Shareholders Agreement (2003)Full Document 

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                             Shareholders Agreement

                                  by and among

                          Journal Communications, Inc.,

                              The Journal Company,

                                   Matex Inc.

                                       and

                        Abert Family Journal Stock Trust

                            Dated as of May 12, 2003



                                Table of Contents



                                                                                        Page
                                                                                        ----
                                                                                     
ARTICLE I DEFINITIONS ..................................................................  1

ARTICLE II PERMANENT CAPITAL TRANSACTION ...............................................  5
     2.1.  Voting Agreement ............................................................  5
     2.2.  No Inconsistent Arrangements ................................................  6
     2.3.  Grant of Irrevocable Proxy ..................................................  6
     2.4.  Waiver of Dissenters' Rights ................................................  7
     2.5.  Support for Permanent Capital Transaction ...................................  7

ARTICLE III SHARE EXCHANGES; ARTICLES OF INCORPORATION .................................  7
     3.1.  Share Exchanges .............................................................  7
     3.2.  Articles of Incorporation of New Journal ....................................  7
     3.3.  Alternative Transaction .....................................................  8

ARTICLE IV PARTICIPATION IN THE IPO ....................................................  8
     4.1.  Decision to Participate in the IPO ..........................................  8
     4.2.  Agreements and Limitations of Participation .................................  9

ARTICLE V RESTRICTIONS ON TRANSFER; REDEMPTION .........................................  9
     5.1.  Agreement to Hold Shares ....................................................  9
     5.2.  No Tender of Shares ......................................................... 10
     5.3.  No Purchase of Class B Common Stock ......................................... 10
     5.4.  Redemption .................................................................. 10

ARTICLE VI REGISTRATION RIGHTS ......................................................... 11
     6.1.  Demand Registrations ........................................................ 11
     6.2.  Piggyback Registrations ..................................................... 13
     6.3.  Lock-Up Period .............................................................. 14
     6.4.  Registration Procedures ..................................................... 15
     6.5.  Underwritten Offerings ...................................................... 17
     6.6.  Registration Expenses ....................................................... 17
     6.7.  Indemnification ............................................................. 18
     6.8.  Termination of Registration Rights .......................................... 20

ARTICLE VII NEW JOURNAL BOARD .......................................................... 20
     7.1.  Director Nominees ........................................................... 20
     7.2.  Rules and Limitations ....................................................... 20

ARTICLE VIII EFFECTIVENESS; TERMINATION ................................................ 21
     8.1.  Sections Effective Immediately .............................................. 21
     8.2.  Sections Effective on Consummation of Permanent Capital Transaction ......... 21
     8.3.  Sections Effective at Other Times ........................................... 21
     8.4.  Termination ................................................................. 21


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ARTICLE IX MISCELLANEOUS ............................................................... 22
     9.1.  No Solicitation ............................................................. 22
     9.2.  Representations and Warranties .............................................. 22
     9.3.  Reimbursement of Family Shareholders' Expenses .............................. 22
     9.4.  Disclosure .................................................................. 23
     9.5.  Stock Certificate Legend .................................................... 23
     9.6.  Further Assurances .......................................................... 23
     9.7.  Successors and Assigns ...................................................... 23
     9.8.  Family Successors ........................................................... 23
     9.9.  No Conflict ................................................................. 24
     9.10. Release ..................................................................... 24
     9.11. Governing Law ............................................................... 24
     9.12. Remedies .................................................................... 24
     9.13. Severability ................................................................ 24
     9.14. Amendment, Modification and Waiver .......................................... 25
     9.15. Notices ..................................................................... 25
     9.16. Entire Agreement ............................................................ 26
     9.17. Counterparts ................................................................ 26
     9.18. Headings .................................................................... 26


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                             SHAREHOLDERS AGREEMENT

     SHAREHOLDERS AGREEMENT (this "Agreement"), dated as of May 12, 2003, by and
among Journal Communications, Inc., a Wisconsin corporation that will change its
name upon consummation of the Share Exchange ("JCI"), The Journal Company, a
Wisconsin corporation that will change its name to Journal Communications, Inc.
upon consummation of the Share Exchange ("New Journal"), Matex Inc., a Wisconsin
corporation ("Matex"), and the Abert Family Journal Stock Trust created under
the agreement dated January 27, 1987, as amended (the "Abert Trust," and
collectively with Matex and any transferees permitted under Section 9.7, the
"Family Shareholders"). Except as otherwise indicated herein, capitalized terms
have the meaning ascribed to them in Article I.

                              W I T N E S S E T H :

     WHEREAS, JCI has been evaluating various external sources of permanent
capital in order to enhance JCI's ability to continue to grow as an independent,
diversified media and communications company.

     WHEREAS, based on such evaluations, JCI has determined that the Permanent
Capital Transaction and the follow-on Tender Offer is the best alternative to
accomplish its goal of continuing to grow as a family and employee-controlled
independent, diversified media and communications company.

     WHEREAS, JCI, New Journal and the Family Shareholders desire to enter into
this Agreement for the purposes of, among others, (i) providing for the Family
Shareholders' approval of the Permanent Capital Transaction, (ii) providing for
the terms of New Journal's capital structure and (iii) providing for the
continuation of an employee ownership program to encourage the continuation of
the employee-owned culture of JCI.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     As used in this Agreement, the following terms shall have the meanings
specified:

     "Abert Trust" has the meaning set forth in the preamble hereto.

     "Affiliate" as applied to any Person, means any other Person directly or
indirectly controlling, controlled by or under common control with that Person.
The term "control" (including, with correlative meanings, the terms
"controlling," "controlled by" and "under common control with"), as applied to
any Person, means the possession, directly or indirectly, of power to direct the
management and policies of that Person, whether through voting power, by
contract or otherwise.


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