by an agent to be appointed by the Star and the Citizen, and the cash received therefrom distributed to the Star and the Citizen on the same basis as distribution was made for the last year of operation hereunder.

(14) The parties of this agreement each agree with the other to take any corporate or other action that may be necessary at any time to carry out and give full force and effect to the provisions of this agreement.

IN WITNESS WHEREOF, the Star and the Citizen have hereunto affixed their signatures and seals by their respective corporate officers hereunto duly authorized, at Tucson, Arizona, this 28th day of March, 1940.

Production data.

Net operating revenue.

Computation of revenue.

Materials used.

CONTENTS

Composing room, stereotyping room, and press room expenses.

Advertising department expenses.

Circulation department expenses.

News and editorial department expenses.

Business department expenses.

General and administrative expenses.

Bad debt expense.

(1) Joint production facilities and circulation trucks;

(2) Establishment of separate advertising, circulation, and business departments; and

(3) Maintaining of separate news and editorial departments

2 Costs and expenses for 1962 do not include a provision for pension expense as the pension program at Tucson Newspapers, Inc, was not initiated until 1963. Had the pension program been in effect in 1962 the Citizen's expenses would have been approximately $48,000 greater and the Star's expenses approximately $51,000 greater.

(A) Sunday premium allocated to Star; balance allocated based upon number of column inches for the year.

(B) Based upon number of column inches for the year.

(C) On an equal (50-50) basis.

(D) Based upon circulation for the year.

(E) Excluded rents on nonbusiness properties.

(F) Offset against general miscellaneous expense.

COMPOSING ROOM, STEREOTYPING ROOM, AND PRESS ROOM EXPENSES

Display advertising, based upon discussions with Frank Drachman, advertising manager of TNI, all display advertising expense would be duplicated except local commissions which are allocated equally:

Total display advertising expense..

$267,320

Less local commissions...

5,812

Classified advertising, based upon discussions with Robert O'Brien, in charge of classified advertising expenses would be duplicated:

Total classified advertising expenses.

Add payroll taxes and fringe benefits $6.435 percent of $122,739)__

129,637
7,898

CIRCULATION DEPARTMENT EXPENSES

Tucson Daily
Citizen

The Arizona
Daily Star

Percent of 1964_.

The circulation manager made a detailed study and report in regard to the establishment
of separate circulation departments. The study was based upon the year ended Dec.
31, 1964, and it does not appear necessary to conduct similar studies for 1963 and 1962;
expenses other than salaries and wages remained consistent from 1960 through 1964,
therefore, the expenses (other than salaries and wages) estimated by the circulation
manager for separate departments for 1964 are used in total for 1963 and 1962..
Salaries and wages for the years 1963 and 1962 are based upon estimates; for separate
departments in 1964 and adjusted for changes from year to year:
Circulation department salaries and wages for TNI:

1964

1962_

Adjust salaries and wages for separate departments for 1964 to current year:

$442, 540

$394, 980
89.253

1964:

Total news and editorial department expenses per the accounts of the individual corporations, no changes contemplated.......