursuant to the terms of the Security Documents) and whether the Borrower and the other Credit Parties have otherwise taken all actions

         

        
            

             

            
                	
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        required to be taken by them pursuant to the Security Documents in connection with any such changes.”.

         

        25.       Section 9.01(g) of the Credit Agreement is hereby amended by (i) inserting the text “, compliance certificates” immediately following the text “proxy materials” appearing in said Section and (ii) inserting the text “(including, without limitation, the PD LLC Notes or any Permitted PD LLC Notes Refinancing
        Indebtedness)” immediately following the text “material Indebtedness” appearing in said Section.

        26.       Section 9.02 of the Credit Agreement is hereby amended by (i) deleting the text “Annual” appearing in the title of said Section and inserting the text “Quarterly” in lieu thereof and (ii) deleting Section 9.02(b) of the Credit Agreement in its entirety and inserting the following new Section 9.02(b) in lieu
        thereof:

        “(b)     At a date to be mutually agreed upon between the Administrative Agent and the Borrower occurring on or prior to the 60th day after the close of each quarterly accounting period of the Borrower, the Borrower will, at the request of the Administrative Agent, hold a meeting (which may be done via a conference call or
        video conference) with all of the Lenders at which meeting will be reviewed the financial results of the Borrower and its Subsidiaries for the previous quarterly accounting period (and, in the case of the last quarterly accounting period of each fiscal year, for the previous fiscal year) and the budgets presented for the current fiscal year of the Borrower.”.

         

        27.       Section 9.03 of the Credit Agreement is hereby amended by inserting the following new clause (c) at the end thereof:

        “(c)     The Borrower will, and will cause each other Credit Party to, at all times keep its property insured in favor of the Collateral Agent, and all policies or certificates (or certified copies thereof) with respect to such insurance (i) shall be endorsed to the Collateral Agent’s satisfaction for the benefit of the
        Collateral Agent (including, without limitation, by naming the Collateral Agent as loss payee (in respect of property insurance) and/or additional insured (in respect of all insurance)), (ii) shall state that the respective insurer shall endeavor to provide at least 30 days’ prior written notice to the Collateral Agent prior to the cancellation of any such insurance policy, and (iii) shall be deposited with the Collateral Agent.”

         

        28.       Section 9.12 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 9.12 in lieu thereof:

        “9.12   Excluded Domestic Subsidiaries; Further Assurances; etc. (a) The Borrower will cause each Excluded Domestic Subsidiary (whether existing on the Restatement Effective Date or thereafter created, established or acquired) that has not entered into the Subsidiaries Guaranty, the Security
        Agreement and/or the Pledge Agreement because to have done so would have violated the terms and conditions contained in the applicable PD LLC Notes Documents (as in effect on the Restatement Effective Date) or the Permitted PD LLC Notes Refinancing Indebtedness, to take all

         

        
            

             

            
                	
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        actions required for such Excluded Domestic Subsidiary to become a party to the Subsidiaries Guaranty, the Security Agreement and/or the Pledge Agreement in accordance with the terms of the Subsidiaries Guaranty, the Security Agreement and/or the Pledge Agreement upon the earlier to occur of (x) the date upon which the restrictions set forth in the applicable PD LLC Notes Documents or
        Permitted PD LLC Notes Refinancing Indebtedness, as the case may be, cease to apply to such Excluded Domestic Subsidiary and (y) the date upon which the Administrative Agent provides written notice to the Borrower requesting any such Excluded Domestic Subsidiary to become a party to the Subsidiaries Guaranty, the Security Agreement and/or the Pledge Agreement, although in the case of this sub-clause (y), each such Excluded Domestic Subsidiary only shall be required to enter into the
        Subsidiaries Guaranty, the Security Agreement and/or the Pledge Agreement to the maximum extent then permitted by the terms and conditions of the applicable PD LLC Notes Documents or the Permitted PD LLC Notes Refinancing Indebtedness, as the case may be. On the date on which any Excluded Domestic Subsidiary becomes a party to the Subsidiaries Guaranty, the Security Agreement and the Pledge Agreement pursuant to this Section 9.12(a), such Excluded Domestic Subsidiary shall no longer be
        an “Excluded Domestic Subsidiary” but instead shall be a “Subsidiary Guarantor” for all purposes of this Agreement and each other Credit Document.

         

        (b)       The Borrower will, and will cause each other Credit Party to, grant to the Collateral Agent for the benefit of the Secured Creditors security interests and Mortgages in such assets and Real Property of the Borrower and such other Credit Party as are not covered by the original Security Documents as in effect on the
        Security Requirement Date (other than Real Property listed on Part B of Schedule X that are currently being held for sale) and as may be reasonably requested from time to time by the Administrative Agent or the Required Lenders (collectively, the “Additional Security Documents”). All such security interests and Mortgages shall be granted pursuant to documentation reasonably satisfactory in form and substance to the
        Collateral Agent and shall constitute valid and enforceable perfected security interests, hypothecations and Mortgages superior to and prior to the rights of all third Persons and enforceable against third parties and subject to no other Liens except for Permitted Liens or, in the case of Real Property, the Permitted Encumbrances related thereto. The Additional Security Documents or instruments related thereto shall have been duly recorded or filed in such manner and in such places as
        are required by law to establish, perfect, preserve and protect the Liens in favor of the Collateral Agent required to be granted pursuant to the Additional Security Documents and all taxes, fees and other charges payable in connection therewith shall have been paid in full. Notwithstanding the foregoing, this Section 9.12(a) shall not apply to (and the Borrower and the other Credit Parties shall not be required to grant a Mortgage in) any Real Property the fair market value (as
        determined in good faith by the Borrower) of which is less than $3,000,000.

         

        (c)       The Borrower will, and will cause each of the other Credit Parties to, at the expense of the Borrower, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements,
        powers of attorney, certificates, real property surveys, reports, landlord waivers, bailee agreements,

        
            

             

            
                	
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        control agreements and other assurances or instruments and take such further steps relating to the Collateral covered by any of the Security Documents as the Collateral Agent may reasonably require. In addition, at the time that the actions required or requested to be taken pursuant to clause (a) above are taken, the Borrower will cause the respective Excluded Domestic Subsidiary or
        Subsidiaries to execute and deliver, or cause to be executed and delivered, all relevant documentation (including, but not limited to, opinions of counsel and officers’ certificates) of the type described in each of (x) Section 6 as each such Excluded Domestic Subsidiary would have had to deliver if it were a Credit Party on the Restatement Effective Date and (y) Section 9.17 as each such Excluded Domestic Subsidiary would have had to deliver if it were a Credit Party on the
        Security Requirement Date. Furthermore, the Borrower will, and will cause the other Credit Parties to, deliver to the Collateral Agent such opinions of counsel, officers’ certificates, title insurance and other related documents as may be reasonably requested by the Administrative Agent to assure itself that this Section 9.12 has been complied with.

        (d)       If the Administrative Agent or the Required Lenders reasonably determine that they are required by law or regulation to have appraisals prepared in respect of any Real Property of the Borrower and the other Credit Parties constituting Collateral, the Borrower will, at its own expense, provide to the Administrative Agent
        appraisals which satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of the Financial Institution Reform, Recovery and Enforcement Act of 1989, as amended, and which shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent.

        (e)       The Borrower agrees that each action required by clauses (a), (b) and (c) of this Section 9.12 shall be completed as soon as possible, but in no event later than 15 days (or, in the case of Mortgages, 60 days) after such action is required to be taken or requested to be taken by the Administrative Agent;
        provided that, in no event will the Borrower or any of its Subsidiaries be required to take any action, other than using its best efforts, to obtain consents from third parties with respect to its compliance with this Section 9.12.”.

        29.       Section 9.15(a) of the Credit Agreement is hereby amended by inserting the text “prior to October 15, 2008” immediately following the text “the Borrower and each Qualified Wholly-Owned Subsidiary may from time to time” appearing therein.

        30.       Section 9.15(b) of the Credit Agreement is hereby amended by deleting the text “, prior to the Security Release Date,” appearing in said Section.

        31.       Section 9.16 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 9.16 in lieu thereof:

        “9.16 Foreign Subsidiaries Security. If following a change in the relevant sections of the Code or the regulations, rules, rulings, notices or other official pronouncements issued or promulgated thereunder, counsel for the Borrower reasonably acceptable to the Administrative Agent does not within 30 days after
        a request from the

         

        
            

             

            
                	
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        Administrative Agent or the Required Lenders deliver evidence, in form and substance mutually satisfactory to the Administrative Agent and the Borrower, with respect to any Foreign Subsidiary of the Borrower which has not already had all of its Equity Interests pledged pursuant to the Pledge Agreement to secure all of the Obligations (as defined in the Pledge Agreement) that (i) a
        pledge of more than 66-2/3% of the total combined voting power of all classes of Equity Interests of such Foreign Subsidiary entitled to vote, (ii) the entering into by such Foreign Subsidiary of a pledge agreement in substantially the form of the Pledge Agreement, (iii) the entering into by such Foreign Subsidiary of a guaranty in substantially the form of the Subsidiaries Guaranty and (iv) the entering into by such Foreign Subsidiary of a security agreement in substantially the form
        of the Security Agreement, in any such case could reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for Federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent for Federal income tax purposes, then in the case of a failure to deliver the evidence described in clause (i) above, that portion of such Foreign Subsidiary’s outstanding Equity Interests so issued by such
        Foreign Subsidiary, in each case not theretofore pledged pursuant to the Pledge Agreement to secure all of the Obligations (as defined in the Pledge Agreement), shall be pledged to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Pledge Agreement (or another pledge agreement in substantially similar form, if needed), and in the case of a failure to deliver the evidence described in clause (ii) or (iv) above, such Foreign Subsidiary shall execute and deliver
        the Pledge Agreement (or another pledge agreement in substantially similar form, if needed) or the Security Agreement (or another security agreement in substantially similar form, if needed), as the case may be, granting to the Collateral Agent for the benefit of the Secured Creditors a security interest in all assets, promissory notes and Equity Interests owned by such Foreign Subsidiary and securing the obligations of the Borrower under the Credit Documents and under any Interest Rate
        Protection Agreement or Other Hedging Agreement and, in the event the Subsidiaries Guaranty shall have been executed by such Foreign Subsidiary, the obligations of such Foreign Subsidiary thereunder, and in the case of a failure to deliver the evidence described in clause (iii) above, such Foreign Subsidiary shall execute and deliver the Subsidiaries Guaranty (or another guaranty in substantially similar form, if needed), guaranteeing the obligations of the Borrower under the Credit
        Documents and under any Interest Rate Protection Agreement or Other Hedging Agreement, in each case to the extent that the entering into of such Security Agreements, the Pledge Agreement or the Subsidiaries Guaranty (or substantially similar document) is permitted by the laws of the respective foreign jurisdiction and with all documents delivered pursuant to this Section 9.16 to be in form and substance reasonably satisfactory to the Administrative Agent and/or the Collateral
        Agent.”.

         

        32.       Section 9.17 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 9.17 in lieu thereof:

        “9.17. Security Agreement.  As promptly as practicable after the Second Amendment Effective Date (but, in any event, within 30 days after the Second Amendment Effective Date, or such later date as may be agreed to by the Administrative Agent in its sole discretion) (the
        “Security Requirement Date”), each Credit Party shall

         

        
            

             

            
                	
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        duly authorize, execute and deliver a security agreement in form and substance reasonably satisfactory to the Administrative Agent (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”) covering all of such Credit Party’s Security Agreement Collateral, together
        with:

        (i)    proper financing statements (Form UCC-1 or the equivalent) fully executed or authorized for filing under the UCC or other appropriate filing offices of each jurisdiction as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable, to perfect the security interests purported to be created by the Security
        Agreement;

        (ii)   certified copies of requests for information or copies (Form UCC-11), or equivalent reports as of a recent date, listing all effective financing statements that name the Borrower or any of the other Credit Parties as debtor and that are filed in the jurisdictions referred to in clause (i) above and in such other jurisdictions in which
        Collateral is located on the Security Requirement Date, together with copies of such other financing statements that name the Borrower or any other Credit Party as debtor (none of which shall cover any of the Collateral except (x) to the extent evidencing Permitted Liens or (y) those in respect of which the Collateral Agent shall have received termination statements (Form UCC-3) or such other termination statements as shall be required by local law fully executed for filing);

        (iii)      evidence of the completion of all other recordings and filings of, or with respect to, the Security Agreement as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable, to perfect the security interests intended to be created by the Security Agreement;

        (iv)      evidence that all other actions necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect and protect the security interests purported to be created by the Security Agreement have been taken, and the Security Agreement shall be in full force and effect; and

         

        (v)       from local counsel to each Credit Party, an opinion, in form and substance reasonably satisfactory to the Administrative Agent, addressed to the Administrative Agent, the Collateral Agent and each of the Lenders and dated the Security Requirement Date covering such matters incident to the transactions contemplated herein
        as the Administrative Agent may reasonably request including, but not limited to, the enforceability of the Security Agreement and the perfection of the security interests created thereunder.”.

         

        33.       Section 9 of the Credit Agreement is hereby further amended by inserting the following new Section 9.18 at the end of said Section:

        

        

        

        

        
            

             

            
                	
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        “9.18.  Mortgage; Title Insurance; Survey; Landlord Waivers; etc. On or prior to the 45th day after the Second Amendment Effective Date (or such later date as may be agreed to by the Administrative Agent in its sole discretion), the Borrower shall deliver, or cause the applicable other
        Credit Party to deliver, to the Collateral Agent:

        (i)    fully executed counterparts of Mortgages and corresponding UCC Fixture Filings, in form and substance reasonably satisfactory to the Collateral Agent, which Mortgages and UCC Fixture Filings shall cover each Real Property owned by the Borrower or any other Credit Party as set forth on Part A of
        Schedule X, together with evidence that counterparts of such Mortgages and UCC Fixture Filings have been delivered to the title insurance company insuring the Lien of such Mortgage for recording;

        (ii)   a Mortgage Policy relating to each Mortgage of the Mortgaged Property referred to above, issued by a title insurer reasonably satisfactory to the Collateral Agent, in an insured amount satisfactory to the Collateral Agent and insuring the Collateral Agent that the Mortgage on each such Mortgaged Property is a valid and enforceable first
        priority mortgage lien on such Mortgaged Property, free and clear of all defects and encumbrances except Permitted Encumbrances, with each such Mortgage Policy to be in form and substance reasonably satisfactory to the Collateral Agent;

        (iii)  to induce the title company to issue the Mortgage Policies referred to in subsection (ii) above, such affidavits, certificates, information and instruments of indemnification (including, without limitation, a so-called “gap” indemnification) as shall be required by such title company, together with payment by the Borrower of all
        Mortgage Policy premiums, search and examination charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of such Mortgages and issuance of such Mortgage Policies;

        (iv)  to the extent requested by the Collateral Agent and otherwise reasonably available to the Borrower, a survey of each Mortgaged Property (and all improvements thereon) in form and substance reasonably satisfactory to the Collateral Agent;

        (v)   flood certificates covering each Mortgaged Property in form and setting from substance acceptable to the Administrative Agent, certified to the Collateral Agent in its capacity as such and whether or not each such Mortgaged Property is located in a flood hazard area, as determined by designation of each such Mortgaged Property in a specified
        flood hazard zone by reference to the applicable FEMA map; and

        (vi)  from local counsel in each state in which a Mortgaged Property is located, an opinion in form and substance reasonably satisfactory to the Collateral Agent addressed to the Collateral Agent in its capacity as such, and each of the Lenders, dated the Security Requirement Date and covering such matters incident to the transactions contemplated herein
        as the Collateral Agent may reasonably request including, but not limited to, the enforceability of each Mortgage.”.

         

        
            

             

            
                	
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        34.       Section 10.01(xvii) of the Credit Agreement is hereby amended by deleting the text “$25,000,000” appearing in said Section and inserting the text “$1,000,000” in lieu thereof.

        35.       Section 10.02(iv) of the Credit Agreement is hereby amended by deleting the text “and/or reinvested” appearing in clause (y) of said Section.

        36.       Section 10.02(vii) of the Credit Agreement is hereby amended by inserting the text “, in each case so long as no such grant otherwise affects the Collateral Agent’s security interest in the asset or property subject thereto” at the end of said Section.

        37.       Section 10.02(viii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.02(viii) in lieu thereof:

        “(viii)  any Subsidiary of the Borrower may convey, lease, license, sell or otherwise transfer all or any part of its business, properties and assets to the Borrower or to any Qualified Wholly-Owned Domestic Subsidiary, so long as any security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security
        Documents in the assets so transferred shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such transfer) and all actions required to maintain said perfected status have been taken;”

        38.       Section 10.02(ix) of the Credit Agreement is hereby amended by (i) deleting the text “if prior to the Security Release Date” appearing in said Section and (ii) deleting the text “Pledge Agreement in any Equity Interests” appearing in said Section and inserting the text “Security Documents in the assets” in
        lieu thereof.

        39.       Section 10.02(x) of the Credit Agreement is hereby amended by (i) deleting the text “Pledge Agreement” appearing in said Section and inserting the text “Security Documents” in lieu thereof.

        40.       Section 10.02 of the Credit Agreement is hereby further amended by inserting the following text at the end of said Section:

        “To the extent the Required Lenders waive the provisions of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold as permitted by this Section 10.02 (other than to the Borrower or a Subsidiary thereof), such Collateral shall be sold free and clear of the Liens created by the Security Documents, and the Administrative Agent
        and the Collateral Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing.”

         

        41.       Section 10.03(iii) of the Credit Agreement is hereby amended by deleting the text “$5,000,000” appearing in said Section and inserting the text “$1,000,000” in lieu thereof.

        42.       Section 10.03(v) of the Credit Agreement is hereby amended by inserting the text “and, at any time after the Second Amendment Effective Date, as amended by the PD

        
            

             

            
                	
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        LLC Refinancing Amendment” immediately following the text “thereof as in effect on the Restatement Effective Date” appearing in said Section.

        43.       Section 10.03(vi) of the Credit Agreement is hereby amended by inserting the text “and, at any time after the Second Amendment Effective Date, as amended by the PD LLC Refinancing Amendment” immediately following the text “as in effect on the Restatement Effective Date” appearing in said
        Section.

        44.       Section 10.03(vii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.03(vii) in lieu thereof:

        “(vii)   the Borrower may declare and pay quarterly cash Dividends on its common stock on a basis consistent with its historical practices so long as (i) the aggregate amount of all such cash Dividends does not exceed in any fiscal quarter of the Borrower an amount equal to $0.18 per share of common stock of the Borrower outstanding on the
        respective record date for establishing such Dividends (as such amount may be adjusted for stock splits or stock combinations), (ii) such cash Dividends are paid within 60 days after the same are declared by the board of directors of the Borrower, (iii) no Default or Event of Default exists at the time of the payment of the respective Dividend or would exist immediately after giving effect thereto and (iv) at least five Business Days prior to the making or payment of any such Dividend
        pursuant to this Section 10.03(vii), the Borrower shall have delivered to the Administrative Agent a certificate executed by an Authorized Officer of the Borrower setting forth (in reasonable detail) the recalculation of the Total Leverage Ratio on a Pro Forma Basis for the Calculation Period then most recently ended prior to the date of such Dividend for which financial statements have been delivered to the
        Lenders under this Agreement, and such recalculation shall show that the Total Leverage Ratio as of the last day of such Calculation Period would have been less than 4.50:1.00;”.

        45.       Section 10.03(viii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.03(viii) in lieu thereof:

        “(viii)   the Borrower may redeem or repurchase additional outstanding shares of its Equity Interests and may declare and pay additional cash Dividends on its Equity Interests in an aggregate amount for all such redemptions, repurchases and other Dividends paid or made by the Borrower pursuant to this clause (viii) not to exceed $35,000,000 in
        any fiscal year of the Borrower so long as (i) no Default or Event of Default exists at the time of the making or payment of the respective Dividend or would exist immediately after giving effect thereto and (ii) at least five Business Days prior to the making or payment of any such Dividend pursuant to this Section 10.03(viii), the Borrower shall have delivered to the Administrative Agent a certificate executed by an Authorized Officer of the Borrower setting forth (in reasonable
        detail) the recalculation of the Total Leverage Ratio on a Pro Forma Basis for the Calculation Period then most recently ended prior to the date of such Dividend for which financial statements have been delivered to the Lenders under this Agreement, and such recalculation shall show that the Total Leverage Ratio as of the last day of such Calculation Period would have been less than 4.50:1.00;
        and”.

         

         

        
            

             

            
                	
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        46.       Section 10.04(xii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.04(xii) in lieu thereof:

        “(xii)   Indebtedness of PD LLC incurred pursuant to the Permitted PD LLC Notes Refinancing Indebtedness and of Pulitzer under an unsecured guaranty thereof on terms (and pursuant to documentation) in form and substance reasonably satisfactory to the Administrative Agent, but only so long as Herald provides an indemnity in favor
        of

        Pulitzer for any payments made under such unsecured guaranty on the same basis provided by Herald under the current PD LLC Indemnity Agreement; and”.

         

        47.       Section 10.04(xiii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.04(xiii) in lieu thereof:

        “(xiii)  additional unsecured subordinated Indebtedness of the Borrower (“Additional Permitted Indebtedness”), so long as (i) no Default or Event of Default then exists or would result from the incurrence or issuance of any such Additional Permitted Indebtedness, (ii) at least five
        Business Days prior to the incurrence or issuance of any such Additional Permitted Indebtedness, the Borrower shall have delivered to the Administrative Agent a certificate executed by an Authorized Officer of the Borrower setting forth (in reasonable detail) the recalculation of the Interest Expense Coverage Ratio and the Total Leverage Ratio on a Pro Forma Basis for the Calculation Period then most
        recently ended prior to the date of such incurrence or issuance for which financial statements have been delivered to the Lenders under this Agreement (and determined as if such Additional Permitted Indebtedness had been incurred or issued on the first day of, and had remained outstanding throughout, such Calculation Period, and also taking into account the aggregate principal amount of all other Additional Permitted Indebtedness theretofore incurred or issued after the first day of
        such Calculation Period), and such recalculation shall show that the Borrower would have been in compliance with Sections 10.08 and 10.09 as of the last day of such Calculation Period, (iii) such Additional Permitted Indebtedness (A) is not guaranteed by any Subsidiary of the Borrower that is not a Subsidiary Guarantor, (B) matures no earlier than December 31, 2012, (C) requires no payment of principal (whether by way of scheduled amortization, mandatory redemption, mandatory
        prepayment, sinking fund or otherwise) prior to its maturity, except (x) upon the occurrence of a change of control (the definition of which shall be acceptable to the Administrative Agent) so long as the terms thereof do not require any such redemption or other action unless (and until) all Obligations have been paid in full and the Total Commitment and all Letters of Credit have been terminated or the requisite consents under this Agreement have been obtained to permit such redemption
        or other action upon the occurrence of a change of control and (y) as a customary mandatory offer to repurchase following an asset sale, (D) does not require the Borrower or any of its Subsidiaries to maintain any specified financial condition (whether stated as a covenant, event of default or otherwise), and (E) contains subordination and other provisions that are reasonably satisfactory to the Administrative Agent and (iv) 100% of the Net Cash Proceeds of the respective issuance or
        incurrence of such Additional Permitted Indebtedness are applied as a mandatory repayment in accordance with Section 5.02(c).”.

         

         

        
            

             

            
                	
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        48.       Section 10.05(ii) of the Credit Agreement is hereby amended by deleting the text “$50,000,000” appearing in said Section and inserting the text “$15,000,000” in lieu thereof.

        49.       Section 10.05(viii) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.05(viii) in lieu thereof:

        “(viii)  (A) the Borrower and its Wholly-Owned Domestic Subsidiaries may make intercompany loans and advances between and among one another and (B) Qualified Wholly-Owned Foreign Subsidiaries may make intercompany loans and advances between and among one another and to the Borrower and the Qualified Wholly-Owned Domestic Subsidiaries (all such
        intercompany loans and advances pursuant to this Section 10.05(viii), collectively, the “Intercompany Loans”), provided that (x) the aggregate amount of all Intercompany Loans made by the Borrower and the Qualified Wholly-Owned Domestic Subsidiaries to Wholly-Owned Domestic Subsidiaries that are not Qualified Wholly-Owned Domestic Subsidiaries at any time prior to October
        15, 2008 shall not exceed $75,000,000 at any time outstanding (determined without regard to any write-downs or write-offs thereof), (y) no Intercompany Loans shall be permitted to made by the Borrower and the Qualified Wholly-Owned Domestic Subsidiaries to Wholly-Owned Domestic Subsidiaries that are not Qualified Wholly-Owned Domestic Subsidiaries at any time on or after October 15, 2008 and (z) each Intercompany Loan constituting Intercompany Debt shall be subject to the terms and
        conditions contained in the Intercompany Subordination Agreement;”.

         

        50.       Section 10.05(xiv) of the Credit Agreement is hereby amended by (i) inserting the text “and prior to October 15, 2008” immediately following the text “the Original Effective Date” appearing in said Section and (ii) inserting the text “; provided,
        however, that no additional loans, advances or other Investments may be made pursuant to this clause (xiv) on or after October 15, 2008 other than Investments made by the Borrower or any other Credit Party consisting of (I) up to a $1,000,000 cash Investment in Metrix4Media for up to 8% of the equity interests of such Person, (II) up to a $1,000,000 cash Investment in Kaango for up to 5% of the equity interests of such Person and (III) up to a
        $1,000,000 cash Investment in The Port for up to 9% of the equity interests of such Person” at the end of said Section.

        51.       Section 10.07 of the Credit Agreement is hereby amended by deleting the text “At any time prior to the Security Release Date:” appearing in the first sentence of said Section.

        52.       Section 10.07(a) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.07(a) in lieu thereof:

        “(a)     The Borrower will not, and will not permit any of its Subsidiaries to, make any Capital Expenditures, except that (I) during any fiscal year of the Borrower (taken as one accounting period) ending closest to September 30, 2008 or prior to such date, the Borrower and its Subsidiaries may make Capital Expenditures so long as the
        aggregate amount of such Capital Expenditures does not exceed 5.00% of the aggregate amount of the Borrower’s consolidated gross revenues from continuing operations for its

         

        
            

             

            
                	
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        immediately preceding fiscal year (determined (x) in respect of the Borrower’s fiscal year ended September 30, 2005, as if the Pulitzer Acquisition had occurred on October 1, 2004, and (y) on a Pro Forma Basis for each Permitted Acquisition consummated during such immediately preceding fiscal year as if same
        had occurred on the first day of such immediately preceding fiscal year) and (II) during any fiscal year of the Borrower (taken as one accounting period) ending closest to September 30, 2009 or thereafter, the Borrower and its Subsidiaries may make Capital Expenditures so long as the aggregate amount of such Capital Expenditures does not exceed $20,000,000 during such fiscal year. In addition to the foregoing, in each fiscal year of the Borrower ending closest to September 30,
        2008 or prior to such date in which a Permitted Acquisition is consummated the aggregate amount of Capital Expenditures permitted to be made in such year shall be increased by an amount equal to the product of (I) 5.00% of the gross revenues from continuing operations of the respective Acquired Entity or Business acquired in each such Permitted Acquisition for the most recently ended 12-month period for which financial statements are available for such Acquired Entity or Business (as
        certified in the respective officer’s certificate delivered pursuant to clause (vii) of Section 9.15(a)) multiplied by (II) a fraction, the numerator of which is the number of days remaining in such fiscal year and the denominator of which is 365 (or 366, as the case may be).”.

         

        53.       Section 10.07(b) of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.07(b) in lieu thereof:

        “(b)     In addition to the foregoing, in the event that the amount of Capital Expenditures permitted to be made by the Borrower and its Subsidiaries pursuant to clause (a) above in any fiscal year of the Borrower (commencing with the Borrower’s fiscal year ending closest to September 30, 2009, but before giving effect to any
        increase in such permitted Capital Expenditure amount pursuant to this clause (b)) is greater than the amount of Capital Expenditures actually made by the Borrower and its Subsidiaries during such fiscal year, the lesser of (x) such excess and (y) 50% of the applicable permitted scheduled Capital Expenditure amount as set forth in such clause (a) above for such fiscal year may be carried forward and utilized to make Capital Expenditures in the immediately succeeding fiscal year,
        provided that (x) no amounts once carried forward pursuant to this Section 10.07(b) may be carried forward to any fiscal year of the Borrower thereafter and (y) no amounts may be carried forward pursuant to this Section 10.07(b) in respect of any fiscal year of the Borrower ended on or prior to the Borrower’s fiscal year ended closest to September 30, 2008.”

        54.       Section 10.07(c) of the Credit Agreement is hereby amended by deleting all of the text of said Section and inserting the text “[RESERVED].” in lieu thereof.

        55.       Section 10.08 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.08 in lieu thereof:

        “10.08. Interest Expense Coverage Ratio. The Borrower will not permit the Interest Expense Coverage Ratio for any Test Period ending on the last day of a

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
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        fiscal quarter of the Borrower ending closest to the relevant date set forth below to be less than the ratio set forth opposite such fiscal quarter below:

        

        	
                    Fiscal Quarter Ending Closest to

                	
                    Ratio

                
	
                    On or prior to June 30, 2008

                	
                    2.50:1.00

                

        

        

        
            	
                        September 30, 2008 through and including March 31, 2009

                    	
                        2.00:1.00

                    
	
                        June 30, 2009 through and including September 30, 2009

                    	
                        1.70:1.00

                    
	
                        December 31, 2009

                    	
                        1.80:1.00

                    
	
                        March 31, 2010

                    	
                        1.90:1.00

                    
	
                        June 30, 2010 through and including September 30, 2010

                    	
                        2.00:1.00

                    
	
                        On or after December 31, 2010

                    	
                        2.50:1.00”.

                    

        

         

        56.       Section 10.09 of the Credit Agreement is hereby amended by (i) deleting the table appearing in said Section in its entirety and inserting the following new table in lieu thereof:

        
            	
                        “Period

                    	
                        Ratio

                    
	
                        From the Original Effective Date through and including the last day of the Borrower’s fiscal quarter ending closest to September 30, 2005

                    	
                        6.25:1.00

                    
	
                        The first day of the Borrower’s fiscal quarter beginning closest to October 1, 2005 through and including the last day of the Borrower’s fiscal quarter ending closest to June 30, 2006

                    	
                        6.00:1.00

                    
	
                        The first day of the Borrower’s fiscal quarter beginning closest to July 1, 2006 through and including the last day of the Borrower’s fiscal quarter ending closest to September 30, 2007

                    	
                        5.75:1.00

                    
	
                        The first day of the Borrower’s fiscal quarter beginning closest to October 1, 2007 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to September 30, 2008

                    	
                        5.25:1.00

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                        	
                            -21-

                        

            

             

             

            

        

         

        
            

        

         

        
            	
                        “Period

                    	
                        Ratio

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to September 30, 2008 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to December 31, 2008

                    	
                        6.25:1.00

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to December 31, 2008 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to March 31, 2009

                    	
                        6.50:1.00

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to March 31, 2009 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to December 31, 2009

                    	
                        6.75:1.00

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to December 31, 2009 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to September 30, 2010

                    	
                        6.50:1.00

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to September 30, 2010 through and including the day before the last day of the Borrower’s fiscal quarter ending closest to December 31, 2010

                    	
                        6.25:1.00

                    
	
                        The last day of the Borrower’s fiscal quarter ending closest to December 31, 2010 and thereafter

                    	
                        4.50:1.00

                    

        

         

        (ii)       deleting the text “Notwithstanding anything to the contrary contained above in this Section 10.09, each of the ratios contained above in this Section 10.09 shall be reduced by 0.75:1.00 for any period from and after the Security Release Date; provided,
        however, in no event shall any of the ratios contained above in this Section 10.09 be reduced below 4.50:1.00 by operation of the provisions of this sentence.” appearing at the end of said Section.

         

        57.       Section 10.10(iv) of the Credit Agreement is hereby amended by (i) inserting the text “and not more than $126,000,000 of Restricted Cash of Pulitzer and its Subsidiaries” immediately following the second instance of the text “PD LLC Notes Refinancing Indebtedness” appearing in said Section and (ii) deleting the word
        “or” at the end of said Section.

        58.       Section 10.10 of the Credit Agreement is hereby further amended by (i) inserting the text “the PD LLC Refinancing Amendment and” immediately following the text “Refinancing Indebtedness, other than” appearing in clause (v) of said Section, (ii) inserting the text “other” immediately preceding the text
        “amendments or modifications with the consent” appearing in clause (v) of said Section, (iii) deleting the period appearing at the end of clause (v) of said Section and inserting a semi-colon in lieu thereof and (iv) inserting the following new clauses (vi) and (vi) at the end of said Section:

         

        
            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -22-

                        

            

             

             

            

        

         

        
            

        

        “(vi) make (or give any notice in respect of) any voluntary or optional payment or prepayment on or redemption, repurchase or acquisition for value of, or any prepayment or redemption as a result of any asset sale, change of control or similar event of (including, in each case without limitation, by way of depositing with the trustee with respect thereto or any
        other Person money securities before due for the purpose of paying when due), any Additional Permitted Indebtedness; or

         

        (vii) after the execution and delivery thereof, amend or modify, or permit the amendment or modification of, any provision of any indenture, purchase agreement or other document, agreement or note relating to (or evidencing) any Additional Permitted Indebtedness (or any guaranty thereof).”

         

        59.       Section 10.11 of the Credit Agreement is hereby amended by inserting the text “and, at any time after the Second Amendment Effective Date, as amended by the PD LLC Refinancing Amendment” immediately following the text “as in effect on the Restatement Effective Date” appearing in said Section.

        60.       Section 10.14 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 10.14 in lieu thereof:

        “10.14.Limitation on Creation of Subsidiaries. The Borrower will not, and will not permit any of its Subsidiaries to, establish, create or acquire after the Restatement Effective Date any Subsidiary, provided that (x) the Borrower and its Wholly-Owned
        Subsidiaries shall be permitted to establish, create and, to the extent permitted by this Agreement, acquire Wholly-Owned Subsidiaries, and (y) the Borrower and its Subsidiaries shall be permitted to establish, create and acquire Non-Wholly Owned Subsidiaries to the extent permitted by Section 10.05(xiv) or as a result of a Permitted Acquisition, in each case so long as (i) at least 5 days’ prior written notice thereof is given by the Borrower to the Administrative Agent (or
        such shorter period of time as is acceptable to the Administrative Agent in any given case), (ii) the capital stock or other Equity Interests of such new Subsidiary are promptly pledged pursuant to, and to the extent required by, this Agreement and the Pledge Agreement and the certificates, if any, representing such stock or other Equity Interests, together with stock or other appropriate powers duly executed in blank, are delivered to the Collateral Agent, and (iii) each such new
        Domestic Subsidiary (and, to the extent required by Section 9.16, each such new Foreign Subsidiary) executes a counterpart of the Subsidiaries Guaranty, the Security Agreement, the Pledge Agreement and the Intercompany Subordination Agreement; provided, however, until such time as Pulitzer and its Domestic Subsidiaries become Qualified Wholly-Owned Domestic Subsidiaries, any such Person
        that is not a Qualified Wholly-Owned Domestic Subsidiary may not acquire any new Subsidiaries pursuant to a Permitted Acquisition or an Investment made pursuant to Section 10.05(xiv). In addition, each new Subsidiary that is required to execute any Credit Document shall execute and deliver, or cause to be executed and delivered, all other relevant documentation (including opinions of counsel) of the type described in each of (x) Section 6 as such new Subsidiary would have had to deliver
        if such new Subsidiary were a Credit Party on the Restatement Effective Date and (y) Section 9.11 as each such Excluded Domestic

         

         

        

         

        
            	
                        NEWYORK 6921976 (2K)

                    	
                         

                    	
                        -23-

                    

        

         

        
            
                

            

        

        
             
        

        

        Subsidiary would have had to deliver if it were a Credit Party on the Security Requirement Date.”.

         

        61.       Section 11.07 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 11.07 in lieu thereof:

                   “11.07.Security Documents. Any of the Security Documents shall cease to be in full force and effect, or shall cease to give the Collateral Agent for the benefit of the Secured Creditors the Liens, rights, powers and privileges
        purported to be created thereby (including, without limitation, a perfected security interest in, and Lien on, all of the Collateral, in favor of the Collateral Agent, superior to and prior to the rights of all third Persons (except as permitted by Section 10.01), and subject to no other Liens (except as permitted by Section 10.01), or any Credit Party shall default in the due performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant
        to any such Security Document and such default shall continue beyond the period of grace, if any, specifically applicable thereto pursuant to the terms of such Security Document; or”.

         

        62.       Clause (v) of the remedies paragraph immediately following Section 11.11 of the Credit Agreement is hereby amended by deleting the text “Pledge Agreement” appearing in said clause (v) and inserting the text “Security Documents” in lieu thereof.

        63.       Section 12.01 of the Credit Agreement is hereby amended by deleting the text “Pledge Agreement” appearing in said Section and inserting the text “Security Documents” in lieu thereof.

        64.       Section 12.10 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 12.10 in lieu thereof:

        “12.10.             Collateral Matters. (a)  Each Lender authorizes and directs the Collateral Agent to enter into the Security Documents for the benefit of the Lenders and the other Secured Creditors. Each Lender hereby agrees, and
        each holder of any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the Required Lenders (or all of the Lenders hereunder, to the extent required by Section 13.12) in accordance with the provisions of this Agreement or the Security Documents, and the exercise by the Required Lenders (or all the Lenders, as the case may be) of the powers set forth herein or therein, together with such other powers as are reasonably
        incidental thereto, shall be authorized and binding upon all of the Lenders. The Collateral Agent is hereby authorized on behalf of all of the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time prior to an Event of Default, to take any action with respect to any Collateral or the Security Documents which may be necessary to perfect and maintain perfected the security interest in and liens upon the Collateral granted pursuant to the
        Security Documents.

         

        (b)       The Lenders hereby authorize the Collateral Agent, at its option and in its discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral (i) upon termination of the Commitments and payment and satisfaction of all

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -24-

                        

            

             

             

            

        

         

        
            

        

        of the Obligations at any time arising under or in respect of this Agreement or the Credit Documents or the transactions contemplated hereby or thereby, (ii) constituting property being sold or otherwise disposed of (to Persons other than the Borrower and its Subsidiaries) upon the sale or other disposition thereof in compliance with Section 10.02, (iii) if approved, authorized or
        ratified in writing by the Required Lenders (or all of the Lenders hereunder, to the extent required by Section 13.12) or (iv) as otherwise may be expressly provided in this Agreement and/or the relevant Security Documents. Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the Collateral Agent’s authority to release particular types or items of Collateral pursuant to this Section 12.10.

        (c)       The Collateral Agent shall have no obligation whatsoever to the Lenders or to any other Person to assure that the Collateral exists or is owned by any Credit Party or is cared for, protected or insured or that the Liens granted to the Collateral Agent herein or pursuant hereto have been properly or sufficiently or
        lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Collateral Agent in this Section 12.10 or in any of the Security Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent
        may act in any manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to the Lenders, except for its gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).”.

        65.       Section 13.02 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the following new Section 13.02 in lieu thereof:

        “13.02.Right of Setoff. (a) In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent, each Issuing Lender and each Lender is hereby
        authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by the Administrative Agent, such Issuing Lender or such Lender (including, without limitation, by branches and agencies of the Administrative Agent, such
        Issuing Lender or such Lender wherever located) to or for the credit or the account of the Borrower or any of its Subsidiaries against and on account of the Obligations and liabilities of the Credit Parties to the Administrative Agent, such Issuing Lender or such Lender under this Agreement or under any of the other Credit Documents, including, without limitation, all interests in Obligations purchased by such Lender pursuant to Section 13.06(b), and all other claims of any nature or
        description arising out of or connected with this Agreement or any other Credit Document, irrespective of whether or not the Administrative Agent, such Issuing Lender or such

         

         

         

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -25-

                        

            

            
                 
            

            

             

            Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured.

            

        

         

        (b)       NOTWITHSTANDING THE FOREGOING SUBSECTION (a), AT ANY TIME THAT THE LOANS OR ANY OTHER OBLIGATION SHALL BE SECURED BY REAL PROPERTY LOCATED IN CALIFORNIA, NO LENDER SHALL EXERCISE A RIGHT OF SETOFF, LIEN OR COUNTERCLAIM OR TAKE ANY COURT OR ADMINISTRATIVE ACTION OR INSTITUTE ANY PROCEEDING TO ENFORCE ANY PROVISION OF THIS AGREEMENT
        OR

        ANY NOTE UNLESS IT IS TAKEN WITH THE CONSENT OF THE REQUIRED LENDERS OR APPROVED IN WRITING BY THE ADMINISTRATIVE AGENT, IF SUCH SETOFF OR ACTION OR PROCEEDING WOULD OR MIGHT (PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 580a, 580b, 580d AND 726 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE OR SECTION 2924 OF THE CALIFORNIA CIVIL CODE, IF APPLICABLE, OR OTHERWISE) AFFECT OR
        IMPAIR THE VALIDITY, PRIORITY OR ENFORCEABILITY OF THE LIENS GRANTED TO THE COLLATERAL AGENT PURSUANT TO THE SECURITY DOCUMENTS OR THE ENFORCEABILITY OF THE NOTES AND OTHER OBLIGATIONS HEREUNDER, AND ANY ATTEMPTED EXERCISE BY ANY LENDER OF ANY SUCH RIGHT WITHOUT OBTAINING SUCH CONSENT OF THE REQUIRED LENDERS OR THE ADMINISTRATIVE AGENT SHALL BE NULL AND VOID. THIS SUBSECTION (b) SHALL BE SOLELY FOR THE BENEFIT OF EACH OF THE LENDERS AND THE ADMINISTRATIVE AGENT
        HEREUNDER.”.

         

        66.       Section 13.04(a) of the Credit Agreement is hereby amended by deleting the text “the Pledge Agreement” appearing in said Section and inserting the text “all of Security Documents” in lieu thereof.

        67.       Section 13.08 of the Credit Agreement is hereby amended by inserting the text “, EXCEPT AS OTHERWISE PROVIDED IN ANY MORTGAGE,” immediately preceding the text “BE CONSTRUED IN ACCORDANCE WITH” appearing in said Section.

        68.       Section 13.17 of the Credit Agreement is hereby amended by deleting said Section in its entirety and inserting the text “[RESERVED]” in lieu thereof.

        69.       The Credit Agreement is hereby further amended by inserting a new Schedule X thereto in the form of Schedule X attached hereto.

        70.       Notwithstanding anything to the contrary contained in the Credit Agreement, the Borrower shall not be entitled to request, and no Lender shall provide, any Incremental Loan Commitment or Incremental Term Loan at any time on or after October 15, 2008.

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -26-

                        

            

             

             

            

        

         

        
            

        

         

        
            	
                        II.

                    	
                        Miscellaneous Provisions.

                    

        

        1.         In order to induce the Lenders to enter into this Amendment, the Borrower hereby represents and warrants that (i) no Default or Event of Default exists as of the Second Amendment Effective Date (as defined below) both immediately before and immediately after giving effect to this Amendment on such date and (ii) all
        of the representations and warranties contained in the Credit Agreement and in the other Credit Documents are true and correct in all material respects on the Second Amendment Effective Date both immediately before and immediately after giving effect to this Amendment on such date, with the same effect as though such representations and warranties had been made on and as of the Second Amendment

        Effective Date (it being understood that any representation or warranty made as of a specific date shall be true and correct in all material respects as of such specific date).

        2.         The Credit Parties acknowledge and agree that the Credit Agreement (as modified hereby) and each other Credit Document, and all Obligations and Liens thereunder, are valid and enforceable against the Credit Parties in every respect and all of the terms and conditions thereof are legally binding upon the Credit Parties, in each case
        all without offset, counterclaims or defenses of any kind.

        3.         In further consideration of the Lenders’ execution of this Amendment, each Credit Party unconditionally and irrevocably acquits and fully forever releases and discharges each Lender, each Issuing Lender, the Administrative Agent, the Collateral Agent and all affiliates, partners, subsidiaries, officers, employees, agents,
        attorneys, principals, directors and shareholders of such Persons, and their respective heirs, legal representatives, successors and assigns (collectively, the “Releasees”) from any and all claims, demands, causes of action, obligations, remedies, suits, damages and liabilities of any nature whatsoever, whether now known, suspected or claimed, whether arising under common law, in equity or under statute, which such Credit
        Party ever had or now has against any of the Releasees and which may have arisen at any time prior to the date hereof and which were in any manner related to this Amendment, the Credit Agreement, any other Credit Document or related documents, instruments or agreements or the enforcement or attempted or threatened enforcement by any of the Releasees of any of their respective rights, remedies or recourse related thereto (collectively, the “Released
        Claims”). Each Credit Party covenants and agrees never to commence, voluntarily aid in any way, prosecute or cause to be commenced or prosecuted against any of the Releasees any action or other proceeding based upon any of the Released Claims.

        4.         This Amendment is limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Credit Agreement or any other Credit Document.

        5.         This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the
        Borrower and the Administrative Agent.

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -27-

                        

            

             

             

            

        

         

        
            

        

        6.         THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

        7.         This Amendment shall become effective on the date (the “Second Amendment Effective Date”) when each of the following conditions shall have been satisfied:

        (i)    the Borrower, each other Credit Party and Lenders constituting the Required Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to White & Case LLP, 1155 Avenue of the
        Americas, New York, NY 10036 Attention: May Yip (facsimile number: 212-354-8113 / e-mail address: myip@whitecase.com); and

        (ii)   the Borrower shall have paid to the Administrative Agent and the Lenders all fees, costs and expenses (including, without limitation, legal fees and expenses) payable to the Administrative Agent and the Lenders to the extent then due pursuant to the Credit Agreement.

        8.         The Borrower hereby covenants and agrees that, so long as the Second Amendment Effective Date occurs, it shall pay to each Lender which executes and delivers to the Administrative Agent (or its designee) a counterpart hereof by 6:30 P.M. (New York City time) on October 29, 2008 (or, if later, on the Second Amendment Effective
        Date), a non-refundable cash fee (the “Amendment Fee”) in Dollars in an amount equal to 50 basis points (0.50%) on an amount equal to the sum of (i) the aggregate principal amount of all Term Loans of such Lender outstanding on the Second Amendment Effective Date plus (ii) the Revolving Loan Commitment of such Lender as in effect on the Second Amendment Effective Date. The
        Amendment Fee shall not be subject to counterclaim or set-off, or be otherwise affected by, any claim or dispute relating to any other matter. The Amendment Fee shall be paid by the Borrower to the Administrative Agent for distribution to the relevant Lenders not later than the Business Day following the Second Amendment Effective Date.

        9.         By executing and delivering a copy hereof, each Credit Party hereby agrees that all Obligations of the Credit Parties shall be fully guaranteed pursuant to the Subsidiaries Guaranty and shall be fully secured pursuant to the Pledge Agreements, in each case in accordance with the respective terms and provisions thereof and that this
        Amendment does not in any manner constitute a novation of any Obligations under any of the Credit Documents.

        10.       From and after the Second Amendment Effective Date, all references in the Credit Agreement and each of the other Credit Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby.

         

                     * * *

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                            -28-

                        

            

             

             

            

        

         

        
            

        

        IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Amendment as of the date first above written.

        LEE ENTERPRISES, INCORPORATED, as Borrower

         

        
            	
                         

                    	
                        By:/s/ Carl G. Schmidt

                    

        

        Title: Vice President, Chief Financial Officer

        
            	
                         

                    	
                        & Treasurer

                    

        

         

         

        DEUTSCHE BANK TRUST COMPANY AMERICAS,

        Individually and as Administrative Agent

         

        
            	
                         

                    	
                        By:/s/ Susan LeFevre

                    

        

        Title: Director

         

        
            	
                         

                    	
                        By:/s/ Evelyn Thierry

                    

        

        Title: Vice President

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        Each of the undersigned, each being a Subsidiary Guarantor under, and as defined in, the Credit Agreement referenced in the foregoing Amendment, hereby consents to the entering into of the Amendment and agrees to the provisions thereof (including, without limitation, Part II, Section 7 thereof).

        
            	
                         

                    	
                        ACCUDATA, INC.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        INN PARTNERS, L.C.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        JOURNAL – STAR PRINTING CO.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        K. FALLS BASIN PUBLISHING, INC.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        LEE CONSOLIDATED HOLDINGS CO.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        LEE PUBLICATIONS, INC.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        LEE PROCUREMENT SOLUTIONS CO.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

         

        
            	
                         

                    	
                        LINT CO.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        SIOUX CITY NEWSPAPERS, INC.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    
	
                         

                    	
                        TARGET MARKETING SYSTEMS, INC.,

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        SIGNATURE PAGE TO THE SECOND AMENDMENT TO THE CREDIT AGREEMENT, DATED AS OF THE DATE FIRST REFERENCED ABOVE, AMONG LEE ENTERPRISES, INCORPORATED, VARIOUS LENDERS AND DEUTSCHE BANK TRUST COMPANY AMERICAS, AS ADMINISTRATIVE AGENT

         

        SUNTRUST

         

        
            	
                         

                    	
                        By: /s/ Amanda K. Parks

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        JPMORGAN CHASE BANK, NA

         

        
            	
                         

                    	
                        By: /s/ Phillip D. Martin

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        THE BANK OF TOKYO-MITSUBISHI UFJ,

        LTD, NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ Phillip D. Martin

                    

        

        
            	
                         

                    	
                        Title: Authorized Signatory

                    

        

         

        U.S. BANK NATIONAL ASSOCIATION

         

        
            	
                         

                    	
                        By: /s/ Michael J. Homeyer

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        THE BANK OF NOVA SCOTIA

         

        
            	
                         

                    	
                        By: /s/ Brenda S. Insull

                    

        

        
            	
                         

                    	
                        Title: Authorized Signatory

                    

        

         

        SCOTIABANC INC.

         

        
            	
                         

                    	
                        By: /s/ J.F. Todd

                    

        

        
            	
                         

                    	
                        Title: Managing Director

                    

        

         

         

        SUMITOMO MITSUI BANKING CORPORATION

         

        
            	
                         

                    	
                        By: /s/ J.F. Todd

                    

        

        
            	
                         

                    	
                        Title: General Manager

                    

        

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

         

        COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK

        B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ Eric Hurshman

                    

        

        
            	
                         

                    	
                        Title: Managing Director

                    

        

         

        
            	
                         

                    	
                        By: /s/ Brett Delfino

                    

        

        
            	
                         

                    	
                        Title: Executive Director

                    

        

         

        UNITED OVERSEAS BANK LIMITED,

        NEW YORK AGENCY

         

        
            	
                         

                    	
                        By: /s/ George Lim

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President & General Manager

                    

        

         

        
            	
                         

                    	
                        By: /s/ Mario Sheng

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        UNION BANK OF CALIFORNIA, N.A.

         

        
            	
                         

                    	
                        By: /s/ David Hill

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        ASSOCIATED BANK, N.A.

         

        
            	
                         

                    	
                        By: /s/ Mark Weitfkamp

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

        COMERICA BANK

         

        
            	
                         

                    	
                        By: /s/ Sarah R. West

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

        THE NORTHERN TRUST COMPANY

         

        
            	
                         

                    	
                        By: /s/ Mark Taylor

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        BANK OF THE WEST, A CALIFORNIA

        BANKING CORPORATION

         

        
            	
                         

                    	
                        By: /s/ Joshua R. Pirozzolo

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

         

        NATIONAL CITY BANK

         

        
            	
                         

                    	
                        By: /s/ Derek Cook

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        WEBSTER BANK, NATIONAL ASSOCIATION

         

        
            	
                         

                    	
                        By: /s/ John Gilsenan

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

        ERSTE GROUP BANK AG

         

        
            	
                         

                    	
                        By: /s/ John Gilsenan

                    

        

        
            	
                         

                    	
                        Title: Director

                    

        

         

        
            	
                         

                    	
                        By: /s/ Bryan Lynch

                    

        

        
            	
                         

                    	
                        Title: Executive Director

                    

        

         

        HSH NORDBANK AG, NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ Mark Eisenmann

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        
            	
                         

                    	
                        By: /s/ Charles Lansdown

                    

        

        
            	
                         

                    	
                        Title: Deputy General Manager

                    

        

         

         

        QUAD CITY BANK AND TRUST COMPANY

         

        
            	
                         

                    	
                        By: /s/ Rebecca Skafidas

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        BANK OF COMMUNICATIONS CO., LTD.,

        NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ Shelley He

                    

        

        
            	
                         

                    	
                        Title: Deputy General Manager

                    

        

         

         

        MEGA INTERNATIONAL COMMERCIAL BANK

        CO., LTD., NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ Tsang – Pei Hsu

                    

        

        
            	
                         

                    	
                        Title: Vice President & Deputy General Manager

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

         

        AIB DEBT MANAGEMENT, LIMITED

         

        
            	
                         

                    	
                        By: /s/ Edwin Holmes

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        
            	
                         

                    	
                        By: /s/ Joseph Augustini

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

        ALLIED IRISH BANKS, P.L.C.

         

        
            	
                         

                    	
                        By: /s/ Edwin Holmes

                    

        

        
            	
                         

                    	
                        Title: Assistant Vice President

                    

        

         

        
            	
                         

                    	
                        By: /s/ Joseph Augustini

                    

        

        
            	
                         

                    	
                        Title: Senior Vice President

                    

        

         

         

        THE BANK OF NEW YORK MELLON

         

        
            	
                         

                    	
                        By: /s/ Lily A. Dastur

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

        FORTIS CAPITAL CORP.

         

        
            	
                         

                    	
                        By: /s/ John W. Deegan

                    

        

        
            	
                         

                    	
                        Title: Director

                    

        

         

        
            	
                         

                    	
                        By: /s/ Rachel Lanava

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

         

        WACHOVIA BANK, N.A.

         

        
            	
                         

                    	
                        By: /s/ Joe Mynatt

                    

        

        
            	
                         

                    	
                        Title: Director

                    

        

         

         

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        WELLS FARGO BANK, NATIONAL ASSOCIATION

         

        
            	
                         

                    	
                        By: /s/ Vipa chiraprut

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

         

        WESTLB AG, NEW YORK BRANCH

         

        
            	
                         

                    	
                        By: /s/ E. Keith Min

                    

        

        
            	
                         

                    	
                        Title: Executive Director

                    

        

         

         

        
            	
                         

                    	
                        By: /s/Petra Beckert

                    

        

        
            	
                         

                    	
                        Title: Executive Director

                    

        

         

         

        CITIBANK N.A.

         

        
            	
                         

                    	
                        By: /s/ Laura Neenan

                    

        

        
            	
                         

                    	
                        Title: Vice President

                    

        

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        SCHEDULE X

         

        PART A

         

        MORTGAGED PROPERTIES

         

        
            	
                        CREDIT PARTY

                    	
                        ADDRESS/LOCATION

                    
	
                        Journal Star Printing Company

                    	
                        900 Q Street, Lincoln, NE 68508

                    
	
                        Lee Publications, Inc.

                    	
                        601 W. 45th Avenue, Munster, IN 46321

                    
	
                        Lee Publications, Inc.

                    	
                        601 W. 45th Avenue, Munster, IN 46321

                    
	
                        Lee Publications, Inc.

                    	
                        207 E. Pennsylvania Ave, Escondido, CA 92025

                    
	
                        Lee Enterprises, Incorporated

                    	
                        401 N. Broadway, Billings, MT 59101

                    
	
                        Lee Enterprises, Incorporated

                    	
                        500 East Third Street, Davenport, IA 52801

                    
	
                        Lee Publications, Inc.

                    	
                        207 E. Pennsylvania Ave, Escondido, CA 92025

                    
	
                        Lee Enterprises, Incorporated

                    	
                        212 4th Street, Racine, WI 53403

                    
	
                        Lee Enterprises, Incorporated

                    	
                        2222 Washington, Helena, MT 59601

                    
	
                        Lee Publications, Inc.

                    	
                        1722 S. Coast Highway, Oceanside, CA 92054

                    
	
                        Lee Publications, Inc.

                    	
                        170 Star Lane, Casper, WY 82604

                    
	
                        Lee Publications, Inc.

                    	
                        770 11th Avenue, Longview, WA 98632

                    
	
                        Lee Enterprises, Incorporated

                    	
                        710 North Illinois Ave, Carbondale, IL 62901

                    
	
                        Lee Publications, Inc.

                    	
                        1722 S. Coast Highway, Oceanside, CA 92054

                    
	
                        Lee Enterprises, Incorporated

                    	
                        710 North Illinois Ave, Carbondale, IL 62901

                    
	
                        Lee Publications, Inc.

                    	
                        120 Limestone Street, Maysville, KY 41056

                    
	
                        Sioux City Newspapers Inc

                    	
                        515 Pavonia Street, Sioux City, IA 51101

                    

        

         

         

        PART B

         

        PROPERTIES HELD FOR SALE

         

        
            	
                        CREDIT PARTY

                    	
                        ADDRESS/LOCATION

                    
	
                        Lee Enterprises, Incorporated

                    	
                        Polson, MT

                    

        

         

         

        
            

             

            
                	
                            NEWYORK 6921976 (2K)Exhibit 10.3 - Security Agreement

        

        
            
            

        

        SECURITY AGREEMENT

        among

        LEE ENTERPRISES, INCORPORATED,

        CERTAIN SUBSIDIARIES OF LEE ENTERPRISES, INCORPORATED

         

        and

        DEUTSCHE BANK TRUST COMPANY AMERICAS,

        as COLLATERAL AGENT

        ________________________________

        Dated as of November 21, 2008

        ________________________________

         

        
            

            

            

            

            

             

            
                
                

            

            

            

            

            

            
                	
                            NEWYORK 6868044 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        TABLE OF CONTENTS

        
            	
                         

                    	
                        Page

                    

        

         

        
            	
                        ARTICLE I SECURITY INTERESTS

                    	
                        2

                    

        

        
            	
                         

                    	
                        1.1 Grant of Security Interests

                    	
                        2

                    

        

        
            	
                         

                    	
                        1.2 Power of Attorney

                    	
                        5

                    

        

        
            	
                        ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.1 Necessary Filings

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.2 No Liens

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.3 Other Financing Statements

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.4 Chief Executive Office, Record Locations

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.5 [RESERVED]

                    	
                        6

                    

        

        
            	
                         

                    	
                        2.6 Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Federal Employer Identification Number; Changes Thereto; etc.

                    	
                        7

                    

        

        
            	
                         

                    	
                        2.7 [RESERVED].

                    	
                        7

                    

        

        
            	
                         

                    	
                        2.8 Certain Significant Transactions.

                    	
                        7

                    

        

        
            	
                         

                    	
                        2.9 Non-UCC Property

                    	
                        8

                    

        

        
            	
                         

                    	
                        2.10 As-Extracted Collateral; Timber-to-be-Cut

                    	
                        8

                    

        

        
            	
                         

                    	
                        2.11 Collateral in the Possession of a Bailee

                    	
                        8

                    

        

        
            	
                         

                    	
                        2.12 Recourse

                    	
                        8

                    

        

        
            	
                         

                    	
                        2.13 Certain Representations and Warranties Regarding Certain Collateral

                    	
                        8

                    

        

        
            	
                        ARTICLE III SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

                    	
                        9

                    

        

        
            	
                         

                    	
                        3.1 Additional Representations and Warranties

                    	
                        9

                    

        

        
            	
                         

                    	
                        3.2 Maintenance of Records

                    	
                        9

                    

        

        
            	
                         

                    	
                        3.3 Direction to Account Debtors; Contracting Parties; etc.

                    	
                        10

                    

        

        
            	
                         

                    	
                        3.4 Modification of Terms; etc.

                    	
                        10

                    

        

        
            	
                         

                    	
                        3.5 Collection

                    	
                        10

                    

        

        
            	
                         

                    	
                        3.6 Instruments

                    	
                        11

                    

        

        
            	
                         

                    	
                        3.7 Assignors Remain Liable Under Accounts

                    	
                        11

                    

        

        
            	
                         

                    	
                        3.8 Assignors Remain Liable Under Contracts

                    	
                        11

                    

        

        
            	
                         

                    	
                        3.9 Deposit Accounts; Etc.

                    	
                        11

                    

        

        
            	
                         

                    	
                        3.10 Letter-of-Credit Rights

                    	
                        12

                    

        

        
            	
                         

                    	
                        3.11 Commercial Tort Claims

                    	
                        13

                    

        

        
            	
                         

                    	
                        3.12 Chattel Paper

                    	
                        13

                    

        

        
            	
                         

                    	
                        3.13 Further Actions

                    	
                        13

                    

        

         

        
            

             

            

            	
                        NEWYORK 6868044 (2K)

                    	
                        (i)

                    	
                         

                    

            

            

             

            

        

         

        
            

        

        
            	
                        ARTICLE IV SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

                    	
                        13

                    

        

        
            	
                         

                    	
                        4.1 Additional Representations and Warranties

                    	
                        13

                    

        

        
            	
                         

                    	
                        4.2 Licenses and Assignments

                    	
                        14

                    

        

        
            	
                         

                    	
                        4.3 Infringements

                    	
                        14

                    

        

        
            	
                         

                    	
                        4.4 Preservation of Marks

                    	
                        14

                    

        

        
            	
                         

                    	
                        4.5 Maintenance of Registration

                    	
                        14

                    

        

        
            	
                         

                    	
                        4.6 Future Registered Marks and Domain Names

                    	
                        14

                    

        

        
            	
                         

                    	
                        4.7 Remedies

                    	
                        15

                    

        

        
            	
                        ARTICLE V SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

                    	
                        15

                    

        

        
            	
                         

                    	
                        5.1 Additional Representations and Warranties

                    	
                        15

                    

        

        
            	
                         

                    	
                        5.2 Licenses and Assignments

                    	
                        16

                    

        

        
            	
                         

                    	
                        5.3 Infringements

                    	
                        16

                    

        

        
            	
                         

                    	
                        5.4 Maintenance of Patents or Copyrights

                    	
                        16

                    

        

        
            	
                         

                    	
                        5.5 Prosecution of Patent or Copyright Applications

                    	
                        16

                    

        

        
            	
                         

                    	
                        5.6 Other Patents and Copyrights

                    	
                        16

                    

        

        
            	
                         

                    	
                        5.7 Remedies

                    	
                        16

                    

        

        
            	
                        ARTICLE VI PROVISIONS CONCERNING ALL COLLATERAL

                    	
                        17

                    

        

        
            	
                         

                    	
                        6.1 Protection of Collateral Agent’s Security

                    	
                        17

                    

        

        
            	
                         

                    	
                        6.2 Warehouse Receipts Non-Negotiable

                    	
                        17

                    

        

        
            	
                         

                    	
                        6.3 Additional Information.

                    	
                        17

                    

        

        
            	
                         

                    	
                        6.4 Further Actions

                    	
                        17

                    

        

        
            	
                         

                    	
                        6.5 Financing Statements

                    	
                        18

                    

        

        
            	
                        ARTICLE VII REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

                    	
                        18

                    

        

        
            	
                         

                    	
                        7.1 Remedies; Obtaining the Collateral Upon Default

                    	
                        18

                    

        

        
            	
                         

                    	
                        7.2 Remedies; Disposition of the Collateral

                    	
                        20

                    

        

        
            	
                         

                    	
                        7.3 Waiver of Claims

                    	
                        20

                    

        

        
            	
                         

                    	
                        7.4 Application of Proceeds

                    	
                        21

                    

        

        
            	
                         

                    	
                        7.5 Remedies Cumulative

                    	
                        23

                    

        

        
            	
                         

                    	
                        7.6 Discontinuance of Proceedings

                    	
                        24

                    

        

        
            	
                        ARTICLE VIII INDEMNITY

                    	
                        24

                    

        

        
            	
                         

                    	
                        8.1 Indemnity

                    	
                        24

                    

        

        
            	
                         

                    	
                        8.2 Indemnity Obligations Secured by Collateral; Survival

                    	
                        25

                    

        

        
            	
                        ARTICLE IX DEFINITIONS

                    	
                        25

                    

        

        
            	
                        ARTICLE X MISCELLANEOUS

                    	
                        33

                    

        

        
            	
                         

                    	
                        10.1 Notices

                    	
                        33

                    

        

        
            	
                         

                    	
                        10.2 Waiver; Amendment

                    	
                        34

                    

        

        
            	
                         

                    	
                        10.3 Obligations Absolute

                    	
                        34

                    

        

         

        
             

            

            	
                        NEWYORK 6868044 (2K)

                    	
                        (ii)

                    	
                         

                    

            

            

            

        

         

        
            

        

        
            	
                         

                    	
                        10.4 Successors and Assigns

                    	
                        34

                    

        

        
            	
                         

                    	
                        10.5 Headings Descriptive

                    	
                        35

                    

        

        
            	
                         

                    	
                        10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.

                    	
                        35

                    

        

        
            	
                         

                    	
                        10.7 Assignor’s Duties

                    	
                        36

                    

        

        
            	
                         

                    	
                        10.8 Termination; Release

                    	
                        36

                    

        

        
            	
                         

                    	
                        10.9 Counterparts

                    	
                        37

                    

        

        
            	
                         

                    	
                        10.10 Severability

                    	
                        37

                    

        

        
            	
                         

                    	
                        10.11 The Collateral Agent and the other Secured Creditors

                    	
                        37

                    

        

        
            	
                         

                    	
                        10.12 Additional Assignors

                    	
                        38

                    

        

         

        
            	
                    	
                        ANNEX A

                    	
                        Schedule of Chief Executive Offices Address(es) of Chief Executive Office

                    

        

        
            	
                    	
                        ANNEX B

                    	
                        [Reserved]

                    

        

        
            	
                    	
                        ANNEX C

                    	
                        Schedule of Legal Names, Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility), Jurisdiction of Organization, Location, Organizational Identification Numbers and Federal Employer Identification Numbers

                    

        

        
            	
                    	
                        ANNEX D

                    	
                        [Reserved]

                    

        

        
            	
                    	
                        ANNEX E

                    	
                        Description of Certain Significant Transactions Occurring Within One Year Prior to the Date of the Security Agreement

                    

        

        
            	
                    	
                        ANNEX F

                    	
                        Schedule of Deposit Accounts

                    

        

        
            	
                    	
                        ANNEX G

                    	
                        Form of Control Agreement Regarding Deposit Accounts

                    

        

        
            	
                    	
                        ANNEX H

                    	
                        Schedule of Commercial Tort Claims

                    

        

        
            	
                    	
                        ANNEX I

                    	
                        Schedule of Marks and Applications; Internet Domain Name Registrations

                    

        

        
            	
                    	
                        ANNEX J

                    	
                        Schedule of Patents

                    

        

        
            	
                    	
                        ANNEX K

                    	
                        Schedule of Copyrights

                    

        

        
            	
                    	
                        ANNEX L

                    	
                        Grant of Security Interest in United States Trademarks

                    

        

        
            	
                    	
                        ANNEX M

                    	
                        Grant of Security Interest in United States Patents

                    

        

        
            	
                    	
                        ANNEX N

                    	
                        Grant of Security Interest in United States Copyrights

                    

        

        
            	
                    	
                        ANNEX O

                    	
                        Schedule of Stock

                    

        

        
            	
                    	
                        ANNEX P

                    	
                        Schedule of Notes

                    

        

        
            	
                    	
                        ANNEX Q

                    	
                        Schedule of Limited Liability Company Interests

                    

        

        
            	
                    	
                        ANNEX R

                    	
                        Schedule of Partnership Interests

                    

        

        
            	
                    	
                        ANNEX S

                    	
                        Form of Agreement Regarding Uncertificated Securities, Limited Liability

                    
	
                    	
                    	Company Interests and Partnership Interests

        

         

         

        [Remainder of this page intentionally left blank]

         

        
            
                	
                            NEWYORK 6868044 (2K)

                        	
                            (iii)

                        	
                             

                        

            

             

             

            

        

         

         

        

         

        
            

        

        SECURITY AGREEMENT

        SECURITY AGREEMENT, dated as of November 21, 2008, made by each of the undersigned assignors (each, an “Assignor” and, together with any other entity that becomes an assignor hereunder pursuant to Section 10.12 hereof, the “Assignors”) in favor of Deutsche Bank
        Trust Company Americas, as Collateral Agent (together with any successor Collateral Agent, the “Collateral Agent”), for the benefit of the Secured Creditors (as defined below). Certain capitalized terms as used herein are defined in Article IX hereof. Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein defined.

        W I T N E S S E T H:

        WHEREAS, Lee Enterprises, Incorporated (the “Borrower”), the lenders from time to time party thereto (the “Lenders”), Deutsche Bank Securities Inc. and SunTrust Capital Markets, Inc., as Joint Lead Arrangers, Deutsche Bank Securities Inc., as Book Running
        Manager, SunTrust Bank, as Syndication Agent, Bank of America, N.A., The Bank of New York and The Bank of Tokyo-Mitsubishi, Ltd., Chicago Branch, as Co-Documentation Agents, and Deutsche Bank Trust Company Americas, as administrative agent (together with any successor administrative agent, the “Administrative Agent”), have entered into an Amended and Restated Credit Agreement, dated as of December 21, 2005 (as amended,
        modified, restated and/or supplemented from time to time, the “Credit Agreement”), providing for the making and continuation of Loans to, and the issuance and maintenance of, and participation in, Letters of Credit for the account of, the Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the Administrative Agent, the Collateral Agent and each other Agent are herein called the
        “Lender Creditors”);

        WHEREAS, the Borrower and/or one or more of its Qualified Wholly-Owned Domestic Subsidiaries have heretofore entered into, and/or may at any time and from time to time enter into, one or more Interest Rate Protection Agreements and/or Other Hedging Agreements with one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective Lender subsequently
        ceases to be a Lender under the Credit Agreement for any reason, together with such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other Creditors” and, together with the Lender Creditors, the “Secured Creditors”; and with each such Interest Rate Protection Agreement and/or Other Hedging Agreement with an Other Creditor
        being herein called a “Secured Hedging Agreement”);

        WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary Guarantor has jointly and severally guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described therein;

        WHEREAS, it is a condition precedent to the making and continuation of Loans to the Borrower and the issuance and maintenance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and to the Other Creditors entering into Secured Hedging Agreements that each Assignor shall have executed and delivered to the Collateral Agent this Agreement;
        and

         

        
            

             

            
                	
                            NEWYORK 6868044 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

        WHEREAS, each Assignor will obtain benefits from the incurrence and continuation of Loans by the Borrower and the issuance and maintenance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and the entering into and maintaining by the Borrower and/or one or more of its Qualified Wholly-Owned Domestic Subsidiaries of Secured Hedging
        Agreements and, accordingly, desires to execute this Agreement in order to satisfy the condition described in the preceding paragraph and to induce the Lenders to make and continue Loans to the Borrower and issue, maintain, and/or participate in, Letters of Credit for the account of the Borrower and the Other Creditors to maintain and/or enter into Secured Hedging Agreements with the Borrower and/or one or more of its Qualified Wholly-Owned Domestic Subsidiaries;

        NOW, THEREFORE, in consideration of the benefits accruing to each Assignor, the receipt and sufficiency of which are hereby acknowledged, each Assignor hereby makes the following representations and warranties to the Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the Collateral Agent for the benefit of the Secured Creditors as
        follows:

        ARTICLE I

         

        SECURITY INTERESTS

        1.1 Grant of Security Interests. (a) As security for the prompt and complete payment and performance when due of all of its Obligations, each Assignor does hereby assign and transfer unto the Collateral Agent, and does hereby pledge and grant to the Collateral Agent, for the benefit of the Secured Creditors, a continuing security interest in all of the right, title and interest
        of such Assignor in, to and under all of the following personal property and fixtures (and all rights therein) of such Assignor, or in which or to which such Assignor has any rights, in each case whether now existing or hereafter from time to time acquired:

        
            	
                         

                    	
                        (i)

                    	
                        each and every Account;

                         

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        all cash;

                         

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        the Cash Collateral Account and all monies, securities, Instruments and other investments deposited or required to be deposited in the Cash Collateral Account;

                         

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        all Chattel Paper (including, without limitation, all Tangible Chattel Paper and all Electronic Chattel Paper);

                         

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        all Commercial Tort Claims;

                         

                    

        

        
            	
                         

                    	
                        (vi)

                    	
                        all computer programs of such Assignor and all intellectual property rights therein and all other proprietary information of such Assignor, including but not limited to Domain Names and Trade Secret Rights;

                         

                    

        

        
            	
                         

                    	
                        (vii)

                    	
                        all Contracts, together with all Contract Rights arising thereunder;

                    

        

         

        
            

             

            
                	
                            NEWYORK 6868044 (2K)

                        	
                            -2-

                        	
                             

                        

            

             

             

            

        

         

        
            

        

        
            	
                         

                    	
                        (viii)

                    	
                        all Copyrights;

                    

        

        
            	
                         

                    	
                        (ix)

                    	
                        all Equipment;

                    

        

        
            	
                         

                    	
                        (x)

                    	
                        all Deposit Accounts and all other demand, deposit, time, savings, cash management, passbook and similar accounts maintained by such Assignor with any Person and all monies, securities, Instruments and other investments deposited or required to be deposited in any of the foregoing;

                         

                    

        

        
            	
                         

                    	
                        (xi)

                    	
                        all Documents;

                         

                    

        

        
            	
                         

                    	
                        (xii)

                    	
                        all General Intangibles;

                         

                    

        

        
            	
                         

                    	
                        (xiii)

                    	
                        all Goods;

                         

                    

        

        
            	
                         

                    	
                        (xiv)

                    	
                        all Instruments;

                         

                    

        

        
            	
                         

                    	
                        (xv)

                    	
                        all Inventory;

                         

                    

        

        
            	
                         

                    	
                        (xvi)

                    	
                        all Financial Assets;

                         

                    

        

        
            	
                         

                    	
                        (xvii)

                    	
                        all Joint Venture Investment Property;

                         

                    

        

        
            	
                         

                    	
                        (xviii)

                    	
                        all Letter-of-Credit Rights (whether or not the respective letter of credit is evidenced by a writing);

                         

                    

        

        
            	
                         

                    	
                        (xix)

                    	
                        all Marks, together with the registrations and right to all renewals thereof, the goodwill of the business of such Assignor symbolized by the Marks and all causes of action arising prior to or after the date hereof for infringement of any of the Marks or unfair competition regarding the same;

                    

        

        
            	
                         

                    	
                        (xx)

                    	
                        all Notes;

                    

        

        
            	
                         

                    	
                        (xxi)

                    	
                        all Patents, together with all causes of action arising prior to or after the date hereof for infringement of any of the Patents or unfair competition regarding the same;

                         

                    

        

        
            	
                         

                    	
                        (xxii)

                    	
                        all Permits;

                         

                    

        

        
            	
                         

                    	
                        (xxiii)

                    	
                        all Security Entitlements and other Investment Property (to the extent not already covered by another clause of this Section 1.1(a));

                         

                    

        

        
            	
                         

                    	
                        (xxiv)

                    	
                        all Software and all Software licensing rights, all writings, plans, specifications and schematics, all engineering drawings, customer lists, goodwill and licenses, and all recorded data of any kind or nature, regardless of the medium of recording;

                         

                    

        

        
            	
                         

                    	
                        (xxv)

                    	
                        all Supporting Obligations; and

                    

        

         

        
            

             

            
                	
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        (xxvi)  all Proceeds and products of any and all of the foregoing (all of the above, the “Collateral”).

         

        Notwithstanding the foregoing, the term “Collateral” shall not include any Excluded Property.

         

        (b)       The security interest of the Collateral Agent under this Agreement automatically (and without the taking of any action by any Assignor) extends to all Collateral which any Assignor may acquire, or with respect to which such Assignor may obtain rights, at any time during the term of this Agreement, and each Assignor shall (to the extent
        provided below) take the following actions as set forth below (as promptly as practicable and, in any event, within 10 days after it obtains such Collateral) for the benefit of the Collateral Agent and the other Secured Creditors:

        (i)      with respect to a Certificated Security (other than a Certificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Assignor shall physically deliver such Certificated Security to the Collateral Agent, endorsed to the Collateral Agent or endorsed in blank;

        (ii)       with respect to an Uncertificated Security (other than an Uncertificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Assignor shall cause the issuer of such Uncertificated Security to duly authorize, execute, and deliver to the Collateral Agent, an agreement for the benefit
        of the Collateral Agent and the other Secured Creditors substantially in the form of Annex S (appropriately completed to the satisfaction of the Collateral Agent and with such modifications, if any, as shall be satisfactory to the Collateral Agent) pursuant to which such issuer agrees to comply with any and all instructions originated by the Collateral Agent without further consent by the registered owner and not to comply with instructions regarding such Uncertificated Security (and
        any Partnership Interests and Limited Liability Company Interests issued by such issuer) originated by any other Person other than a court of competent jurisdiction;

        (iii)      with respect to a Certificated Security, Uncertificated Security, Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary (including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such Assignor shall promptly
        notify the Collateral Agent thereof and shall promptly take (x) all actions required (i) to comply with the applicable rules of such Clearing Corporation or Securities Intermediary and (ii) to perfect the security interest of the Collateral Agent under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the Collateral Agent deems necessary or desirable to effect the foregoing;

        (iv)      with respect to a Partnership Interest or a Limited Liability Company Interest (other than a Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), (1) if such Partnership Interest or Limited Liability Company Interest is represented by
        a

         

        
            

             

            
                	
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        certificate and is a Security for purposes of the UCC, the procedure set forth in Section 1.1(b)(i) hereof, and (2) if such Partnership Interest or Limited Liability Company Interest is not represented by a certificate or is not a Security for purposes of the UCC, the procedure set forth in Section 1.1(b)(ii) hereof;

        (v)       with respect to any Note, physical delivery of such Note to the Collateral Agent, endorsed in blank, or, at the request of the Collateral Agent, endorsed to the Collateral Agent; and

        (vi)      with respect to cash proceeds from any of the Collateral, at the reasonable request of the Collateral Agent or upon an occurrence of a Default or an Event of Default, (i) establishment by the Collateral Agent of a cash account in the name of such Assignor over which the Collateral Agent shall have “control” within
        the meaning of the UCC and at any time any Default or Event of Default is in existence no withdrawals or transfers may be made therefrom by any Person except with the prior written consent of the Collateral Agent and (ii) deposit of such cash in such cash account.

        (c)         In addition to the actions required to be taken pursuant to Section 1.1(b) hereof, each Assignor shall take the following additional actions with respect to the Collateral:

        (i)        with respect to all Collateral of such Assignor whereby or with respect to which the Collateral Agent may obtain “control” thereof within the meaning of Section 8-106 of the UCC (or under any provision of the UCC as same may be amended or supplemented from time to time, or under the laws of any relevant
        State other than the State of New York), such Assignor shall take all actions as may be requested from time to time by the Collateral Agent so that “control” of such Collateral is obtained and at all times held by the Collateral Agent; and

        (ii)       each Assignor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the various relevant States, covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Collateral Agent), to be filed in the
        relevant filing offices so that at all times the Collateral Agent’s security interest in all Investment Property and other Collateral which can be perfected by the filing of such financing statements (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant States, including, without limitation, Section 9-312(a) of the UCC) is so perfected.

        1.2 Power of Attorney. Each Assignor hereby constitutes and appoints the Collateral Agent its true and lawful attorney, irrevocably, with full power after the occurrence of and during the continuance of an Event of Default (in the name of such Assignor or otherwise) to act, require, demand, receive, compound and give acquittance for any and all moneys and claims for moneys due or
        to become due to such Assignor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Collateral Agent may deem to be necessary or advisable to protect the interests of the Secured Creditors, which appointment as attorney is coupled with an interest.

         

        
            

             

            
                	
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        ARTICLE II

         

        GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

        Each Assignor represents, warrants and covenants, which representations, warranties and covenants shall survive execution and delivery of this Agreement, as follows:

        2.1 Necessary Filings. All filings, registrations, recordings and other actions necessary or appropriate to create, preserve and perfect the security interest granted by such Assignor to the Collateral Agent hereby in respect of the Collateral have been accomplished and the security interest granted to the Collateral Agent pursuant to this Agreement in and to the Collateral
        creates a valid and, together with all such filings, registrations, recordings and other actions, a perfected security interest therein prior to the rights of all other Persons therein and subject to no other Liens (other than Permitted Liens) and is entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as enacted in any relevant jurisdiction to perfected security interests, in each case to the extent that the Collateral
        consists of the type of property in which a security interest may be perfected by possession or control (within the meaning of the UCC as in effect on the date hereof in the State of New York), by filing a financing statement under the Uniform Commercial Code as enacted in any relevant jurisdiction or by a filing of a Grant of Security Interest in the respective form attached hereto in the United States Patent and Trademark Office or in the United States Copyright Office.

        2.2 No Liens. Such Assignor is, and as to all Collateral acquired by it from time to time after the date hereof such Assignor will be, the owner of all Collateral free from any Lien or other right, title or interest of any Person (other than Permitted Liens), and such Assignor shall defend the Collateral against all claims and demands of all Persons at any time claiming the same
        or any interest therein adverse to the Collateral Agent.

        2.3 Other Financing Statements. As of the date hereof, there is no financing statement (or similar statement or instrument of registration under the law of any jurisdiction) covering or purporting to cover any interest of any kind in the Collateral (other than financing statements filed in respect of Permitted Liens), and so long as the Termination Date has not occurred, such
        Assignor will not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) or statements relating to the Collateral, except financing statements filed or to be filed in respect of and covering the security interests granted hereby by such Assignor or in connection with Permitted Liens.

        2.4 Chief Executive Office, Record Locations. The chief executive office of such Assignor is, on the date of this Agreement, located at the address indicated on Annex A hereto for such Assignor. During the period of the four calendar months preceding the date of this Agreement, the chief executive office of such Assignor has not been located at any address other than that
        indicated on Annex A in accordance with the immediately preceding sentence, in each case unless each such other address is also indicated on Annex A hereto for such Assignor.

        
            	
                         

                    	
                        2.5 [RESERVED].

                    

        

         

        
            

             

            
                	
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        2.6 Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Federal Employer Identification Number; Changes Thereto; etc. The exact legal name of each Assignor, the type of organization of such Assignor, whether or not such Assignor is a Registered
        Organization, the jurisdiction of organization of such Assignor, such Assignor’s Location, the organizational identification number (if any) of such Assignor, the Federal Employer Identification Number (if any); and whether or not such Assignor is a Transmitting Utility, is listed on Annex C hereto for such Assignor. Such Assignor shall not change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its
        status as a Transmitting Utility or as a Person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, its organizational identification number (if any), or its Federal Employer Identification Number (if any) from that used on Annex C hereto, except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Secured Debt Agreements and so long as same do not involve (x) a Registered
        Organization ceasing to constitute same or (y) such Assignor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Collateral Agent not less than 15 days’ prior written notice of each change to the information listed on Annex C (as adjusted for any subsequent changes thereto previously made in
        accordance with this sentence), together with a supplement to Annex C which shall correct all information contained therein for such Assignor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect. In addition, to the extent that such
        Assignor does not have an organizational identification number on the date hereof and later obtains one, such Assignor shall promptly thereafter notify the Collateral Agent of such organizational identification number and shall take all actions reasonably satisfactory to the Collateral Agent to the extent necessary to maintain the security interest of the Collateral Agent in the Collateral intended to be granted hereby fully perfected and in full force and effect.

        2.7 [RESERVED].

        2.8 Certain Significant Transactions. During the one year period preceding the date of this Agreement, no Person shall have merged or consolidated with or into any Assignor, and no Person shall have liquidated into, or transferred all or substantially all of its assets to, any Assignor, in each case except as described in Annex E hereto. With respect to any transactions so
        described in Annex E hereto, the respective Assignor shall have furnished such information with respect to the Person (and the assets of the Person and locations thereof) which merged with or into or consolidated with such Assignor, or was liquidated into or transferred all or substantially all of its assets to such Assignor, and shall have furnished to the Collateral Agent such UCC lien searches as may have been requested with respect to such Person and its assets, to establish that no
        security interest (excluding Permitted Liens) continues perfected on the date hereof with respect to any Person described above (or the assets transferred to the respective Assignor by such Person), including without limitation pursuant to Section 9-316(a)(3) of the UCC.

         

        
            

             

            
                	
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        2.9 Non-UCC Property. The aggregate fair market value (as determined by the Assignors in good faith) of all property of the Assignors of the types described in clauses (1), (2) and (3) of Section 9-311(a) of the UCC does not exceed $5,000,000. If the aggregate value of all such property at any time owned by all Assignors exceeds $5,000,000, the Assignors shall provide prompt
        written notice thereof to the Collateral Agent and, upon the request of the Collateral Agent, the Assignors shall promptly (and in any event within 30 days) take such actions (at their own cost and expense) as may be required under the respective United States, State or other laws referenced in Section 9-311(a) of the UCC to perfect the security interests granted herein in any Collateral where the filing of a financing statement does not perfect the security interest in such property in
        accordance with the provisions of Section 9-311(a) of the UCC.

        2.10 As-Extracted Collateral; Timber-to-be-Cut. On the date hereof, such Assignor does not own, or expect to acquire, any property which constitutes, or would constitute, As-Extracted Collateral or Timber-to-be-Cut. If at any time after the date of this Agreement such Assignor owns, acquires or obtains rights to any As-Extracted Collateral or Timber-to-be-Cut, such Assignor shall
        furnish the Collateral Agent with prompt written notice thereof (which notice shall describe in reasonable detail the As-Extracted Collateral and/or Timber-to-be-Cut and the locations thereof) and shall take all actions as may be deemed reasonably necessary or desirable by the Collateral Agent to perfect the security interest of the Collateral Agent therein.

        2.11 Collateral in the Possession of a Bailee. If any material amounts of Inventory or other Goods (as to the Assignors taken as a whole) are at any time in the possession of a bailee, such Assignor shall promptly notify the Collateral Agent thereof and, if requested by the Collateral Agent, shall use its reasonable best efforts to promptly obtain an acknowledgment from such
        bailee, in form and substance reasonably satisfactory to the Collateral Agent, that the bailee holds such Collateral for the benefit of the Collateral Agent and shall act upon the instructions of the Collateral Agent, without the further consent of such Assignor. The Collateral Agent agrees with such Assignor that the Collateral Agent shall not give any such instructions unless an Event of Default has occurred and is continuing or would occur after taking into account any action by the
        respective Assignor with respect to any such bailee.

        2.12 Recourse. This Agreement is made with full recourse to each Assignor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of such Assignor contained herein, in the Secured Debt Agreements and otherwise in writing in connection herewith or therewith.

        2.13 Certain Representations and Warranties Regarding Certain Collateral. Each Assignor represents and warrants that on the date hereof: (i)  the Stock (and any warrants or options to purchase Stock) held by such Assignor consists of the number and type of shares of the stock (or warrants or options to purchase any stock) of the corporations as described in Annex O hereto;
        (ii) such Stock referenced in clause (i) of this paragraph constitutes that percentage of the issued and outstanding capital stock of the issuing corporation as is set forth in Annex O hereto; (iii) the Notes held by such Assignor consist of the promissory notes described in Annex P hereto where such Assignor is listed as the Lender; (iv) the Limited Liability Company Interests held by such Assignor consist of the number and type of interests of the Persons described in Annex Q hereto;
        (v) each such Limited Liability Company Interest

         

        
            

             

            
                	
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        referenced in clause (iv) of this paragraph constitutes that percentage of the issued and outstanding equity interest of the issuing Person as set forth in Annex Q hereto; (vi) the Partnership Interests held by such Assignor consist of the number and type of interests of the Persons described in Annex R hereto; (vii) each such Partnership Interest referenced in clause (vi) of this paragraph constitutes
        that percentage or portion of the entire partnership interest of the Partnership as set forth in Annex R hereto; (viii) such Assignor has complied with the respective procedure set forth in Section 1.1(b) hereof with respect to each item of Collateral described in Annexes O through R hereto for such Assignor; and (ix) on the date hereof, such Assignor owns no other Stock, Limited Liability Company Interests or Partnership Interests.

        ARTICLE III

         

        SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

        3.1 Additional Representations and Warranties. As of the time when each of its Accounts arises, each Assignor shall be deemed to have represented and warranted that each such Account, and all records, papers and documents relating thereto (if any) are genuine and what they purport to be, and that all papers and documents (if any) relating thereto (i) will, to the knowledge of
        such Assignor, represent the genuine, legal, valid and binding obligation of the account debtor evidencing indebtedness unpaid and owed by the respective account debtor arising out of the performance of labor or services or the sale or lease and delivery of the merchandise listed therein, or both, (ii) will be the only original writings evidencing and embodying such obligation of the account debtor named therein (other than copies created for general accounting purposes), (iii) will, to
        the knowledge of such Assignor, evidence true and valid obligations, enforceable in accordance with their respective terms, and (iv) will be in compliance and will conform in all material respects with all applicable federal, state and local laws and applicable laws of any relevant foreign jurisdiction.

        3.2 Maintenance of Records. Each Assignor will keep and maintain at its own cost and expense accurate records of its Accounts and Contracts pursuant to its historical customs and practices, including, but not limited to, originals of all documentation (including each Contract) with respect thereto, records of all payments received, all credits granted thereon, all merchandise
        returned and all other dealings therewith, and such Assignor will make the same available on any premise of any Assignor to the Collateral Agent for inspection, at such Assignor’s own cost and expense, at any and all reasonable times upon prior notice to such Assignor and otherwise in accordance with the Credit Agreement. Upon the occurrence and during the continuance of an Event of Default and at the request of the Collateral Agent, such Assignor shall, at its own cost and
        expense, deliver all tangible evidence of its Accounts and Contract Rights (including, without limitation, all documents evidencing the Accounts and all Contracts) and such books and records to the Collateral Agent or to its representatives (copies of which evidence and books and records may be retained by such Assignor). Upon the occurrence and during the continuance of an Event of Default and if the Collateral Agent so directs, such Assignor shall legend, in form and manner
        satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as books, records and documents (if any) of such Assignor evidencing or pertaining to such Accounts and Contracts with an appropriate reference to the fact that such

         

        
            

             

            
                	
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        Accounts and Contracts have been assigned to the Collateral Agent and that the Collateral Agent has a security interest therein.

        3.3 Direction to Account Debtors; Contracting Parties; etc. Upon the occurrence and during the continuance of an Event of Default, if the Collateral Agent so directs any Assignor, such Assignor agrees (x) to cause all payments on account of the Accounts and Contracts to be made directly to the Cash Collateral Account, (y) that the Collateral Agent may, at its option, directly
        notify the obligors with respect to any Accounts and/or under any Contracts to make payments with respect thereto as provided in the preceding clause (x), and (z) that the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the amount of payment thereof, in the same manner and to the same extent as such Assignor. Without notice to or assent by any Assignor, the Collateral Agent may, upon the occurrence and during the
        continuance of an Event of Default, apply any or all amounts then in, or thereafter deposited in, the Cash Collateral Account toward the payment of the Obligations in the manner provided in Section 7.4 of this Agreement. The reasonable costs and expenses of collection (including reasonable attorneys’ fees), whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor. The Collateral Agent shall deliver a copy of each notice referred to in the
        preceding clause (y) to the relevant Assignor, provided that (x) the failure by the Collateral Agent to so notify such Assignor shall not affect the effectiveness of such notice or the other rights of the Collateral Agent created by this Section 3.3 and (y) no such notice shall be required if an Event of Default of the type described in Section 11.05 of the Credit Agreement has occurred and is continuing.

        3.4 Modification of Terms; etc. Except in accordance with such Assignor’s ordinary course of business and consistent with reasonable business judgment or as permitted by Section 3.5, no Assignor shall rescind or cancel any indebtedness evidenced by any Account or under any Contract, or modify any material term thereof or make any material adjustment with respect thereto, or
        extend or renew the same, or compromise or settle any material dispute, claim, suit or legal proceeding relating thereto, or sell any Account or Contract, or interest therein, without the prior written consent of the Collateral Agent.

        3.5 Collection. Each Assignor shall endeavor in accordance with reasonable business practices to cause to be collected from the account debtor named in each of its Accounts or obligor under any Contract, as and when due (including, without limitation, amounts which are delinquent, such amounts to be collected in accordance with generally accepted lawful collection procedures) any
        and all amounts owing under or on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts as are so collected to the outstanding balance of such Account or under such Contract. Except as otherwise directed by the Collateral Agent after the occurrence and during the continuation of an Event of Default, any Assignor may allow in the ordinary course of business as adjustments to amounts owing under its Accounts and Contracts (i) an extension
        or renewal of the time or times of payment, or settlement for less than the total unpaid balance, which such Assignor finds appropriate in accordance with reasonable business judgment and (ii) a refund or credit due as a result of returned or damaged merchandise or improperly performed services or for other reasons which such Assignor finds appropriate in accordance with reasonable business judgment. The reasonable costs and expenses (including, without limitation, reasonable
        attorneys’ fees) of

         

        
            

             

            
                	
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        collection, whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.

        3.6 Instruments. If any Assignor owns or acquires any Instrument in excess of $500,000 constituting Collateral (other than (x) checks and other payment instruments received and collected in the ordinary course of business and (y) any Intercompany Note, such Assignor will within 10 Business Days notify the Collateral Agent thereof, and upon request by the Collateral Agent will
        promptly deliver such Instrument to the Collateral Agent appropriately endorsed to the order of the Collateral Agent.

        3.7 Assignors Remain Liable Under Accounts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Accounts to observe and perform all of the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to such Accounts. Neither the Collateral Agent nor any
        other Secured Creditor shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Account pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Account (or any agreement giving rise
        thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by them or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.

        3.8 Assignors Remain Liable Under Contracts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Contracts to observe and perform all of the conditions and obligations to be observed and performed by them thereunder, all in accordance with and pursuant to the terms and provisions of each Contract. Neither the Collateral Agent nor
        any other Secured Creditor shall have any obligation or liability under any Contract by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Contract pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Contract, to make any payment, to make any inquiry as to the nature or
        the sufficiency of any performance by any party under any Contract, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.

        3.9 Deposit Accounts; Etc. (a) No Assignor maintains, or at any time after the date of this Agreement shall establish or maintain, any demand, time, savings, passbook or similar account, except for such accounts maintained with a bank (as defined in Section 9-102 of the UCC) whose jurisdiction (determined in accordance with Section 9-304 of the UCC) is within a State of the
        United States. Annex F hereto accurately sets forth, as of the date of this Agreement, for each Assignor, each Deposit Account maintained by such Assignor (including a description thereof and the respective account number), the name of the respective bank with

         

        
            

             

            
                	
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        which such Deposit Account is maintained, and the jurisdiction of the respective bank with respect to such Deposit Account. For each Deposit Account (other than (i) the Cash Collateral Account or any other Deposit Account maintained with the Collateral Agent and (ii) any Excluded Account), the respective Assignor shall cause the bank with which the Deposit Account is maintained to execute and deliver to
        the Collateral Agent, within 45 days after the date of this Agreement (or such later date as may be reasonably acceptable to the Collateral Agent in its sole discretion) or, if later, at the time of the establishment of the respective Deposit Account, a “control agreement” in the form of Annex G hereto (appropriately completed), with such changes thereto or in such other form (in either case) as may be acceptable to the Collateral Agent. If any bank with which a Deposit
        Account is maintained refuses to, or does not, enter into such a “control agreement”, then the respective Assignor shall promptly (and in any event within 45 days after the date of this Agreement (or such other date as may be reasonably acceptable to the Collateral Agent in its sole discretion) or, if later, 45 days after the establishment of such account (or such later date as may be reasonably acceptable to the Collateral Agent in its sole discretion)) close the respective
        Deposit Account and transfer all balances therein to the Cash Collateral Account or another Deposit Account meeting the requirements of this Section 3.9. If any bank with which a Deposit Account is maintained refuses to subordinate all its claims with respect to such Deposit Account to the Collateral Agent’s security interest therein on terms satisfactory to the Collateral Agent, then the Collateral Agent, at its option, may (x) require that such Deposit Account be terminated in
        accordance with the immediately preceding sentence or (y) agree to a “control agreement” without such subordination, provided that in such event the Collateral Agent may at any time, at its option, subsequently require that such Deposit Account be terminated (within 45 days after notice from the Collateral Agent) in accordance with the requirements of the immediately preceding sentence. The Collateral Agent agrees that it will only give a “Notice of Exclusive
        Control” under a “control agreement” following the occurrence of an Event of Default.

        (b)       After the date of this Agreement, no Assignor shall establish any new demand, time, savings, passbook or similar account, except for (i) Deposit Accounts established and maintained with banks and meeting the requirements of preceding clause (a) and (ii) Excluded Accounts. At the time any such Deposit Account (other than an Excluded Account)
        is established, the appropriate “control agreement” shall be entered into in accordance with the requirements of preceding clause (a) and the respective Assignor shall furnish to the Collateral Agent a supplement to Annex F hereto containing the relevant information with respect to the respective Deposit Account and the bank with which same is established.

        3.10 Letter-of-Credit Rights. If any Assignor is at any time a beneficiary under a letter of credit with a stated amount of $500,000 or more, such Assignor shall promptly notify the Collateral Agent thereof and, at the request of the Collateral Agent, such Assignor shall, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, use its
        reasonable best efforts to (i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral Agent of the proceeds of any drawing under such letter of credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of such letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be applied as provided in this Agreement after the
        occurrence and during the continuance of an Event of Default.

         

        
            

             

            
                	
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        3.11 Commercial Tort Claims. All Commercial Tort Claims of each Assignor in existence on the date of this Agreement in an amount (taking the greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $500,000 or more are described in Annex H hereto. If any Assignor shall at any time after the date of this Agreement acquire a Commercial
        Tort Claim in an amount (taking the greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $500,000 or more, such Assignor shall promptly notify the Collateral Agent thereof in a writing signed by such Assignor and describing the details thereof and shall grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance
        reasonably satisfactory to the Collateral Agent.

        3.12 Chattel Paper. Upon the request of the Collateral Agent made at any time or from time to time, each Assignor shall promptly furnish to the Collateral Agent a list of all Electronic Chattel Paper held or owned by such Assignor. Furthermore, if requested by the Collateral Agent, each Assignor shall promptly take all actions which are reasonably practicable so that the
        Collateral Agent has “control” of all Electronic Chattel Paper in accordance with the requirements of Section 9-105 of the UCC. Each Assignor will promptly (and in any event within 10 days) following any request by the Collateral Agent, deliver all of its Tangible Chattel Paper to the Collateral Agent. At all times, each Assignor will mark Tangible Chattel Paper with a legend provided by the Collateral Agent indicating the security interest herein.

        3.13 Further Actions. Each Assignor will, at its own expense, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and take such further steps, including
        any and all actions as may be necessary or required under the Federal Assignment of Claims Act, relating to its Accounts, Contracts, Instruments and other property or rights covered by the security interest hereby granted, as the Collateral Agent may reasonably require.

        ARTICLE IV

         

        SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

        4.1 Additional Representations and Warranties. Each Assignor represents and warrants that it is the true and lawful owner of or otherwise has the right to use the registered Marks and Domain Names listed in Annex I hereto for such Assignor and that said listed Marks and Domain Names include all United States marks and applications for United States marks registered in the
        United States Patent and Trademark Office and all Domain Names that such Assignor owns or, except as set forth on Annex I, uses in connection with its business as of the date hereof. Each Assignor represents and warrants that it owns, is licensed to use or otherwise has the right to use, all material Marks and material Domain Names that it uses. Each Assignor further warrants that it has no knowledge of any third party claim received by it that any aspect of such Assignor’s
        present or contemplated business operations infringes or will infringe any trademark, service mark or trade name of any other Person other than as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each Assignor represents and warrants that it is the true and lawful owner of or otherwise has the right

         

        
            

             

            
                	
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        to use all U.S. trademark registrations and Domain Name registrations listed in Annex I hereto for such Assignor and that, to each Assignor’s knowledge, said registrations are valid, subsisting, have not been canceled and that such Assignor is not aware of any third-party claim that any of said registrations is invalid or unenforceable, and is not aware that there is any reason that any of said
        applications for United States Marks will not mature into registrations, except to the extent the same, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Each Assignor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the continuance of an Event of Default, any document which may be required by the United States Patent and Trademark Office or similar registrar in order to
        effect an absolute assignment of all right, title and interest in each Mark and/or Domain Name, and record the same.

        4.2 Licenses and Assignments. Except as otherwise permitted by the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any right under any material Mark or Domain Name absent prior written approval of the Collateral Agent.

        4.3 Infringements. Each Assignor agrees, promptly upon learning thereof, to notify the Collateral Agent in writing of the name and address of, and to furnish such pertinent information that may be available with respect to, any party who such Assignor believes is, or may be, infringing or diluting or otherwise violating any of such Assignor’s rights in and to any Mark or
        Domain Name in any manner that could reasonably be expected to have a Material Adverse Effect, or with respect to any party claiming that such Assignor’s use of any Mark or Domain Name material to such Assignor’s business violates in any material respect any property right of that party. Each Assignor further agrees to prosecute diligently in accordance with reasonable business practices any Person infringing any Mark or Domain Name in any manner that could reasonably be
        expected to have a Material Adverse Effect.

        4.4 Preservation of Marks. Each Assignor agrees to take all such actions as are reasonably necessary to preserve its Marks as trademarks or service marks under the laws of the United States (other than any such Marks which are no longer used or useful in its business or operations).

        4.5 Maintenance of Registration. Each Assignor shall, at its own expense, diligently process all documents reasonably required to maintain all Mark and/or Domain Name registrations, including but not limited to affidavits of use and applications for renewals of registration in the United States Patent and Trademark Office for all of its material registered Marks, and shall pay
        all fees and disbursements in connection therewith and shall not abandon any such filing of affidavit of use or any such application of renewal prior to the exhaustion of all administrative and judicial remedies without prior written consent of the Collateral Agent (other than with respect to registrations and applications deemed by such Assignor in its reasonable business judgment to be no longer prudent to pursue).

        4.6 Future Registered Marks and Domain Names. If any Mark registration is issued hereafter to any Assignor as a result of any application now or hereafter pending before the United States Patent and Trademark Office or any Domain Name is registered by Assignor, within 30 days of receipt of such certificate or similar indicia of ownership, such Assignor shall deliver to the
        Collateral Agent a copy of such registration certificate or similar indicia of

         

        
            

             

            
                	
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        ownership, and a grant of a security interest in such Mark and/or Domain Name, to the Collateral Agent and at the expense of such Assignor, confirming the grant of a security interest in such Mark and/or Domain Name to the Collateral Agent hereunder, the form of such security to be substantially in the form of Annex L hereto or in such other form as may be reasonably satisfactory to the Collateral
        Agent.

        4.7 Remedies. If an Event of Default shall occur and be continuing, the Collateral Agent may, by written notice to the relevant Assignor, take any or all of the following actions: (i) declare the entire right, title and interest of such Assignor in and to each of the Marks and Domain Names, together with all trademark rights and rights of protection to the same, vested in the
        Collateral Agent for the benefit of the Secured Creditors, in which event such rights, title and interest shall immediately vest, in the Collateral Agent for the benefit of the Secured Creditors, and the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 4.1 hereof to execute, cause to be acknowledged and notarized and record said absolute assignment with the applicable agency or registrar; (ii) take and use or sell the Marks or Domain Names and
        the goodwill of such Assignor’s business symbolized by the Marks or Domain Names and the right to carry on the business and use the assets of such Assignor in connection with which the Marks or Domain Names have been used; and (iii) direct such Assignor to refrain, in which event such Assignor shall refrain, from using the Marks or Domain Names in any manner whatsoever, directly or indirectly, and such Assignor shall execute such further documents that the Collateral Agent may
        reasonably request to further confirm this and to transfer ownership of the Marks or Domain Names and registrations and any pending trademark applications in the United States Patent and Trademark Office or applicable Domain Name registrar to the Collateral Agent.

        ARTICLE V

         

        SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

        5.1 Additional Representations and Warranties. Each Assignor represents and warrants that it is the true and lawful owner of all rights in (i) all material Trade Secret Rights, (ii) the Patents listed in Annex J hereto for such Assignor and that said Patents include all the United States patents and applications for United States patents that such Assignor owns as of the date
        hereof and (iii) the registered Copyrights listed in Annex K hereto for such Assignor and that said Copyrights are all the United States copyrights registered with the United States Copyright Office and applications to United States copyrights that such Assignor owns as of the date hereof. Each Assignor further warrants that it has no knowledge of any third party claim that any aspect of such Assignor’s present or contemplated business operations infringes or will infringe any
        patent of any other Person or such Assignor has misappropriated any Trade Secret or proprietary information which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Each Assignor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the continuance of any Event of Default, any document which may be required by the United States Patent and Trademark Office or the United States
        Copyright Office in order to effect an absolute assignment of all right, title and interest in each Patent or Copyright, and to record the same.

         

        
            

             

            
                	
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        5.2 Licenses and Assignments. Except as otherwise permitted by the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any right under any material Patent or Copyright absent prior written approval of the Collateral Agent.

        5.3 Infringements. Each Assignor agrees, promptly upon learning thereof, to furnish the Collateral Agent in writing with all pertinent information available to such Assignor with respect to any infringement, contributing infringement or active inducement to infringe or other violation of such Assignor’s rights in any Patent or Copyright or to any claim that the practice of
        any Patent or use of any Copyright violates any property right of a third party, or with respect to any misappropriation of any Trade Secret Right or any claim that practice of any Trade Secret Right violates any property right of a third party, in each case, in any manner which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Each Assignor further agrees, absent direction of the Collateral Agent to the contrary, to diligently
        prosecute, in accordance with its reasonable business judgment, any Person infringing any Patent or Copyright or any Person misappropriating any Trade Secret Right, in each case to the extent that such infringement or misappropriation, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

        5.4 Maintenance of Patents or Copyrights. At its own expense, each Assignor shall make timely payment of all post-issuance fees required to maintain in force its rights under each material Patent or Copyright, absent prior written consent of the Collateral Agent.

        5.5 Prosecution of Patent or Copyright Applications. At its own expense, each Assignor shall diligently prosecute all material applications for (i) United States Patents listed in Annex J hereto and (ii) Copyrights listed on Annex K hereto, in each case for such Assignor and shall not abandon any such application prior to exhaustion of all administrative and judicial
        remedies (other than applications that are deemed by such Assignor in its reasonable business judgment to no longer be necessary in the conduct of the Assignor’s business), absent written consent of the Collateral Agent.

        5.6 Other Patents and Copyrights. Within 30 days of the acquisition or issuance of a United States Patent, registration of a Copyright, or acquisition of a registered Copyright, or of filing of an application for a United States Patent or Copyright, the relevant Assignor shall deliver to the Collateral Agent a copy of said Copyright or Patent, or certificate or registration of,
        or application therefor, as the case may be, with a grant of a security interest as to such Patent or Copyright, as the case may be, to the Collateral Agent and at the expense of such Assignor, confirming the grant of a security interest, the form of such grant of a security interest to be substantially in the form of Annex M or N hereto, as appropriate, or in such other form as may be reasonably satisfactory to the Collateral Agent.

        5.7 Remedies. If an Event of Default shall occur and be continuing, the Collateral Agent may, by written notice to the relevant Assignor, take any or all of the following actions: (i) declare the entire right, title, and interest of such Assignor in each of the Patents and Copyrights vested in the Collateral Agent for the benefit of the Secured Creditors, in which event such
        right, title, and interest shall immediately vest in the Collateral Agent for the benefit of the Secured Creditors, in which case the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 5.1 hereof to execute, cause to be acknowledged and notarized and

         

        
            

             

            
                	
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        to record said absolute assignment with the applicable agency; (ii) take and practice or sell the Patents and Copyrights; and (iii) direct such Assignor to refrain, in which event such Assignor shall refrain, from practicing the Patents and using the Copyrights directly or indirectly, and such Assignor shall execute such further documents as the Collateral Agent may reasonably request further to confirm
        this and to transfer ownership of the Patents and Copyrights to the Collateral Agent for the benefit of the Secured Creditors.

        ARTICLE VI

         

        PROVISIONS CONCERNING ALL COLLATERAL

        6.1 Protection of Collateral Agent’s Security. Except as otherwise permitted by the Secured Debt Agreements, each Assignor will do nothing to impair, in any material respect, the rights of the Collateral Agent in the Collateral. Each Assignor will at all times maintain insurance, at such Assignor’s own expense to the extent and in the manner provided in the Secured
        Debt Agreements. Except to the extent otherwise permitted to be retained by such Assignor or applied by such Assignor pursuant to the terms of the Secured Debt Agreements, the Collateral Agent shall, at the time any proceeds of such insurance are distributed to the Secured Creditors, apply such proceeds in accordance with Section 7.4 hereof. Each Assignor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Assignor to pay
        the Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor.

        6.2 Warehouse Receipts Non-Negotiable. To the extent practicable, each Assignor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of its Inventory, such Assignor shall request that such warehouse receipt or receipt in the nature thereof shall not be “negotiable” (as such term is used in Section 7-104 of
        the Uniform Commercial Code as in effect in any relevant jurisdiction or under other relevant law).

        6.3 Additional Information. Each Assignor will, at its own expense, from time to time upon the reasonable request of the Collateral Agent, promptly (and in any event within 10 days after its receipt of the respective request) furnish to the Collateral Agent such information with respect to the Collateral (including the identity of the Collateral or such components thereof as may
        have been requested by the Collateral Agent, and the estimated value and location of such Collateral). Without limiting the forgoing, each Assignor agrees that it shall promptly (and in any event within 20 days after its receipt of the respective request) furnish to the Collateral Agent such updated Annexes hereto as may from time to time be reasonably requested by the Collateral Agent.

        6.4 Further Actions. Each Assignor will, at its own expense and upon the reasonable request of the Collateral Agent, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such lists, descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents of title,
        vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and

         

        
            

             

            
                	
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        take such further steps relating to the Collateral and other property or rights covered by the security interest hereby granted, which the Collateral Agent deems reasonably appropriate or advisable to perfect, preserve or protect its security interest in the Collateral consistent with the provisions of this Agreement.

        6.5 Financing Statements. Each Assignor agrees to execute and deliver to the Collateral Agent such financing statements, in form reasonably acceptable to the Collateral Agent, as the Collateral Agent may from time to time reasonably request or as are reasonably necessary or desirable in the opinion of the Collateral Agent to establish and maintain a valid, enforceable, perfected
        security interest in the Collateral as provided herein and the other rights and security contemplated hereby. Each Assignor will pay any applicable filing fees, recordation taxes and related expenses relating to its Collateral. Each Assignor hereby authorizes the Collateral Agent to file any such financing statements without the signature of such Assignor where permitted by law (and such authorization includes describing the Collateral as “all assets” of such Assignor with
        further reference to those assets specifically excluded from the grant of the security interest contained in this Agreement).

        ARTICLE VII

         

        REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

        7.1 Remedies; Obtaining the Collateral Upon Default. Each Assignor agrees that, if any Event of Default shall have occurred and be continuing, then and in every such case, the Collateral Agent, in addition to any rights now or hereafter existing under applicable law and under the other provisions of this Agreement, shall have all rights as a secured creditor under any UCC, and
        such additional rights and remedies to which a secured creditor is entitled under the laws in effect in all relevant jurisdictions and may:

        (i)        personally, or by agents or attorneys, immediately take possession of the Collateral or any part thereof, from such Assignor or any other Person who then has possession of any part thereof with or without notice or process of law, and for that purpose may enter upon such Assignor’s premises where any of the
        Collateral is located and remove the same and use in connection with such removal any and all services, supplies, aids and other facilities of such Assignor;

        (ii)       instruct the obligor or obligors on any agreement, instrument or other obligation (including, without limitation, the Accounts and the Contracts) constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation directly to the Collateral Agent and may exercise any
        and all remedies of such Assignor in respect of such Collateral;

        (iii)      instruct all banks which have entered into a control agreement with the Collateral Agent to transfer all monies, securities and instruments held by such depositary bank to the Cash Collateral Account;

        (iv)      sell, assign or otherwise liquidate any or all of the Collateral or any part thereof in accordance with Section 7.2 hereof, or direct such Assignor to sell, assign or

         

        
            

             

            
                	
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        otherwise liquidate any or all of the Collateral or any part thereof, and, in each case, take possession of the proceeds of any such sale or liquidation;

        (v)       take possession of the Collateral or any part thereof, by directing such Assignor in writing to deliver the same to the Collateral Agent at any reasonable place or places designated by the Collateral Agent, in which event such Assignor shall at its own expense:

        (x)       forthwith cause the same to be moved to the place or places so designated by the Collateral Agent and there delivered to the Collateral Agent;

        (y)       store and keep any Collateral so delivered to the Collateral Agent at such place or places pending further action by the Collateral Agent as provided in Section 7.2 hereof; and

        (z)       while the Collateral shall be so stored and kept, provide such security and maintenance services as shall be reasonably necessary to protect the same and to preserve and maintain it in good condition;

        (vi)      license or sublicense, whether on an exclusive or nonexclusive basis, any Marks, Domain Names, Patents or Copyrights included in the Collateral for such term and on such conditions and in such manner as the Collateral Agent shall in its sole judgment determine;

        (vii)     apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of Section 7.4;

        (viii)    accelerate any Note which may be accelerated in accordance with its terms, and take any other lawful action to collect upon any Note (including, without limitation, to make any demand for payment thereon);

        (ix)      transfer all or any part of the Collateral into the Collateral Agent’s name or the name of its nominee or nominees;

        (x)       vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Collateral Agent) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof
        (each Assignor hereby irrevocably constituting and appointing the Collateral Agent the proxy and attorney-in-fact of such Assignor, with full power of substation to do so); and

        (xi)      take any other action as specified in clauses (1) through (5), inclusive, of Section 9-607 of the UCC;

        it being understood that each Assignor’s obligation so to deliver the Collateral is of the essence of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction, the Collateral Agent shall be entitled to a decree requiring specific performance by such

         

        
            

             

            
                	
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        Assignor of said obligation. By accepting the benefits of this Agreement and each other Security Document, the Secured Creditors expressly acknowledge and agree that this Agreement and each other Security Document may be enforced only by the action of the Collateral Agent acting upon the instructions of the Required Secured Creditors and that no other Secured Creditor shall have any right individually to
        seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Collateral Agent for the benefit of the Secured Creditors upon the terms of this Agreement and the other Security Documents.

        7.2 Remedies; Disposition of the Collateral. If any Event of Default shall have occurred and be continuing, then any Collateral repossessed by the Collateral Agent under or pursuant to Section 7.1 hereof and any other Collateral whether or not so repossessed by the Collateral Agent, may be sold, assigned, leased or otherwise disposed of under one or more contracts or as an
        entirety, and without the necessity of gathering at the place of sale the property to be sold, and in general in such manner, at such time or times, at such place or places and on such terms as the Collateral Agent may, in compliance with any mandatory requirements of applicable law, determine to be commercially reasonable. Any of the Collateral may be sold, leased or otherwise disposed of, in the condition in which the same existed when taken by the Collateral Agent or after any
        overhaul or repair at the expense of the relevant Assignor which the Collateral Agent shall determine to be commercially reasonable. Any such sale, lease or other disposition may be effected by means of a public disposition or private disposition, effected in accordance with the applicable requirements (in each case if and to the extent applicable) of Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements of applicable law as may apply to the respective
        disposition. The Collateral Agent may, without notice or publication, adjourn any public or private disposition or cause the same to be adjourned from time to time by announcement at the time and place fixed for the disposition, and such disposition may be made at any time or place to which the disposition may be so adjourned. To the extent permitted by any such requirement of law, the Collateral Agent may bid for and become the purchaser (and may pay all or any portion of the purchase
        price by crediting Obligations against the purchase price) of the Collateral or any item thereof, offered for disposition in accordance with this Section 7.2 without accountability to the relevant Assignor. If, under applicable law, the Collateral Agent shall be permitted to make disposition of the Collateral within a period of time which does not permit the giving of notice to the relevant Assignor as hereinabove specified, the Collateral Agent need give such Assignor only such notice
        of disposition as shall be required by such applicable law. Each Assignor agrees to do or cause to be done all such other acts and things as may be reasonably necessary to make such disposition or dispositions of all or any portion of the Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction
        over any such sale or sales, all at such Assignor’s expense.

        7.3 Waiver of Claims. Except as otherwise provided in this Agreement, EACH ASSIGNOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL

         

        
            

             

            
                	
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        PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Assignor hereby further waives, to the extent permitted by law:

        (i)        all damages occasioned by such taking of possession or any such disposition except any damages which are the direct result of the Collateral Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision);

        (ii)       all other requirements as to the time, place and terms of sale or other requirements with respect to the enforcement of the Collateral Agent’s rights hereunder; and

        (iii)      all rights of redemption, appraisement, valuation, stay, extension or moratorium now or hereafter in force under any applicable law in order to prevent or delay the enforcement of this Agreement or the absolute sale of the Collateral or any portion thereof, and each Assignor, for itself and all who may claim under it,
        insofar as it or they now or hereafter lawfully may, hereby waives the benefit of all such laws.

         

        Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the relevant Assignor therein and thereto, and shall be a perpetual bar both at law and in equity against such Assignor and against any and all Persons claiming or attempting to claim the Collateral so sold,
        optioned or realized upon, or any part thereof, from, through and under such Assignor.

        7.4 Application of Proceeds. (a) All moneys collected by the Collateral Agent (or, to the extent any Mortgage or any other Security Document requires proceeds of collateral under such other Security Document to be applied in accordance with the provisions of this Agreement, the Collateral Agent or other agent under such other Security Document) upon any sale or other disposition
        of the Collateral, together with all other moneys received by the Collateral Agent hereunder, shall be applied as follows:

        (i)        first, to the payment of all amounts owing the Collateral Agent of the type described in clauses (iii), (iv) and (v) of the definition of “Obligations”;

        (ii)       second, to the extent proceeds remain after the application pursuant to the preceding clause (i), to the payment of all amounts owing to the Administrative Agent of the type described in clauses (v) and (vi) of the definition of “Obligations”;

        (iii)      third, to the extent proceeds remain after the application pursuant to the preceding clauses (i) and (ii), an amount equal to the outstanding Primary Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving
        an amount equal to its outstanding Primary Obligations or, if the proceeds are insufficient to pay in full all such Primary Obligations, its Pro Rata Share of the amount remaining to be distributed;

         

        
            

             

            
                	
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        (iv)      fourth, to the extent proceeds remain after the application pursuant to the preceding clauses (i) through (iii), inclusive, an amount equal to the outstanding Secondary Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured
        Creditor receiving an amount equal to its outstanding Secondary Obligations or, if the proceeds are insufficient to pay in full all such Secondary Obligations, its Pro Rata Share of the amount remaining to be distributed; and

        (v)       fifth, to the extent proceeds remain after the application pursuant to the preceding clauses (i) through (iv), inclusive, and following the termination of this Agreement pursuant to Section 10.8(a) hereof, to the relevant Assignor or to whomever may be lawfully entitled
        to receive such surplus.

                       (b)       For purposes of this Agreement, (x) “Pro Rata Share” shall mean, when calculating a Secured Creditor’s portion of any distribution or amount, that amount (expressed as a percentage) equal
        to a fraction the numerator of which is the then unpaid amount of such Secured Creditor’s Primary Obligations or Secondary Obligations, as the case may be, and the denominator of which is the then outstanding amount of all Primary Obligations or Secondary Obligations, as the case may be, (y) “Primary Obligations” shall mean (i) in the case of the Credit Document Obligations, all principal of, premium, fees and interest
        on, all Loans, all Unpaid Drawings, the Stated Amount of all outstanding Letters of Credit and all Fees and (ii) in the case of the Other Obligations, all amounts due under each Secured Hedging Agreement (other than indemnities, fees (including, without limitation, attorneys’ fees) and similar obligations and liabilities) and (z) “Secondary Obligations” shall mean all Obligations other than Primary
        Obligations.

        (c)       When payments to Secured Creditors are based upon their respective Pro Rata Shares, the amounts received by such Secured Creditors hereunder shall be applied (for purposes of making determinations under this Section 7.4 only) (i)
        first, to their Primary Obligations and (ii) second, to their Secondary Obligations. If any payment to any Secured Creditor of its Pro Rata Share of any distribution would result in overpayment to such Secured Creditor, such excess amount shall instead be distributed in respect of the unpaid Primary Obligations or
        Secondary Obligations, as the case may be, of the other Secured Creditors, with each Secured Creditor whose Primary Obligations or Secondary Obligations, as the case may be, have not been paid in full to receive an amount equal to such excess amount multiplied by a fraction the numerator of which is the unpaid Primary Obligations or Secondary Obligations, as the case may be, of such Secured Creditor and the denominator of which is the unpaid Primary Obligations or Secondary Obligations,
        as the case may be, of all Secured Creditors entitled to such distribution.

        (d)       Each of the Secured Creditors, by their acceptance of the benefits hereof and of the other Security Documents, agrees and acknowledges that if the Lender Creditors receive a distribution on account of undrawn amounts with respect to Letters of Credit issued under the Credit Agreement (which shall only occur after all outstanding Revolving
        Loans under the Credit Agreement and Unpaid Drawings have been paid in full), such amounts shall be paid to the Administrative Agent under the Credit Agreement and held by it, for the equal and ratable benefit of the Lender Creditors, as cash security for the repayment of Obligations owing to the Lender Creditors as such. If any amounts are held as cash security pursuant to the immediately preceding sentence, then upon the termination of all outstanding Letters of Credit under
        the

         

        
            

             

            
                	
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        Credit Agreement, and after the application of all such cash security to the repayment of all Obligations owing to the Lender Creditors after giving effect to the termination of all such Letters of Credit, if there remains any excess cash, such excess cash shall be returned by the Administrative Agent to the Collateral Agent for distribution in accordance with Section 7.4(a) hereof.

        (e)       All payments required to be made hereunder shall be made (x) if to the Lender Creditors, to the Administrative Agent for the account of the Lender Creditors and (y) if to the Other Creditors, to the trustee, paying agent or other similar representative (each, a “Representative”)
        for the Other Creditors or, in the absence of such a Representative, directly to the Other Creditors.

        (f)        For purposes of applying payments received in accordance with this Section 7.4, the Collateral Agent shall be entitled to rely upon (i) the Administrative Agent and (ii) the Representative or, in the absence of such a Representative, upon the Other Creditors for a determination (which the Administrative Agent, each Representative and
        the Other Creditors agree (or shall agree) to provide upon request of the Collateral Agent) of the outstanding Primary Obligations and Secondary Obligations owed to the Lender Creditors or the Other Creditors, as the case may be. Unless it has received written notice from a Lender Creditor or an Other Creditor to the contrary, the Administrative Agent and each Representative, in furnishing information pursuant to the preceding sentence, and the Collateral Agent, in acting hereunder,
        shall be entitled to assume that no Secondary Obligations are outstanding. Unless it has written notice from an Other Creditor to the contrary, the Collateral Agent, in acting hereunder, shall be entitled to assume that no Secured Hedging Agreements are in existence.

        (g)       It is understood that the Assignors shall remain jointly and severally liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the Obligations.

        7.5 Remedies Cumulative. Each and every right, power and remedy hereby specifically given to the Collateral Agent shall be in addition to every other right, power and remedy specifically given to the Collateral Agent under this Agreement, the other Secured Debt Agreements or now or hereafter existing at law, in equity or by statute and each and every right, power and remedy
        whether specifically herein given or otherwise existing may be exercised from time to time or simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent. All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the exercise of one shall not be deemed a waiver of the right to exercise any other or others. No delay or omission of the Collateral Agent in the exercise of any such right, power or remedy and no renewal
        or extension of any of the Obligations shall impair any such right, power or remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence thereof. No notice to or demand on any Assignor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Collateral Agent to any other or further action in any circumstances without notice or demand. In the event that
        the Collateral Agent shall bring any suit to enforce any of its rights hereunder and shall be entitled to judgment, then in such suit the Collateral Agent may recover reasonable expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such judgment.

         

        
            

             

            
                	
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        7.6 Discontinuance of Proceedings. In case the Collateral Agent shall have instituted any proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Collateral Agent, then and in every such case the
        relevant Assignor, the Collateral Agent and each holder of any of the Obligations shall be restored to their former positions and rights hereunder with respect to the Collateral subject to the security interest created under this Agreement, and all rights, remedies and powers of the Collateral Agent shall continue as if no such proceeding had been instituted.

        ARTICLE VIII

         

        INDEMNITY

        8.1 Indemnity. (a)  Each Assignor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent, each other Secured Creditor and their respective successors, assigns, employees, affiliates and agents (hereinafter in this Section 8.1 referred to individually as “Indemnitee,” and
        collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (for the purposes of this Section 8.1 the foregoing are collectively called “expenses”) of whatsoever
        kind and nature imposed on, asserted against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Secured Debt Agreement or any other document executed in connection herewith or therewith or in any other way connected with the administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the
        manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the violation of the laws of any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of
        injury to or the death of any Person (including any Indemnitee), or property damage), or contract claim; provided that no Indemnitee shall be indemnified pursuant to this Section 8.1(a) for losses, damages or liabilities to the extent caused by the gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision). Each Assignor agrees that upon written notice by any Indemnitee of the assertion of such a
        liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment, the relevant Assignor shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to promptly notify the relevant Assignor of any such assertion of which such Indemnitee has knowledge.

        (b)       Without limiting the application of Section 8.1(a) hereof, each Assignor agrees, jointly and severally, to pay or reimburse the Collateral Agent for any and all reasonable fees, costs and expenses of whatever kind or nature incurred in connection with the creation, preservation or protection of the Collateral Agent’s Liens on, and
        security interest in, the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens

         

        
            

             

            
                	
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        upon or in respect of the Collateral, premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the
        Collateral.

        (c)       Without limiting the application of Section 8.1(a) or (b) hereof, each Assignor agrees, jointly and severally, to pay, indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses which such Indemnitee may suffer, expend or incur in consequence of or growing out of any misrepresentation by any Assignor in
        this Agreement, any other Secured Debt Agreement or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Secured Debt Agreement.

        (d)       If and to the extent that the obligations of any Assignor under this Section 8.1 are unenforceable for any reason, such Assignor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.

        8.2 Indemnity Obligations Secured by Collateral; Survival. Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations secured by the Collateral. The indemnity obligations of each Assignor contained in this Article VIII shall continue in full force and effect notwithstanding the full payment of all of the other
        Obligations and notwithstanding the full payment of all the Notes (as defined in the Credit Agreement) issued, and Loans made, under the Credit Agreement, the termination of all Letters of Credit issued under the Credit Agreement, the termination of all Secured Hedging Agreements and the payment of all other Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date.

        ARTICLE IX

         

        DEFINITIONS

        The following terms shall have the meanings herein specified. Such definitions shall be equally applicable to the singular and plural forms of the terms defined.

        “Account” shall mean any “account” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, and in any event shall include but shall not be limited to, all rights to payment of any monetary obligation, whether or not earned by performance, (i) for property
        that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as
        winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by

         

        
            

             

            
                	
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        a State or governmental unit of a State. Without limiting the foregoing, the term “account” shall include all Health-Care-Insurance Receivables.

        “Administrative Agent” shall have the meaning provided in the recitals of this Agreement.

        “Agreement” shall mean this Security Agreement, as the same may be amended, modified, restated and/or supplemented from time to time in accordance with its terms.

        “As-Extracted Collateral” shall mean “as-extracted collateral” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Assignor” shall have the meaning provided in the first paragraph of this Agreement.

        “Borrower” shall have the meaning provided in the recitals of this Agreement.

        “Cash Collateral Account” shall mean a non-interest bearing cash collateral account maintained with, and in the sole dominion and control of, the Collateral Agent for the benefit of the Secured Creditors.

        “Certificated Security” shall have the meaning given such term in Section 8-102(a)(4) of the UCC.

        “Chattel Paper” shall mean “chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York. Without limiting the foregoing, the term “Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic Chattel
        Paper.

        “Class” shall have the meaning provided in Section 10.2 of this Agreement.

        “Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5) of the UCC.

        “Collateral” shall have the meaning provided in Section 1.1(a) of this Agreement.

        “Collateral Agent” shall have the meaning provided in the first paragraph of this Agreement.

        “Commercial Tort Claims” shall mean “commercial tort claims” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Contract Rights” shall mean all rights of any Assignor under each Contract, including, without limitation, (i) any and all rights to receive and demand payments under any or all Contracts, (ii) any and all rights to receive and compel performance under any or all Contracts

         

        
            

             

            
                	
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        and (iii) any and all other rights, interests and claims now existing or in the future arising in connection with any or all Contracts.

        “Contracts” shall mean all contracts between any Assignor and one or more additional parties (including, without limitation, any Interest Rate Protection Agreements, Other Hedging Agreements, licensing agreements and any partnership agreements, joint venture agreements and limited liability company agreements).

        “Copyrights” shall mean any United States or foreign copyright now or hereafter owned by any Assignor, including any registrations of any copyrights in the United States Copyright Office or any foreign equivalent office, as well as any application for a copyright registration now or hereafter made with the United States
        Copyright Office or any foreign equivalent office by any Assignor.

        “Credit Agreement” shall have the meaning provided in the recitals of this Agreement.

        “Credit Document Obligations” shall have the meaning provided in the definition of “Obligations” in this Article IX.

        “Deposit Accounts” shall mean all “deposit accounts” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Documents” shall mean “documents” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Domain Names” shall mean all Internet domain names and associated URL addresses in or to which any Assignor now or hereafter has any right, title or interest.

        “Electronic Chattel Paper” shall mean “electronic chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Equipment” shall mean any “equipment” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, and in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by any Assignor
        and any and all additions, substitutions and replacements of any of the foregoing and all accessions thereto, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.

        “Excluded Accounts” shall mean (i) any Deposit Account used solely for funding payroll, pension contributions or segregating payroll taxes and (ii) any petty cash Deposit Account that does not have a cash balance at any time exceeding $50,000 so long as the aggregate of all such petty cash Deposit Accounts that are not
        subject to a “control agreement” as provided in Section 3.9 hereof do not have cash balances at any time exceeding $500,000.

         

        
            

             

            
                	
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        “Excluded Property” shall mean all ownership interests in (a) (i) Lee Enterprises, Incorporated Retirement Account Plan and related trust, (ii) Lee Enterprises, Incorporated Outside Directors Deferral Plan (effective January 1, 2005), (iii) Lee Enterprises, Incorporated Supplementary Benefit Plan and Trust for Non-Qualified
        Deferred Compensation Benefit Plans of Lee Enterprises (dated January 1, 2006), (iv) Lee Enterprises, Incorporated 1977 Employee Stock Purchase Plan (amended May 17, 2008), and (v) Lee Enterprises, Incorporated Supplemental Employee Stock Purchase Plan (amended February 20, 2007) (each as amended modified, restated and/or supplemented from time to time), in each case so long as such plans are solely for the benefit of officers, directors and/or employees of any Assignor or any
        Subsidiary thereof, and (b) any Equity Interests held by any Assignor in Madison Newspapers, Inc., The Capital Times Company, or TNI Partners (each a “Specified Entity”) so long as, in each case as to any Specified Entity, such Specified Entity is not a Subsidiary of the Borrower.

        “Event of Default” shall mean any Event of Default under, and as defined in, the Credit Agreement and shall in any event include, without limitation, any payment default on any of the Obligations after the expiration of any applicable grace period.

        “Financial Assets” shall have the meaning given such term in Section 8-102(a)(9) of the UCC.

        “General Intangibles” shall mean “general intangibles” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Goods” shall mean “goods” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Health-Care-Insurance Receivable” shall mean any “health-care-insurance receivable” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Indemnitee” shall have the meaning provided in Section 8.1(a) of this Agreement.

        “Instrument” shall mean “instruments” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Inventory” shall mean merchandise, inventory and goods, and all additions, substitutions and replacements thereof and all accessions thereto, wherever located, together with all goods, supplies, incidentals, packaging materials, labels, materials and any other items used or usable in manufacturing, processing, packaging or
        shipping same, in all stages of production from raw materials through work in process to finished goods, and all products and proceeds of whatever sort and wherever located any portion thereof which may be returned, rejected, reclaimed or repossessed by the Collateral Agent from any Assignor’s customers, and shall specifically include all “inventory” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New
        York.

        “Investment Property” shall mean “investment property” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

         

        
            

             

            
                	
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        “Joint Venture Investment Property” shall mean all Limited Liability Company Interests, Partnership Interests and Stock.

        “Lender Creditors” shall have the meaning provided in the recitals of this Agreement.

        “Lenders” shall have the meaning provided in the recitals of this Agreement.

        “Letter-of-Credit Rights” shall mean “letter-of-credit rights” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Limited Liability Company Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all limited liability company capital and interest in other limited liability companies), at any time represented by any Limited Liability Company Interest.

        “Limited Liability Company Interests” shall mean the entire limited liability company membership interest at any time owned by any Assignor in any limited liability company that is not a Subsidiary of such Assignor.

        “Location” of any Assignor, shall mean such Assignor’s “location” as determined pursuant to Section 9-307 of the UCC.

        “Marks” shall mean all right, title and interest in and to any trademarks, service marks and trade names now held or hereafter acquired by any Assignor, including any registration or application for registration of any trademarks and service marks now held or hereafter acquired by any Assignor, which are registered or filed
        in the United States Patent and Trademark Office or the equivalent thereof in any state of the United States or any equivalent foreign office or agency, as well as any unregistered trademarks and service marks used by an Assignor and any trade dress including logos, designs, fictitious business names and other business identifiers used by any Assignor.

        “Notes” shall mean (x) all intercompany notes at any time issued to each Assignor and (y) all other promissory notes from time to time issued to, or held by, each Assignor.

        “Obligations” shall mean and include, as to any Assignor, all of the following:

        (i)  the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, principal, premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the
        bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding), reimbursement obligations under Letters of Credit, fees, costs and indemnities) of such Assignor to the Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, each Credit Document to which such Assignor is a party
        (including, without limitation, in the

         

        
            

             

            
                	
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        event such Assignor is a Guarantor, all such obligations, liabilities and indebtedness of such Assignor under its Guaranty) and the due performance and compliance by such Assignor with all of the terms, conditions and agreements contained in each such Credit Document (all such obligations, liabilities and indebtedness under this clause (i), except to the extent consisting of
        obligations or indebtedness with respect to Secured Hedging Agreements, being herein collectively called the “Credit Document Obligations”);

        (ii) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at
        the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) owing by such Assignor to the Other Creditors, now existing or hereafter incurred under, arising out of or in connection with any Secured Hedging Agreement, whether such Secured Hedging Agreement is now in existence or hereinafter arising (including, without limitation, in the case of a Assignor that is a Guarantor, all obligations, liabilities and
        indebtedness of such Assignor under its Guaranty in respect of the Secured Hedging Agreements), and the due performance and compliance by such Assignor with all of the terms, conditions and agreements contained in each such Secured Hedging Agreement (all such obligations, liabilities and indebtedness under this clause (ii) being herein collectively called the “Other Obligations”);

        (iii) any and all sums advanced by the Collateral Agent in order to preserve the Collateral or preserve its security interest in the Collateral;

        (iv) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities of such Assignor referred to in clauses (i) and (ii) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing
        on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys’ fees and court costs;

        (v) all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 8.1 of this Agreement; and

        (vi) all amounts owing to any Agent pursuant to any of the Credit Documents in its capacity as such;

        it being acknowledged and agreed that the “Obligations” shall include extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement.

        “Other Creditors” shall have the meaning provided in the recitals of this Agreement.

        “Other Obligations” shall have the meaning provided in the definition of “Obligations” in this Article IX.

         

        
            

             

            
                	
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        “Partnership Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all partnership capital and interest in other partnerships), represented by any Partnership Interest.

        “Partnership Interest” shall mean the entire general partnership interest or limited partnership interest at any time owned by any Assignor in any general partnership or limited partnership that is not a Subsidiary of such Assignor.

        “Patents” shall mean any patent in or to which any Assignor now or hereafter has any right, title or interest therein, and any divisions, continuations (including, but not limited to, continuations-in-parts) and improvements thereof, as well as any application for a patent now or hereafter made by any Assignor.

        “Permits” shall mean, to the extent permitted to be assigned by the terms thereof or by applicable law, all licenses, permits, rights, orders, variances, franchises or authorizations of or from any governmental authority or agency.

        “Primary Obligations” shall have the meaning provided in Section 7.4(b) of this Agreement.

        “Pro Rata Share” shall have the meaning provided in Section 7.4(b) of this Agreement.

        “Proceeds” shall mean all “proceeds” as such term is defined in the Uniform Commercial Code as in effect in the State of New York on the date hereof and, in any event, shall also include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Collateral
        Agent or any Assignor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to any Assignor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any person acting under color of governmental authority) and (iii) any and all other amounts from time to time paid or payable under or in
        connection with any of the Collateral.

        “Registered Organization” shall have the meaning provided in the Uniform Commercial Code as in effect in the State of New York.

        “Representative” shall have the meaning provided in Section 7.4(e) of this Agreement.

        “Required Secured Creditors” shall mean (i) at any time when any Credit Document Obligations or Letters of Credit are outstanding or any Commitments under the Credit Agreement exist, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders) and (ii) at any time after all
        of the Credit Document Obligations have been paid in full and all Commitments under the Credit Agreement have been terminated and no further Commitments and Letters of Credit may be provided thereunder, the holders of a majority of the Other Obligations.

         

        
            

             

            
                	
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        “Requisite Creditors” shall have the meaning provided in Section 10.2 of this Agreement.

        “Secondary Obligations” shall have the meaning provided in Section 7.4(b) of this Agreement.

        “Secured Creditors” shall have the meaning provided in the recitals of this Agreement.

        “Secured Debt Agreements” shall mean and include this Agreement, the other Credit Documents and each Secured Hedging Agreement.

        “Secured Hedging Agreement” shall have the meaning provided in the recitals to this Agreement.

        “Securities Entitlement” shall have the meaning given such term in Section 8-102(a)(17) of the UCC.

        “Securities Intermediary” shall have the meaning given such term in Section 8-102(14) of the UCC.

        “Software” shall mean “software” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Specified Entity” shall have the meaning provided in the definition of “Excluded Property” contained herein.

        “Stock” shall mean (x) with respect to corporations incorporated under the laws of the United States or any State thereof or the District of Columbia (each, a “Domestic Corporation”), all of the issued and outstanding shares of stock owned by any Assignor of any
        Domestic Corporation that is not a Subsidiary of such Assignor and (y) with respect to corporations not Domestic Corporations (each, a “Foreign Corporation”), all of the issued and outstanding shares of capital stock at any time by any Assignor of any Domestic Corporation that is not a Subsidiary of such Assignor.

        “Supporting Obligations” shall mean any “supporting obligation” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, now or hereafter owned by any Assignor, or in which any Assignor has any rights, and, in any event, shall include, but shall not be
        limited to all of such Assignor’s rights in any Letter-of-Credit Right or secondary obligation that supports the payment or performance of, and all security for, any Account, Chattel Paper, Document, General Intangible, Instrument or Investment Property.

        “Tangible Chattel Paper” shall mean “tangible chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

         

        
            

             

            
                	
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        “Termination Date” shall have the meaning provided in Section 10.8(a) of this Agreement.

        “Timber-to-be-Cut” shall mean “timber-to-be-cut” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

        “Trade Secrets” shall mean any secretly held existing engineering or other data, information, production procedures and other know-how relating to the design manufacture, assembly, installation, use, operation, marketing, sale and/or servicing of any products or business of an Assignor worldwide whether written or
        not.

        “Trade Secret Rights” shall mean the rights of an Assignor in any Trade Secret it holds.

        “Transmitting Utility” shall have the meaning given such term in Section 9-102(a)(80) of the UCC.

        “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the relevant jurisdiction.

        “Uncertificated Security” shall have the meaning given such term in Section 8-102(a)(18) of the UCC.

        ARTICLE X

         

        MISCELLANEOUS

        10.1 Notices. Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when
        deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Collateral Agent or any Assignor shall not be effective until received by the Collateral Agent or such Assignor, as the case may be. All notices and other communications shall be in writing and addressed as follows:

        
            	
                         

                    	
                        (a)

                    	
                        if to any Assignor, c/o:

                    

        

        Lee Enterprises, Incorporated

        201 North Harrison Street

        Davenport, Iowa 52801

        Attention: Chief Financial Officer

        Telephone No.: (563) 383-2179

        Telecopier No.: (563) 327-2600

        
            	
                         

                    	
                        (b)

                    	
                        if to the Collateral Agent, at:

                    

        

         

        
            

             

            
                	
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        60 Wall Street

        New York, New York 10005

        Attention: Susan Lefevre

        Telephone No.: (212) 250-6114

        Telecopier No.: (212) 797-5692

        (c)       if to any Lender Creditor (other than the Collateral Agent), at such address as such Lender Creditor shall have specified in the Credit Agreement;

        (d)       if to any Other Creditor, at such address as such Other Creditor shall have specified in writing to each Assignor and the Collateral Agent;

        or at such other address or addressed to such other individual as shall have been furnished in writing by any Person described above to the party required to give notice hereunder.

        10.2 Waiver; Amendment. Except as provided in Sections 10.8 and 10.12 hereof, none of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by each Assignor directly affected thereby (it being understood that the addition or release of any Assignor hereunder shall not constitute a change,
        waiver, discharge or termination affecting any Assignor other than the Assignor so added or released) and the Collateral Agent (with the written consent of the Required Secured Creditors); provided, however, that any change, waiver, modification or variance affecting the rights and benefits of a single Class of Secured Creditors (and not all Secured Creditors in a like or similar
        manner) also shall require the written consent of the Requisite Creditors of such affected Class. For the purpose of this Agreement, the term “Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as the holders of the Other Obligations. For the purpose of this
        Agreement, the term “Requisite Creditors” of any Class shall mean each of (x) with respect to the Credit Document Obligations, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders), and (y) with respect to the Other Obligations, the holders of at least a majority of all Other Obligations outstanding from time to time.

        10.3 Obligations Absolute. The obligations of each Assignor hereunder shall remain in full force and effect without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of such Assignor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under
        or in respect of this Agreement or any other Secured Debt Agreement; or (c) any amendment to or modification of any Secured Debt Agreement or any security for any of the Obligations; whether or not such Assignor shall have notice or knowledge of any of the foregoing.

        10.4 Successors and Assigns. This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 10.8 hereof, (ii) be binding upon each Assignor, its successors and assigns; provided,
        however, that no Assignor shall assign any of its rights or obligations hereunder without the prior written consent of the Collateral Agent (with the prior written

         

        
            

             

            
                	
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        consent of the Required Secured Creditors), and (iii) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent, the other Secured Creditors and their respective successors, transferees and assigns. All agreements, statements, representations and warranties made by each Assignor herein or in any certificate or other instrument delivered by such
        Assignor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by the Secured Creditors or on their behalf.

        10.5 Headings Descriptive. The headings of the several sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

        10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE INTERNAL LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
        DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT TO PLEAD OR
        CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN
        SECTION 10.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO
        SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION.

         

        
            

             

            
                	
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        (b)       EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES
        NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

        (c)       EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

        10.7 Assignor’s Duties. It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Assignor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Collateral Agent shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this
        Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform or fulfill any of the obligations of any Assignor under or with respect to any Collateral.

        10.8 Termination; Release. (a)  After the Termination Date, this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation in Section 8.1 hereof, shall survive such termination) and the Collateral Agent, at the request and expense of the respective Assignor, will promptly
        execute and deliver to such Assignor a proper instrument or instruments (including Uniform Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such Assignor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Collateral Agent and as has not theretofore been sold or otherwise applied or released pursuant to
        this Agreement. As used in this Agreement, “Termination Date” shall mean the date upon which the Total Commitment under the Credit Agreement has been terminated and all Secured Hedging Agreements have been terminated, no Note under (and as defined in) the Credit Agreement is outstanding and all Loans thereunder have been repaid in full, all Letters of Credit issued under the Credit Agreement have been terminated and all
        Obligations then due and payable have been paid in full.

        (b)       In the event that any part of the Collateral is sold or otherwise disposed of (to a Person other than a Credit Party) (x) at any time prior to the time at which all Credit Document Obligations have been paid in full and all Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection with a sale or
        disposition permitted by Section 10.02 of the Credit Agreement or is otherwise released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt Agreements, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or such other Secured Debt
        Agreement, as the case may be, to the extent required to be so applied, the Collateral Agent, at the request and

         

        
            

             

            
                	
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        expense of such Assignor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to such Assignor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or
        otherwise disposed of, or released, and as may be in the possession of the Collateral Agent and has not theretofore been released pursuant to this Agreement. Furthermore, upon the release of any Subsidiary Guarantor from the Subsidiaries Guaranty in accordance with the provisions thereof, such Assignor (and the Collateral at such time assigned by the respective Assignor pursuant hereto) shall be released from this Agreement.

        (c)       At any time that an Assignor desires that the Collateral Agent take any action to acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 10.8(a) or (b), such Assignor shall deliver to the Collateral Agent a certificate signed by a principal executive officer of such Assignor stating that the release of the
        respective Collateral is permitted pursuant to such Section 10.8(a) or (b). At any time that the Borrower or the respective Assignor desires that a Subsidiary of the Borrower which has been released from the Subsidiaries Guaranty be released hereunder as provided in the last sentence of Section 10.8(b) hereof, it shall deliver to the Collateral Agent a certificate signed by a principal executive officer of the Borrower and the respective Assignor stating that the release of the
        respective Assignor (and its Collateral) is permitted pursuant to such Section 10.8(b). If reasonably requested by the Collateral Agent (although the Collateral Agent shall have no obligation to make such request), the relevant Assignor shall furnish appropriate legal opinions (from counsel, reasonably acceptable to the Collateral Agent) to the effect set forth in this Section 10.8(c).

        (d)       The Collateral Agent shall have no liability whatsoever to any other Secured Creditor as the result of any release of Collateral by it in accordance with (or which the Collateral Agent in good faith believes to be in accordance with) this Section 10.8.

        10.9 Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower
        and the Collateral Agent.

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

        10.11 The Collateral Agent and the other Secured Creditors. The Collateral Agent will hold in accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood and agreed that the obligations of the Collateral Agent as holder of the Collateral and interests therein and with respect to the disposition thereof, and
        otherwise under this Agreement, are only those expressly set forth in this Agreement and in Section 12 of the Credit Agreement. The Collateral Agent shall act hereunder on the terms and conditions set forth herein and in Section 12 of the Credit Agreement.

         

        
            

             

            
                	
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        10.12 Additional Assignors. It is understood and agreed that any Subsidiary Guarantor that desires to become an Assignor hereunder, or is required to execute a counterpart of this Agreement after the date hereof pursuant to the requirements of the Credit Agreement or any other Credit Document, shall become an Assignor hereunder by (x) executing a counterpart hereof and delivering
        same to the Collateral Agent or by executing a joinder agreement and delivering same to the Collateral Agent, in each case as may be requested by (and in form and substance satisfactory to) the Collateral Agent, (y) delivering supplements to Annexes A through F, inclusive, H through K, inclusive, and O through R, inclusive, hereto as are necessary to cause such Annexes to be complete and accurate with respect to such additional Assignor on such date and (z) taking all actions as
        specified in this Agreement as would have been taken by such Assignor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Collateral Agent and with all documents and actions required above to be taken to the reasonable satisfaction of the Collateral Agent.

        10.13 Post-Signing Actions. Notwithstanding anything to the contrary contained in this Agreement or the other Credit Documents, the parties hereto acknowledge and agree that no Assignor shall be required to deliver completed Annexes to this Agreement upon its execution and delivery hereof, provided that completed Annexes to this
        Agreement shall be completed and delivered to the Collateral Agent (whereupon they shall be attached to, and become a part of, this Agreement as if they had been delivered concurrently upon the execution and deliver hereof by each Assignor) as promptly as practicable, and in any event not later than the Security Requirement Date. In furtherance of the foregoing, all representations, warranties and covenants contained in this Agreement and the other Credit Documents shall be deemed
        modified to the extent necessary to effect the foregoing and no Default or Event of Default shall be deemed to occur as a result of the failure of the Assignors to deliver completed Annexes to this Agreement upon their execution and delivery hereof so long as completed Annexes are delivered to the Collateral Agent as promptly as practicable, and in any event not later than the Security Requirement Date.

        [Remainder of this page intentionally left blank; signature page follows]

         

        
            

             

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

        
            	
                         

                    	
                        LEE ENTERPRISES, INCORPORATED, as an Assignor

                         

                         

                        By:/s/ Carl G. Schmidt  

                        Title: Vice President, Chief Financial Officer

                        & Treasurer

                         

                    
	
                         

                    	
                        ACCUDATA, INC., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                    
	
                         

                    	
                        INN PARTNERS, L.C., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                    
	
                         

                    	
                        JOURNAL-STAR PRINTING CO., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    
	
                         

                    	
                        K. FALLS BASIN PUBLISHING, INC., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    

        

         

         

        
            

            Signature page to Lee Security Agreement

            
                	
                            NEWYORK 6868044 (2K)

                        	
                             

                        	
                             

                        

            

            

        

         

        
            

        

         

        
            	
                         

                    	
                        LEE CONSOLIDATED HOLDINGS CO., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    
	
                         

                    	
                        LEE PUBLICATIONS, INC., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    
	
                         

                    	
                        LEE PROCUREMENT SOLUTIONS CO., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    
	
                         

                    	
                        LINT CO., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                         

                    
	
                         

                    	
                        SIOUX CITY NEWSPAPERS, INC., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                    
	
                         

                    	
                        TARGET MARKETING SYSTEMS, INC., as an Assignor

                         

                         

                        By: /s/ C.D. Waterman III                

                        Title: Secretary

                         

                    

        

         

        

        
            

            Signature page to Lee Security Agreement

            
                	
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        Accepted and Agreed to:

        DEUTSCHE BANK TRUST COMPANY AMERICAS,

        as Collateral Agent

        
            	
                        By:/s/ Susan LeFevre

                    

        

        Title: Director

         

        
            	
                        By:/s/ Erin Morrissey

                    

        

        Title: Vice President

         

         

        
            

            Signature page to Lee Security Agreement

            
                	
                            NEWYORK 6868044 (2K)

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