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Set-OffAgreement

ThisSet-OffAgreement(this“Agreement”)interedintoasofFebruary18,2009byand

amongLeeEnterpris,Incorporated,aDelawarecorporation(“Lee”),LeeProcurementSolutionsCo.,

anIowacorporation(“Procurement”)andPulitzerInc.,aDelawarecorporation(“Pulitzer”).

Capitalizedtermsudandnotdefinedhereinhavetherespectivemeaningsascribedtheretointhe

NoteAgreement(asamendedandineffectonthedatehereof,the“NoteAgreement”),datedasof

May1,2000,ost-DispatchLLC,aDelawarelimitedliabilitycompany(“PD”)and

thepurcharsofthe8.05%SeniorNotesdueApril28,2009(the“Notes”).

Recitals

s,indirectly,100%oftheEquityInterestsofPulitzerandPulitzerowns100%ofthe

EquityInterestsofPD(“PD”).

erandPDprovideasubstantialportionofthecashflowofLeeanditssubsidiariesandit

isntialforthecontinuedoperationofLeeanditssubsidiariesthatPulitzerandPDremainasgoing

concerns.

edabove,PDisapartytoaNoteAgreementandtheissueroftheNotes,andPulitzeris

aguarantorofallamountsowingbyPDundertheNoteAgreementandtheNotes.

ofDefaultcurrentlyexistundertheNoteAgreementandtheholdersoftheNotes(the

“Noteholders”)havetherighttoaccelerateallamountsowingundertheNoteAgreementandthe

Notes;itixpectedthatsuchaccelerationwouldpreventPulitzerandPDfromcontinuingasgoing

concerns.

eholdersarepreparedtowaivesuchEventsofDefaultinconnectionwithan

amendmentoftheNoteAgreementandtheexecutionoftheTransactionDocuments,andsatisfaction

ofcertainotherconditions,oneofwhichisthattheexecutionanddeliveryofthisAgreementbyallof

thepartieshereto.

inistrativeconvenience,Leehasoperatedacentralizedcashmanagementand

payablessysteminconnectionwithwhichitssubsidiariesmakeadvancestoLeeorProcurementanda

portionofsuchadvanceshasbeenudbyLeeorProcurementtopayforgoodsandrvicesfurnished

byLeeorProcurementtoPulitzeranditssubsidiaries(suchasincomeandothertaxes),ortoreimbur

LeeandProcurementforpaymentstothirdpartiesmadebyeitherofthemforgoodsandrvices

providedtoPulitzeranditssubsidiaries(suchaspayrollandcorporateoverhead).Anyportionnotso

udhasbeenretainedbyLee.

ectionwithsuchcentralizedcashmanagementandpayablessystem,Pulitzerhasan

advance,asofFebruary1,2009,of$681,398,000toLee(the“LeePayable”),whichadvanceremains

outstandingasofthedatehereof,andProcurementhasanoutstandingreceivableduefromPulitzer,as

ofsuchdate,of$438,196,000(the“ProcurementReceivable”),forgoodsandrvicesprovidedto

PulitzeranditssubsidiarieswhichhavebeenpaidforbyProcurement.

ofthefactsthatthecentralizedcashmanagementandpayablessystemhasbeen

operatedforadministrativeconvenienceandithasbeentheintentofLee,ProcurementandPulitzer

thattheLeePayableandtheProcurementReceivableconstituteoneclaimbyeitherorbothLeeand

Procurementagainst,oroneamountowingbyeitherorbothofthemto,Pulitzer,asthecamaybe,

thepartiesheretodeemitappropriatetoprovideforthettingoffoftheLeePayableagainstthe

ProcurementReceivable.

Agreement

NOW,THEREFORE,forgoodandsufficientconsideration,thepartiesheretoherebyagreeas

follows:

iveasofthedateofthisAgreement,thepartiesheretoagreethattheLeePayableandthe

ultthereof,theentireProcurementReceivableis

herebysatisfiedinallrespectsandextinguished,andtheLeePayableisherebysatisfiedand

extinguishedtotheextentofanamountequaltotheProcurementReceivable,resultinginanetpayable

byLeeowingtoPulitzerof$243,202,000(asincreadbycapitalizedinterestasprovidedinSection2

hereof,the“NetLeePayable”).

LeePayableshallbesubordinatedtoallDebtowingbyLeeundertheCredit

Agreement,asprovidedintheIntercompanySubordinationAgreement(asdefinedintheCredit

Agreement),asamended,towhichPulitzer,byJoinderexecutedanddeliveredpursuanttotheCredit

Agreement,LeePayableshallbearinterestattherateofLIBOR(asdefinedinthe

NoteAgreement)plus75bps,whichinterestshallnotbepayableincashpriortofinalpaymentat

maturityandshallinsteadbecapitalizedonthelastdayofeachfiscalquarterofPulitzer,thus

becomingpartoftheNetLeePayableandbearinginterestfromthedateofsuchcapitalizationatthe

mentandrepaymentoftheNetLeePayableisrestrictedbyclau(y)ofthe

lastntenceofSection10.10oftheCreditAgreement(asineffectonthedatehereof).

dmenttoorwaiverofanyprovisionofthisAgreementnorconnttoanydeparture

byanypartyfromanyprovisioninthisAgreementshallinanyeventbeeffectiveunlessthesameshall

havebeenagreedtoinwritingbytheallofthepartieshereto.

reementshallbeconstruedandenforcedinaccordancewiththerightsoftheparties

andtherightsofthepartiesshallbegovernedby,theStateofNewYork,excludingchoiceoflaw

principalsofthelawthatwouldrequiretheapplicationofthelawsofajurisdictionotherthanthelaws

oftheStateofNewYork.

reementmaybeexecutedinveralcounterparts,eachofwhichshallbedeemedan

original,ilesignatures(or

otherelectronicallydeliveredsignaturepages)tothisAgreementoranyotherdocumentrequiredtobe

deliveredatClosingpursuanttothisAgreementshallbebindingontheparties.

erpossible,eachprovisionofthisAgreementwillbeinterpretedinsuchmannerasto

beeffectiveandvalidunderapplicablelaw,butifanyprovisionofthisAgreementisheldtobe

prohibitedbyorinvalidunderapplicablelaw,suchprovisionwillbeineffectiveonlytotheextentof

suchprohibitionor,invalidity,withoutinvalidatingthereminderofsuchprovisionortheremaining

provisionsofthisAgreement.

reementshallinuretothebenefitandshallbebindinguponalltheparties,theirlegal

reprentatives,successors,heirsandassigns.

reementtsforththeentireagreementofthepartiesandshallnotbeamended,

modified,orotherwichangedexceptinawritingsignedbybothpartiesandincorporatingthis

Agreementbyreference.

[Theremainderofthispageisintentionallyleftblank;signaturepagesfollow.]

INWITNESSWHEREOF,theundersignedhavecaudthisSet-OffAgreementtobeexecuted

anddeliveredbytheirdulyauthorizedofficersasofthedatefirstabovewritten.

LEEENTERPRISES,

INCORPORATED

By:/s/t

Name:t

Title:VicePresident,ChiefFinancial

OfficerandTreasurer

LEEPROCUREMENTSOLUTIONS

CO.

By:/s/t

Name:t

Title:Treasurer

PULITZERINC.

By:/s/anIII

Name:anIII

Title:Secretary