Document:

LLC INTEREST PURCHASE AGREEMENT

 Exhibit 10.1 
  
 EXECUTION COPY 
  

  
 LLC INTEREST PURCHASE AGREEMENT 

 
 Dated as of May 9, 2005 
  
 Between 
  
 ENOVIA CORP., 
  
 SoftSRM, LLC, 
  
 i2 TECHNOLOGIES US, INC. 
  
 and 
  
 i2 TECHNOLOGIES, INC.

  

 LLC INTEREST PURCHASE AGREEMENT 
  
 This LLC Interest Purchase Agreement dated as of May 9, 2005 (as amended or otherwise modified, the
“Agreement”) is between ENOVIA CORP., a Delaware corporation (the “Buyer”), SoftSRM, LLC, a Delaware limited liability company (the “Company”), i2 TECHNOLOGIES US, INC., a
Nevada corporation (the “Seller”) and i2 TECHNOLOGIES, INC., a Delaware corporation (“Seller Parent”). 
  
 RECITALS 
  
 WHEREAS, Seller Parent, through the Seller, organized the Company for the purpose of developing, together with Dassault Systèmes SA, a French
corporation (“DS Parent”), Sourcing for Direct Material (“SDM”) solutions by integrating relevant parts of DS Parent’s Products Lifecycle Management (“PLM”) solutions with Seller Parent’s
Supply Relationship Management (“SRM”) solution to create SDM solutions; 
  
 WHEREAS, DS Parent, Seller and the Company have entered into a Perpetual Source Code License Agreement dated even date herewith (the “License Agreement”) and a Maintenance and Support Agreement also
dated even date herewith (the “Support Agreement”) to govern such relationship and such agreement represents a substantial portion of the value of the Company to the Buyer; 
  
 WHEREAS, the Seller is the record and beneficial owner of all of the
outstanding limited liability company interests of the Company (the “Purchased Interests”); and 
  
 WHEREAS, the Buyer desires to purchase from the Seller, and the Seller desires to sell to the Buyer, all of the Purchased Interests upon the terms and
subject to the conditions set forth in this Agreement. 
  
 NOW
THEREFORE, in consideration of the premises and mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Buyer, the Company, the Seller and Seller Parent hereby agree as follows:

  
 1. DEFINITIONS; CERTAIN RULES OF CONSTRUCTION. 
  
 As used herein, the following terms will have the following meanings:

  
 “Action” means any claim, action, cause of
action or suit (whether in contract or tort or otherwise), litigation (whether at law or in equity, whether civil or criminal), controversy, assessment, arbitration, investigation, hearing, charge, complaint, demand, notice or proceeding to, from,
by or before any Governmental Authority. 
  
 “Acquired
Companies” means, collectively, the Company and DevCo. 
  
 “Affiliate” with respect to any specified Person at any time means, (a) each Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person at such time, (b)
each Person who is at such time an officer or director of, or 

 
direct or indirect beneficial holder of at least 20% of any class of the Equity Interests of, such specified Person, (c) each Person that is managed by a
common group of executive officers and/or directors as such specified Person, (d) the Members of the Immediate Family (i) of each officer, director or holder described in clause (b) and (ii) if such specified Person is an individual, of such
specified Person and (e) each Person of which such specified Person or an Affiliate (as defined in clauses (a) through (d)) thereof will, directly or indirectly, beneficially own at least 20% of any class of Equity Interests at such time.

  
 “Ancillary Agreements” means the License
Agreement, the Support Agreement, the Contractor Agreements, and the Intercompany Agreement. 
  
 “Budget” means the expense budget agreed to between the parties and attached hereto as Schedule 1.1 with respect to the organization of the Company and its operating expenses prior to the
Closing Date. 
  
 “Business” means the design,
development, marketing and sale of integrated SRM (Supplier Relationship Management) and PLM (Product Lifecycle Management) software applications. 
  
 “Business Day” means any weekday other than a weekday on which banks in Dallas, Texas, Paris, France, or Bangalore, India are authorized
or required to be closed. 
  
 “Buyer Expenses”
means the expenses with respect to the organization of the Company and its operation prior to the Closing Date actually incurred and documented by DS Parent and its Subsidiaries in accordance with the Budget but shall not include any such expenses
that exceed the amounts set forth in the Budget or any such expenses invoiced to and paid by an Acquired Company. 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
  
 “Company Technology” means any and all inventions, works, discoveries, innovations, know-how, information
(including ideas, research and development, know-how, formulas, compositions, processes and techniques, data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, business and marketing plans and proposals,
documentation and manuals), computer software, firmware, computer hardware, integrated circuits and integrated circuit masks, electronic, electrical and mechanical equipment and all other forms of technology, including improvements, modifications,
works in process, derivatives or changes, whether tangible or intangible, embodied in any form, whether or not protectible or protected by patent, copyright, mask work right, trade secret law or otherwise, and all documents and other materials
recording any of the foregoing used or useful in connection with the Business and any and all Intellectual Property in any and all such technology. 
  
 “Compensation” means, with respect to any Person, all salaries, compensation, remuneration, bonuses or benefits of any kind or character
whatever (including issuances or grants of Equity Interests), made directly or indirectly by an Acquired Company to such Person or Affiliates of such Person. 
  

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 “Contemplated Transactions” means, collectively, the transactions contemplated by this
Agreement, including (a) the sale and purchase of the Purchased Interests and (b) the execution, delivery and performance of the Ancillary Agreements. 
  
 “Contractor Agreements” means the form of Vendor Services Agreement and attached Statement of Work between i2 India and Newco and the
form of Vendor Services Agreement and attached Statement of Work between the Seller and Newco substantially in the forms of Exhibits 1.1.1 (a) and 1.1.1(b) with the individuals identified on Schedule 3.18(a) as being contracted by i2 India or
the Seller, as the case may be, to Newco. 
  
 “Contractual
Obligation” means, with respect to any Person, any contract, agreement, deed, mortgage, lease, license, commitment, promise, undertaking, arrangement or understanding, whether written or oral and whether express or implied, or other
document or instrument (including any document or instrument evidencing or otherwise relating to any Debt,) to which or by which such Person is a party or otherwise subject or bound or to which or by which any property, business, operation or
right of such Person is subject or bound. 
  
 “Debt” means, with respect to any Person, all obligations (including all obligations in respect of principal, accrued interest, penalties, fees and premiums) of such Person (a) for borrowed money (including overdraft
facilities), (b) evidenced by notes, bonds, debentures or similar Contractual Obligations, (c) for the deferred purchase price of property, goods or services (other than trade payables or accruals incurred in the Ordinary Course of Business), (d)
under capital leases (in accordance with GAAP), (e) in respect of letters of credit and bankers’ acceptances, (f) for Contractual Obligations relating to interest rate protection, swap agreements and collar agreements and (g) in the nature of
Guarantees of the obligations described in clauses (a) through (f) above of any other Person. 
  
 “DevCo” means SoftSRM Development India Private Ltd., an Indian corporation and a wholly-owned Subsidiary of the Company organized under the laws of the State of Karnataka. 
  
 “Encumbrance” means any charge, claim, community or other
marital property interest, condition, equitable interest, lien, license, option, pledge, security interest, mortgage, right of way, easement, encroachment, servitude, right of first offer or first refusal, buy/sell agreement and any other
restriction or covenant with respect to, or condition governing the use, construction, voting (in the case of any security or equity interest), transfer, receipt of income or exercise of any other attribute of ownership. 
  
 “Enforceable” means, with respect to any Contractual
Obligation stated to be Enforceable by or against any Person, that such Contractual Obligation is a legal, valid and binding obligation of such Person enforceable by or against such Person in accordance with its terms, except to the extent that
enforcement of the rights and remedies created thereby is subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application affecting the rights and remedies of creditors and to general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at law). 
  
 “Equity Interests” means (a) any capital stock, share, partnership or membership interest, unit of participation or other similar interest (however designated) in any Person and (b) any option,

  

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warrant, purchase right, conversion right, exchange rights or other Contractual Obligation which would entitle any Person to acquire any such interest in
such Person or otherwise entitle any Person to share in the equity, profit, earnings, losses or gains of such Person (including stock appreciation, phantom stock, profit participation or other similar rights). 
  
 “ERISA” means the federal Employee Retirement Income
Security Act of 1974. 
  
 “GAAP” means generally
accepted accounting principles in the United States as in effect from time to time. 
  
 “Government Order” means any order, writ, judgment, injunction, decree, stipulation, ruling, determination or award entered by or with any Governmental Authority. 
  
 “Governmental Authority” means any United States federal,
state or local or any foreign government, or political subdivision thereof, or any multinational organization or authority or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any arbitrator or arbitral body. 
  
 “Guarantee” means, with respect to any Person, (a) any guarantee of the payment or performance of, or any contingent obligation in
respect of, any Debt or other Liability of any other Person, (b) any other arrangement whereby credit is extended to any obligor (other than such Person) on the basis of any promise or undertaking of such Person (i) to pay the Debt or other
Liability of such obligor, (ii) to purchase any obligation owed by such obligor, (iii) to purchase or lease assets under circumstances that are designed to enable such obligor to discharge one or more of its obligations or (iv) to maintain the
capital, working capital, solvency or general financial condition of such obligor and (c) any liability as a general partner of a partnership or as a venturer in a joint venture in respect of Debt or other obligations of such partnership or venture.

  
 “i2 India” means i2 Technologies India
Private Ltd., an Indian corporation and an indirect wholly-owned subsidiary of Seller Parent organized under the laws of the State of Karnataka. 
  
 “Indemnity Claim” means a claim for indemnity under Section 10.1 or 10.2, as the case may be. 
  
 “Indemnified Party” means, with respect to any Indemnity
Claim, the party asserting such claim under Section 10.1 or 10.2, as the case may be. 
  
 “Indemnifying Party” means, with respect to any Indemnity Claims, the Buyer Indemnified Person or the Seller Indemnified Person under Section 10.1 or 10.2, as the case may be, against whom such claim
is asserted. 
  

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 “Intellectual Property” means the entire right, title and interest in and to all
proprietary rights of every kind and nature, including all rights and interests pertaining to or deriving from: 
  
 (a) patents, copyrights, mask work rights, technology, know-how, processes, trade secrets, algorithms, inventions, works, proprietary
data, databases, formulae, research and development data and computer software or firmware; 
  
 (b) trademarks, trade names, service marks, service names, brands, trade dress and logos, and the goodwill and activities associated
therewith; 
  
 (c) domain names, rights of
privacy and publicity, moral rights, and proprietary rights of any kind or nature, however denominated, throughout the world in all media now known or hereafter created; 
  
 (d) any and all registrations, applications, recordings, licenses, common-law rights and Contractual
Obligations relating to any of the foregoing; and 
  
 (e) all Actions and rights to sue at law or in equity for any past or future infringement or other impairment of any of the foregoing, including the right to receive all proceeds and damages therefrom, and all rights to obtain renewals,
continuations, divisions or other extensions of legal protections pertaining thereto. 
  
 “Intercompany Agreement” means the Intercompany Agreement between Newco and DevCo substantially in the form of Exhibit 1.1.1(c). 
  
 “Interests” means the limited liability company membership interests of the Company. 
  
 “Liability” means, with respect to any Person, any liability
or obligation of such Person whether known or unknown, whether asserted or unasserted, whether determined, determinable or otherwise, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, whether incurred
or consequential, whether due or to become due and whether or not required under GAAP to be accrued on the financial statements of such Person. 
  
 “Licenses” means any license, sublicense or other Contractual Obligation pursuant to which an Acquired Company uses Company Technology
that is owned by any Person besides an Acquired Company. 
  
 “Material Adverse Effect” means any change in, or effect on, the Business, operations, Assets, prospects or condition (financial or otherwise) of the Acquired Companies which, when considered either individually or in the
aggregate together with all other adverse changes or effects with respect to which such phrase is used in this Agreement, is, or is reasonably likely to be, materially adverse to the Business, operations, Assets, prospects or condition (financial or
otherwise) of the Acquired Companies, taken as a whole, including, without limitation, any such change in or effect on Seller or Seller Parent. 
  
 “Organizational Documents” means, with respect to any Person (other than an individual), (a) the certificate or articles of incorporation
or organization and any joint venture, limited liability company, operating or partnership agreement and other similar documents adopted or 

  

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filed in connection with the creation, formation or organization of such Person and (b) all by-laws, voting agreements and similar documents, instruments or
agreements relating to the organization or governance of such Person, in each case, as amended or supplemented. 
  
 “Permits” means, with respect to any Person, any license, franchise, permit, consent, approval, right, privilege, certificate or other
similar authorization issued by, or otherwise granted by, any Governmental Authority or any other Person to which or by which such Person is subject or bound or to which or by which any property, business, operation or right of such Person is
subject or bound. 
  
 “Permitted Encumbrance”
means (a) statutory Liens for current Taxes, special assessments or other governmental charges not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which appropriate reserves
have been established in accordance with GAAP, (b) mechanics’, materialmen’s, carriers’, workers’, repairers’ and similar statutory liens arising or incurred in the ordinary course of business which liens have not had and
are not reasonably likely to have a Material Adverse Effect, (c) deposits or pledges made in connection with, or to secure payment of, worker’s compensation, unemployment insurance, old age pension programs mandated under applicable laws, rules
or regulations or other social security and (d) restrictions on the transfer of securities arising under federal and state securities laws. 
  
 “Person” means any individual or corporation, association, partnership, limited liability company, joint venture, joint stock or other
company, business trust, trust, organization, Governmental Authority or other entity of any kind. 
  
 “Representative” means, with respect to any Person, any director, officer, employee, agent, consultant, advisor, or other representative
of such Person, including legal counsel, accountants, and financial advisors. 
  
 “Seller Expenses” means the expenses with respect to the organization of the Company and its operation prior to the Closing Date actually incurred and documented by Seller Parent and its Subsidiaries
(including the Company and including any Buyer Expense invoiced to and paid by any Acquired Company) in accordance with the Budget (from which certain amounts as indicated in the Budget shall be deducted), it being understood that Seller Expenses
shall not include any such expenses that exceed the amounts set forth in the Current Expenditure Plan table in the Budget. 
  
 “Seller’s Knowledge” means the actual knowledge, after reasonable investigation, of the Seller, the officers of the Acquired
Companies and such other employees of the Acquired Companies who would be reasonably expected to have knowledge of the matter in question. 
  
 “Subsidiary” means, with respect to any specified person, any other Person of which such specified Person will, at the time, directly or
indirectly through one or more Subsidiaries, (a) own at least 50% of the outstanding capital stock (or other shares of beneficial interest) entitled to vote generally, (b) hold at least 50% of the partnership, limited liability company, joint
venture or similar interests or (c) be a general partner, managing member or joint venturer. 
  

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 “Tax” or “Taxes” means (a) any and all federal, state, local, or
foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar, including
FICA), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind or any charge of any kind in the nature of (or similar to) taxes
whatsoever, including any interest, penalty, or addition thereto, whether disputed or not and (b) any liability for the payment of any amounts of the type described in clause (a) of this definition as a result of being a member of an affiliated,
consolidated, combined or unitary group for any period, as a result of any tax sharing or tax allocation agreement, arrangement or understanding, or as a result of being liable for another person’s taxes as a transferee or successor, by
contract or otherwise. 
  
 “Tax Return” means any
return, declaration, report, claim for refund or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 “Treasury Regulations” means the regulations promulgated under the Code. 
  
 Except as otherwise explicitly specified to the contrary,
(a) references to a Section, Article, Exhibit or Schedule means a Section or Article of, or Schedule or Exhibit to this Agreement, unless another agreement is specified, (b) the word “including” will be construed as “including without
limitation,” (c) references to a particular statute or regulation include all rules and regulations thereunder and any predecessor or successor statute, rules or regulation, in each case as amended or otherwise modified from time to time, (d)
words in the singular or plural form include the plural and singular form, respectively and (e) references to a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement. 
  
 Each of the following terms is defined in the Section of
this Agreement set forth opposite such term: 
  

			
	 Term

	  	 Section

	 Assets
	  	3.8
	 Buyer Indemnified Person
	  	10.1
	 Closing
	  	2.2
	 Closing Date
	  	2.2
	 Company Plan
	  	3.14.2
	 Current Liability Policies
	  	3.21
	 Disclosed Contract
	  	3.15
	 Documentation
	  	2.4
	 Drop Dead Date
	  	9.1
	 Employee
	  	3.18
	 Employee Plan
	  	3.14.1
	 Independent Expert
	  	2.4
	 Liability Policies
	  	3.21
	 License Agreement
	  	Recitals
	 Losses
	  	10.1
	 Notice of Objection
	  	2.4
	 Purchased Interests
	  	Recitals
	 Purchase Price
	  	2.1.1
	 Real Property
	  	3.9.1
	 Seller Indemnified Person
	  	10.2
	 SRM
	  	Recitals
	 Statement
	  	2.4
	 Support Agreement
	  	Recitals
	 Termination Date
	  	9.1
	 Third Party Claim
	  	10.4.1

  

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 2. PURCHASE AND SALE OF PURCHASED INTERESTS. 
  
 2.1. Purchase and Sale of Purchased Interests. At the
Closing, subject to the terms and conditions of this Agreement, the Seller will sell, transfer and deliver to the Buyer, and the Buyer will purchase from the Seller, the Purchased Interests. 
  
 2.1.1 Purchase Price. The aggregate consideration for
all of the Purchased Interests in the Company will be US $10,000,000 plus an amount equal to all Seller Expenses (the “Purchase Price”). The Purchase Price will be subject to adjustment in accordance with Section 2.4. 
  
 2.2. The Closing. The purchase and sale of the
Purchased Interests (the “Closing”) will take place at the offices of Ropes & Gray LLP at 45 Rockefeller Plaza, New York, New York on June 13, 2005 or at such other place and on such other date as the Buyer and the Seller may
agree in writing (the “Closing Date”), in each case, subject to the satisfaction of the conditions set forth in Sections 7 and 8 which can be satisfied prior to closing. Except as otherwise provided in Section 9, the failure to
consummate the purchase and sale provided for in this Agreement on the date and time and at the place specified herein will not relieve any party to this Agreement of any obligation under this Agreement. 
  
 2.3. Closing Deliveries. At the Closing, the Buyer
will deliver to the Seller cash in the amount of US $10,000,000 by wire transfer of immediately available federal funds to the accounts designated in writing not fewer than two Business Days prior to the scheduled Closing Date. 
  
 2.4. Post-Closing Adjustment. (a) Within ten (10)
days after the Closing Date, the Seller shall provide to the Buyer, a statement as to the computation of the Seller Expenses (the “Statement”) together with documentation (the “Documentation”) as to the Seller
Expenses in accordance with Schedule 1.1. Unless the Buyer notifies the Seller in writing within thirty (30) days after the Buyer’s receipt of the Documentation of any objections to the computation of the Seller Expenses (the
“Notice of Objection”), the Seller’s computation shall become final and binding. 
  
 (b) During such 30-day period, Buyer and its representatives shall be permitted to review the working papers of the Seller and the
Seller’s accountants relating to the Statement, and the Seller shall provide the Buyer and its representatives any 

  

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information reasonably requested and shall provide them access at all reasonable times to the Seller’s personnel, properties, books and records relating
to the Business for such purpose. Any Notice of Objection shall specify in reasonable detail the basis for the objections set forth therein. 
  
 (c) If the Buyer provides the Notice of Objection to the Seller within such 30-day period, the Buyer and the Seller shall, during the
30-day period following the Buyer’s receipt of the Notice of Objection, attempt in good faith to resolve the Buyer’s objections. During such 30-day period, the Seller and its representatives shall be permitted to review the working papers
of the Buyer and the Buyer’s accountants relating to the Notice of Objection and the basis therefor. If the Buyer and the Seller are unable to resolve all such objections within such 30-day period, the matters remaining in dispute shall be
submitted to Citrin Cooperman & Co., LLP (such selected firm being the “Independent Expert”). The parties shall instruct the Independent Expert to render its written decision as promptly as practicable but in no event later than
60 days after its selection. The resolution of disputed items by the Independent Expert shall be final and binding, and the determination of the Independent Expert shall constitute an arbitral award that is final, binding and non-appealable and upon
which a judgment may be entered by a court having jurisdiction thereover. The fees and expenses of the Independent Expert shall be allocated equally between the Buyer and the Seller. 
  
 (d) Within 10 days after the Statement has become final and binding in accordance with this Section 2.4, the
Buyer shall pay to the Seller an amount in cash equal to the Seller Expenses. Any such payment hereunder shall be made by wire transfer of immediately available funds to an account designated in writing by the Seller. 
  
 2.5. Allocation of Purchase Price. The Purchase Price
shall be allocated among the Assets of the Company in a manner to be determined by the Buyer and consented to by the Seller (which consent shall not be unreasonably withheld) on or prior to the Closing Date. Each of the Seller and the Buyer agrees
to adhere to such allocation for all Tax purposes. The portion of the Purchase Price allocated to the Licenses shall be treated by the Seller as royalty income and by the Buyer as deductible royalty payments in respect of such Licenses for all Tax
purposes. Each of Seller and Buyer shall prepare and file, or cause to be prepared and filed, all Tax Returns (including any related information statements and documents) with all appropriate taxing authorities on a basis consistent with this
Section 2.5. 
  

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 3. REPRESENTATIONS AND WARRANTIES REGARDING THE ACQUIRED COMPANIES. 
  
 In order to induce the Buyer to enter into and perform this Agreement and to
consummate the Contemplated Transactions, the Company and the Seller and Seller Parent hereby jointly and severally represent and warrant to the Buyer as follows: 
  
 3.1. Organization; No Activities. 
  
 3.1.1 Organization. Schedule 3.1.1 sets forth for each Acquired Company its name, jurisdiction
and date of organization. Each Acquired Company is (or, in the case of DevCo, prior to the Closing Date will be) (a) duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and (b) duly qualified
to do business and in good standing in each jurisdiction in which it owns or leases Real Property and in each other jurisdiction in which the failure to so qualify has not had, and is not reasonably likely to have, a Material Adverse Effect. The
Seller has (or, in the case of DevCo, prior to the Closing Date will have) delivered to the Buyer true, accurate and complete copies of (x) the Organizational Documents of each Acquired Company and (y) the minute books of each Acquired Company which
contain records of all meetings held of, and other corporate actions taken by, its membership interestholders or stockholders, as the case may be, Board of Directors and any committees appointed by its Board of Directors. 
  
 3.1.2 No Activities. Prior to the date of this
Agreement, neither of the Acquired Companies has engaged in any activities other than those related to its organization. 
  
 3.2. Power and Authorization. 
  
 3.2.1 Contemplated Transaction. The execution, delivery and performance by each Acquired Company of this Agreement and each
Ancillary Agreement to which it is (or will be) a party and the consummation of the Contemplated Transactions are within the power and authority of each Acquired Company and have been duly authorized by all necessary action on the part of each
Acquired Company. This Agreement and each Ancillary Agreement to which each Acquired Company is (or will be) a party (a) has been (or, in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) duly executed and
delivered by each Acquired Company and (b) is (or, in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a legal, valid and binding obligation of such Acquired Company, enforceable against each such Acquired
Company in accordance with its terms. 
  
 3.2.2
Capital Contribution. The Seller, in granting the license under Section 5.1.1(a) of the License Agreement made such grant as a contribution to the capital of Newco and properly reflected such contribution to capital in the records of the
Seller and Newco. 
  
 3.2.3 Conduct of
Business. Each Acquired Company has the full power and authority necessary to own and use its Assets and carry on its business. 
  
 3.3. Authorization of Governmental Authorities. Except as disclosed on Schedule 3.3, no action by (including any
authorization, consent or approval), or in respect of, or filing with, any Governmental Authority is required for, or in connection with, the valid and lawful (a) authorization, execution, delivery and performance by any Acquired Company of this
Agreement and each Ancillary Agreement to which it is (or will be) a party or (b) the consummation of the Contemplated Transactions by each Acquired Company. 
  

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 3.4. Noncontravention. Neither the execution, delivery and performance by an
Acquired Company or the Seller of this Agreement or any Ancillary Agreement to which it is (or will be) a party nor the consummation of the Contemplated Transactions will: (a) assuming the taking of any action by (including any authorization,
consent or approval), or in respect of, or any filing with, any Governmental Authority, in each case, as disclosed on Schedule 3.4, violate any law, rule or regulation applicable to an Acquired Company; (b) result in a breach or violation of,
or default under, any Contractual Obligation of any Acquired Company; (c) require any action by (including any authorization, consent or approval) or in respect of (including notice to), any Person under any Contractual Obligation of any Acquired
Company; (d) result in the creation or imposition of an Encumbrance upon, or the forfeiture of, any Asset; or (e) result in a breach or violation of, or default under, the Organizational Documents of any Acquired Company. 
  
 3.5. Capitalization of the Acquired Companies.

  
 3.5.1 Outstanding Capital Stock. As of
the date of this Agreement (or, in the case of DevCo, as of the Closing Date), the entire authorized capital of each Acquired Company is as set forth on Schedule 3.5. All of the outstanding membership interests or shares of capital stock, as
the case may be, of each Acquired Company have been (or, in the case of DevCo, as of the Closing Date will have been) duly authorized, validly issued, and are or will be, as the case may be, fully paid and non-assessable. 
  
 3.5.2 Ownership. The Company holds no membership
interests in its treasury. All of the outstanding Equity Interests of the Company and DevCo, respectively, are held of record and beneficially owned by the Seller and the Company, respectively. The Seller has delivered or made available to the Buyer
true, accurate and complete copies of the stock ledger or equivalent of each Acquired Company which reflects all issuances, transfers, repurchases and cancellations of shares of its membership interests or capital stock, as the case may be.

  
 3.5.3 Subsidiaries. On the Closing
Date, the Company will have no Subsidiaries other than DevCo. All of the outstanding Equity Interests in DevCo on the Closing Date are set forth on Schedule 3.5 and will, on the Closing Date, be validly issued, fully paid and non-assessable.
On the Closing Date, the Company will be beneficial owner of all of the Equity Interests in DevCo and hold such Equity Interests free and clear of all Encumbrances except as are imposed by applicable securities laws. Neither Acquired Company
controls, directly or indirectly, or owns any Equity Interest in any other Person (except for the Company’s ownership interest in DevCo). 
  
 3.5.4 Encumbrances, etc. (a) There are no preemptive rights or other similar rights in respect of any Equity Interests in either
Acquired Company, (b) except as imposed by applicable securities laws, there are no Encumbrances on, or other contractual obligations relating to, the ownership, transfer or voting of any Equity Interests in either Acquired Company, or otherwise
affecting the rights of any holder of the Equity Interests in either Acquired Company, and (c) except for the Contemplated Transactions, there is no Contractual Obligation, or provision in the Organizational Documents of either Acquired Company
which obligates it to purchase, redeem or 

  

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otherwise acquire, or make any payment (including any dividend or distribution) in respect of, any Equity Interests in either Acquired Company. 

 
 3.6. Absence of Liabilities. Other than as
provided in the Budget, neither Acquired Company has any Liabilities. 
  
 3.7. Absence of Certain Developments. Since the Company’s and DevCo’s organization, the Business has been conducted in the ordinary course of business and, except for the matters disclosed Schedule
3.7 (which matters have not had, and are not reasonably likely to have, a Material Adverse Effect): 
  
 (a) neither Acquired Company has (i) amended its Organizational Documents, (ii) amended any term of its outstanding Equity Interests or
other securities or (iii) issued, sold, granted, or otherwise disposed of, its Equity Interests or other securities; 
  
 (b) neither Acquired Company has permitted any of its Assets to become subject to an Encumbrance other than a Permitted Encumbrance;

  
 (c) neither Acquired Company has (i) made any
declaration, setting aside or payment of any dividend or other distribution with respect to, or any repurchase, redemption or other acquisition of, any of its capital stock or other Equity Interests or (ii) entered into, or performed, any
transaction with, or for the benefit of, the Seller or any Affiliate of any Seller (other than payments made to officers, directors and employees in the ordinary course of business); 
  
 (d) there has been no material loss, destruction, damage or eminent domain taking (in each case, whether or
not insured) affecting the Business or any material Asset; 
  
 (e) neither Acquired Company has adopted any Employee Plan which provides for any non-statutory payments or benefits; 
  
 (f) neither Acquired Company has entered into any Contractual Obligation to do any of the things referred to elsewhere in this Section
3.7; and 
  
 (g) neither event or circumstance
has occurred which has had, or is reasonably likely to have, a Material Adverse Effect. 
  
 3.8. Ownership of Assets. Each Acquired Company has good and marketable title to, or, in the case of property held under a
Contractual Obligation, an Enforceable leasehold interest in, or right to use, all of its properties, rights and assets, whether real or personal and whether tangible or intangible which consist solely of the assets set forth on Schedule 3.8
(collectively, the “Assets”). Except as disclosed on Schedule 3.8, none of the Assets is subject to any Encumbrance other than Permitted Encumbrances. 
  
 3.9. Real Property. 
  
 3.9.1 Neither of the Acquired Companies owns or leases any real property. 
  

 -12- 

 3.10. [RESERVED] 
  
 3.11. Intellectual Property. 
  
 3.11.1 The Acquired Companies are the sole owners of or have the right to use all Company Technology, and
none of the Company Technology is in the possession, custody, or control of any Person other than the Acquired Companies. 
  
 3.11.2 (a) Neither the Seller nor either of the Acquired Companies (i) has, directly or indirectly, interfered with, infringed upon,
misappropriated, or otherwise come into conflict with any Intellectual Property rights of any third party or (ii) has received any charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, or
violation (including any claim that a Person must license or refrain from using any Intellectual Property rights of any third party in connection with the conduct of the Business or the use of the Company Technology) and (b) neither the manufacture,
use, sale or distribution of any of the Company Technology has directly or indirectly interfered with, infringed upon or otherwise come into conflict with any Intellectual Property rights of any third party. To Seller’s knowledge, no third
party has interfered with, infringed upon, misappropriated, or otherwise come into conflict with any Company Technology. 
  
 3.11.3 The Seller hereby repeats for the benefit of the Buyer as if set forth herein each of the representations and warranties set forth
in Sections 12.1A of the License Agreement and Section 13A of the Support Agreement. 
  
 3.11.4 Schedule 3.11.4 identifies each License. Except as disclosed on Schedule 3.11, there are no royalties due to any
third parties for the use of the Company Technology. 
  
 3.11.5 Except as disclosed on Schedule 3.11.5, none of the Company Technology constitutes or is dependent on or incorporates any open source computer code, and none of the Company Technology is subject to any License or other
Contractual Obligation that would require the Company to divulge to any Person any source code or trade secret that is part of the Company Technology. 
  
 3.11.6 Except as disclosed on Schedule 3.11.6, each item of Intellectual Property owned or used by each Acquired Company
immediately before the Closing Date will be owned or available for use by the Acquired Company on identical terms and conditions immediately subsequent to the Closing Date and such ownership or right to use will remain in effect without adverse
change after the Closing Date. Each Acquired Company has taken all necessary action to maintain and protect each item of Intellectual Property that it owns or uses. 
  
 3.11.7 The binding Settlement and License Term Sheet dated March 29, 2005, between Sky Technologies, Ltd and
i2 Inc. and any binding agreement that implements such term sheet does not and will not adversely affect the Seller’s ability to perform under the License Agreement or the Support Agreement. 
  

 -13- 

 3.12. Legal Compliance; Illegal Payments; Permits. 
  
 3.12.1 Compliance. Neither Acquired Company is in
breach or violation of, or default under (a) its Organizational Documents nor, to the Seller’s Knowledge, is there a basis which could constitute such a breach, violation or default; or (b) any material law, rule or regulation applicable to it
or the Business nor, to Seller’s Knowledge, is there a basis which could constitute such a breach, violation or default, except for breaches, violation or defaults which have not had, and are not reasonably likely to have, a Material Adverse
Effect. 
  
 3.12.2 Illegal Payments, etc.
In the conduct of the Business, no Acquired Company nor any of its directors, officers, employees, sub-contractors or agents, has (a) directly or indirectly, given, or agreed to give, any illegal gift, contribution, payment or similar benefit to any
supplier, customer, governmental official or employee or other Person who was, is or may be in a position to help or hinder an Acquired Company (or assist in connection with any actual or proposed transaction) or made, or agreed to make, any illegal
contribution, or reimbursed any illegal political gift or contribution made by any other Person, to any candidate for federal, state, local or foreign public office or (b) established or maintained any unrecorded fund or asset or made any false
entries on any books or records for any purpose. 
  
 3.12.3 Permits. Each Acquired Company has been (or, in the case of DevCo, prior to the Closing, will have been) duly granted all Permits under all laws, rules or regulations necessary for the conduct of the Business. Schedule
3.12.3 describes each Permit affecting, or relating to, the Assets or the Business together with the Governmental Authority or other Person responsible for issuing such Permit. The Permits are valid and in full force and effect, no Acquired
Company is in breach or violation of, or default under, any such Permit, and, to the Seller’s Knowledge, no basis exists which, with notice or lapse of time or both, would constitute any such breach, violation nor default and the Permits will
continue to be valid and in full force and effect, on identical terms following the consummation of the Contemplated Transactions. 
  
 3.13. Tax Matters. 
  
 3.13.1 Each Acquired Company has timely filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it
in accordance with all Legal Requirements. All such Tax Returns were true, correct and complete in all respects. All Taxes owed by each Acquired Company (whether or not shown on any Tax Return) have been timely paid in full. There are no
Encumbrances with respect to Taxes upon any Asset other than Permitted Encumbrances for current Taxes not yet due and payable. 
  
 3.13.2 Each Acquired Company has deducted, withheld and timely paid to the appropriate Governmental Authority all Taxes required to be
deducted, withheld or paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party, and each Acquired Company has complied with all reporting and recordkeeping requirements.

  

 -14- 

 3.13.3 No Acquired Company is a party to any Contractual Obligation relating to Tax
sharing or Tax allocation. No Acquired Company has any Liability for the Taxes of any Person (other than an Acquired Company) under Treasury Regulation 1.1502-6 (or any similar provision of state, local or foreign law), as a transferee or successor,
by contract or otherwise. 
  
 3.13.4 No Acquired
Company owns any property of a character, the indirect transfer of which, pursuant to this Agreement, would give rise to any documentary, stamp, or other transfer Tax. 
  
 3.13.5 The Company has, at all times since its organization, been disregarded as an entity separate from its
owner for U.S. federal, state and local income tax purposes. 
  
 3.14. Employee Benefit Plans. 
  
 3.14.1 For purposes of this Agreement, “Employee Plan” means any plan, program, agreement, policy or arrangement, whether or not reduced to writing, and whether covering a single individual or a group
of individuals, that is (a) a welfare plan within the meaning of Section 3(1) of ERISA, (b) a pension benefit plan within the meaning of Section 3(2) of ERISA, (c) a stock bonus, stock purchase, stock option, restricted stock, stock appreciation
right or similar equity-based plan or (d) any other deferred-compensation, retirement, welfare-benefit, bonus, incentive or fringe-benefit plan, program or arrangement. 
  
 3.14.2 Schedule 3.14 lists all Employee Plans as to which an Acquired Company sponsors, maintains,
contributes or is obligated to contribute, or under which an Acquired Company has or may have any Liability, or which benefits any current or former employee, director, consultant or independent contractor of an Acquired Company or the beneficiaries
or dependents of any such Person (each a “Company Plan”). With respect to each Company Plan, the Seller has delivered to the Buyer true, accurate and complete copies of each of the following: (a) if the plan has been reduced to
writing, the plan document together with all amendments thereto, (b) if the plan has not been reduced to writing, a written summary of all material plan terms, (c) copies of any summary plan descriptions, employee handbooks or similar employee
communications. 
  
 3.14.3 No Acquired Company or
any other Person that would be considered a single employer with an Acquired Company under the Code or ERISA has ever maintained a plan subject to Title IV of ERISA or Code Section 412, including any “multiemployer plan” as defined in
Section 4001(a)(8) of ERISA. Except as required under Section 601 et seq. of ERISA, no Company Plan provides severance or salary continuation benefits or benefits or coverage in the nature of health, life or disability insurance following retirement
or other termination of employment. Nothing has occurred with respect to any Company Plan that has subjected or could subject an Acquired Company to a penalty under ERISA or other Liability (other than a Liability for contributions, premiums or
benefits payable in the normal course and in accordance with the terms of the Company Plan) or to an excise tax under the Code, or that has subjected 

  

 -15- 

 
or could subject any participant in, or beneficiary of, a Company Plan to a tax under Chapter 43 of the Code. 
  
 3.14.4 None of the Company Plans is sponsored by, or
maintained solely by, the Acquired Companies or any of them, and upon consummation of the Contemplated Transactions will cease to be liable for any contributions, premiums or benefits under, and except to the extent required by Section 601 et seq.
of ERISA all employees of the Acquired Companies will cease to participate actively in and will cease accruing additional benefits under, the Company Plans. 
  
 3.15. Contracts. Except for the Ancillary Agreements and as disclosed on Schedule 3.15, neither Acquired Company is bound by
or a party to any Contractual Obligation. The Seller has delivered or made available to the Buyer true, accurate and complete copies of each written Contractual Obligation listed on Schedule 3.15, in each case, as amended or otherwise
modified and in effect. 
  
 3.15.1
Enforceability, etc. To the Seller’s Knowledge, each Contractual Obligation required to be disclosed on Schedule 3.14 (Employee Plans), Schedule 3.15 (Contracts), or Schedule 3.21 (Insurance) (each, a
“Disclosed Contract”) is Enforceable against each party to such Contractual Obligation (other than DS Parent or any of its Subsidiaries as to which the Seller and Seller Parent make no representation or warranty), and is in full
force and effect, and, subject to obtaining any necessary consents disclosed in Schedule 3.3, will continue to be so Enforceable and in full force and effect on identical terms following the consummation of the Contemplated Transactions.

  
 3.15.2 Breach, etc. No Acquired
Company or, to the Seller’s Knowledge, any other party to any Contractual Obligation (other than DS Parent or any of its Subsidiaries as to which the Seller and Seller Parent make no representation or warranty) is in breach or violation of, or
default under, or has repudiated any provision of, any Contractual Obligation. 
  
 3.16. Affiliate Transactions. Neither the Seller nor any of its Affiliates is an officer, director, employee, consultant,
competitor, creditor, debtor, customer, distributor, supplier or vendor of, or is a party to any Contractual Obligation with, an Acquired Company. Neither the Seller nor any of its Affiliates owns any Asset used in, or necessary to, the Business.

  
 3.17. Suppliers. Schedule 3.17
sets forth a complete and accurate list of all suppliers of materials, products or services to the Acquired Companies. The relationships of the Acquired Companies with its suppliers are good commercial working relationships and none of such
suppliers has canceled, terminated or otherwise materially altered or notified an Acquired Company of any intention to do any of the foregoing or otherwise threatened in writing to cancel, terminate or materially alter its relationship with an
Acquired Company. 
  
 3.18. Employees.

  
 (a) Schedule 3.18(a) (which was
previously delivered to the Buyer) sets forth a complete list of each individual that is, on the date hereof, or is expected, at the Closing Date, to be employed by Newco or DevCo either on a full-time, part-time, or 

  

 -16- 

 
contractor basis (each, an “Employee”), describes the nature of such relationship and sets forth the annual Compensation owed to such
Employee. Schedule 3.18(a) shall identify groups of Employees as follows: employees of i2 India who shall be contracted to one of the Acquired Companies; employees of i2 India who shall be employed by DevCo and based in India; employees of i2 India
who shall be employed by DevCo and based in the United States; and employees of the Seller who shall be contracted to Newco and based in the United States. 
  
 (b) Schedule 3.18(b) shall include the execution copy of each Contractor Agreement entered into prior to the date hereof and shall
be updated prior to the Closing with any Contractor Agreement entered into prior thereto.  
  
 (c) There are no labor troubles (including any work slowdown, lockout, stoppage, picketing or strike) pending, or to the Seller’s
Knowledge, threatened between an Acquired Company, on the one hand, and its employees, on the other hand, and there have been no such troubles since the Acquired Companies were organized. No employee of an Acquired Company is represented by a labor
union, neither Acquired Company is a party to, or otherwise subject to, any collective bargaining agreement or other labor union contract, no petition has been filed or proceedings instituted by an employee or group of employees of either Acquired
Company with any labor relations board seeking recognition of a bargaining representative and there is no organizational effort currently being made or threatened by, or on behalf of, any labor union to organize employees of either Acquired Company
and no demand for recognition of employees of an Acquired Company has been made by, or on behalf of, any labor union. No executive officer’s or other key employee’s employment with the Acquired Companies has been terminated for any reason
nor has any such officer or employee notified the Company of his or her intention to resign or retire. 
  
 (d) Each of the Acquired Companies is in compliance in form and operation with all applicable labor laws. Each of the Acquired Companies
and its contractors is in full and formal compliance with all laws applicable to deployment and usage of contract labor. All contributions (including all employer contributions and employee salary reduction contributions) that are due under any
applicable labor laws have been paid and all contributions for any period ending on or before the Closing Date that are not yet due will be paid on a timely basis. No employee of DevCo has been entitled to receive workmen’s compensation under
the Workmen’s Compensation Act, 1923 or to claim benefits under the Employees State Insurance Act, 1948. There are no current plans or obligations to pay any of the Acquired Companies’ employees for loss of office or redundancy. There are
no pending claims for back wages, dues or payments in any other form demanded by any of the Acquired Companies’ past or present employees or workmen. There are no labor or employment related disputes pending against either Acquired Company
before any labor courts, arbitral tribunals, courts, or other judicial or quasi-judicial authority. There has not been any instance of disciplinary proceedings or claims taken out against any worker or employee of either Acquired Company and there
is no outstanding dispute or claim against either Acquired Company in this regard. Neither of the Acquired Companies is providing 

  

 -17- 

 
non-statutory pension or superannuation schemes to any of its employees or workmen. 
  
 3.19. Litigation; Governmental Orders. 
  
 3.19.1 Litigation. There is no Action to which an Acquired Company is a party (either as plaintiff or
defendant) or to which its Assets are subject pending, or to the Seller’s Knowledge, threatened, which may affect an Acquired Company or its ownership of, or interest in, any Asset or the use or exercise by the Acquired Companies of any Asset.
There is no Action to which an Acquired Company is a party (either as plaintiff or defendant) or to which its Assets are subject pending, or to the Seller’s Knowledge, threatened, which (a) in any manner challenges or seeks the rescission of,
or seeks to prevent, enjoin, alter or materially delay the consummation of, or otherwise relates to, this Agreement and the Contemplated Transactions, or (b) may result in any change in the current equity ownership of any Acquired Company, nor, to
the Seller’s Knowledge, is there any basis for any of the foregoing. There is no Action which an Acquired Company presently intends to initiate. 
  
 3.19.2 Governmental Orders. No Governmental Order has been issued which is applicable to, or otherwise affects, an Acquired Company
or its Assets or the Business. 
  
 3.20.
Products. Other than software development activity undertaken in furtherance of the License Agreement and the Support Agreement, neither of the Companies has manufactured, sold, leased, licensed, delivered or installed any products.

  
 3.21. Insurance. Schedule 3.21
sets forth a list of insurance policies, including policies by which the Acquired Companies, or any of their Assets, employees, officers or directors or the Business has been insured since their organization (the “Liability
Policies”) and their respective expiration dates. The list includes for each Liability Policy the type of policy, form of coverage, policy number and name of insurer. The Seller has made available to the Buyer true, accurate and complete
copies of all Liability Policies, in each case, as amended or otherwise modified and in effect. Schedule 3.21 describes any self-insurance arrangements affecting the Acquired Companies. The Acquired Companies have since their organization
maintained in full force and effect with financially sound and reputable insurers insurance with respect to their Assets and the Business, in such amounts and against such losses and risks as is customarily carried by Persons engaged in the same or
similar business and as is required under the terms of any applicable Real Property Leases or other Contractual Obligations. No insurer (a) has questioned, denied or disputed (or otherwise reserved its rights with respect to) the coverage of any
claim pending under any Liability Policy or (b) has threatened to cancel any Liability Policy. To the Seller’s Knowledge, no insurer plans to raise the premiums for, or materially alter the coverage under, any Current Liability Policy. Except
as disclosed on Schedule 3.21, the Acquired Companies will after the Closing continue to have coverage under all of the Liability Policies with respect to events occurring prior to the Closing. 
  
 3.22. Banking Facilities. Schedule 3.22 sets
forth a true, correct and complete list of: (a) each bank, savings and loan or similar financial institution with which an Acquired 

  

 -18- 

 
Company has an account or safety deposit box or other arrangement, and any numbers or other identifying codes of such accounts, safety deposit boxes or such
other arrangements maintained by an Acquired Company thereat; (b) the names of all Persons authorized to draw on any such account or to have access to any such safety deposit box facility or such other arrangement; and (c) any outstanding powers of
attorney executed by or on behalf of an Acquired Company. 
  
 3.23. Powers of Attorney. No Acquired Company has general or special powers of attorney outstanding (whether as grantor or grantee thereof). 
  
 3.24. No Brokers. Neither Acquired Company has any Liability of any kind to, or is subject to any
claim of, any broker, finder or agent in connection with the Contemplated Transactions other than those which will be borne by the Seller. 
  
 4. REPRESENTATIONS AND WARRANTIES OF THE SELLER. 
  
 The Seller hereby represents and warrants to the Buyer that: 
  
 4.1. Organization. The Seller is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization. 
  
 4.2. Power and
Authorization. The execution, delivery and performance by the Seller of this Agreement and each Ancillary Agreement to which it is (or will be) a party and the consummation of the Contemplated Transactions are within the power and authority of
the Seller and, if applicable, have been duly authorized by all necessary action on the part of the Seller. This Agreement and each Ancillary Agreement to which the Seller is (or will be) a party (a) has been (or, in the case of Ancillary Agreements
to be entered into at or prior to the Closing, will be) duly executed and delivered by such Seller and (b) is (or in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a legal, valid and binding obligation of
the Seller, enforceable against the Seller in accordance with its terms. 
  
 4.3. Authorization of Governmental Authorities. Except as disclosed on Schedule 4.3, no action by (including any authorization, consent or approval), or in respect of, or filing with, any Governmental
Authority is required for, or in connection with, the valid and lawful (a) authorization, execution, delivery and performance by the Seller of this Agreement and each Ancillary Agreement to which it is (or will be) a party or (b) the consummation of
the Contemplated Transactions by the Seller. 
  
 4.4. Noncontravention. Neither the execution, delivery and performance by the Seller of this Agreement or any Ancillary Agreement to which the Seller is (or will be) a party nor the consummation of the Contemplated Transactions will
(a) assuming the taking of any action by (including any authorization, consent or approval) or in respect of, or any filing with, any Governmental Authority, in each case, as disclosed on Schedule 4.3, violate any provision of any law, rule
or regulation applicable to the Seller; (b) result in a breach or violation of, or default under, any Contractual Obligation of the Seller; (c) require any action by (including any authorization, consent or approval) or in respect of (including
notice to), any Person under any Contractual Obligation; or (d) result in a breach or violation of, or default under, the Seller’s Organizational Documents. 
  

 -19- 

 4.5. Title. The Seller is the record and beneficial owner of the Purchased
Interests, and has good and marketable title to such Purchased Interests, free and clear of all Encumbrances except as are imposed by applicable securities laws. The Seller has full right, power and authority to transfer and deliver to the Buyer
valid title to the Purchased Interests held by the Seller, free and clear of all Encumbrances. Immediately following the Closing, the Buyer will be the record and beneficial owner of such Purchased Interests, and have good and marketable title to
such Purchased Interests, free and clear of all Encumbrances except as are imposed by applicable securities laws or created by the Buyer. Except pursuant to this Agreement, there is no Contractual Obligation pursuant to which the Seller has,
directly or indirectly, granted any option, warrant or other right to any Person to acquire the Purchased Interests or other Equity Interests in an Acquired Company. 
  
 4.6. No Brokers. The Seller has no Liability of any kind to any broker, finder or agent with respect
to the Contemplated Transactions for which the Buyer could be liable. 
  
 5. REPRESENTATIONS AND WARRANTIES OF THE BUYER. 
  
 The
Buyer represents and warrants to the Seller and Seller Parent that: 
  
 5.1. Organization. The Buyer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. 
  
 5.2. Power and Authorization. The execution, delivery and performance by the Buyer of this Agreement
and each Ancillary Agreement to which it is (or will be) a party and the consummation of the Contemplated Transactions are within the power and authority of the Buyer and have been duly authorized by all necessary action on the part of the Buyer.
This Agreement and each Ancillary Agreement to which the Buyer is (or will be) a party (a) has been (or, in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) duly executed and delivered by the Buyer and (b) is
(or in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms. 
  
 5.3. Authorization of Governmental Authorities. No
action by (including any authorization, consent or approval), or in respect of, or filing with, any Governmental Authority is required for, or in connection with, the valid and lawful (a) authorization, execution, delivery and performance by the
Buyer of this Agreement and each Ancillary Agreement to which it is (or will be) a party or (b) the consummation of the Contemplated Transactions by the Buyer. 
  

5.4. Noncontravention. Neither the execution, delivery and performance by the Buyer of this Agreement or any Ancillary Agreement
to which it is (or will be) a party nor the consummation of the Contemplated Transactions will (a) assuming the taking of any action by (including any authorization, consent or approval) or in respect of, or any filing with, any Governmental
Authority violate any provision of any law, rule or regulation applicable to the Buyer; (b) result in a breach or violation of, or default under, any Contractual Obligation of the Buyer; (c) require any action by (including any authorization,
consent or approval) or in 

  

 -20- 

 
respect of (including notice to), any Person under any Contractual Obligation; or (d) result in a breach or violation of, or default under, the Buyer’s
Organizational Documents. 
  
 5.5. No
Brokers. The Buyer has no Liability of any kind to any broker, finder or agent with respect to the Contemplated Transactions for which the Seller could be Liable. 
  
 6. COVENANTS. 
  
 6.1. Closing. The Seller will, and will cause the Acquired Companies to take all of the actions and deliver all the various
certificates, documents and instruments described in Section 7 as being performed or delivered by the Seller or the Acquired Companies. 
  
 6.2. Operation of Business. 
  
 6.2.1 Conduct of Business. From the date of this Agreement until the Closing Date, the Company will and the Seller will cause the
Acquired Companies to: 
  
 (a) conduct the
Business only in the ordinary course of business; 
  
 (b) maintain the value of the Business as a going concern; 
  
 (c) preserve intact its business organization and relationships with third parties (including lessors, licensors, suppliers, distributors and customers) and employees; and 
  
 (d) consult with the Buyer prior to taking any action or
entering into any transaction that may be of strategic importance to an Acquired Company. 
  
 6.2.2 Buyer’s Consent. Without limiting the generality of Section 6.2.1, without the written consent of the Buyer, the Company
will not, and the Seller will cause the Acquired Companies not to: 
  
 (a) take or omit to take any action that would cause the representations and warranties in Section 3 to be untrue at, or as of any time prior to, the Closing Date; 
  
 (b) either (i) amend its Organizational Documents, (ii)
amend any term of its outstanding Equity Interests or other securities or (iii) issue, sell, grant, or otherwise disposed of, its Equity Interests or other securities; 
  
 (c) become liable in respect of any Guarantee or incur, assume or otherwise become liable in respect of any
Debt; 
  
 (d) permit any of its Assets to become
subject to an Encumbrance other than a Permitted Encumbrance; 
  
 (e) either (i) make any declaration, setting aside or payment of any dividend or other distribution with respect to, or any repurchase, redemption or other acquisition of, any of its capital stock or other Equity
Interests or (ii) enter into, or perform, any 

  

 -21- 

 
transaction with, or for the benefit of, the Seller or any Affiliate of any Seller (other than payments made to officers, directors and employees in the
ordinary course of business); 
  
 (f) increase
the Compensation payable or paid, whether conditionally or otherwise, to any officer, director, employee, consultant or agent above such amounts set forth in Schedule 3.18(a); 
  
 (g) enter into any Contractual Obligation providing for the employment or consultancy of any Person on a
full-time, part-time, consulting sub-contractor or other basis or otherwise providing Compensation or other benefits to any officer, director, employee, contractor, sub-contractor or consultant (other than an Employee set forth on Schedule
3.18(a) or 3.18(b) as such Schedule may be amended from time to time with the consent of the Buyer); 
  
 (h) make, change or revoke any material Tax election, elect or change any method of accounting for Tax purposes, settle any Action in
respect of Taxes or enter into any Contractual Obligation in respect of Taxes with any Governmental Authority; 
  
 (i) terminate or close any facility, business or operation; 
  
 (j) except as set forth in Schedule 3.7, adopt any Employee Plan; 
  
 (k) write up or write down any of its material Assets or
revalue its inventory; 
  
 (l) incur any expense
not included in the Budget; or 
  
 (m) enter
into any Contractual Obligation to do any of the things referred to elsewhere in this Section 6.2.2. 
  
 6.3. Notices and Consents. 
  
 6.3.1 Acquired Companies. The Seller will cause the Acquired Companies to give all notices to, make all filings with and use their
commercially reasonable efforts to obtain all authorizations, consents or approvals from, any Governmental Authority or other Person that are set forth on Schedule 3.3 and Schedule 3.4 or as otherwise reasonably requested by the Buyer.

  
 6.3.2 Seller. The Seller will give all
notices to, make all filings with and use its commercially reasonable efforts to obtain all authorizations, consents or approvals from, any Governmental Authority or other Person that are set forth on Schedule 4.3 and Schedule 4.4 or
as otherwise reasonably requested by the Buyer. 
  
 6.3.3 Buyer. The Buyer will give all notices to, make all filings with and use its commercially reasonable efforts to obtain all authorizations, consents or approvals from, any Governmental Authority or other Person that are set
forth on Schedule 5.3 and Schedule 5.4 or as otherwise reasonably requested by the Company. 
  

 -22- 

 6.4. [RESERVED] 
  
 6.5. Notice of Developments. From the date of the Agreement until the Closing Date, the Company and
the Seller will give the Buyer prompt written notice upon becoming aware of any material development affecting the Assets, Liabilities, Business, Employees, financial condition, operations or prospects of an Acquired Company, or any event or
circumstance that could reasonably be expected to result in a breach of any of the Company’s or the Seller’s representations and warranties; provided, however, that no such disclosure will be deemed to prevent or cure any
such breach of, amend or supplement any Schedule to, or otherwise disclose any exception to, any of the representations and warranties set forth in this Agreement. 
  
 6.6. Seller’s Release. Effective as of the Closing, the Seller hereby releases, remises and
forever discharges any and all rights and claims that it has had, now has or might now have against the Acquired Companies except for (a) rights and claims arising from or in connection with this Agreement and the Ancillary Agreements and (b) rights
and claims arising from or in connection with claims asserted against such Seller by third parties for which the Buyer Indemnified Persons are not entitled to indemnification by the Seller pursuant to Section 10.2. 
  
 6.7. Confidentiality. 
  
 6.7.1 Confidentiality of the Seller. 
  
 (a) The Seller acknowledges that the success of the
Acquired Companies after the Closing depends upon the continued preservation of the confidentiality of certain information possessed by the Seller, that the preservation of the confidentiality of such information by the Seller is an essential
premise of the bargain between the Seller and the Buyer, and that the Buyer would be unwilling to enter into this Agreement in the absence of this Section 6.7.1(a). Accordingly, the Seller hereby agrees with the Buyer that the Seller and its
Representatives will not, and will cause its Affiliates not to, at any time on or after the Closing Date, directly or indirectly, without the prior written consent of the Buyer, disclose or use, any confidential or proprietary information involving
or relating to the Business or an Acquired Company; provided, however, that the information subject to the foregoing provisions of this sentence will not include any information (i) generally available to, or known by, the public
(other than as a result of disclosure in violation hereof) or (ii) that is required by any applicable Legal Requirement to be disclosed (in which case the Seller will provide the Buyer with the opportunity to review in advance the disclosure); and
provided, further, that the provisions of this Section 6.7.1(a) will not prohibit any retention of copies of records or disclosure (a) required by any applicable Legal Requirement so long as reasonable prior notice is given of such disclosure
and a reasonable opportunity is afforded to contest the same or (b) made in connection with the enforcement of any right or remedy relating to this Agreement or the Contemplated Transactions. The Seller agrees that it will be responsible for any
breach or violation of the provisions of this Section 6.7.1(a) by any of its Representatives. 
  

 -23- 

 (b) Notwithstanding the foregoing, the Seller and each of its Representatives may
disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to the you relating to such tax
treatment and tax structure, all as contemplated by Treasury Regulation Section 1.6011-4(b)(3)(iii). 
  
 6.8. Publicity. No public announcement or disclosure will be made by any party with respect to the subject matter of this Agreement
or the Contemplated Transactions without the prior written consent of the Buyer and the Seller; provided, however, that the provisions of this Section 6.8 will not prohibit (a) any disclosure required by any applicable Legal
Requirements (in which case the disclosing party will provide the other parties with the opportunity to review in advance the disclosure) or (b) any disclosure made in connection with the enforcement of any right or remedy relating to this Agreement
or the Contemplated Transactions. 
  
 6.9.
Noncompetition and Nonsolicitation. The parties acknowledge and agree that they are subject to the non-competition covenants set forth in the License Agreement and the Support Agreement. Except as otherwise provided in the Contractor
Agreements, for a period of two years from and after the Closing Date, neither the Seller, nor any of its Affiliates will recruit, offer employment, employ, engage as a consultant, lure or entice away, or in any other manner persuade or attempt to
persuade, any Employee to leave the employ of the Acquired Companies. If the final judgment of a court of competent jurisdiction declares that any term or provision of this Section 6.9 is invalid or unenforceable, the parties hereto agree that the
court making the determination of invalidity or unenforceability will have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision
with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement will be enforceable as so modified after the expiration of the time
within which the judgment may be appealed. 
  
 6.10. Further Assurances. From and after the Closing Date, upon the request of the Seller or the Buyer, each of the parties hereto will do, execute, acknowledge and deliver all such further acts, assurances, deeds, assignments,
transfers, conveyances and other instruments and papers as may be reasonably required or appropriate to carry out the Contemplated Transactions. The Seller will not take any action that is designed or intended to have the effect of discouraging any
lessor, licensor, supplier, distributor or customer of an Acquired Company or other Person with whom an Acquired Company has a relationship from maintaining the same relationship with the Acquired Company after the Closing as it maintained prior to
the Closing. The Seller will refer all customer inquiries relating to the Business to the Buyer, or an Acquired Company, as appropriate, from and after the Closing. 
  
 6.11. Employees. 
  
 (a) The Seller shall cause Newco or DevCo, as the case may be, on or prior to the Closing Date, to enter
into the Contractor Agreements with respect to the persons set forth on Schedule 3.18(a) and to hire the Employees in the capacities and on the 

  

 -24- 

 
terms set forth on Schedule 3.18(a) (as such Schedule may be amended from time to time prior to the Closing with the Buyer’s consent).

  
 (b) The parties hereto acknowledge that it is
preferable that each Employee be hired by Newco or DevCo, as the case may be, as a full-time employee but that, in the case of certain of the Employees, certain Legal Requirements or other circumstances make such arrangement impracticable at the
date hereof. As soon as practicable following such time as such Legal Requirements or other circumstances are satisfied or resolved (whether before or after the Closing Date), the parties hereto will use their commercially reasonable efforts to
cause such Employees to be hired by Newco or DevCo, as the case may be, as full-time employees. 
  
 (c) The parties hereto acknowledge that the Seller and Seller Parent uniquely possess the know-how for the development of the SRM
Intellectual Property. Accordingly, in the event that any Employee leaves the employment of the Buyer Newco or DevCo (either voluntarily or such Employee is terminated by the Buyer, Newco or DevCo because such Employee’s performance is not
reasonably satisfactory to the Buyer) during the 12-month period following the Closing Date, the Seller and Seller Parent shall use their commercially reasonable efforts to identify and make available to the Buyer, Newco or DevCo, as the case may
be, suitable full-time replacement employee(s) or, at the Buyer’s option, provide reasonably adequate training on the Seller’s software at the Seller’s standard rates for such training for any such replacement employee hired by the
Buyer, Newco or DevCo. 
  
 6.12. Source
Code. The Seller shall, on or prior to the Closing Date, deliver to the Buyer and the Company a current version, as of the Closing Date, of all Source Code and Source Code Documentation (as such terms are defined in the License Agreement) as
required by the terms of the License Agreement. 
  
 7. CONDITIONS
TO THE BUYER’S OBLIGATIONS AT THE CLOSING. 
  
 The
obligations of the Buyer to consummate the Closing is subject to the fulfillment of each of the following conditions: 
  
 7.1. Representations and Warranties. The representations and warranties of the Company and the Seller contained in this Agreement
and in any document, instrument or certificate delivered hereunder (a) that are not qualified by materiality or Material Adverse Effect will be true and correct in all material respects at and as of the Closing with the same force and effect as if
made as of the Closing and (b) that are qualified by materiality or Material Adverse Effect will be true and correct in all respects at and as of the Closing with the same force and effect as if made as of the Closing, in each case, other than
representations and warranties that expressly speak only as of a specific date or time, which will be true and correct as of such specified date or time. 
  
 7.2. Performance. Each Acquired Company and the Seller will have performed and complied in all respects, with all agreements,
obligations and covenants contained in this 

  

 -25- 

 
Agreement that are required to be performed or complied with by them at or prior to the Closing. 
  
 7.3. LLC Interests. The Seller will have delivered to
the Buyer a duly executed LLC interest transfer power evidencing the transfer all of the Purchased Interests (which are uncertificated). 
  
 7.4. DevCo. DevCo shall have been duly organized and be validly existing under applicable law and shall possess all valid
authorizations, permits and licenses to enable it to conduct its operations as contemplated by this Agreement. 
  
 7.5. Compliance Certificate. The Company and the Seller will have delivered to the Buyer a certificate substantially in the form of
Exhibit 7.5. 
  
 7.6. Absence of
Litigation. No Action will be pending or threatened in writing which may result in a Governmental Order (nor will there be any Governmental Order in effect) (a) which would prevent consummation of any of the Contemplated Transactions, (b) which
would result in any of the Contemplated Transactions being rescinded following consummation, (c) which would limit or otherwise adversely affect the right of the Buyer to own the Purchased Interests (including the right to vote the Purchased
Interests), to control the Acquired Companies, or to operate all or any material portion of either the Business or Assets or of the business or assets of the Buyer or any of its Affiliates or (d) would compel the Buyer or any of its Affiliates to
dispose of all or any material portion of either the Business or Assets or the business or assets of the Buyer or any of its Affiliates. 
  
 7.7. Consents, etc. All actions by (including any authorization, consent or approval) or in respect of (including notice to), or
filings with, any Governmental Authority or other Person that are required to consummate the Contemplated Transactions, as disclosed in Schedule 3.3, Schedule 3.4, Schedule 4.3, and Schedule 4.4 or as otherwise reasonably
requested by the Buyer, will have been obtained or made, in a manner reasonably satisfactory in form and substance to the Buyer, and no such authorization, consent or approval will have been revoked. 
  
 7.8. Proceedings and Documents. All corporate and
other proceedings in connection with the Contemplated Transactions and all documents incident thereto will be reasonably satisfactory in form and substance to the Buyer and its counsel, and they will have received all such counterpart original and
certified or other copies of such documents as they may reasonably request. 
  
 7.9. Ancillary Agreements. Each of the Ancillary Agreements will have been executed and delivered to the Buyer by each of the other parties thereto and shall be in full force and effect. 
  
 7.10. No Material Adverse Change. Since the date of
this Agreement, there will have occurred no events nor will there exist circumstances which singly or in the aggregate have resulted in a Material Adverse Effect. 
  

 -26- 

 7.11. Employees. Each of the following tests shall have been satisfied:

  
 (a) At least 24 of the Employees set forth on
Schedule 3.18(a) (as such Schedule may be amended from time to time prior to the Closing with the Buyer’s consent) shall be hired by Newco or DevCo, as the case may be, in the capacities and on the terms set forth on such Schedule and
the Seller shall have delivered to the Buyer evidence of such employment reasonably satisfactory to the Buyer; provided that each of the individuals previously identified by the Buyer to the Seller shall be included in such group of 24. 

 
 (b) At least 20 of the 26 employees identified on
Schedule 3.18(a) as (i) “DI” or “IC” or (ii) being employed by DevCo shall be hired by Newco or DevCo, as the case may be, in the capacities and on the terms set forth on such Schedule and the Seller shall have delivered
to the Buyer evidence of such employment reasonably satisfactory to the Buyer. 
  
 (c) At least six (6) of the ten (10) Employees identified on Schedule 3.18(a) as “IC” shall be contracted to Newco or
DevCo on the terms set forth on such Schedule. 
  
 (d) Each of the individuals identified on Schedule 3.18(a) with a single asterisk (*) shall be hired by Newco or DevCo, as the case may be, in the capacities and on the terms set forth on such Schedule and the Seller shall have
delivered to the Buyer evidence of such employment reasonably satisfactory to the Buyer. 
  
 (e) At least three (3) of the four (4) individuals identified on Schedule 3.18(a) with a double asterisk (**) shall be hired by
Newco or DevCo, as the case may be, in the capacities and on the terms set forth on such Schedule and the Seller shall have delivered to the Buyer evidence of such employment reasonably satisfactory to the Buyer. 
  
 7.12. Source Code. The Seller shall have delivered to
the Buyer and the Company a current version, as of the Closing Date, of all Source Code and Source Code Documentation (as such terms are defined in the License Agreement) as required by the terms of the License Agreement and the acceptance tests
required by Section 4 of the License Agreement shall have been successfully completed. 
  
 7.13. Diligence. The Buyer shall have completed to its satisfaction an operational, financial and legal diligence investigation of
the Acquired Companies. 
  
 7.14.
Budget. The actual aggregate monthly cost of the Employees shall be as set forth in Schedule 3.18(a), such amounts to be confirmed by reference to the terms of the Employment Agreements and the Contractor Agreements. 

 
 8. CONDITIONS TO THE SELLER’S OBLIGATIONS AT THE CLOSING. 

 
 The obligation of the Seller to consummate the Closing is subject to the
fulfillment of each of the following conditions (unless waived by the Seller in accordance with Section 12.3): 
  
 8.1. Representations and Warranties. The representations and warranties of the Buyer contained in this Agreement and in any
document, instrument or certificate delivered hereunder (a) that are not qualified by materiality or Material Adverse Effect will be true and correct in all material respects at and as of the Closing with the same force and effect as if made as of
the Closing and (b) that are qualified by materiality or Material Adverse Effect 

  

 -27- 

 
will be true and correct in all respects at and as of the Closing with the same force and effect as if made as of the Closing, in each case, other than
representations and warranties that expressly speak only as of a specific date or time, which will be true and correct as of such specified date or time and the Buyer shall have delivered to the Seller a certificate to such effect. 
  
 8.2. Performance. The Buyer will have performed and
complied with, in all respects, all agreements, obligations and covenants contained in this Agreement that are required to be performed or complied with by the Buyer at or prior to the Closing. 
  
 9. TERMINATION. 
  
 9.1. Termination of Agreement. 
  
 (a) This Agreement may be terminated (the date on which the
Agreement is terminated, the “Termination Date”) at any time prior to the Closing: 
  
 (i) by mutual written consent of the Buyer and the Seller; 
  
 (ii) by either the Buyer or the Seller by providing written notice to the other at any time after June 30,
2005 (the “Drop Dead Date”) if the Closing will not have occurred by reason of the failure of any condition set forth in Section 7, in the case of the Buyer, or Section 8, in the case of the Seller, to be satisfied (unless such
failure is the result of one or more breaches or violations of any covenant, agreement, representation or warranty of this Agreement by the terminating party); 
  

(iii) by either the Buyer or the Seller if a final, nonappealable Governmental Order permanently enjoining, restraining or otherwise
prohibiting the Closing will have been issued by a Governmental Authority of competent jurisdiction; 
  
 (iv) by the Buyer if either (i) there will be a breach of any representation or warranty of the Company or the Seller contained in this
Agreement as of the date of this Agreement or as of any subsequent date (other than representations or warranties that expressly speak only as of a specific date or time, with respect to which the Buyer’s right to terminate will arise only in
the event of a breach of such representation or warranty as of such specified date or time) or (ii) the Company or the Seller will have breached or violated in any material respect any of their respective covenants and agreements contained in this
Agreement, which breach or violation would give rise, or could reasonably be expected to give rise, to a failure of a condition set forth in Section 7 and cannot be or has not been cured on or before the earlier of five Business Days before the Drop
Dead Date or ten Business Days after the Buyer notifies the Company of such breach or violation; or 
  
 (v) by the Seller if either (i) there will be a breach of any representation or warranty of the Buyer contained in this Agreement as of
the date of this Agreement or as of any subsequent date (other than representations or warranties 

  

 -28- 

 
that expressly speak only as of a specific date or time, with respect to which the Seller’s right to terminate will arise only in the event of a breach
of such representation or warranty as of such specified date or time) or (ii) the Buyer will have breached or violated in any material respect any of its covenants and agreements contained in this Agreement, which breach or violation would give
rise, or could reasonably be expected to give rise, to a failure of the condition set forth in Section 8 and cannot be or has not been cured on or before the earlier of five Business Days before the Drop Dead Date or ten Business Days after the
Seller notifies the Company of such breach or violation. 
  
 (b) This Agreement shall automatically terminate without action, by any party hereto if the License Agreement or the Support Agreement shall have been terminated prior to the Closing having occurred. 
  
 9.2. Effect of Termination. In the event of the
termination of this Agreement pursuant to Section 9.1, this Agreement – other than the provisions of Sections 3.24, 4.6 and 5.5 (No Brokers), 6.7 (Confidentiality), 6.8 (Publicity), 10 (Indemnification) 12.10 (Governing Law) and 12.11
(Jurisdiction) 12.13 (Waiver of Jury Trial) – will then be null and void and have no further force and effect and all other rights and Liabilities of the parties hereunder will terminate without any Liability of any party to any other party,
except for Liabilities arising in respect of breaches under this Agreement by any party on or prior to the Termination Date; provided, however, that if (i) the Buyer terminates this Agreement pursuant to Section 9.1(a)(ii) or (iv), or
if this Agreement shall have terminated pursuant to Section 9.01(b) due to the breach by the Seller or the Company of the License Agreement or the Support Agreement or the insolvency of the Company or the Seller, the Buyer shall, within ten (10)
days after the Termination Date, provide to the Seller documentation as to the Buyer Expenses and the Seller shall, within thirty (30) days after the Termination Date, pay to the Buyer an amount in cash equal to the Buyer Expenses and (ii) if the
Seller terminates this Agreement pursuant to Section 9.1(a)(ii) or (v), or if this Agreement shall have terminated pursuant to Section 9.1(b) due to the breach by the Buyer of the License Agreement or the Support Agreement or the insolvency of the
Buyer, the Seller shall, within ten (10) days after the Termination Date, provide to the Buyer documentation as to the Seller Expenses and the Buyer shall, within thirty (30) days after the Termination Date, pay to the Seller an amount in cash equal
to the Seller Expenses. The procedure set forth in Section 2.4 with regard to the resolution of disputes concerning the calculation of Seller Expenses shall apply to the resolution of disputes concerning calculation of Buyer Expenses and Seller
Expenses under the proviso to this Section 9.2. 
  
 10.
INDEMNIFICATION. 
  
 10.1. Indemnification by
the Seller. 
  
 10.1.1
Indemnification. Subject to the limitations set forth in this Section 10, the Seller will indemnify and hold harmless the Buyer and each of its Affiliates (including, following the Closing, each Acquired Company), and the Representatives and
Affiliates of each of the foregoing Persons (each, a “Buyer Indemnified Person”), from, against and in respect of any and all Actions, Liabilities, Governmental Orders, Encumbrances, 

  

 -29- 

 
losses, damages, bonds, dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense and enforcement of this
Agreement), expenses or amounts paid in settlement (in each case, including reasonable attorneys’ and experts fees and expenses), whether or not involving a Third Party Claim (collectively, “Losses”), incurred or suffered by
the Buyer Indemnified Persons or any of them as a result of, arising out of or directly or indirectly relating to: 
  
 (a) any fraud of the Seller or the Company or any breach of any representation or warranty made by the Company or the Seller or any of
them in this Agreement (other than in Section 4), any Ancillary Agreement or in any document, Schedule, instrument or certificate required to be delivered pursuant to this Agreement; 
  
 (b) any breach or violation of any covenant or agreement of the Company to the extent required to be
performed or complied with by the Company prior to the Closing in or pursuant to this Agreement or any Ancillary Agreement; 
  
 (c) any breach of any representation or warranty made by the Seller in Section 4, any Ancillary Agreement or in any document, Schedule,
instrument or certificate required to be delivered pursuant to this Agreement (in each case, as such representation or warranty would read if all qualifications as to Seller’s Knowledge and materiality, including each reference to the defined
term “Material Adverse Effect,” were deleted therefrom); 
  
 (d) any breach or violation of any covenant or agreement of the Seller (including under this Section 10) in or pursuant to this Agreement or any Ancillary Agreement; or 
  
 (e) any accrued and unpaid expense or liability of Newco or
DevCo as of the Closing that exceeds the amount of the particular Seller Expenses set forth in the Budget (other than Buyer Expenses invoiced to an Acquired Company). 
  
 10.1.2 Monetary Limitations. The Seller will have no obligation to indemnify the Buyer Indemnified
Persons pursuant to Sections 10.1.1(a) and 10.1.1(c) in respect of Losses arising from the breach of any representation or warranty described therein unless the aggregate amount of all such Losses incurred or suffered by the Buyer Indemnified
Persons exceeds $100,000 (at which point the Seller will indemnify the Buyer Indemnified Persons for all such Losses), and the Seller’s aggregate liability in respect of claims for indemnification pursuant to Sections 10.1.1(a) will not exceed
the Purchase Price; provided, however, that, subject to Section 10.2A, the Seller’s aggregate liability in respect of claims for indemnification pursuant to Section 10.1.1(a) in respect of breaches of representations and
warranties set forth in Section 3.11 (Intellectual Property) (except as provided below) will not exceed the aggregate of the Purchase Price and the fees paid by Newco to the Seller under the License Agreement and the Support Agreement during the
twelve (12) month period immediately preceding the date a claim is made; and provided, further, however, that the foregoing limitations will not apply to (a) claims for indemnification pursuant to Sections 10.1.1(a) and 10.1.1(c) in
respect of breaches of representations and warranties set forth in Sections 3.1.1 (Organization; No Activities), 

  

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3.11 (Intellectual Property) to the extent such claim relates to a third-party infringement claim, 4.1 (Organization) or 4.5 (Title) or (b) claims based upon
fraud or intentional misrepresentation. 
  
 10.2.
Indemnity by the Buyer. 
  
 10.2.1
Indemnification. Subject to the limitations set forth in this Section 10, the Buyer will indemnify and hold harmless each the Seller and the Seller’s Affiliates (including, prior to the Closing, each Acquired Company), and the
Representatives and Affiliates of each of the foregoing Persons (each, a “Seller Indemnified Person”), from, against and in respect of any and all Losses incurred or suffered by the Seller Indemnified Persons or any of them as a
result of, arising out of or relating to, directly or indirectly: 
  
 (a) any fraud of the Buyer or any breach of any representation or warranty made by the Buyer in this Agreement any Ancillary Agreement or in any document, Schedule, instrument or certificate required to be delivered
pursuant to this Agreement; 
  
 (b) any breach
or violation of any covenant or agreement of the Buyer (including under this Section 10) or any covenant or agreement of the Company to the extent required to be performed or complied with by the Company after the Closing, in either case in or
pursuant to this Agreement or any Ancillary Agreement; or 
  
 (c) any breach or violation of any covenant or agreement of the Buyer (including under this Section 10) in or pursuant to this Agreement. 
  
 10.2.2 Monetary Limitations. The Buyer will have no obligation to indemnify the Seller Indemnified
Persons pursuant to Section 10.2.1(a) in respect of Losses arising from the breach of any representation or warranty described therein unless and until the aggregate amount of all such Losses incurred or suffered by the Seller Indemnified Persons
exceeds $100,000 (at which point the Buyer will indemnify the Seller Indemnified Persons for all such Losses), and the Buyer’s aggregate liability in respect of claims for indemnification pursuant to Section 10.2.1(a) will not exceed the
Purchase Price; provided, however, that foregoing limitations will not apply to (a) claims for indemnification pursuant to Section 10.2.1(a) in respect of breaches of representations and warranties set forth in Section 5.1
(Organization) or (b) claims based upon fraud or intentional misrepresentation. 
  
 10.2A No Multiple Recovery. Notwithstanding that a fact or set of facts could give rise to a claim under this Agreement, the
License Agreement and/or the Support Agreement, no party to this Agreement shall be entitled to more than a single recovery in connection with such facts or set of facts. Nothing herein or in the License Agreement or the Support Agreement, however,
shall limit the ability of a party to bring an action under one or more of such agreements 
  
 10.3. Time for Claims. No claim may be made or suit instituted seeking indemnification pursuant to Section 10.1.1(a) or 10.2.1(a)
for any breach of any representation or warranty unless a written notice describing such breach in reasonable detail 

  

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in light of the circumstances then known to the Indemnified Party, is provided to the Indemnifying Party: 
  
 (a) at any time, in the case of any breach of the
representations and warranties set forth in Sections 3.1.1 (Organization), 3.2 (Power and Authorization), 3.4 (Breach of Organizational Documents), 3.5 (Capitalization), 3.24 (No Brokers), 4.1 (Organization), 4.2 (Power and Authorization), 4.4 (No
Breach of Organizational Documents of Seller), 4.5 (Title), 4.6 (No Brokers), 5.1 (Organization), 5.2 (Power and Authorization), 5.4 (Breach of Organizational Documents) or 5.5 (No Brokers); 
  
 (b) at any time, in the case of any claim or suit based upon
violations of law, fraud or intentional misrepresentation; 
  
 (c) at any time prior to the thirtieth day after the expiration of the applicable statute of limitations (taking into account any tolling periods and other extensions) in the case of any breach of the representations
and warranties set forth in Sections 3.13 (Tax Matters), 3.12.1 (Compliance with Legal Requirements), 3.12.2 (No Illegal Payments, Etc.) or 3.14 (Employee Benefit Plans); 
  
 (d) at any time prior to the seventh anniversary of the Closing Date in the case of any breach of the
representations set forth in Section 3.11 (Intellectual Property); and 
  
 (e) at any time prior to August 15, 2006, in the case of any breach of any other representation and warranty in this Agreement. 
  

10.4. Third Party Claims. 
  
 10.4.1 Notice of Claim. If any third party shall notify an Indemnified Party with respect to any matter (a “Third Party
Claim”) which may give rise to an Indemnified Claim against an Indemnifying Party under this Section 10, then the Indemnified Party will promptly give written notice to the Indemnifying Party; provided, however, that no delay
on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation under this Section 10, except to the extent such delay actually and materially prejudices the Indemnifying Party.

  
 10.4.2 Assumption of Defense, etc. The
Indemnifying Party will be entitled to participate in the defense of any Third Party Claim that is the subject of a notice given by the Indemnified Party pursuant to Section 10.4.1. In addition, the Indemnifying Party will have the right to defend
the Indemnified Party against the Third Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party so long as (a) the Indemnifying Party gives written notice to the Indemnified Party within fifteen days after the
Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against the entirety of any and all Losses the Indemnified Party may suffer resulting from, arising out of,
relating to, in the nature of, or caused by the Third Party Claim, (b) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have adequate financial
resources to defend against the Third 

  

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Party Claim and fulfill its indemnification obligations hereunder, (c) the Third Party Claim involves only money damages and does not seek an injunction or
other equitable relief against the Indemnified Party, (d) the Indemnified Party has not been advised by counsel that an actual or potential conflict exists between the Indemnified Party and the Indemnifying Party in connection with the defense of
the Third Party Claim, (e) the Third Party Claim does not relate to or otherwise arise in connection with Taxes or any criminal or regulatory enforcement Action, (f) settlement of, an adverse judgment with respect to or the Indemnifying Party’s
conduct of the defense of the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to be adverse to the Indemnified Party’s reputation or continuing business interests (including its relationships with current
or potential customers, suppliers or other parties material to the conduct of its business) and (g) the Indemnifying Party conducts the defense of the Third Party Claim actively and diligently. The Indemnified Party may retain separate co-counsel at
its sole cost and expense and participate in the defense of the Third Party Claim; provided, however, that the Indemnifying Party will pay the fees and expenses of separate co-counsel retained by the Indemnified Party that are incurred
prior to Indemnifying Party’s assumption of control of the defense of the Third Party Claim. 
  
 10.4.3 Limitations on Indemnifying Party. The Indemnifying Party will not consent to the entry of any judgment or enter into any
compromise or settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party unless such judgment, compromise or settlement (a) provides for the payment by the Indemnifying Party of money as sole relief
for the claimant, (b) results in the full and general release of the Buyer Indemnified Persons or Seller Indemnified Persons, as applicable, from all liabilities arising or relating to, or in connection with, the Third Party Claim and (c) involves
no finding or admission of any violation of Legal Requirements or the rights of any Person and no effect on any other claims that may be made against the Indemnified Party. 
  
 10.4.4 Indemnified Party’s Control. If the Indemnifying Party does not deliver the notice
contemplated by clause (a), or the evidence contemplated by clause (b), of Section 10.4.2 within 15 days after the Indemnified Party has given notice of the Third Party Claim, or otherwise at any time fails to conduct the defense of the Third Party
Claim actively and diligently, the Indemnified Party may defend, and may consent to the entry of any judgment or enter into any compromise or settlement with respect to, the Third Party Claim in any manner it may deem appropriate (and the
Indemnified Party need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith). If such notice and evidence is given on a timely basis and the Indemnifying Party conducts the defense of the Third Party Claim
actively and diligently but any of the other conditions in Section 10.4.2 is or becomes unsatisfied, the Indemnified Party may defend, and may consent to the entry of any judgment or enter into any compromise or settlement with respect to, the Third
Party Claim; provided, however, that the Indemnifying Party will not be bound by the entry of any such judgment consented to, or any such compromise or settlement effected, without its prior written consent (which consent will not be
unreasonably withheld or delayed). In the event that the Indemnified Party conducts the defense of the Third Party Claim pursuant to this Section 10.4.4, the Indemnifying Party will (a) advance the Indemnified Party promptly and periodically for

  

 -33- 

 
the costs of defending against the Third Party Claim (including reasonable attorneys’ fees and expenses) and (b) remain responsible for any and all
other Losses that the Indemnified Party may incur or suffer resulting from, arising out of, relating to, in the nature of or caused by the Third Party Claim to the fullest extent provided in this Section 10. 
  
 10.4.5 Consent to Jurisdiction Regarding Third Party
Claim. The Buyer and the Seller, each in its capacity as an Indemnifying Party, hereby consents to the non-exclusive jurisdiction of any court in which any Third Party Claim may brought against any Indemnified Party for purposes of any claim
which such Indemnified Party may have against such Indemnifying Party pursuant to this Agreement in connection with such Third Party Claim, and in furtherance thereof, the provisions of Section 12.11 are incorporated herein by reference, mutatis
mutandis. 
  
 10.5. Remedies Cumulative.
The rights of each Buyer Indemnified Person and Seller Indemnified Person under this Section 10 are cumulative, and each Buyer Indemnified Person and Seller Indemnified Person, as the case may be, will have the right in any particular circumstance,
in its sole discretion, to enforce any provision of this Section 10 without regard to the availability of a remedy under any other provision of this Section 10. 
  
 10.6. Exclusive Remedy. The parties hereto acknowledge and agree that, in the absence of fraud or
intentional misrepresentation, the remedies provided for in this Agreement shall be the parties’ sole and exclusive remedy with respect to the subject matter of this Agreement; provided that the foregoing shall not be construed as limiting in
any way to the right of a party to seek injunctive relief in accordance with Section 12.12 or to pursue its remedies as set forth in the Ancillary Agreements. 
  

11. TAX MATTERS 
  
 11.1. Certain Taxes and Fees. All transfer, documentary, sales, use stamp, registration and other such Taxes, and any conveyance
fees or recording charges incurred in connection with the Contemplated Transactions, will be paid by the Seller when due. The Seller will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes,
fees and charges and, if required by applicable law, the Buyer will (and will cause its Affiliates to) join in the execution of any such Tax Returns and other documentation. 
  
 11.2. Cooperation on Tax Matters. The Buyer, the Acquired Companies, and the Seller will cooperate
fully, as and to the extent reasonably requested by the other party, in connection with any Tax matters relating to the Acquired Companies (including by the provision of reasonably relevant records or information). The party requesting such
cooperation will pay the reasonable out-of-pocket expenses of the other party. 
  

 -34- 

 12. MISCELLANEOUS 
  
 12.1. Notices. All notices, requests, demands, claims and other communications required or permitted
to be delivered, given or otherwise provided under this Agreement must be in writing and must be delivered, given or otherwise provided: 
  
 (a) by hand (in which case, it will be effective upon delivery); 
  
 (b) by facsimile (in which case, it will be effective upon receipt of confirmation of good transmission); or

  
 (c) by overnight delivery by a nationally
recognized courier service (in which case, it will be effective on the Business Day after being deposited with such courier service); 
  
 in each case, to the address (or facsimile number) listed below: 
  

If to the Buyer, to it at: 
  
 Enovia Corp. 
  
 10330 David Taylor Drive 
  
 Charlotte, NC 28262 
  
 Telephone number: (704) 264-8779 
  
 Facsimile number: (704) 264-8822 
 Attention: Martine Wallimann 
  
 with a copy to: 
  
 Ropes & Gray LLP 45 
 Rockefeller Plaza 
  
 New York, New York 10111 
  
 Telephone number: (212) 841-5700 
  
 Facsimile number: (212) 841-5725 
  
 Attention: Jonathan P. Cramer 
  
 If to the Company, the Seller and Seller Parent, to it at: 
  
 11701 Luna Road 
 Dallas, TX 75234 
 Telephone number: (469) 357-1000 
 Facsimile number: (469) 357-6566 
 Attention: General Counsel 
  
 Each of the parties to this Agreement may specify different address or facsimile number by giving notice in accordance with this Section 12.1 to each of
the other parties hereto. 
  

 -35- 

 12.2. Succession and Assignment; No Third-Party Beneficiary. Subject to the
immediately following sentence, this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, each of which such successors and permitted assigns will be deemed to be a
party hereto for all purposes hereof. No party may assign, delegate or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other parties; provided,
however, that the Buyer may (a) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (b) designate one or more of its Affiliates to perform its obligations hereunder, in each case, so long as Buyer is
not relieved of any Liability hereunder. Except as expressly provided herein, this Agreement is for the sole benefit of the parties and their permitted successors and assignees and nothing herein expressed or implied will give or be construed to
give any Person, other than the parties and such successors and assignees, any legal or equitable rights hereunder. 
  
 12.3. Amendments and Waivers. No amendment or waiver of any provision of this Agreement will be valid and binding unless it is in
writing and signed, in the case of an amendment, by the Buyer, the Company, the Seller and Seller Parent, or in the case of a waiver, by the party against whom the waiver is to be effective. No waiver by any party of any breach or violation or,
default under any representation, warranty or covenant hereunder, whether intentional or not, will be deemed to extend to any prior or subsequent breach, violation, default of any such representation, warranty or covenant hereunder or affect in any
way any rights arising by virtue of any prior or subsequent such occurrence. No delay or omission on the part of any party in exercising any right, power or remedy under this Agreement will operate as a waiver thereof. 
  
 12.4. Entire Agreement. This Agreement, together with
the other Ancillary Agreements and any documents, instruments and certificates explicitly referred to herein, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes any and all prior
discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or oral, with respect thereto. 
  
 12.5. Schedules; Listed Documents, etc. Neither the listing nor description of any item, matter or document in any Schedule hereto
nor the furnishing or availability for review of any document will be construed to modify, qualify or disclose an exception to any representation or warranty of any party made herein or in connection herewith, except to the extent that such
representation or warranty specifically refers to such Schedule and such modification, qualification or exception is clearly described in such Schedule. 
  
 12.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all
of which together will constitute but one and the same instrument. This Agreement will become effective when duly executed by each party hereto. 
  
 12.7. Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
will not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. In the event that any 

  

 -36- 

 
provision hereof would, under applicable law, be invalid or unenforceable in any respect, each party hereto intends that such provision will be construed by
modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. 
  
 12.8. Headings. The headings contained in this Agreement are for convenience purposes only and will not in any way affect the
meaning or interpretation hereof. 
  
 12.9.
Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the
parties and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The parties intend that each representation, warranty and covenant contained herein
will have independent significance. If any party has breached or violated any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject
matter (regardless of the relative levels of specificity) which the party has not breached or violated will not detract from or mitigate the fact that the party has breached or violated the first representation, warranty or covenant. 
  
 12.10. Governing Law. This Agreement, the rights of
the parties and all Actions arising in whole or in part under or in connection herewith, will be governed by and construed in accordance with the domestic substantive laws of the State of New York, without giving effect to any choice or conflict of
law provision or rule that would cause the application of the laws of any other jurisdiction. 
  
 12.11. Jurisdiction; Venue; Service of Process. 
  
 12.11.1 Jurisdiction. Subject to the provisions of Section 10.4.5, each party to this Agreement, by
its execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state courts of the State of New York or the United States District Court located in the Southern District of the State of New York for the purpose of any
Action between the parties arising in whole or in part under or in connection with this Agreement, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such
Action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such Action brought in one of the above-named courts should be dismissed
on grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the
above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such Action other than before one of the above-named courts. Notwithstanding the previous
sentence a party may commence any Action in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. 
  

 -37- 

 12.11.2 Venue. Each party agrees that for any Action between the parties arising
in whole or in part under or in connection with this Agreement, such party bring Actions only in the Borough of Manhattan. Each party further waives any claim and will not assert that venue should properly lie in any other location within the
selected jurisdiction. 
  
 12.11.3 Service of
Process. Each party hereby (a) consents to service of process in any Action between the parties arising in whole or in part under or in connection with this Agreement in any manner permitted by New York law, (b) agrees that service of process
made in accordance with clause (a) or made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 12.1, will constitute good and valid service of process in any such Action and (c) waives and agrees
not to assert (by way of motion, as a defense, or otherwise) in any such Action any claim that service of process made in accordance with clause (a) or (b) does not constitute good and valid service of process. 
  
 12.12. Specific Performance. Each of the parties
acknowledges and agrees that the other parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached or violated. Accordingly, each of
the parties agrees that, without posting bond or other undertaking, the other parties will be entitled to an injunction or injunctions to prevent breaches or violations of the provisions of this Agreement and to enforce specifically this Agreement
and the terms and provisions hereof in any Action instituted in any court of the United States or any state thereof having jurisdiction over the parties and the matter in addition to any other remedy to which it may be entitled, at law or in equity.
Each party further agrees that, in the event of any action for specific performance in respect of such breach or violation, it will not assert that the defense that a remedy at law would be adequate. 
  
 12.13. Waiver of Jury Trial. TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY
COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED
TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
  

 -38- 

 IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as an agreement under seal as of
the date first above written. 
  

											
	 THE BUYER:
	 	 	 	ENOVIA CORP.
					
	 	 	 	 	 	 	 By:
	 	 /s/ JOEL R. LEMKE

	 	 	 	 	 	 	 	 	 Name:
	 	 Joel R. Lemke

	 	 	 	 	 	 	 	 	 Title:
	 	 CEO

			
	 THE COMPANY:
	 	 	 	SOFTSRM, LLC
					
	 	 	 	 	 	 	 By:
	 	 /s/ SAMIR BHARGAVA

	 	 	 	 	 	 	 	 	 Name:
	 	 Samir Bhargava

	 	 	 	 	 	 	 	 	 Title:
	 	 President

			
	 THE SELLER:
	 	 	 	i2 TECHNOLOGIES U.S. INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ MICHAEL E. MCGRATH

	 	 	 	 	 	 	 	 	 Name:
	 	 Michael E. McGrath

	 	 	 	 	 	 	 	 	 Title:
	 	 CEO and President

			
	 THE SELLER PARENT:
	 	 	 	i2 TECHNOLOGIES, INC.
					
	 	 	 	 	 	 	 By:
	 	 /s/ MICHAEL E. MCGRATH

	 	 	 	 	 	 	 	 	 Name:
	 	 Michael E. McGrath

	 	 	 	 	 	 	 	 	 Title:
	 	 CEO and President

  
 [Signature Page to LLC
Interest Purchase Agreement]Amended and Restated Agreement

 EXHIBIT 10.1 
  
 AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER 
  
 By and Among 
  
 PULITZER PUBLISHING COMPANY, 
  
 PULITZER INC., 
  
 and

  
 HEARST-ARGYLE TELEVISION, INC. 
  
 dated as of May 25, 1998 
  
 The undersigned, Dean H. Blythe, as Secretary of Hearst-Argyle Television, Inc., hereby
certifies that the within Amended and Restated Agreement and Plan of Merger was approved and adopted by the affirmative vote of a majority of the outstanding shares of Series A Common Stock, Series B Common Stock, Series A Preferred Stock and Series
B Preferred Stock, voting together as one class, of Hearst- Argyle Television, Inc. 
  
 March 17, 1999 
  

					
			
	By:	 	 	 	/S/    DEAN H.
BLYTHE        
	 	 	 Name:
	 	Dean H. Blythe
	 	 	 Title:
	 	Secretary

  
 The undersigned, James V.
Maloney, as Secretary of Pulitzer Publishing Company, hereby certifies that the within Amended and Restated Agreement and Plan of Merger was approved and adopted by the affirmative vote of the holders of a majority of the outstanding shares of
Common Stock and Class B Common Stock, voting together as a single class, of Pulitzer Publishing Company. 
  

					
			
	By:	 	 	 	/S/    JAMES V.
MALONEY        
	 	 	 Name:
	 	James V. Maloney
	 	 	 Title:
	 	Secretary

  
 March 17, 1999 

  
 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page

	 ARTICLE I
	  	THE MERGER	  	 
	 1.01.
	  	 THE MERGER
	  	6
	 1.02.
	  	 EFFECT OF THE MERGER ON CAPITAL STOCK
	  	6
	 1.03.
	  	 EFFECTIVE TIME OF THE MERGER
	  	7
	 1.04.
	  	 EXCHANGE OF CERTIFICATES
	  	7
	 1.05.
	  	DISTRIBUTION WITH RESPECT TO SHARES REPRESENTED BY UNEXCHANGED	  	 
	 	  	 CERTIFICATES
	  	8
	 1.06.
	  	 NO FRACTIONAL SHARES
	  	9
	 1.07.
	  	 NO LIABILITY
	  	9
	 1.08.
	  	 LOST CERTIFICATES
	  	9
			
	ARTICLE II	  	CERTAIN PRE-MERGER TRANSACTIONS	  	 
	 2.01.
	  	 AMENDMENTS TO CHARTERS; FINANCING
	  	9
	 2.02.
	  	CONTRIBUTION OF ASSETS TO AND ASSUMPTION OF LIABILITIES BY NEWCO; DISTRIBUTION OF NEWCO STOCK	  	10
			
	ARTICLE III	  	REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY AND NEWCO	  	 
	 3.01.
	  	 ORGANIZATION AND AUTHORITY
	  	11
	 3.02.
	  	 NO BREACH
	  	12
	 3.03.
	  	 CONSENTS AND APPROVALS
	  	12
	 3.04.
	  	 APPROVALS OF THE BOARDS; FAIRNESS OPINION; VOTE REQUIRED
	  	12
	 3.05.
	  	 CAPITALIZATION
	  	13
	 3.06.
	  	 SEC REPORTS
	  	13
	 3.07.
	  	 FINANCIAL STATEMENTS
	  	14
	 3.08.
	  	 ABSENCE OF CERTAIN CHANGES
	  	14
	 3.09.
	  	 ABSENCE OF UNDISCLOSED LIABILITIES
	  	14
	 3.10.
	  	 COMPLIANCE WITH LAW
	  	14
	 3.11.
	  	 TAXES
	  	14
	 3.12.
	  	 LITIGATION
	  	15
	 3.13.
	  	 BROKERS AND FINDERS
	  	15
	 3.14.
	  	 ENVIRONMENTAL MATTERS
	  	15
			
	ARTICLE IV	  	REPRESENTATIONS AND WARRANTIES REGARDING BROADCASTING	  	 
	 4.01.
	  	 ORGANIZATION AND AUTHORITY
	  	15
	 4.02.
	  	 CAPITALIZATION
	  	16
	 4.03.
	  	 FINANCIAL STATEMENTS
	  	16
	 4.04.
	  	 ABSENCE OF CERTAIN CHANGES
	  	16
	 4.05.
	  	 ABSENCE OF UNDISCLOSED LIABILITIES
	  	16
	 4.06.
	  	 COMPLIANCE WITH LAW
	  	16
	 4.07.
	  	 STATION NETWORK AFFILIATION AGREEMENTS
	  	16
	 4.08.
	  	 CONDITION OF ASSETS; TITLE TO PROPERTIES; ENCUMBRANCES
	  	17

  

 I-2 

					
	 	  	 	  	Page

	 4.09.
	  	 LITIGATION
	  	18
	 4.10.
	  	 EMPLOYEE BENEFIT MATTERS
	  	18
	 4.11.
	  	 LABOR MATTERS
	  	19
	 4.12.
	  	 ENVIRONMENTAL MATTERS
	  	20
	 4.13.
	  	 COMPLAINTS
	  	20
	 4.14.
	  	 REPORTS
	  	20
			
	ARTICLE V	  	REPRESENTATIONS AND WARRANTIES OF ACQUIROR	  	 
	 5.01.
	  	 ORGANIZATION AND AUTHORITY
	  	20
	 5.02.
	  	 NO BREACH
	  	21
	 5.03.
	  	 CONSENTS AND APPROVALS
	  	21
	 5.04.
	  	 APPROVAL OF THE BOARD; VOTE REQUIRED
	  	21
	 5.05.
	  	 CAPITALIZATION
	  	22
	 5.06.
	  	 SEC REPORTS
	  	22
	 5.07.
	  	 FINANCIAL STATEMENTS
	  	22
	 5.08.
	  	 ABSENCE OF CERTAIN CHANGES
	  	23
	 5.09.
	  	 ABSENCE OF UNDISCLOSED LIABILITIES
	  	23
	 5.10.
	  	 COMPLIANCE WITH LAW
	  	23
	 5.11.
	  	 TAXES
	  	23
	 5.12.
	  	 LITIGATION
	  	23
	 5.13.
	  	 BROKERS AND FINDERS
	  	23
	 5.14.
	  	 SOLVENCY
	  	24
	 5.15.
	  	 FCC QUALIFICATION
	  	24
			
	ARTICLE VI	  	OTHER AGREEMENTS	  	 
	 6.01.
	  	 NO SOLICITATION
	  	24
	 6.02.
	  	 CONDUCT OF BUSINESS OF THE COMPANY
	  	25
	 6.03.
	  	 CONDUCT OF BUSINESS OF BROADCASTING
	  	26
	 6.04.
	  	 CONDUCT OF BUSINESS OF ACQUIROR
	  	27
	 6.05.
	  	 ACCESS TO INFORMATION
	  	27
	 6.06.
	  	 SEC FILINGS
	  	28
	 6.07.
	  	 REASONABLE BEST EFFORTS
	  	30
	 6.08.
	  	 PUBLIC ANNOUNCEMENTS
	  	30
	 6.09.
	  	 TAX MATTERS
	  	30
	 6.10.
	  	 NOTIFICATION
	  	35
	 6.11.
	  	 EMPLOYEE BENEFIT MATTERS
	  	35
	 6.12.
	  	 EMPLOYEE STOCK OPTIONS
	  	38
	 6.13.
	  	 MEETINGS OF STOCKHOLDERS
	  	38
	 6.14.
	  	 REGULATORY AND OTHER AUTHORIZATIONS
	  	38
	 6.15.
	  	 FURTHER ASSURANCES
	  	40
	 6.16.
	  	 IRS RULING
	  	40
	 6.17.
	  	 RECORDS RETENTION
	  	40

  

 I-3 

					
	 	  	 	  	Page

	 6.18.
	  	 STOCK EXCHANGE LISTING
	  	41
	 6.19.
	  	 COMPANY NAMES
	  	41
	 6.20.
	  	 OTHER AGREEMENTS
	  	41
	 6.21.
	  	 FORM 8-K; PROVISION OF FINANCIAL STATEMENTS
	  	41
	 6.22.
	  	 WORKING CAPITAL ADJUSTMENT
	  	41
	 6.23.
	  	 CAPITAL EXPENDITURES
	  	42
	 6.24.
	  	 EXCESS CASH
	  	42
	 6.25.
	  	 INDEMNITY RELATING TO CERTAIN LITIGATION
	  	43
	 6.26.
	  	 CANCELLATION OF INTERCOMPANY ARRANGEMENTS
	  	43
	 6.27.
	  	 NETWORK AFFILIATION AGREEMENTS
	  	43
	 6.28.
	  	 GROSS-UP MATTERS
	  	43
	 6.29.
	  	 AFFILIATE LETTERS; FCC LETTERS
	  	44
			
	ARTICLE VII	  	CLOSING AND CLOSING DATE; CONDITIONS TO CLOSING	  	 
	 7.01.
	  	 CLOSING AND CLOSING DATE
	  	44
	 7.02.
	  	CONDITIONS TO THE OBLIGATIONS OF THE COMPANY, NEWCO AND ACQUIROR	  	44
	 7.03.
	  	 CONDITIONS TO THE OBLIGATIONS OF THE COMPANY AND NEWCO
	  	45
	 7.04.
	  	 CONDITIONS TO OBLIGATIONS OF ACQUIROR
	  	46
			
	ARTICLE VIII	  	TERMINATION	  	 
	 8.01.
	  	 TERMINATION
	  	46
	 8.02.
	  	 EFFECT OR TERMINATION
	  	47
	 8.03.
	  	 FEES AND EXPENSES
	  	47
			
	ARTICLE IX	  	MISCELLANEOUS	  	 
	 9.01.
	  	 SURVIVAL OF REPRESENTATIONS AND WARRANTIES
	  	48
	 9.02.
	  	 ENTIRE AGREEMENT
	  	48
	 9.03.
	  	 NOTICES
	  	48
	 9.04.
	  	 GOVERNING LAW
	  	49
	 9.05.
	  	 KNOWLEDGE OF THE COMPANY
	  	49
	 9.06.
	  	 PARTIES IN INTEREST
	  	49
	 9.07.
	  	 COUNTERPARTS
	  	49
	 9.08.
	  	 PERSONAL LIABILITY
	  	49
	 9.09.
	  	 BINDING EFFECT; ASSIGNMENT
	  	49
	 9.10.
	  	 AMENDMENT
	  	50
	 9.11.
	  	 EXTENSION; WAIVER
	  	50
	 9.12.
	  	 LEGAL FEES; COSTS
	  	50
	 9.13.
	  	 DRAFTING
	  	50
	 9.14.
	  	 CONSENT TO JURISDICTION AND SERVICE OF PROCESS
	  	50
			
	ARTICLE X	  	DEFINITIONS	  	 
	 10.01
	  	 DEFINITIONS
	  	50
	 10.02
	  	 INTERPRETATION
	  	58

  

 I-4 

  
 EXHIBITS AND SCHEDULES

  

			
	Exhibit A	  	Form of Company Charter Amendment
	Exhibit B	  	Form of Newco Charter Amendment
	Exhibit C	  	Form of Contribution and Assumption Agreement
	Exhibit D	  	Form of Registration Rights Agreement
	Exhibit E	  	Form of FCC Agreement
	Exhibit F	  	Form of Board Representation Agreement
	Exhibit G	  	Form of Arizona Diamondbacks Agreement
	Exhibit H	  	Form of Acquiror Voting Agreement
	Exhibit I	  	Form of Pulitzer Voting Agreement
	Exhibit J	  	Form of Affiliate Letter
		
	Schedule 1.01	  	Directors of Surviving Corporation
	Schedule 3.02	  	Right of Termination, Cancellation, Modification or Acceleration and Requirement of Notice or Approval
	Schedule 3.09	  	Additional Company Liabilities
	Schedule 3.11(b)	  	Material Claims and Investigations for Taxes of Company or Its Subsidiaries
	Schedule 3.12	  	Company Litigation
	Schedule 3.14	  	Environmental Liabilities of Company
	Schedule 4.03	  	Broadcasting Financial Statements
	Schedule 4.05	  	Additional Broadcasting Liabilities
	Schedule 4.06	  	Material Licenses and Authorizations held by Broadcasting
	Schedule 4.07	  	Station Network Affiliation Agreements
	Schedule 4.08(b)	  	Personal Property Permitted Exceptions
	Schedule 4.08(c)	  	Personal Property Leases
	Schedule 4.08(d)(1)	  	Real Property
	Schedule 4.08(d)(2)	  	Real Estate Exceptions
	Schedule 4.09	  	Broadcasting Litigation
	Schedule 4.10(a)	  	Employee Plans Currently Maintained or Contributed to by the Company or PBC for the Benefit of any Broadcasting Employee
	Schedule 4.11(a)	  	Labor or Collective Bargaining Agreements of Broadcasting
	Schedule 4.11(b)	  	Broadcasting Employees Represented by Labor Organizations
	Schedule 4.12(a)	  	Environmental Liabilities of Broadcasting
	Schedule 5.02(a)	  	Right of Termination, Cancellation, Modification or Acceleration and Requirement of Notice or Approval Relating to Agreements or Obligations of Acquiror
	Schedule 5.02(b)	  	Restrictions
	Schedule 5.05(a)	  	Existing Options, Warrants, Etc. of Acquiror
	Schedule 5.09	  	Additional Acquiror Liabilities
	Schedule 5.11(b)	  	Material Claims and Investigations for Taxes of Acquiror
	Schedule 5.15	  	Acquiror FCC Qualifications
	Schedule 6.03(a)(v)	  	1998 Broadcasting Budget
	Schedule 6.11(f)(2)	  	Employment and Related Agreements of the Company
	Schedule 6.11(f)(3)	  	Broadcasting Employees Plans Maintained Exclusively for Broadcasting Employees
	Schedule 6.11 (f)(4)	  	Post-Retirement Medical or Other Welfare Benefits Payable to Transferring Employees
	Schedule 6.11(g)	  	Participation and Severance Agreements

  

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 AMENDED AND RESTATED
AGREEMENT AND PLAN OF MERGER 
  
 This Amended and Restated
Agreement and Plan of Merger (this “Agreement”), dated as of May 25, 1998, is made by and among Pulitzer Publishing Company, a Delaware corporation (the “Company”), Pulitzer Inc., a Delaware corporation and wholly owned
subsidiary of the Company (“Newco”), and Hearst-Argyle Television, Inc., a Delaware corporation (“Acquiror”). 
  
 RECITALS 
  
 WHEREAS, the Boards of Directors of the Company, Newco and Acquiror have determined that it is in the best interests of their respective stockholders to
enter into this Agreement which, among other things, provides for (i) the Company to contribute to Newco or its wholly-owned Subsidiary certain assets of the Company (other than those assets described in the Contribution Agreement as being retained
by the Company) and to distribute to its stockholders shares of capital stock of Newco so that the stockholders of the Company will become the stockholders of Newco; and (ii) the Company (immediately following such contribution and distribution) to
merge with and into Acquiror, as a result of which the stockholders of the Company immediately prior to such merger will become stockholders of Acquiror; and 
  
 WHEREAS, for federal income tax purposes, it is intended that such transactions will qualify as reorganizations within the meaning of Sections
368(a)(1)(D) and 368(a)(1)(A) of the Code, respectively; and 
  
 WHEREAS, the parties hereto have determined to amend certain provisions of this Agreement and to amend and restate this Agreement in accordance herewith. 
  
 NOW, THEREFORE, in consideration of the foregoing and the representations, warranties and agreements set forth below, the
parties hereto agree as follows: 
  
 ARTICLE I 

 
 THE MERGER 
  
 1.01. THE MERGER. Subject to the terms and conditions hereof, at the
Effective Time: (i) the Company shall be merged with and into Acquiror (the “Merger”) and the separate existence of the Company shall cease and Acquiror shall continue as the surviving corporation in the Merger (the “Surviving
Corporation”); (ii) the Articles of Incorporation of Acquiror, as in effect immediately prior to the Effective Time, shall continue as the Articles of Incorporation of the Surviving Corporation; (iii) the Bylaws of Acquiror, as in effect
immediately prior to the Effective Time, shall continue as the Bylaws of the Surviving Corporation; (iv) the Persons listed on Schedule 1.01 shall be the directors of the Surviving Corporation; and (v) the officers of Acquiror immediately
prior to the Effective Time shall continue as the officers of the Surviving Corporation. From and after the Effective Time, the Merger will have all the effects provided by applicable law. 
  
 1.02. EFFECT OF THE MERGER ON CAPITAL STOCK. At the Effective Time, by virtue
of the Merger and without any action on the part of the holder of any shares of capital stock: 
  
 (a) Subject to Sections 1.02(b) and 1.02(e) hereof, each share of Company Stock issued and outstanding immediately prior to the
Merger shall be converted into and shall become that number of fully paid and nonassessable shares of Acquiror Common Stock equal to the Common Stock Conversion Number. 
  
 (b) Each share of Company Stock issued and outstanding immediately prior to the Merger and owned directly or
indirectly by the Company as treasury stock, by Newco or by any of the Company’s or Newco’s respective Subsidiaries shall be cancelled, and no consideration shall be delivered in exchange therefor. 
  
 (c) Each share of the capital stock of Acquiror issued and
outstanding immediately prior to the Merger shall remain outstanding. 
  
 (d) “Common Stock Conversion Number” shall mean the quotient obtained by dividing (i) the aggregate number of shares of Acquiror Common Stock into which Company Stock shall be converted (the 

  

 I-6 

 
“Aggregate Shares Delivered”) by (ii) the number of shares of Company Stock outstanding immediately prior to the Effective Time (the
“Outstanding Company Stock”). 
  
 For purposes hereof,
the Aggregate Shares Delivered shall equal the quotient obtained by dividing the Aggregate Consideration by $31.00. 
  
 For purposes hereof, the “Aggregate Consideration” shall be $1,150,000,000. 
  
 Without limiting the provisions of Section 6.04, if, between the date hereof and the Effective Time, the outstanding
shares of Acquiror Common Stock shall have been changed into a different number of shares or a different class, by reason of any stock dividend, subdivision, reclassification, recapitalization, split, combination or exchange of shares, or if any
extraordinary dividend or distribution is made with respect to the Acquiror Common Stock, then the Aggregate Shares Delivered shall be correspondingly adjusted to reflect such stock dividend, subdivision, reclassification, recapitalization, split,
combination or exchange of shares, extraordinary dividend or distribution or other similar event. 
  
 (e) The holder of any shares (“Dissenting Shares”) of Company Stock outstanding immediately prior to the Merger that has validly
exercised such holder’s appraisal rights, if any, under the Delaware General Corporation Law (the “DGCL”) shall not be entitled to receive, in respect of the shares of Company Stock as to which such holder has validly exercised
appraisal rights, shares of Acquiror Common Stock unless and until such holder shall have failed to perfect, or shall have effectively withdrawn or lost, such holder’s right to payment for such holder’s shares of Company Stock under the
DGCL. In such event, such holder shall be entitled to receive the Acquiror Common Stock (in addition to the shares of either Newco Common Stock or Newco Class B Common Stock received pursuant to the Distribution) which such holder would have been
entitled to receive had such holder not exercised appraisal rights. The Company shall give Acquiror prompt notice upon receipt by the Company (i) prior to or at the meeting of stockholders at which the Merger, this Agreement and the Company Charter
Amendment are voted upon, of any written objection thereto or written demand for appraisal of shares (any stockholder duly making such objection being hereinafter called a “Dissenting Stockholder”) and (ii) any other notices or
communications made after such time by a Dissenting Stockholder which pertains to appraisal rights. The Company agrees that, prior to the Effective Time, except with the written consent of Acquiror, it will not voluntarily make any payment with
respect to, or settle or offer to settle, any such demand. Each Dissenting Stockholder who becomes entitled under the DGCL to payment for such holder’s shares of Company Stock shall receive payment therefor after the Effective Time from the
Surviving Corporation. 
  
 1.03. EFFECTIVE TIME OF THE MERGER.
Subject to the terms and conditions set forth in this Agreement, a certificate of merger shall be duly prepared, executed and acknowledged by Acquiror and the Company and thereafter delivered to the Secretary of State of the State of Delaware (the
“Certificate of Merger”) for filing pursuant to the DGCL on the Closing Date. The Merger shall become effective upon the filing of the Certificate of Merger with such Secretary of State on the Closing Date (the “Effective Time”).

  
 1.04. EXCHANGE OF CERTIFICATES. 
  
 (a) Prior to the Closing Date, the Company shall retain a bank or trust
company reasonably acceptable to Acquiror to act as exchange agent (the “Exchange Agent”) in connection with the surrender of certificates evidencing shares of Company Stock converted into shares of Acquiror Common Stock pursuant to the
Merger. Prior to the Effective Time, Acquiror shall deposit with the Exchange Agent the shares of Acquiror Common Stock to be issued in the Merger, which shares (collectively, the “Merger Stock”) shall be deemed to be issued at the
Effective Time. At and following the Effective Time, the Surviving Corporation shall deliver to the Exchange Agent such cash as may be required, from time to time, to make payments of cash in lieu of fractional shares in accordance with Section
1.06 hereof. 
  
 (b) As soon as practicable after the
Effective Time, the Exchange Agent shall mail to each person who was, at the Effective Time, a holder of record of a certificate or certificates that immediately prior to the Effective Time evidenced Outstanding Company Stock (collectively, the
“Certificates”), other than the Company, Newco or any of their respective Subsidiaries, (i) a letter of transmittal (which shall specify that delivery of the 

  

 I-7 

 
Certificates shall be effective, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Exchange Agent and
which shall be in such form and shall have such other provisions as Acquiror and Newco shall reasonably specify) and (ii) instructions for use in effecting the surrender of the Certificates in exchange for certificates representing the Merger Stock.
Upon surrender of a Certificate for cancellation to the Exchange Agent, together with such letter of transmittal duly executed and such other documents as may be required by the Exchange Agent, the holder of such Certificate shall be entitled to
receive in exchange therefor certificates representing the shares of Merger Stock that such holder has the right to receive pursuant to the terms hereof (together with any dividend or distribution with respect thereto made after the Effective Time
to the extent provided in Section 1.05 hereof and any cash paid in lieu of fractional shares pursuant to Section 1.06), and the Certificate so surrendered shall be canceled. In the event of a transfer of ownership of Company Stock that
is not registered in the stock transfer records of the Company, a certificate representing the proper number of shares of Merger Stock may be issued to a transferee if the Certificate representing such Company Stock is presented to the Exchange
Agent, accompanied by all documents required to evidence and effect such transfer and by evidence reasonably satisfactory to Acquiror and Newco that any applicable stock transfer tax has been paid. 
  
 (c) After the Effective Time, each outstanding Certificate which theretofore
represented shares of Company Stock shall, until surrendered for exchange in accordance with this Section 1.04, be deemed for all purposes to evidence the number of full shares of Merger Stock into which the shares of Company Stock (which,
prior to the Effective Time, were represented thereby) shall have been so converted. 
  
 (d) Except as otherwise expressly provided herein, the Surviving Corporation shall pay all charges and expenses, including those of the Exchange Agent, in connection with the exchange of shares of Merger Stock for
shares of Company Stock. Any Merger Stock deposited with the Exchange Agent that remains unclaimed by the former stockholders of the Company after six months following the Effective Time shall be delivered to the Surviving Corporation, upon demand,
and any former stockholders of the Company who have not then complied with the instructions for exchanging their Certificates shall thereafter look only to the Surviving Corporation for the exchange of Certificates. 
  
 (e) Effective upon the Closing Date, the stock transfer books of the Company
shall be closed, and there shall be no further registration of transfers of shares of Company Stock thereafter on the records of the Company. 
  
 (f) All Merger Stock issued upon conversion of shares of Company Stock in accordance with the terms hereof shall be deemed to have been issued in full
satisfaction of all rights pertaining to such shares of Company Stock. 
  
 1.05. DISTRIBUTION WITH RESPECT TO SHARES REPRESENTED BY UNEXCHANGED CERTIFICATES. No dividend or other distribution declared or made after the Effective Time with respect to the Merger Stock with a record date after the Effective Time
shall be paid to the holder of any unsurrendered Certificate with respect to the shares of Merger Stock issuable upon surrender of a Certificate until the holder of such Certificate shall surrender such Certificate in accordance with Section
1.04. Subject to the effect of applicable law, following surrender of any such Certificate the Surviving Corporation shall pay, without interest, to the record holder of certificates representing shares of Merger Stock issued in exchange
therefor (i) at the time of such surrender, the amount of dividends or other distributions with a record date after the Effective Time theretofore paid with respect to such shares of Merger Stock, and (ii) at the appropriate payment date, the amount
of dividends or other distributions with a record date after the Effective Time but prior to surrender of such Certificate and a payment date subsequent to such surrender payable with respect to such shares of Merger Stock. In no event shall the
stockholders entitled to receive dividends or distributions be entitled to receive interest thereon. All such dividends or other distributions held by the Exchange Agent for payment or delivery to the holders of unsurrendered Certificates and
unclaimed at the end of one year from the Effective Time shall be repaid or redelivered by the Exchange Agent to the Surviving Corporation, after which time any holder of Certificates who has not theretofore surrendered such Certificates to the
Exchange Agent, subject to applicable law, shall look as a general creditor only to the Surviving Corporation for payment or delivery of such dividends or distributions, as the case may be. 
  

 I-8 

 1.06. NO FRACTIONAL SHARES. 
  
 (a) No certificates or scrip representing fractional shares of Acquiror Common Stock shall be issued upon the surrender of
Certificates pursuant to Section 1.04, Such fractional share interests shall not entitle the owner thereof to any rights as a security holder of Acquiror. In lieu of any such fractional shares of Acquiror Common Stock, each holder of
Outstanding Company Stock entitled to receive shares of Acquiror Common Stock in the Merger, upon surrender of a Certificate for exchange pursuant to Section 1.04, shall be entitled to receive an amount in cash (without interest), rounded to
the nearest cent, determined by multiplying the fractional interest in Acquiror Common Stock to which such holder would otherwise be entitled (after taking into account all shares of Company Stock then held of record by such holder) by the closing
sale price of a share of Acquiror Common Stock as reported on the NASDAQ or the NYSE, as the case may be, on the Closing Date. 
  
 (b) As soon as practicable after the determination of the amount of cash, if any, to be paid to holders of Company Stock in lieu of any fractional share
interests, Acquiror shall promptly deposit with the Exchange Agent cash in the required amounts and the Exchange Agent will mail such amounts, without interest, to such holders; PROVIDED, HOWEVER, that no such amount will be paid to any holder of
Certificates prior to the surrender by such holder of the Certificates which formerly represented such holder’s Company Stock. Any such amounts that remain unclaimed by the former stockholders of the Company after six months following the
Effective Time shall be delivered to the Surviving Corporation by the Exchange Agent, upon demand, and any former stockholders of the Company who have not then surrendered their Certificates shall thereafter look only to the Surviving Corporation
for payment in lieu of any fractional interests. 
  
 1.07. NO
LIABILITY. Any amounts remaining unclaimed by holders of shares on the day immediately prior to such time as such amounts would otherwise escheat to or become the property of any governmental entity shall, to the extent permitted by applicable law,
become the property of the Surviving Corporation (or Newco in the case of Newco Common Stock or Newco Class B Common Stock and dividends or distributions with respect thereto) free and clear of any claims or interest of any holder previously
entitled thereto. None of the Surviving Corporation, Newco or the Exchange Agent will be liable to any holder of shares of Company Stock for any shares of Merger Stock or any Newco Common Stock or Newco Class B Common Stock, dividends or
distributions with respect thereto or cash payable in lieu of fractional shares delivered to a state abandoned property administrator or other public official pursuant to any applicable abandoned property, escheat or similar law. 
  
 1.08. LOST CERTIFICATES. If any Certificate shall have been lost, stolen or
destroyed, upon the making of an affidavit of that fact by the person claiming such Certificate to be lost, stolen or destroyed, the Exchange Agent will issue in exchange for such lost, stolen or destroyed Certificate the shares of Merger Stock (and
any dividend or distribution with respect thereto made after the Effective Time and prior to such issuance and any cash payable in lieu of fractional shares pursuant to Section 1.06) deliverable in respect thereof as determined in accordance
with the terms hereof. When authorizing such payment in exchange for any lost, stolen or destroyed Certificate, the person to whom the Merger Stock is to be issued, as a condition precedent to the issuance thereof, shall give the Surviving
Corporation a bond satisfactory to the Surviving Corporation against any claim that may be made against the Surviving Corporation with respect to the Certificate alleged to have been lost, stolen or destroyed. 
  
 ARTICLE II 
  
 CERTAIN PRE-MERGER TRANSACTIONS 
  
 The following transactions shall occur prior to the Effective Time:

  
 2.01. AMENDMENTS TO CHARTERS; FINANCING. 
  
 (a) Prior to the Contribution, the Distribution and the Effective Time, the
Company shall amend its Certificate of Incorporation substantially as set forth in Exhibit A hereto (the “Company Charter Amendment”) and Newco shall amend and restate its Certificate of Incorporation substantially as set forth in
Exhibit B hereto (the “Newco Charter Amendment”). 
  

 I-9 

 (b) Prior to the Contribution, the Distribution and the Effective Time, the Company shall use
commercially reasonable efforts to obtain financing in the amount of $700,000,000 on terms reasonably and mutually acceptable to the Company and Acquiror, which may be secured by the cash proceeds thereof, the Broadcasting Assets or the issued and
outstanding shares of capital stock of PBC and/or the Broadcasting Subsidiaries (the “New Company Debt”). Out of the proceeds of the New Company Debt, the Company, on or before the Closing Date, shall pay or provide for the Existing
Company Debt and the Deal Expenses, and the balance of the proceeds of the New Company Debt, along with any other remaining cash and cash equivalents then owned by the Company, shall be contributed by the Company to Newco pursuant to the
Contribution and Assumption Agreement to be entered into by the Company and Newco in substantially the form attached hereto as Exhibit C (the “Contribution Agreement”). The Acquiror shall assist the Company in any manner reasonably
requested by the Company in connection with obtaining the New Company Debt. The New Company Debt shall remain outstanding following the Effective Time, and the Transactions contemplated hereby shall not result in a breach or event of default or an
event, which with notice or lapse of time or both, would be a breach or event of default, or would require the repayment of the New Company Debt. 
  
 2.02. CONTRIBUTION OF ASSETS TO AND ASSUMPTION OF LIABILITIES BY NEWCO; DISTRIBUTION OF NEWCO STOCK. 
  
 (a) Prior to the Effective Time and pursuant to the terms of the Contribution
Agreement, the Company shall contribute and transfer (together with the transactions described in Section 2.02(b) below, the “Contribution”) to Newco or its wholly-owned Subsidiary all of the Company’s right, title and interest
in and to any and all assets of the Company, whether tangible or intangible and whether fixed, contingent or otherwise; PROVIDED, HOWEVER, that the Company shall not contribute to Newco or its wholly-owned Subsidiary (i) the issued and outstanding
capital stock of, Pulitzer Broadcasting Company (“PBC”) or WESH Television, Inc., KCCI Television, Inc. and WDSU Television, Inc. (collectively, the “Broadcasting Subsidiaries”); (ii) any of the assets of PBC or the Broadcasting
Subsidiaries, whether real or personal, tangible or intangible, and whether fixed, contingent or otherwise and any other assets used or held for use primarily in the business conducted by Broadcasting or the Stations (collectively, the
“Broadcasting Assets”); and (iii) the Company’s rights created pursuant to this Agreement, the Contribution Agreement and the Transaction Agreements. 
  
 (b) In consideration for the transactions described in Section 2.02(a) above, concurrently therewith and pursuant to
the Contribution Agreement, Newco shall (A) assume any and liabilities of the Company of every kind whatsoever, whether absolute, known, unknown, fixed, contingent or otherwise and cause the Company and Broadcasting to be released from the Existing
Company Debt; PROVIDED, HOWEVER, that the Company shall retain, and Newco or its wholly-owned Subsidiary will not assume and will have no liability with respect to, (i) the New Company Debt, (ii) any liabilities associated with the radio and/or
television business operations of Broadcasting or the Broadcasting Assets except as otherwise specifically provided herein, including Sections 6.06(g), 6.09, 6.11, 6.25 and 6.28, and (iii) the Company’s obligations created pursuant to
this Agreement, the Contribution Agreement and the Transaction Agreements and (B) issue and deliver to the Company shares of Newco Common Stock as set forth in the Contribution Agreement. Newco acknowledges that the liabilities to be assumed by it
pursuant to the first sentence of this Section 2.02(b) include any and all liabilities associated with any claim, action or proceeding brought by or on behalf of the holders of Company Stock in connection with the Transactions other than
liabilities with respect to which Acquiror is obligated to indemnify Newco pursuant to Sections 6.06, 6.09 and 6.25 hereof. 
  
 (c) Following the Contribution and immediately prior to the Effective Time, the Company shall distribute (the “Distribution”) certificates
representing one fully paid and nonassessable share of Newco Common Stock to the holder of each share of Company Common Stock outstanding on the record date designated for the Distribution by or pursuant to an authorization of the Board of Directors
of the Company (the “Record Date”), and certificates representing one fully paid and nonassessable share of Newco Class B Common Stock to the holder of each share of Company Class B Common Stock outstanding on the Record Date. Each share
of the capital stock of Newco issued and outstanding on the Record Date and owned directly or indirectly by the Company or any of its Subsidiaries (other than those to be distributed in accordance with the first sentence of this paragraph) shall be
cancelled at the time of the Distribution. 
  

 I-10 

 (d) The Board of Directors of the Company shall formally declare the Distribution and shall authorize the
Company to pay the Distribution immediately prior to the Effective Time, subject to the satisfaction or waiver of the conditions set forth in subsection (e) below by delivery of certificates for Newco Common Stock and Newco Class B Common Stock to
the Transfer Agent for delivery to the Persons entitled thereto. The Distribution shall be deemed effective upon notification by the Company to the Transfer Agent that the Distribution has been declared, that the conditions thereto have been waived
or satisfied and that the Transfer Agent is authorized to proceed with the distribution of Newco Common Stock and Newco Class B Common Stock. 
  
 (e) The obligations of the Company to consummate the Contribution and the Distribution hereunder shall be subject to the fulfillment of each of the
following conditions: 
  
 (i) All of the
transactions contemplated by Sections 2.01(a) and (b) and Sections 2.02(a) and (b) shall have been consummated. 
  
 (ii) Each condition to the Closing set forth in Sections 7.02, 7.03 and 7.04 hereof, other than the condition set forth in
Section 7.02(b) hereof, as to the consummation of the Transactions contemplated by this Article II, shall have been satisfied or waived. 
  
 (iii) The Board of Directors of the Company shall be reasonably satisfied that, after giving effect to the Contribution, (i) the Company
will not be insolvent and will not have unreasonably small capital with which to engage in its business, (ii) the Company will be able to pay its debts when they come due, and (iii) the Company’s surplus would be sufficient to permit, without
violation of Section 170 of the DGCL, the Distribution. 
  
 (f)
Consummation of the Distribution is a condition precedent to Acquiror’s acquisition of the Retained Business pursuant to the Merger. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND 
 WARRANTIES REGARDING THE COMPANY AND NEWCO

  
 The Company and Newco jointly and severally represent and
warrant to Acquiror as follows: 
  
 3.01. ORGANIZATION AND
AUTHORITY. Each of the Company and Newco is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation. Each of the Company and Newco has all requisite corporate power and authority to
execute and deliver this Agreement and, subject to the items referred to in Sections 3.02 and 3.03, to consummate the Transactions. Subject to the items referred to in Sections 3.02 and 3.03, all necessary action, corporate or
otherwise, required to have been taken by or on behalf of the Company and Newco by applicable law, their respective charter documents or otherwise to authorize (i) the approval, execution and delivery on behalf of the Company and Newco of this
Agreement and (ii) the performance by the Company and Newco of their respective obligations under this Agreement and the consummation of the Transactions has been taken, except that this Agreement and the Company Charter Amendment must be approved
by the stockholders of the Company. Assuming that this Agreement and each other agreement contemplated hereby (each a “Transaction Agreement”) constitutes or will constitute, as the case may be, a legal, valid and binding agreement of
Acquiror, this Agreement and each other Transaction Agreement to which the Company or Newco is or will be a party constitutes or will constitute, as the case may be, a valid and binding agreement of each of the Company and Newco, as the case may be,
enforceable against each of them in accordance with its terms, except (i) as the same may be limited by applicable bankruptcy, insolvency, moratorium or similar laws of general application relating to or affecting creditors’ rights, including
the effect of statutory or other laws regarding fraudulent conveyances and preferential transfers, and (ii) for the limitations imposed by general principles of equity. The foregoing exceptions are hereinafter referred to as the “Enforceability
Exceptions.” The Company has heretofore made available to Acquiror true and complete copies of the Certificate of Incorporation and Bylaws of the Company and Newco as in effect on the date hereof. 
  

 I-11 

 3.02. NO BREACH. The execution and delivery of this Agreement by each of the Company and Newco do not,
and the consummation of the Transactions hereby by each of the Company and Newco will not, (i) assuming that the requisite stockholder approval is obtained, violate or conflict with the Certificate of Incorporation or Bylaws of the Company or Newco,
or (ii) except as set forth on Schedules 3.02 hereto or subject to obtaining the approvals and making the filings described in Section 3.03, constitute a breach or default (or an event that with notice or lapse of time or both would
become a breach or default) of, or give rise to any third-party right of termination, cancellation, modification or acceleration under, or otherwise require notice or approval under, any agreement, understanding or undertaking to which the Company
or Newco or any of their respective Subsidiaries is a party or by which any of them is bound, or give rise to any Lien on any of their properties, except where such breach, default, Lien, third-party right, cancellation, modification or acceleration
would not have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially interfere with or delay the Transactions, or (iii) subject to obtaining the approvals and making the filings described in Section
3.03 hereof, constitute a violation of any statute, law, ordinance, rule, regulation, judgment, decree, order or writ of any judicial, arbitral, public, or governmental authority having jurisdiction over the Company or any of its Subsidiaries or
Newco or any of its Subsidiaries or any of their respective properties or assets except as would not have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially interfere with or delay the Transactions.

  
 3.03. CONSENTS AND APPROVALS. Neither the execution and
delivery of this Agreement nor the consummation of the Transactions by the Company and Newco will require any License from, or filing with or notification to, any governmental or regulatory authority, except (i) for filings required under the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), (ii) for filings required under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder (the “Exchange Act”), (iii) for filings under state securities or “blue sky” laws, (iv) for filings and approvals required by the rules and regulations of the NYSE, (v) for notification pursuant to, and expiration or
termination of the waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder (the “HSR Act”), (vi) for the filing of the Certificate of Merger as set
forth in Article I hereof, (vii) for the filing of the Company Charter Amendment and the Newco Charter Amendment with the Secretary of State of the State of Delaware and appropriate documents with the relevant authorities of other states in
which the Company and Newco and their respective Subsidiaries are qualified to do business, (viii) for consents or waivers from the relevant governmental entities necessary to transfer ownership of Broadcasting’s Federal Communications
Commission (“FCC”) Licenses to Acquiror, and (ix) where the failure to obtain such Licenses, or to make such filings or notifications, would not prevent the Company or Newco from performing its respective obligations under this Agreement
without having a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially interfere with or delay the Transactions; PROVIDED, HOWEVER, that no representation or warranty is made with respect to the foregoing
relating to, or arising by reason of, the New Company Debt or the legal or regulatory status of Acquiror or the facts pertaining specifically to it. 
  
 3.04. APPROVALS OF THE BOARDS; FAIRNESS OPINION; VOTE REQUIRED. The Boards of Directors of the Company and Newco have each, by resolutions duly adopted at
meetings duly called and held, unanimously approved and adopted this Agreement, the Merger, the Contribution and the Distribution, and the other Transactions on the material terms and conditions set forth herein. The transactions contemplated by the
Pulitzer Voting Agreement have been duly and validly approved by the Board of Directors of the Company prior to the execution and delivery of the Pulitzer Voting Agreement in accordance with Section 203 of the DGCL. The Board of Directors of the
Company has declared the advisability of the Company Charter Amendment and recommended adoption of the Company Charter Amendment and this Agreement by the stockholders of the Company and directed that the Company Charter Amendment and this Agreement
be submitted to the stockholders of the Company for their consideration, and no other corporate proceedings on the part of the Company or its stockholders are necessary to authorize the execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the Transactions, other than obtaining the approval of the Company’s stockholders described below. The Board of Directors of the Company has 

  

 I-12 

 
received the opinion, as of the date of this Agreement, of Goldman Sachs, one of the financial advisors to the Company, that the consideration to be received
by the holders of shares of the Company Stock in the Merger and the Distribution, taken as a whole, is fair to such holders from a financial point of view. The vote of a majority of all outstanding shares of Company Stock entitled to vote thereon,
voting together as a single class, and the vote of a majority of the outstanding shares of Company Common Stock entitled to vote thereon, voting separately as a class, in favor of the Company Charter Amendment are the only votes of the holders of
any class or series of the capital stock of the Company necessary to approve the Company Charter Amendment under applicable law and the Company’s Certificate of Incorporation and Bylaws. The vote of a majority of all outstanding shares of
Company Stock entitled to vote thereon, voting together as a single class, in favor of the adoption of this Agreement, are the only votes of the holders of any class or series of the capital stock of the Company necessary to adopt this Agreement and
approve the Merger under applicable law and the Company’s Certificate of Incorporation and Bylaws. 
  
 3.05. CAPITALIZATION. 
  
 (a) As of the date of this Agreement, the authorized capital Stock of the Company consists of (i) 100,000,000 shares of Company Common Stock, (ii)
50,000,000 shares of Company Class B Common Stock, and (iii) 25,000,000 shares of preferred stock, par value $0.01 per share (the “Company Preferred Stock”). As of April 30, 1998, there were issued and outstanding 6,897,008 shares of
Company Common Stock and 15,423,859 shares of Company Class B Common Stock. All such outstanding shares are duly authorized, validly issued and fully paid and nonassessable. Since April 30, 1998 no shares of Company Stock have been issued except
upon exercise of options outstanding on such date or restricted stock or purchases pursuant to the Employee Stock Purchase Plan. There are no shares of Company Preferred Stock issued and outstanding. There are no preemptive or other similar rights
available to the existing holders of the capital stock of the Company. Other than options, restricted stock and shares granted or issuable pursuant to the Employee Stock Purchase Plan, the Company Option Plans, and the Company’s restricted
stock plan, or other than as contemplated by this Agreement, there are no outstanding options, warrants, rights, puts, calls, commitments, or other Contracts issued by or binding upon the Company or any of its Subsidiaries requiring or providing
for, and there are no outstanding debt or equity securities of the Company or its Subsidiaries which, upon the conversion, exchange or exercise thereof, would require or provide for, the issuance, transfer or sale by the Company or any of its
Subsidiaries of any new or additional equity interests in the Company, PBC or the Broadcasting Subsidiaries (or any other securities of the Company which, with notice, lapse of time or payment of monies, are or would be convertible into or
exercisable or exchangeable for equity interests in the Company, PBC or the Broadcasting Subsidiaries). Except for the Voting Trust Agreement, dated June 19, 1995 (as it may be amended to permit conversion of Company Class B Common Stock to Company
Common Stock in accordance with the Company’s certificate of incorporation), between certain holders of the Company Class B Common Stock and the Trustees (as defined therein), and except as otherwise contemplated by this Agreement, there are no
voting trusts or other agreements or understandings to which the Company or any of its Subsidiaries is a party with respect to the voting of capital stock of the Company. 
  
 (b) As of the date of this Agreement, the authorized capital stock of Newco consists of 1,000 common shares, par value $100
per share (the “Newco Common Shares”). Upon the filing of the Newco Charter Amendment with the Secretary of State of the State of Delaware, the authorized capital stock of Newco will consist of (i) 100,000,000 shares of Newco Common Stock
(ii) 100,000,000 shares of Newco Class B Common Stock; and (iii) 100,000,000 shares of preferred stock, par value $0.01 per share, (the “Newco Preferred Stock”). As of the date of this Agreement, there are issued and outstanding 100 Newco
Common Shares, all of which are owned by the Company, and no other shares of capital stock of Newco. 
  
 3.06. SEC REPORTS. The Company has filed all forms, reports and documents required to be filed by it with the Securities and Exchange Commission (the
“SEC”) since January 1, 1997 (collectively, the “Company’s SEC Reports”). The Company’s SEC Reports have complied in all material respects with all applicable requirements of the Securities Act and the Exchange Act. As
of their respective dates, none of the Company’s SEC Reports, including any financial statements or schedules included or incorporated by reference 

  

 I-13 

 
therein, contained any untrue statements of a material fact or omitted to state a material fact required to be stated or incorporated by reference therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 3.07. FINANCIAL STATEMENTS. The (i) audited consolidated financial statements of the Company contained in the Company’s Annual Report on Form 10-K
for the fiscal year ended December 28, 1997 (the “Company 10-K”), and (ii) unaudited condensed consolidated financial statements of the Company contained in the Company’s Quarterly Report on Form 10-Q for the three months ended March
29, 1998 (the “Company 10- Q” and together with the Company 10-K, the “Company Financial Statements”), present fairly, in all material respects, the Company’s consolidated financial position and the results of its
consolidated operations and its consolidated cash flows as of the relevant dates thereof and for the periods covered thereby in accordance with GAAP (subject to normal year-end adjustments in the case of the unaudited interim financial statements).

  
 3.08. ABSENCE OF CERTAIN CHANGES. Since the date of the
balance sheet included in the Company 10-Q, except as contemplated or disclosed by this Agreement, the Company and its Subsidiaries have conducted their respective businesses in the ordinary course of business consistent with past practice, and
there has not been any change, event or condition of any character that, individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect on the Company and its Subsidiaries taken as a whole or materially
interfere with or delay the Transactions. 
  
 3.09. ABSENCE OF
UNDISCLOSED LIABILITIES. To the knowledge of the Company, except as set forth in Schedule 3.09 or otherwise disclosed in this Agreement, neither the Company nor any of its Subsidiaries has any obligation or liability of any kind whatsoever,
whether accrued, contingent, absolute, determined, determinable or otherwise, of a type required by GAAP to be disclosed in a balance sheet of the Company or any of its Subsidiaries except (i) such liabilities and obligations that are reflected in
the Company Financial Statements or disclosed in the notes thereto, (ii) liabilities and obligations incurred in the ordinary course of business after March 29, 1998, and (iii) liabilities and obligations that will not, individually or in the
aggregate, have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially interfere with or delay the Transactions. 
  

3.10. COMPLIANCE WITH LAW. The Company and its Subsidiaries (other than the Broadcasting Subsidiaries) hold all Licenses from all governmental
authorities necessary for the lawful conduct of their respective businesses, except where the failure to hold any such License would not have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially
interfere with or delay the Transactions. To the Company’s knowledge, the Company has not violated, and is not in violation of, any such Licenses or any applicable Laws of any governmental authorities, except where such violations do not and,
insofar as reasonably can be foreseen, will not have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole or materially interfere with or delay the Transactions. 
  
 3.11. TAXES. 
  
 (a) All Company Consolidated Income Tax Returns and any other material Tax Returns of the Company and Broadcasting required
to have been filed on or before the date hereof have been filed with the appropriate governmental agencies in all jurisdictions in which such Tax Returns were required to have been filed. All of such Tax Returns were true, correct and complete in
all material respects and all Taxes shown to be due on such Tax Returns have been paid. All material Taxes payable by or with respect to the Company and its Subsidiaries but not reflected on any Tax Return required to have been filed prior to the
date of the most recent balance sheet included in the Company 10-Q have been fully paid or adequate provision therefor has been made and reflected on such balance sheet. 
  
 (b) Except as set forth on Schedule 3.11(b) hereto, there is no claim or investigation involving an amount greater
than $1,000,000 pending or threatened against the Company or any of its Subsidiaries for past Taxes, and adequate provision for the claims or investigations set forth on Schedule 3.11(b) has been made as reflected on the Company Financial
Statements. Except as set forth on Schedule 3.1l(b), neither the Company nor any of 

  

 I-14 

 
its Subsidiaries has waived or extended any applicable statute of limitations relating to the assessment of federal, state or local Taxes of the Company or
any or its Subsidiaries, respectively. 
  
 (c) The Company is not,
and on the Closing Date will not be, an investment company within the meaning of Section 368(a)(2)(F)(iii) and (iv) of the Code. 
  
 (d) Except for the Technical Advice Request currently pending with the IRS relating to the examination of the 1993 and 1994 Company Consolidated Income
Tax Returns and the Closing Agreement executed by the Company on May 11, 1994, a copy of which has been furnished to Acquiror, neither the Company nor any Broadcasting Subsidiary has pending a Tax Ruling Request (as defined below) other than in
connection with the Contribution, Distribution and Merger or entered into a Closing Agreement (as defined below) with the IRS. “Tax Ruling Request,” as used in this Agreement, shall mean a request for a written ruling of a Taxing authority
relating to Taxes. “Closing Agreement,” as used in this Agreement, shall mean a material written and legally binding agreement with the IRS relating to Taxes. 
  
 (e) Neither the Company nor any Broadcasting Subsidiary has, with regard to any assets or property held or acquired by any
of them, filed a consent to the application of Section 341(f)(2) of the Code, or agreed to have Section 341(f)(2) of the Code apply to any disposition of a subsection (f) asset (as such term is defined in Section 341(f)(4) of the Code) owned by the
Company or any Broadcasting Subsidiary. 
  
 3.12. LITIGATION.
Except as is set forth on Schedule 3.12, there is no suit, action, proceeding or investigation pending against or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries (other than the
Broadcasting Subsidiaries) or any of their respective material properties nor, to the knowledge of the Company, is there any judgment, decree, inquiry, rule or order outstanding against the Company or any of its Subsidiaries (other than the
Broadcasting Subsidiaries) that would reasonably be expected to have a Material Adverse Effect on Broadcasting or on the Retained Business taken as a whole, or materially interfere with or delay the Transactions. 
  
 3.13. BROKERS AND FINDERS. Neither the Company, Newco nor any officer,
director or employee or Affiliate of the Company or Newco has employed any investment banker, broker or finder or incurred any liability for any brokerage fees, commissions or finder’s fees in connection with the Transactions, except that the
Company has employed Goldman Sachs and Huntleigh as its financial advisors. The Company has previously provided to Acquiror a written estimate of the Deal Expenses, which estimate was prepared in good faith. 
  
 3.14. ENVIRONMENTAL MATTERS. Except as set forth on Schedule 3.14, to
the knowledge of the Company there are no Environmental Liabilities of the Company or any of its Subsidiaries (other than the Broadcasting Subsidiaries) that, individually or in the aggregate, may reasonably be expected to have a Material Adverse
Effect on Broadcasting or on the Retained Business taken as a whole or may materially interfere with or delay the Transactions. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES REGARDING BROADCASTING 
  
 The Company represents and warrants to Acquirer as follows: 
  
 4.01. ORGANIZATION AND AUTHORITY. Each of PBC and the Broadcasting Subsidiaries is a corporation duly organized, validly existing and in good standing
under the laws of its state of incorporation. Each of PBC and the Broadcasting Subsidiaries is qualified to do business as a corporation and is, where applicable, in good standing, in each jurisdiction where such qualification is necessary except
where the failure to so qualify would not reasonably be expected to have a Material Adverse Effect on Broadcasting. Each of PBC and the Broadcasting Subsidiaries has all requisite corporate power and authority to own, lease and operate its
properties and to carry on its business as now being conducted, except where the failure to have such power or authority would not have a Material Adverse Effect on Broadcasting. The Company has theretofore delivered to Acquiror true and complete
copies of the certificates of incorporation and bylaws of PBC and each Broadcasting Subsidiary as currently in effect. 
  

 I-15 

 4.02. CAPITALIZATION. All of the issued and outstanding shares of capital stock of PBC are owned directly
by the Company, free and clear of any Liens, and are duly authorized, validly issued and fully paid and nonassessable. All of the issued and outstanding shares of capital stock of the Broadcasting Subsidiaries are owned, directly or indirectly, by
PBC, free and clear of any Liens, and are duly authorized, validly issued and fully paid and nonassessable. Other than as contemplated by this Agreement, there are no outstanding options, warrants, rights, puts, calls, commitments, or other
Contracts issued by or binding upon PBC or any Broadcasting Subsidiary requiring or providing for, and there are no outstanding debt or equity securities of PBC or any Broadcasting Subsidiary which upon the conversion, exchange or exercise thereof
would require or provide for, the issuance, transfer or sale by PBC or any Broadcasting Subsidiary of any new or additional equity interests in PBC or the Broadcasting Subsidiaries (or any other securities of PBC or any Broadcasting Subsidiary
which, with notice, lapse of time or payment of monies, are or would be convertible into or exercisable or exchangeable for equity interests in PBC or such Broadcasting Subsidiary). There are no voting trusts or other agreements or understandings to
which the Company, PBC or any of the Broadcasting Subsidiaries is a party with respect to the voting of the capital stock of PBC or the Broadcasting Subsidiaries. PBC and the Broadcasting Subsidiaries have not engaged in any material respect in any
businesses or other activities except for the ownership and operation of broadcast radio and/or television stations and other activities incidental thereto. 
  
 4.03. FINANCIAL STATEMENTS. The unaudited “Summary Financial Data,” “Consolidated Income Statement,” “Statement of Net
Assets” and “1998 Four Period Results” (collectively, the “Broadcasting Unaudited Financial Statements”) contained in Schedule 4.03 were prepared from the books and records of Broadcasting which books and records were
maintained in accordance with accounting principles consistently applied and present fairly, in all material respects, the financial position of Broadcasting as at the dates thereof and the results of operations and cash flows for the periods
covered thereby. 
  
 4.04. ABSENCE OF CERTAIN CHANGES. Since March
29, 1998, except as contemplated or disclosed by this Agreement, Broadcasting has conducted its business in the ordinary course consistent with past practice and there has not been any change, event or condition of any character that, individually
or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect on Broadcasting or materially interfere with or delay the Transactions. 
  
 4.05. ABSENCE OF UNDISCLOSED LIABILITIES. To the knowledge of the Company, except as set forth in Schedule 4.05 or as
otherwise disclosed in this Agreement, Broadcasting has no obligations or liabilities except (i) such liabilities and obligations that are reflected in the Broadcasting Unaudited Financial Statements or disclosed in the notes thereto, (ii)
liabilities and obligations incurred in the ordinary course of business after March 29, 1998, and (iii) liabilities and obligations that will not, individually or in the aggregate, have a Material Adverse Effect on Broadcasting or materially
interfere with or delay the Transactions. 
  
 4.06. COMPLIANCE
WITH LAW. Subject to the renewal of certain Licenses as indicated on Schedule 4.06. PBC and the Broadcasting Subsidiaries hold all Licenses from all governmental authorities necessary for the lawful conduct of Broadcasting’s business,
including any activity ancillary or incidental to the ownership or operations of the Stations, except where the failure to hold any such License would not have a Material Adverse Effect on Broadcasting or materially interfere with or delay the
Transactions. The material Licenses held by Broadcasting are set forth on Schedule 4.06. To the Company’s knowledge, neither PBC nor any of the Broadcasting Subsidiaries has violated, or is in violation of, any such Licenses or any Laws
of any governmental authorities that are applicable to Broadcasting or to the operation of the Stations or the other Broadcasting Assets, except where such violations do not, and insofar as reasonably can be foreseen will not, have a Material
Adverse Effect on Broadcasting or materially interfere with or delay the Transactions. 
  
 4.07. STATION NETWORK AFFILIATION AGREEMENTS. Each Station Network Affiliation Agreement listed on Schedule 4.07 hereto is the validly existing, legally enforceable obligation of each Broadcasting party thereto
and, to the knowledge of the Company, each other party thereto, subject to the Enforceability Exceptions. PBC and each Broadcasting Subsidiary are validly and lawfully operating under each Station Network Affiliation Agreement to which it is a
party, and PBC and each Broadcasting Subsidiary have 

  

 I-16 

 
duly complied in all material respects with all of the terms and conditions of each Station Network Affiliation Agreement to which it is a party. The Company
is not aware of any third party breach or default (or other act or omission that with notice, passage of time or both would constitute a default) under any Station Network Affiliation Agreement. 
  
 4.08. CONDITION OF ASSETS; TITLE TO PROPERTIES; ENCUMBRANCES. 
  
 (a) The material tangible personal Broadcasting Assets are in the possession
of PBC and the Broadcasting Subsidiaries and, taking into account the age of such Broadcasting Assets, are in good operating condition and repair, structurally sound, adequate for the uses and purposes for which they are being used or intended, and
are available for immediate use in the operation of the Stations, and, except as would be natural taking into account the age of such Broadcasting Assets, none of such Broadcasting Assets requires maintenance or repair other than ordinary, routine
maintenance and repairs. Except for the representations and warranties expressly stated in Articles III and IV of this Agreement, the Company disclaims all representations and warranties, express or implied, with respect to the Broadcasting
Assets described in this Section 4.08(a), including all implied warranties of merchantability or fitness for a particular purpose. 
  
 (b) PBC and the Broadcasting Subsidiaries are the exclusive holders of all (and none of the Company or its Newspaper Subsidiaries holds any) rights (or
leasehold interests, as the case may be) in or to all Real Property and personal, tangible and intangible property and assets primarily used or held for use in the ownership and operation of the Stations owned or operated by Broadcasting except in
the case of title to Real Property which is covered in Section 4.08(d). PBC and each Broadcasting Subsidiary has good and valid title (or valid leasehold interest in, in the case of leased personal property) to their respective personal
property, free and clear of all Liens except the following (collectively, the “Permitted Exceptions”); (i) materialmen’s, mechanics’, carriers’, workmen’s, warehousemen’s, repairmen’s, or other like Liens
arising in the ordinary course of business, or deposits to obtain the release of such Liens; (ii) Liens for current taxes not yet due and payable or to the extent the taxpayer is contesting such taxes in good faith through appropriate proceedings;
(iii) Liens or minor imperfections of title that do not materially impair the continued use and operation of the assets to which they relate and do not have a Material Adverse Effect on Broadcasting; (iv) in the case of leased personal property, the
terms and conditions of such lease; and (v) the exceptions set forth on Schedules 4.08(b) and 4.08(d)(2) hereto. Except as would not result in any Material Adverse Effect on Broadcasting, PBC and each Broadcasting Subsidiary owns or has the
lawful right to use all property necessary to operate their businesses lawfully and to maintain the same as presently conducted. 
  
 (c) Schedule 4.08 (c) lists all leases of personal property leased by PBC or the Broadcasting Subsidiaries, including all such leases with related
parties or Affiliates, pursuant to which PBC or a Broadcasting Subsidiary is obligated to make lease payments in excess of $100,000 per year. Correct and complete copies of such leases have heretofore been made available to Acquiror. Except as would
not result in a Material Adverse Effect on Broadcasting, (i) all of such leases are valid and in full force and effect, (ii) neither PBC and the Broadcasting Subsidiaries nor, to the knowledge of the Company, any other party thereto is in default
under any of such leases, and (iii) no event has occurred which with the giving of notice or the passage of time or both would constitute a default under any of such leases. 
  
 (d) Schedule 4.08(d)(1) lists (y) each parcel of owned Real Property with a book value in excess of $1,000,000, as
reflected in the audited financial statements of the Company contained in the Company 10-K, and (z) each lease of Real Property pursuant to which PBC or a Broadcasting Subsidiary is currently obligated to make payments of fixed rent in excess of
$100,000 per annum. To the knowledge of the Company, either PBC or the Broadcasting Subsidiaries has fee title to, or holds by valid and existing lease or license, the Real Property, free and clear of all Liens except for such Liens; (i) which would
not have a Material Adverse Effect on Broadcasting; (ii) which are set forth on Schedule 4.08(d)(2); (iii) which arise out of taxes or general or special assessments not yet due and payable or the validity of which is being contested in good
faith by appropriate proceedings; or (iv) which are materialmen’s, mechanics’, carriers’, workmen’s, repairmen’s, warehouseman’s or other like Liens which would not have a Material Adverse Effect on Broadcasting. The
Company has made 

  

 I-17 

 
available to Acquiror complete and accurate copies of all deeds, leases and other material agreements with respect to the Real Property. To the knowledge of
the Company, there does not exist under any leases of Real Property any default beyond any applicable notice and grace period by PBC or any Broadcasting Subsidiary which would have a Material Adverse Effect on Broadcasting. 
  
 (e) To the knowledge of the Company, neither PBC nor the Broadcasting
Subsidiaries has received written notice from any governmental or quasi governmental authority with respect to any actual or threatened taking of any material portion of the Real Property for any purpose by the exercise of the right of condemnation
or eminent domain. 
  
 (f) To the knowledge of the Company, the
Real Property has not suffered any material damage by fire or other casualty that has not heretofore been repaired. 
  
 4.09. LITIGATION. Except as is set forth in Schedule 4.09 hereto, there is no suit, action, proceeding or investigation pending against or, to the
knowledge of the Company, threatened against or affecting PBC or any Broadcasting Subsidiary or any of their respective material properties (except for proceedings or investigations affecting the television or radio industries generally) that would
reasonably be expected to adversely affect the validity or enforceability of any of the material Licenses of, or otherwise to have a Material Adverse Effect on, Broadcasting nor is there any judgment, decree, inquiry, rule or order outstanding
against PBC or any Broadcasting Subsidiary that would reasonably be expected to have a Material Adverse Effect on Broadcasting, materially interfere with or delay the Transactions or have an adverse effect on the validity or enforceability of any of
the material Licenses of Broadcasting or the Station Network Affiliation Agreements. 
  
 4.10. EMPLOYEE BENEFIT MATTERS. 
  
 (a) Schedule 4.10(a) lists each Employee Plan which is currently sponsored, maintained or contributed to by the Company, any of its Subsidiaries or any of their ERISA Affiliates for the benefit of any Broadcasting Employee (a
“Broadcasting Employee Plan”). For the purposes hereof, the term “Employee Plan” means any plan, program, contract or arrangement, whether oral or written, which (i) is an “employee benefit plan,” as such term is
defined in Section 3(3) of ERISA, whether or not subject to ERISA, or (ii) is an incentive, bonus, stock option, stock purchase, phantom stock, severance, fringe benefit or other compensatory plan, contract, or arrangement that is not an employee
benefit plan within the meaning of Section 3(3) of ERISA. No Broadcasting Employee Plan is a multiemployer plan within the meaning of Sections 3(37) and 4001(a)(3) of ERISA. 
  
 (b) The Company has delivered or made available to Acquiror true and complete copies of the plan documents, contracts,
policy statements and summary plan descriptions that currently apply to the operation or funding of each Broadcasting Employee Plan. With respect to each Broadcasting Employee Plan (including, without limitation, a plan that is a “pension
plan” within the meaning of Section 3(2) of ERISA (a “Broadcasting Pension Plan”)), the Company has delivered or made available to Acquirer, where applicable, true and complete copies of (i) the most recent annual report (5500 series)
filed with the IRS or Department of Labor, (ii) the most recent audited financial statement, (iii) the most recent actuarial valuation report, (iv) the last determination letter issued by the IRS, and (v) the most recent PBGC-l filed with PBGC.

  
 (c) Each Broadcasting Employee Plan described in Section
6.11(c), (d) or (f) has been maintained and administered substantially in accordance with its terms and with the provisions of applicable law and, with respect to each such Broadcasting Employee Plan, (i) no application, proceeding or other
matter is pending before the IRS, the Department of Labor, PBGC or any other governmental agency, (ii) there is no pending action, suit, proceeding or claim (other than routine claims for benefits) that could reasonably be expected to give rise to a
material liability or expense of the Company or PBC, and (iii) to the knowledge, of the Company, no facts exist that are likely to result in such an action, suit, proceeding or claim. A favorable IRS determination letter is currently in effect with
respect to each funded Broadcasting Pension Plan, and no subsequent amendments have been or will be adopted or other action taken which would adversely affect the qualified status of any such Broadcasting Pension Plan. 
  

 I-18 

 (d) With respect to each funded employee pension plan (within the meaning of Section 3(2) of ERISA)
maintained by the Company, any of its Subsidiaries or any of their ERISA Affiliates within six years prior to the date hereof for the benefit of any of its employees (other than a multiemployer plan within the meaning of Section 3(37) of ERISA),
where applicable, (i) there has been no termination or partial termination within the meaning of Section 411(d)(3) of the Code, except to the extent that the Transactions will result in such a partial termination; (ii) there has been no accumulated
funding deficiency, whether or not waived, within the meaning of Section 302(a)(2) of ERISA or Section 412 of the Code, and there has been no failure to make a required installment by its due date under Section 412(m) of the Code; (iii) no
non-exempt prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) has occurred which could result in the imposition of a material tax or liability against the Company or any of its Subsidiaries; and (iv) with
respect to each such plan which is covered by Title IV of ERISA, (A) no reportable event within the meaning of Section 4043(c) of ERISA has occurred, except a reportable event occurring as a result of the consummation of the transactions
contemplated by this Agreement or any prior event which will not result in a liability to the Company or any of its Subsidiaries or any of their Affiliates after the consummation of said transactions; (B) no notice of intent to terminate the plan
has been provided to participants or filed with PBGC under Section 4041 of ERISA, nor has PBGC instituted or threatened to institute any proceeding under Section 4042 of ERISA to terminate the plan; and (C) no liability has been incurred under Title
IV of ERISA to PBGC or otherwise (except for the payment of PBGC premiums) which has not been satisfied. Neither the Company, any of its Subsidiaries nor any of their ERISA Affiliates has ceased operations at a facility so as to become subject to
the provisions of Section 4068(f) of ERISA, withdrawn as a substantial employer so as to become subject to the provisions of Section 4063 of ERISA or ceased making contributions on or before the Closing Date to any such plan which is a pension plan
subject to Section 4064(a) of ERISA. 
  
 (e) Neither the Company,
any of its Subsidiaries nor any of their ERISA Affiliates has incurred or expects to incur any withdrawal liability under Title IV of ERISA (either as a contributing employer or as part of a controlled group which includes a contributing employer)
in connection with a complete or partial withdrawal from a Multiemployer Plan that will be unsatisfied at the Effective Time; and, with respect to any Multiemployer Plan to which the Company or any ERISA Affiliate is, or within the preceding six
years, was required to make or accrue a contribution, neither the Company, any of its Subsidiaries nor any of their ERISA Affiliates has received notice from such Multiemployer Plan that the plan is in reorganization or insolvency pursuant to
Sections 4241 or 4245 or ERISA or that the plan is intended to terminate or has terminated under Sections 4041A or 4042 of ERISA. 
  
 (f) The Company, its Subsidiaries and each of their ERISA Affiliates has complied in all material respects with its obligations under the provisions of
Section 4980B of the Code with respect to any group health plan. Except as identified on Schedule 4.10(a), no Broadcasting Employee Plan provides health or death benefits (whether or not insured) to Broadcasting Employees beyond the
termination of their employment or other services. 
  
 (g) All
Broadcasting Employee Plans which provide medical, dental health or long-term disability benefits are insured and, to the Company’s knowledge, claims with respect to any participant or covered dependent under any such Broadcasting Employee Plan
will not result in any uninsured liability to the Acquiror, the Company, PBC or any of their Subsidiaries. 
  
 4.11. LABOR MATTERS. 
  
 (a) Except as set forth on Schedule 4.11(a), neither PBC nor any Broadcasting Subsidiary is a party to any labor or collective bargaining agreement
and there are no labor or collective bargaining agreements which pertain to any Broadcasting employees. 
  
 (b) Except as set forth on Schedule 4.11(b), as of the date of this Agreement, (i) no employees of PBC or any of the Broadcasting Subsidiaries are
represented by any labor organization and (ii) no labor organization or group of employees of PBC or any of the Broadcasting Subsidiaries has made a pending demand for recognition 

  

 I-19 

 
or certification, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or, to the
knowledge of the Company, threatened to be brought or filed with the NLRB or any other labor relations tribunal or authority. To the knowledge of the Company, as of the date of this Agreement, there are no formal organizing activities involving a
material number of Broadcasting employees pending with, or threatened by, any labor organization. 
  
 (c) Except as would not result in a Material Adverse Effect on Broadcasting, (i) there are no strikes, work stoppages, slowdowns, lockouts, material
arbitrations or material grievances or other material labor disputes pending or, to the knowledge of the Company, threatened against or involving PBC or any of the Broadcasting Subsidiaries and (ii) there are no unfair labor practice charges,
grievances or complaints pending or, to the knowledge of the Company, threatened by or on behalf of any employee or group of employees of PBC or any of the Broadcasting Subsidiaries. 
  
 4.12. ENVIRONMENTAL MATTERS. 
  
 (a) Except as set forth on Schedule 4.12(a), to the knowledge of the Company there are no Environmental Liabilities of Broadcasting that may
reasonably be expected to have a Material Adverse Effect on Broadcasting or materially interfere with or delay the Transactions. 
  
 (b) Since January 1, 1997 and prior to the date of this Agreement, to the knowledge of the Company there has been no material environmental assessment
investigation, study, Audit, test, review or other analysis conducted in relation to the current business of Broadcasting or any property or facility now owned or leased by Broadcasting which has not been delivered or made available to Acquiror
prior to the date hereof. 
  
 4.13. COMPLAINTS. As of the date of
this Agreement, there is not, to the knowledge of the Company, any FCC investigation, notice of apparent liability or order of forfeiture pending or outstanding against any of the Stations respecting any violation, or allegation thereof, of any FCC
rule, regulation or policy, or, to the knowledge of the Company, any complaint before the FCC as a result of which an investigation, notice of apparent liability, or order of forfeiture may issue from the FCC relating to any of the Stations.

  
 4.14. REPORTS. Excluding reports and statements which do not
materially affect the business and operations of any of the Stations, all reports and statements currently required to be filed by the Company or any of its Subsidiaries with the FCC or with any other governmental agency with respect to the Stations
have been filed and substantially complied with and shall continue to be filed and be in substantial compliance on a current basis until the Closing Date. All such material reports and statements are substantially complete and correct as filed, and
copies thereof have heretofore been made available to Acquiror. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES OF
ACQUIROR 
  
 Acquiror represents and warrants to the Company
and Newco as follows: 
  
 5.01. ORGANIZATION AND AUTHORITY.
Acquiror is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation. Acquiror has all requisite corporate power and authority to own, lease and operate its properties and to carry on its
business as now being conducted, except where the failure to have such power or authority would not have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole. Acquiror has all requisite corporate power and authority to execute
and deliver this Agreement and, subject to the items referred to in Sections 5.02 and 5.03, to consummate the Transactions. Subject to the items referred to in Sections 5.02 and 5.03, all necessary action, corporate or otherwise,
required to have been taken by or on behalf of Acquiror by applicable law, its charter documents or otherwise to authorize (i) the approval, execution and delivery on its behalf of this Agreement and (ii) its performance of its obligations under
this Agreement and the consummation of the Transactions has been taken, except that this Agreement must 

  

 I-20 

 
be approved by the stockholders of Acquiror, and the Board of Directors of Acquiror must increase the size of such Board to comply with the Board
Representation Agreement. Assuming that this Agreement and each Transaction Agreement constitutes or will constitute, as the case may be, a legal, valid and binding agreement of the Company or Newco, as the case may be, this Agreement and each other
Transaction Agreement to which Acquiror is or will be a party constitutes or will constitute, as the case may be, a valid and binding agreement of Acquiror, enforceable against it in accordance with its terms, subject to (i) the Enforceability
Exceptions and (ii) in the case of the Board Representation Agreement to the Communications Act of 1934, as amended (the “Communications Act”), and the rules and regulations thereunder (the “Rules and Regulations”) regarding
cross-ownership of radio and television stations, to the extent that such Rules and Regulations may prohibit Newco or any of its officers, directors or shareholders from designating or acting as a director or observer on Acquiror’s Board of
Directors. Acquiror has heretofore made available to the Company true and complete copies of its Certificate of Incorporation and Bylaws as in effect on the date hereof. 
  
 5.02. NO BREACH. The execution and delivery of this Agreement by Acquiror do not and the consummation of the Transactions by
Acquiror will not (i) assuming that the requisite stockholder approval is obtained, violate or conflict with its Certificate of Incorporation or Bylaws or (ii) except as set forth on Schedule 5.02(a) hereto, or subject to obtaining the
approvals and making the filings described in Section 5.03, constitute a breach or default (or an event which with notice or lapse of time or both would become a breach or default) of, or give rise to any third-party right of termination,
cancellation, modification or acceleration under, or otherwise require notice or approval under, any agreement, understanding or undertaking to which Acquiror or any of its Subsidiaries is a party or by which any of them is bound, or give rise to
any Lien on any of their properties, except where such breach, default, Lien, third-party right, cancellation, modification or acceleration would not have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole or materially
interfere with or delay the Transactions, or (iii) subject to obtaining the approvals and making the filings described in Section 5.03 hereof, constitute a violation of any statute, law, ordinance, rule, regulation, judgment, decree, order or
writ of any judicial, arbitral, public, or governmental authority having jurisdiction over Acquiror or any of its Subsidiaries or any of their respective properties or assets, except as would not have a Material Adverse Effect on Acquiror and its
Subsidiaries taken as a whole. Except as set forth on Schedule 5.02(b), neither Acquirer nor any of its Subsidiaries is a party to or bound by any Contract that restricts or purports to restrict the ability of any of them or any Affiliate of
them to engage in any location in the business of television broadcasting, except for such restrictions that would not have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole or materially interfere with or delay the
Transactions. 
  
 5.03. CONSENTS AND APPROVALS. Neither the
execution and delivery of this Agreement by Acquiror nor the consummation of the Transactions by Acquiror will require any License from, or filing with, or notification to, any governmental or regulatory authority, except (i) for filings required
under the Securities Act, (ii) for filings required under the Exchange Act, (iii) for filings required under state securities or “blue sky” laws, (iv) for filings and approvals required by the rules and regulations of NASDAQ or the NYSE,
as the case may be, (v) for notification pursuant to the HSR Act and expiration or termination of the waiting period thereunder, (vi) for the filing of the Certificate of Merger as set forth in Article I hereof, (vii) for any waiver, consent
or declaratory ruling by the FCC with respect to the Rules and Regulations regarding cross-ownership of radio or television stations, to the extent that such Rules and Regulations may prohibit (A) Newco or any of its officers, directors or
shareholders from designating or acting as a director or observer on Acquiror’s Board of Directors or (B) a designee of Newco from serving on the Board of Directors of Acquiror, (viii) for consents or waivers from the relevant governmental
entities necessary to transfer control of Broadcasting’s FCC Licenses to Acquiror, and (ix) where the failure to obtain such Licenses or to make such filings or notifications, would not have a Material Adverse Effect on Acquiror and its
Subsidiaries taken as a whole or materially interfere with or delay the Transactions; PROVIDED, HOWEVER, that no representation or warranty is made with respect to the foregoing relating to, or arising by reason of, the legal or regulatory status of
the Company or Broadcasting or the respective facts pertaining specifically to them. 
  
 5.04. APPROVAL OF THE BOARD; VOTE REQUIRED. The Board of Directors of Acquiror has, by resolutions duly adopted at a meeting duly called and held, unanimously approved and adopted this Agreement, 

  

 I-21 

 
the Merger, the Transaction Agreements and the other Transactions on the material terms and conditions set forth herein. The transactions contemplated by the
Acquiror Voting Agreement have been duly and validly approved by the Board of Directors of Acquiror prior to the execution and delivery of the Acquiror Voting Agreement in accordance with Section 203 of the DGCL. The affirmative vote or action by
written consent of a majority of the votes that holders of the outstanding shares of capital stock of Acquiror are entitled to cast voting as a single class are the only votes of the holders of any class or series of the capital stock of Acquiror
necessary to approve this Agreement, the Merger and the Transaction Agreements under applicable law and Acquiror’s Articles or Incorporation and Bylaws. 
  
 5.05. CAPITALIZATION. 
  
 (a) As of the date of this Agreement, the authorized capital stock of Acquiror consists of: (i) 200,000,000 shares of common stock, par value $.01, of
which 100,000,000 shares are designated as Series A Common Stock and 100,000,000 shares are designated as Series B Common Stock, and (ii) 1,000,000 shares of preferred stock, par value $.01, of which 12,500 shares are designated as Series A
Preferred Stock and 12,500 shares are designated as Series B Preferred Stock. As of May 13, 1998, there were issued and outstanding the following shares of such stock: (i) 53,842,377 shares of common stock outstanding, consisting of 12,543,729
shares of Series A Common Stock and 41,298,648 shares of Series B Common Stock, and (ii) 21,876 shares of preferred stock outstanding, consisting of 10,938 shares of Series A Preferred Stock and 10,938 shares of Series B Preferred Stock. All such
outstanding shares are duly authorized, validly issued and fully paid and nonassessable. There are no preemptive or other similar rights available to the existing holders of the capital stock of Acquiror. As of the date of this Agreement, and other
than as set forth on Schedule 5.05(a) or other than as contemplated by this Agreement, there are no outstanding options, warrants, rights, puts, call, commitments, or other Contracts issued by or binding upon Acquiror or any of its
Subsidiaries requiring or providing for, and there are no outstanding debt or equity securities of Acquiror or its Subsidiaries which, upon the conversion, exchange or exercise thereof, would require or provide for the issuance, sale or transfer by
Acquiror or any of its Subsidiaries of any new or additional equity interests in Acquiror or any of its Subsidiaries (or any other securities of Acquiror which, with notice, lapse of time or payment of monies, are or would be convertible into or
exercisable or exchangeable for equity interests in Acquiror or any of its Subsidiaries). Except as described on Schedule 5.05(a), there are no voting trusts or other agreements or understandings to which Acquiror or any of its Subsidiaries
is a party with respect to the voting of capital stock of Acquiror. 
  
 (b) The shares of Acquiror Common Stock to be issued in the Merger, upon their issuance in accordance with the terms hereof, will be duly authorized, validly issued, fully paid and nonassessable and free and clear of all Liens, other than
any Liens created by the stockholders of the Company. 
  
 5.06.
SEC REPORTS. Acquiror has filed all required forms, reports and documents required to by filed by it with the SEC since January 1, 1997 (collectively, “Acquiror’s SEC Reports”) and delivered or made available to the Company copies
thereof. Acquiror’s SEC Reports have complied in all material respects with all applicable requirements of the Securities Act and the Exchange Act. As of their respective dates, none of the Acquiror’s SEC Reports, including any financial
statements or schedules included or incorporated by reference therein, contained any untrue statement of a material fact or omitted to state a material fact required to be stated or incorporated by reference therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. 
  
 5.07. FINANCIAL STATEMENTS. The (i) audited consolidated financial statements of Acquiror contained in Acquiror’s Annual Report on Form 10-K for the year ended December 31, 1997 (“Acquiror’s
10-K”), and (ii) unaudited condensed consolidated financial statements of Acquiror contained in Acquiror’s Quarterly Report on Form 10-Q for the three months ended March 31, 1998 (“Acquiror’s 10-Q” and together with
Acquiror’s 10-K, “Acquiror’s Financial Statements”), were prepared in accordance with GAAP and present fairly, in all material respects, Acquiror’s consolidated financial position and the results of its consolidated
operations and its consolidated cash flows as of the relevant dates thereof and for the periods covered thereby in accordance with GAAP (subject to normal year-end adjustments in the case of the unaudited interim financial statements). 

 

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 5.08. ABSENCE OF CERTAIN CHANGES. Since the date of the balance sheet of Acquiror included in
Acquiror’s 10-Q, except as contemplated or disclosed by this Agreement, the Acquiror and its Subsidiaries have conducted their respective businesses in the ordinary course of business consistent with past practice, and except as contemplated by
this Agreement there has not been any change, event or condition of any character that, individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole or
materially interfere with or delay the Transactions. 
  
 5.09.
ABSENCE OF UNDISCLOSED LIABILITIES. To the knowledge of Acquiror, except as set forth in Schedule 5.09 or otherwise disclosed in this Agreement, neither Acquiror nor any of its Subsidiaries has any obligation or liability of any kind
whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, of a type required by GAAP to be disclosed in a balance sheet of Acquiror or any of its Subsidiaries except (i) such liabilities and obligations that are
reflected in Acquiror’s Financial Statements or disclosed in the notes thereto, (ii) liabilities and obligations incurred in the ordinary course of business after March 31, 1998, and (iii) liabilities and obligations that will not, individually
or in the aggregate, have a Material Adverse Effect on Acquiror or its Subsidiaries taken as a whole or materially interfere with or delay the Transactions. 
  
 5.10. COMPLIANCE WITH LAW. Acquiror holds all Licenses from all governmental authorities necessary for the lawful conduct of its business, except where
the failure to hold any such License would not have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole or materially interfere with or delay the Transactions. To Acquiror’s knowledge, Acquiror has not violated, and is
not in violation of, any such Licenses or any applicable Laws of any governmental authorities, except where such violations do not and, insofar as reasonably can be foreseen, will not have a Material Adverse Effect on Acquiror and its Subsidiaries
taken as a whole or materially interfere with or delay the Transactions. 
  
 5.11. TAXES. 
  
 (a) All material
Tax Returns of Acquiror and its Subsidiaries required to have been filed on or before the date hereof have been filed with the appropriate governmental agencies in all jurisdictions in which such Tax Returns were required to have been filed. All of
such Tax Returns were true, correct and complete in all material respects and all Taxes shown to be due on such Tax Returns have been paid. All material Taxes payable by or with respect to Acquiror and its Subsidiaries but not reflected on any Tax
Return required to have been filed prior to the date of Acquiror’s Financial Statements have been fully paid or adequate provision therefor has been made and reflected on such balance sheet. 
  
 (b) Except as set forth on Schedule 5.11(b) hereto, there is no claim
or investigation involving an amount greater than $1,000,000 pending or threatened against Acquiror or any of its Subsidiaries for past Taxes, and adequate provision for the claims or investigations set forth on Schedule 5.11(b) has been made
as reflected on Acquiror’s Financial Statements. Except as set forth on Schedule 5.11(b), neither Acquiror nor any of its Subsidiaries has waived or extended any applicable statute of limitations relating to the assessment of federal,
state or local Taxes. 
  
 (c) Acquiror is not, and on the Closing
Date will not be, an investment company within the meaning of Section 368(a)(2)(F)(iii) and (iv) of the Code. 
  
 5.12. LITIGATION. There is no suit, action, proceeding or investigation pending against or, to the knowledge of Acquiror, threatened against or affecting
Acquiror or any of its Subsidiaries or any of their respective properties nor, to the knowledge of Acquiror, is there any judgment, decree, inquiry, rule or order outstanding against Acquiror or any of its Subsidiaries that, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect on Acquiror and its Subsidiaries taken as a whole, or materially interfere with or delay the ability of Acquiror to consummate the Transactions. 
  
 5.13. BROKERS AND FINDERS. Neither Acquiror nor any of its officers,
directors, employees or Affiliates has employed any investment banker, broker or finder or incurred any liability for any brokerage fees, commissions or finder’s fees in connection with the Transactions, except that Acquiror has employed Credit

  

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Suisse First Boston Corporation as its financial advisor in connection with the Transactions and for whose fees and expenses Acquiror is responsible.

  
 5.14. SOLVENCY. After giving effect to the Merger, the New
Company Debt and the other Transactions, Acquiror will not be insolvent and will not have unreasonably small capital with which to engage in its businesses, and Acquiror will be able to pay its debts as they come due. 
  
 5.15. FCC QUALIFICATION. Except as set forth on Schedule 5.15,
Acquiror is, for purposes of obtaining the approval of the FCC under the Communications Act, legally, financially and otherwise qualified to acquire control of the Company and, after due investigation, Acquiror is not aware of any facts or
circumstances relating to Acquiror or any of its Subsidiaries that might disqualify Acquiror as a transferee of the Licenses, or as owner and operator of the Broadcasting Assets or otherwise might prevent or delay the prompt approval of this
Agreement, the Transaction Agreements or the Transactions. 
  
 ARTICLE VI 
  
 OTHER AGREEMENTS 

 
 6.01. NO SOLICITATION. 
  
 (a) Neither the Company nor any of its Subsidiaries, nor any of its or their
officers, directors, representatives or agents shall, directly or indirectly, knowingly encourage, solicit, initiate or, except as otherwise provided in this Section 6.01(a), participate in any way in discussions or negotiations with or
knowingly provide any confidential information to, any Person (other than Acquiror or any Affiliate or associate of Acquiror and their respective directors, officers, employees, representatives and agents) concerning any merger, consolidation,
business combination, recapitalization, liquidation or dissolution of the Company, PBC or any Broadcasting Subsidiary, the sale of any substantial part of the assets of PBC or any of the Broadcasting Subsidiaries (other than in the ordinary course
of business consistent with past practice), the sale of any shares of the capital stock of PBC or any of the Broadcasting Subsidiaries, or the sale of shares representing a controlling interest of the capital stock of the Company, PBC or the
Broadcasting Subsidiaries or any similar transactions or series of transactions involving Broadcasting; PROVIDED, HOWEVER, that nothing contained in this Section 6.0l(a) shall prohibit the Board of Directors of the Company from (i) taking and
disclosing to the Company’s stockholders a position with respect to a tender offer for Company Stock by a third party pursuant to Rules 14d-9 and 14e-2 promulgated under the Exchange Act, (ii) making such disclosure to the Company’s
stockholders as, in the judgment of the Board of Directors of the Company, with the advice of outside counsel, may be required under applicable Law, or (iii) responding to any unsolicited third party proposal or inquiry by advising the Person making
such proposal or inquiry of the terms of this Section 6.01(a). Notwithstanding anything to the contrary set forth herein, the Board of Directors of the Company may respond to any Acquisition Proposal and may provide information and afford
access to, and negotiate and hold discussions with, any Person or group in connection therewith if the Board of Directors of the Company determines, with the advice of outside counsel, that it may be required to do so to comply with its fiduciary
duties. For purposes hereof, “Acquisition Proposal” means any proposal, offer or any expression of interest by any third party relating to a possible transaction described in this Section 6.01(a) by any Person, other than Acquiror.
Subject to the fiduciary duties of the Company’s Board of Directors, in the event that the Company, Newco or any of their Subsidiaries or any of their respective officers, directors, employees, representatives or agents receives from any Person
an Acquisition Proposal, the Company shall promptly advise Acquiror of such Acquisition Proposal and thereafter keep Acquiror reasonably and promptly informed of all material facts and circumstances relating to the Acquisition Proposal and the
Company’s response thereto. 
  
 (b) Acquiror will promptly
notify the Company and provide it with pertinent information in the event that Acquiror or any of its Subsidiaries, or any of its or their officers, directors, representatives or agents (i) solicits, initiates or participates in any way in
discussions or negotiations with, or provides any confidential information to, any Person or group (other than the Company or any Affiliate or associate of the Company and their 

  

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respective directors, officers, employers, representatives and agents) concerning any merger, sale or substantially all of the assets, or the sale of shares
representing a controlling interest of the capital stock of Acquiror, or any similar transaction or series of transactions involving Acquiror, or (ii) receives any proposal or inquiry in respect of any such transaction or any request to provide any
such information or hold any such negotiations or discussions. 
  
 6.02. CONDUCT OF BUSINESS OF THE COMPANY. Except as contemplated by this Agreement, during the period from the date hereof to the Closing Date, the Company shall not, without the prior written consent of Acquiror: 
  
 (a) amend its Certificate of Incorporation or Bylaws;

  
 (b) declare, set aside or pay any dividend or
other distribution (whether in cash. stock or property or any combination thereof) in respect of its capital stock, except for cash dividends declared and paid consistent with the Company’s past practice (except that (i) any Subsidiary of the
Company other than PBC or a Broadcasting Subsidiary may declare and pay dividends that are payable to the Company or to any other Subsidiary of the Company, (ii) PBC or any Broadcasting Subsidiary may declare and pay dividends in cash and cash
equivalents that are payable to the Company or to any other Subsidiary of the Company and (iii) PBC may declare and pay a dividend of all of the capital stock of Pulitzer Sports Inc. to the Company) or redeem or acquire any of its securities other
than for cash; 
  
 (c) except pursuant to the
terms of the Company Class B Common Stock, the Company Option Plans, or the Employee Stock Purchase Plan, split, combine or reclassify any of its capital stock or issue or authorize the issuance of any other securities in respect of, in lieu of or
in substitution of any shares of its capital stock; 
  
 (d) except (x) to the event that the Company is acting in the ordinary course of business or is otherwise released therefrom as described in Section 2.02 or (y) any investment or acquisition relating to the newspaper business or any
activity related thereto, (i) create, incur or assume any Indebtedness, other than the New Company Debt, not currently outstanding (including obligations in respect of capital leases), (ii) assume, guarantee, endorse or otherwise become liable or
responsible (whether directly. contingently or otherwise) for the obligations of any other Person or (iii) make any loans, advances or capital contributions to, or investments in, any Person other than Newco or another Subsidiary; 
  
 (e) except pursuant to the terms of the Company Class B
Common Stock, the Company Option Plans, or the Employee Stock Purchase Plan, issue, sell, deliver or agree or commit to issue, sell or deliver (whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to
purchase or otherwise) any stock of any class or any other securities or amend any of the terms of any securities outstanding at the date hereof; 
  
 (f) terminate, amend, modify or waive compliance with any of the terms or conditions of the Contribution Agreement directly or indirectly
respecting the Retained Assets or the Retained Liabilities or affecting the rights or obligations of the Company thereunder from and after the Effective Time; 
  

(g) subject to the fiduciary duties of the Board of Directors, terminate, amend, modify or waive any of the terms or conditions of any
confidentiality agreement in effect as of the date hereof between the Company and any other prospective acquiror of the Company or Broadcasting, provided that the Company, PBC or any Broadcasting Subsidiary may waive, and Acquiror will not enforce
after Closing, any restriction on employment of any employee of the Company, PBC or any Broadcasting Subsidiary who is not employed by the Acquiror, PBC or any Broadcasting Subsidiary at Closing or whose employment with any of them is terminated
after Closing; or 
  
 (h) take, or agree in
writing or otherwise to take, any of the foregoing actions or any other actions that would (i) make any representation or warranty of the Company or Newco contained in this Agreement untrue or incorrect, in any material respect, as of the date when
made or as of the Closing Date, (ii) result in any of the conditions to Closing in Article VII of this Agreement not being satisfied, or (iii) be inconsistent, in any material respect, with the terms of this Agreement or the Transactions.

  

 I-25 

 6.03. CONDUCT Of BUSINESS OF BROADCASTING. 
  
 (a) Except as contemplated by this Agreement, during the period from the date hereof to the Closing Date, the Company shall
cause PBC and the Broadcasting Subsidiaries to conduct their operations in the ordinary course of business consistent with past practices. Without limiting the generality of the foregoing, except as otherwise contemplated by this Agreement, without
the prior written consent of Acquiror, the Company shall not permit PBC or any of the Broadcasting Subsidiaries to: 
  
 (i) amend its Certificate of Incorporation or Bylaws; 
  
 (ii) issue, sell, deliver or agree or commit to issue, sell or deliver (whether through the issuance or
granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any stock of any class or any other securities or amend any of the terms or any securities outstanding on the date hereof; 
  
 (iii) acquire, lease, sell or dispose of any assets or any
FCC Licenses other than acquisitions, leases, sales or dispositions of inventory and equipment in the ordinary course of business consistent with past practices or inventory items expended, depleted or worn out in accordance with Broadcasting’s
normal operating procedures; 
  
 (iv) except for
Permitted Exceptions, subject to any Lien on any of its properties or assets, tangible or intangible; 
  
 (v) increase the amount of any cash compensation payable to any employee if such increase would cause the aggregate cash compensation
payable to all employees on an annualized basis to exceed, by more than 5% percent, the cash compensation payable by Broadcasting to all employees under its 1998 budget as outlined in Schedule 6.03(a)(v) (PROVIDED that this Section
6.03(a)(v) shall not apply to the employment, bonus and/or severance agreements made with the corporate executives of PBC and the Station managers (all of which agreements are listed on Schedule 4.10(a) hereto)); 
  
 (vi) declare, set aside or pay any dividend or other
distribution (whether in cash, stock or property or any combination thereof) in respect of its capital stock or redeem or otherwise acquire any of its securities, except as provided in Sections 6.24 and 6.02(b); 
  
 (vii) fail to maintain the Broadcasting Assets in the
condition specified in Section 4.08(a) hereof; 
  
 (viii) by any act or omission to act within its reasonable knowledge and power, surrender, modify, adversely affect or forfeit any of the material Licenses; 
  
 (ix) enter into or amend any program license or program contract for any Station which will be in effect
after the Effective Time, or enter into or amend any other contract or agreement which, in each case, will be in effect after the Effective Time and requiring payments to or by PBC or any of the Broadcasting Subsidiaries of more than $250,000;

  
 (x) (i) create, incur or assume any
Indebtedness not currently outstanding (including obligations in respect of capital leases), (ii) except in the ordinary course of business, assume, guarantee, endorse or otherwise become liable or responsible (whether directly, contingently or
otherwise) for the obligations of any other Person, or (iii) except in the ordinary course of business, make any loans, advances or capital contributions to, or investments in, any Person other than Newco or another Subsidiary; or 
  
 (xi) take, or agree in writing or otherwise to take, any of
the foregoing actions or any other action that would (i) make any representation or warranty of the Company or Newco contained in this Agreement untrue or incorrect, in any material respect, as of the date when made or as of the Closing Date, (ii)
result in any of the conditions to Closing in Article VII of this Agreement not being satisfied or (iii) be inconsistent, in any material respect, with the terms of this Agreement or the Transactions. 
  
 (b) The Company shall use its commercially reasonable efforts to: (i)
maintain the present operations of the Stations; (ii) preserve intact the business organization of the Stations; and (iii) preserve for the Stations the existing relationships with employees, suppliers, customers and their agencies and others having
business with the Stations. 
  

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 (c) Prior to the Effective Time, control of the television and radio operations of PBC and the
Broadcasting Subsidiaries shall remain with the Company. The Company and Acquiror acknowledge and agree that neither Acquiror nor any of its employees, agents or representatives, directly or indirectly, shall, or have any right to, control, direct
or otherwise supervise, or attempt to control, direct or otherwise supervise, such broadcast operations; it being understood that at all times prior to the Effective Time, supervision of all programs, equipment and operations shall remain within the
complete control and discretion of the Company. 
  
 (d) The
Company shall use its commercially reasonable efforts to cause Broadcasting to maintain in full force and effect the Station Network Affiliation Agreements set forth on Schedule 4.07 hereto. 
  
 6.04. CONDUCT OF BUSINESS OF ACQUIROR. Except as contemplated by this
Agreement, during the period from the date hereof to the Closing Date, Acquiror will not, without the prior written consent of the Company: 
  
 (a) amend its certificate of incorporation (other than to provide for the issuance of preferred stock and to increase its authorized shares of common
stock or any series thereof); 
  
 (b) issue, sell, deliver or
agree or commit to issue, sell or deliver (whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any stock of any class; PROVIDED, HOWEVER, that Acquiror may (i) issue shares of
its capital stock upon the exercise of options outstanding on the date hereof, (ii) grant options to purchase shares of its capital stock (and issue any shares of capital stock upon exercise of such options) pursuant to employee compensation
arrangements consistent with past practices, (iii) issue shares of common stock upon conversion of any shares of capital stock, and (iv) issue shares of capital stock at or above fair market value; 
  
 (c) declare, set aside or pay any dividend or other distribution (whether in
cash, stock or property or any combination thereof) in respect of its capital stock, except for dividends declared and paid consistent with Acquiror’s past practice; 
  
 (d) (i) enter into a transaction or (ii) except for Indebtedness incurred in connection with Section 2.01(b), create,
incur or assume any Indebtedness not currently outstanding (including obligations in respect of capital leases but excluding indebtedness incurred in refinancing, replacement or substitution of indebtedness that is currently outstanding) that in the
case of clauses (i) or (ii) would result in a down-grading below investment grade in the rating of any rated debt securities of the Company by both Standard & Poors Corporation and Moody’s Investors Service; 
  
 (e) sell, lease or dispose of any assets material to Acquiror and its
Subsidiaries taken as a whole, other than (i) sales of inventory in the ordinary course of business consistent with past practices and (ii) in connection with or in exchange for acquisitions of assets related to the business of Acquiror; 

 
 (f) make any material change in the lines of business in which it
participates or is engaged; or 
  
 (g) take, or agree in writing
or otherwise to take, any of the foregoing actions or any other actions that would (i) make any representation or warranty of Acquiror contained in this Agreement untrue or incorrect, in any material respect, as of the date when made or as of the
Closing Date, (ii) result in any of the conditions to Closing in Article VII of this Agreement not being satisfied in any material respect or (iii) be inconsistent, in any material respect, with the terms of this Agreement or the
Transactions. 
  
 6.05. ACCESS TO INFORMATION. Between the date of
this Agreement and the Effective Time, (a) the Company and Acquiror will each (i) give the other party and its authorized representatives reasonable access, during regular business hours upon reasonable notice, to all offices and other facilities of
such party and its Subsidiaries and to all books and records of such party and its Subsidiaries, (ii) permit the other party to make such reasonable inspections of the offices, facilities, books and records described in clause (i) as it may require,
(iii) cause its officers and those of its Subsidiaries to furnish the other party with such financial and operating data and other information with respect to the business and properties of the Company and Broadcasting, or Acquiror and its
Subsidiaries, as the case may be, as the other party may, from time to time, reasonably request, 

  

 I-27 

 
and (iv) permit Acquiror to conduct, at its expense, environmental tests and assessments and (b) Acquiror will keep the Company informed, and the Company
will keep Acquiror informed, in each case as to material developments affecting the other party and its Subsidiaries. All such access and information obtained by Acquiror and its authorized representatives shall be subject to the terms and
conditions of the letter agreement between the Company and Acquiror dated in February 1998 (the “Confidentiality Agreement”). All such information obtained by the Company and its authorized representatives, and, after the Closing, all
other information regarding the Broadcasting Assets, or its business and operations which Newco or any of its Subsidiaries possesses or has access to (including pursuant to Section 6.17), shall be treated in accordance with the terms of the
Confidentiality Agreement as if such agreement obligated such Persons to hold such information confidential on the same basis as set forth therein MUTATIS MUTANDIS and Acquiror and its Subsidiaries were beneficiaries of such obligations. 

 
 6.06. SEC FILINGS. 
  
 (a) The Company, Newco and Acquiror shall prepare jointly and, as soon as
practicable after the date of this Agreement, file with the SEC a joint proxy statement/registration statement (the “Preliminary Joint Proxy Statement/Prospectus”) comprising preliminary proxy materials of the Company and Acquiror under
the Exchange Act with respect to the Merger and the Transactions and Registration Statement on Form S-4 containing a preliminary prospectus of Acquiror under the Securities Act with respect to the Merger Stock, and will thereafter use their
respective reasonable best efforts to respond to any comments of the SEC with respect thereto and to cause a definitive joint proxy statement/prospectus (including all supplements and amendments thereto, the “Joint Proxy
Statement/Prospectus”) and proxy to be mailed to the Company’s and Acquiror’s stockholders as promptly as practicable. 
  
 (b) As soon as practicable after the date hereof, the Company, Newco and Acquiror shall prepare and file any other filings required to be filed by each
under the Exchange Act, any other federal or state laws, or the rules and regulations of the NYSE or NASDAQ, relating to the Merger, the Contribution and the Distribution, and the other Transactions, including in the case of Newco, an Information
Statement on Form 10 under the Exchange Act with respect to the Newco Common Stock (collectively, the “Other Filings”) and will use their respective reasonable best efforts to respond to any comments, if any, of the SEC or any other
appropriate government official with respect thereto. 
  
 (c) The
Company, Newco and Acquiror shall cooperate with each other and provide to each other all information necessary in order to prepare the Preliminary Joint Proxy Statement/Prospectus, the Joint Proxy Statement/Prospectus and the Other Filings
(collectively, the “SEC Filings”) and shall provide promptly to the other party any information that such party may obtain that could necessitate amending any such document. 
  
 (d) The Company and Acquirer will notify the other party promptly of the receipt of any comments from the SEC or its staff
or any other government official and of any requests by the SEC or its staff or any other government official for amendments and/or supplements to any of the SEC Filings or for additional information and will supply the other party with copies of
all correspondence between the Company or any of its representatives, Newco or any of its representatives, or Acquiror or any of its representatives, as the case may be, on the one hand, and the SEC or its staff or any other government official, on
the other hand, with respect thereto. If at any time prior to the Effective Time, any event shall occur that should be set forth in an amendment of, or a supplement to, any of the SEC Filings, the Company, Newco and Acquiror agree promptly to
prepare and file such amendment or supplement and to distribute such amendment or supplement as required by applicable law, including, in the case of an amendment or supplement to the Joint Proxy Statement/Prospectus, mailing such supplement or
amendment to the Company’s and Acquiror’s stockholders. 
  
 (e) The information provided and to be provided by the Company, Newco and Acquiror for use in SEC Filings shall at all times prior to the Effective Time be true and correct in all material respects and shall not omit to state any material
fact required to be stated therein or necessary in order to make such information in light of the circumstances under which they were made, not false or misleading, and the Company, Newco and Acquiror 

  

 I-28 

 
each agree to correct any such information provided by it for use in the SEC Filings that shall have become false or misleading. Each SEC Filing, when filed
with the SEC or any government official, shall comply in all material respects with all applicable requirements of law. 
  
 (f) Acquiror shall indemnify, defend and hold harmless the Company and Newco, each of their officers and directors and each other Person, if any, who
controls any of the foregoing within the meaning of the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which any of the foregoing may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any SEC Filing or (ii) the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, PROVIDED that Acquiror was responsible for such misstatement or
omission, and, upon request from time to time, Acquiror shall reimburse the Company, Newco and each such officer, director and controlling Person for any legal or any other expenses reasonably incurred by any of them in connection with investigating
or defending any such loss, claim, damage, liability or action or enforcing this indemnity. 
  
 (g) Newco (and, if this Agreement is terminated prior to the consummation of the Merger, the Company, jointly and severally with Newco) shall indemnify, defend and hold harmless Acquiror, each of its officers and
directors and each other Person, if any, who controls any of the foregoing within the meaning of the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which any of the foregoing may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in
any SEC Filing or (ii) the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, PROVIDED that the
Company or Newco was responsible for such misstatement or omission, and, upon request from time to time, Newco (and, if this Agreement is terminated prior to the consummation of the Merger, the Company) shall reimburse Acquiror and each such
officer, director and controlling Person for any legal or any other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or action or enforcing this indemnity. 

 
 (h) For the purpose of this Section 6.06, the term
“Indemnifying Party” shall mean the party having an obligation hereunder to indemnify the other party pursuant to this Section 6.06, and the term “Indemnified Party” shall mean the party having the right to be indemnified
pursuant to this Section 6.06. Whenever any claim shall arise for indemnification under this Section 6.06, the Indemnified Party shall promptly notify the Indemnifying Party in writing of such claim and, when known, the facts
constituting the basis for such claim (in reasonable detail). Failure by the Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of any liability hereunder except to the extent that such failure prejudices
the Indemnifying Party. 
  
 (i) After such notice, if the
Indemnifying Party undertakes to defend any such claim, then the Indemnifying Party shall be entitled, if it so elects, to take control of the defense and investigation with respect to such claim and to employ and engage attorneys of its own choice
and reasonably acceptable to the Indemnified Party to handle and defend the same, at the Indemnifying Party’s cost, risk and expense, upon written notice to the Indemnified Party of such election, which notice acknowledges the Indemnifying
Party’s obligation to provide indemnification hereunder. The Indemnifying Party shall not settle any third-party claim that is the subject of indemnification without the prior written consent of the Indemnified Party, which consent shall not be
unreasonably withheld; PROVIDED, HOWEVER, that the Indemnifying Party may settle a claim without the Indemnified Party’s consent, if such settlement (i) makes no admission or acknowledgment of liability or culpability with respect to the
Indemnified Party, (ii) includes a complete release of the Indemnified Party and (iii) does not require the Indemnified Party to make any payment or forego or take any action or otherwise materially adversely affect the Indemnified Party. The
Indemnified Party shall cooperate in all reasonable respects with the Indemnifying Party and its attorneys in the investigation, trial and defense of any lawsuit or 

  

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action with respect to such claim and any appeal arising therefrom (including the filing in the Indemnified Party’s name of appropriate cross claims and
counterclaims). The Indemnified Party may, at its own cost, participate in any investigation, trial and defense of such lawsuit or action controlled by the Indemnifying Party and any appeal arising therefrom. If, after receipt of a notice of claim
pursuant to Section 6.06(h), the Indemnifying Party does not undertake to defend any such claim, the Indemnified Party may, but shall have no obligation to, contest any lawsuit or action with respect to such claim and the Indemnifying Party
shall be bound by the result obtained with respect thereto by the Indemnified Party (including the settlement thereof without the consent of the Indemnifying Party). If there are one or more legal defenses available to the Indemnified Party that
conflict with those available to the Indemnifying Party or there is otherwise an actual or potential conflict of interest, the Indemnified Party shall have the right, at the expense of the Indemnifying Party, to assume the defense of the lawsuit or
action; PROVIDED, HOWEVER, that the Indemnified Party may not settle such lawsuit or action without the consent of the Indemnifying Party, which consent shall not be unreasonably withheld. 
  
 (j) If the indemnification provided for in this Section 6.06 shall for
any reason be unavailable to the Indemnified Party in respect of any loss, claim, damage or liability, or action referred to herein, then the Indemnifying Party shall, in lieu of indemnifying the Indemnified Party, contribute to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or liability, or action in respect thereof, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnified
Party on the other hand with respect to the statements or omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative fault shall be determined
by reference to whether the untrue or alleged untrue statement or omission of a material fact related to information supplied by the Indemnifying Party on the one hand or the Indemnified Party on the other hand, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by the Indemnified Party as a result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this paragraph shall be deemed to include, for purposes of this paragraph, any legal or other expenses reasonably incurred by the Indemnified Party in connection with investigating or defending any such action or claim or
enforcing this provision. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

  
 6.07. REASONABLE BEST EFFORTS. Subject to the other terms and
conditions hereof, each of the parties hereto agrees to use its reasonable best efforts to take, or cause to be taken, all appropriate action, and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the Transactions contemplated by this Agreement in the most expeditious manner practicable, including the satisfaction of all conditions to the Merger and the other Transactions and seeking to remove
promptly any injunction or other legal barrier that may prevent or delay such consummation. Each of the parties shall promptly notify the other whenever a material consent is obtained and shall keep the other informed as to the progress in obtaining
such material consents. 
  
 6.08. PUBLIC ANNOUNCEMENTS. Except as
otherwise may be required by law, no party hereto shall make any public announcements or otherwise communicate with any news media with respect to this Agreement or any of the Transactions without such prior consultation with the other parties as to
the timing and content of any such announcement as may be reasonable under the circumstances; PROVIDED, HOWEVER, that nothing contained herein shall prevent any party from promptly making all filings with governmental authorities as may, in its
judgment, be required or advisable in connection with the execution and delivery of this Agreement, the Transaction Agreements or the consummation of the Transactions. 
  
 6.09. TAX MATTERS. 
  
 (a) INDEMNIFICATION OBLIGATIONS. 
  
 (i) NEWCO’S INDEMNIFICATION OBLIGATIONS. Newco shall be liable for, shall pay and shall indemnify and hold the Surviving Corporation
and its Subsidiaries harmless, on an After-Tax Basis, against (A) subject to Section 6.09(a)(ii)(D), any Tax of the Company or any Subsidiary of the Company 

  

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attributable to any Pre-Closing Tax Period, including, without limitation, any Spin-Off Tax, but not including any Tax assessed against the Company as a
result of the Merger not qualifying as a reorganization under Section 368(a)(1)(A) of the Code by reason of any action or inaction on the part of Acquiror subsequent to the Effective Time, (B) any Tax of Newco or any Subsidiary of Newco, whether
attributable to a Pre-Closing Tax Period or Post-Closing Tax Period, and (C) any Transfer Taxes which may be imposed or assessed as a result of the Contribution and the Distribution. 
  
 (ii) ACQUIROR’S INDEMNIFICATION OBLIGATIONS. Acquiror and the Surviving Corporation shall be liable
for, shall pay and shall indemnify and hold Newco and its Subsidiaries harmless, on an After-Tax Basis, against (A) any Tax of Acquiror or any Subsidiary of Acquiror (other than the Company or any Subsidiary of the Company) attributable to any
Pre-Closing Tax Period, (B) any Tax of Acquiror, any Subsidiary of Acquiror, the Surviving Corporation, Broadcasting or any Subsidiary of the Surviving Corporation attributable to any Post-Closing Tax Period, (C) any Transfer Tax imposed or assessed
as a result of the Merger, and (D) any Taxes (including, for purposes of this Section 6.09(a)(ii)(D), any income Taxes for which any stockholders of the Company immediately prior to the Effective Time are liable as a result of the
Transactions) arising primarily as a result of a breach by Acquiror of any of the covenants set forth in Section 6.09(i)(ii) hereof (provided that actions or omissions by Newco do not materially contribute to the incurrence of such Taxes).

  
 (iii) PRORATION OF TAXES. To the extent
required or permitted by applicable Law or administrative practice, the then-current Tax period of the Company and any of the Broadcasting Subsidiaries shall terminate as of the close of the Closing Date. Any Taxes imposed with respect to any
Straddle Period shall be allocated between the Pre-Closing Tax Period and the Post-Closing Tax Period, based on the permanent books and records maintained by the Company, as follows: 
  
 (A) in the case of any Taxes based upon or related to income, as if the Pre-Closing Tax Period ended on the
Closing Date and the Post-Closing Tax Period began on the date immediately following the Closing Date; and 
  
 (B) in the case of any Taxes other than Taxes based upon or related to income, the amount of Taxes attributable to the Pre-Closing Tax
Period shall be calculated by reference to the number of days in such period ending on the Closing Date as compared to the total number of days in the Straddle Period, and the amount of Taxes attributable to the Post-Closing Tax Period shall be
calculated by reference to the number of days in such period beginning after the Closing Date as compared to the total number of days in the Straddle Period. 
  

(iv) REFUNDS AND CREDITS OF TAXES. Each party shall be entitled to all refunds or credits of any Tax, including, without limitation, in
the case of Newco, any refunds attributable to the Spin-Off Tax, for which such party is liable hereunder. Any party receiving a refund or credit (and interest, if any, with respect thereto) that is for the account of another party hereunder shall
promptly and, in any event, no later than five Business Days following its receipt, pay to the other party such refund or credit (and any interest with respect thereto). 
  
 (v) CONTROL OF TAX PROCEEDINGS. 
  
 (A) Newco shall be designated as the agent for the Company Group pursuant to Section 1.1502-77(d) of the
Treasury Regulations, subject to the approval of the District Director of the IRS, and any similar provisions of applicable state income or franchise Tax laws for any Tax period relating to Taxes for which Newco is obligated to indemnify the
Surviving Corporation and its Subsidiaries under Section 6.09(a)(i). Whenever any Taxing authority asserts a claim, makes an assessment or otherwise disputes the amount of Taxes for which Newco is obligated to indemnify the Surviving
Corporation and its Subsidiaries under Section 6.09(a)(i), in whole or in part, under this Agreement, including, without limitation, any Taxes of the Company or any Subsidiary of the Company attributable to any Pre-Closing Tax Period (except
as otherwise provided in Section 6.09(a)(i) and any Spin-Off Tax, Acquiror shall promptly inform Newco, and Newco, at its cost and expense, shall have the right to control any resulting proceedings and to determine whether and when to settle
any such claim, 

  

 I-31 

 
assessment or dispute, PROVIDED, HOWEVER, that Newco shall not, without Acquiror’s consent, which consent shall not be unreasonably withheld, take any
action or omit to take any action relating to a Pre-Closing Tax Period which would result in an increase of more than $1,000,000 in the Tax liability of the Surviving Corporation or any Subsidiary of the Surviving Corporation for all Post-Closing
Tax Periods, computed on an After Tax Basis. 
  
 (B) If any Taxing authority notifies Newco of a claim, makes an assessment or otherwise disputes the amount of Taxes for which Acquiror is obligated to indemnify Newco and its Subsidiaries under Section 6.09(a)(ii), in whole or in
part, under this Agreement, Newco shall promptly inform Acquiror, and Acquiror, at its cost and expense, shall have the right to control any resulting proceedings and to determine whether and when to settle any such claim, assessment or dispute,
provided, however, that Acquiror shall not take any action or omit to take any action relating to a Post-Closing Tax Period which would result in an increase of more than $1,000,000 in the Tax liability of the Company or any Subsidiary of the
Company for all Pre-Closing Tax Periods, computed on an After-Tax Basis. 
  
 (C) Notwithstanding the foregoing provisions of this Section 6.09(a)(v), in the event any Taxing authority asserts a claim, makes an assessment or otherwise disputes the amount of Taxes attributable to any
Straddle Period for which both Newco and Acquiror may be liable under this Agreement, Newco and Acquiror, at their respective cost and expense, shall jointly participate in any resulting proceedings and mutually determine whether and when to settle
any such claim, assessment or dispute, PROVIDED, HOWEVER, that Newco or Acquiror, at its cost and expense, may, by written notice to the other, elect to control the defense of such claim, assessment or dispute, including the decision whether and
when to settle such claim, assessment or dispute, but in the event Newco or Acquiror so elects, the other shall no longer be obligated to indemnify Acquiror or Newco, as the case may be, and its Subsidiaries for any portion of the Taxes attributable
to such Straddle Period which are in dispute. 
  
 (b) TAX RETURNS.

  
 (i) Newco shall be responsible for the
preparation and timely filing of all Company Consolidated Income Tax Returns for any Pre-Closing Tax Period, including Company Consolidated Income Tax Returns for such period that are due after the Closing Date, all Tax Returns for any Tax period
relating to the Newspaper Subsidiaries, and all Broadcasting Tax Returns required to be filed on or before the Closing Date. Within twenty (20) days following the filing of Company Consolidated Income Tax Returns for the Tax period ended on the
Closing Date, Newco shall furnish Acquiror with (i) copies of such Tax Returns, and (ii) information concerning (A) the Tax basis of the assets of Broadcasting as of the Closing Date; (B) the earnings and profits of the Company and Broadcasting as
of the Closing Date; (C) the Company’s Tax basis in the stock of Broadcasting and PBC’s Tax basis in the stock of each of its Subsidiaries as of the Closing Date; (D) the net operating loss carryover, investment tax credit carryover,
alternative minimum tax carryover and the capital loss carryover, if any, available to the Surviving Corporation and its Subsidiaries for a Post-Closing Tax Period; and (E) all elections with respect to Company Consolidated Income Taxes in effect
for Broadcasting as of the Closing Date. Other than elections in the ordinary course of business consistent with past practice or elections which will not have the effect of increasing the Taxes of Acquiror in a Post-Closing Tax Period, no Tax
elections shall be made with respect to any of the Tax Returns for which Newco is responsible under this Section 6.09(b)(i) on behalf of the Company or any Broadcasting Subsidiary without the consent of Acquiror. 
  
 (ii) Acquiror shall be responsible for the preparation and
timely filing of all Tax Returns relating to the business or assets of the Company or Broadcasting required to be filed after the Closing Date (other than the Tax Returns to be prepared and filed by Newco pursuant to Section 6.09(b)(i),
PROVIDED, HOWEVER, that all such Tax Returns relating to any Pre-Closing Tax Period or Straddle Period shall be prepared in a manner consistent with the past practice of the Company in preparing such Tax Returns. Acquiror shall provide Newco with a
draft of any such Tax Return relating to any Pre-Closing Tax Period or Straddle Period at least thirty (30) days prior to the due date for filing such Tax Return (taking into account any applicable extensions), and Newco may provide Acquiror with
written comments on such draft Tax Return within ten (10) days after its receipt of such draft. Subject to Section 6.09(e), Acquiror and 

  

 I-32 

 
Newco shall attempt to resolve any disputes regarding such draft Tax Return in good faith at least ten (10) days prior to the due date for filing such Tax
Return. 
  
 (c) COOPERATION. Acquiror and Newco shall cooperate
with each other in a timely manner in the preparation and filing of any Tax Returns described in Section 6.09(b), payment of any Taxes in accordance with this Agreement, and the conduct of any audit or other proceeding relating thereto. Each
party shall execute and deliver such powers of attorney and make available such other documents as are necessary to carry out the intent of this Section 6.09. Each party agrees to notify the other party of any audit adjustments that do not
result in Tax liability but can reasonably be expected to affect Tax Returns of the other party. 
  
 (d) RETENTION OF RECORDS. Acquiror and Newco shall each, to the extent potentially relevant to the other party, (1) retain records, documents, accounting
data and other information (including computer data) necessary for the preparation and filing of all Tax Returns or the audit of such Tax Returns, and (2) give to the other reasonable access to such records, documents, accounting data, Tax Returns
and related books and records and other information (including computer data) and to its personnel (insuring their cooperation) and premises, for purposes of the review or audit of such Tax Returns to the extent relevant to an obligation or
liability of a party under this Agreement. 
  
 (e) PAYMENTS;
DISPUTES. Except as otherwise provided in this Section 6.09, any amounts owed by any party (“Indemnitor”) to any other party (“Indemnitee”) under this Section 6.09 shall be paid within ten days of notice from the
Indemnitee, PROVIDED, HOWEVER, that if such amounts are being contested before a Taxing authority in good faith, the Indemnitor shall not be required to make payment until it is determined finally by such Taxing authority, unless the Indemnitor has
authorized the Indemnitee to make payment to such Taxing Authority. Unless otherwise required under applicable Law, the Company, Newco and Acquiror agree to treat any and all indemnity payments made pursuant to this Agreement as having been made
immediately prior to the Distribution and as a dividend from or a capital contribution to Newco, as the case may be, for federal, state and local Tax purposes. If Acquiror and Newco cannot agree on any calculation or determination of any of their
respective liabilities or any other matter under this Section 6.09, such calculation or determination shall be made by an independent public accounting firm reasonably acceptable to both such parties. The decision of such firm shall be final
and binding. The fees and expenses incurred in connection with such calculation or determination shall be borne equally by the disputing parties. 
  
 (f) TERMINATION OF TAX SHARING AGREEMENTS. Except as specifically provided in this Section 6.09, any Tax Sharing Agreement or policy of the Company
Group shall be terminated at the Effective Time, and the Company and Broadcasting shall have no obligation under such agreements after the Effective Time. 
  
 (g) SURVIVAL. Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 6.09 shall survive for the full period of
all statutes of limitations (giving effect to any waiver or extension thereof) applicable to Taxes and Tax Returns subject to this Section 6.09. 
  
 (h) DEFINITIONS. 
  
 (i) “After-Tax Basis” means, with respect to any payment, an amount calculated by taking into account the Tax consequences of
the receipt of such payment, as well as any Tax benefit associated with the liability giving rise to the payment, in each case calculated on a present value basis using the Agreed Rate. 
  
 (ii) “Broadcasting Tax Return” means any Tax Return of PBC or any of its Subsidiaries. 

 
 (iii) “Company Consolidated Income Tax Returns”
means any Tax Return of the Company or any Subsidiary with respect to Company Consolidated Income Taxes. 
  
 (iv) “Company Consolidated Income Taxes” means the federal income Tax and all applicable state or local income or franchise
Taxes of the Company Group. 
  

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 (v) “Company Group” means the affiliated group of corporations, within the
meaning of Section 1504(a) of the Code, of which the Company is the common parent or any unitary, combined or consolidated group of corporations for state income Tax purposes in which the Company or any Broadcasting Subsidiary is included.

  
 (vi) “Pre-Closing Tax Period” means
any Tax period, or portion thereof, ending on or before the close of business on the Closing Date. 
  
 (vii) “Post-Closing Tax Period” means any Tax Period or portion thereof, beginning after the close of business on the Closing
Date. 
  
 (viii) “Spin-Off Tax” means
any Tax to which the Company or any Subsidiary of the Company is subject as a result of the application of Section 311(b), Section 355(c)(2), Section 355(e) or Section 361(c)(2) of the Code (or any corresponding or similar provision of state or
local law) to the Distribution. 
  
 (ix)
“Straddle Period” means any Tax period which begins before and ends after the Closing Date. 
  
 (x) “Tax” (including with correlative meaning, the terms “Taxes” and “Taxable”) means any income, gross
receipts, ad valorem, premium, excise, value-added, sales, use, transfer, franchise, license, severance, stamp, occupation, service, lease, withholding, employment, payroll premium, property or windfall profits tax, alternative or add-on-minimum
tax, or other tax, fee or assessment, and any payment required to be made to any state abandoned property administrator or other public official pursuant to an abandoned property, escheat or similar law, together with any interest and any penalty,
addition to tax or additional amount imposed by any Taxing authority responsible for the imposition of any such Tax or payment. 
  
 (xi) “Tax Return” means any return, report, statement, information statement, refund claim and the like, including any amendment
thereto, required to be filed with any Taxing authority with respect to Taxes. 
  
 (xii) “Tax Sharing Agreement” means any Tax sharing agreement or arrangement (whether or not written) binding on a Person, and
any agreement or arrangement (including any arrangement required or permitted by law) which (i) requires a Person to make a payment to or for the account of any other Person, (ii) requires or permits the transfer or assignment of income, revenues,
receipts or gains to a Person from any other Person, or (iii) otherwise requires a Person to indemnify any other Person in respect of Taxes. 
  
 (xiii) “Transfer Tax” means any excise, sales, use, transfer, documentary, filing, recordation or other similar tax or fee,
together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties. 
  
 (i) ADDITIONAL COVENANTS. 
  
 (i) Each of the Company, Acquiror and their respective Affiliates shall exercise their best efforts to obtain and assist in obtaining the
advance letter ruling from the IRS contemplated by Section 6.16 hereof. Without in any way limiting the foregoing, each of the Company and Acquiror agrees that it (and such of its Affiliates as are reasonably required by the IRS) shall make such
representations as are reasonably required by the IRS pursuant to Rev. Proc. 96-30, 1996-1 C.B. 696, including, in particular, Sections 4.04 and 4.05 thereof. 
  

(ii) Acquiror covenants that any representations made by it or any of its Affiliates to the IRS in connection with the IRS ruling
request and any information supplied by it to the IRS in connection with the ruling request will be true and accurate. In addition, for a period of two years after the Closing Date: 
  
 (A) except for actions taken in the ordinary course of business or as otherwise required by applicable Law,
Acquiror shall not sell, transfer, distribute or otherwise dispose of any of the operating assets of Broadcasting or any shares of capital stock of Broadcasting or a Broadcasting Subsidiary, whether by merger or otherwise, in a transaction or series
of transactions which would cause the Transactions to fail to satisfy the continuity of business enterprise requirements of the Treasury Regulations; and 
  

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 (B) Acquiror shall not adopt a plan of liquidation or initiate and enter into an
agreement of merger or other transaction pursuant to which the corporate legal existence of Acquiror would terminate or the outstanding stock of Acquiror would, in a taxable transaction, be converted into cash, other property or the stock or
securities of any other issuer. 
  
 Notwithstanding the foregoing, Acquiror may take any actions described in clauses (A) and (B) above if it first obtains either (i) a ruling from the IRS; or (ii) an opinion reasonably satisfactory to Newco of nationally recognized tax
counsel that such actions will not result in the Distribution or the Merger being taxable to the Company’s stockholders. 
  
 (j) PAYMENT OF SPIN-OFF TAX. The Company shall pay the Spin-Off Tax to the appropriate governmental authorities as and when such payment is required to be
made, including by making estimated Tax payments which take into account its liability for the Spin-Off Tax as and when such estimated Tax payments are required to be made. 
  
 6.10. NOTIFICATION. Each party hereto shall, in the event of, or promptly after obtaining knowledge of the occurrence or
threatened occurrence of, any fact or circumstance that would cause or constitute a breach of any of its representations and warranties set forth herein, give notice thereof to the other parties and shall use its reasonable best efforts to prevent
or promptly remedy such breach. 
  
 6.11. EMPLOYEE BENEFIT
MATTERS. 
  
 (a) Except as otherwise provided herein, as of the
Effective Time, Newco will assume sponsorship of and responsibility for the employer obligations under the Company Employee Plans. From and after the Effective Time, except with respect to previously accrued and unpaid benefits, all Broadcasting
Employees will cease to be covered by any Company Employee Plan that is assumed by Newco. Except as otherwise specifically provided herein, neither Acquiror, the Company, PBC nor any of their respective Affiliates, shall retain or acquire any
liability or obligation under any Company Employee Plan; and Newco will defend and indemnify Acquiror, the Surviving Corporation, PBC and their respective Affiliates from and against all Losses arising from or relating to any such liability or
obligation that is not so retained or acquired. The indemnification arrangements set forth in this Section 6.11(a) shall be subject to the procedures set forth in Section 2.04 of the Contribution Agreement. All Broadcasting Employees who
become employees of Acquiror as of the Effective Time will thereupon become fully vested in their accrued benefits under the Broadcasting Pension Plans. 
  
 (b) All Broadcasting Employees who are employed by the Company or PBC or a subsidiary of PBC immediately prior to the Effective Time will remain or become
employees of PBC (or a Subsidiary of PBC) or Surviving Corporation, as the case may be, immediately after the Effective Time (the “Transferred Employees”). At the Effective Time, Acquiror will provide or cause Transferred Employees (and,
where applicable, their eligible dependents) to be provided with compensation, pension, retirement, welfare (including, without limitation, group health, life insurance, disability, severance and vacation benefits) and fringe benefits (exclusive of
any benefit or plan which provides for any opportunity to acquire or invest in employer equity) which, in the aggregate, are not less favorable than the compensation, pension, welfare and fringe benefits theretofore provided to such Transferred
Employees (and their dependents) under the Broadcasting Employee Plans, PROVIDED HOWEVER that Acquiror shall not be required to offer post-retirement benefits except as provided in Section 6.11(f). Each Transferred Employee’s
pre-Effective Time service with the Company or its Affiliates will be treated as service with Acquiror and its Affiliates for purposes of determining such Transferred Employee’s eligibility, vesting and seniority (but expressly excluding
service for determining benefit accruals) under the Employee Plans of Acquiror and its Affiliates, if such service is otherwise creditable under such plans, from and after the Effective Time. 
  

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 (c) At or as soon as practicable after the Effective Time, the account balances held for the Transferred
Employees under the Pulitzer Retirement Savings Plan (the “Pulitzer Savings Plan”) will be transferred in cash (or such other form as may be agreed upon by Newco and Acquiror) by the trustee of the trust maintained under the Pulitzer
Savings Plan to the trustee of the trust maintained under an existing or newly-established qualified defined contribution plan sponsored by Acquiror or PBC (the “Transferee DC Plan”) in a plan-to-plan transfer of assets and liabilities
that satisfies the requirements of applicable law, including Sections 411(d) and 414(l) of the Code. After the Effective Time and until the completion of the aforesaid plan-to-plan transfer of assets and liabilities, Newco will cause the fiduciaries
of the Pulitzer Savings Plan to process distributions that become payable to Transferred Employees whose employment with Acquiror, PBC or any of their Subsidiaries is terminated, and the amount to be transferred in the plan-to-plan transfer will be
reduced accordingly. The Company, Newco and Acquiror will make or cause to be made any plan amendments and filings as may be required in connection with said plan-to-plan transfer of assets and liabilities from the Pulitzer Savings Plan to the
Transferee DC Plan, whether before or after the Effective Time. Newco and Acquiror each may require, as a condition to the plan-to-plan transfer from the Pulitzer Savings Plan to the Transferee DC Plan, evidence reasonably satisfactory to it or its
counsel of the qualified status of the Transferee DC Plan or the Pulitzer Savings Plan, as the case may be, at the time of such transfer under Section 401(a) of the Code. Each of the parties will pay its own expenses in connection with the plan to
plan transfer of assets and liabilities from the Pulitzer Savings Plan to the Transferee DC Plan. Newco and Acquiror will take such other and further actions as may be required or reasonably requested by the other in order to carry out the transfer
of assets and liabilities contemplated by this subsection without undue delay. 
  
 (d) At or as soon as practicable after the Effective Time, Newco shall cause the trustee of the Pulitzer Publishing Company Pension Plan (the “Pulitzer Pension Plan”) to transfer to the trustee of the trust
maintained as part of an existing or newly-established qualified defined benefit pension plan maintained or to be maintained by Acquiror or PBC (the “Transferee DB Plan”) cash (or such other assets as may be agreed upon by said trustees)
and benefit liabilities accrued prior to the Effective Time for and on behalf of the Transferred Employees under the Pulitzer Pension Plan in a plan-to-plan transfer of assets and liabilities that satisfies the requirements of applicable law,
including the provisions of Sections 414(l) and 411(d) of the Code. For these purposes, the amount of the plan-to-plan asset transfer will be equal to the current liability as defined in Section 412(l)(7) of the Code (calculated as of the Effective
Time with appropriate interest adjustment to the date of transfer at the rate assumed for calculating the benefit liability) using the 1983 Group Annuity Morality Table and the PBGC annuity valuation rate in effect at the Effective Time, provided
that the amount transferred shall in no event be less than the amount required to be transferred pursuant to Section 414(l) of the Code, and Section 4044 of ERISA as of the Effective Time. The value of the assets and liabilities to be transferred
from the Pulitzer Pension Plan to the Transferee DB Plan shall initially be calculated and certified as correct as soon as practicable following the Effective Time by an actuary selected by Newco (“Newco’s Actuary”). The Acquiror will
have the right to appoint is own actuary (“Acquiror’s Actuary”) for the purpose of verifying whether the calculation made by Newco’s Actuary is correct. Such calculation shall be based upon the method and assumptions specified
for this purpose by Section 414(l) of the Code and the regulations issued thereunder. The calculations certified by Newco’s Actuary shall be final, conclusive and binding unless, within thirty (30) days after the delivery of such certification
to Acquiror’s Actuary, together with such supporting information as Acquiror’s Actuary may reasonably request, Acquiror’s Actuary shall notify Newco’s Actuary of its disagreement with same. If any such disagreement is not
resolved to the satisfaction of Newco and Acquiror within thirty (30) days of Newco’s receipt of such notification, then either Newco or Acquiror may elect to have the calculations submitted for resolution to a third independent actuary
designated for this purpose by both Newco’s Actuary and Acquiror’s Actuary, whose determination shall be made within thirty (30) days and shall be conclusive and binding on all Persons. After the Effective Time and until the completion of
the aforesaid plan to plan transfer of assets and liabilities, Newco will cause the fiduciaries of the Pulitzer Pension Plan to process distributions that become payable to Transferred Employees whose employment with Acquiror, PBC or any of their
Subsidiaries is terminated, and the value of assets and liabilities to be transferred in the plan to plan transfer will be reduced accordingly. The Company, Newco and Acquiror will make or cause to be made any plan amendments and filings (including,
without limitation, any filing required pursuant to Section 4043(c) of ERISA) as may be required or appropriate in 

  

 I-36 

 
connection with said plan-to-plan transfer of assets and liabilities from the Pulitzer Pension Plan to the Transferee DB Plan, whether before or after the
Effective Time. Newco and Acquiror each may require, as a condition of the plan-to-plan transfer from the Pulitzer Pension Plan to the Transferee DB Plan, evidence reasonably satisfactory to it or its counsel of the qualified status of the
Transferee DB Plan or the Pulitzer Pension Plan, as the case may be, at the time of such transfer under Section 401(a) of the Code. Each of the parties will pay its own expenses in connection with the plan-to-plan transfer of assets and liabilities
from the Pulitzer Pension Plan film to the Transferee DB Plan. Newco and Acquiror will take such other and further actions as may be required or reasonably requested by the other in order to carry out the transfer of assets and liabilities
contemplated by this subsection without undue delay. 
  
 (e) No
provision of this Section 6.11 or this Agreement shall create any third party beneficiary or other rights in any employee or former employee (including any beneficiary or dependent thereof) or any bargaining unit representing any employee or
former employee of the Company, PBC or any of their Subsidiaries in respect of continued employment (or resumed employment) with Acquiror or any of its Subsidiaries, and no provision of this Section 6.11 or this Agreement shall create any
such rights in any such employee or former employee in respect of any benefits that may be provided, directly or indirectly, under any Employee Plan or any plan or arrangement which may be established by Acquiror or any of its Subsidiaries.

  
 (f) The following obligations and Broadcasting Employee Plans
will not be assumed by Newco and will continue to be the sole responsibility of the Company and PBC: (1) the satisfaction and timely payment of any retirement or other benefits that have been earned as of the Effective Time by Transferring Employees
(other than Ken J. Elkins) under the Pulitzer Publishing Company Supplemental Executive Retirement Plan (which benefits will become fully vested as of the Effective Time) (the “SERP Liability”), PROVIDED, HOWEVER, that Newco will pay to
the Surviving Corporation in cash, promptly after the Effective Time on demand by Acquiror, as an adjustment to the Contribution to be treated for tax purposes in accordance with the treatment of indemnitee payments under Section 6.09(e), in
an amount equal to the excess of the SERP Liability over the deferred tax asset attributable to the SERP Liability calculated in accordance with GAAP, consistently applied, (2) the executive employment and participation agreements listed on
Schedule 6.11(f)(2) annexed hereto, (3) the group health plan maintained by PBC and any other Broadcasting Employee Plan listed on Schedule 6.11(f)(3) annexed hereto, which is sponsored and maintained by PBC or any of its subsidiaries
exclusively for the benefit of any current or former Broadcasting Employees (and their eligible dependents and beneficiaries) (it being understood that the assets to be contributed to Newco pursuant to Section 2.02 will not include employee
balances, if any, under such plans), and (4) post-retirement medical or other welfare benefits which are or may become payable to any Transferring Employee or any dependent or beneficiary of a Transferring Employee pursuant to the Broadcasting
Employee Plan(s) listed on Schedule 6.11(f)(4) annexed hereto. 
  
 (g) At or immediately prior to the Effective Time, the Company will satisfy its retention and transaction incentive obligations then payable under any participation and employment agreements described on Schedule 6.11(g).
Notwithstanding anything to the contrary contained herein, any retention or transaction incentive, stock option cashout (described in Section 6.12 of this Agreement) or other compensatory amounts payable by the Company to an individual who, for the
taxable year of the Company ending on the date the Merger is consummated, is a “covered employee” of the Company (within the meaning of Section 162(m)(3) of the Code), will be paid at the Effective Time to the trustee of a trust
established for their benefit by Newco (the “Newco Trust”) if and to the extent that the payment of those amounts, when added to all other compensation paid or payable to that individual, would not be deductible by the Company for such
taxable year by reason of the deduction limitation prescribed by Section 162(m)(l) of the Code. Obligations covered by amounts transferred to the Newco Trust will be deemed to have been assumed by Newco for purposes of applying the provisions of
Section 6.11(a) of this Agreement, and neither the Acquiror, the Surviving Corporation, PBC nor any of their respective Affiliates will have any further liability with respect to said covered obligations. At the Effective Time, the Company will have
made all contributions theretofore required to be made to any Broadcasting Employee Plan for the benefit of Transferred Employees. 
  

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 6.12. EMPLOYEE STOCK OPTIONS. At or immediately prior to the Effective Time, the Company will cause all
options then outstanding under the Company’s 1986 and 1994 stock option plans (the “Company Option Plans”), whether or not vested, to be cashed out and terminated. The amount payable by the Company in respect of the termination of an
outstanding Company stock option will be equal to the difference between the exercise price of the option and the average daily closing price of the Company Common Stock for the ten trading days immediately prior to the Closing Date. The Company may
prohibit the exercise of vested options after a specified cutoff date prior to the Effective Time in order to facilitate the orderly liquidation and termination of the remaining vested and nonvested outstanding options. Unless the Board determines
otherwise, the Company will suspend payroll deductions and Company stock option grants under the Employee Stock Purchase Plan as of or prior to October 1, 1998. All such Employee Stock Purchase Plan grants will have been exercised or terminated
before the Effective Time. 
  
 6.13. MEETINGS OF STOCKHOLDERS.
Subject to the terms and conditions of this Agreement, each of the Company and Acquiror shall take all action necessary, in accordance with applicable law and its charter and bylaws, to duly call, give notice of, convene and hold a meeting of its
stockholders to consider and vote upon the adoption and approval of the Merger, this Agreement and the Transactions (except the Company Charter Amendment, in the case of Acquiror). The Company and Acquiror shall coordinate and cooperate with respect
to the timing of their respective stockholder meetings and shall endeavor to hold such meetings on the same day. The stockholder vote required for the adoption and approval of the Merger, this Agreement and the Transactions (except the Company
Charter Amendment, in the case of Acquiror) shall be the vote required: (i) in the case of the Company, by the DGCL and the Company’s Certificate of Incorporation; and (ii) in the case of Acquiror, by the DGCL and Acquiror’s Certificate of
Incorporation. The Boards of Directors of the Company and Acquiror shall recommend that their respective stockholders approve the Merger, this Agreement and the related Transactions (except the Company Charter Amendment, in the case of Aquiror) and
such recommendation shall be contained in the Joint Proxy Statement/Prospectus. Nothing contained in the preceding sentence shall prohibit the Company from taking and disclosing to its stockholders a position contemplated by Rule 14e-2(a)
promulgated under the Exchange Act or from making any disclosure to the Company or the Company’s Stockholders if, in the good faith judgment of the Board of Directors of the Company, after consultation with outside counsel, failure so to
disclose would be inconsistent with its duties to the Company or the Company’s stockholders under applicable law. Notwithstanding the preceding sentence, neither the Company nor its Board of Directors nor any committee thereof shall withdraw or
modify, or propose publicly to withdraw or modify its position with respect to, this Agreement or the Merger or, except as permitted by the preceding sentence, approve or recommend, or propose publicly to approve or recommend, an Acquisition
Proposal. 
  
 6.14. REGULATORY AND OTHER AUTHORIZATIONS.

  
 (a) The Company and Acquiror agree to use their respective
commercially reasonable efforts (i) to obtain all Licenses and waivers of federal, state, local and foreign regulatory bodies and officials (each a “Governmental Authority”) and non-governmental third parties that may be or become
necessary for performance of their respective obligations pursuant to this Agreement, (ii) to lift or rescind any injunction or restraining order or other order adversely affecting the ability of the parties hereto to consummate the Transactions
contemplated hereby and (iii) to effect all necessary registrations and filings including, but not limited to, filings under the HSR Act and submissions of information requested by any Governmental Authority. The parties hereto further covenant and
agree, with respect to any threatened or pending preliminary or permanent injunction or other order, decree or ruling or statute, rule, regulation, executive order or withheld waiver or approval that would adversely affect the ability of the parties
hereto to consummate the Merger and the other Transactions contemplated hereby, to respectively use their commercially reasonable efforts (including, if necessary, the measures described in subsection (b) below) to prevent the entry, enactment or
promulgation thereof or to obtain such waiver or approval, as the case may be. 
  
 (b) Without limiting the obligations of the parties hereto under Section 6.14(a), Acquiror and the Company agree to take or cause to be taken the following actions: (i) provide promptly to Governmental
Authorities with regulatory jurisdiction over (a) enforcement of any applicable antitrust laws (“Government Antitrust Entity”) or 

  

 I-38 

 
(b) the laws, rules or regulations of the FCC or otherwise relating to the broadcast, newspaper, mass media or communications industry (“Government
Communications Entity,” and together with Government Antitrust Entity, a “Government Regulatory Entity”) information and documents requested by any Government Regulatory Entity, or necessary, proper or advisable to permit consummation
of the Transactions contemplated by this Agreement; (ii) without in any way limiting the provisions or Section 6.14(b)(i) above, (a) file any Notification and Report Form and related material required under the HSR Act as soon as practicable
and in any event not later than fifteen (15) business days after the date hereof (which shall request early termination of the waiting period imposed by the HSR Act), and thereafter use its reasonable efforts to certify as soon as practicable its
substantial compliance with any requests for additional information or documentary material that may be made under the HSR Act and (b) file the FCC Application as soon as practicable and in any event not later than fifteen (15) business days after
the date hereof; (iii) the proffer by Acquiror of its willingness to sell or otherwise dispose of either WBAL or WGAL or any other broadcast station, if such action is necessary or reasonably advisable for the purpose of avoiding or preventing any
action by any Government Regulatory Entity which would restrain, enjoin, withhold approval or otherwise prevent consummation of the Transactions contemplated by this Agreement; and (iv) Acquiror shall take promptly, in the event that any permanent
or preliminary injunction or other order is entered or becomes reasonably foreseeable to be entered in any proceeding that would make consummation of the Transactions contemplated hereby in accordance with the terms of this Agreement unlawful or
that would prevent or delay consummation of the Transactions contemplated hereby, any and all commercially reasonable steps including the appeal thereof, the posting of a bond or the taking of the steps contemplated by clause (iii) of this
subsection (b) necessary to vacate, modify, suspend such injunction or order, or obtain such approval so as to permit such consummation. Each of the Company and Acquiror will provide to the other copies of all correspondence between it (or its
advisors) and any Government Regulatory Entity relating to this Agreement or any of the matters described in this Section 6.14(b) other than statements or filings under the HSR Act. Acquiror and Company agree that all telephonic calls,
meetings or hearings with a Government Regulatory Entity regarding the Transactions contemplated hereby or any of the matters described in this Section 6.14(b) shall include representatives of each of Acquiror and Company. 
  
 (c) Each party hereto shall promptly inform the other of any material
communication from any other Government Regulatory Entity regarding any of the Transactions contemplated hereby. If any party hereto or any Affiliate thereof receives a request for additional information or documentary material from any such
Government Regulatory Entity with respect to the Transactions contemplated hereby, then such party shall endeavor in good faith to make, or cause to be made, as soon as reasonably practicable and after consultation with the other party, an
appropriate response in compliance with such request. Acquiror shall advise Company promptly in respect of any understandings, undertakings or agreements (oral or written) that Acquiror proposes to make or enter into with any other Government
Regulatory Entity in connection with the Transactions contemplated hereby. 
  
 (d) Notwithstanding the generality of any other provision of this Section 6.14, each of Acquiror and the Company, to the extent applicable, further agrees to file contemporaneously with the filing of the FCC
Application any requests for waivers of applicable FCC rules or rules or regulations of other Governmental Regulatory Entities as may be required, to expeditiously prosecute such waiver requests and to diligently submit any additional information or
amendments for which the FCC or any other relevant Governmental Regulatory Entity may ask with respect to such waiver requests. In furtherance of the foregoing, Acquiror will agree to seek a temporary waiver (not more than 6 months in duration) of
the FCC’s mass media ownership rules (the “Temporary Waiver”) to allow for the disposition of the assets comprising either WBAL or WGAL or any other broadcast station (the “Divestiture Assets”) to the extent that, under the
FCC’s mass media ownership rules, the Divestiture Assets could not be held in common control with any of the Acquiror broadcasting assets following the Effective Time, and (i) conditional waivers of the FCC’s mass media ownership rules
(the “Conditional Waivers”) to allow for the common ownership of WESH-TV, Daytona Beach, Florida, and WWWB-TV, Lakeland, Florida, and WLKY-TV, Louisville, Kentucky, and WLWT-TV, Cincinnati, Ohio; and (ii) waivers of the FCC’s mass
media ownership rules to permit the common ownership of (A) WLKY-TV, Louisville, Kentucky, and WLKY (AM), Louisville, Kentucky, and (B) WXII (TV), Winston-Salem, North Carolina, and 

  

 I-39 

 
WXII (AM), Eden, North Carolina. Acquiror further covenants that, prior to the Effective Time, it shall not acquire any new or increased “attributable
interest,” as defined in the FCC rules, in any media property (“Further Media Interest”), which Further Media Interest could not be held in common control with any Station by Acquiror following the Effective Time (including by virtue
of the FCC’s multiple ownership limits), without the prior written consent of the Company. Notwithstanding anything to the contrary contained in this Agreement, it shall not be a condition to the Closing that any such waiver shall have been
obtained. 
  
 (e) If at Closing one or more applications for
renewal of any of the Company’s FCC Licenses is pending or any order of the FCC granting an application for renewal of any of the Company’s FCC Licenses has not become a Final Order, then each party agrees to abide by the procedures
established in Stockholders of CBS, Inc., FCC 95-469 (rel. Nov. 22, 1995) ¶¶ 31-35, for processing applications for assignment of licenses during the pendency of an application for renewal of a station license (or such other
procedures as may be established by the FCC). For purposes of this provision, a “Final Order” is an order of the FCC granting any such renewal application (i) that has not been reversed, stayed, enjoined, set aside, annulled or suspended;
(ii) as to which, no timely request for a stay, petition for reconsideration or appeal of sua sponte action of the FCC with comparable effect is pending; and (iii) the time for filing any such request, petition or appeal or for the taking of
any such action sua sponte by the FCC has expired. The parties further agree that the pendency of any such renewal application or applications, or the fact that the FCC grant of any renewal application shall not have become a Final Order,
shall not be a cause for delaying the Closing. Notwithstanding anything in this Agreement to the contrary, this Section shall survive the Closing until any order issued by the FCC with respect to any such renewal application becomes a Final Order.

  
 6.15. FURTHER ASSURANCES. Upon the terms and subject to the
conditions hereof, each of the parties hereto shall execute such documents and other instruments and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and consummate the Transactions or, at and
after the Closing Date, to evidence the consummation of the Transactions by this Agreement. 
  
 6.16. IRS RULING. The Company shall, as promptly as practicable after the date hereof, prepare and submit to the IRS a request for an advance letter ruling from the IRS that the Contribution and Distribution will
qualify as a reorganization within the meaning of Section 368(a)(1)(D) of the Codes and that the Company’s stockholders will recognize no gain or loss (and no amount will be included in the income of the Company’s stockholders) under
Section 355(a) of the Code as a result of the Distribution. Such request shall be true and correct in all material respects, and all facts material to the ruling shall be disclosed in such request. The Company shall afford Acquiror with reasonable
opportunity to review and comment on the IRS ruling request prior to its submission to the IRS. The Company shall advise Acquiror’s tax counsel of the substance of all communications with the IRS relating to the IRS ruling request, and provide
Acquiror and its tax counsel with copies of all written materials submitted to the IRS and written communications received from the IRS in connection with such ruling request. If any written communication to the IRS is to include information
relating to Acquiror or any of its Affiliates (other than public filings made with the SEC) or representations of Acquiror, any of its Affiliates or any of their respective officers, directors or shareholders, such information shall be delivered to
Acquiror and its tax counsel for their review and comment prior to submission, and the Company shall make such reasonable changes and corrections to such information or representations as are requested by Acquiror. 
  
 6.17. RECORDS RETENTION. 
  
 (a) For a period of five years after the Closing Date, Acquiror shall retain
all of its books and records relating to Broadcasting for periods prior to the Closing Date and Newco shall have the right to inspect and copy such books and records during normal business hours, upon reasonable prior notice, in connection with the
preparation of financial statements, reports and filings and for any other reasonable purpose including its indemnification obligations under this Agreement and the Contribution Agreement. 
  

 I-40 

 (b) For a period of five years after the Closing Date, Newco shall retain all of its books and records
relating to Newco and the Newspaper Subsidiaries for periods prior to the Closing Date and Acquiror shall have the right to inspect and copy such books and records during normal business hours, upon reasonable prior notice, in connection with the
preparation of financial statements, reports and filings and for any other reasonable purpose including its indemnification obligations under this Agreement and the Contribution Agreement. 
  
 6.18. STOCK EXCHANGE LISTING. Newco shall apply to the NYSE for the listing
of the Newco Common Stock and shall use its reasonable best efforts to receive approval for the listing of such shares and, if such listing is not available, then the NASDAQ. Acquiror shall submit a supplemental listing application to NASDAQ or the
NYSE, as the case may be, for the listing of the Merger Stock and shall use its reasonable best efforts to receive approval for the listing of such stock. 
  
 6.19. COMPANY NAMES. 
  
 (a) Acquiror acknowledges that the name “Pulitzer,” or any part thereof, whether alone or in combination with one or more other words, are to
the extent owned by the Company or any of its Subsidiaries an asset of the Company being transferred to Newco in the Contribution. On the Closing Date, Acquiror shall (i) cause PBC and the Broadcasting Subsidiaries to change their names to delete
any reference therein to the aforesaid name, (ii) reasonably cooperate in assisting Newco to change its name to Pulitzer Inc., and (iii) cease using the aforesaid name in connection with the business operations of Broadcasting. 
  
 (b) Between the consummation of the Contribution and the Closing, the
Company, PBC and the Broadcasting Subsidiaries shall have a non-exclusive license to use the name “Pulitzer.” 
  
 6.20. OTHER AGREEMENTS. Contemporaneously with the execution and delivery of this Agreement, the parties thereto have executed and delivered the following
agreements: (i) a Registration Rights Agreement in substantially the form set forth in Exhibit D, (ii) the FCC Agreement in substantially the form set forth in Exhibit E, (iii) a Board Representation Agreement in substantially the form
set forth in Exhibit F, (iv) the Arizona Diamondbacks agreement in substantially the form set forth in Exhibit G, (v) the Acquiror Voting Agreement in substantially the form of Exhibit H, and (vi) the Pulitzer Voting Agreement
in substantially the form of Exhibit I. The Company, Newco and Acquiror shall fully and timely perform all their respective obligations under, and take all actions necessary to effectuate the intent and purposes of, the foregoing agreements.

  
 6.21. FORM 8-K; PROVISION OF FINANCIAL STATEMENTS. 

 
 (a) As soon as practicable after the date hereof, the Company will prepare
and file a Current Report on Form 8-K (the “Form 8-K”) which will include a description of the business of Broadcasting and certain financial and other information with respect to Broadcasting. The Company covenants that the Form 8-K will
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

  
 (b) At the request of Acquiror, the Company agrees to provide
(or, if requested by Acquiror, cooperate with Acquiror in the preparation of) as promptly as practicable (but in any event within 45 days of the request) such financial statements (audited or unaudited, as requested by Acquiror) relating to
Broadcasting as the Acquiror may reasonably request in order to comply with the requirements of the Securities Act or the Exchange Act or in order to secure financing (including pursuant to a public offering registered under the Securities Act).

  
 6.22. WORKING CAPITAL ADJUSTMENT. 
  
 (a) Two days prior to the Effective Time, the Company shall inform Acquiror
of (i) the Company’s estimate of the Working Capital Amount as of the end of the most recently available month end period immediately preceding the Effective Time (the “Estimated Working Capital Amount”) and (ii) the Company’s
basis for such estimates. The calculation of the Estimated Working Capital Amount shall be reasonably satisfactory to Acquiror. 
  

 I-41 

 (b) At the Effective Time, Acquiror shall pay to Newco in immediately available funds the amount, if any,
by which the Estimated Working Capital Amount exceeds $41,000,000 or Newco shall pay to Acquiror in immediately available funds the amount, if any, by which $41,000,000 exceeds the Estimated Working Capital Amount. 
  
 (c) As promptly as practicable after the Effective Time, but in any event
within ninety (90) days thereafter, Acquiror shall prepare and deliver to Newco a schedule (the “Acquiror Schedule”) showing Acquiror’s determination of the Working Capital Amount at the Closing Date. If Newco disagrees with the
determination set forth in the Acquiror Schedule, Newco shall give notice thereof to Acquiror within sixty (60) days after delivery of the Acquiror Schedule to Newco, such notice to include reasonable detail regarding the basis for the disagreement.

  
 (d) Acquiror and Newco shall attempt to settle any such
disagreement; any such settlement shall be final and binding upon Acquiror and Newco. If, however, Acquiror and Newco are unable to settle such dispute within sixty (60) days after receipt by Acquiror of such notice of dispute, the dispute shall be
submitted to an independent certified public accounting firm mutually acceptable to Acquiror and Newco for resolution, and the decision of such firm shall be final and binding upon Acquiror and Newco. All costs incurred in connection with the
resolution of said dispute by such independent public accountants, including expenses and fees for services rendered, shall be paid one-half by Acquiror and one-half by Newco. Acquiror and Newco shall use reasonable efforts to have the dispute
resolved within ninety (90) days after such dispute is submitted to said independent public accountants. The final determination of the Working Capital Amount (whether as a result of Newco’s failing to give notice of Newco’s disagreement
with Acquiror’s determination within the time period prescribed above, a resolution by Acquiror and Newco of any such disagreement, or a determination by an accounting firm selected pursuant to this paragraph to resolve any disagreement among
the parties) may occur on different dates. 
  
 (e) Within ten (10)
Business Days following a final determination of the Final Working Capital Amount (“Final Working Capital Amount”), (i) if the Final Working Capital Amount exceeds the Estimated Working Capital Amount, then Acquiror will pay to Newco in
immediately available funds an amount equal to such excess plus interest at the Agreed Rate from the Closing Date to the date of payment and (ii) if the Estimated Working Capital Amount exceeds the Final Working Capital Amount, Newco will pay to
Acquiror in immediately available funds an amount equal to such excess plus interest at the Agreed Rate from the Closing Date to the date of payment. Any such payments shall be made on an After-Tax Basis. 
  
 (f) In the event that after the Effective Time it is determined that the
Company shall have failed to pay or provide for the Existing Company Debt and the Deal Expenses as provided in Section 2.0l(b) and the Surviving Corporation makes such payment, Newco shall promptly pay such amount to the Surviving Corporation
in immediately available funds promptly upon demand therefor. 
  
 6.23. CAPITAL EXPENDITURES. Prior to the Effective Time, PBC and the Broadcasting Subsidiaries shall be responsible for and pay all capital expenditures incurred in the ordinary and usual course of their respective businesses based upon the
Company’s plans concerning the timing of such capital expenditures during 1998. 
  
 6.24. EXCESS CASH. From time to time, after the date of execution of this Agreement and until the Effective Time, and subject to applicable law, (i) PBC and the Broadcasting Subsidiaries may pay cash dividends, or
otherwise make cash distributions, to the Company or any of its Subsidiaries and (ii) the Company shall contribute to Newco cash held by the Company, including the proceeds of the New Company Debt after payment or provision for the Existing Company
Debt and the Deal Expenses as provided in Section 2.01(b). Immediately prior to the Contribution, PBC and the Broadcasting Subsidiaries shall, to the extent permitted by law, pay dividends in cash or cash equivalents, or otherwise make
contributions in cash or cash equivalents, to the Company and its Subsidiaries so that neither PBC nor the Broadcasting Subsidiaries owns any cash or cash equivalents at the Effective Time, except that each of the Stations may retain cash in those
operating and payroll checking accounts in existence as of the date hereof, in amounts necessary, as determined by the Company, for general operating purposes of each of the Stations or group of Stations, as the case may be. 
  

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 6.25. INDEMNITY RELATING TO CERTAIN LITIGATION. 
  
 (a) Newco shall indemnify from and after the Closing Date (i) the Surviving
Corporation, its Subsidiaries, including Broadcasting, and their Affiliates against all Losses in connection with any suit, action, proceeding or investigation pending at or arising after the Closing Date that relates to the Newspaper Subsidiaries
or their respective operations prior to the Effective Time and (ii) any person who was an officer, director, partner or employee of the Company, PBC or any Broadcasting Subsidiary against all Losses in connection with any such suit, action,
proceeding or investigation. The Company and Newco, jointly and severally, shall indemnify Acquiror and its Subsidiaries against all Losses arising prior to the Closing, and Newco shall indemnify the Surviving Corporation and its Subsidiaries
against all Losses arising after the Closing, from or relating to any claim, action or proceeding brought by or on behalf of the holders of Company Stock in connection with the Transactions except by reason of actions taken or omitted to be taken by
Acquiror or except as provided in Section 6.06 hereof. The obligations of the Company pursuant to this Section 6.25(a) shall terminate at the Effective Time. 
  
 (b) Acquiror shall indemnify from and after the Closing Date (i) Newco, its Subsidiaries and their Affiliates against all
Losses in connection with any suit, action, proceeding or investigation pending at or arising after the Closing Date that relates to the business and operations of Broadcasting and (ii) any person who was an officer, director, partner or employee of
PBC or any Broadcasting Subsidiary prior to, whether or not any person continues in such capacity after, the Closing against all Losses in connection with any such suit, action, proceeding or investigation. Acquiror shall indemnify the Company and
Newco against all Losses arising from or relating to any claim, action or proceeding brought by or on behalf of the holders of Acquiror Common Stock in connection with the Transactions except by reason actions taken or omitted to be taken by the
Company or except as provided in Section 6.06 hereof. 
  
 (c) The indemnification arrangements set forth in this Section 6.25 shall be subject to the procedures set forth in Section 2.04 of the Contribution Agreement. 
  
 6.26. CANCELLATION OF INTERCOMPANY ARRANGEMENTS. Prior to the Effective Time, and except as otherwise provided herein or as
otherwise agreed by the parties hereto, all accounts, payables, receivables, contracts, commitments and agreements between the Company and its Newspaper Subsidiaries, on the one hand, and PBC and the Broadcasting Subsidiaries, on the other hand,
will be settled, cancelled or otherwise terminated. 
  
 6.27.
NETWORK AFFILIATION AGREEMENTS. Upon the terms and subject to the conditions hereof, each of the parties shall use its respective reasonable best efforts to take or cause to be taken all actions and to do or cause to be done all other things
necessary to assign the Station Network Affiliation Agreements to Acquiror. 
  
 6.28. GROSS-UP MATTERS. 
  
 (a)
Newco shall be liable for, shall pay and shall indemnify and hold the Surviving Corporation, its Subsidiaries, their Affiliates and their respective directors, officers and employees harmless against all Losses arising from or relating to any claim
or dispute relating to the Gross-Up Agreements and/or the Gross-Up Amount. 
  
 (b) Newco shall have the sole authority to deal with and control any matters, disputes, claims, proceedings or litigations relating to the Gross-Up Agreements and/or the Gross-Up Amount. If Acquiror receives written
notice that any Person is asserting a claim or is otherwise disputing the amount of the Gross-Up Amount for which Newco is or may be liable, in whole or in part, under this Agreement, Acquiror shall promptly inform Newco, and Newco, at its sole cost
and expense, shall have the sole right to control any resulting actions, proceedings or negotiations, including the sole right to determine whether and when to settle any such claim or dispute, PROVIDED HOWEVER, that the failure by an indemnified
party hereunder to so notify Newco shall not affect Newco’s obligations except to the extent that Newco is actually prejudiced by such failure and Newco 

  

 I-43 

 
may not settle a claim without the Surviving Corporation’s consent if such settlement (i) makes an admission or acknowledgement of liability or
culpability with respect to any indemnified party hereunder, (ii) does not include a complete release of such indemnified parties, or (iii) requires any indemnified party hereunder to make any payment or forego or take any action or otherwise
materially adversely affect such indemnified party. 
  
 (c)
Acquiror shall use commercially reasonable efforts to cooperate with Newco at Newco’s expense, in a timely manner in the resolution of any claim or dispute by any Person relating to the Gross-Up Agreements and/or the Gross-Up Amount, including
the performance of all rights and non-monetary obligations of the Surviving Corporation under the Gross-Up Agreements and the conduct of any actions or proceedings relating thereto. 
  
 (d) Any amounts owed by Newco to any indemnified party under this Section 6.28 shall be paid within ten days of
notice from such indemnified party, PROVIDED, HOWEVER, that if Newco has not paid such amounts and is contesting such amounts in good faith, Newco shall not be required to make payment until it is determined finally, by settlement, by agreement or
determination in accordance with the Gross-Up Agreements or by a court, that payment is due. 
  
 6.29. AFFILIATE LETTERS; FCC LETTERS. 
  
 (a) At least thirty (30) days prior to the Closing Date, the Company shall deliver to Acquiror a list of names and addresses of those persons who were, in the Company’s reasonable judgment, at the record date for the meeting of the
Company’s stockholders to be held for the purposes of voting on the Transactions, “affiliates” (each such person, an “Affiliate”) of the Company within the meaning of Rule 145 of the rules and regulations promulgated under
the Securities Act. The Company shall use all reasonable efforts to deliver or cause to be delivered to Acquiror prior to the Closing Date, from each of the Affiliates of the Company identified in the foregoing list, an Affiliate Letter in the form
attached hereto as Exhibit J. The Surviving Corporation shall be entitled to place legends as specified in such Affiliate Letters on the certificates evidencing any Acquiror Common Stock to be received by such Affiliates pursuant to the terms
of this Agreement, and to issue appropriate stop transfer instructions to the transfer agent for the Acquiror Common Stock, consistent with the terms of such Affiliate Letters. 
  
 (b) At least five (5) days prior to the Closing, the Company shall deliver to Acquiror a list names and addresses of those
Persons who, in the Company’s reasonable judgment will own immediately after the Effective Time 5% or more of outstanding Acquiror Common Stock. The Company shall use all reasonable efforts to deliver or cause to be delivered to Acquiror at the
Closing, from each of the stockholders identified on the foregoing list (other than institutional holders of such Stock), an FCC Agreement in the form attached hereto as Exhibit E other than those Persons who have executed such FCC Agreement
on the date hereof. 
  
 ARTICLE VII 
  
 CLOSING AND CLOSING DATE; CONDITIONS TO CLOSING 
  
 7.01. CLOSING AND CLOSING DATE. As soon as practicable after the satisfaction
or waiver of the conditions set forth herein (but no later than five (5) business days thereafter) and immediately prior to the filing of the Certificate of Merger, a closing of the Transactions (the “Closing”) shall take place at the
offices of Fulbright & Jaworski L.L.P., 666 Fifth Avenue, New York, New York, or on such other date and at such other location as the parties may agree in writing. The date on which the Closing occurs is referred to as the “Closing
Date.” 
  
 7.02. CONDITIONS TO THE OBLIGATIONS OF THE
COMPANY, NEWCO AND ACQUIROR. The respective obligations of the Company and Newco, on the one hand, to consummate the Transactions and the obligations of the Acquiror, on the other hand, to consummate the Merger are subject to the requirements that:

  
 (a) The Transactions shall have been approved and adopted by
the stockholders of the Company and of Acquiror, as applicable and as contemplated hereby; 
  

 I-44 

 (b) The Transactions contemplated by Article II hereof shall have been consummated in accordance
with the terms hereof and in accordance with applicable Law and the Company shall have drawn down in its entirety the New Company Debt; 
  
 (c) Any waiting period applicable to the consummation of the Transactions under the HSR Act shall have expired or been terminated; 
  
 (d) Any governmental or regulatory Licenses, notices or temporary or
permanent waivers, including FCC Approval, necessary for the performance of the parties’ respective obligations pursuant to this Agreement shall have been either filed (in the case of notices) or received and be in effect, PROVIDED that in no
event shall the foregoing require the satisfaction of any condition or the taking of any action that could under the terms of the FCC Approval be so satisfied or taken subsequent to the consummation of the Merger. “FCC Approval” means
action by the FCC or its staff granting consent to the transfer of control of the material Licenses held by Broadcasting to Acquiror which: (i) has not been reversed, stayed, enjoined, set aside, annulled or suspended; (ii) with respect to which no
timely request for a stay, petition for reconsideration or appeal of sua sponte action of the FCC with comparable effect is pending; and (iii) as to which the time for filing any such request, petition or appeal or for the taking of any such
sua sponte action by the FCC has expired; 
  
 (e) No
federal, state or foreign governmental authority or other agency or commission or court of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, or regulation, or any permanent injunction or other
order (whether temporary, preliminary or permanent), which remains in effect and which has the effect of making any of the Transactions illegal or otherwise prohibiting any of the Transactions, or which questions the validity or the legality of any
of the Transactions and which could reasonably be expected to have a Material Adverse Effect on Broadcasting or on Acquiror and its Subsidiaries taken as a whole; and 
  
 (f) The Registration Statement on Form S-4 shall have been declared effective under the Securities Act and no stop orders
with respect thereto shall have been issued. 
  
 7.03. CONDITIONS
TO THE OBLIGATIONS OF THE COMPANY AND NEWCO. The obligations of the Company and Newco to effect the Transactions are subject to the satisfaction, on or prior to the Closing Date, of the following conditions: 
  
 (a) The representations and warranties of Acquiror contained in this
Agreement, the Transaction Agreements to which it is a party or in any other document delivered pursuant hereto shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of the Closing
Date, and at the Closing Acquiror shall have delivered to the Company and Newco a certificate to that effect; 
  
 (b) Each of the obligations of Acquiror to be performed on or before the Closing Date pursuant to the terms of this Agreement or the Transaction
Agreements shall have been duly performed in all material respects on or before the Closing Date, and at the Closing Acquiror shall have delivered to the Company and Newco a certificate to that effect; 
  
 (c) The Acquiror Common Stock shall have been approved for listing on the
NYSE or the NASDAQ, as the case may be, subject to official notice of issuance; 
  
 (d) The Newco Common Stock shall have been approved for listing on the NYSE or the NASDAQ, as the case may be, subject to official notice of issuance; 
  
 (e) [INTENTIONALLY OMITTED] 
  
 (f) The Company shall have received from the IRS an advance letter ruling as contemplated by Section 6.16 hereof; 
  

 I-45 

 (g) The Company shall have received from its counsel, Fulbright & Jaworski L.L.P. (or another
nationally recognized law firm acceptable to the Company), an opinion that, based upon appropriate representations, certificates and letters acceptable to Fulbright & Jaworski L.L.P. (or another nationally recognized law firm acceptable to the
Company) dated as of the Closing Date, the Merger constitutes a tax-free reorganization under Section 368(a)(1)(A) of the Code (with appropriate exceptions, assumptions and qualifications); and 
  
 (h) The Company and Newco shall have received all customary closing documents
they may reasonably request relating to the existence of Acquiror and the authority of Acquiror to enter into this Agreement, the Transaction Agreements and the Transactions, all in form and substance reasonably satisfactory to the Company and
Newco. 
  
 7.04. CONDITIONS TO OBLIGATIONS OF ACQUIROR. The
obligations of Acquiror to effect the Merger are subject to the satisfaction, on or prior to the Closing Date, of the following conditions: 
  
 (a) The representations and warranties of the Company and Newco contained in this Agreement, the Transaction Agreements to which they are a party or in
any other document delivered pursuant hereto shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of the Closing Date, and at the Closing the Company and Newco shall have
delivered to Acquiror their respective certificates to that effect; 
  
 (b) Each of the obligations of the Company and Newco to be performed on or before the Closing Date pursuant to the terms of this Agreement shall have been duly performed in all material respects on or before the Closing Date, and at the
Closing the Company and Newco shall have delivered to Acquiror their respective certificates to that effect; 
  
 (c) The Company shall have delivered to Acquiror a certificate signed by the Chief Financial Officer of the Company certifying, as of the Closing, as to
the number of shares of capital stock of the Company outstanding, indicating the class and series of such shares: 
  
 (d) Acquiror shall have received all customary closing documents it may reasonably request relating to the existence of the Company, Newco, PBC and the
Broadcasting Subsidiaries and the authority of the Company and Newco to enter into this Agreement and the Transactions, all in form and substance reasonably satisfactory to Acquiror. 
  
 (e) Acquiror shall have received from its counsel, Rogers & Wells LLP (or another nationally recognized law firm
acceptable to Acquiror), an opinion that, based upon appropriate representations, certificates and letters acceptable to Rogers & Wells LLP (or another nationally recognized law firm acceptable to Acquiror) dated as of the Closing Date, the
Merger constitutes a tax-free reorganization under Section 368(a)(1)(A) of the Code (with appropriate exceptions, assumptions and qualifications); 
  
 (f) The Company shall have paid in full the Existing Company Debt as of the Closing; 
  
 (g) There shall have been obtained and delivered to Acquiror all necessary approvals and consents to the assignment to
Acquiror of the Station Network Affiliation Agreements; and 
  
 (h) Each of the Affiliates referred to in Section 6.29(a) shall have executed and delivered to Acquiror the Affiliate Letter referred to therein. 
  
 ARTICLE VIII 
  
 TERMINATION 
  
 8.01. TERMINATION. This Agreement may be terminated and the Transactions may be abandoned at any time prior to the Closing: 
  
 (a) by mutual written consent duly authorized by the Boards of Directors of
the Company, Newco and Acquiror; 
  

 I-46 

 (b) by either the Company or Acquiror (i) if, at the stockholders’ meetings referred to in
Section 6.13 (including any postponement or adjournment thereof), the Merger and the other Transactions that require stockholder approval shall fail to be approved and adopted by the affirmative vote specified herein, or (ii) so long as the
terminating party is not then in breach of any of its obligations hereunder, after May 1, 1999 or such other date as the parties shall have mutually agreed (the “Termination Date”) if the Merger shall not have been consummated on or before
such date; 
  
 (c) by the Company, provided neither it nor Newco
is then in breach of any of its material obligations hereunder, if either (i) Acquiror fails to perform, in any material respect, any covenant in this Agreement when performance thereof is due and does not cure the failure within twenty (20)
Business Days after written notice by the Company thereof, or (ii) any other condition in Sections 7.02 or 7.03 has not been satisfied and is not capable of being satisfied prior to the Termination Date; 
  
 (d) by the Company, whether or not the conditions set forth in Section
7.02 have been satisfied, if the Board of Directors of the Company determines, with the advice of outside counsel, in the exercise of its fiduciary duties to approve or recommend a Superior Proposal or to authorize the Company to enter into an
agreement with respect to a Superior Proposal; 
  
 (e) by
Acquiror, provided it is not then in breach of any of its material obligations hereunder, if either (i) the Company or Newco fails to perform, in any material respect, any covenant in this Agreement when performance thereof is due and does not cure
the failure within twenty (20) Business Days after written notice by Acquiror thereof or (ii) any other condition in Section 7.02 or Section 7.04 has not been satisfied and is not capable of being satisfied prior to the Termination Date;

  
 (f) [INTENTIONALLY OMITTED]; 
  
 (g) by either the Company or Acquiror if either has received any
communication from an HSR Authority (such communication to be confirmed in writing by such HSR Authority to the other party) indicating that an HSR Authority has authorized the institution of litigation challenging any of the Transactions under the
U.S. antitrust laws, which litigation will include a motion seeking an order or injunction prohibiting the consummation of any of the Transactions; or 
  
 (h) by Acquiror if the Board of Directors of the Company shall have withdrawn or modified in any manner materially adverse to Acquiror its approval or
recommendation of this Agreement or the Transactions or shall have approved or recommended a Superior Proposal. 
  
 8.02. EFFECT OF TERMINATION. Except as set forth in the following sentence, in the event of the termination of this Agreement and abandonment of the
Transactions by any of the parties pursuant to Section 8.01 hereof, prompt written notice thereof shall be given to the other party and this Agreement, except for the provisions of Section 6.06(f)-(j), Section 8.03, Section 9.08 and
Section 9.12 and the provisions of the Confidentiality Agreement, shall forthwith become null and void and have no effect, without any liability or further obligation on the part of any party or its directors, officers or stockholders. Nothing
in this Section 8.02 shall relieve any party to this Agreement of liability for breach of this Agreement. If this Agreement is terminated as provided herein, all filings, applications and other submissions relating to the Merger shall, to the
extent practicable, be withdrawn from the agency or Person to which made. 
  
 8.03. FEES AND EXPENSES. 
  
 (a)
In order to induce Acquiror to, among other things, enter into this Agreement, the Company agrees as follows: If (1) subsection (c) below does not apply and (2) this Agreement is terminated (A) by the Company pursuant to Sections 8.01(d), (B)
by either the Company or Acquiror pursuant to Section 8.01(b)(i) hereof in the event that the Merger, this Agreement and the other Transactions are not approved at the stockholders’ meeting of the Company referred to in Section
6.13, or (C) by Acquiror pursuant to Section 8.01(h), then the Company shall pay to Acquiror a fee equal to $50,000,000. 
  
 (b) In order to induce the Company and Newco to, among other things, enter into this Agreement, Acquiror agrees as follows: If this Agreement is
terminated by the Company or Acquiror pursuant to 

  

 I-47 

 
Section 8.01(b)(i) hereof, in the event that the Merger, this Agreement and the other Transactions, if any, that require stockholder approval are not
approved at the stockholders’ meeting of Acquiror referred to in Section 6.13, then Acquiror shall promptly pay to the Company a fee equal to $50,000,000. 
  
 (c) In order to induce the Company and Newco to, among other things, enter into this Agreement, Acquiror agrees promptly to
pay to the Company a fee equal to $50,000,000 in the event that the Company is unable to obtain the New Company Debt at the time of any of the following: (i) this Agreement is terminated pursuant to Section 8.01(a); (ii) this Agreement is
terminated pursuant to Section 8.01(b)(ii); or (iii) this Agreement is terminated pursuant to Section 8.01(c)(i), in each case for any reason other than (x) the Company’s failure to use commercially reasonable efforts to obtain
the New Company Debt or (y) a breach of this Agreement by the Company. 
  
 (d) Except in circumstances where the second sentence of Section 8.02 is applicable or as otherwise expressly provided herein each of the parties shall pay all costs and expenses incurred or to be incurred by it in negotiating and
preparing this Agreement and in carrying out and closing the Transactions (including any title insurance policies, surveys and environmental reports on the Real Property). 
  
 (e) Any amounts payable pursuant to Section 8.03 shall be made in immediately available funds no later than two (2)
Business Days after termination of this Agreement. 
  
 ARTICLE
IX 
  
 MISCELLANEOUS 
  
 9.01. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties contained herein shall not survive beyond the Closing Date. This Section 9.01 shall not limit any covenant or agreement of the parties hereto which by its terms requires performance after the Closing Date. 
  
 9.02. ENTIRE AGREEMENT. This Agreement, including the Exhibits and Schedules
hereto and the documents delivered pursuant to this Agreement, together with the Confidentiality Agreement, constitute the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior written and oral and all
contemporaneous oral agreements and understandings with respect to the subject matter hereof. The Exhibits and Schedules hereto are an integral part of this Agreement and are incorporated by reference herein. 
  
 9.03. NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person, by telecopy (with confirmation of transmission), by express or overnight mail delivered by a nationally recognized air courier (delivery charges prepaid), or by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties as follows: 
  
 If to Acquiror or to the Company (after the Merger): 
  
 Hearst-Argyle Television, Inc. 
 888 Seventh
Avenue 
 New York, New York 10019 
 Attention: Dean H. Blythe 
 Telecopy: (212) 887-6855 
  
 with a copy to: 
  
 Rogers & Wells LLP 
 200 Park Avenue

 New York, New York 10166 
 Attention: Steven A. Hobbs, Esq. 
 Telecopy: (212) 878-8375 
  

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 If to the Company (before the Merger) or Newco: 
  
 Pulitzer Publishing Company 
 900 North Tucker Boulevard 
 St. Louis,
Missouri 63101 
 Attention: Michael E. Pulitzer 
 Telecopy: (314) 340-3125 
  
 with
a copy to: 
  
 Fulbright & Jaworski L.L.P. 
 666 Fifth Avenue 
 New York, New York 10103

 Attention: Richard A. Palmer, Esq. 
 Telecopy: (212) 752-5958 
  
 or to such other address as the party to
whom notice is given may have previously furnished to the others in writing in the manner set forth above. Any notice or communication delivered in person shall be deemed effective on delivery. Any notice or communication sent by telecopy or by air
courier shall be deemed effective on the first business day at the place at which such notice or communication is received following the day on which such notice or communication was sent. Any notice or communication sent by registered or certified
mail shall be deemed effective on the fifth business day at the place from which such notice or communication was mailed following the day on which such notice or communication was mailed. 
  
 9.04. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, regardless of the laws that might otherwise govern under principles of conflicts of laws applicable thereto. 
  

9.05. KNOWLEDGE OF THE COMPANY. The phrase “to the knowledge of the Company” and phrases of similar import shall mean the actual knowledge of
Michael E. Pulitzer, Ken J. Elkins, Ronald H. Ridgway, Nicholas G. Penniman IV, C. Wayne Godsey and John Kueneke. 
  
 9.06. PARTIES IN INTEREST. This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this Agreement,
express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement, except for Sections 6.06(f)-(j), 6.25, 6.28 and 9.08 (which are intended to be for the
benefit of the Persons provided for therein and may be enforced by such Persons). 
  
 9.07. COUNTERPARTS. This Agreement (and any amendment hereof) may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument. This Agreement (and any amendment hereof) shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories. 
  
 9.08. PERSONAL LIABILITY.
This Agreement shall not create or be deemed to create or permit any personal liability or obligation on the part of any direct or indirect stockholder of any party hereto or any officer, director, employee, agent, representative or investor of any
party hereto. 
  
 9.09. BINDING EFFECT; ASSIGNMENT. This Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective legal representatives and successors. This Agreement may not be assigned by any party hereto and any purported assignment in violation hereof shall be null and
void. 
  

 I-49 

 9.10. AMENDMENT. This Agreement may not be amended except by an instrument in writing signed on behalf of
all the parties. Any amendment to this Agreement after the meetings of the stockholders of the Company and the Acquiror referred to in Section 6.13 may, subject to applicable law, be made without seeking the approval of such stockholders.

  
 9.11. EXTENSION; WAIVER. All parties hereto affected thereby
may (i) extend the time for the performance of any of the obligations or other acts of any other party hereto, (ii) waive any inaccuracies in the representations and warranties of any other party contained herein or in any document, certificate or
writing delivered pursuant hereto by any other party, or (iii) waive compliance with any of the covenants, agreements or conditions contained herein or any breach thereof. Any agreement on the part of any party to any such extension or waiver shall
be valid only if set forth in an instrument in writing signed on behalf of such party. 
  
 9.12. LEGAL FEES; COSTS. If any party hereto institutes any action or proceeding to enforce any provision of this Agreement, the prevailing party therein shall be entitled to receive from the losing party reasonable
attorneys’ fees and costs incurred in such action or proceeding whether or not such action or proceeding, is prosecuted to final judgment. 
  
 9.13. DRAFTING. Each party acknowledges that its legal counsel participated in the preparation of this Agreement and, therefore, stipulates that the rule
of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Agreement to favor any party against the other. 
  
 9.14. CONSENT TO JURISDICTION AND SERVICE OF PROCESS. The parties hereto irrevocably: (a) agree that any suit, action or
other legal proceeding arising out of this Agreement may be brought in the courts of the State of New York or the courts of the United States located in New York County, New York, (b) consent to the jurisdiction of each court in any such suit,
action or proceeding, (c) waive any objection which they, or any of them, may have to the laying of venue of any such suit, action or proceeding in any of such courts, and (d) waives the right to a trial by jury in any such suit, action or other
legal proceeding. Each of the Company and Newco hereby designates and appoints Fulbright & Jaworski L.L.P., 666 Fifth Avenue, New York, New York 10103 (the “Authorized Agent”), as its agent to accept and acknowledge on its behalf,
service of any and all process which may be served in any such suit, action or other proceeding, and agrees that service upon such Authorized Agent shall be deemed in every respect service of process on the Company or Newco (as the case may be) or
with respect to Newco its successors or assigns and, to the extent permitted by applicable law, shall be taken and held to be valid personal service, except that such appointment shall end at the Effective Time in the case of the Company. Each of
the Company and Newco represent and warrant that the Authorized Agent has agreed to act as such agent for service of process. 
  
 ARTICLE X 
  
 DEFINITIONS 
  
 10.01. DEFINITIONS. When used in this Agreement, the following terms shall have the meanings indicated. 
  
 “Acquiror” has the meaning set forth in the first paragraph of this Agreement. 
  
 “Acquiror’s Actuary” has the meaning set
forth in Section 6.11(d). 
  
 “Acquiror Common Stock” means the Series A Common Stock, par value $.01 per share, of Acquiror. 
  
 “Acquiror’s Financial Statements” has the meaning set forth in Section 5.07. 
  
 “Acquiror’s 10-K” has the meaning set forth
in Section 5.07. 
  

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 “Acquiror’s 10-Q” has the meaning set forth in Section 5.07.

  
 “Acquiror’s SEC Reports” has
the meaning set forth in Section 5.06. 
  
 “Acquiror Schedule” has the meaning set forth in Section 6.22(b). 
  
 “Acquiror Voting Agreement” means the voting agreement, dated the date hereof, between Acquiror, the Company and Hearst
Corporation. 
  
 “Acquisition Proposal”
has the meaning set forth in Section 6.01(a). 
  
 “Affiliate” of any Person means any other Person, directly or indirectly, through one or more intermediary Persons, controlling, controlled by or under common control with such Person. 
  
 “After Tax Basis” has the meaning set forth in
Section 6.09(h)(i). 
  
 “Aggregate
Consideration” has the meaning set forth in Section 1.02(d). 
  
 “Aggregate Shares Delivered” has the meaning set forth in Section 1.02(d). 
  
 “Agreed Rate” means the annual rate of interest quoted, from time to time, by Citibank, N.A. in New York City as its prime rate
of interest for the purpose of determining the interest rates charged by it for United States dollar commercial loans made in the United States. 
  
 “Agreement” or “this Agreement” shall mean, and the words “herein”, “hereof” and
“hereunder” and words of similar import shall refer to, this instrument as it from time to time may be amended, including the exhibits and schedules hereto. 
  
 “Audit or “audited” when used in regard to financial statements shall mean an examination of
the financial statements by a firm of independent public accountants in accordance with generally accepted auditing standards for the purpose of expressing an opinion thereon. 
  
 “Authorized Agent” has the meaning set forth in Section 9.14. 
  
 “Broadcasting” means, collectively, PBC and the
Broadcasting Subsidiaries. 
  
 “Broadcasting
Assets” has the meaning set forth in Section 2.02(a). 
  
 “Broadcasting Employee” means any employee or former employee of Broadcasting. 
  
 “Broadcasting Employee Plan” has the meaning set forth in Section 4.10(a). 
  
 “Broadcasting Pension Plan” has the meaning set
forth in Section 4.10(b). 
  
 “Broadcasting Subsidiaries” has the meaning set forth in Section 2.02(a). 
  
 “Broadcasting Tax Returns” has the meaning set forth in Section 6.09(h)(ii). 
  
 “Broadcasting Unaudited Financial Statements” has
the meaning set forth in Section 4.03. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banking institutions in New York City are authorized or required by law, regulation or executive order to be closed. 
  
 “Certificate of Merger” has the meaning set forth
in Section 1.03. 
  
 “Certificates” has the meaning set forth in Section 1.04(b). 
  

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 “Closing” and “Closing Date” have the meanings set forth in
Section 7.01. 
  
 “Closing
Agreement” has the meaning set forth in Section 3.11(d). 
  
 “Code” means Internal Revenue Code of 1986, as amended. 
  
 “Common Stock Conversion Number” has the meaning set forth in Section 1.02(d). 
  
 “Communications Act” has the meaning set forth in
Section 5.01. 
  
 “Company” has
the meaning set forth in the first paragraph of this Agreement. 
  
 “Company Charter Amendment” has the meaning set forth in Section 2.01(a). 
  
 “Company Class B Common Stock” means the Company’s Class B Common Stock, par value $.01 per share. 
  
 “Company Common Stock” means the Company’s
Common Stock, par value $.01 per share. 
  
 “Company Consolidated Income Taxes” has the meaning set forth in Section 6.09(h)(iv). 
  
 “Company Consolidated Income Tax Returns” has the meaning set forth in Section 6.09(h)(iii). 
  
 “Company Employee Plan” means any Employee Plan
that is or was sponsored or contributed to by the Company, Newco or any of their ERISA Affiliates covering the employees or former employees (or their beneficiaries or dependents) of the Company, Newco or any of their ERISA Affiliates. 

 
 “Company Financial Statements” has the meaning
set forth in Section 3.07. 
  
 “Company Group” has the meaning set forth in Section 6.09(h)(v). 
  
 “Company Option Plans” has the meaning set forth in Section 6.12. 
  
 “Company Preferred Stock” has the meaning set
forth in Section 3.05(a). 
  
 “Company’s SEC Reports” has the meaning set forth in Section 3.06. 
  
 “Company Stock” means, collectively, the Company Common Stock and the Company Class B Common Stock. 
  
 “Company 10-K” has the meaning set forth in
Section 3.07. 
  
 “Company 10-Q”
has the meaning set forth in Section 3.07. 
  
 “Confidentiality Agreement” has the meaning set forth in Section 6.05. 
  
 “Contract” means any contract, agreement or understanding. 
  

 I-52 

 “Contribution” has the meaning set forth in Section 2.02(a). 

 
 “Contribution Agreement” has the meaning set
forth in Section 2.01(b). 
  
 The term
“control”, with respect to any Person, shall mean the power to direct the management and policies of such Person, directly or indirectly, by or through stock ownership, agency or otherwise, or pursuant to or in connection with an
agreement, arrangement or understanding (written or oral) with one or more other Persons by or through stock ownership, agency or otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the
foregoing. 
  
 “Deal Expenses” means
the sum of (i) all fees and expenses due Goldman Sachs and Huntleigh relating to the Merger and the Transactions; (ii) all out-of-pocket costs and expenses incurred by the Company or any of its Subsidiaries with respect to this Agreement, the Merger
and the Transactions, including commitment fees payable to the providers of New Company Debt and all fees and expenses due legal counsel, accountants, compensation advisors and other advisors for the Company or any of its Subsidiaries relating to
this Agreement, the Merger and the Transactions to the extent not paid or provided for on the Closing Date; (iii) all payments due at Closing (x) in connection with the Transactions or (y) for the benefit of employees of the Company, PBC or the
Broadcasting Subsidiaries pursuant to the agreements listed on Schedule 6.11(f)(2) or 6.11(g); and (iv) all amounts payable to cancel all outstanding options under the Company Option Plans immediately before the Closing. 
  
 “DGCL” has the meaning set forth in Section
l.02(e). 
  
 “Dissenting Shares”
has the meaning set forth in Section 1.02(e). 
  
 “Dissenting Stockholder” has the meaning set forth in Section l.02(e). 
  
 “Distribution” has the meaning set forth in Section 2.02(c). 
  
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended. 
  
 “ERISA
Affiliate” means a Person and/or such Person’s Subsidiary or any trade or business (whether or not incorporated) which is under common control with such entity or such entity’s Subsidiaries or which is treated as a single employer
with such Person or any Subsidiary of such Person under Section 4l4(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA. 
  
 “Effective Time” has the meaning set forth in Section 1.03. 
  
 “Employee Plan” has the meaning set forth in
Section 4.10(a). 
  
 “Employee Stock
Purchase Plan” means the Pulitzer Publishing Company 1997 Employee Stock Purchase Plan. 
  
 “Enforceability Exceptions” has the meaning set forth in Section 3.01. 
  
 “Environmental Law” or “Environmental
Laws” means all laws, rules, regulations, statutes, ordinances, decrees or orders of any governmental entity relating to (i) the control of any potential pollutant or protection of the air, water or land, (ii) solid, gaseous or liquid waste
generation, handling, treatment, storage, disposal or transportation, and (iii) exposure to hazardous, toxic or other substances alleged to be harmful, and includes, (A) the terms and conditions of any License from any governmental entity, and (B)
judicial, administrative, or other regulatory decrees, judgments, and orders of any governmental entity. The term “Environmental Laws” shall include, but not be limited to, the following statutes and the regulations, promulgated
thereunder: the Clean Air: 

  

 I-53 

 
Act, 42 U.S.C. § 7401 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Resource Conservation and Recovery Act, 42 U.S.C.
§ 6901 et seq., the Superfund Amendments and Reauthorization Act, 42 U.S.C. § 11011 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Water Pollution Control Act, 33 U.S.C. § 1251 et
seq., the Safe Drinking Water Act, 42 U.S.C.§ 300f et seq., the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., and any state, county, or local regulations similar thereto.

  
 “Environmental Liabilities” shall
mean any and all liabilities, responsibilities, claims, suits, losses, costs (including remediation, removal, response, abatement, clean-up, investigative, and/or monitoring costs and any other related costs and expenses), other causes of action
recognized now or at any later time, damages, settlements, expenses, charges, assessments, Liens, penalties, fines, pre-judgment and post-judgment interest, attorney fees and other legal fees (i) pursuant to any agreement, order, notice,
requirement, responsibility, or directive (including directives embodied in Environmental Laws), injunction, judgment or similar documents (including settlements) arising out of or in connection with any Environmental Laws, or (ii) pursuant to any
claim by a governmental entity or other Person for personal injury, property damage, damage to natural resources, remediation, or similar costs or expenses incurred or asserted by such governmental entity or Person pursuant to common law or statute.

  
 “Estimated Working Capital Amount”
has the meaning set forth in Section 6.22(a). 
  
 “Exchange Act” has the meaning set forth in Section 3.03. 
  
 “Exchange Agent” has the meaning set forth in Section 1.04(a). 
  
 “Existing Company Debt” means the sum as of the
Closing Date of (i) aggregate principal amount of debt under the Company’s agreements with Prudential referred to in Schedule 3.02, together with all accrued and unpaid interest thereon, outstanding as of Closing Date, (ii) the principal
amount of debt under the Company’s agreements with the First National Bank of Chicago referred to in Schedule 3.02, together with all accrued and unpaid interest thereon, outstanding as of the Closing Date, and (iii) any other
Indebtedness (other than the New Company Debt) of the Company and its Subsidiaries, together with all accrued and unpaid interest thereon outstanding. Existing Company Debt shall include any prepayment penalty or premium required to prepay the
Existing Company Debt at Closing. 
  
 “FCC” has the meaning set forth in Section 3.03. 
  
 “FCC Application” means any application filed with the FCC necessary to transfer ownership of Broadcasting’s FCC Licenses to Acquiror. 
  
 “Final Order” has the meaning set forth in Section 6.14(e). 
  
 “Final Working Capital Amount” has the meaning set
forth in Section 6.22(e). 
  
 “FCC” has the meaning set forth in Section 3.03. 
  
 “FCC Approval” has the meaning set forth in Section 7.02(d). 
  
 “Form 8-K” has the meaning set forth in Section 6.21(a). 
  
 “Further Media Interest” has the meaning set forth in Section 6.14(d). 
  
 “GAAP” shall mean generally accepted accounting
principles in effect on the date hereof as set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or as may be generally accepted by the accounting profession of the United States. 
  

 I-54 

 “Goldman Sachs” means Goldman, Sachs & Co. 
  
 “Government Antitrust Entity” has the meaning set
forth in Section 6.14(b). 
  
 “Government Communications Entity” has the meaning set forth in Section 6.14(b). 
  
 “Government Regulatory Entity” has the meaning set forth in Section 6.14(b). 
  
 “Governmental Authority” has the meaning set forth
in Section 6.14(a). 
  
 “Gross-Up
Agreements” means (i) the Agreement, dated as of May 12, 1986, by and among The Pulitzer Publishing Company, a Missouri corporation, and each of the owners of shares of capital stock of The Pulitzer Publishing Company who was a signatory to
such Agreement, (ii) the Agreement, dated as of May 12, 1986, by and among The Pulitzer Publishing Company and each of the owners of shares of capital stock of The Pulitzer Publishing Company who was a signatory to such Agreement, (iii) the
Agreement, dated as of September 29, 1986, by and among The Pulitzer Publishing Company and each of the parties thereto; and (iv) the Agreement, dated as of September 29, 1986, by and among The Pulitzer Publishing Company and each of the owners of
shares of capital stock of The Pulitzer Publishing Company who was a signatory to such Agreement. 
  
 “Gross-Up Amount” means the amount, if any, due by the Company to any Person with respect to the consummation of the
Transactions pursuant to the Gross-Up Agreements. 
  
 “HSR Act” has the meaning set forth in Section 3.03. 
  
 “HSR Authority” means either the Department of Justice or the Federal Trade Commission. 
  
 “Huntleigh” means Huntleigh Securities
Corporation. 
  
 “IRS” means the
Internal Revenue Service. 
  
 “Indebtedness” of any Person means all obligations of such Person (i) for borrowed money, (ii) evidenced by notes, bonds, debentures or similar instruments, (iii) for the deferred purchase price of goods or services (other than
trade payables or accruals incurred in the ordinary course of business), (iv) under capital leases and (v) in the nature of guarantees of the obligations described in clauses (i) through (iv) above of any other Person. 
  
 “Indemnified Party” has the meaning set forth in
Section 6.06(h). 
  
 “Indemnifying
Party” has the meaning set forth in Section 6.06(h). 
  
 “Indemnitee” has the meaning set forth in Section 6.09(e). 
  
 “Indemnitor” has the meaning set forth in Section 6.09(e). 
  
 “Joint Proxy Statement/Prospectus” has the meaning set forth in Section 6.06(a).

  
 “Laws” means all applicable
statutes, laws, ordinances, rules and regulations (including any of the foregoing related to occupational safety, storage, disposal, discharge into the environment of hazardous wastes, environmental protection, conservation, unfair competition,
labor practices or corrupt practices). 
  
 “Licenses” means approvals, authorizations, consents, rights, certificates, orders, franchises, determinations, permissions, permits, qualifications, registrations, licenses, authorities or grants issued, declared, designated or
adopted by any nation or government, any federal, state, municipal or other political subdivision thereof or any department, commission, board, bureau, agency or instrumentality exercising executive, legislative, judicial, regulatory or
administrative functions pertaining to government. 
  

 I-55 

 “Liens” means any lien, claim, charge, restriction, pledge, mortgage, security
interest or other encumbrance of any nature whatsoever. 
  
 “Losses” means all losses, claims, damages, liabilities or actions, including any legal or other expenses reasonably incurred in connection with investigating or defending any such loss, claim, damage or
liability or action or enforcing any indemnity with respect thereto. 
  
 “Material Adverse Effect” means a material adverse effect on the business, condition (financial or otherwise) or assets of the named entity or the named entities taken as a whole, other than changes or
effects resulting from (i) changes attributable to conditions affecting the newspaper, radio and/or television businesses generally, (ii) changes in general economic conditions, (ii) cyclical changes that are consistent with the past operating
history of the named entity or entities, or (iv) changes attributable to the announcement or pendency of the Merger and the other Transactions. When the term “Material Adverse Effect” or material is used with respect to more than one act,
occurrence, item or circumstance, all such acts, occurrences, items and circumstances shall be considered individually and in the aggregate. 
  
 “Merger” has the meaning set forth in Section 1.01. 
  
 “Merger Stock” has the meaning set forth in Section 1.04(a). 
  
 “Multiemployer Plan” means a multiemployer plan,
as defined in Sections 3(37) and 4001(a)(3) of ERISA. 
  
 “NASDAQ” means the Nasdaq National Market. 
  
 “NLRB” means the National Labor Relations Board. 
  
 “NYSE” means the New York Stock Exchange, Inc. 
  
 “New Company Debt” has the meaning set forth in Section 2.01(b). 
  
 “Newco” has the meaning set forth in the first
paragraph of this Agreement. 
  
 “Newco’s Actuary” has the meaning set forth in Section 6.11(d). 
  
 “Newco Charter Amendment” has the meaning set forth in Section 2.01(a). 
  
 “Newco Class B Common Stock” means the Class B
Common Stock, $0.01 par value per share, of Newco. 
  
 “Newco Common Shares” has the meaning set forth in Section 3.05(b). 
  
 “Newco Common Stock “ means the Common Stock, $0.01 par value per share, of Newco. 
  
 “Newco Preferred Stock” has the meaning set forth
in Section 3.05(b). 
  
 “Newspaper
Subsidiaries” means the Post-Dispatch division of the Company and all direct and indirect Subsidiaries of the Company, other than Broadcasting, prior to the Contribution. 
  
 “Other Filings” has the meaning set forth in Section 6.06(b). 
  
 “Outstanding Company Stock” has the meaning set
forth in Section 1.02(d). 
  

 I-56 

 “PBC” has the meaning set forth in Section 2.02(a). 
  
 “Permitted Exceptions” has the meaning set forth
Section 4.08(b). 
  
 “Person”
means any individual, general partnership, limited partnership, corporation, limited liability company, joint venture, trust, business trust, cooperative or association, and the heirs, executors, administrators, legal representatives, successors,
and assigns of such Person where the context so requires. 
  
 “Post-Closing Tax Period” has the meaning set forth in Section 6.09(h)(vii). 
  
 “Pre-Closing Tax Period” has the meaning set forth in Section 6.09(h)(vi). 
  
 “Preliminary Joint Proxy Statement/Prospectus” has
the meaning set forth in Section 6.06(a). 
  
 “Prudential” means The Prudential Insurance Company of America. 
  
 “Pulitzer Pension Plan” has the meaning set forth in Section 6.11(d). 
  
 “Pulitzer Savings Plan” has the meaning set forth
in Section 6.11(c). 
  
 “Pulitzer Voting Agreement” means the amended and restated voting agreement, dated as of the date hereof, between the Company and certain holders of Company Stock. 
  
 “Real Property” means all realty owned or leased and used primarily in the business and operations
of PBC and the Broadcasting Subsidiaries, including all appurtenances, improvements and fixtures located on such realty, but excluding personal property. 
  
 “Record Date” has the meaning set forth in Section 2.02(c). 
  
 “Retained Assets” has the meaning set forth in the
Contribution Agreement. 
  
 “Retained
Business” means the assets and liabilities of the Company and its Subsidiaries after giving effect to the Contribution and the Distribution. 
  
 “Retained Liabilities” has the meaning set forth in the Contribution Agreement. 
  
 “Rules and Regulations” has the meaning set forth
in Section 5.01. 
  
 “SEC” has
the meaning set forth in Section 3.06. 
  
 “SEC Filings” has the meaning set forth in Section 6.06(c). 
  
 “Securities Act” has the meaning set forth in Section 3.03. 
  
 “Spin-Off Tax” has the meaning set forth in
Section 6.09(h)(viii). 
  
 “Station
Network Affiliation Agreements” has the meaning set forth in Section 4.07. 
  
 “Stations” means, collectively, KETV-TV, KOAT-TV, KOCT-TV, KOVT-TV, KCCI-TV, WLKY-TV, WGAL-TV, WDSU-TV, WYFF-TV, WXII-TV,
WESH-TV, KTAR(AM), KMVP(AM), KKLT(FM), WLKY(AM), and WXII(AM). 
  
 “Subsidiary” as to any Person means (i) any corporation of which such Person owns, either directly or through its Subsidiaries, more than 50% of the total combined voting power of all classes of voting
securities of 

  

 I-57 

 
such corporation or (ii) any partnership, association, joint venture or other form of business organization, whether or not it constitutes a legal entity, in
which such Person directly or indirectly through its Subsidiaries owns more than 50% of the total equity interests. 
  
 “Superior Proposal” means an Acquisition Proposal that the Board of Directors of the Company determines in the good faith
exercise of its business judgment (after consultation with the Company’s independent financial advisors) to be more favorable to the Company’s stockholders than the Merger. 
  
 “Surviving Corporation” has the meaning set forth in Section 1.01. 
  
 “Tax” has the meaning set forth in Section
6.09(h)(x). 
  
 “Tax Return” has
the meaning set forth in Section 6.09(h)(xi). 
  
 “Tax Ruling Request” has the meaning set forth in Section 3.11(d). 
  
 “Temporary Waiver” has the meaning set forth in Section 6.14(d). 
  
 “Termination Date” has the meaning set forth in
Section 8.0l(b). 
  
 “Transaction
Agreement” has the meaning set forth in Section 3.01. 
  
 “Transactions” means (i) the Contribution, (ii) the Distribution, (iii) the Company Charter Amendment, (iv) the Newco Charter Amendment, (v) the borrowing by the Company of the New Company Debt, (vi) and any
other transactions contemplated by this Agreement (including the Merger) and the Transaction Agreements. 
  
 “Transfer Agent” means First Chicago Trust Company of New York. 
  
 “Transferee DB Plan” has the meaning set forth in Section 6.11(d). 
  
 “Transferee DC Plan” has the meaning set forth in
Section 6.11(c). 
  
 “Transferred
Employees” has the meaning set forth in Section 6.11(b). 
  
 “Working Capital Amount” means the difference between (x) the total current assets of the Company and its Subsidiaries and (y) the total current liabilities (other than the New Company Debt, the Existing
Company Debt and Deal Expenses) of the Company and its Subsidiaries (in each case calculated in accordance with GAAP immediately prior to the Effective Time and after giving effect to the Contribution, the Distribution and the disposition of cash
and cash equivalents contemplated by Section 6.24). 
  
 10.02. INTERPRETATION. Unless the context otherwise requires, the terms defined in Section 10.01 shall have the meanings herein specified for all purposes of this Agreement, applicable to both the singular and plural forms of any of the
terms defined herein. All accounting terms defined in this Section 10.01, and those accounting terms used in this Agreement not defined in Section 10.01, except as otherwise expressly provided herein, shall have the meanings customarily given
thereto in accordance with GAAP. Except as otherwise expressly provided herein, all terms used in conjunction with description of securities have the meanings given to those terms under the Exchange Act. When a reference is made in this Agreement to
Sections, such reference 

  

 I-58 

 
shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation”. The use of the neuter gender herein shall be deemed to include the masculine and feminine genders wherever necessary or appropriate, the use of the masculine gender shall be deemed to include the neuter and feminine genders and the
use of the feminine gender shall be deemed to include the neuter and masculine genders wherever necessary or appropriate. 
  
 [The remainder of this page intentionally left blank] 
  

 I-59 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its
officers thereunto duly authorized as of the day and year first above written. 
  

			
	 PULITZER PUBLISHING COMPANY

		
	By:	 	/s/    MICHAEL E.
PULITZER        
	 Name:
	 	Michael E. Pulitzer
	 Title:
	 	Chairman of the Board, President and
	 	 	Chief Executive Officer

  

			
	 PULITZER INC.

		
	By:	 	/s/    MICHAEL E.
PULITZER        
	 Name:
	 	Michael E. Pulitzer
	 Title:
	 	Chairman of the Board

  

			
	 HEARST-ARGYLE TELEVISION, INC.

		
	By:	 	/s/    DEAN H. BLYTHE        
	 Name:
	 	Dean H. Blythe
	 Title:
	 	Senior Vice President, Secretary and
	 	 	General Counsel

  

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