Document:

exv10w15

 

			
	 	 	 
	Exhibit 10.15
	 	EXECUTION VERSION

AMENDMENT AND RESTATEMENT OF AGREEMENT

     This document entered into as of the 1st day of July 2006 constitutes an amendment
of the Agreement dated August 12, 1952 between Salt Lake Tribune Publishing Company, a West
Virginia corporation, and Deseret News Publishing Company, a Utah corporation, as amended by a
certain Amendment Agreement dated June 1, 1982 entered into between Kearns-Tribune Corporation, a
Utah corporation (successor to Salt Lake Tribune Publishing Company) and Deseret News Publishing
Company, a Utah corporation, and made effective January 1, 1983 and as further amended and restated
by an Amendment and Restatement of Agreement dated as of January 1, 2001 (the “2001 JOA”). This
document also constitutes a restatement of the 2001 JOA, as herein amended, and is intended by the
parties to define their current agreement, into which all prior agreements, amendments,
understandings and interpretations related hereto are hereby merged and herein subsumed.

Parties

     The parties to this Amendment and Restatement of Agreement (herein “Agreement”) are:

     A. Kearns-Tribune, LLC., a Delaware limited liability company (herein “K-T, LLC”), the
successor by mergers and otherwise to Kearns-Tribune Corporation, thereby succeeding to ownership
of The Salt Lake Tribune, a daily newspaper. All of the member interests in K-T, LLC are owned by
MediaNews Group, Inc., a Delaware corporation (herein “MNG”); and

     B. Deseret News Publishing Company, a Utah corporation (herein “DNPC”), which owns and
publishes the Deseret Morning News, a daily newspaper.

 

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Recitals

     The parties hereto and their predecessors have since 1952, and continuing until their
execution of this July 1, 2006 Amendment and Restatement of this Agreement, been engaged in a joint
newspaper operating arrangement for the purpose of providing, for the benefit of both parties and
of the public they serve, an economical, efficient and practical method of printing and
distributing daily newspapers, primarily in the State of Utah, through a common agency formerly
known as the Newspaper Agency Corporation, a Utah corporation created for that purpose, which has
recently been renamed as NAC, Inc. Each of the parties owns fifty (50) shares of the capital stock
of NAC, Inc., comprising all of the outstanding shares of that corporation.

     The parties have jointly caused to be formed the Newspaper Agency Company, LLC, a Utah limited
liability company (“NAC”), and have by this Amendment and Restatement of Agreement jointly engaged
the NAC hereinafter to carry out various responsibilities regarding their joint newspaper operating
arrangement, in lieu of having these responsibilities continue to be carried out by the Newspaper
Agency Corporation.

     Since the parties entered into the 1952 Agreement, the Congress of the United States declared
in the Newspaper Preservation Act of 1970, Publ. L. 910353, 84 Stat. 467, Title 15, Chapter 43,
U.S.C.A. (the “Newspaper Preservation Act”) that it is in the public interest to maintain
newspapers editorially and reportorially independent and competitive and to preserve the
publication of newspapers where a joint newspaper operating arrangement has been entered into under
circumstances of economic distress as experienced by the parties at the time the 1952 Agreement was
entered into.

     The parties believe that (a) the policy of the United States has confirmed the wisdom of the
parties in entering into the 1952 Agreement, under which the advantages of such joint

 

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newspaper operating arrangement and common agency have been enjoyed by the public and the
parties hereto, (b) the newspapers published by the respective parties have continued to maintain
their separate identities and the parties hereto have continued to retain direct and immediate
control of their respective editorial and news departments, (c) there has not been any merger,
combination or amalgamation of editorial or reportorial staffs, and (d) editorial policies have
been independently determined and expressed.

     Certain clarifications concerning interpretation of the 2001 JOA, and certain amendments
thereto, are mutually desired by the parties, and a full restatement of the agreements into one
document will facilitate their understanding and administration.

     The parties, believing it is desirable both from their standpoint and in the interest of the
public that such amendments, clarifications and restatement be made and the benefits thereof be
provided and continued, therefore desire to amend, renew and restate their agreements as set forth
herein.

     NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) in hand paid by each of the
parties to the other, and the promises, covenants and agreements hereinafter set forth, the
parties, based upon mutual trust and confidence in each other, agree to and hereby amend, renew and
restate the 2001 JOA, and further agree as follows:

 

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Preamble

     The parties hereto declare and reaffirm as the principal objective of this Agreement their
joint and several commitment to the survival and success of both the Deseret Morning News and The
Salt Lake Tribune as independent editorial voices, with the ultimate goal for each newspaper of
achieving optimal household penetration and maximizing the circulation of each newspaper, while
allowing both newspapers to reap the financial benefits and economies from the able management of a
joint operating system.

     To achieve these objectives, and for the purpose of serving the operational needs and
objectives of both newspapers, the parties originally created Newspaper Agency Corporation and have
now created the NAC as their joint agent under this Agreement.

     All provisions of this Agreement, separately and cumulatively, and notwithstanding any other
inference that may be drawn from its wording, shall be interpreted and applied in a manner
consistent with the objectives and purposes set forth in this Preamble.

     1. Effective Date — This Joint Operating Agreement was entered into initially on August 12,
1952, has been amended by an Amendment Agreement dated June 1, 1982, which had an effective date of
January 1, 1983 and has been further amended by an Amendment and Restatement of Agreement dated as
of January 1, 2001. All modifications thereof as set forth in this Agreement shall become
effective as of July 1, 2006.

     2. The NAC — DNPC and K-T, LLC have caused the NAC to be created pursuant to the laws of the
State of Utah for the purposes set forth in its Articles of Organization. The NAC shall perform
various functions which the Newspaper Agency Corporation has heretofore provided to both newspapers
under the 2001 JOA.

 

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     2.01 Ownership of the NAC — The membership interests of the NAC are owned 42% by DNPC and 58%
by K-T, LLC, its two members (the “Members”). The parties hereto shall cause the operations of the
NAC to continue and shall not assign, sell, transfer, mortgage, pledge or otherwise dispose of
their membership interests in the NAC, nor voluntarily permit alienation of any interest therein by
any means, including a sale or merger involving the owning entity, during the term of this
Agreement or any renewal or extension thereof, without written approval of the other party;
provided however, that such restriction shall not limit the right of the owning entity of either
party to pledge, and/or otherwise grant security interests in stock or equity interests of such
owning entity to secure any indebtedness now or hereafter incurred by either party nor shall such
restrictions in any manner affect the enforcement of such security interests. Such restriction
shall be printed on the face of any certificates evidencing the membership interests of the parties
in the NAC which may heretofore or hereafter be issued or reissued, and shall be strictly enforced.

     2.02 Management Committee — The Management Committee of the NAC shall govern the NAC and shall
exercise all of the usual and customary duties of managers. The Management Committee of the NAC
shall consist of four (4) persons who shall be elected at each annual meeting of the Members (an
annual meeting shall be held simultaneously with the execution of this Agreement, and, subsequent
thereto, shall be held on the second Monday of each December commencing in 2006, at the offices of
the NAC, unless the Management Committee shall determine otherwise) to serve until the next annual
meeting of the Members and until their successors are elected in their stead. Two (2) members of
the four-member Management Committee shall be the Chairman and the President of DNPC (unless one
person shall simultaneously hold both offices of DNPC, in which case the two DNPC Management

 

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Committee members shall be the Chairman of DNPC and such other senior officer of DNPC as the
Chairman of DNPC shall designate) and the other two (2) members shall be the Chairman and the
President of K-T, LLC (unless one person shall simultaneously hold both offices of K-T, LLC, in
which case the two K-T, LLC Management Committee members shall be the Chairman of K-T, LLC and such
other senior officer of K-T, LLC as the Chairman of K-T, LLC shall designate). The parties agree
to vote their membership interests in the NAC to elect the Management Committee members so
specified. The parties further agree that at the first annual meeting of Members following the
effective date of this Amendment and Restatement and at each annual Members meeting thereafter held
to elect Management Committee members, this same procedure for electing Management Committee
members shall be followed.

     If the four-member Management Committee shall become deadlocked with respect to any matter to
be acted upon by it, and if after negotiating reasonably and in good faith for a period of not more
than five (5) business days (or such longer period as the parties may mutually agree upon) the
parties are unable to resolve such deadlock, the President of the NAC shall be empowered to break
such deadlock, provided such deadlock does not relate to a Reserved Matter (as hereinafter
defined). If the President is called upon to break such a deadlock, he or she shall be bound to
apply all the provisions of this Agreement and shall specifically be bound by its Preamble. If
such deadlock relates to a Reserved Matter, such deadlock shall be resolved in the manner specified
in Section 26 hereof.

     For the purposes of this Agreement, Reserved Matters shall include the exercise of any
material right of either or both of the parties including but not limited to: (a) declaring or
otherwise causing a distribution to either party of any of the earnings or other assets of the NAC,
except as otherwise expressly provided in this Agreement; (b) approving or amending the NAC’s

 

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Annual Plan (as hereinafter defined); (c) changing the financial accounting or tax principles
utilized by the NAC, except as otherwise required by law or governmental authority; (d) committing
or causing the NAC to make aggregate capital expenditures in any fiscal year exceeding by $250,000
such amounts as are specified therefor in the capital budget section of the then applicable NAC
Annual Plan; (e) except in the ordinary course of the NAC’s business, committing or causing NAC to
enter into any contract or transaction requiring annual expenditures by the NAC exceeding by
$250,000 or more such amounts as are specified therefor in the operations budget section of the
then applicable NAC Annual Plan; (f) employing the services of, or entering into any transaction
with, either party, or any affiliate thereof, directly or indirectly, except upon standard
commercial terms; (g) lending or contributing to the capital of any other person any funds of the
NAC, except for trade accounts receivable and/or customary employee advances; (h) unless specified
or authorized in the then applicable NAC Annual Plan, encumbering any assets of the NAC, borrowing
any funds, or entering into any equipment leases or purchase money financings in excess of an
aggregate amount of $250,000 per fiscal year; (i) instituting any bankruptcy or insolvency
proceeding or assigning any assets of the NAC for the benefit of its creditors; (j) instituting,
settling, or compromising any lawsuit or claim on behalf of the NAC where the amount in controversy
exceeds $250,000; and (k) any matter requiring interpretation or construction of any provision of
this Agreement or the intended meaning or application thereof, or any matter having substantial
financial impact upon one or both parties hereto or upon their rights to participate in matters
relating to the governance of the NAC.

     The NAC Annual Plan shall consist of an (a) operating budget section and (b) a capital budget
section. The NAC’s Annual Plan shall be approved annually by the Management Committee concurrently
with each annual Members meeting, inclusive of the annual meeting to

 

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be held concurrently with the execution of this Agreement, or as soon thereafter as may be
practical. If a vacancy occurs in the Management Committee, the nomination for replacement shall
be made by the party hereto which nominated the person whose position is to be filled, following
the same procedure outlined above in this Section 2.2. If necessary, the parties agree that they
will immediately call a special meeting of the Members for the purpose of electing, in accordance
with the procedure herein set forth for the election of members of the Management Committee at
meetings of the Members, a Management Committee member to fill such vacancy or to remove or
re-elect any or all members of the Management Committee, as they may mutually choose.

     2.03 Chairman and Vice-Chairman of NAC Management Committee — The Management Committee shall
have a Chairman and a Vice-Chairman. The Chairman shall preside over and conduct meetings of the
Management Committee. If the Chairman is not present at a meeting of the Management Committee, or
is present and so directs, the Vice-Chairman shall preside over and conduct meetings of the
Management Committee. The Vice-Chairman shall automatically succeed to all duties of the Chairman
in the event of the Chairman’s unavailability or disability, until another Chairman is duly
appointed.

     William Dean Singleton, who has been appointed by K-T, LLC, is the Chairman, and he personally
shall be permitted to serve in such capacity so long as he desires and is ready, willing and able
so to serve. DNPC shall have the right to appoint the Chairman for the four (4) year period
commencing on the date on which William Dean Singleton no longer serves as Chairman. Thereafter,
K-T, LLC shall have the right to appoint the Chairman for the ensuing four (4) years, whereupon the
right to appoint the Chairman shall revert to DNPC and shall alternate with K-T,

 

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LLC for ensuing four year terms. During the time a Chairman serves, the right to appoint the
Vice-Chairman shall be exercised by the party hereto that did not appoint the Chairman.

     2.04 NAC Officers — The officers of the NAC shall consist of a President, a Vice-President, a
Secretary and a Treasurer. Upon the execution of this Agreement and in connection with each
subsequent annual meeting of the Members of the NAC, the President of the NAC shall be selected as
follows: K-T, LLC shall recommend to the Management Committee, for its approval or rejection, in
its absolute discretion, K-T, LLC’s preferred candidate for President of the NAC. If such
candidate is rejected by the Management Committee, K-T, LLC shall then recommend a second preferred
candidate for President, which the Management Committee may again approve or reject in its absolute
discretion. If either of the foregoing candidates proposed by K-T, LLC is approved by the
Management Committee, such candidate shall serve as President until the next annual meeting of
NAC’s Members, unless sooner removed as hereinafter provided. If both such candidates are rejected
by the Management Committee, K-T, LLC shall thereupon be solely empowered to designate the person
who shall then serve as President (which person shall be someone who the Management Committee has
not previously declined to approve as President), which person shall then serve as President until
the next annual meeting of the Members, or until sooner removed as hereinafter provided.

     Any person selected to serve as President of the NAC in accordance with the foregoing
procedures shall at any time during his or her term as President be subject to removal, with or
without cause, upon the affirmative vote of two or more members of the Management Committee. Upon
the removal of any person as President, K-T, LLC and the Management Committee shall promptly
commence to select a successor President, in accordance with the same selection procedures
hereinbefore set forth.

 

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     The President shall report directly to the Management Committee, and upon being selected as
President shall recommend to the Management Committee the persons to serve as Vice-President,
Secretary and Treasurer, whose appointments and the terms and conditions thereof shall be
determined by the Management Committee. No person appointed as an Officer of the NAC shall have
separate connections with or loyalties to the Deseret Morning News or The Salt Lake Tribune unless
otherwise mutually approved by DNPC and K-T, LLC, which approval may be withdrawn at anytime. The
President shall operate the NAC fairly with equal treatment for both newspapers. Except to the
extent otherwise herein provided, the powers and duties of the President, Vice-President, Secretary
and Treasurer shall be as agreed to by DNPC and K-T, LLC from time to time. As approved by the NAC
Management Committee, other persons may be given the working title of Vice President without such
persons becoming officers of the NAC.

     2.05 Duties of President and Other Officers — The President shall conduct the normal business
of the NAC pursuant to the terms of this Agreement as a stand-alone venture of the owners. Subject
to legal and contractual obligations, the President shall select qualified managers, executives and
personnel, and shall supervise the facilities and equipment used by the NAC, its operating systems
and procedures, with respect to advertising, circulation, production, finance and personnel, and
shall fulfill these duties in accordance with NAC’s applicable Annual Plan. The President and the
other officers of the NAC shall at all times act independently and disinterestedly as between DNPC
and K-T, LLC and in the best interest of the NAC, consistent with the Preamble to this Agreement.
All compensation to the President shall be determined by the Management Committee and paid
exclusively by the NAC. The President shall report

 

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directly to the Management Committee of the NAC and shall manage the business and affairs of
the NAC under the direction and authority of its Management Committee.

     2.06 NAC Executive Committee — The Executive Committee of the NAC shall be comprised of the
President of the NAC, one member of the Management Committee designated by K-T, LLC and one member
of the Management Committee designated by DNPC. The Executive Committee shall have the right,
under chairmanship of the President, to oversee the operations and performance of the NAC in
accordance with guidelines established by the Management Committee, to take emergency action as
required, and to propose to the Management Committee policies and other matters on which Management
Committee action is appropriately required. The Executive Committee shall meet weekly or as often
as necessary, in person or by telephone, unless otherwise directed by the NAC Management Committee.
If one or more members of the Executive Committee shall be unable to attend an Executive Committee
meeting, he or she may designate someone, upon notice to the other members, to attend in his or her
stead.

     3. Publishing Schedules — The Deseret Morning News currently publishes morning editions Monday
through Sunday between 7 p.m. and 7 a.m.. Currently, the Saturday publication carries the present
tabloid LDS Church News Section, which the Deseret Morning News may elect to publish weekly on any
day it may select. The Salt Lake Tribune currently publishes morning editions Monday through
Sunday between 7 p.m. and 7 a.m.

     Whenever the Deseret Morning News and the Tribune are printed in the same time frame, news
deadlines and printing times shall be determined in a manner fair to both newspapers, and
distribution and delivery of both papers shall be accomplished by the NAC through joint use of
trucks and carriers wherever practical.

 

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     In satisfaction of DNPC’s obligations under the 2001 JOA to purchase and/or own an additional
press and/or other directly related capital equipment which may initially have been required to
accommodate the entry of the Deseret Morning News into the morning field of publication, the DNPC
has prior to the parties’ execution of this Amendment and Restatement of Agreement purchased, at
its sole expense, one TKS Color-Top 5000 printing press and certain related press drive and central
system equipment and computer software (collectively, a “TKS Press”) and has also purchased at its
sole expense a 33.33 percent interest in a Newsgrip-A Conveyor System, all of which equipment
concurrently with the parties’ execution of this Amendment and Restatement of Agreement, has been
leased by DNPC to NAC pursuant to two separate leases between DNPC and NAC, both dated as of July
1, 2006 (the “DNPC Press and Conveyor System Leases”). Although such leases provide for the NAC to
pay a fair market value rental for its use of that equipment, as required by Section 7 hereof, the
parties hereby agree that for the term of such leases and any renewal thereof, there shall be a
special allocation of income made and paid to K-T, LLC monthly in an amount equal to 138% of the
monthly rent paid by NAC to DNPC pursuant to such leases. This special allocation of income shall
be paid concurrently with the monthly distribution pursuant to Section 4 hereof.

     4. Division of Earnings and Losses Subject to the special allocation provided for at the end
of Section 3 hereof, NAC shall apportion to DNPC and K-T, LLC, in percentages hereinafter set
forth, the net income or the net loss of its agency operations hereunder. Each month all receipts
and income collected from its newspaper operations as herein provided (except for One-sided
Advertising as hereafter set forth), after said special allocation and the payment of operating
expenses and other proper expenditures, and retaining such part of said net income as may
reasonably be required as working capital for its near-term future operations as

 

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recommended by the President and approved by the Management Committee , shall be distributed
to the parties hereto in percentages as follows: fifty-eight percent (58%) to K-T, LLC and
forty-two percent (42%) to DNPC. Where one of the newspapers determines as a matter of editorial
policy not to carry certain classifications of advertising or certain particular advertisements,
all receipts and income collected from such advertising (hereinafter “One-sided Advertising”) shall
be distributed to the party in whose newspaper the advertisements are run, after payment of related
operating expenses as measured by the NAC’s production costs; provided, however that if advertising
is in fact carried in a newspaper, the newspaper carrying such advertising shall be entitled to
participate in the revenues derived therefrom regardless of whether it has a general policy of
refusing the advertising in question.

     Charges to either party for Extra Editorial Pages (as defined in Section 6.05 hereof), for
One-sided Advertising and/or for promotional advertising space which promotes only the Deseret
Morning News or only the Tribune, or which seeks to build community goodwill or to promote
charities, community groups or activities solely supported by only one of the parties, shall be
based upon the NAC’s actual incremental costs of material and labor therefor, as reflected in the
operating budget sections of the applicable NAC Annual Plan. Such costs shall be subject to a
quarterly adjustment to reflect fluctuations in actual newsprint or other costs from the estimated
newsprint costs and other estimated costs reflected in the applicable NAC Annual Plan.

     Notwithstanding the foregoing, the Management Committee of the NAC from time to time shall
establish a schedule for production of each of the daily newspapers which imposes reasonable duties
on each of the parties to cooperate in meeting page flow, press starts and other production
deadlines. If for any reason DNPC or K-T, LLC fails to adhere to said schedule

 

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within designated tolerances, such failing party may be assessed a late charge according to a
schedule of production costs computed using the NAC’s accounting methods. Such charge shall be
subject to approval by the NAC Management Committee.

     5. Limitations on Activities — Neither party shall engage in any activity which, in the
opinion of counsel satisfactory to both of them, would jeopardize the exemption of this Agreement
and the parties’ joint operating arrangement under the Newspaper Preservation Act.

     Neither party shall have the right to utilize the services or facilities of the NAC for any
other newspaper publication published by either party without the prior written consent of the
other party, and without the entire cost of such services and/or facilities being allocated to the
party utilizing them.

     Except as provided in this Agreement, neither party hereto shall publish any newspaper in the
State of Utah so long as this Agreement shall remain in force, except as a given area shall be
designated in writing by one party to this Agreement as being outside the then existing primary and
secondary market areas of either newspaper (i.e., the Newspaper Designated Market and Retail
Trading Zone, as defined by the Audit Bureau of Circulation) and the other party does not object in
writing within sixty (60) days from the receipt of such designation. No such objection shall be
made unreasonably, and such objections must be based on the following criteria: the NAC’s market
penetration in the designated area, such area’s importance to the NAC’s advertisers, and all other
criteria then relevant to a proper determination that such an objection constitutes a necessary and
ancillary restraint to this Agreement under the antitrust laws. The restrictions hereinbefore set
forth shall not, however, apply (a) to the Park Record or any other newspaper now published in
Summit County, Utah by the Park Record, its owner, Utah Media, Inc., a Delaware corporation, or its
successors in interest (“UMI”), or (b) any newspaper or other

 

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publication now or hereafter published by any entity, of which less than fifty percent (50%)
of the stock or other equity is owned by William Dean Singleton, his family and/or trusts for their
benefit.

     DNPC may, on its own, use the NAC services and facilities to publish for distribution outside
the State of Utah (or elsewhere outside the primary market area when designated without objection
pursuant to this paragraph) a national or international edition or section of the Deseret Morning
News. This edition or section may contain advertising at rates and with guidelines and advertising
and editorial ratios as may be determined by DNPC’s management. DNPC shall pay to the NAC the
actual amount of increased out-of-pocket costs actually incurred for this special edition and shall
receive the revenues for advertising published in said national or international edition for
distribution outside the state of Utah.

     6. General Relations and Duties of the NAC — The sole purpose and function of the NAC shall be
to act as agent of the parties hereto in the printing, advertising, solicitation and distribution
functions of their respective newspapers, and doing such other things as are herein specified, the
cost of which shall be paid out of the moneys collected by the NAC as herein provided. The NAC
shall be entitled, as a commission, to a fee in an amount equal to 3.5% of the net income of its
agency operations under this Agreement, in keeping with requirements of the Internal Revenue
Service, which amount shall be distributed to the parties from time to time based upon their
respective percentage of earnings allocation when the commission was charged.

     6.01 Management — Management and control of the business of the NAC shall be and remain in its
Management Committee. Except as specifically provided in this Agreement, neither the officers,
directors or employees of either of the parties hereto shall undertake or

 

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assume the direction or control of any of the executive officers or employees of the NAC in
the performance of their duties and obligations hereunder.

     6.02 NAC as Agent — Except as may be expressly otherwise herein provided, all contracts made
by the NAC shall be made in the capacity of agent of the parties hereto and its activities and
powers shall be confined entirely to such agency. Except as may otherwise expressly herein, no
provision contained herein or in the Articles of Organization or Operating Agreement of the NAC
shall be construed as permitting it to act other than as agent of the parties hereto, as herein
provided, during the term of this Agreement and any renewal or extension thereof.

     6.03 NAC Duties — The parties hereto shall, except insofar as the NAC itself shall secure the
same and/or otherwise acquire the ownership thereof, make available or cause to be made available,
for the use of the NAC, as their agent, all records, office equipment and other facilities
necessary to enable the NAC to carry into effect the purposes, objects, terms and conditions of
this agreement. The NAC shall, as agent, except as the parties may otherwise expressly provide
herein, (a) continue to perform all of the functions and provide all of the services the Newspaper
Agency Corporation heretofore performed and provided under 2001 JOA; (b) implement NAC’s Annual
Plan, (c) solicit, distribute and promote the business of the papers, and do all billing for
advertising, circulation and other charges on behalf of the parties hereto; (d) receive and collect
all receipts and income from the publication of the newspapers of the parties hereto; (e) pay all
operating expenses incident to the printing, of the sale of advertising and subscriptions for, of
the promotion and distribution of said newspapers, excepting the news and editorial departments
thereof and other functions performed separately by the parties (e.g., internal accounting, etc.),
and excluding salaries of the executives of the

 

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parties hereto; (f) prepare balance sheets and statements of income, cash flow and owners’
equity on a monthly basis. Such statements shall be prepared on a consistent basis and in
accordance with generally accepted accounting principles; (g) keep complete books of account and
records of operations and costs, all of which books and records shall be accessible at all times to
the parties hereto; (h) prepare and deliver all necessary reports to governmental agencies; (i)
promote the advertising in and circulation of both newspapers consistent with provisions of the
Preamble to this Agreement; and (j) integrate the operations as much as is prudent and businesslike
in order to effect all practical economies.

     6.04 Subscription Rates/Advertising — The NAC shall have the right to set and establish the
respective advertising and subscription rates for the Deseret Morning News and the Tribune from
time to time; provided, however, that circulation rates shall be established in such a manner so as
not to constitute a detriment to either of the newspapers with respect to the other or to provide a
benefit for either of the newspapers with respect to the other. Whenever the advertising linage of
the Deseret Morning News acceptable to it is 85% or less than that of the Tribune, the NAC shall
restructure the rate card within any legal and economic restraints to again make buying the Deseret
Morning News space along with that of the Tribune as attractive as possible. The classified
advertising section shall be identical in each newspaper, except where one of the newspapers
refuses to accept certain classifications of advertising or certain particular advertisements, as
provided herein (i.e., One-sided Advertising), or except when the advertisers elect to advertise in
only one newspaper. Unless the parties agree otherwise, each newspaper’s classified advertising
section shall carry the separate folio of the newspaper in which it appears.

     6.05 Newshole Allocations — During the term of this agreement, the NAC shall establish the
size of each day’s edition of the newspapers, and allot to the Deseret Morning

 

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News the same percentage ratio newshole as the Tribune, based on the amount of run of press
(“ROP”) paid advertising space appearing in each newspaper. The average weekly ratio of newshole
to advertising space shall be determined annually in the NAC’s Annual Plan, provided that in no
case shall the amount of space allotted for editorial matter in any single edition be less than
ninety-three (93) columns (fifteen and one-half pages), unless otherwise approved by the Management
Committee. If either newspaper requires more editorial space than the amount allotted by NAC in
any given week (“Extra Editorial Pages”), the cost of such extra pages beyond the newshole
established by the NAC shall be charged to the party requiring the extra pages in the manner
described in Section 4 hereof.

     6.06 Working Capital — The parties hereto shall from time to time, upon request of the
President and upon the approval of the Management Committee, provide additional working capital to
the NAC in the ratio of their respective percentages of earnings and losses (i.e., 58% — 42%) as
set forth in Section 4 hereof, as such amounts may be required to enable the NAC to carry on and
perform its duties hereunder. If either party shall fail to provide its required share of
additional working capital when due, the other party may elect to provide such share, as an advance
on the defaulting party’s behalf, which advance shall bear interest at the prime lending rate
charged by the Bank of New York until repaid, and which advance shall be repaid in full before the
party failing to provide its required share of working capital shall be entitled to receive further
distributions of profits of the NAC pursuant to Section 4 hereof.

     6.07 Employees — The NAC shall contract with, employ and pay all employees necessary to its
operation as provided herein, and shall make contracts in connection with such employment of labor
and with independent contractors for the furnishing of labor as may be required; provided, however,
that the NAC shall have no role or involvement whatsoever with

 

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employment in connection with the operations of the editorial and news departments of the
parties hereto.

     6.08 Audits — An annual audit of the business of the NAC shall be made by an independent
certified public accountant or firm of certified public accountants selected by the Management
Committee, and copies of the reports issued with respect to such audits shall be furnished to each
of the parties hereto.

     6.09 Agency Status — Except as may otherwise expressly be provided herein, the NAC shall be
only an agent and shall act only in an agency capacity for the parties hereto in its operations
hereunder, and there is not and shall not be any partnership or joint adventure between the parties
hereto or between either of the parties hereto and the NAC

     6.10 Accounts to be Paid — Except as herein otherwise provided, the NAC shall pay only such
accounts as shall have been incurred by it as such agent.

     6.11 Libel Actions — Any expense arising out of claims for libel or alleged libel, and any
judgment (including attorney fees) in connection therewith, shall be borne and paid by the party
hereto in whose newspaper the libel or alleged libel is published.

     6.12 Newsprint — The parties hereto will use their buying power relationships to enable the
NAC to purchase newsprint at the lowest possible price, without markup. In the event a newsprint
shortage necessitates reduction in number of pages of the Tribune and the Deseret Morning News,
they shall be reduced equally in number.

     6.13 Trademarks, etc. — Neither party hereto shall in any manner represent or claim that it
has any ownership interest in any trademarks, trade names, service marks and copyrights held by the
other party and each party acknowledges that any use by it or by the NAC hereunder

 

20

of any trademarks, trade names, service marks and copyrights held by the other party shall not
create in its or in the NAC’s favor any right, title or interest in or to the same.

     7. Property Furnished to the NAC — As of July 1, 2006, NAC, as lessee, will enter into leases
with Salt Lake Newspaper Production Facilities, LLC (which is owned by MediaNews Group and DNPC),
as lessor, for new production facilities in West Valley City (excluding certain equipment which is
owned by the parties as tenants in common and which will not be subject to said leases and
excluding the equipment which will be the subject of the DNPC Press and Conveyor System Leases
described in the last paragraph of Section 3 hereof) and, as lessee, will enter into the DNPC Press
and Conveyor System Leases with DNPC, as lessor. NAC may also now or in the future enter into
other leases with one or both of the parties or with third parties for additional real property,
equipment and other property, and NAC may from time to time purchase or otherwise acquire
additional real property, equipment and other property. In addition to such real property,
equipment and other property that NAC may lease, purchase or otherwise acquire relative to the
carrying out of its operations, the parties hereto (either as tenants in common or as separate
owners) shall furnish (58% by K-T, LLC and 42% by DNPC) and place at the disposal of the NAC, for
its exclusive use, such other real property, equipment, and other property as shall be required by
NAC, subject to the following provisions:

     (a) All of the same shall be used, kept in repair and, as approved by the
NAC’s Management Committee, added to, maintained and replaced by the parties when
necessary.

     (b) All of the same, and all additions to and replacements thereto, shall,
unless and until the parties shall mutually contribute their ownership interests
from time to time in such equipment to the NAC, continue to be owned by the

 

21

parties hereto (either as tenants in common or as separate owners) in accordance
with their respective interests and appropriate book records thereof shall be kept
by the NAC.

     (c) All of the same, including additions thereto, may be sold or exchanged by
the NAC; provided, however, that no part thereof shall be sold or exchanged except
with approval of the NAC’s Management Committee and after full compliance with the
terms and provisions of any and all contracts and obligations of the parties hereto
applicable thereto.

     (d) In the event of any authorized sale thereof by the NAC, the NAC shall pay
the proceeds of any such sale to the parties hereto in accordance with their
respective ownership interests therein.

     (e) Title thereto, except as the parties may have contributed to the NAC
their ownership interests therein, shall be in the parties hereto, as provided
herein, and shall at no time be in the NAC.

     (f) shall, out of the funds received by it as the parties’ agent, pay for all
necessary repairs thereof, all taxes levied and assessed thereon, fire and other
customary insurance thereon and in connection with the use thereof, to the same
extent and in the same manner it would pay for such matters in connection with
similar items of property which the NAC may itself own directly.

     8. Independent Editorial and News Departments and Advertising Policies — Each of the parties
hereto retains unto itself complete and exclusive control of its news and editorial departments and
policies, together with its editorial contracts, conduct and contents, and the selection of its
editors and news and editorial department employees. There shall be no

 

22

merger, combination or amalgamation of editorial or reportorial staffs, and editorial policies
shall be independently determined. All expenses of the news and editorial department of each of
the parties hereto, including wire and photo services, salaries, compensation, rentals to or for
correspondents and bureaus, features and feature services, graphics, internet content, office
equipment and supplies, and all other expenses directly attributable to their respective news and
editorial departments shall be paid by the respective parties hereto and not by the NAC.

     Both parties shall have unlimited discretion to contract with a third party to exercise the
newspaper’s independent editorial and newsroom rights of expression, but all other rights under
this Agreement shall be personal and non-delegable, except as otherwise expressly provided in
Section 21 hereof.

     Each party hereto retains unto itself complete and exclusive control of its advertising
acceptance policies and the content of the advertising to appear in the respective newspaper edited
by it. The NAC shall use its best efforts to transfer unacceptable advertising from a feature
section to a main section of the newspaper that edits the section and elects to publish such
advertising, so long as the advertiser agrees and it is mechanically feasible.

     Any claims of third parties, cost or expense arising from excluding advertising from one of
the two newspapers, shall be borne by the party whose policies exclude the same. Any such claims,
cost or expense arising from the inclusion of the advertising in one newspaper, when such
advertising has been excluded from the other newspaper due to its advertising policies, shall be
borne by the publishing newspaper.

     9. Circulation Promotions — To implement provisions of the Preamble to this Agreement, the NAC
will devote sufficient funds and efforts to expand marketing, promotion and advertising for the
purpose of increasing circulation of both newspapers. Expenditures for

 

23

these efforts, including geographic expansion, shall be weighted in favor of the newspaper
with less overall circulation.

     The NAC will support expanded geographic distribution for the Deseret Morning News (and, if
desired by K-T, LLC, for the Tribune) into other key markets outside the primary and secondary
market areas (as hereinbefore defined) currently served by either newspaper, whenever practical;
provided, however, that if such expansion is undertaken for only one of the newspapers at its
request and such expansion occasions any incremental cost to the NAC, the party requesting such
expansion shall be charged for such cost and provided further such party shall be entitled to
receive all of the circulation revenue received by the NAC from such expanded circulation.

     All advertising and promotion of both newspapers shall be done by the NAC, except that DNPC
shall be free to spend whatever it wishes in additional sales promotion of the Deseret Morning News
through the NAC or independently, provided such expenditures by DNPC shall be coordinated with the
NAC’s efforts.

     10. Ownership of K-T, LLC — The parties confirm that this Agreement creates a special
relationship between them that must be honored and preserved. It is therefore agreed that the
present ownership of K-T, LLC (i.e., one hundred percent owned by MediaNews Group, Inc.) shall not
be changed without written consent of DNPC, which shall not be unreasonably withheld; provided,
however, that DNPC shall have the unrestricted discretionary right to withhold its consent if any
sale, transfer or conveyance in one or more transactions would result in more than 49% of the
ownership of K-T, LLC being held by any entity or entities other than MNG or if any such owner or
owners of minority interest in K-T, LLC, individually or collectively, would have the right to
manage or participate in management of K-T, LLC or

 

24

compel it to take or forbear any action with respect to this Agreement or management of the
NAC.

     11. Term and Renewals — This Agreement shall continue until and through the thirty-first day
of December, 2020 unless sooner terminated as provided in Section 12 hereof. This Agreement shall
automatically renew for succeeding renewal periods of five (5) years each, unless either party
shall notify the other in writing at least two (2) years prior to the end of the then current term
that it elects to terminate the Agreement at the end of the then current term; provided further,
anything to the contrary in this paragraph notwithstanding, DNPC shall have the option to extend
the initial term of this Agreement for successive additional terms of ten (10) years by notifying
K-T, LLC of its election to do so at least two (2) years prior to the end of the current term or of
any extended term.

     12. Optional Termination — Either party hereto shall have the option to terminate this
Agreement at any time upon the happening of any one or more of the following events:

     (a) Performance of this Agreement by either or both parties involves a violation of law
or of governmental order or decree; or

     (b) Change or modification is made in the scope or applicability of the exemption
available under the Newspaper Preservation Act which prevents the performance of this Agreement
according to its terms; or

     (c) As a result of any changes in the Constitution of any state or the Constitution of
the United States of America or of legislative or administrative action (whether state or federal)
or by final decree, judgment or order of any court or administrative body (whether state or
federal) entered after the contest thereof by either or both parties in good faith, this Agreement

 

25

shall have become void or unenforceable or impossible of performance in accordance with the
intent and purposes of the parties as expressed in this Agreement; or

     (d) Because of the bankruptcy or insolvency of a party, there has been or is likely to
be an involuntary alienation of the membership interests of the NAC owned by such party.

           To exercise such option, the party seeking to terminate this Agreement shall give written
notice to the other party within fifteen (15) days following the occurrence of the event upon which
termination is to be made describing such event, except that no such termination shall be effective
until the expiration of twelve (12) months after giving such written notice wherever it is legally
possible, unless such delay in termination would substantially prejudice either or both parties.

     13. Rights of Parties on Termination — On termination of this Agreement by expiration or
otherwise, the parties hereto shall meet and endeavor to work out a just and equitable plan for
discontinuing the operation of their newspapers by the NAC, and each shall assume the full
operation of its respective newspaper from the NAC at the earliest legally mandated practicable
date, subject to the provisions of the preceding sentence of this Agreement. It is understood that
until the physical properties, real and personal, owned by the parties hereto and made available to
NAC for the printing and distribution of their newspapers, are properly segregated or divided so
that each of the parties hereto can print and circulate its paper with its own equipment (and in no
event for a period of availability, if desired by either party, less than three years from the date
of termination), such equipment and real property so owned by them in common and which may be
necessary for the continued printing and circulation of their two newspapers shall continue to be
available to both parties, in an equitable manner, to the extent legally permissible, to the end
that there be no break in the continued publication and circulation

 

26

of their respective newspapers. Either party may, by mutual agreement, acquire the plant and
equipment interests of the other party, but neither party shall be compelled to purchase or sell
such asset interests to the other except as provided in a mutually agreed plan of distribution.
Upon termination of this Agreement, both parties shall be given full access to all circulation,
subscriber and single copy distribution lists, advertising account records, and market research
data relating to both newspapers. The provisions of this paragraph do not apply to property that
is leased by the NAC from either K-T, LLC or DNPC or that is leased by the NAC from Salt Lake
Newspaper Production Facilities, LLC, which leases have their own termination provisions.

     The NAC shall be dissolved as soon as practicable, and the cost and expense thereof paid from
such funds as the NAC may have on hand, and, if insufficient, the deficiency shall be funded by the
parties hereto in the same proportion to which they are entitled to participate in the earnings of
the NAC at the time of dissolution. Accounts or obligations incurred by the NAC prior to or in
connection with such dissolution and any of its then outstanding commitments shall be paid or
provided for out of funds it may have on hand and, if such funds are insufficient, shall be paid or
provided for by the parties in the same proportion to which they are entitled to participate in the
earnings of the NAC at the time of dissolution. Property other than cash and accounts receivable
which may be in the custody of the NAC, shall be delivered to the parties herein in accordance with
their respective interests therein. Any remaining cash on hand with the NAC that is not needed for
the payment of accounts or obligations, as aforesaid, or required to be set aside for liquidation
of commitments, together with notes and accounts receivable, shall be delivered to the parties
hereto in such proportion as they may be entitled to participate in the earnings of the NAC at the
time of dissolution.

 

27

     If, upon termination of this Agreement, the parties are unable to agree upon a distribution
plan and its implementation, either party may petition for a court-appointed receiver to effect a
dissolution of the NAC and distribution of its assets pursuant to Rule 66(h) of the Utah Rules of
Civil Procedure. If a receiver is appointed, the parties hereto will stipulate that the provisions
of this Agreement will be implemented by the receiver to the full extent permitted by law.

     14. Notices — All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally, by telecopier or sent by certified mail,
return receipt requested, postage prepaid, or by a recognized air courier service as follows:

     If to DNPC to:

Deseret News Publishing Company

30 East First South

Salt Lake City, Utah 84111

Attention: Ellis R. Ivory, Chairman

     with a copy to

Kirton & McConkie, P.C.

Eagle Gate Tower

60 East South Temple Street, Suite 1800

Salt Lake City, Utah 84111

Attention: Robert W. Edwards

     If to K-T, LLC to:

Kearns-Tribune, LLC

c/o MediaNews Group, Inc.

1560 Broadway, Suite 2100

Denver, CO 80202

Attention: Joseph J. Lodovic, IV, President

     with a copy to

Hughes Hubbard & Reed LLP

1775 I Street, N.W., Suite 600

Washington, DC 20006

Attention: Howell E. Begle, Jr., Esq.

 

28

or to such other address or addresses as shall be designated in writing. All notices shall be
effective when received.

     15. Confidentiality — Except as required by law, legal process, government regulators, or as
reasonably necessary for performance of their obligations or enforcement of their rights under this
Agreement, without the prior written consent of the other, the parties hereto will treat and hold
as confidential all confidential information disclosed to or received by them relating to the
business of the NAC, including all intellectual property rights, in each case excluding information
that (a) at the time of disclosure or receipt is in the public domain or thereafter enters the
public domain without any act or omission of receiving party, (b) was in possession of the
receiving party before its disclosure hereunder, or (c) is obtained by the receiving party from a
third party who does not thereby breach an obligation of confidence to either party to this
Agreement and who discloses it in good faith.

     16. Definition of Parties — Any reference herein to Kearns-Tribune, LLC (K-T, LLC), to
MediaNews Group, Inc. (MNG), or to either or both of them as a “party” or as “parties” to this
Agreement, as such references relate to any covenants, performances and prohibitions set forth in
this Agreement, shall include all entities and enterprises in which William Dean Singleton, members
of his family and/or trusts for their benefit collectively own fifty percent (50%) or more,
directly or indirectly of the ownership, and all such other entities and enterprises over which he
otherwise is capable of exercising management control. Any reference herein to Deseret News
Publishing Company as a party to this Agreement, as such references relate to any covenants,
performances and prohibitions set forth in this Agreement, shall include all entities and
enterprises in which Deseret Management Corporation or any other entity affiliated with The Church
of Jesus Christ of Latter-day Saints owns fifty percent (50%) or more, directly or

 

29

indirectly of the ownership and all such other entities and enterprises over which Deseret
Management Corporation or any other entity affiliated with The Church of Jesus Christ of
Latter—day Saints otherwise is capable of exercising management control.

     17. Counterparts — This Agreement may be executed in two or more counterparts by the parties
hereto, each of which when so executed will be an original, but all of which together will
constitute one and the same instrument.

     18. Governing Law — This Agreement shall be governed by and construed in accordance with the
laws of the State of Utah as applied to transactions taking place wholly within Utah between Utah
residents.

     19. No Third Party Beneficiary — This Agreement is made solely for the benefit of the parties
hereto and their lawful successors and assigns. No other person shall have any rights, interest,
or claims hereunder or otherwise be entitled to any benefits under or on account of this Agreement
as a third party beneficiary or otherwise.

     20. Take Action — Each of the parties hereto agrees to take all corporate or other action
necessary to carry out and effectuate the intent, purposes and provisions of this Agreement and to
cooperate with the other party in every reasonable way that will promote successful and lawful
operation of this Agreement for both parties.

     21. Successors and Assigns — Because of the special and fiduciary relationship created hereby,
neither this Agreement nor any of the rights or obligations of either party thereto shall be
assignable or delegable by either party without the written consent of the other. Any authorized
assignment shall be binding upon and inure to the benefit of the respective successors and assigns
of the parties hereto.

 

30

     22. Equitable Remedies — Because of the special relationship perpetuated by this Agreement and
because the parties hereto stipulate that an award of damages for breach of this Agreement will not
provide an adequate remedy for such breach, the parties shall be entitled to specific performance
of the terms of this Agreement and other appropriate equitable remedies.

     23. Severability — If any provision of this Agreement shall be held or deemed to be or shall,
in fact, be illegal, invalid, non-binding, inoperative or unenforceable, the same shall not affect
any other provision or provisions herein contained or render the same illegal, invalid,
non-binding, inoperative, or unenforceable to any extent whatever.

     24. NAC Binding Approval — The parties shall cause the NAC to approve and accept in writing
all of the terms hereof applying to it, with duplicate original executed copies thereof delivered
to each of the parties hereto.

     25. Department of Justice Filing — A copy of this 2006 Amendment and Restatement Agreement,
together with a copy of the 1952 Agreement, the 1982 Amendment and the 2001 Amendment and
Restatement of Agreement, shall be filed with the United States Department of Justice immediately
following its execution by the parties hereto.

     26. Arbitration — If the parties are deadlocked with respect to a Reserved Matter and if the
parties’ dispute with respect to such Reserved Matter is not resolved by negotiation within ten
(10) business days following written notice of the dispute delivered by either party to the other,
either party shall have the right to refer the dispute to arbitration by giving notice to the
other, which notice shall identify the dispute. During the first seven (7) days after such notice
demanding arbitration the parties shall seek to nominate a mutually agreed upon arbitrator. If
such an arbitrator is selected and engaged, he or she shall serve in accordance with these
provisions. If within the said seven day period no mutually agreed arbitrator is selected and

 

31

engaged, then the party requesting arbitration shall provide a copy of the notice and request
for arbitration to the person serving at such time as President of the Newspaper Association of
America (“NAA”) or, if such person is interested in the dispute or is not independent of each of
the parties, the most recent past president of the NAA who is not interested in the dispute and who
is independent of each of the parties. The NAA President or past president receiving such notice
(“Facilitator”) shall, within fifteen (15) days after receipt of the notice, appoint either himself
or herself, or such other person qualified as stipulated herein, to serve as arbitrator of the
dispute (“Arbitrator”). The arbitration shall be conducted in accordance with the Rules of the
American Arbitration Association or such other rules as the Arbitrator in his or her sole
discretion shall select (in either case, the “Rules”). The procedural laws of the Federal
Arbitration Act shall apply to the arbitration to the extent not inconsistent with the Rules. The
arbitrator appointed hereunder shall not be interested in the dispute, shall be independent of each
of the parties, and shall be a professional with at least ten (10) years experience in the
newspaper publishing industry at an executive level or otherwise a person of recognized competence
or expertise in the field of newspaper publishing.

     The venue of the arbitration shall be in Salt Lake City, Utah. In arriving at a decision, the
Arbitrator shall consider the pertinent fact and circumstances. Parties shall have the right to
present documentary evidence and witnesses and to cross-examine witnesses. The Arbitrator shall
issue his or her findings and conclusions in writing. The decision of the Arbitrator shall be
final and binding upon the parties, and no party shall seek recourse to a law court or other
authorities to appeal for revisions of such decision. Each party shall be responsible for payment
of its own expenses and the parties shall equally share the fees and expenses of the Arbitrator.
On request of any party, a transcript of the hearing shall be prepared and made available to the

 

32

parties. Judgment on the decision of the Arbitrator may be entered in any court having
jurisdiction thereof. Nothing in the Agreement shall preclude a party hereto from seeking
equitable or other relief from a court of competent jurisdiction when such relief is unavailable
pursuant to the Rules. The parties agree that any arbitration relating to a dispute hereunder
shall be conducted and concluded as privately and expeditiously as possible, and the parties shall
use their best efforts to that end.

 

33

     IN WITNESS WHEREOF, the parties hereto have caused these presents to be duly executed at Salt
Lake City, Utah, the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	DESERET NEWS PUBLISHING COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	\s\ Michael B. Todd
	 	 	 	By:
	 	\s\ Jim M. Wall	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	          
             
            , Secretary
	 	 	 	 	 	Jim M. Wall, President	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	KEARNS-TRIBUNE, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	\s\ Patricia Robinson
	 	 	 	By:
	 	\s\ Joseph J. Lodovic, IV	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Patricia Robinson, Secretary
	 	 	 	 	 	Joseph J. Lodovic, IV, President	 	 

     Newspaper Agency Company, LLC hereby approves and accepts the foregoing Agreement and agrees
to be bound by terms and provisions thereof applicable to it.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	NEWSPAPER AGENCY COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	\s\ Patricia Robinson
	 	 	 	By:
	 	\s\ William Dean Singleton	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Patricia Robinson, Secretary
	 	 	 	 	 	William Dean Singleton, Chairmanexv10w16

 

			
	 	 	 
	Exhibit 10.16
	 	EXECUTION VERSION

Limited Liability

Company Operating Agreement

of

Newspaper Agency Company, LLC

July 1, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I	 	 	1	 
	Definitions	 	 	1	 
	ARTICLE II	 	 	10	 
	The Limited Liability Company	 	 	10	 
	 
	 	2.1	 	Formation	 	 	10	 
	 
	 	2.2	 	Name	 	 	10	 
	 
	 	2.3	 	Business Purpose	 	 	10	 
	 
	 	2.4	 	Registered Agent	 	 	11	 
	 
	 	2.5	 	Term	 	 	11	 
	 
	 	2.6	 	Principal Place of Business	 	 	11	 
	 
	 	2.7	 	Title to Company Property	 	 	11	 
	 
	 	2.8	 	The Members	 	 	11	 
	 
	 	2.9	 	Fiscal Year	 	 	11	 
	 
	 	2.10	 	Representations and Warranties of the Parties	 	 	12	 
	 
	 	2.11	 	Survival of Representations and Warranties	 	 	13	 
	ARTICLE III	 	 	13	 
	Capital Structure and Contributions	 	 	13	 
	 
	 	3.1	 	Capital Contributions	 	 	13	 
	 
	 	3.2	 	Failure to Make Capital Contributions	 	 	14	 
	 
	 	3.3	 	No Right to Return of Capital Contributions	 	 	14	 
	 
	 	3.4	 	Loans by Third Parties	 	 	15	 
	ARTICLE IV	 	 	15	 
	Capital Accounts; Allocation of Profits and Losses	 	 	15	 
	 
	 	4.1	 	Capital Accounts	 	 	15	 
	 
	 	4.2	 	Book Allocation	 	 	16	 
	 
	 	4.3	 	Tax Allocations	 	 	20	 
	ARTICLE V	 	 	22	 
	Distributions	 	 	22	 
	 
	 	5.1	 	In General	 	 	22	 
	 
	 	5.2	 	Periodic Distributions	 	 	22	 
	ARTICLE VI	 	 	22	 
	Accounting and Reports	 	 	22	 
	 
	 	6.1	 	Books and Records	 	 	22	 
	 
	 	6.2	 	Reports to Members	 	 	23	 
	 
	 	6.3	 	Tax Matters Member/Annual Tax Returns	 	 	24	 
	 
	 	6.4	 	Actions in Event of Audit	 	 	27	 
	 
	 	6.5	 	Tax Election	 	 	27	 
	ARTICLE VII	 	 	28	 
	Actions by Members	 	 	28	 
	 
	 	7.1	 	Meetings/Actions by Members	 	 	28	 
	 
	 	7.2	 	Certain Matters Requiring Approval of the Members	 	 	28	 
	 
	 	7.3	 	Action by Consent	 	 	29	 
	 
	 	7.4	 	Limitation on  Rights of Defaulting Member	 	 	30	 

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	ARTICLE VIII	 	 	30	 
	Management Committee	 	 	30	 
	 
	 	8.1	 	The Management Committee	 	 	30	 
	 
	 	8.2	 	Limitation of Rights of Defaulting Member	 	 	30	 
	ARTICLE IX	 	 	31	 
	Transfer of Company Interests; Additional and Substitute Members	 	 	31	 
	 
	 	9.1	 	Prohibited Transfers	 	 	31	 
	 
	 	9.2	 	Permitted Transfers by Members	 	 	31	 
	 
	 	9.3	 	Substitute Member	 	 	33	 
	 
	 	9.4	 	Involuntary Transfers	 	 	33	 
	ARTICLE X	 	 	37	 
	Dissolution and Liquidation	 	 	37	 
	 
	 	10.1	 	Dissolution	 	 	37	 
	 
	 	10.2	 	Closing of Affairs	 	 	37	 
	 
	 	10.3	 	Orderly Liquidation	 	 	39	 
	 
	 	10.4	 	Deficit Upon Liquidation	 	 	39	 
	ARTICLE XI	 	 	39	 
	Amendments to Agreement	 	 	39	 
	ARTICLE XII	 	 	40	 
	Indemnification	 	 	40	 
	 
	 	12.1	 	Remedies for Breach	 	 	40	 
	 
	 	12.2	 	Limitation of Liability	 	 	40	 
	 
	 	12.3	 	Indemnification by Members for Breach of Representations or Warranties	 	 	40	 
	 
	 	12.4	 	Indemnification by Company	 	 	43	 
	ARTICLE XIII	 	 	47	 
	General Provisions	 	 	47	 
	 
	 	13.1	 	Arbitration	 	 	47	 
	 
	 	13.2	 	Notices	 	 	47	 
	 
	 	13.3	 	Confidentiality	 	 	48	 
	 
	 	13.4	 	Public Announcements	 	 	50	 
	 
	 	13.5	 	Entire Agreement, Amendments, etc.	 	 	50	 
	 
	 	13.6	 	Construction Principles	 	 	50	 
	 
	 	13.7	 	Counterparts	 	 	51	 
	 
	 	13.8	 	Severability	 	 	51	 
	 
	 	13.9	 	Expenses	 	 	51	 
	 
	 	13.10	 	Governing Law	 	 	51	 
	 
	 	13.11	 	Binding Effect	 	 	52	 
	 
	 	13.12	 	Additional Documents and Acts	 	 	52	 
	 
	 	13.13	 	Third Party Beneficiaries	 	 	52	 
	 
	 	13.14	 	Limited Liability Company	 	 	52	 

-ii-

 

EXHIBITS

	 	 	 
	Exhibit 1

	 	2006 Amended and Restated Salt Lake JOA

-iii-

 

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

OF

NEWSPAPER AGENCY COMPANY, LLC

     This Liability Company Operating Agreement is made and entered into as of the 1st day of July,
2006, between Kearns-Tribune, LLC., a Utah limited liability company, and Deseret News Publishing
Company, a Utah corporation (“DNPC”). K-T, LLC and DNPC shall hereafter be known as and referred
to as the “Members” and individually as a “Member.”

ARTICLE I

Definitions

     “Absolute Majority Vote of the Management Committee” means the affirmative vote of a
majority of all of the appointed members of the Management Committee irrespective of whether all of
the appointed members of the Management Committee are present at a duly constituted meeting of the
Management Committee.

     “Act” means the Utah Limited Liability Company Act, as in effect from time to time.

     “Adjusted Capital Account Deficit” means, with respect to any Member, the deficit
balance, if any, in such Member’s Capital Account as of the end of the relevant Fiscal Year, after
giving effect to the following adjustments:

               (i) such Capital Account shall be deemed to be increased by any amounts that such Member is
deemed to be obligated to restore pursuant to (A) the penultimate sentence of Regulations Section
1.704-2(g)(1), or (B) the penultimate sentence of Regulations Section 1.704-2(i)(5); and,

-1-

 

               (ii) such Capital Account shall be deemed to be decreased by the items described in
Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

     “Affiliate” means any person controlled by, controlling, or under common control with
the entity in question.

     “Agreement” means this document.

     “Bankruptcy Event” means with respect to any Member (i) the application for, or the
consent to, the appointment of a conservator, receiver, trustee, liquidator or the like for itself
or its property; (ii) the admission in writing of its inability to pay its debts as they mature;
(iii) the making of a general assignment for the benefit of its creditors; (iv) its being
adjudicated as bankrupt or insolvent; (v) its filing a voluntary petition in bankruptcy or a
petition or answer seeking reorganization or an arrangement with creditors or to take advantage of
any insolvency law, or an answer admitting the material allegations of a petition filed against it
in any bankruptcy, reorganization, or insolvency proceedings, or corporate action taken by it for
the purpose of effecting any of the foregoing or (vi) an order, judgment, or decree being entered
against it by a court or governmental agency of competent jurisdiction, approving a petition
seeking reorganization of it or appointing a conservator, receiver, trustee, liquidator, or the
like for it or for all or a substantial part of its assets, and such order, judgment, or decree
continuing unstayed or in effect for any period of thirty (30) consecutive days, or an involuntary
petition being filed against it in bankruptcy or seeking reorganization under the Bankruptcy Act
(and the same not having been dismissed within sixty (60) days).

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     “Book Value” means, with respect to any asset of the Company, the adjusted basis of
such asset as of the relevant date for federal income tax purposes, except as follows:

               (i) the initial Book Value of any asset contributed by a Member to the Company shall be the
fair market value of such asset as determined by all of the Members. The determination by the
Members of the fair market value of those assets contributed to the Company in conjunction with the
formation of the Company is set forth in Exhibit “A.”

               (ii) the Book Value of all Company assets (including intangible assets such as goodwill) shall
be adjusted to equal their respective fair market values as of the following times:

          (A) the contribution of money or other property (other than a de
minimis amount) to the Company by a new or existing Member as consideration for an
interest in the Company;

          (B) the distribution by the Company to a Member of more than a de
minimis amount of money or Company property as consideration for an Interest in the
Company; and,

          (C) the liquidation of the Company within the meaning of Regulation Section 1.704-1
(b)(2)(ii)(g);

               (iii) The Book Value of any property distributed to any Member shall be adjusted to equal the
gross fair market value (taking into account Code Section 7701(g)) of such asset on the date of
distribution as determined by the distributee and all of the Members;

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               (iv) the Book Value of the Company assets shall be increased (or decreased) to reflect any
adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section
743(b), but only to the extent that such adjustments are taken into account in determining Capital
Accounts pursuant to Regulation Section 1.704-1 (b)(2)(iv)(m), provided however,
that Book Value shall not be adjusted pursuant to this subsection (iv) to the extent all of the
Members determine that an adjustment pursuant to subsection (ii) above is necessary or appropriate
in connection with a transaction that would otherwise result in an adjustment pursuant to this
subsection (iv); and,

               (v) if the Book Value of an asset has been determined or adjusted pursuant to subsections
(ii), (iii) or (iv) above, any such adjustment shall be reflected in the Profits and/or Losses of
the Company (for book purposes but not for tax purposes) and allocated among the Members in
accordance with Section 4.2, and such Book Value shall thereafter be adjusted by the Depreciation
taken into account with respect to such asset for purposes of computing Profits and Losses and
other items allocated pursuant to Section 4.2.

     The foregoing definition of Book Value is intended to comply with the provisions of Regulation
Section 1.704-1 (b)(2)(iv) and shall be interpreted and applied consistently therewith.

     “Business Day” means any day (other than a day which is a Saturday, Sunday or legal
holiday in the State of Utah).

     “Business Plan” means the NAC Annual Plan as defined in Section 2.02 of the Salt Lake
JOA.

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     “Business Purpose” shall have the meaning ascribed in Section 2.3.

     “Capital Account” means, for each Member, the capital account maintained by the
Company for such Member as described in Section 4.1.

     “Capital Contribution” means the amount of money and the agreed fair market value of
other property (net of any liabilities secured by such property that the Company is considered to
assume or take subject to Code Section 752) contributed by a Member to the Company pursuant to
Article III hereof.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time or any
successor statute. A reference to the Code shall be deemed to include any mandatory or successor
provisions thereto.

     “Company” means the Newspaper Agency Company, LLC, a Utah limited liability company,
or its successor in interest, as identified in Section 2.3.

     “Company Minimum Gain” means the aggregate amount of gain (of whatever character),
determined for each Nonrecourse Liability of the Company, that would be realized by the Company if
it disposed of the Company property subject to such liability in a taxable transaction in full
satisfaction thereof (and for no other consideration) and by aggregating the amounts so computed,
determined in accordance with Regulation Sections 1.704-2(d) and (k).

     “Defaulting Member” shall have the meaning ascribed in Section 3.4.

     “Depreciation” means, for each Fiscal Year or part thereof, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable for federal income tax
purposes with respect to an asset for such Fiscal Year or part thereof, except that if the Book
Value of an asset differs from its adjusted basis for federal

-5-

 

income tax purposes, the depreciation, amortization or other cost recovery deduction for such
Fiscal Year or part thereof shall be determined in accordance with Treasury Regulations Section
1.704-3(d).

     “Distribution Plan” shall have the meaning ascribed to it in Section 10.2(a) hereof.

     “Effective Date” shall mean the date of this Agreement.

     “ERISA” means the Employment Retirement Income Security Act of 1974, as amended.

     “Excess Losses” shall have the meaning ascribed to it in Section 4.2(c)(i) hereof.

     “Excluded Assets” shall have the meaning ascribed to it in Section 3.10 hereof.

     “Fiscal Year” means the fiscal year of the Company as defined in Section 2.10 hereof.

     “GAAP” means generally accepted accounting principles, as in effect from time to time.

     “Interest” means, with respect to any Member at any time, such Member’s entire
beneficial ownership interest in the Company at such time, including such Member’s Capital Account,
voting rights (if any), and right to share in Profits and Losses, all items of income, gain, loss,
deduction and credit, distributions and all other benefits of the Company as specified in this
Agreement, together with such Member’s obligations to comply with all of the terms of this
Agreement. With respect to any person other than a Member, “Interest” means the entirety of such
person’s rights and obligations with respect to the Company.

     “Salt Lake JOA” shall have the meaning ascribed in Section 2.3.

     “K-T, LLC” means Kearns-Tribune, LLC, a Utah limited liability company.

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     “Management Committee” shall have the meaning ascribed to it in Section 8.1.

     “Member Nonrecourse Debt” has the meaning ascribed to such term in Regulation Section
1.704-2(b)(4).

     “Member Nonrecourse Debt Minimum Gain” means the aggregate amount of gain (of whatever
character), determined for each Member Nonrecourse Debt, that would be realized by the Company if
it disposed of the Company property subject to such Member Nonrecourse Debt in a taxable
transaction in full satisfaction thereof (and for no other consideration) determined in accordance
with the provisions of Regulation Section 1.704-2(i)(5) for determining a Member’s share of minimum
gain attributable to a Member Nonrecourse Debt.

     “Member Nonrecourse Deductions” means the excess, if any, of (i) the net increase, if
any, in the amount of Member Nonrecourse Debt Minimum Gain during any Fiscal Year over (ii)
the aggregate amount of any distributions during such Fiscal Year of proceeds of a Member
Nonrecourse Debt that are allocable to an increase in Member Nonrecourse Debt Minimum Gain,
determined after application of Regulation Section 1.704-2(k).

     “Newspaper Agency Corporation” or “NAC” mean the Newspaper Agency Corporation, a Utah
corporation.

     “Non-Defaulting Member” shall have the meaning ascribed in Section 3.4.

     “Nonrecourse Deductions” shall have the meaning set forth in Regulation Section
1.704-2(b)(1).

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     “Nonrecourse Liability” shall mean any Company liability (or portion thereof) for
which no Member or a related person (as defined in Regulation Section 1.752-4(b)) bears the
economic risk of loss for that liability under Regulation Section 1.752-2.

     “Percentage Interest” means, for K-T, LLC, or its successor-in-interest, fifty-eight
percent (58%) and for DNPC, or its successor-in-interest, forty-two percent (42%), as may be
adjusted from time to time in accordance with this Agreement.

     “Profits” and “Losses” means, for each Fiscal Year or part thereof, the
taxable income or loss of the Company for such Fiscal Year determined in accordance with Code
Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be
stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
with the following adjustments:

               (i) any income of the Company that is exempt from federal income tax shall be added to such
taxable income or loss;

               (ii) any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as
such
pursuant to Regulation Section 1.704-1(b)(2)(iv)(i) shall be subtracted from such taxable income or
loss;

               (iii) any Depreciation for such Fiscal Year or part thereof shall be taken into account in
lieu of the depreciation, amortization and other cost recovery deductions taken into account in
computing such taxable income or loss;

               (iv) gain or loss resulting from any disposition of Company property with respect to which
gain or loss is recognized for federal income tax purposes shall be computed with reference to the
Book Value of the property disposed of, rather than the adjusted tax basis of such property;

-8-

 

               (v) in the event the Book Value of any Company asset is adjusted pursuant to Section (ii),
(iii) or (iv) of the definition of Book Value hereof, the amount of such adjustment shall be taken
into account as gain or loss from the disposition of such assets for purposes of computing Profits
and Losses; and,

               (vi) such taxable income or loss shall be deemed not to include any income, gain, loss,
deduction or other item thereof allocated pursuant to Section 4.2(c) or Section 4.3.

     “Regulations” means the income tax regulations promulgated under the Code by the
Department of the Treasury, as such regulations may be amended from time to time.

     “Reserved Matters” shall have the meaning ascribed in Sections 3.2, 7.2 and 8.1.

     “Substitute Member” shall have the meaning ascribed in Section 9.3.

     “Tax Matters Member” shall have the meaning ascribed in Section 6.3.

     “Transfer” means any sale, assignment, gift, hypothecation, pledge, encumbrance,
alienation, mortgage or other disposition, whether voluntary or by operation of law, of an Interest
or any portion thereof.

     “Transferee” means a purchaser, transferee, assignee (other than collateral assignees)
or any other person who takes, in accordance with the terms of this Agreement, an Interest in the
Company, and who thereby becomes bound by all the terms of this Agreement, regardless of whether
such person becomes a Substitute Member.

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ARTICLE II

The Limited Liability Company

     2.1 Formation. Articles of Organization for the Company were filed with the Utah
Division of Corporations and Commercial Code on May 23, 2006 in conformity with the Act. All of
the Members undertake hereafter to execute or cause to be executed from time to time all other
instruments, certificates, notices and documents, and to do or cause to be done all such filing,
recording, publishing and other acts, in each case, as may be necessary or appropriate from time to
time to comply with all applicable requirements for the operation and, when appropriate,
termination of a limited liability company in the State of Utah and all other jurisdictions where
the Company shall desire to conduct its business.

     2.2 Name. The name of the Company shall be “Newspaper Agency Company, LLC,” and its
business shall be carried on in this name with such variations and changes, if any, as may be
necessary or appropriate to comply with the requirements of the jurisdictions in which the
Company’s operations are conducted.

     2.3 Business Purpose. The purpose of the Company (the “Business Purpose”) is to carry
on any lawful business and to engage in any lawful act or activity for which a limited liability
company may be formed under the Act or other applicable laws of the State of Utah;
provided, however, that except as the Members shall approve otherwise, the
Company’s activities shall hereafter be limited to acting as the agent of the members as
contemplated by the Amendment and Restatement of Agreement dated as of July 1, 2006 which is
attached as Exhibit 1 to this Agreement (the “Salt Lake JOA”), as the same may hereafter be amended
and/or restated.

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     2.4 Registered Agent. The registered office of the Company in the State of Utah and
its registered agent for service of process on the Company in the State of Utah shall be as set
forth in the Articles of Organization of the Company, as filed with the Division of Corporations
and Commercial Code of the State of Utah, as the same may be amended from time to time.

     2.5 Term. The term of the Company shall continue until dissolved and liquidated in
accordance with Article X hereof.

     2.6 Principal Place of Business. The Company shall maintain its principal place of
business within the county of Salt Lake, Utah, at such location or locations as it may from time to
time select.

     2.7 Title to Company Property. Legal title to all property of the Company shall be
held and conveyed in the name of the Company.

     2.8 The Members. The name and place of residence of each Member is as follows:

	 	 	 	 	 
	 

	 	Name
	 	Address
	 
	 	 	 	 
	 

	 	Kearns-Tribune, LLC
	 	c/o Media News Group, Inc.
	 

	 	 	 	1560 Broadway, Suite 2100
	 

	 	 	 	Denver, CO 80202
	 
	 	 	 	 
	 

	 	Deseret News Publishing Company
	 	30 East 100 South
	 

	 	 	 	Salt Lake City, UT 84111

     2.9 Fiscal Year. Unless the Management Committee shall at any time otherwise
determine, the fiscal year and taxable year of the Company shall hereafter end on June
30th of each year unless otherwise required by Section 706 of the Code.

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     2.10 Representations and Warranties of the Parties. Each of the parties represents
and warrants that:

          (a) It is a corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization;

          (b) It has all requisite power and authority to enter into this Agreement; the execution and
delivery by such party of this Agreement and the consummation by such party of the transactions
contemplated hereby have been duly authorized by all necessary action on the part of such party;
and this Agreement has been duly and validly executed and delivered by such party and constitutes
(assuming the due and valid execution and delivery of this Agreement by the other party), the
legal, valid and binding obligation of such party, enforceable against it in accordance with its
terms;

          (c) There is no litigation pending or, to the best knowledge of such party, threatened against
such party which has a reasonable likelihood of materially and adversely affecting the operations,
properties or business of the Company or any of such party’s obligations under this Agreement;

          (d) The execution, delivery and performance by such party of this Agreement will not result in
a breach of any of the terms, provisions or conditions of any
agreement to which such party is a party which has a reasonable likelihood of materially and
adversely affecting the operations, properties or business of the Company or such party’s
obligations under this Agreement;

          (e) The execution and delivery by such party of this Agreement and the continuation of the
Company as a limited liability company does not require any filing by

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such party with, or approval
or consent of, any governmental authority which has not already been made or obtained; and,

          (f) It is acquiring or has acquired its Interest for its own account for investment, without a
view to, or for, resale in connection with the distribution thereof in violation of U.S. federal or
state securities laws, and with no present intention of distributing or reselling any part thereof.

          (g) The Company shall receive good and marketable title to the assets contributed by it.

     2.11 Survival of Representations and Warranties. The representations and warranties
of each of the parties contained in Section 2.10 of this Agreement are each made as of the
Effective Date of this Agreement and shall survive until the dissolution of the Company.

ARTICLE III

Capital Structure and Contributions

     3.1 Capital Contributions. In addition to the Member’s initial capital contributions,
in the event it shall from time to time be determined, in the manner set forth in Section 6.06 of
the Salt Lake JOA, that the Company shall hereafter require funds for any authorized business
purpose, all such funds, unless duly authorized hereunder to be obtained from outside sources, shall be
contributed by the Members in proportion to their Percentage Interests, when and as such additional
contributions may be duly authorized pursuant to the provisions of Section 6.06 of the Salt Lake
JOA. Any such authorization will be a Reserved Matter.

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     3.2 Failure to Make Capital Contributions. If either Member (the “Defaulting Member”)
fails to make any capital contribution required under this Agreement, the other Member (the
“Non-Defaulting Member”) may, as provided in Section 6.06 of the Salt Lake JOA, lend the amount
thereof to the Defaulting Member by contributing such amount to the Company on behalf of the
Defaulting Member. In any such event, as provided in Section 6.06 of the Salt Lake JOA, (i) no
distributions shall thereafter be made to the Defaulting Member by the Company pursuant to Section
5.2 hereof or otherwise until the full amount of each such loan that was made or incurred by the
Non-Defaulting Member, plus interest from the date of default to the date(s) of such repayment(s)
at the rate provided in Section 6.06 of the Salt Lake JOA, has been paid in full to the
Non-Defaulting Member by the Defaulting member and (ii) all such distributions which are thus
withheld by the Company from the Defaulting Member shall instead concurrently be paid by the
Company to the Non-Defaulting Member in repayment of such party’s loan(s). If more than one loan
is made by a Non-Defaulting Member in accordance with this Section 3.3, all repayments shall first
be applied to interest owing on the loans in the order in which the loans were made and then to
principal owing on the loans in the same order. All such loans, to the extent not earlier repaid
in the manner hereinafter provided, shall be due and payable in full on the third anniversary of the failure to make the
capital contribution which gave rise to such indebtedness.

     3.3 No Right to Return of Capital Contributions. No Member shall hereafter have the
right to have returned to it any portion of its Capital Contributions or be paid any distributions
from the Company, except as provided in Articles V or XI hereof.

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     3.4 Loans by Third Parties. Subject to any applicable provisions of Article VIII
hereof, the Company may borrow funds from or enter into credit, guarantee, financing or refinancing
arrangements for any purpose with any Member (provided that each of the Members is given reasonable
notice and is afforded a pro rata opportunity to participate therein) or from any other person,
upon such terms as the Management Committee determines appropriate.

ARTICLE IV

Capital Accounts; Allocation of Profits and Losses

     4.1 Capital Accounts. Each Member shall have a capital account (a “Capital Account”)
which account shall be (1) increased by the amount of (a) the Capital Contributions of such Member,
(b) the allocations to such Member of Profits and items of income or gain pursuant to Section 4.2,
and (c) any positive adjustment to such Capital Account by reason of an adjustment to the Book
Value of Company assets (but only to the extent not included in (b)), and (2) decreased by the
amount of (x) any cash and the Book Value of any property (net of liabilities secured by such
property that such Member is considered to assume or take subject to
under Code Section 752) distributed to such Member (including any distribution withheld from
such Member and applied to repay a loan to such Member pursuant to Section 3.4 hereof), (y) the
allocation to such Member of Losses and items of loss pursuant to Section 4.2, and (z) any negative
adjustment to such Capital Account by reason of an adjustment to the Book Value of the Company
assets (but only to the extent not covered in (y)). The provisions of this Agreement relating to
the maintenance of Capital Accounts are intended to comply with

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Regulation Section 1.704-1(b), and
shall be interpreted and applied in a manner consistent with such Regulation.

     4.2 Book Allocation.

          (a) In General. This Section 4.2 sets forth the general rules for book allocations of
Profits, Losses and similar items to the Members.

          (b) Profits and Losses. After giving effect to the special allocations provided in
Section 3 of the Salt Lake JOA and Section 4.2(c) hereof, Profits and Losses shall be allocated to
the Members in proportion to their Percentage Interests.

          (c) Special Rules. Notwithstanding the general allocation rules set forth in Section
4.2(b), the following special allocation rules shall apply under the circumstances described.

               (i) Limitation on Loss Allocations. The Losses allocated to any Member pursuant to
Section 4.2(b) with respect to any Fiscal Year shall not exceed the maximum amount of Losses that
can be so allocated without causing such Member to have an Adjusted Capital Account Deficit at the
end of such Fiscal Year. All Losses in excess of the limitation set forth in this Section
4.2(c)(i) (the “Excess Losses”) shall be allocated (1) first, to those Members who will not be
subject to this limitation, in the ratio
that their Percentage Interests bear to each other, and (2) second, any remaining amount to
the Members in the manner required by the Code and the Regulations.

               (ii) Qualified Income Offset. If in any Fiscal Year a Member unexpectedly receives an
adjustment, allocation or distribution described in Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5)
or (6), and such adjustment, allocation or distribution causes or increases an Adjusted Capital
Account Deficit for such Member, then, before

-16-

 

any other allocations are made under this Agreement
except for allocations under 4.2(c)(iii), (iv), (v) and (vi) of this Agreement (which shall be made
before any other allocations under this Agreement) or otherwise, such Member shall be allocated
items of income and gain (consisting of a pro rata portion of each item of Company income,
including gross income and gain) in an amount and manner sufficient to eliminate such Adjusted
Capital Account Deficit as quickly as possible. This Section 4.2(c)(ii) is intended to comply with
the qualified income offset requirement of Regulation Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

               (iii) Company Minimum Gain Chargeback. If there is a net decrease in Company Minimum
Gain during any Fiscal Year, except as otherwise provided in Regulation Section 1.704-2(f), each
Member shall be allocated items of income and gain for such Fiscal Year (and, if necessary, for
subsequent Fiscal Years) in proportion to, and to the extent of, such Member’s share of the net
decrease in Company Minimum Gain during such Fiscal Year determined in accordance with Regulation
Section 1.704-2(g). This Section 4.2(c)(iii) is intended to comply with the minimum gain
chargeback requirement of Regulation Section 1.704-2(f) and the
ordering rules set forth in Regulation Section 1.704-2(j) and shall be interpreted
consistently therewith.

               (iv) Member Nonrecourse Debt Minimum Gain Chargeback. If there is a net decrease in
Member Nonrecourse Debt Minimum Gain during any Fiscal Year, then, except as otherwise provided in
Regulation Section 1.704-2(i)(4), each Member who has a share of Member Nonrecourse Debt,
determined in accordance with Regulation Section 1.704-2(i)(5), shall be allocated items of income
and gain for such

-17-

 

Fiscal Year (and, if necessary, for subsequent Fiscal Years) in proportion to,
and to the extent of, such Member’s share of the net decrease in Member Nonrecourse Debt Minimum
Gain during such Fiscal Year determined in accordance with Regulation Section 1.704-2(i)(4). This
Section 4.2(c)(iv) is intended to comply with the chargeback of partner nonrecourse debt minimum
gain requirement of Regulation Section 1.704-2(i)(4) and the ordering rules set forth in Regulation
Section 1.704-2(j) and shall be interpreted consistently therewith.

               (v) Member Nonrecourse Deductions. Member Nonrecourse Deductions shall be allocated
among the Members in accordance with the ratio in which the Members share the economic risk of loss
for the Member Nonrecourse Debt that gave rise to those deductions. This allocation is intended to
comply with the requirements of Regulation Section 1.704-2(i) and shall be interpreted consistently
therewith.

               (vi) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be
allocated to the Members in proportion to their Percentage Interests.

               (vii) Limited Effect and Interpretation. The special rules set forth in Sections
4.2(c)(i), (ii), (iii), (iv), (v) and (vi) (the “Regulatory Allocations”) shall be applied only to
the extent required by applicable Regulations for the resulting allocations provided for in this
Section 4.2, taking into account such Regulatory Allocations, to be respected for federal income
tax purposes. The Regulatory Allocations are intended to comply with the requirements of
Regulation Sections 1.704-1(b), 1.704-2 and 1.752-1 through 1.752-5 and shall be interpreted and
applied consistently therewith.

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               (viii) Curative Allocations. The Regulatory Allocations may not be consistent with
the manner in which the Members intend to divide the Company Profits, Losses and similar items.
Accordingly, Profits, Losses and other items will be reallocated among the Members in a manner
consistent with Regulations Section 1.704-1(b) and 1.704-2 so as to negate as rapidly as possible
any deviation from the manner in which Company Profits, Losses and other items are intended to be
allocated among the Members pursuant to Section 4.2(b) that is caused by the Regulatory
Allocations.

               (ix) Change in Regulations. If the Regulations incorporating the Regulatory
Allocations are hereafter changed or if new Regulations are hereafter adopted, and such changed or
new Regulations, in the opinion of independent tax counsel for the Company, make it necessary to
revise the Regulatory Allocations or provide further special allocation rules in order to avoid a
significant risk that a material portion of any allocation set forth in this Article IV would not
be respected for federal income tax purposes, the Members shall negotiate in good faith any
amendments to this Agreement as, in the opinion of such counsel, are necessary or desirable, taking
into account the interests of the Members as a whole and all other relevant factors, to avoid or
reduce significantly such risk to the extent possible without materially changing the amounts
allocable and distributable to any Member pursuant to this Agreement.

               (x) Change in Members’ Interests. If there is a change in any Member’s
Percentage
Interest during any Fiscal Year, allocations among the Members shall be made in accordance with
their Percentage Interests from time to time during such Fiscal Year in accordance with Code
Section 706, using the closing-of-the-books

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method, except that Depreciation shall be deemed to
accrue ratably on a daily basis over the entire Fiscal Year during which the corresponding asset is
owned by the Company.

     4.3 Tax Allocations.

          (a) In General. Except as set forth in Section 4.3(b), allocations for tax purposes
of items of Profit, Loss and other items of gain, deduction, credit and distribution therefor,
shall be made in the same manner as allocations for book purposes set forth in Section 4.2(b).
Allocations pursuant to this Section 4.3 are solely for purposes of federal, state and local income
taxes and shall not affect or in any way be taken into account in computing, any Member’s Capital
Account or share of Profits, Losses, other items or gain, deduction and distribution pursuant to
any provision of this Agreement.

          (b) Special Rules.

               (i) Elimination of Book/Tax Disparities. In determining a Member’s allocable share of
Company taxable income, the Member’s allocable share of each item of Profits and Losses shall be
properly adjusted to reflect the difference
between such Member’s share of the adjusted tax basis and the Book Value of Company assets
used in determining such item. Items of depreciation, amortization, and gain or loss with respect
to any contributed property, or with respect to revalued property where Company property is
revalued pursuant to Regulation Section 1.704-1(b)(2)(iv)(f), shall be allocated to the Members
under the remedial method as provided in Regulation Section 1.704-3(d). This Section 4.3(b)(i) is
intended to comply with the requirements of Code Section 704(b) and Section 704(c) and Regulation
Sections

-20-

 

1.704-1(b)(2)(iv)(d)(3) and 1.704-3 and shall be interpreted and applied consistently
therewith.

               (ii) Allocation of Items Among Members. Except as otherwise provided in Section
4.3(b)(i), each item of income, gain, loss and deduction and all other items governed by Code
Section 702(a) shall be allocated among the Members in proportion to the allocation of Profits,
Losses and other items to the Members hereunder, provided that any gain recognized from any
disposition of a Company asset that is treated as ordinary income because it is attributable to the
recapture of any depreciation or amortization shall be allocated among the Members in the same
ratio as the prior allocations of tax depreciation or amortization, but not in excess of the gain
otherwise allocable to each Member.

               (iii) Tax Credits. Any tax credits shall be allocated among the Members in accordance
with Regulation Section 1.704-1(b)(4)(ii), unless the applicable Code provision shall otherwise
require.

          (c) Conformity of Reporting. The Members are aware of the income tax consequences of
the allocations made by this Section 4.3 and hereby agree to be
bound by the provisions of this Section 4.3 in reporting their shares of Company profits,
gains, income, losses, deductions, credits and other items for income tax purposes.

          (d) Excess Nonrecourse Liabilities. For purposes of determining a Member’s
proportionate share of the excess nonrecourse liabilities of the Company within the meaning of
Regulation Section 1.752-3(a)(3), the Members’ interests in the Company Profits are in proportion
to their Percentage Interests.

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ARTICLE V

Distributions

     5.1 In General. Except as otherwise provided herein and in Section 3 of the Salt Lake
JOA, all distributions shall be made in proportion to the Members’ Percentage Interests.

     5.2 Periodic Distributions. Periodic distributions of cash flows from the Company’s
operations shall be made in the manner set forth in Sections 3 and 4 of the Salt Lake JOA, subject
to the provisions of Section 3.3 hereof relating to payments on loans made by a Non-Defaulting
Member. Subject to the foregoing, all distributions shall be made in proportion to the Members’
Percentage Interests in the manner provided in Sections 3 and 4 of the Salt Lake JOA.

ARTICLE VI

Accounting and Reports

     6.1 Books and Records.

          (a) The Company shall maintain or cause to be maintained at an office of the Company this
Agreement and all amendments thereto and full and accurate books of the Company showing all
receipts and expenditures, assets and liabilities,
Profits and Losses, and all other books, records and information required by the Act as
necessary for recording the Company’s business and affairs. The Company’s books and records shall
be maintained in accordance with GAAP except to the extent otherwise provided hereunder for
purposes of maintaining Capital Accounts in accordance with Article IV hereof and calculating the
Profits or Losses charged or credited thereto. Such documents, books and records shall be
maintained at such

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office or such designated successor office until six (6) years after the
termination and liquidation of the Company.

          (b) Each Member shall, upon 24 hours’ advance notice, have the right at reasonable times
during usual business hours to inspect the facilities of the Company, to observe the Company’s
operations and to examine and make copies of the books of account including books and records of
the Company relating to the reserves, assets, liabilities and expenses of the Company and
expenditures by the Management Committee on behalf of the Company; provided,
however, that none of the foregoing activities shall be conducted in a manner that
unreasonably interferes with the Company’s operations or business or the Management Committee’s
management thereof. Such right may be exercised through any agent or employee of a Member
designated in writing by it or by an independent public accountant, engineer, attorney or other
consultant so designated. The Member making the request shall bear all expenses incurred in any
inspection or examination made at such Member’s behest. Should any inspection or examination
disclose any errors or improper charges, the Management Committee shall make, or cause to be made,
appropriate adjustments therefor.

     6.2 Reports to Members.

          (a) Each Member shall be entitled: (i) promptly upon their availability and in any event
within eight (8) business days after the end of each quarterly period in each fiscal year, to an
unaudited balance sheet and unaudited statements of income or loss and cash flows for the quarterly
period then ended and for the fiscal year-to-date, and (ii) promptly upon their availability and in
any event within sixty (60) days after the

-23-

 

end of each fiscal year, to an audited balance sheet of
the Company as at the end of such fiscal year, and audited statements of income or loss and cash
flows for such fiscal year, all in reasonable detail and accompanied by an opinion thereon of the
Company’s independent certified public accountants, such balance sheet and statements of income or
loss and cash flows to include a comparison of the current fiscal year with the fiscal year
immediately preceding, if any.

          (b) The Company shall, in addition, provide to each Member such information as may be
necessary for it to comply with applicable financial reporting requirements of any competent
governmental authorities or agencies or of any stock exchange on which the shares of any such
Member or Affiliate are listed including, without limitation, the New York Stock Exchange and the
U.S. Securities and Exchange Commission, and such information regarding the financial position,
business, properties or affairs of the Company as a Member may reasonably request.

     6.3 Tax Matters Member/Annual Tax Returns.

          (a) K-T, LLC (or its successor-in-interest) is hereby designated hereafter to serve as the
“Tax Matters Member” for federal income tax purposes
pursuant to Section 6231 of the Code and is authorized to do whatever is necessary to qualify
as such. K-T, LLC shall serve as the Tax Matters Member until the end of the fourth taxable year
following the Effective Date (the “Initial Tax Matters Term”). After the end of the Initial Tax
Matters Term, DNPC (or its successor-in-interest) shall be the Tax Matters Member for the next four
taxable years of the Company. Thereafter, K-T, LLC and DNPC shall serve alternate four year terms
as the Tax Matters Member, starting again with K-T, LLC. If a Member resigns as the Tax Matters
Member, the

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Member who is next due to serve as the Tax Matters Member shall serve out the remainder
of the term of the Member who resigned. The Tax Matters Member shall, as soon as practicable under
the circumstances, inform each Member of all tax-related matters that are, or have the reasonable
potential to become, material to one or both Members that come to its attention as Tax Matters
Member.

          (b) Notwithstanding the designation of a Member as the Tax Matters Member:

               (i) any right or power delegated by the Code to the Tax Matters Member may be exercised by
Absolute Majority Vote of the Management Committee;

               (ii) no tax return, tax form or (except as provided in Section 6.5) any election shall be
filed with or sent to the U.S. or any foreign government without the approval of the Management
Committee. If an unresolvable dispute arises over any such return, form or letter of election, the
Company’s firm of independent accountants or another firm of independent accountants, as selected
by the Management Committee (by Absolute Majority Vote), shall be engaged to settle such dispute
and the determination of the firm so selected shall be final;

               (iii) each Member shall have the right to review all tax returns, tax forms, letters and other
tax related documents of the Company and all information necessary to support any item on any tax
return, tax form, letter or other tax-related document of the Company at least 30 days prior to the
filing thereof.

          (c) The Tax Matters Member shall prepare or cause to be prepared all tax or informational
returns required of the Company and/or relating to the Members, which returns shall be reviewed in
advance of filing by the Member’s and the

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Company’s independent accountants and shall be approved
for filing and/or distribution to the Members by the Management Committee. Within ninety (90) days
after the end of each taxable year, the Tax Matters Member shall cause to be furnished to each
Member such information in the possession of the Tax Matters Member or its Affiliate as may be
requested by such Member as necessary to timely fulfill such Member’s federal, state, local and
foreign tax obligations, including Form K-1, or any similar form as may be required by the Code or
the Internal Revenue Service (the “IRS”) or, to the extent any such information is not in the Tax
Matters Member’s possession, the Tax Matters Member shall take all reasonable steps necessary to
have such information provided to the requesting Member. The Tax Matters Member and the Management
Committee shall consider in good faith, consistent with Section 6.3(a) and (b) hereof, any comments
of the Members with respect to such Form K-1 or similar form made within thirty (30) days of the
Member’s receipt of a copy thereof. The Members shall file their corporate or partnership returns
in a manner consistent with the Company tax and information returns.

          (d) The Tax Matters Member shall, consistent with the Business Plan, use its best efforts to
do all acts and take whatever steps are required to maximize, in the aggregate, the federal, state
and local income tax advantages available to the Members and shall defend all tax audits and
litigation with respect thereto. The Tax Matters Member shall maintain the books, records and tax
returns of the Company in a manner consistent with the acts, elections and steps taken by the
Company.

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          (e) The Tax Matters Member shall be reimbursed for all out-of-pocket expenses reasonably and
appropriately incurred in connection with the performance of its duties as such.

     6.4 Actions in Event of Audit. If any tax audit of any of the Company’s books and
records shall occur, each Member shall, at its own expense, be offered an appropriate opportunity
to participate in such audit. No Member may contest, settle or otherwise compromise assertions of
the auditing agent which may be adverse to the Company or the other Member without the approval of
the Management Committee. The Management Committee may, if it determines that the retention of
accountants or other professionals would be in the best interests of the Company, retain such
accountants or other professionals, to assist the Company in any such audits. Neither the Tax
Matters Member nor any other Member shall have any obligation to provide funds for or in connection
with such audit, and the taking of any action and the incurring of any expense by the Management
Committee or the Members in connection with any such audit, except to the extent required by law,
is a matter in the sole discretion of the Management Committee or the Members, as the case may be.

     6.5 Tax Election. The Tax Matters Member shall, at the request of both Members, cause
the Company to file an election under Code Section 754 and the Regulations thereunder and a
corresponding election under the applicable section of state and local law.

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ARTICLE VII

Actions by Members

     7.1 Meetings/Actions by Members. Meetings of the Members shall hereafter be held at
the place and time designated from time to time by any Member upon at least five (5) business days
prior written notice to the other Member. Subject to the provisions of Section 7.3 hereof, such
meetings may be in person or by telephone. K-T, LLC and DNPC (or their successors-in-interest),
whether present in person or by proxy, shall constitute a quorum for the transaction of business at
any meeting of the Members. Subject to the provisions of this Agreement, any matter brought before
a meeting of the Members shall be decided by unanimous vote of the Members present at a duly
constituted meeting at which a quorum is present, except as otherwise expressly provided in this
Agreement. The Chairman of the Management Committee (if present in person) shall preside at all
meetings of the Members. In the absence of the Chairman of the Management Committee, such other
person as shall be selected by the unanimous vote of those in attendance shall preside over a
meeting of the Members. The Company shall promptly deliver written notice of any action taken at a
meeting to any Member not present at such meeting.

     7.2 Certain Matters Requiring Approval of the Members. “Reserved Matters” are those
actions requiring the written approval of all of the Members. In addition to Reserved Matters
identified as such elsewhere in this Agreement, the following shall be considered Reserved Matters:

          (a) admit any new Member or Substitute Member to the Company and determine the terms upon
which such new Member or Substitute Member is to be admitted;

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          (b) require additional capital contributions or loans from the Members except as otherwise
expressly contemplated in Section 3.2 hereof;

          (c) sell, lease or otherwise dispose of any material assets of the Company,

          (d) commit or cause the Company to acquire all or substantially all of the capital stock or
all or substantially all of the assets of any person or business;

          (e) cause the Company to create, or enter into, as applicable, any consolidation, partnership,
joint venture, association, trust or other business entity;

          (f) merge or consolidate with any person;

          (g) except as permitted pursuant to Article XI of this Agreement, dissolve or liquidate the
Company;

          (h) authorize the issuance of any securities by the Company, except as otherwise may be
expressly permitted in this Agreement;

          (i) adopt or approve any amendment to this Agreement;

          (j) add to or change the Business Purpose of the Company;

          (k) enter into any line of business not contemplated by the Company’s Business Purpose;

          (l) any Reserved Matters as defined in the Salt Lake JOA.

     7.3 Action by Consent. Any action permitted or required to be taken on behalf of the
Company at any meeting of the Members pursuant to Section 7.2 of this Agreement may be taken
without a meeting, by written consent signed by the Members required to approve such action,
provided that each Member is given notice of such

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proposed action at least 48 hours prior
to the taking of such action and is provided a written copy of the action promptly after its
adoption.

     7.4 Limitation on Rights of Defaulting Member. Notwithstanding anything in this
Agreement to the contrary, a Defaulting Member, as defined in Section 3.4 hereof, shall, during the
continuance of the default, have none of the rights of a Member under this Article VII, and all
rights of Members under this Article VII relating to any such matter shall, during the continuance
of such default, be exercised solely by the Non-Defaulting Member.

ARTICLE VIII

Management Committee

     8.1 The Management Committee. Except for matters which are reserved under the terms
of this Agreement, by the Articles of Organization or by the Act to be exercised, done or approved
by the Members, the business and affairs of the Company shall hereafter be managed under
the direction and authority of the Management Committee, as defined and instituted, in the
manner provided in Section 2.02 of the Salt Lake JOA.

          8.2 Limitation of Rights of Defaulting Member. Notwithstanding anything in this
Agreement to the contrary, the Managers appointed by a Defaulting Member shall, during the
continuance of the default, have no rights as Managers under this Article VIII, and all rights of
the Managers under this Article VIII shall, during the continuance of such default, be exercised
solely by the Managers appointed by the Non-Defaulting Member.

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          8.3 Officers, etc. A Chairman and Vice-Chairman of the Management Committee, other
officers, and an Executive Committee, shall be appointed and function as contemplated in Sections
2.03 through 2.06 of the Salt Lake JOA.

ARTICLE IX

Transfer of Company Interests; Additional and Substitute Members

     9.1 Prohibited Transfers. Except as otherwise provided by law, all of the following
prohibitions and restrictions on Transfers shall apply:

          (a) No Transfer may be made of any Member’s Interest except to the extent permitted by Section
2.01 of the Salt Lake JOA. :

          (b) No Transfer may be made of only a part of a Member’s Interest. The intent of the Members
is that there will never be more than two Members.

          (c) Any Transfer not prohibited in subsection (a) above may be made only upon compliance with
the provisions of this Agreement, including, to the extent by its terms applicable, the provisions
of Section 9.2 hereof.

     Any Transfer in violation of this Article IX shall be null and void as against the Company and
any and all other persons, and the transferring Member shall be liable to the Company and the other
Member for all damages that they may sustain as a result of such attempted Transfer.

     9.2 Permitted Transfers by Members. With respect to any Transfer by a Member of its
Interest that is not prohibited under Section 9.1, no such Transfer, except a Transfer pursuant to
Section 9.1 herein or a Transfer by either Member to the other Member, shall hereafter be made
unless:

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          (a) the Member desiring to consummate such Transfer (the “Assigning Member”), and the
prospective Transferee shall each execute, acknowledge and deliver to the Company such instruments
of transfer and assignment with respect to such Transfer and such other instruments as may be
reasonably satisfactory in form and substance to the Management Committee;

          (b) the Transfer shall not violate any federal or state securities laws or other laws;

          (c) the Transfer shall not cause any nonrecourse debt that is not already Member Nonrecourse
Debt to become Member Nonrecourse Debt;

          (d) the Transfer shall not result in or create a “prohibited transaction” as defined in
Section 4975(c) of the Code, or result in or cause the Company or any Member, or any Affiliate of a
Member, to be liable for any excise tax under Chapter 42 of the Code, or result in or cause any
Interest or the Company’s assets to become an asset of an employee benefit plan (as defined in
Section 3(3) of ERISA);

          (e) the Transfer shall not cause any violation of or an event of default under, or result in
acceleration of any indebtedness under, any note, mortgage, loan, or similar instrument or document
to which the Company is a party;

          (f) the Transfer shall not cause a material adverse tax consequence to the Company or any of
the Members, including but not limited to any material adverse tax consequence resulting, directly
or indirectly, from the termination of the Company under Section 708 of the Code; and,

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          (g) the Transfer, except a Transfer from one Member to the other Member, shall not cause the
Company to be classified as an entity other than a partnership for purposes of the Code.

     9.3 Substitute Member. A Transferee of the entirety of an Interest (other than a
Transferee pursuant to an Involuntary Transfer pursuant to Section 9.4 of this Agreement) who
satisfies the conditions set forth in Section 9.2 hereof shall hereafter have the right to become a
Member in place of the Assigning Member (a “Substitute Member”), but only if all of the following
conditions are satisfied:

          (a) the fully executed and acknowledged written instrument of assignment that has been filed
with the Company sets forth a statement of the intention of the Assigning Member that the
Transferee become a Substitute Member in its place;

          (b) the Transferee executes, adopts and acknowledges this Agreement (as it may be amended) and
agrees to assume all the obligations of the Assigning Member;

          (c) any costs of the Transfer incurred by the Company shall have been reimbursed by the
Assigning Member or the Transferee to the Company.

     Any Transferee that does not become a Substitute Member shall not be entitled to exercise any
rights of a Member or be entitled to any interest in the Company other than such rights as the
transferor may have held in the Profits, Losses and/or capital of the Company.

     9.4 Involuntary Transfers.

          (a) Upon any Transfer hereafter of a Member’s Interest due to bankruptcy, or other insolvency,
involuntary dissolution or liquidation of a Member, or

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foreclosure or other exercise of any
remedies by a party holding a security interest in the Interest of a Member (each, an “Involuntary
Transfer”), or upon the occurrence of a “Bankruptcy Event” with respect to any Member, neither such
Member nor any Transferee of a Member’s Interest as a result of an Involuntary Transfer or a
Bankruptcy Event shall thereafter be entitled to exercise any rights of a Member, nor shall either
thereby or thereafter be entitled to any Interest in the Company other than such rights as such
Member may have held, immediately prior to the occurrence of the Involuntary Transfer or Bankruptcy
Event, in the Profits, Losses and/or capital of the Company. A Transferee by Involuntary Transfer
of a Member’s Interest or a result of a Bankruptcy Event shall not become a Substitute Member
unless the remaining Member consents. Subject to subsection (c) below, the Company may elect to
purchase the Interest which is the subject of an Involuntary Transfer or which is held by a Member
that has suffered the occurrence of a Bankruptcy Event. Upon such election by the Company, the
holder of such Interest shall transfer such Interest to the Company free and clear of all liens
and encumbrances and shall be entitled to receive an amount equal to the fair market value of
such Interest. The amount thus to be paid by the Company shall be paid in full in cash within
sixty (60) days of the Company’s election to acquire such Interest. The Member whose Interest was
the subject of the Involuntary Transfer or who suffered the occurrence of the Bankruptcy Event
shall remain fully liable to the Company for all such Member’s outstanding debts, obligations and
liabilities to the Company incurred while it was a Member.

          (b) (i) For the purposes of calculating the amount to be paid pursuant to the preceding
sub-paragraph, “fair market value” as used therein shall be

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the amount that would be paid for the
Interest in the Company as a going concern (taking into consideration the effects of the
Involuntary Transfer or Bankruptcy Event), on a consolidated basis, by a willing buyer to a willing
seller; provided, however, notwithstanding anything herein to the contrary, the entire negative
effect of the Involuntary Transfer or Bankruptcy on the fair market value of the Company shall be
charged to the Interest being valued. The Member who has suffered the Bankruptcy Event or the
Transferee whose Interest is the subject of the Involuntary Transfer, as the case may be, and the
remaining Member may mutually agree as to the fair market value of the Interest in question. If
such Member or Transferee and the remaining Member are unable to agree on such fair market value
within fifteen (15) days of the remaining Member’s election to purchase the subject Interest, then
fair market value shall be determined pursuant to Section 9.4(b)(ii) by two independent qualified
appraisers, one to be appointed by the Member or Transferee and one to be appointed by the
remaining Member.

               (ii) The two independent appraisers shall be appointed within fifteen (15) days after
receipt
by such Member or Transferee of written notice from the remaining Member of its decision to
determine fair market value by appraisal. If either side fails to appoint an appraiser within such
period, then its right to do so shall lapse and the appraisal made by the one independent appraiser
who is timely appointed shall be the fair market value. If two appraisals are made, and if the two
appraised values differ by less than 15% of the higher appraised value, fair market value shall be
the average of the two appraisals, and if the two appraised values differ by more than 15% of the
higher appraised value, the two appraisers shall jointly select a third appraiser

-35-

 

and, the fair
market value shall be the average of the two of the three appraisals that are closest together in
amount. All appraisals shall be made within sixty (60) days of appointment of an appraiser, and
written notice of the results of such appraisals shall be given to all parties within such 30-day
period. The fair market value of the Company shall be determined in its entirety as a going
concern, with such Member or Transferee receiving a proportionate part of such total value based
upon its Percentage Interest; provided, however, notwithstanding anything herein to the contrary,
the entire negative effect of the Involuntary Transfer or Bankruptcy on the fair market value of
the Company shall be charged to the Interest of such Member or Transferee whose Interest is being
purchased. In making any appraisal hereunder, all debts and liabilities shall be taken into
account. Each party shall pay the fees of the appraiser selected by it, and each side shall share
evenly the fees of the third appraiser, if any.

          (c) Notwithstanding anything in this Section 9.4 to the contrary, the Company shall have the
right, without liability, to rescind its election to purchase the
Interest which is the subject of an Involuntary Transfer or which is held by a Member that has
suffered the occurrence of a Bankruptcy Event at any time within fifteen (15) days after the fair
market value of the Company has been determined. Notwithstanding anything in this Agreement to the
contrary, all decisions by the Company that are contemplated by this Section 9.4 shall be made
without any participation by the Member who has suffered the Bankruptcy Event of by any Manager
subject to its appointment.

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ARTICLE X

Dissolution and Liquidation

     10.1 Dissolution. Except as provided in Section 10.2, the Company shall be dissolved
upon the first to occur hereafter (each a “Dissolution Event”) of:

          (a) The sale, transfer or other disposition of all or substantially all the assets of the
Company, including by condemnation or eminent domain;

          (b) The execution of an agreement in writing among all the Members to dissolve the Company; or

          (c) The entry of a decree of judicial dissolution of the Company.

For purposes of this Agreement, a Dissolution Event shall not be deemed to include any other event,
including, but not limited to, any event specified under the Act as affecting the dissolution of a
limited liability company formed under the Act.

     10.2 Closing of Affairs.

          (a) Except as otherwise contemplated in this Agreement, upon the occurrence of a Dissolution
Event, the Members will meet and use their best efforts to
develop a just and equitable plan for discontinuing and dissolving the Company and, to the
extent both Members then continue to own and publish their respective newspapers (The Salt Lake
Tribune and Deseret Morning News), for distributing the Company’s assets in kind
between the Members (after collection of all receivables and payment of all indebtedness and
liabilities of the Company and all costs of dissolution and liquidation), so as, to the extent
practicable, to enable the Members to continue publication of The Salt Lake Tribune and
Deseret Morning News, respectively, independently of the Company (a “Distribution Plan”),
in the manner set forth in Section 13 of the Salt Lake JOA. If the Members agree on a Distribution
Plan, the assets of the

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Company shall be distributed in accordance with the Distribution Plan, and
the Company shall thereupon be dissolved. Except as provided in the Distribution Plan and upon
effective distribution of assets by the Company pursuant thereto, no Member shall have any separate
right, title or interest in or to any asset of the Company.

          (b) If the Members are unable to agree upon a Distribution Plan then, subject to the right of
either party to petition for a court appointed receiver, as provided in Section 13 of the Salt Lake
JOA, the Members shall commence to close the affairs of the Company, including payment of the
Company’s liabilities and making such distributions to the Members as may be authorized hereunder
and to terminate the existence of the Company, in each instance in the manner as the Members may
reasonably determine to be appropriate. Upon complete liquidation of the Company’s property and
compliance with the distribution provisions set forth in Section 10.2(c) hereof, the Company shall
cease its existence, and the Management Committee shall
cause to be executed, acknowledged and filed all certificates necessary to terminate the
Company.

          (c) In liquidating the Company, the assets of the Company shall be applied to the extent
permitted by the Act in the following order of priority:

               (i) First, to pay the costs and expenses of the closing of the affairs and liquidation
of the Company;

               (ii) Second, to pay the matured debts and liabilities of the Company to third parties;

               (iii) Third, to establish reserves adequate to meet any and all contingent or
unforeseen liabilities or obligations of the Company, provided that at the

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expiration of such
period of time as the Members may deem advisable, the balance of such reserves remaining after the
payment of such contingencies or liabilities shall be distributed as hereinafter provided;

               (iv) Fourth, to pay the matured debts and liabilities of the Company to the Members
including those arising pursuant to Section 3.4 of this Agreement; and

               (v) Fifth, to all Members in proportion to each Member’s positive Capital Account
balance at the time of the distribution of the assets.

     10.3 Orderly Liquidation. A reasonable time shall be allowed for the orderly
liquidation of the assets of the Company and the discharge of liabilities so as to minimize the
losses normally attendant upon a liquidation.

     10.4 Deficit Upon Liquidation. Except to the extent otherwise provided in this
Agreement or by law with respect to third-party creditors of the Company, upon liquidation, none of
the Members shall be liable to the Company for any deficit in its Capital Account, nor shall such
deficits be deemed assets of the Company.

ARTICLE XI

Amendments to Agreement

     Amendments to this Agreement and to the Articles of Organization of the Company shall be
approved in writing by all of the Members. An amendment shall become effective as of the date
specified therein, or if none is specified as of the date of such approval or as otherwise provided
in the Act.

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ARTICLE XII

Indemnification

     12.1 Remedies for Breach. Except as otherwise limited by this Agreement, each Member
shall have such remedies at law or in equity or as provided in this Agreement for breach of the
representations, warranties, obligations, and covenants of this Agreement by any other Member.

     12.2 Limitation of Liability. Notwithstanding any other provision of this Agreement,
except with respect to actions, demands, proceedings or suits of third parties for which
indemnification is required pursuant to Section 12.3, no Member shall be liable to any other Member
or entity claiming by or through any other Member for any lost profits or any special, incidental,
consequential, or punitive loss or damage arising out of this Agreement or any breach
thereof or any actions or omissions in connection therewith or as the result of any investment
in the Company by any Member or any rights as an investor or Member.

     12.3 Indemnification by Members for Breach of Representations or Warranties.

          (a) Indemnification. Each Member (the “Indemnifying Member”) agrees to defend and
hold harmless the Company, any other Members and their affiliates, officers, directors, trustees,
employees and agents, and any manager, officer, employee, or agent of the Company (each an
“Indemnified Party”) from and against any action, demand, proceeding or suit, whether civil,
criminal, administrative or investigative (an “Action”) threatened or brought against such
Indemnified Party by a third party who is not the Company or a Member or an Affiliate of any Member
or anyone claiming by or through the Company or a Member, and based on a claim which

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if true would
mean that the Indemnifying Member had breached representations or warranties made by such
Indemnifying Member in Section 2.10 of this Agreement; provided, that such indemnification
shall be limited to (i) all costs of defense (including, but not limited to, reasonable
investigation costs, reasonable attorney fees and all other reasonable costs of defending the
Action at all adjudicatory levels), (ii) any monetary amounts required to settle such Action or to
satisfy any judgment, order, award, or similar requirement entered in any such Action, (iii) the
costs and expenses incurred by the Company in complying with, or avoiding by settlement, any
injunctive or other relief sought by the party bringing such Action, and (iv) any actual monetary
damages incurred by each Member other than the Indemnifying Member.

          (b) Notice and Defenses of Claims.

               (i) The Indemnified Party shall give prompt written notice to the Indemnifying Member of each
Action that, in the opinion of the Indemnified Party, is likely to give rise to a right of
indemnification under this Section 12.3; provided, however, that failure to give such
notice of an Action shall not affect the obligations of the Indemnifying Member under this Section
12.3 except to the extent the Indemnifying Member has demonstrated actual damage caused by such
failure. Such notice shall describe the Action in reasonable detail and shall indicate the amount
(estimated, if necessary) of the loss that has been or may be suffered by the Indemnified Party.

               (ii) Subject to the provisions of this Section 12.3, the Indemnifying Member shall have the
right to control and conduct at its own expense the defense and settlement of any such Action with
counsel reasonably satisfactory to the Indemnified Party, provided, however, that the
consent of all the Members (other than

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the Indemnifying Member) is required for any settlement
which would materially affect the ability of the Company to engage in the business contemplated in
its current Business Plan. Each Indemnified Party may also retain counsel at its own expense to
participate in the defense of the Action.

               (iii) After notice from the Indemnifying Member of its election to control and conduct the
defense and settlement of such Action, the Indemnifying Member shall not be liable to the
Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in
connection with defense and settlement of such Action. The Indemnified Party shall cooperate with
the Indemnifying Member in connection with any such Action by making personnel, books and records
(to the extent not inconsistent with any applicable legal privilege) relevant to the Action
available to the Indemnifying Member, and grant such authorization as may reasonably be necessary
in connection with the defense and settlement of any such Action.

               (iv) In the event that the Indemnifying Member does not wish to control and conduct the
defense and settlement of any such Action, or any other Member (other than the Indemnifying Member)
does not receive from the Indemnifying Member reasonable assurances (when requested by such other
Member) that the Indemnifying Member will have the financial resources to defend the Action and
fulfill its indemnification obligations hereunder, the Company shall have the right to control and
conduct the defense and settlement of the Action without the participation of the Indemnifying
Member, and will not be required to obtain the consent of the Indemnifying Member to any settlement
of such Action.

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               (v) The Indemnified Party shall use its reasonable efforts consistent with sound business
practice to mitigate the losses or damages for which indemnification is sought hereunder.

     12.4 Indemnification by Company.

          (a) Except as provided in subsection (k) below, the Company shall indemnify any person or
entity that was or is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the Company), by reason of the fact that such person or
entity is or was a member of the Management Committee, a Member, or officer or is or was serving at
the request of the Company as a director, officer, employee, representative or agent of another entity, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person or entity in connection with such action, suit or proceeding if
such person or entity acted in good faith and in a manner such person or entity reasonably believed
to be in or not opposed to the best interest of the Company, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his, her or its conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that such person or entity did not act in good faith and in a manner which he, she or
it reasonably believed to be in or not opposed to the best interests of the Company, and, with
respect to any criminal action or proceeding, had reasonable cause to believe that his, her or its
conduct was unlawful.

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          (b) Except as provided in subsection (k) below, the Company shall indemnify any person or
entity that was or is a party or is threatened to be made a party to any threatened, pending or
completed action or suit in the right of the Company to procure a judgment in its favor by reason
of the fact that such person or entity is or was a member of the Management Committee, a Member or
officer of the Company, or is or was serving at the request of the Company as a director, officer,
employee, representative or agent of another entity, against expenses (including attorneys’ fees)
actually and reasonably incurred by him, her or it in connection with the defense or settlement of
such action or suit if he, she or it acted in good faith and in a manner such person or entity
reasonably believed to be in or not opposed to the best interests of the
Company, except that no indemnification shall be made in respect of any claim, issue or matter
as to which such person or entity shall have been adjudged to be liable to the Company unless and
only to the extent that a Utah state court or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, such person or entity is fairly and reasonably entitled to indemnity for
such expenses which such court shall deem proper.

          (c) To the extent that a member of the Management Committee or a Member or officer of the
Company has been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in paragraphs (a) and (b) of this Section 12.4, or in defense of any claim therein, he,
she or it shall be indemnified against expenses (including attorneys’ fees) actually and reasonably
incurred by him, her or it in connection therewith.

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          (d) Any indemnification under paragraphs (a) and (b) of this Section 12.4 (unless ordered by a
court of competent jurisdiction) shall be made by the Company only as authorized in the specific
case upon a determination that indemnification of the member of the Management Committee, a Member
or officer is proper in the circumstances because he, she or it has met the applicable standard of
conduct set forth in paragraphs (a) and (b) of this Section 12.4. Such determination shall be made
(i) by the Management Committee by a majority vote of the members thereof who were not parties to
such action, suit or proceeding (even if such persons constitute less than a quorum), (ii) if a
majority of the disinterested members of the Management Committee (even if such persons constitute
less than a quorum) so directs, by independent legal counsel in a written opinion or (iii) if no disinterested
members of the Management Committee exist, by all Members.

          (e) Expenses (including attorneys’ fees) incurred by a member of the Management Committee or a
Member in defending any civil, criminal, administrative or investigative action, suit or proceeding
shall be paid by the Company in advance of the final disposition of such action, suit or proceeding
upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall
ultimately be determined that he, she or it is not entitled to be indemnified by the Company
pursuant to this Section 12.4. Expenses (including attorneys’ fees) incurred by officers of the
Company shall be paid upon such terms and conditions, if any, as the Management Committee deems
appropriate.

          (f) The indemnification and advancement of expenses provided by, or granted pursuant to, this
Section 12.4 shall not be deemed exclusive of any other rights

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to which those seeking
indemnification or advancement of expenses may be entitled under any agreement, vote of the Members
or vote of the disinterested members of the Management Committee or otherwise, both as to action in
an official capacity and as to action in another capacity while holding such office.

          (g) The indemnification and advancement of expenses provided by, or granted pursuant to, this
Section 12.4 shall continue as to a person or entity who has ceased to be a member of the
Management Committee, a Member or officer and shall inure to the benefit of the heirs, executors,
administrators, successors or permitted assigns of such person or entity.

          (h) Notwithstanding anything in this Section 12.4 to the contrary, the Company shall not have
the obligation of indemnifying any person or entity with respect to proceedings, claims or actions
initiated or brought voluntarily by such person or entity and not by way of defense.

          (i) The Company may purchase and maintain insurance or another arrangement on behalf of any
person or entity who is or was a member of the Management Committee, a Member, or an officer,
employee, agent or other person or entity identified in this Section 12.4 against any liability
asserted against such person or entity or incurred by such person or entity in such a capacity or
arising out of the status of such a person or entity, whether or not the Company would have the
power to indemnify such person or entity against that liability under this Section 12.4 or
otherwise.

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          (j) The indemnification set forth in this Section 12.4 shall in no event cause the Members to
incur any personal liability beyond their total Capital Contribution, nor shall it result in any
liability of the Members to any third party.

ARTICLE XIII

General Provisions

     13.1 Arbitration.

          (a) Each Member agrees that, in the event of any deadlock with respect to any Reserved Matter
(the “Dispute”), it will be resolved in the manner set forth in Section 26 of the Salt Lake JOA.

          (b) Nothing in this Agreement shall preclude a Member from seeking equitable or other relief
from a court of competent jurisdiction when such relief is unavailable pursuant to the Rules, as
defined in Section 26 of the Salt Lake JOA.

          (c) The parties hereto agree that given the nature of those matters that are the Reserved
Matters, any arbitration relating to a Dispute shall be conducted and concluded as expeditiously as
possible, and the parties shall use their best efforts to that end.

     13.2 Notices. Unless otherwise specifically provided in this Agreement, all notices
and other communications required or permitted to be given hereunder to the Members shall be in
writing, directed or addressed to the following respective addresses:

	 	 	 	 	 
	 

	 	If to DNPC to:
	 	Deseret News Publishing Company
	 

	 	 	 	30 East First South
	 

	 	 	 	Salt Lake city, Utah 84111
	 

	 	 	 	Attention: Ellis R. Ivory, Chairman

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	 	With a copy to:
	 	Kirton & McConkie, P.C.
	 

	 	 	 	Eagle Gate Tower
	 

	 	 	 	60 East South Temple Street, Suite 1800
	 

	 	 	 	Salt Lake City, Utah 84111
	 

	 	 	 	Attention: Robert W. Edwards, Esq.
	 
	 	 	 	 
	 

	 	If to K-T, LLC to:
	 	Kearns-Tribune, LLC
	 

	 	 	 	c/o MediaNews Group, Inc.
	 

	 	 	 	1560 Broadway, Suite 2100
	 

	 	 	 	Denver, CO 80202
	 

	 	 	 	Attention: Joseph J. Lodovic, IV, President
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Hughes Hubbard & Reed LLP
	 

	 	 	 	1775 I Street, NW, Suite 600
	 

	 	 	 	Washington, D.C. 20006
	 

	 	 	 	Attention: Howell E. Begle, Jr., Esq.

and shall be either (i) delivered by hand, (ii) delivered by a nationally recognized commercial
overnight delivery service, (iii) mailed postage prepaid by registered or certified mail, or (iv)
transmitted by facsimile, with receipt confirmed. Such notices shall be effective: (a) in the case
of hand deliveries, when received; (b) in the case of an overnight delivery service, when received
in accordance with the records of such delivery service; (c) in the case of registered or certified
mail, upon the date received by the addressee as determined by the U.S. Postal Service; and (d) in
the case of facsimile notices, when electronic indication of receipt is received. Any Member may
at any time change its address and telecopy number for all notices and other communications
required or permitted to be given hereunder by written notice to the other Member given in
accordance with this Section 13.2.

     13.3 Confidentiality. Each of the Members agrees that, except as required by law,
legal process, government regulators, or as reasonably necessary for performance of its obligations
or enforcement of its rights under this Agreement, without the prior

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written consent of the other
Members, it will treat and hold as confidential (and not disclose or provide access to any person
other than such Member’s attorneys or accountants) and it will cause its Affiliates, officers,
managers, partners, employees and agents to treat and hold as confidential (and not divulge,
provide access to any person, or use to the detriment of any Member or the Company) all
confidential information disclosed by the Company and relating to (i) the business of the Company
and (ii) any patents, inventions, designs, know-how, trade secrets or other intellectual property
relating to the Company, in each case excluding (A) information in the public domain when received
by such Member or
thereafter in the public domain through sources other than such Member, (B) information
lawfully received by such Member from a third party not subject to a confidentiality obligation,
(C) information already in the possession of the Member, and (D) information developed
independently by such Member. The obligations of the Members hereunder shall not apply to the
extent that the disclosure of information otherwise determined to be confidential is required by
applicable law, provided, however, that prior to disclosing such confidential information to any
party other than a governmental agency exercising its ordinary regulatory oversight of a Member, a
Member shall notify the Company thereof, which notice shall include the basis upon which such
Member believes the information is required to be disclosed. This Section 13.3 shall survive for a
period of four years with respect to any Member that withdraws from the Company and, for any period
of time agreed to by the Members, with respect to any dissolution or termination of the Company
pursuant to Article XII hereof.

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     13.4 Public Announcements. Except as required by law, no party hereto will make any
public announcement concerning this Agreement and the transactions contemplated hereby prior to the
first mutually agreed upon announcement thereof without the consent of the other party and then
only upon the maximum advance notice to the other party which is practicable under the
circumstances.

     13.5 Entire Agreement, Amendments, etc. This Agreement, together with the
Supplemental Agreement and the other documents being executed by the parties in connection
herewith, constitutes the entire understanding and agreement of the parties with respect
to the subject matter hereof except as otherwise contemplated in this Agreement or the
Supplemental Agreement. No course of prior dealings among all of the parties shall be relevant to
supplement or explain any term used in this Agreement. Acceptance and acquiescence in a course of
performance rendered under this Agreement shall not be relevant to determine the meaning of this
Agreement even though the accepting or the acquiescing party has knowledge of the nature of the
performance and an opportunity for objection. All waivers, amendments and modifications of this
Agreement must be confirmed in writing and must be approved by the Members in the manner specified
in Article XII of this Agreement. No waiver of any terms or conditions of this Agreement in any
instance shall operate as a waiver of any other term or condition or as a waiver in any other
instance.

     13.6 Construction Principles. As used in this Agreement words in any gender shall be
deemed to include all other genders. The singular shall be deemed to include the plural and vice
versa. References in this Agreement to K-T, LLC and DNPC include their respective successors and
permitted assigns. The captions and Article and Section

-50-

 

headings in this Agreement are inserted for
convenience of reference only and are not intended to have significance for the interpretation of
or construction of the provisions of this Agreement. This Agreement has been jointly drafted by
the parties, and the parties agree that the provisions of this Agreement are not to be construed
more strictly against one party than the other.

     13.7 Counterparts. This Agreement may be executed in two or more counterparts by the
parties hereto, each of which when
so executed will be an original, but all of which together will constitute one and the same
instrument.

     13.8 Severability. If any provision of this Agreement is held to be invalid or
unenforceable for any reason, such provision shall be ineffective to the extent of such invalidity
or unenforceability; provided, however, that the remaining provisions will continue in full force
without being impaired or invalidated in any way. The parties hereto agree to replace any invalid
or unenforceable provision with a valid provision which closely approximates the intent and
economic effect of the invalid or unenforceable provision.

     13.9 Expenses. Each Member shall bear its own costs (including taxes) for all matters
involved in the negotiation, execution and performance of this Agreement and related transactions.

     13.10 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Utah as applied to transactions taking place wholly within Utah
between Utah residents. Any legal action or proceedings against either Member with respect to this
Agreement may be brought in the courts of the State

-51-

 

of Utah in Salt Lake County or in the United
States District Court for the District of Utah, as either Member may elect, and both Members agree
that such jurisdiction shall be exclusive.

     13.11 Binding Effect. Subject to the provisions of this Agreement relating to
transferability, this Agreement shall be
binding upon, and inure to the benefit of, the Members and their respective permitted
distributees, successors and assigns.

     13.12 Additional Documents and Acts. Each Member agrees to execute and deliver such
additional documents and instruments and to perform such additional acts as may be necessary or
appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions of
this Agreement and of the transactions contemplated hereby.

     13.13 Third Party Beneficiaries. This Agreement is made solely for the benefit of
K-T, LLC and DNPC and their permitted successors and assigns and no other person shall have any
rights, interest, or claims hereunder or otherwise be entitled to any benefits under or on account
of this Agreement as a third party beneficiary or otherwise.

     13.14 Limited Liability Company. The Company was formed as a limited liability
company and not as a partnership under the laws of the State of Utah or any other laws; provided,
however, that, to the extent permitted by law, the Company will hereafter be treated as a
partnership for federal, state and local income tax purposes.

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     13.15 Salt Lake JOA. No provision of this Agreement, and no course of action by KK-T,
LLC and/or DNPC prior to the execution of this Agreement, was intended to modify or amend the Salt
Lake JOA or to constitute a waiver of any rights or obligations of K-T, LLC or DNPC under the Salt
Lake JOA. In the event of any conflict
between the provisions of this Agreement and the Salt Lake JOA, the provisions of the Salt
Lake JOA shall control.

     IN WITNESS WHEREOF, each Member has duly executed and become a party to this Agreement as of
this 1st day of July, 2006.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	KEARNS-TRIBUNE, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	\s\ Joseph J. Lodovic, IV	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Joseph J. Lodovic, IV	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	DESERET NEWS PUBLISHING COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	\s\ Jim M. Wall	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jim M. Wall	 	 
	 

	 	 	 	President	 	 

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