-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JjyOiTR/8OxKtyoo3mbeiAH0fdeGKiovqhBzneXUIqqV1cjn8Ut2hlA4swlAqg08 yASUqZ1grLWsK4TXfBjqVA== 0000950134-07-004259.txt : 20070227 0000950134-07-004259.hdr.sgml : 20070227 20070227170900 ACCESSION NUMBER: 0000950134-07-004259 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20070222 ITEM INFORMATION: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070227 DATE AS OF CHANGE: 20070227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIN TV CORP CENTRAL INDEX KEY: 0001166789 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 050501252 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31311 FILM NUMBER: 07654130 BUSINESS ADDRESS: STREET 1: 4 RICHMOND SQ STREET 2: SUITE 200 CITY: PROVIDENCE STATE: RI ZIP: 02906 BUSINESS PHONE: 401.454.2880 MAIL ADDRESS: STREET 1: 4 RICHMOND SQ STREET 2: SUITE 200 CITY: PROVIDENCE STATE: RI ZIP: 02906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIN TELEVISION CORP CENTRAL INDEX KEY: 0000931058 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 133581627 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25206 FILM NUMBER: 07654132 BUSINESS ADDRESS: STREET 1: ONE RICHMOND SQUARE STREET 2: STE 230 E CITY: PROVIDENCE STATE: RI ZIP: 02906 BUSINESS PHONE: 4014542880 MAIL ADDRESS: STREET 1: ONE RICHMOND SQUARE STREET 2: SUITE 230 E CITY: PROVIDENCE STATE: RI ZIP: 02906 8-K 1 d44060e8vk.htm FORM 8-K e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported)      February 22, 2007     
LIN TV Corp.
(Exact Name of Registrant as Specified in Charter)
         
Delaware   001-31311   05-0501252
         
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)
LIN Television Corporation
(Exact Name of Registrant as Specified in Charter)
         
Delaware   000-25206   13-3581627
         
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)
Four Richmond Square, Suite 200, Providence, Rhode Island 02906
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code:      (401) 454-2880     
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Item 9.01 Financial Statements and Exhibits.
SIGNATURE
Employment Agreement - Chief Executive Officer
Employment Agreement - Executive Vice President Television
Employment Agreement - Executive Vice President Digital Media
Employment Agreement - Vice President General Counsel and Secretary


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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Chief Executive Officer 2006 Bonus and 2007 Salary
On February 21, 2007, the Compensation Committee (the “Compensation Committee”) of our Board of Directors (the “Board”) determined the amount of the 2006 cash bonus to be paid to Vincent L. Sadusky, our President and Chief Executive Officer. The bonus for 2006 was determined based upon the achievement of certain strategic objectives, including performance targets calculated based upon our annual, audited financial results and other subjective factors. The total bonus awarded was $837,500, consisting of $712,500 based upon the performance targets plus $125,000 based upon other subjective criteria established by the Compensation Committee in accordance with the Employment Agreement between the Company and Mr. Sadusky. The Committee also approved the 2007 salary to be paid to Mr. Sadusky in the amount of $500,000.
Details of Mr. Sadusky’s employment agreement were previously disclosed in an 8-K dated July 11, 2006. The full agreement is being filed as Exhibit 10.1 to this Form 8-K.
Scott M. Blumenthal Compensation Agreement
Executive Vice President Television
On September 6, 2006, Scott Blumenthal was promoted to Executive Vice President Television of us and LIN Television Corporation (“LIN Television”). On February 22, 2007, we and LIN Television entered into an employment agreement with Mr. Blumenthal, effective as of September 6, 2006. In connection with his promotion, the Compensation Committee approved the September 6, 2006 grant to Mr. Blumenthal of an option to purchase 200,000 shares of the Company’s class A common stock. The option vests over a period of four years, with 25% of the option vesting on each anniversary of the grant date, beginning one year from the date of grant.
Mr. Blumenthal’s agreement provides for Mr. Blumenthal to receive a base salary of $375,000 and to be eligible for an annual bonus in an amount up to 80% of his then-current base salary, based upon achievement of certain revenue and EBITDA targets established by the President and CEO of LIN TV, together with the Board. Mr. Blumenthal will also be eligible for a second annual bonus payment in an amount up to 13.34% of his then-current base salary. The amount of this second bonus will be determined by the President and CEO of LIN TV and the Compensation Committee and will be based upon their assessment of such factors as they determine are relevant, such as financial performance or management’s achievement of certain goals established by the President and CEO and the Board. The employment agreement will remain in effect until LIN TV, LIN Television or Mr. Blumenthal terminates it.

 


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If the employment agreement is terminated by LIN TV or LIN Television “without cause” or by Mr. Blumenthal for “good reason” as defined in the agreement, Mr. Blumenthal will be entitled to receive a severance payment in an amount equal to his base salary and the bonus he received in the prior year. In addition, during the twelve-month period following the termination of Mr. Blumenthal’s employment by LIN TV or LIN Television “without cause” or by Mr. Blumenthal for “good reason,” LIN Television will continue to pay the employer’s portion of Mr. Blumenthal’s health and dental insurance premiums. Mr. Blumenthal has agreed to preserve all confidential and proprietary information relating to LIN TV’s and LIN Television’s business during and after the term of the agreement. In addition, Mr. Blumenthal has agreed to non-competition and non-solicitation provisions that are in effect during the term of the agreement and for one year thereafter. Upon a change of control transaction or if either LIN TV or LIN Television terminate Mr. Blumenthal’s employment in anticipation of a change of control transaction, the agreement provides that the stock options that LIN TV granted to Mr. Blumenthal (representing the right to purchase 200,000 shares of the Company’s class A common stock) will become fully vested.
Gregory M. Schmidt’s Compensation Agreement
Executive Vice President Digital Media
On September 6, 2006, Gregory M. Schmidt was named Executive Vice President Digital Media of us and LIN Television. On February 22, 2007, we and LIN Television entered into an employment agreement with Mr. Schmidt, effective as of September 6, 2006. In connection with his appointment, the Compensation Committee approved the September 6, 2006 grant to Mr. Schmidt of an option to purchase 200,000 shares of the Company’s class A common stock. The option vests over a period of four years, with 25% of the option vesting on each anniversary of the grant date, beginning one year from the date of grant.
Mr. Schmidt’s agreement provides for Mr. Schmidt to receive a base salary of $400,000 and to be eligible for an annual bonus in an amount up to 65.63% of his then-current base salary, based upon achievement of certain digital media revenue targets established by the President and CEO of LIN TV, together with the Board. Mr. Schmidt will also be eligible for a second annual bonus payment in an amount up to 10.94% of his then-current base salary. The amount of this second bonus will be determined by the President and CEO of LIN TV and the Compensation Committee and will be based upon their assessment of such factors as they determine are relevant, such as financial performance or management’s achievement of certain goals established by the President and CEO and the Board. The employment agreement will remain in effect until LIN TV, LIN Television or Mr. Schmidt terminates it.
If the employment agreement is terminated by LIN TV or LIN Television “without cause” or by Mr. Schmidt for “good reason” as defined in the agreement, Mr. Schmidt will be entitled to receive as a severance payment, subject to the reductions described below, a payment in an amount equal to three times his base salary and three times the bonus he received in the prior year. In addition, during the thirty-six month period following the termination of Mr. Schmidt’s employment by LIN TV or LIN Television

 


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“without cause” or by Mr. Schmidt for “good reason,” LIN Television will continue to pay the employer’s portion of Mr. Schmidt’s health and dental insurance premiums. The amount of the severance payment and medical continuation payment to which Mr. Schmidt is entitled will be reduced pro rata for each day of Mr. Schmidt’s employment following September 6, 2006, until Mr. Schmidt is entitled to a severance payment equal to his base salary plus the bonus that he received in the prior year. His entitlement to medical continuation payments will be reduced in the same manner until he is entitled to one year of such payments.
In the event that the employment agreement is terminated by LIN TV or LIN Television “without cause” or by Mr. Schmidt for “good reason” as defined in the agreement, the stock options and restricted stock awards granted to Mr. Schmidt prior to September 6, 2006, will become fully vested. Mr. Schmidt has agreed to preserve all confidential and proprietary information relating to LIN TV’s and LIN Television’s business during and after the term of the agreement. In addition, Mr. Schmidt has agreed to non-competition and non-solicitation provisions that are in effect during the term of the agreement and for one year thereafter. Upon a change of control transaction or if either LIN TV or LIN Television terminate Mr. Schmidt’s employment in anticipation of a change of control transaction, the agreement provides that the stock options that LIN TV granted to Mr. Schmidt (representing the right to purchase 200,000 shares of the Company’s class A common stock) along with all other stock options and restricted stock awards granted to Mr. Schmidt prior to September 6, 2006, will become fully vested.
Denise M. Parent’s Compensation Agreement
Vice President General Counsel and Secretary
On September 6, 2006, Denise M. Parent was promoted to Vice President General Counsel and Secretary of us and LIN Television. On February 22, 2007, we and LIN Television entered into an employment agreement with Ms. Parent, effective as of September 6, 2006. In connection with her promotion, the Compensation Committee approved the September 6, 2007grant to Ms. Parent of an option to purchase 60,000 shares of the Company’s class A common stock. The option vests over a period of four years, with 25% of the option vesting on each anniversary of the grant date, beginning one year from the date of grant.
Ms. Parent’s agreement provides for Ms. Parent to receive a base salary of $275,000 and to be eligible for an annual bonus in an amount up to 27.27% of her then-current base salary based upon achievement of certain revenue and EBITDA targets established by the President and CEO of LIN TV together with the Board. Ms. Parent will also be eligible for a second annual bonus payment in an amount up to 40.91% of her then-current base salary. The amount of this second bonus will be determined by the President and CEO of LIN TV and the Compensation Committee and will be based upon their assessment of such factors as they determine are relevant, such as financial performance or management’s achievement of certain goals established by the President and CEO and the Board. The employment agreement will remain in effect until LIN TV, LIN Television or Ms. Parent terminates it.

 


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If the employment agreement is terminated by LIN TV or LIN Television “without cause” or by Ms. Parent for “good reason” as defined in the agreement, Ms. Parent will be entitled to receive as a severance payment, subject to the reductions described below, a payment in an amount equal to three times her base salary and three times the bonus she received in the prior year. In addition, during the thirty-six month period following the termination of Ms. Parent’s employment by LIN TV or LIN Television “without cause” or by Ms. Parent for “good reason,” LIN Television will continue to pay the employer’s portion of Ms. Parent’s health and dental insurance premiums. The amount of the severance payment and medical continuation payment to which Ms. Parent is entitled will be reduced pro rata for each day of Ms. Parent’s employment following September 6, 2006, until Ms. Parent is entitled to a severance payment equal to her base salary plus the bonus that she received in the prior year. Her entitlement to medical continuation payments will be reduced in the same manner until she is entitled to one year of such payments.
In the event that the employment agreement is terminated by LIN TV or LIN Television “without cause” or by Ms. Parent for “good reason” as defined in the agreement, the stock options and restricted stock awards granted to Ms. Parent prior to September 6, 2006 will become fully vested. Ms. Parent has agreed to preserve all confidential and proprietary information relating to LIN TV’s and LIN Television’s business during and after the term of the agreement. In addition, Ms. Parent has agreed to non-competition and non-solicitation provisions that are in effect during the term of the agreement and for one year thereafter. Upon a change of control transaction or if either LIN TV or LIN Television terminate Ms. Parent’s employment in anticipation of a change of control transaction, the agreement provides that the stock options that LIN TV granted to Ms. Parent (representing the right to purchase 60,000 shares of the Company’s class A common stock) along with all other stock options and restricted stock awards granted to Ms. Parent prior to September 6, 2006, will become fully vested.

 


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Item 9.01 Financial Statements and Exhibits.
10.1 Employment agreement between, our Chief Executive Officer, Vincent L. Sadusky, LIN TV Corp. and LIN Television Corporation dated as of November1, 2006.
10.2 Employment agreement between our Executive Vice President Television, Scott M. Blumenthal, LIN TV Corp., and LIN Television Corporation dated as of February 22, 2007.
10.3 Employment agreement between our Executive Vice President Digital Media, Gregory M. Schmidt, LIN TV Corp. and LIN Television Corporation, dated as of February 22, 2007.
10.4 Employment agreement between our Vice President General Counsel and Secretary, Denise M. Parent, LIN TV Corp., and LIN Television Corporation dated February 22, 2007.

 


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SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  LIN TV Corp.
 
 
Date: February 27, 2007  By:   /s/ William A. Cunningham    
    Name:   William A. Cunningham   
    Title:   Vice President and Controller   
 

 

EX-10.1 2 d44060exv10w1.htm EMPLOYMENT AGREEMENT - CHIEF EXECUTIVE OFFICER exv10w1
 

EXHIBIT 10.1
[Execution Version]
Employment Agreement
     This Employment Agreement (this “Agreement”), entered into on November 1, 2006, and made effective as of July 12, 2006, is by and among, LIN TV Corp., a Delaware corporation (“Parent”), and LIN Television Corporation, a Delaware corporation with its headquarters in Providence, Rhode Island, and a wholly-owned subsidiary of the Parent (the “Company” and, together with Parent, the “LIN Companies”), and Vincent L. Sadusky, an individual residing in the state of Rhode Island (the “Executive”).
RECITALS:
     Whereas, on July 12, 2006 (the “Appointment Date”), the board of directors of Parent (the “Board of Parent”) appointed Executive to the offices of director, President, and Chief Executive Officer (“CEO”) of Parent and the board of directors of the Company has appointed Executive to the same offices in the Company;
     Whereas, each of Parent and the Company desire that the Company employ Executive as CEO and President of the Company, and Executive desires to be employed by the Company in such positions, in accordance with the terms and subject to the conditions provided herein
     Now, Therefore, in consideration of the foregoing and of the respective covenants and agreements of the parties herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:
     1. Employment. The Company shall employ Executive and Executive hereby agrees to serve the LIN Companies on the terms and conditions set forth herein.
     2. Service Period. The term of this Agreement and Executive’s employment hereunder (the “Service Period”) shall be deemed to have commenced as of the Appointment Date and shall continue thereafter until the effective date of termination pursuant to the terms and subject to the conditions of this Agreement.
     3. Position and Duties.
          (a) During the Service Period, Executive shall serve as the President and CEO of each of the LIN Companies, reporting only to the Board of Parent in his capacity as President and CEO of Parent and only to the board of directors of the Company in his capacity as President and CEO of the Company and, subject to the LIN Companies’ respective Certificates of Incorporation and By-Laws, shall have such authority as may be granted from time to time by the respective boards of directors and as otherwise is inherent in such positions.
          (b) At all times during the Service Period, Parent shall (i) use its best efforts to have Executive nominated for a seat on the Board of Parent as a member of the management slate therefor, and (ii) cause Executive to be appointed to the board of directors of the Company.

 


 

     4. Attention and Effort. Executive covenants and agrees, at all times during the Service Period, to devote his full business-time efforts, energies and skills to his duties as President and CEO of each of the LIN Companies, to serve each of the LIN Companies diligently and to the best of Executive’s ability and at all times to act in compliance with the rules, regulations, policies and procedures of the LIN Companies as shall be in effect from time to time. Executive further covenants and agrees that he will not, directly or indirectly, engage or participate in any other business, profession or occupation for compensation or otherwise at any time during the Service Period which conflicts with the business of the LIN Companies, without the prior written consent of the Board of Parent; provided, that nothing herein shall preclude Executive from accepting appointment to or continuing to serve on any board of directors or trustees of any charitable or not-for-profit organization or from managing his personal, financial or legal affairs; provided, in each case, and in the aggregate, that such activities do not materially conflict or interfere with the performance of Executive’s duties hereunder or conflict with Sections 10, 11 or 12 of this Agreement in any material respect.
     5. Compensation and Other Benefits.
          (a) During the Service Period, Executive shall be paid by the Company an annual base salary of Five Hundred Thousand Dollars ($500,000) (“Base Salary”), payable in accordance with the Company’s normal payroll practices. The Base Salary shall be reviewed by the Compensation Committee of the Board of Parent no less often than once each calendar year and may be increased, but not decreased, based on such a review.
          (b) Executive shall be eligible to receive, in addition to the Base Salary described above, annual bonus payments to be determined by December 31 of each calendar year during the Service Period, or as soon thereafter as practicable, but in no event later than March 15 of the subsequent calendar year; which bonus payments (if any), shall be determined as follows:
               (i) Executive shall be eligible to receive a bonus payment calculated as set forth in this paragraph (i) (the “Results Bonus”) using a baseline bonus amount equal to seventy-five percent (75%) of the Base Salary in effect as of the last day of the calendar year to which the Results Bonus relates (the “Results Bonus Base Amount”). The amount of the Results Bonus awarded to Executive, if any, shall be an amount calculated as a percentage of the Results Bonus Base Amount (the “Results Bonus Percentage”). The Results Bonus Percentage shall be the percentage set forth on Schedule 5(b)(i)(A) hereto that corresponds to the respective percentages by which Parent has achieved the EBITDA and revenue targets established by the Board of Parent, with input from Executive, for the applicable year, as determined by the Compensation Committee of the Board of Parent (the “Budget Target”). For purposes of determining the Results Bonus Percentage for 2006, the parties acknowledge and agree that (y) any revenue or EBITDA attributable to any assets of the LIN Companies that are divested prior to January 1, 2007, or with respect to which a contract to divest has been entered into prior to January 1, 2007, shall be excluded from the calculation of actual revenue and EBITDA for such year (and shall be subtracted from the corresponding amount designated as the Budget Target); and (z) Special Recruitment and Severance Expenses (as defined below in Section 24) shall be added into the calculation of actual EBITDA results for 2006. The parties acknowledge and agree that for convenience of reference Schedule 5(b)(i)(B) shows for

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illustrative purposes the amount of the Results Bonus corresponding to each Results Bonus Percentage reflected on Schedule 5(b)(i)(A), and the parties further acknowledge that such figures shall be subject to adjustment in the event of any change to the Results Bonus Base Amount and, in the event of any conflict between Schedules 5(b)(i)(A) and 5(b)(i)(B), Schedule 5(b)(i)(A) shall control.
               (ii) Executive shall be eligible to receive a bonus payment of up to twenty-five percent (25%) of the Base Salary in effect as of the last day of the calendar year to which the foregoing bonus payment relates (the “Performance Bonus”). The award, if any, of a Performance Bonus and the amount thereof shall be determined by Compensation Committee of the Board of Parent based upon its assessment of such factors as it may determine to be relevant, which may include the performance of the LIN Companies and Executive, general business conditions, and the relative achievement by Executive or the LIN Companies of any goals established by the Board of Parent or the Compensation Committee.
     6. Benefits and Expenses. Executive shall receive from the Company such other benefits as may be granted to senior management of the Company generally, including health, dental, life and disability insurance and vacation benefits. In addition, Executive shall be provided with an automobile allowance in accordance with the Company’s then-current plan. The Company shall reimburse Executive for all reasonable travel, entertainment and other expenses which Executive may incur in regard to the business of Company or Parent, in accordance with and subject to the limitations of the Company’s standard practices and policies and Executive’s presentation of such documents and records as Company shall require to substantiate such expenses.
     7. Incentive Equity. The parties acknowledge that as of the Appointment Date, Parent granted to Executive an option the (“Option Grant”) to purchase five hundred thousand (500,000) shares of Parent’s Class A Common Stock, par value $0.01 per share pursuant to the terms and subject to the conditions of the LIN TV Corp. Amended and Restated 2002 Stock Plan (the “Option Plan”) and as further evidenced by that certain Nonqualified Stock Option Letter Agreement, dated July 11, 2006, by and between Parent and Executive (the “Option Agreement”). The Option Grant shall be on the terms and conditions of the Option Plan and the Option Agreement; provided, however, that (a) for purposes of the Option Grant, and notwithstanding anything to the contrary contained in the Option Agreement, the term “Cause” shall have the meaning ascribed to such term in this Agreement; and (b) in the event of a Change in Control (as hereinafter defined in Section 24) (and notwithstanding the definition of such term in the Option Agreement) the vesting of the Option Grant shall accelerate and shall be deemed fully vested as of such Change in Control. For the avoidance of doubt, the vesting of the Option Grant shall not accelerate in the event of any termination of this Agreement, including upon a termination Without Cause or with Good Reason; provided, however, that if Executive is able to demonstrate that (i) he was terminated by the LIN Companies Without Cause in anticipation of a Change in Control and (ii) such anticipated Change in Control occurs, then Executive will be deemed for purposes of the Option Grant, to have remained employed through the consummation of the Change in Control, and the vesting of the Option Grant shall accelerate as described in the preceding sentence.

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     8. Termination. This Agreement and the employment of Executive hereunder may be terminated as follows:
          (a) By the LIN Companies for “Cause.” Subject to such other terms of this Agreement, the LIN Companies may terminate this Agreement and the employment of Executive hereunder for “Cause” by action of the Board of Parent if the Executive:
               (i) has been convicted of, or entered a pleading of guilty or nolo contendre (or its equivalent in the applicable jurisdiction) to any criminal offense (whether or not in connection whether the performance by Executive of his obligations and duties under this Agreement), excluding offenses under road traffic laws, or misdemeanor offenses, that are subject only to a fine or non-custodial penalty;
               (ii) has committed an act or omission involving dishonesty or fraud;
               (iii) has willfully refused or willfully failed to perform his obligations and duties under this Agreement or the duties properly assigned to him in accordance with the terms and conditions of this Agreement, and Executive has the physical capacity to perform such obligations or duties; or
               (iv) has engaged in gross negligence or willful misconduct with respect to any of the LIN Companies or any of their affiliates or subsidiaries.
          (b) By the LIN Companies “Without Cause.” The LIN Companies may terminate this Agreement and the employment of Executive hereunder at any time, in Parent’s sole discretion, for any reason whatsoever or for no reason, which termination shall constitute a termination “Without Cause.”
          (c) By Executive for Good Reason. Executive may terminate this Agreement and his employment hereunder in the event of any of the following (each of which shall constitute “Good Reason”) and the LIN Companies shall have failed to have reasonably remedied such condition within thirty (30) days following written notice from Executive setting forth in reasonable detail the condition giving rise to such Good Reason:
               (i) either of the LIN Companies fails to perform its respective obligations or breaches any of its covenants or warranties under this Agreement;
               (ii) the relocation of Executive’s primary office to a location that is more than thirty-five (35) miles from both of (A) the Company’s headquarters in Rhode Island, unless such office is moved closer to Executive’s primary residence at the time of such relocation, and (B) Executive’s residence at the time of such relocation; or
               (iii) the Board of Parent or the board of directors of the Company approves, without Executive’s consent or for reasons other than those set forth in Section 8(a), (A) a reduction in Executive’s Base Salary, the Results Bonus Base Amount or the target amount for the Performance Bonus, or (B) the assignment to Executive of any duties inconsistent in any material respect with, or effect a material diminution of, Executive’s duties,

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titles, offices, or responsibilities with the Parent or the Company, or any demotion of Executive from, or any failure to reelect or reappoint Executive to any of such positions (except in connection with the termination of Executive’s employment for disability or Cause or as a result of Executive’s death); provided, however, that with respect to the foregoing clause (B) if subsequent to a Change in Control (as hereinafter defined in Section 24), Executive maintains over the business of the Company substantially the same authority and responsibility with respect thereto that he held prior to such Change in Control, the requirement that the Executive report to officers or the board of parent companies, or a change in the title of Executive, shall not of itself constitute “Good Reason.” Notwithstanding the foregoing, the foregoing clause (B) of this paragraph (ii) shall not apply to Executive’s duties, title, office, responsibilities or status as a director of the Company or Parent.
          (d) By Executive Without Good Reason. Executive may terminate this Agreement and his employment hereunder at any time, for any reason, upon giving to the LIN Companies thirty (30) days’ written notice of termination of this Agreement and Executive’s employment hereunder pursuant to this Section 8(d) (“Notice of Resignation”), during which notice period Executive’s employment and performance of services will continue; provided, however, that Parent may, upon notice to Executive and without reducing Executive’s compensation during such period, excuse Executive from any or all of his duties during such period. The effective date of the termination of Executive’s employment hereunder shall be the date specified in the Notice of Resignation delivered in accordance with this Section 8(d).
          (e) Automatic Termination Upon Death or Disability. This Agreement and Executive’s employment hereunder shall terminate automatically upon the death or “total disability” of Executive. The term “total disability” as used herein shall mean Executive’s inability, with or without reasonable accommodations, to perform the duties of Executive contemplated by Section 3 hereof for a period of, or periods aggregating, six (6) months in any twelve (12) month period as a result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control, unless Executive is granted a leave of absence by the Board of Parent. All determinations as to whether Executive has suffered total disability due to physical or mental illness, loss of capacity or any other medical cause shall be made by a physician who is mutually agreed upon by Executive and a majority of the members of the Nominating and Corporate Governance Committees of the Board of Parent. Executive and the LIN Companies hereby acknowledge that Executive’s ability to perform the duties set forth in Section 3 hereof is of the essence of this Agreement. Termination under this Section 8(e) shall be deemed to be effective (i) as of the time of Executive’s death or (ii) immediately upon determination of Executive’s total disability, as defined above, by a physician mutually agreeable to Executive and the Board of Parent.
     9. Severance for Termination Without Cause or Resignation With Good Reason.
          (a) Subject to the terms and conditions of this Section 9 set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:

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               (i) The Company shall pay to Executive a severance payment (the “Severance Payment”) in an amount equal to the sum of (A) Executive’s Base Salary in effect at the time of such termination and (B) the aggregate amount, if any, of the Results Bonus and Performance Bonus most recently awarded to Executive prior to such termination; provided, however, that if such termination occurs prior to the award of Executive’s initial Results Bonus and Performance Bonus under this Agreement (or the determination that no such award shall be made), the payment under this clause (B) shall be the sum of the maximum applicable Performance Bonus plus the Results Bonus that would otherwise be due had Executive remained employed with the Company (the “Post-Termination Results Bonus”). The Severance Payment shall be due and payable in twenty-six (26) substantially equal payments following such termination; provided, however, that the portion of the Severance Payment comprised of the Post-Termination Results Bonus, if applicable, may be deferred as necessary until the Board of Parent has determined the amount of such Post-Termination Results Bonus.
               (ii) In addition, during the twelve-month period following a termination giving rise to the Severance Payment, the Company shall continue to pay the employer’s normal portion of the costs of Executive’s health and dental insurance premiums in an amount consistent with that paid on the date of termination, provided that Executive chooses to participate in COBRA or a similar health insurance continuation program and provides the Company with proof of such participation. If Executive chooses to receive COBRA coverage from the Company’s group health plans during this twelve-month period, such coverage shall count toward the maximum coverage period permitted under such plan.
          (b) The payment of the Severance Payment and the provision of the benefits described in this Section 9 are expressly contingent on Executive’s execution of a standard severance and release agreement containing only a release of any and all claims by him against the LIN Companies and all predecessors, successors, affiliates and subsidiaries thereof, except for claims relating to (i) the Severance Payment and other post-employment payments and benefits due pursuant to the terms and subject to the conditions of this Agreement; (ii) claims for benefits under the employee benefit plans of the LIN Companies in which Executive participates, and (iii) claims for indemnification or insurance, if applicable, arising following his employment). Notwithstanding anything to the contrary contained herein, Employer retains the right to terminate the initiation or continuation of the Severance Payment and other benefits described in this Section 9 and to recover from Executive any and all amounts previously paid (as well as to pursue any other remedies available at law or in equity) if it discovers that Executive engaged in any fraud, theft, embezzlement, serious or substantial misconduct materially injuring the LIN Companies’ reputation, or gross negligence while employed by the Company or if Executive materially breaches this Agreement, including any breach by Executive of his obligations and covenants under Sections 10, 11, or 12 hereof.
          (c) Subject to such adjustments as may be necessary in accordance with the proviso set forth in the last sentence of Section 9(a)(i), all payments made under this Section 9 shall be made to Executive at the same interval as payments of salary were made to Executive immediately prior to termination. Notwithstanding the foregoing or anything to the contrary contained herein, if the Company determines that Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code (as hereinafter defined), or any successor thereto or as such may be amended hereafter (“Section 409A”), then to the extent necessary to

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satisfy the requirements of Section 409A, any portion of the severance compensation under this Section 9 that shall constitute deferred compensation within the meaning of Section 409A shall not be due and payable to Executive until the date that is six (6) months after the date of termination, if necessary to avoid tax penalties under Section 409A. In the event of such delay in payment, on the day following the expiration of such six month period Executive shall be paid the delayed portion of the severance compensation plus interest for the period of such delay, which interest shall be calculated at a rate equal to the interest rate then earned by the LIN Companies’ excess cash balances on bank deposit.
          (d) Except as expressly provided in paragraph (a) above, upon the termination of this Agreement and Executive’s employment hereunder (including for Cause or without Good Reason, or upon Death or Disability pursuant, respectively, to Sections 8(a), 8(d) and 8(e)), Executive shall not be entitled to any payments hereunder, other than for Accrued Obligations, which the Company shall pay to Executive in a lump sum immediately following such termination. For purposes of this Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of Executive’s accrued but unpaid Base Salary through the date of death or termination of employment, as the case may be; (ii) any accrued but unpaid vacation or expense reimbursements; (iii) any then declared but unpaid Results Bonus and Performance Bonus, as applicable, with respect to the fiscal year preceding the fiscal year in which the termination occurs; (iv) any (A) Results Bonus and Performance Bonus for the fiscal year in which the termination occurs, as applicable, pro rated for service through the date of termination (and, if not determined as of the date of termination, such payment, if any, to be due and payable reasonably following the determination of such amounts) or (B) Results Bonus and Performance Bonus earned for that year if termination occurs at the end of the year but prior to payment; provided, however, Executive shall receive no payment under (A) or (B) upon a termination by the LIN Companies for Cause; and (v) any compensation previously earned but deferred by Executive (together with interest, to the extent and in the manner applicable pursuant to terms and subject to the conditions of Section 9(c)) prior to the date of termination that has not yet been paid.
     10. Non-Disclosure.
          (a) Executive acknowledges that during the period of his employment with the Company prior to the Appointment Date, he has had, and thereafter during the Service Period, he will have, access to trade secrets and other confidential or proprietary information of the LIN Companies and their respective affiliates and subsidiaries (“Confidential Information”). Executive acknowledges that as used herein, Confidential Information includes, but is not limited to, all methods, processes, techniques, practices, pricing information, billing histories, customer lists or requirements, employee lists, salary information, personnel matters, financial data, operating results, plans, contractual relationships, projections for new business opportunities for new or developing businesses, research, reports, and technological innovations in any stage of development. Confidential Information also includes, but is not limited to, all notes, records, software, drawings, handbooks, manuals, policies, contracts, memoranda, sales files, or any other documents generated or compiled by any employee of the LIN Companies or any of its respective affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any data or information that has been voluntarily disclosed to the public or the LIN Companies’ respective competitors by either of the LIN Companies (except

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where such public disclosure has been made by Executive or another without authorization) or that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.
          (b) Executive agrees that, both during the Service Period and after the termination of his employment hereunder for any reason, he will use his reasonable best efforts and utmost diligence to preserve, protect, and prevent the disclosure of such Confidential Information, and that he will not, either directly or indirectly, use, misappropriate, disclose or aid any other person in disclosing such Confidential Information, unless done so on behalf of the LIN Companies or to the extent required by law.
          (c) All Confidential Information is, and shall remain, the exclusive property of the LIN Companies, and Executive hereby covenants and agrees that he shall promptly return all such information to the LIN Companies upon termination of this Agreement or at any other time when requested by the LIN Companies.
     11. Non-Competition.
          (a) During the Service Period and for one (1) year after the termination of this Agreement for any reason, whether with or Without Cause or whether upon resignation with or without Good Reason, Executive shall not Compete (as hereinafter defined) with any material business then conducted by the LIN Companies or their respective affiliates or subsidiaries (collectively, “LIN”) without the prior written consent of the LIN Companies; except that, notwithstanding this Section 11, Executive may perform any duties on behalf of the LIN Companies as the Board of Parent shall approve and direct. For purposes of this Agreement, the term “Compete” shall mean engaging in a business as a more than five percent (5%) stockholder or other holder of a five percent (5%) or greater equity interest of any Person (as hereinafter defined in Section 24) (whether direct or indirect, including the right to acquire such percentage equity interest), as an employee, a partner, an agent, a consultant, or any other individual representative capacity of, to or for any Person, as an officer of any Person, or a member of the board of directors, board of managers, or other managing body of such Person (unless Executive’s duties, responsibilities, and activities, including supervisory activities, for or on behalf of such Person or in such business are not related in any way to such “competitive” activity) if it involves:
               (i) owning or Managing (as defined below in Section 24) one or more local television stations in any designated market area in which the Company or any direct or indirect subsidiary thereof (a “Subsidiary”) owns or Manages, one or more local television stations (the “Restricted Markets”); or
               (ii) rendering services or advice pertaining to the business or operation of television stations in a Restricted Market, or on behalf of, any Person which is in competition with the Company or any of its affiliates or subsidiaries.
          (b) Upon and subject to reasonable notice and information being provided to the LIN Companies by Executive prior to Executive’s entering into a position or association

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which may cause Executive to engage in activities in breach of paragraph (a) above, Parent will conduct a timely review of such proposed position or association and notify Executive in writing regarding Parent’s view as to whether Executive will thereby breach the terms and conditions of paragraph (a) above.
     12. Non-Solicitation. Executive agrees that, during the twelve (12) month period immediately following termination of this Agreement, for whatever reason, with or without Cause or whether resignation with or without Good Reason, Executive shall not directly or indirectly solicit, influence or entice, or attempt to solicit, influence or entice, or hire any executive, employee, or consultant of LIN to cease his relationship with LIN or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venturer or supplier of LIN to terminate such person’s relationship with LIN, in order to be employed by or do business with a Person that Competes with the LIN Companies or with any other entity that derives benefit from the production, marketing, broadcasting or other distribution or syndication of products, services, programs or other content that compete with products then produced or services, programs or other content then being provided, marketed, broadcast, distributed or syndicated by LIN or the feasibility for production of which LIN is then actually studying or is preparing to market or is developing; provided, however, that this Section 12 shall apply only within the geographic area set forth in Schedule 12 hereto.
     13. Acknowledgment of Restrictive Covenants. Executive acknowledges that the covenants specified in Sections 10, 11, 12, and 15 hereof (collectively, the “Protective Provisions”) contain reasonable limitations as to time, geographic area, and scope of activities to be restricted and that such promises do not impose a greater restraint on Executive than is necessary to protect the goodwill, Confidential Information, trade secrets, customer and employee relations, and other legitimate business interests of the LIN Companies. Executive also acknowledges and agrees that any violation of the covenants set forth in the Protective Provisions would bestow an unfair competitive advantage upon any Person, which might benefit from such violation, and would necessarily result in substantial and irreparable damage and loss to the LIN Companies.
     14. No Inconsistent Obligation. In order to induce the LIN Companies to enter into this Agreement, Executive represents and warrants to each of the LIN Companies that neither the execution nor the performance of this Agreement by Executive will violate or conflict in any way with any other agreement to which Executive may be bound, or with any other duties imposed upon Executive by corporate or other statutory or common law.
     15. Intellectual Property. Executive and the LIN Companies hereby covenant and agree that all intellectual property of any kind, whether now or later created, developed or produced, developed by Executive, whether directly or indirectly, in connection with services rendered by Executive for or on behalf of the LIN Companies, or from the use of premises or property owned, leased, licensed or contracted for by the LIN Companies, both prior to and subsequent to the date of this Agreement, or otherwise developed by Executive during the Service Period which is in any way related to the Company’s business, as conducted or proposed to be conducted, shall be the property of the Company. Executive hereby assigns to the Company any and all rights and interests he now has or may hereafter acquire in and to such intellectual property.

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     16. Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery when delivered by hand, (b) on the date of transmission when sent by facsimile transmission during normal business hours with telephone confirmation of receipt, (c) one day after dispatch when sent by reputable overnight courier maintaining records of receipt, or (d) three days after dispatch when sent by registered or certified mail, postage prepaid, return receipt requested, all addressed as set forth on Schedule 16 attached hereto or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
     17. Injunctive Relief; Cumulative Rights. The parties agree that, without limitation of the rights of the LIN Companies with respect to any other breach of this Agreement, the harm to each of the LIN Companies arising from any breach by Executive of the Protective Provisions could not adequately be compensated for by monetary damages, and accordingly each of the LIN Companies shall, in addition to any other remedies available to it at law or in equity, be entitled to seek and, if so ordered by a court of competent jurisdiction, obtain, preliminary and permanent injunctive relief against such breach. Executive agrees that the various provisions of this Agreement shall be construed as cumulative, and no one of them is exclusive of the other, or exclusive of any rights allowed by law.
     18. Withholding. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to Executive shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it is legally required to withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholdings as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.
     19. No Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer or director as may be specifically designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or at any prior or subsequent time. Except where the context otherwise requires, wherever used the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense.
     20. Severability. If any covenant or provision hereof is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the invalidity of any other covenant or provision, each of which is hereby declared to be separate and distinct. If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. If any provision of this Agreement is declared invalid or unenforceable for any reason other than overbreadth, the offending provision will be

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modified so as to maintain the essential benefits of the bargain among the parties hereto to the maximum extent possible, consistent with law and public policy.
     21. Amendment. No amendment, modification, waiver, termination or discharge of any provision of this Agreement, or consent to any departure therefrom by either party hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by each of the LIN Companies and Executive, and each such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which it is given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by each of the LIN Companies and Executive.
     22. Choice of Law and Forum. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Rhode Island. Employee hereby (a) submits to personal jurisdiction in the State of Rhode Island for any action arising out of or in connection with this Agreement; (b) waives any and all personal rights under the laws of any state to object to jurisdiction within the State of Rhode Island; and (c) agrees that for any cause of action arising out of or in connection with this Agreement, venue is solely proper in any state or federal court within Rhode Island.
     23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
     24. Certain Definitions. The capitalized terms contained and used in this Agreement which are defined below shall have the respective meanings ascribed to them as follows:
          (a) Change in Control” shall mean the occurrence of any of the following events:
               (i) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of Parent to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than one or more members of the Shareholder Group;
               (ii) a majority of the Board of Parent shall consist of Persons who are not Continuing Directors;
               (iii) the acquisition by any Person or Group (other than (A) one or more members of the Shareholder Group or (B) with respect to a transferee of shares of Class C Common Stock, par value $0.01 per share, of Parent, (1) one or more members of the Shareholder Group or (2) any Person approved by an affirmative vote of no less than two-thirds of the disinterested members of the Board of Parent) of the power, directly or indirectly, to vote

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or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of Parent;
               (iv) the acquisition by any Person or Group of shares of the capital stock of Parent representing in the aggregate more than 40% of the issued and outstanding shares of such capital stock and, as of the time of such acquisition, no other Person or Group holds, in the aggregate, a greater number of such shares of capital stock;
               (v) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than to (A) a wholly-owned subsidiary of Parent or the Company or (B) one or more members of the Shareholder Group; or
               (vi) Parent shall cease, whether directly or indirectly through one or more wholly-owned subsidiaries, to have the power to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of the Company.
          (b) Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations or other guidelines of general applicability promulgated thereunder.
          (c) Continuing Directors” shall mean any Person who (i) was a member of the Board of Parent on the Appointment Date, (ii) is thereafter nominated for election or elected to the Board of Parent with the affirmative vote of a majority of the Continuing Directors who are members of such Board of Parent at the time of such nomination or election, or (iii) is a member of the Board of Parent and also a member of the Shareholder Group.
          (d) Group” means any group of related Persons for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
          (e) Manage” (or “Managing”) means with respect to the business or operation of a television station, (i) the provision of management services, (ii) the right to program, or select a substantial portion of the programming of, such station, including through a local marketing agreement, time brokerage agreement, joint sales agreement, shared services agreement, or other similar agreements (collectively, a “Services Agreement”), or (iii) the sale of, or the right to sell, the advertising of such station through a Services Agreement.
          (f) Person” shall mean an individual, a corporation, limited liability company, a partnership, an association, a trust or any other entity or organization, including any other form of business entity or any government or political subdivision or an agency or instrumentality thereof.
          (g) Shareholder Group” shall mean HM Capital Partners, LLC, and any Person controlling, controlled by or under common control with it.
          (h) Special Recruitment and Severance Expenses” shall mean the following expenses of the LIN Companies: (i) expenses incurred in connection with the

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retirement of Gary R. Chapman and related severance payments and expenses and (ii) fees and expenses incurred with respect to the recruitment and severance in 2006, to the extent applicable, of senior management of the LIN Companies or directors of Parent or other similar one-time expenses relating to any corporate restructuring in 2006 approved by the Board of Parent or any committee thereof, including recruitment and executive search fees and expenses and severance payments and related expenses.
     25. Interpretation. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. Except where the context requires otherwise, whenever used in this Agreement, the singular includes the plural, the plural includes the singular, the use of any gender is applicable to all genders and the word “or” has the inclusive meaning represented by the phrase “and/or.” The words “include” and “including” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” A reference in this Agreement to a Section, Paragraph, Exhibit or Schedule is to the referenced Section, Paragraph, Exhibit or Schedule of this Agreement. The wording of this Agreement shall be deemed to be the wording mutually chosen by the parties and no rule of strict construction shall be applied against any party. Unless expressly provided otherwise, all dollar figures in this Agreement are in the currency of the United States of America.
     26. Survival. The expiration or termination of this Agreement shall not relieve any party of any obligations that may have accrued hereunder prior to such expiration or termination. The provisions of Sections 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 shall survive the expiration or termination of this Agreement except as otherwise specifically provided in such Sections.
     27. Assignment. The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the LIN Companies and each of its respective successors and assigns. Notwithstanding the foregoing or anything to the contrary contained herein, this Agreement may not be assigned by the LIN Companies without Executive’s prior written consent unless the LIN Companies retain join and several liability with any LIN Company assignee for the financial obligations under this Agreement. This Agreement may not be assigned, in whole or in part, by Executive without the written consent of each of the LIN Companies.
     28. Indemnification. At all times during and after the Service Period the LIN Companies shall indemnify Executive pursuant to the terms and subject to the conditions of the certificate of incorporation and bylaws, respectively, of each of the LIN Companies, as such are in effect as of the Appointment Date. Executive shall have the benefit of continuing directors’ and officers’ insurance coverage at levels no less favorable than those in effect from time to time for members of the Board of Parent and the board of directors of the Company and other members of the LIN Companies’ senior management.
     29. Legal Fees. The LIN Companies shall reimburse one hundred percent (100%) of Executive’s reasonable legal fees incurred in connection with the negotiation and execution of this Agreement up to, but not in excess of, Ten Thousand Dollars ($10,000).

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     30. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Each party hereto will receive by delivery or by facsimile or other electronic transmission a duplicate original of the Agreement executed by each party, and each party agrees that the delivery of the Agreement by facsimile or other electronic transmission will be deemed to be an original of the Agreement so transmitted.
     31. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein, including that certain Severance Agreement, dated as of July 1, 2005, by and among the parties hereto, which Severance Agreement is hereby terminated.
[The remainder of this page is intentionally blank; signature page follows.]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
             
    Executive:    
 
           
    /s/ Vincent L. Sadusky    
         
    Vincent L. Sadusky    
 
           
    LIN TV Corp.    
 
           
 
  By:   /s/ Denise M. Parent
 
   
    Name: Denise M. Parent    
    Title: Vice President General Counsel and Secretary
 
           
    LIN Television Corporation    
 
           
 
  By:   /s/ Denise M. Parent
 
   
    Name: Denise M. Parent    
    Title: Vice President General Counsel and Secretary
 
 
  By:   /s/ Denise M. Parent
 
   
[Signature Page to Employment Agreement]

 


 

                                                                                                           
Percentage:                                                     Revenue                   Schedule 5(b) (i) (A)
               
 
              94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
 
      89.0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %
 
      90.0 %     0 %     25.0 %     30.0 %     35.0 %     40.0 %     45.0 %     50.0 %     55.0 %     60.0 %     65.0 %     70.0 %     75.0 %
 
      91.0 %     0 %     28.8 %     34.0 %     33.3 %     44.5 %     49.8 %     55.0 %     60.3 %     65.5 %     70.8 %     76.0 %     81.3 %
 
      92.0 %     0 %     32.5 %     38.0 %     43.5 %     49.0 %     54.5 %     60.0 %     65.5 %     71.0 %     76.5 %     82.0 %     87.5 %
 
      93.0 %     0 %     36.3 %     42.0 %     47.8 %     53.5 %     59.3 %     65.0 %     70.8 %     76.5 %     82.3 %     88.0 %     93.8 %
 
      94.0 %     0 %     40.0 %     46.0 %     52.0 %     58.0 %     64.0 %     70.0 %     76.0 %     82.0 %     88.0 %     94.0 %     100.0 %
 
      95.0 %     0 %     43.8 %     50.0 %     56.3 %     62.5 %     68.8 %     75.0 %     81.3 %     87.5 %     93.8 %     100.0 %     106.3 %
 
      96.0 %     0 %     47.5 %     54.0 %     60.5 %     67.0 %     73.5 %     80.0 %     86.5 %     93.0 %     99.5 %     106.0 %     112.6 %
E
      97.0 %     0 %     51.3 %     58.0 %     64.8 %     71.5 %     78.3 %     85.0 %     91.8 %     98.5 %     105.3 %     112.0 %     118.8 %
B
      98.0 %     0 %     55.0 %     62.0 %     69.0 %     76.0 %     83.0 %     90.0 %     97.0 %     104.0 %     111.0 %     118.0 %     125.0 %
I
      99.0 %     0 %     58.8 %     66.0 %     73.3 %     80.5 %     87.8 %     95.0 %     102.3 %     109.5 %     116.8 %     124.0 %     131.3 %
T
      100.0 %     0 %     62.5 %     70.0 %     77.5 %     85.0 %     92.5 %     100.0 %     107.5 %     115.0 %     122.5 %     130.0 %     137.5 %
D
      101.0 %     0 %     66.3 %     74.0 %     81.8 %     89.5 %     97.3 %     105.0 %     112.8 %     120.5 %     128.3 %     136.0 %     143.8 %
A
      102.0 %     0 %     70.0 %     78.0 %     86.0 %     94.0 %     102.0 %     110.0 %     118.0 %     126.0 %     134.0 %     142.0 %     150.0 %
 
      103.0 %     0 %     73.8 %     82.0 %     90.3 %     98.5 %     106.8 %     115.0 %     123.3 %     131.5 %     139.8 %     148.0 %     156.3 %
 
      104.0 %     0 %     77.5 %     86.0 %     94.5 %     103.0 %     111.5 %     120.0 %     128.5 %     137.0 %     145.5 %     154.0 %     162.5 %
 
      105.0 %     0 %     81.3 %     90.0 %     98.8 %     107.5 %     116.3 %     125.0 %     133.8 %     142.5 %     151.3 %     160.0 %     168.8 %
 
      106.0 %     0 %     85.0 %     94.0 %     103.0 %     112.0 %     121.0 %     130.0 %     139.0 %     148.0 %     157.0 %     166.0 %     175.0 %
 
      107.0 %     0 %     38.8 %     98.0 %     107.3 %     116.5 %     125.8 %     135.0 %     144.3 %     153.5 %     162.8 %     172.0 %     181.3 %
 
      108.0 %     0 %     92.5 %     102.0 %     111.5 %     121.0 %     130.5 %     140.0 %     149.5 %     159.0 %     168.5 %     178.0 %     187.5 %
 
      109.0 %     0 %     96.3 %     106.0 %     115.8 %     125.5 %     135.3 %     145.0 %     154.8 %     164.5 %     174.3 %     184.0 %     193.8 %
 
      110.0 %     0 %     100.0 %     110.0 %     120.0 %     130.0 %     140.0 %     150.0 %     160.0 %     170.0 %     180.0 %     190.0 %     200.0 %
                                                                                                           
Dollars:                                                        Revenue                   Schedule 5(b) (i) (B)
               
 
              94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
 
      89.0 %                                                                          
 
      90.0 %           93,750       112,500       131,250       150,000       168,750       187,500       206,250       225,000       243,750       262,500       281,250  
 
      91.0 %           107,813       127,500       147,188       166,875       186,563       206,250       225,938       245,625       265,313       285,000       304,638  
 
      92.0 %           121,875       142,500       163,125       183,750       204,375       225,000       245,625       266,250       286,875       307,500       328,125  
 
      93.0 %           135,938       157,500       179,063       200,625       222,188       243,750       265,313       286,875       308,438       330,000       351,563  
 
      94.0 %           150,000       172,500       195,000       217,500       240,000       262,500       285,000       307,500       330,000       352,500       375,000  
 
      95.0 %           164,063       187,500       210,938       234,375       257,813       281,250       304,688       328,125       351,563       375,000       398,438  
 
      96.0 %           178,125       202,500       226,875       251,250       275,625       300,000       324,375       348,750       373,125       397,500       421,875  
E
      97.0 %           192,188       217,500       242,813       268,125       293,438       318,750       344,063       369,375       394,688       420,000       445,313  
B
      98.0 %           206,250       232,500       258,750       285,000       311,250       337,500       363,750       390,000       416,250       442,500       468,750  
I
      99.0 %           220,313       247,500       274,688       301,875       329,063       356,250       383,438       410,625       437,813       465,000       492,188  
T
      100.0 %           234,375       262,500       290,625       318,750       346,875       375,000       403,125       431,250       459,375       487,500       515,625  
D
      101.0 %           248,438       277,500       306,563       335,625       364,688       393,750       422,813       451,875       480,938       510,000       539,063  
A
      102.0 %           262,500       292,500       322,500       352,500       382,500       412,500       442,500       472,500       502,500       532,500       562,500  
 
      103.0 %           276,563       307,500       338,438       369,375       400,313       431,250       462,188       493,125       524,063       555,000       585,938  
 
      104.0 %           290,625       322,500       354,375       386,250       418,125       450,000       481,875       513,750       545,625       577,500       609,375  
 
      105.0 %           304,688       337,500       370,313       403,125       435,938       468,750       501,563       534,375       567,188       600,000       632,813  
 
      106.0 %           318,750       352,500       386,250       420,000       453,750       487,500       521,250       555,000       588,750       622,500       656,250  
 
      107.0 %           332,813       367,500       402,188       436,875       471,563       506,250       540,938       575,625       610,313       645,000       679,688  
 
      108.0 %           346,875       382,500       418,125       453,750       489,375       525,000       560,625       596,250       631,875       667,500       703,125  
 
      109.0 %           360,938       397,500       434,063       470,625       507,188       543,750       580,313       616,875       653,438       690,000       726,563  
 
      110.0 %           375,000       412,500       450,000       487,500       525,000       562,500       600,000       637,500       675,000       712,500       750,000  


 

Schedule 12
Geographic Scope of Non-Solicitation
The geographic scope to which Section 12 shall apply shall be defined as all markets in the United States of America.

 


 

Schedule 16
Notices
     
If to Executive:
  To the address as shall most currently appear on the records of the Company
 
   
 
  With a copy to:
 
   
 
  Paul, Weiss, Rifkind, Wharton & Garrison LLP
 
  1285 Avenue of the Americas
 
  New York, NY 10019-6064
 
  Attn: Michael J. Segal, Esq.
 
  Fax: 212-757-3990
 
   
If to the LIN Companies:
  LIN Television Corporation
 
  4 Richmond Square, Suite 200
 
  Providence, RI 02906
 
  Attn: General Counsel
 
  Fax: (401) 454-2817

 

EX-10.2 3 d44060exv10w2.htm EMPLOYMENT AGREEMENT - EXECUTIVE VICE PRESIDENT TELEVISION exv10w2
 

Exhibit 10.2
Employment Agreement
          This Employment Agreement (this “Agreement”), entered into as of February 22, 2007, and made effective as of September 6, 2006, is by and among, LIN TV Corp., a Delaware corporation (“Parent”), and LIN Television Corporation, a Delaware corporation with its headquarters in Providence, Rhode Island, and a wholly-owned subsidiary of the Parent (the “Company” and, together with Parent, the “LIN Companies”), and Scott Blumenthal, an individual residing in the state of Rhode Island (the “Executive”).
RECITALS:
          Whereas, on September 6, 2006 (the “Appointment Date”), the board of directors of Parent (the “Board of Parent”) and the board of directors of the Company, respectively, appointed Executive to the offices of Executive Vice President Television of each of the LIN Companies;
          Whereas, each of Parent and the Company desire that the Company employ Executive as Executive Vice President Television of the Company, and Executive desires to be employed by the Company in such position, in accordance with the terms and subject to the conditions provided herein;
          Now, Therefore, in consideration of the foregoing and of the respective covenants and agreements of the parties herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:
          1. Employment. The Company shall employ Executive and Executive hereby agrees to serve the LIN Companies on the terms and conditions set forth herein.
          2. Service Period. The term of this Agreement and Executive’s employment hereunder (the “Service Period”) shall be deemed to have commenced as of the Appointment Date and shall continue thereafter until the effective date of termination pursuant to the terms and subject to the conditions of this Agreement.
          3. Position and Duties. During the Service Period, Executive shall serve as the Executive Vice President Television of each of the LIN Companies, reporting to the President and CEO of each of the LIN Companies and, subject to the LIN Companies’ respective Certificates of Incorporation and By-Laws, shall have such authority and duties as may be granted or assigned from time to time by the President and CEO of the LIN Companies.
          4. Attention and Effort. Executive covenants and agrees, at all times during the Service Period, to devote his full business-time efforts, energies and skills to his duties as contemplated by Section 3 above, to serve each of the LIN Companies diligently and to the best of Executive’s ability and at all times to act in compliance with the rules, regulations, policies and procedures of the LIN Companies as shall be in effect from time to time. Executive further covenants and agrees that he will not, directly or indirectly, engage or participate in any other business, profession or occupation for compensation or otherwise at any time during the Service Period which conflicts with the business of the LIN Companies, without the prior written consent


 

of the Board of Parent; provided, that nothing herein shall preclude Executive from accepting appointment to or continuing to serve on any board of directors or trustees of any charitable or not-for-profit organization or from managing his personal, financial or legal affairs; provided, in each case, and in the aggregate, that such activities do not materially conflict or interfere with the performance of Executive’s duties hereunder or conflict with Sections 10, 11 or 12 of this Agreement in any material respect.
          5. Compensation and Other Benefits.
               (a) During the Service Period, Executive shall be paid by the Company an annual base salary in an amount equal to Three Hundred Seventy Five Thousand Dollars ($375,000) (the “Base Salary”), payable in accordance with the Company’s normal payroll practices. The Base Salary shall be reviewed by the Compensation Committee of the Board of Parent no less often than once each calendar year and may be increased, but not decreased, based on such a review.
               (b) Executive shall be eligible to receive, in addition to the Base Salary described above, an annual bonus payment (a “Performance Bonus”) to be determined by December 31 of each calendar year during the Service Period, or as soon thereafter as practicable, but in no event later than March 15 of the subsequent calendar year; which Performance Bonus payment (if any), shall be determined as follows:
                    (i) With respect to the portion of calendar year 2006 prior to the Appointment Date, Executive shall be eligible to receive a Performance Bonus in an amount up to One Hundred Fifty-Eight Thousand Dollars ($158,000), which amount shall be prorated to reflect the portion of the calendar year between January 1 and the Appointment Date. The Performance Bonus payment determined pursuant to this paragraph (i), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee of the Board of Parent (the “Compensation Committee”) based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
                    (ii) With respect to the portion of calendar year 2006 beginning on the Appointment Date and ending on December 31, 2006, Executive shall be eligible to receive a Performance Bonus in an amount up to Two Hundred Thousand Dollars ($200,000) (the “Performance Bonus Amount”), which Performance Bonus Amount shall be prorated to reflect the portion of the calendar year beginning on the Appointment Date and ending on December 31, 2006. The bonus payment determined pursuant to this paragraph (ii), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
                    (iii) With respect to each calendar year during the Service Period beginning on January 1, 2007, if applicable, Executive shall be eligible to receive a Performance Bonus as follows:

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                         (A) Executive shall be eligible to receive a bonus payment in an amount up to 25% of the Performance Bonus Amount, which bonus payment, if any, shall be determined in the sole discretion of the President and CEO of the LIN Companies and the Compensation Committee, based upon such factors as each may determine to be relevant, which may include the performance of the LIN Companies and Executive, general business conditions, and the relative achievement by Executive or the LIN Companies of any goals established by the President and CEO, the Board of Parent or the Compensation Committee.
                         (B) Executive shall be eligible to receive a bonus payment calculated as set forth in this paragraph (B) using a baseline bonus amount equal to seventy-five percent (75%) of the Performance Bonus Amount (the “Results Bonus Base Amount”). The amount of the bonus awarded to Executive, if any, under this paragraph (B) (the “Results Bonus”) shall be an amount calculated as a percentage of the Results Bonus Base Amount (the “Results Bonus Percentage”). The Results Bonus Percentage shall be the percentage set forth on Exhibit 5(b)-1 hereto that corresponds to the respective percentages by which Parent has achieved the EBITDA and revenue targets established by the Board of Parent for the applicable year, as determined by the Compensation Committee of the Board of Parent (the “Budget Target”). The parties acknowledge and agree that for convenience of reference Exhibit 5(b)-2 shows for illustrative purposes the amount of the Results Bonus corresponding to each Results Bonus Percentage reflected on Exhibit 5(b)-1, and the parties further acknowledge that such figures shall be subject to adjustment in the event of any change to the Results Bonus Base Amount and, in the event of any conflict between Exhibits 5(b)-1 and 5(b)-2, Exhibit 5(b)-1 shall control.
          6. Benefits and Expenses. Executive shall receive from the Company such other benefits as may be granted to senior management of the Company generally, including health, dental, life and disability insurance and vacation benefits. In addition, Executive shall be provided with an automobile allowance in accordance with the Company’s then-current plan. The Company shall reimburse Executive for all reasonable travel, entertainment and other expenses which Executive may incur in regard to the business of Company or Parent, in accordance with and subject to the limitations of the Company’s standard practices and policies and Executive’s presentation of such documents and records as Company shall require to substantiate such expenses.
          7. Incentive Equity. The parties acknowledge that as of the Appointment Date, Parent granted to Executive an option (the “Option Grant”) to purchase 200,000 shares of Parent’s Class A Common Stock, par value $0.01 per share pursuant to the terms and subject to the conditions of the LIN TV Corp. Amended and Restated 2002 Stock Plan (the “Option Plan”) and as further evidenced by that certain Nonqualified Stock Option Letter Agreement, dated September 6, 2006, by and between Parent and Executive (the “Option Agreement”). The Option Grant shall be on the terms and conditions of the Option Plan and the Option Agreement; provided, however, that (a) for purposes of the Option Grant, and notwithstanding anything to the contrary contained in the Option Agreement, the term “Cause” shall have the meaning ascribed to such term in this Agreement; and (b) in the event of a Change in Control (as hereinafter defined in Section 24) (and notwithstanding the definition of such term in the Option Agreement) the vesting of the Option Grant shall accelerate and shall be deemed fully vested as of such Change in Control. For the avoidance of doubt, the vesting of the Option Grant shall not

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accelerate in the event of any termination of this Agreement, including upon a termination Without Cause or with Good Reason; provided, however, that if Executive is able to demonstrate that (i) he was terminated by the LIN Companies Without Cause in anticipation of a Change in Control and (ii) such anticipated Change in Control occurs, then Executive will be deemed for purposes of the Option Grant, to have remained employed through the consummation of the Change in Control, and the vesting of the Option Grant shall accelerate as described in the preceding sentence.
          8. Termination. This Agreement and the employment of Executive hereunder may be terminated as follows:
               (a) By the LIN Companies for “Cause.” Subject to such other terms of this Agreement, the LIN Companies may terminate this Agreement and the employment of Executive hereunder for “Cause” by action of the Board of Parent if the Executive:
                    (i) has been convicted of, or entered a pleading of guilty or nolo contendre (or its equivalent in the applicable jurisdiction) to any criminal offense (whether or not in connection with the performance by Executive of his obligations and duties under this Agreement), excluding offenses under road traffic laws, or misdemeanor offenses, that are subject only to a fine or non-custodial penalty;
                    (ii) has committed an act or omission involving dishonesty or fraud;
                    (iii) has willfully refused or willfully failed to perform his obligations and duties under this Agreement or the duties properly assigned to him in accordance with the terms and conditions of this Agreement, and Executive has the physical capacity to perform such obligations or duties; or
                    (iv) has engaged in gross negligence or willful misconduct with respect to any of the LIN Companies or any of their affiliates or subsidiaries.
               (b) By the LIN Companies “Without Cause.” The LIN Companies may terminate this Agreement and the employment of Executive hereunder at any time, in Parent’s sole discretion, for any reason whatsoever or for no reason, which termination shall constitute a termination “Without Cause.”
               (c) By Executive for Good Reason. Executive may terminate this Agreement and his employment hereunder in the event of any of the following (each of which shall constitute “Good Reason”) and the LIN Companies shall have failed to have reasonably remedied such condition within thirty (30) days following written notice from Executive setting forth in reasonable detail the condition giving rise to such Good Reason:
                    (i) either of the LIN Companies fails to perform its respective obligations or breaches any of its covenants or warranties under this Agreement;
                    (ii) the relocation of Executive’s primary office to a location that is more than thirty-five (35) miles from both of (A) the Company’s headquarters in Rhode

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Island, unless such office is moved closer to Executive’s primary residence at the time of such relocation, and (B) Executive’s residence at the time of such relocation; or
                    (iii) the Board of Parent or the board of directors of the Company approves, without Executive’s consent or for reasons other than those set forth in Section 8(a), (A) a reduction in Executive’s Base Salary or the Performance Bonus Amount, or (B) the assignment to Executive of any duties inconsistent in any material respect with, or effect a material diminution of, Executive’s duties, titles, offices, or responsibilities with the Parent or the Company, or any demotion of Executive from, or any failure to reelect or reappoint Executive to any of such positions (except in connection with the termination of Executive’s employment for disability or Cause or as a result of Executive’s death); provided, however, that with respect to the foregoing clause (B) if subsequent to a Change in Control (as hereinafter defined in Section 24), Executive maintains over the business of the Company substantially the same authority and responsibility with respect thereto that he held prior to such Change in Control, the requirement that the Executive report to officers or the board of parent companies, or a change in the title of Executive, shall not of itself constitute “Good Reason.”
               (d) By Executive Without Good Reason. Executive may terminate this Agreement and his employment hereunder at any time, for any reason, upon giving to the LIN Companies thirty (30) days’ written notice of termination of this Agreement and Executive’s employment hereunder pursuant to this Section 8(d) (“Notice of Resignation”), during which notice period Executive’s employment and performance of services will continue; provided, however, that Parent may, upon notice to Executive and without reducing Executive’s compensation during such period, excuse Executive from any or all of his duties during such period. The effective date of the termination of Executive’s employment hereunder shall be the date specified in the Notice of Resignation delivered in accordance with this Section 8(d).
               (e) Automatic Termination Upon Death or Disability. This Agreement and Executive’s employment hereunder shall terminate automatically upon the death or “total disability” of Executive. The term “total disability” as used herein shall mean Executive’s inability, with or without reasonable accommodations, to perform the duties of Executive contemplated by Section 3 hereof for a period of, or periods aggregating, six (6) months in any twelve (12) month period as a result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control, unless Executive is granted a leave of absence by the Board of Parent. All determinations as to whether Executive has suffered total disability due to physical or mental illness, loss of capacity or any other medical cause shall be made by a physician who is mutually agreed upon by Executive and a majority of the members of the Nominating and Corporate Governance Committee of the Board of Parent. Executive and the LIN Companies hereby acknowledge that Executive’s ability to perform the duties set forth in Section 3 hereof is of the essence of this Agreement. Termination under this Section 8(e) shall be deemed to be effective (i) as of the time of Executive’s death or (ii) immediately upon determination of Executive’s total disability, as defined above, by a physician mutually agreeable to Executive and the Board of Parent.
          9. Severance for Termination Without Cause or Resignation With Good Reason.

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               (a) Subject to the terms and conditions of this Section 9 set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:
                    (i) The Company shall pay to Executive a severance payment (the “Severance Payment”) in an amount equal to the sum of (A) Executive’s Base Salary in effect at the time of such termination and (B) the aggregate amount, if any, of the Performance Bonus most recently awarded to Executive pursuant to Section 5(b) prior to such termination; provided, however, that if such termination occurs prior to the award of Executive’s initial Performance Bonus under this Agreement (or the determination that no such award shall be made), the payment under this clause (B) shall be the maximum applicable Performance Bonus that would otherwise be due had Executive remained employed with the Company. The Severance Payment shall be due and payable in twenty six (26) substantially equal payments following such termination; provided, however, that the payment of the portion of the Severance Payment comprised of any Performance Bonus based upon the determination of the achievement of certain results may be deferred as necessary until the Compensation Committee has made the necessary determinations.
                    (ii) In addition, during the twelve-month period following a termination giving rise to the Severance Payment, the Company shall continue to pay the employer’s normal portion of the costs of Executive’s health and dental insurance premiums in an amount consistent with that paid on the date of termination, provided that Executive chooses to participate in COBRA or a similar health insurance continuation program and provides the Company with proof of such participation. If Executive chooses to receive COBRA coverage from the Company’s group health plans during this twelve-month period, such coverage shall count toward the maximum coverage period permitted under such plan.
               (b) The payment of the Severance Payment and the provision of the benefits described in this Section 9 are expressly contingent on Executive’s execution of a standard severance and release agreement containing only a release of any and all claims by him against the LIN Companies and all predecessors, successors, affiliates and subsidiaries thereof, except for claims relating to (i) the Severance Payment and other post-employment payments and benefits due pursuant to the terms and subject to the conditions of this Agreement; (ii) claims for benefits under the employee benefit plans of the LIN Companies in which Executive participates, and (iii) claims for indemnification or insurance, if applicable, arising following his employment. Notwithstanding anything to the contrary contained herein, Employer retains the right to terminate the initiation or continuation of the Severance Payment and other benefits described in this Section 9 and to recover from Executive any and all amounts previously paid (as well as to pursue any other remedies available at law or in equity) if it discovers that Executive engaged in any fraud, theft, embezzlement, serious or substantial misconduct materially injuring the LIN Companies’ reputation, or gross negligence while employed by the Company or if Executive materially breaches this Agreement, including any breach by Executive of his obligations and covenants under Sections 10, 11, or 12 hereof.

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               (c) Subject to such adjustments as may be necessary in accordance with the proviso set forth in the last sentence of Section 9(a)(i), all payments made under this Section 9 shall be made to Executive at the same interval as payments of salary were made to Executive immediately prior to termination. Notwithstanding the foregoing or anything to the contrary contained herein, if the Company determines that Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code (as hereinafter defined), or any successor thereto or as such may be amended hereafter (“Section 409A”), then to the extent necessary to satisfy the requirements of Section 409A, any portion of the severance compensation under this Section 9 that shall constitute deferred compensation within the meaning of Section 409A shall not be due and payable to Executive until the date that is six (6) months after the date of termination, if necessary to avoid tax penalties under Section 409A. In the event of such delay in payment, on the day following the expiration of such six month period Executive shall be paid the delayed portion of the severance compensation plus interest for the period of such delay, which interest shall be calculated at a rate equal to the interest rate then earned by the LIN Companies’ excess cash balances on bank deposit.
               (d) Except as expressly provided in paragraph (a) above, upon the termination of this Agreement and Executive’s employment hereunder (including for Cause or without Good Reason, or upon death or total disability pursuant, respectively, to Sections 8(a), 8(d) and 8(e)), Executive shall not be entitled to any payments hereunder, other than for Accrued Obligations, which the Company shall pay to Executive in a lump sum immediately following such termination. For purposes of this Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of Executive’s accrued but unpaid Base Salary through the date of death or termination of employment, as the case may be; (ii) any accrued but unpaid vacation or expense reimbursements; (iii) any then declared but unpaid Performance Bonus, as applicable, with respect to the fiscal year preceding the fiscal year in which the termination occurs; (iv) any (A) Performance Bonus for the fiscal year in which the termination occurs, as applicable, pro rated for service through the date of termination (and, if not determined as of the date of termination, such payment, if any, to be due and payable reasonably following the determination of such amounts) or (B) Performance Bonus earned for that year if termination occurs at the end of the year but prior to payment; provided, however, Executive shall receive no payment under (A) or (B) upon a termination by the LIN Companies for Cause; and (v) any compensation previously earned but deferred by Executive (together with interest, to the extent and in the manner applicable pursuant to terms and subject to the conditions of Section 9(c)) prior to the date of termination that has not yet been paid.
          10. Non-Disclosure.
               (a) Executive acknowledges that during the period of his employment with the Company prior to the Appointment Date, he has had, and thereafter during the Service Period, he will have, access to trade secrets and other confidential or proprietary information of the LIN Companies and their respective affiliates and subsidiaries (“Confidential Information”). Executive acknowledges that as used herein, Confidential Information includes, but is not limited to, all methods, processes, techniques, practices, pricing information, billing histories, customer lists or requirements, employee lists, salary information, personnel matters, financial data, operating results, plans, contractual relationships, projections for new business opportunities for new or developing businesses, research, reports, and technological innovations

- 7 -


 

in any stage of development. Confidential Information also includes, but is not limited to, all notes, records, software, drawings, handbooks, manuals, policies, contracts, memoranda, sales files, or any other documents generated or compiled by any employee of the LIN Companies or any of its respective affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any data or information that has been voluntarily disclosed to the public or the LIN Companies’ respective competitors by either of the LIN Companies (except where such public disclosure has been made by Executive or another without authorization) or that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.
               (b) Executive agrees that, both during the Service Period and after the termination of his employment hereunder for any reason, he will use his reasonable best efforts and utmost diligence to preserve, protect, and prevent the disclosure of such Confidential Information, and that he will not, either directly or indirectly, use, misappropriate, disclose or aid any other person in disclosing such Confidential Information, unless done so on behalf of the LIN Companies or to the extent required by law.
               (c) All Confidential Information is, and shall remain, the exclusive property of the LIN Companies, and Executive hereby covenants and agrees that he shall promptly return all such information to the LIN Companies upon termination of this Agreement or at any other time when requested by the LIN Companies.
          11. Non-Competition.
               (a) During the Service Period and for one (1) year after the termination of this Agreement for any reason, whether with or Without Cause or whether upon resignation with or without Good Reason, Executive shall not Compete (as hereinafter defined) with any material business then conducted by the LIN Companies or their respective affiliates or subsidiaries (collectively, “LIN”) without the prior written consent of the LIN Companies; except that, notwithstanding this Section 11, Executive may perform any duties on behalf of the LIN Companies as the Board of Parent shall approve and direct. For purposes of this Agreement, the term “Compete” shall mean engaging in a business as a more than five percent (5%) stockholder or other holder of a five percent (5%) or greater equity interest of any Person (as hereinafter defined in Section 24) (whether direct or indirect, including the right to acquire such percentage equity interest), as an employee, a partner, an agent, a consultant, or any other individual representative capacity of, to or for any Person, as an officer of any Person, or a member of the board of directors, board of managers, or other managing body of such Person (unless Executive’s duties, responsibilities, and activities, including supervisory activities, for or on behalf of such Person or in such business are not related in any way to such “competitive” activity) if it involves:
                    (i) owning or Managing (as defined below in Section 24) one or more local television stations in any designated market area in which the Company or any direct or indirect subsidiary thereof (a “Subsidiary”) owns or Manages, one or more local television stations (the “Restricted Markets”); or

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                    (ii) rendering services or advice pertaining to the business or operation of television stations in a Restricted Market, or on behalf of, any Person which is in competition with the Company or any of its affiliates or subsidiaries.
               (b) Upon and subject to reasonable notice and information being provided to the LIN Companies by Executive prior to Executive’s entering into a position or association which may cause Executive to engage in activities in breach of paragraph (a) above, Parent will conduct a timely review of such proposed position or association and notify Executive in writing regarding Parent’s view as to whether Executive will thereby breach the terms and conditions of paragraph (a) above.
          12. Non-Solicitation. Executive agrees that, during the twelve (12) month period immediately following termination of this Agreement, for whatever reason, with or without Cause or whether resignation with or without Good Reason, Executive shall not directly or indirectly solicit, influence or entice, or attempt to solicit, influence or entice, or hire any executive, employee, or consultant of LIN to cease his relationship with LIN or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venturer or supplier of LIN to terminate such person’s relationship with LIN, in order to be employed by or do business with a Person that Competes with the LIN Companies or with any other entity that derives benefit from the production, marketing, broadcasting or other distribution or syndication of products, services, programs or other content that compete with products then produced or services, programs or other content then being provided, marketed, broadcast, distributed or syndicated by LIN or the feasibility for production of which LIN is then actually studying or is preparing to market or is developing; provided, however, that this Section 12 shall apply only within the geographic area set forth in Schedule 12 hereto.
          13. Acknowledgment of Restrictive Covenants. Executive acknowledges that the covenants specified in Sections 10, 11, 12, and 15 hereof (collectively, the “Protective Provisions”) contain reasonable limitations as to time, geographic area, and scope of activities to be restricted and that such promises do not impose a greater restraint on Executive than is necessary to protect the goodwill, Confidential Information, trade secrets, customer and employee relations, and other legitimate business interests of the LIN Companies. Executive also acknowledges and agrees that any violation of the covenants set forth in the Protective Provisions would bestow an unfair competitive advantage upon any Person, which might benefit from such violation, and would necessarily result in substantial and irreparable damage and loss to the LIN Companies.
          14. No Inconsistent Obligation. In order to induce the LIN Companies to enter into this Agreement, Executive represents and warrants to each of the LIN Companies that neither the execution nor the performance of this Agreement by Executive will violate or conflict in any way with any other agreement to which Executive may be bound, or with any other duties imposed upon Executive by corporate or other statutory or common law.
          15. Intellectual Property. Executive and the LIN Companies hereby covenant and agree that all intellectual property of any kind, whether now or later created, developed or produced, developed by Executive, whether directly or indirectly, in connection with services rendered by Executive for or on behalf of the LIN Companies, or from the use of premises or

- 9 -


 

property owned, leased, licensed or contracted for by the LIN Companies, both prior to and subsequent to the date of this Agreement, or otherwise developed by Executive during the Service Period which is in any way related to the Company’s business, as conducted or proposed to be conducted, shall be the property of the Company. Executive hereby assigns to the Company any and all rights and interests he now has or may hereafter acquire in and to such intellectual property.
          16. Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery when delivered by hand, (b) on the date of transmission when sent by facsimile transmission during normal business hours with telephone confirmation of receipt, (c) one day after dispatch when sent by reputable overnight courier maintaining records of receipt, or (d) three days after dispatch when sent by registered or certified mail, postage prepaid, return receipt requested, all addressed as set forth on Schedule 16 attached hereto or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
          17. Injunctive Relief; Cumulative Rights. The parties agree that, without limitation of the rights of the LIN Companies with respect to any other breach of this Agreement, the harm to each of the LIN Companies arising from any breach by Executive of the Protective Provisions could not adequately be compensated for by monetary damages, and accordingly each of the LIN Companies shall, in addition to any other remedies available to it at law or in equity, be entitled to seek and, if so ordered by a court of competent jurisdiction, obtain, preliminary and permanent injunctive relief against such breach. Executive agrees that the various provisions of this Agreement shall be construed as cumulative, and no one of them is exclusive of the other, or exclusive of any rights allowed by law.
          18. Withholding. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to Executive shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it is legally required to withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholdings as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.
          19. No Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer or director as may be specifically designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or at any prior or subsequent time. Except where the context otherwise requires, wherever used the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense.

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          20. Severability. If any covenant or provision hereof is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the invalidity of any other covenant or provision, each of which is hereby declared to be separate and distinct. If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. If any provision of this Agreement is declared invalid or unenforceable for any reason other than overbreadth, the offending provision will be modified so as to maintain the essential benefits of the bargain among the parties hereto to the maximum extent possible, consistent with law and public policy.
          21. Amendment. No amendment, modification, waiver, termination or discharge of any provision of this Agreement, or consent to any departure therefrom by either party hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by each of the LIN Companies and Executive, and each such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which it is given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by each of the LIN Companies and Executive.
          22. Choice of Law and Forum. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Rhode Island. Employee hereby (a) submits to personal jurisdiction in the State of Rhode Island for any action arising out of or in connection with this Agreement; (b) waives any and all personal rights under the laws of any state to object to jurisdiction within the State of Rhode Island; and (c) agrees that for any cause of action arising out of or in connection with this Agreement, venue is solely proper in any state or federal court within Rhode Island.
          23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
          24. Certain Definitions. The capitalized terms contained and used in this Agreement which are defined below shall have the respective meanings ascribed to them as follows:
               (a) Change in Control” shall mean the occurrence of any of the following events:
                    (i) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of Parent to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than one or more members of the Shareholder Group;

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                    (ii) a majority of the Board of Parent shall consist of Persons who are not Continuing Directors;
                    (iii) the acquisition by any Person or Group (other than (A) one or more members of the Shareholder Group or (B) with respect to a transferee of shares of Class C Common Stock, par value $0.01 per share, of Parent, (1) one or more members of the Shareholder Group or (2) any Person approved by an affirmative vote of no less than two-thirds of the disinterested members of the Board of Parent) of the power, directly or indirectly, to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of Parent;
                    (iv) the acquisition by any Person or Group of shares of the capital stock of Parent representing in the aggregate more than 40% of the issued and outstanding shares of such capital stock and, as of the time of such acquisition, no other Person or Group holds, in the aggregate, a greater number of such shares of capital stock;
                    (v) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than to (A) a wholly-owned subsidiary of Parent or the Company or (B) one or more members of the Shareholder Group; or
                    (vi) Parent shall cease, whether directly or indirectly through one or more wholly-owned subsidiaries, to have the power to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of the Company.
               (b) Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations or other guidelines of general applicability promulgated thereunder.
               (c) Continuing Directors” shall mean any Person who (i) was a member of the Board of Parent on the Appointment Date, (ii) is thereafter nominated for election or elected to the Board of Parent with the affirmative vote of a majority of the Continuing Directors who are members of such Board of Parent at the time of such nomination or election, or (iii) is a member of the Board of Parent and also a member of the Shareholder Group.
               (d) Group” means any group of related Persons for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
               (e) Manage” (or “Managing”) means with respect to the business or operation of a television station, (i) the provision of management services, (ii) the right to program, or select a substantial portion of the programming of, such station, including through a local marketing agreement, time brokerage agreement, joint sales agreement, shared services agreement, or other similar agreements (collectively, a “Services Agreement”), or (iii) the sale of, or the right to sell, the advertising of such station through a Services Agreement.
               (f) Person” shall mean an individual, a corporation, limited liability company, a partnership, an association, a trust or any other entity or organization, including any

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other form of business entity or any government or political subdivision or an agency or instrumentality thereof.
               (g) Shareholder Group” shall mean HM Capital Partners, LLC, and any Person controlling, controlled by or under common control with it.
          25. Interpretation. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. Except where the context requires otherwise, whenever used in this Agreement, the singular includes the plural, the plural includes the singular, the use of any gender is applicable to all genders and the word “or” has the inclusive meaning represented by the phrase “and/or.” The words “include” and “including” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” A reference in this Agreement to a Section, Paragraph, Exhibit or Schedule is to the referenced Section, Paragraph, Exhibit or Schedule of this Agreement. The wording of this Agreement shall be deemed to be the wording mutually chosen by the parties and no rule of strict construction shall be applied against any party. Unless expressly provided otherwise, all dollar figures in this Agreement are in the currency of the United States of America.
          26. Survival. The expiration or termination of this Agreement shall not relieve any party of any obligations that may have accrued hereunder prior to such expiration or termination. The provisions of Sections 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 shall survive the expiration or termination of this Agreement except as otherwise specifically provided in such Sections.
          27. Assignment. The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the LIN Companies and each of its respective successors and assigns. Notwithstanding the foregoing or anything to the contrary contained herein, this Agreement may not be assigned by the LIN Companies without Executive’s prior written consent unless the LIN Companies retain joint and several liability with any of the LIN Companies’ assignee for the financial obligations under this Agreement. This Agreement may not be assigned, in whole or in part, by Executive without the written consent of each of the LIN Companies.
          28. Indemnification. At all times during and after the Service Period the LIN Companies shall indemnify Executive pursuant to the terms and subject to the conditions of the certificate of incorporation and bylaws, respectively, of each of the LIN Companies, as such are in effect as of the Appointment Date. Executive shall have the benefit of continuing directors’ and officers’ insurance coverage at levels no less favorable than those in effect from time to time for members of the Board of Parent and the board of directors of the Company and other members of the LIN Companies’ senior management.
          29. Termination of Prior Agreements. That certain Severance Agreement, by and between Executive and the LIN Companies, dated August 1, 2005, as amended, and that certain Employment Agreement by and between Executive and the LIN Companies, dated August 1, 2005, as amended, be and they are hereby terminated effective as of the Appointment Date.

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          30. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Each party hereto will receive by delivery or by facsimile or other electronic transmission a duplicate original of the Agreement executed by each party, and each party agrees that the delivery of the Agreement by facsimile or other electronic transmission will be deemed to be an original of the Agreement so transmitted.
          31. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein.
[The remainder of this page is intentionally blank; signature page follows.]

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          IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
             
    Executive:
 
           
    /s/ Scott Blumenthal
         
    Scott Blumenthal
 
           
    LIN TV Corp.
 
           
 
  By:   /s/ Denise M. Parent
 
   
 
  Name:   Denise M. Parent    
 
  Title:   Vice President General Counsel and Secretary    
 
           
    LIN Television Corporation
 
           
 
  By:   /s/ Denise M. Parent
 
   
 
  Name:   Denise M. Parent    
 
  Title:   Vice President General Counsel and Secretary    
[Signature Page to Employment Agreement]

 


 

Blumenthal Bonus Matrix for 2007
         
Annual Bonus
    200,000  
Percentage of Annual
    75 %
 
     
Annual Bonus at 100% achievement
    150,000  
Schedule 5(b)-1
Percentage:   Revenue  
 
            94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
 
    89.0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %
 
    90.0 %     0 %     25.0 %     30.0 %     35.0 %     40.0 %     45.0 %     50.0 %     55.0 %     60.0 %     65.0 %     70.0 %     75.0 %
 
    91.0 %     0 %     28.8 %     34.0 %     39.3 %     44.5 %     49.8 %     55.0 %     60.3 %     65.5 %     70.8 %     76.0 %     81.3 %
 
    92.0 %     0 %     32.5 %     38.0 %     43.5 %     49.0 %     54.5 %     60.0 %     65.5 %     71.0 %     76.5 %     82.0 %     87.5 %
 
    93.0 %     0 %     36.3 %     42.0 %     47.8 %     53.5 %     59.3 %     65.0 %     70.8 %     76.5 %     82.3 %     88.0 %     93.8 %
 
    94.0 %     0 %     40.0 %     46.0 %     52.0 %     58.0 %     64.0 %     70.0 %     76.0 %     82.0 %     88.0 %     94.0 %     100.0 %
 
    95.0 %     0 %     43.8 %     50.0 %     56.3 %     62.5 %     68.8 %     75.0 %     81.3 %     87.5 %     93.8 %     100.0 %     106.3 %
 
    96.0 %     0 %     47.5 %     54.0 %     60.5 %     67.0 %     73.5 %     80.0 %     86.5 %     93.0 %     99.5 %     106.0 %     112.5 %
E
    97.0 %     0 %     51.3 %     58.0 %     64.8 %     71.5 %     78.3 %     85.0 %     91.8 %     98.5 %     105.3 %     112.0 %     118.8 %
B
    98.0 %     0 %     55.0 %     62.0 %     69.0 %     76.0 %     83.0 %     90.0 %     97.0 %     104.0 %     111.0 %     118.0 %     125.0 %
I
    99.0 %     0 %     58.8 %     66.0 %     73.3 %     80.5 %     87.8 %     95.0 %     102.3 %     109.5 %     116.8 %     124.0 %     131.3 %
T
    100.0 %     0 %     62.5 %     70.0 %     77.5 %     85.0 %     92.5 %     100.0 %     107.5 %     115.0 %     122.5 %     130.0 %     137.5 %
D
    101.0 %     0 %     66.3 %     74.0 %     81.8 %     89.5 %     97.3 %     105.0 %     112.8 %     120.5 %     128.3 %     136.0 %     143.8 %
A
    102.0 %     0 %     70.0 %     78.0 %     86.0 %     94.0 %     102.0 %     110.0 %     118.0 %     126.0 %     134.0 %     142.0 %     150.0 %
 
    103.0 %     0 %     73.8 %     82.0 %     90.3 %     98.5 %     106.8 %     115.0 %     123.3 %     131.5 %     139.8 %     148.0 %     156.3 %
 
    104.0 %     0 %     77.5 %     86.0 %     94.5 %     103.0 %     111.5 %     120.0 %     128.5 %     137.0 %     145.5 %     154.0 %     162.5 %
 
    105.0 %     0 %     81.3 %     90.0 %     98.8 %     107.5 %     116.3 %     125.0 %     133.8 %     142.5 %     151.3 %     160.0 %     168.8 %
 
    106.0 %     0 %     85.0 %     94.0 %     103.0 %     112.0 %     121.0 %     130.0 %     139.0 %     148.0 %     157.0 %     166.0 %     175.0 %
 
    107.0 %     0 %     88.8 %     98.0 %     107.3 %     116.5 %     125.8 %     135.0 %     144.3 %     153.5 %     162.8 %     172.0 %     181.3 %
 
    108.0 %     0 %     92.5 %     102.0 %     111.5 %     121.0 %     130.5 %     140.0 %     149.5 %     159.0 %     168.5 %     178.0 %     187.5 %
 
    109.0 %     0 %     96.3 %     106.0 %     115.8 %     125.5 %     135.3 %     145.0 %     154.8 %     164.5 %     174.3 %     184.0 %     193.8 %
 
    110.0 %     0 %     100.0 %     110.0 %     120.0 %     130.0 %     140.0 %     150.0 %     160.0 %     170.0 %     180.0 %     190.0 %     200.0 %
 
Schedule 5(b)-2
Dollars:       Revenue  
            94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
 
    89.0 %                                                                        
    90.0 %           37,500       45,000       52,500       60,000       67,500       75,000       82,500     90,000     97,500       105,000       112,500  
 
    91.0 %           43,125       51,000       58,875       66,750       74,625       82,500       90,375       98,250       106,125       114,000       121,875  
    92.0 %           48,750       57,000       65,250       73,500       81,750       90,000       98,250       106,500       114,750       123,000       131,250  
 
    93.0 %           54,375       63,000       71,625       80,250       88,875       97,500       106,125       114,750       123,375       132,000       140,625  
    94.0 %           60,000       69,000       78,000       87,000       96,000       105,000       114,000       123,000       132,000       141,000       150,000  
 
    95.0 %           65,625       75,000       84,375       93,750       103,125       112,500       121,875       131,250       140,625       150,000       159,375  
    96.0 %           71,250       81,000       90,750       100,500       110,250       120,000       129,750       139,500       149,250       159,000       168,750  
E
    97.0 %           76,875       87,000       97,125       107,250       117,375       127,500       137,625       147,750       157,875       168,000       178,125  
B
    98.0 %           82,500       93,000       103,500       114,000       124,500       135,000       145,500       156,000       166,500       177,000       187,500  
I
    99.0 %           88,125       99,000       109,875       120,750       131,625       142,500       153,375       164,250       175,125       186,000       196,875  
T
    100.0 %           93,750       105,000       116,250       127,500       138,750       150,000       161,250       172,500       183,750       195,000       206,250  
D
    101.0 %           99,375       111,000       122,625       134,250       145,875       157,500       169,125       180,750       192,375       204,000       215,625  
A
    102.0 %           105,000       117,000       129,000       141,000       153,000       165,000       177,000       189,000       201,000       213,000       225,000  
 
    103.0 %           110,625       123,000       135,375       147,750       160,125       172,500       184,875       197,250       209,625       222,000       234,375  
 
    104.0 %           116,250       129,000       141,750       154,500       167,250       180,000       192,750       205,500       218,250       231,000       243,750  
 
    105.0 %           121,875       135,000       148,125       161,250       174,375       187,500       200,625       213,750       226,875       240,000       253,125  
 
    106.0 %           127,500       141,000       154,500       168,000       181,500       195,000       208,500       222,000       235,500       249,000       262,500  
 
    107.0 %           133,125       147,000       160,875       174,750       188,625       202,500       216,375       230,250       244,125       258,000       271,875  
 
    108.0 %           138,750       153,000       167,250       181,500       195,750       210,000       224,250       238,500       252,750       267,000       281,250  
 
    109.0 %           144,375       159,000       173,625       188,250       202,875       217,500       232,125       246,750       261,375       276,000       290,625  
 
    110.0 %           150,000       165,000       180,000       195,000       210,000       225,000       240,000       255,000       270,000       285,000       300,000  


 

Schedule 12
Geographic Scope of Non-Solicitation
The geographic scope to which Section 12 shall apply shall be defined as all markets in the United States of America.

 


 

Schedule 16
Notices
     
If to Executive:
  To the address as shall most currently appear on the records of the Company
 
   
If to the LIN Companies:
  LIN Television Corporation
 
  4 Richmond Square, Suite 200
 
  Providence, RI 02906
 
  Attn: General Counsel
 
  Fax: (401) 454-2817

 

EX-10.3 4 d44060exv10w3.htm EMPLOYMENT AGREEMENT - EXECUTIVE VICE PRESIDENT DIGITAL MEDIA exv10w3
 

EXHIBIT 10.3
Employment Agreement
     This Employment Agreement (this “Agreement”), entered into as of February 22, 2007, and made effective as of September 6, 2006, is by and among, LIN TV Corp., a Delaware corporation (“Parent”), and LIN Television Corporation, a Delaware corporation with its headquarters in Providence, Rhode Island, and a wholly-owned subsidiary of the Parent (the “Company” and, together with Parent, the “LIN Companies”), and Gregory M. Schmidt, an individual residing in the state of Rhode Island (the “Executive”).
RECITALS:
     Whereas, on September 6, 2006 (the “Appointment Date”), the board of directors of Parent (the “Board of Parent”) and the board of directors of the Company, respectively, appointed Executive to the offices of Executive Vice President Digital Media of each of the LIN Companies;
     Whereas, each of Parent and the Company desire that the Company employ Executive as Executive Vice President Digital Media of the Company, and Executive desires to be employed by the Company in such position, in accordance with the terms and subject to the conditions provided herein;
     Now, Therefore, in consideration of the foregoing and of the respective covenants and agreements of the parties herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:
     1. Employment. The Company shall employ Executive and Executive hereby agrees to serve the LIN Companies on the terms and conditions set forth herein.
     2. Service Period. The term of this Agreement and Executive’s employment hereunder (the “Service Period”) shall be deemed to have commenced as of the Appointment Date and shall continue thereafter until the effective date of termination pursuant to the terms and subject to the conditions of this Agreement.
     3. Position and Duties. During the Service Period, Executive shall serve as the Executive Vice President Digital Media of each of the LIN Companies, reporting to the President and CEO of each of the LIN Companies and, subject to the LIN Companies’ respective Certificates of Incorporation and By-Laws, shall have such authority and duties as may be granted or assigned from time to time by the President and CEO of the LIN Companies.
     4. Attention and Effort. Executive covenants and agrees, at all times during the Service Period, to devote Executive’s full business-time efforts, energies and skills to Executive’s duties as contemplated by Section 3 above, to serve each of the LIN Companies diligently and to the best of Executive’s ability and at all times to act in compliance with the rules, regulations, policies and procedures of the LIN Companies as shall be in effect from time to time. Executive further covenants and agrees that Executive will not, directly or indirectly, engage or participate in any other business, profession or occupation for compensation or otherwise at any time during the Service Period which conflicts with the business of the LIN


 

Companies, without the prior written consent of the Board of Parent; provided, that nothing herein shall preclude Executive from accepting appointment to or continuing to serve on any board of directors or trustees of any charitable or not-for-profit organization or from managing Executive’s personal, financial or legal affairs; provided, in each case, and in the aggregate, that such activities do not materially conflict or interfere with the performance of Executive’s duties hereunder or conflict with Sections 10, 11 or 12 of this Agreement in any material respect.
5. Compensation and Other Benefits.
          (a) During the Service Period, Executive shall be paid by the Company an annual base salary in an amount equal to Four Hundred Thousand Dollars ($400,000) (the “Base Salary”), payable in accordance with the Company’s normal payroll practices. The Base Salary shall be reviewed by the Compensation Committee of the Board of Parent no less often than once each calendar year and may be increased, but not decreased, based on such a review.
          (b) Executive shall be eligible to receive, in addition to the Base Salary described above, an annual bonus payment (a “Performance Bonus”) to be determined by December 31 of each calendar year during the Service Period, or as soon thereafter as practicable, but in no event later than March 15 of the subsequent calendar year; which Performance Bonus payment (if any), shall be determined as follows:
               (i) With respect to the portion of calendar year 2006 prior to the Appointment Date, Executive shall be eligible to receive a Performance Bonus in an amount up to One Hundred Sixty-Six Thousand Dollars ($166,000), which amount shall be prorated to reflect the portion of the calendar year between January 1 and the Appointment Date. The Performance Bonus payment determined pursuant to this paragraph (i), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee of the Board of Parent (the “Compensation Committee”) based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
               (ii) With respect to the portion of calendar year 2006 beginning on the Appointment Date and ending on December 31, 2006, Executive shall be eligible to receive a Performance Bonus in an amount up to One Hundred Seventy Five Thousand Dollars ($175,000) (the “Performance Bonus Amount”), which Performance Bonus Amount shall be prorated to reflect the portion of the calendar year beginning on the Appointment Date and ending on December 31, 2006. The bonus payment determined pursuant to this paragraph (ii), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
               (iii) With respect to each calendar year during the Service Period beginning on January 1, 2007, if applicable, Executive shall be eligible to receive a Performance Bonus as follows:

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                    (A) Executive shall be eligible to receive a bonus payment in an amount up to 25% of the Performance Bonus Amount, which bonus payment, if any, shall be determined in the sole discretion of the President and CEO of the LIN Companies and the Compensation Committee, based upon such factors as each may determine to be relevant, which may include the performance of the LIN Companies and Executive, general business conditions, and the relative achievement by Executive or the LIN Companies of any goals established by the President and CEO, the Board of Parent or the Compensation Committee.
                    (B) Executive shall be eligible to receive a bonus payment calculated as set forth in this paragraph (B) using a baseline bonus amount equal to seventy-five percent (75%) of the Performance Bonus Amount (the “Results Bonus Base Amount”). The amount of the bonus awarded to Executive, if any, under this paragraph (B) (the “Results Bonus”) shall be an amount calculated as a percentage of the Results Bonus Base Amount (the “Results Bonus Percentage”). The Results Bonus Percentage shall be the percentage set forth on Schedule 5(b)(iii) hereto that corresponds to the respective percentages by which Parent has achieved the digital media revenue targets established by the Board of Parent for the applicable year, as determined by the Compensation Committee of the Board of Parent (the “Budget Target”). The provisions of Schedule 5(b)(iii) shall be reviewed by the parties on an annual basis during the annual budget review process during the Service Period. The parties shall cooperate in good faith when revising Schedule 5(b)(iii) for future years during the Service Period.
     6. Benefits and Expenses. Executive shall receive from the Company such other benefits as may be granted to senior management of the Company generally, including health, dental, life and disability insurance and vacation benefits. In addition, Executive shall be provided with an automobile allowance in accordance with the Company’s then-current plan. The Company shall reimburse Executive for all reasonable travel, entertainment and other expenses which Executive may incur in regard to the business of Company or Parent, in accordance with and subject to the limitations of the Company’s standard practices and policies and Executive’s presentation of such documents and records as Company shall require to substantiate such expenses.
7. Incentive Equity.
          (a) The parties acknowledge that as of the Appointment Date, Parent granted to Executive an option (the “Option Grant”) to purchase sixty thousand (200,000) shares of Parent’s Class A Common Stock, par value $0.01 per share pursuant to the terms and subject to the conditions of the LIN TV Corp. Amended and Restated 2002 Stock Plan (the “Option Plan”) and as further evidenced by that certain Nonqualified Stock Option Letter Agreement, dated September 6, 2006, by and between Parent and Executive (the “Option Agreement”). The Option Grant shall be on the terms and conditions of the Option Plan and the Option Agreement; provided, however, that (i) for purposes of the Option Grant, and notwithstanding anything to the contrary contained in the Option Agreement, the term “Cause” shall have the meaning ascribed to such term in this Agreement; and (ii) in the event of a Change in Control (as hereinafter defined in Section 24) (and notwithstanding the definition of such term in the Option Agreement) the vesting of the Option Grant shall accelerate and shall be deemed fully vested as of such Change in Control. For the avoidance of doubt, the vesting of the Option

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Grant shall not accelerate in the event of any termination of this Agreement, including upon a termination Without Cause or with Good Reason; provided, however, that if Executive is able to demonstrate that (i) Executive was terminated by the LIN Companies Without Cause in anticipation of a Change in Control and (ii) such anticipated Change in Control occurs, then Executive will be deemed for purposes of the Option Grant, to have remained employed through the consummation of the Change in Control, and the vesting of the Option Grant shall accelerate as described in the preceding sentence.
          (b) With respect to all stock options and stock awards granted to Executive prior to the Appointment Date under the 1998 Stock Option Plan, the 1998 Substitute Stock Option Plan, the 1998 Phantom Stock Plan, and the Amended and Restated 2002 Stock Plan of LIN TV (collectively, the “Prior Options and Awards”) which are not otherwise exercisable or vested upon a Change in Control (as hereinafter defined in Section 24 and notwithstanding any conflicting definition of Change in Control), the vesting of each such Prior Option and Award shall accelerate and shall be deemed fully vested as of such Change in Control.
     8. Termination. This Agreement and the employment of Executive hereunder may be terminated as follows:
          (a) By the LIN Companies for “Cause.” Subject to such other terms of this Agreement, the LIN Companies may terminate this Agreement and the employment of Executive hereunder for “Cause” by action of the Board of Parent if the Executive:
               (i) has been convicted of, or entered a pleading of guilty or nolo contendre (or its equivalent in the applicable jurisdiction) to any criminal offense (whether or not in connection with the performance by Executive of Executive’s obligations and duties under this Agreement), excluding offenses under road traffic laws, or misdemeanor offenses, that are subject only to a fine or non-custodial penalty;
               (ii) has committed an act or omission involving dishonesty or fraud;
               (iii) has willfully refused or willfully failed to perform her obligations and duties under this Agreement or the duties properly assigned to her in accordance with the terms and conditions of this Agreement, and Executive has the physical capacity to perform such obligations or duties; or
               (iv) has engaged in gross negligence or willful misconduct with respect to any of the LIN Companies or any of their affiliates or subsidiaries.
          (b) By the LIN Companies “Without Cause.” The LIN Companies may terminate this Agreement and the employment of Executive hereunder at any time, in Parent’s sole discretion, for any reason whatsoever or for no reason, which termination shall constitute a termination “Without Cause.”
          (c) By Executive for Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder in the event of any of the following (each of

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which shall constitute “Good Reason”) and the LIN Companies shall have failed to have reasonably remedied such condition within thirty (30) days following receipt of the Good Reason Notice (as defined below):
               (i) Executive’s Base Salary or Performance Bonus Amount is reduced below the higher of (A) the amount of Base Salary or Performance Bonus Amount (other than pursuant to Section 5(b)(i)) in effect immediately prior to a Change in Control or (B) the highest amount of Base Salary or Performance Bonus Amount in effect at any time thereafter;
               (ii) (A) any failure by the Company to continue in effect or provide plans or arrangements pursuant to which the Executive will be entitled to receive grants relating to the securities of Parent (including, without limitation), stock options, stock appreciation rights, restricted stock or other equity based awards) of the same type as the Executive was participating in immediately prior to the Change in Control (hereinafter referred to as “Securities Plans”) or providing substitutes for such Securities Plans which in the aggregate provide substantially similar economic benefits or (B) the taking of any action by the Company which would adversely effect the Executive’s participation in, or benefits under, any such Securities Plan or its substitute if in the aggregate Executive is not provided substantially similar economic benefits; provided, however, that for these purposes any determination of whether Good Reason exists under clauses (A) or (B) of this paragraph (ii) because Executive is or is not provided substantially similar economic benefits in the aggregate will be made with due consideration given to such Executive’s Base Salary, other cash compensation (if any) and other equity-based incentive programs to which Executive is also entitled to receive, and not solely on the basis of whether Executive is or is not entitled or eligible to receive equity based incentive compensation;
               (iii) Executive’s duties, authority and responsibilities or, in the aggregate, the program of retirement and welfare benefits offered to Executive, are materially and adversely diminished, in comparison to the duties, authority, and responsibilities or the program of benefits, in the aggregate, enjoyed by Executive as of (A) the time immediately prior to a Change in Control or (B) if prior to a Change in Control, as of the date of this Agreement, or Executive is demoted from the position that Executive held as of (Y) the time immediately prior to such Change in Control or (Z) if prior to a Change in Control, as of the date of this Agreement; provided, however, that if, subsequent to a Change in Control, the Executive maintains the same duties, authority and responsibility that Executive held prior to such Change in Control, the requirement that the Executive report to officers or the board of parent companies shall not of itself constitute “Good Reason” unless such officers or board take actions that materially and adversely interfere with the business decisions of Executive with respect to those business matters otherwise subject to Executive’s duties, authority and responsibilities;
               (iv) Executive is required to be based at a location more than 50 miles from the location where Executive was based and performed services on the Appointment Date, or if Executive is required to substantially increase Executive’s business travel obligations;
provided that Executive shall give notice in writing within 90 days after Executive has knowledge of the event forming the basis of Good Reason, which notice shall set forth the

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particulars of such event and the reason why she believes in good faith that Good Reason exists (the “Good Reason Notice”).
          (d) By Executive Without Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder at any time, for any reason, upon giving to the LIN Companies thirty (30) days’ written notice of termination of this Agreement and Executive’s employment hereunder pursuant to this Section 8(d) (“Notice of Resignation”), during which notice period Executive’s employment and performance of services will continue; provided, however, that Parent may, upon notice to Executive and without reducing Executive’s compensation during such period, excuse Executive from any or all of Executive’s duties during such period. The effective date of the termination of Executive’s employment hereunder shall be the date specified in the Notice of Resignation delivered in accordance with this Section 8(d).
          (e) Automatic Termination Upon Death or Disability. This Agreement and Executive’s employment hereunder shall terminate automatically upon the death or “total disability” of Executive. The term “total disability” as used herein shall mean Executive’s inability, with or without reasonable accommodations, to perform the duties of Executive contemplated by Section 3 hereof for a period of, or periods aggregating, six (6) months in any twelve (12) month period as a result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control, unless Executive is granted a leave of absence by the Board of Parent. All determinations as to whether Executive has suffered total disability due to physical or mental illness, loss of capacity or any other medical cause shall be made by a physician who is mutually agreed upon by Executive and a majority of the members of the Nominating and Corporate Governance Committees of the Board of Parent. Executive and the LIN Companies hereby acknowledge that Executive’s ability to perform the duties set forth in Section 3 hereof is of the essence of this Agreement. Termination under this Section 8(e) shall be deemed to be effective (i) as of the time of Executive’s death or (ii) immediately upon determination of Executive’s total disability, as defined above, by a physician mutually agreeable to Executive and the Board of Parent.
     9. Severance for Termination Without Cause or Resignation With Good Reason.
          (a) Initial Three-Year Transition Period. Subject to the terms and conditions of this Sections 9(c) and (d) set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated during the three-year period ending on the third anniversary of the Appointment Date (the “Transition Period”) (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:
               (i) The Company shall pay to Executive an amount calculated in accordance with Exhibit 9(a)(i) hereto (the “Transition Severance Amount”), as adjusted pursuant to the “work down” formula set forth in Section 9(a)(ii) below, to be paid in a lump sum, subject to Section 9(d) hereof.

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               (ii) The Transition Severance Amount shall be reduced pro rata for each day of Executive’s employment hereunder during the Transition Period, provided that in no event shall the reduction exceed seven hundred thirty (730) days or a reduction of two-thirds. By way of illustration and not of limitation or modification of the foregoing:
  (A)   If Executive is terminated without Cause or resigns for Good Reason on the date one year after the Appointment Date, Executive will be entitled to receive the Transition Severance Amount reduced by one-third; if Executive is terminated without Cause or resigns for Good Reason on the date two years after the Appointment Date, Executive will be entitled to receive the Transition Severance Amount reduced by two-thirds;
 
  (B)   If Executive is terminated without Cause or resigns for Good Reason on the date two and one-half years (or 913 days) after the Appointment Date, Executive will receive the Transition Severance Amount reduced by two-thirds because the pro rata adjustment is capped at 730 days.
               (iii) The Company shall provide Executive for a period commencing on the effective date of termination and ending on the earlier of the third anniversary of such date of termination or the Executive’s death (the “Transition Benefits Period”) (subject to reduction as set forth in the provision at the end of this paragraph), life, health, disability and accident insurance benefits and the package of “Executive benefits” substantially similar, individually and in the aggregate, to those which the Executive was receiving immediately prior to the effective termination, or immediately prior to a Change in Control, if greater, including without limitation, transfer of title of a company automobile, medical, dental, vision, life and pension benefits, as if Executive were continuing as an employee of the Company during the Transition Benefits Period, provided, however, that with respect to the provision of insurance benefits during the Transition Benefits Period, Executive shall be obligated to continue to pay that proportion of premiums paid by the Executive immediately prior to such termination or Change in Control, as applicable. The Company shall apply the statutory health care continuation coverage (“COBRA”) provisions as if the Executive were a full-time employee of the Company during the Transition Benefits Period, with the result that (y) the Executive’s spouse and dependents shall be eligible for continued health insurance coverage that is in all respects equivalent to COBRA coverage (“COBRA-Equivalent Coverage”) if an event occurs during the Transition Benefits Period that would have been a “qualifying event” under COBRA had the Executive been an employee of the Company, and (z) the Executive and the Executive’s spouse and dependents shall be eligible for COBRA-Equivalent coverage at the expiration of the Transition Benefits Period and for a period of three years thereafter as if the Executive’s employment with the Company had terminated on the last day of the Transition Benefits Period; provided, however, that the Transition Benefits Period shall be reduced pro rata for each day of Executive’s employment hereunder during the

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Transition Period, provided that in no event shall the reduction exceed seven hundred thirty (730) days or a reduction of two-thirds.
               (iv) The vesting of all Prior Options and Awards which are not otherwise exercisable or vested as of the effective date of termination shall accelerate and each such Prior Option and Award shall be deemed fully vested and exercisable as of the effective date of such termination.
          (b) Post-Transition Period. Subject to the terms and conditions of this Sections 9(c) and (d) set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated after the Transition Period (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:
               (i) The Company shall pay to Executive a severance payment (the “Severance Payment”) in an amount equal to the sum of (A) Executive’s Base Salary in effect at the time of such termination and (B) the aggregate amount, if any, of the Performance Bonus most recently awarded to Executive pursuant to Section 5(b) prior to such termination; provided, however, that if such termination occurs prior to the award of Executive’s initial Performance Bonus under this Agreement (or the determination that no such award shall be made), the payment under this clause (B) shall be the maximum applicable Performance Bonus that would otherwise be due had Executive remained employed with the Company. The Severance Payment shall be due and payable in twenty six (26) substantially equal payments following such termination; provided, however, that the payment of the portion of the Severance Payment comprised of any Performance Bonus based upon the determination of the achievement of certain results may be deferred as necessary until the Compensation Committee has made the necessary determinations.
               (ii) In addition, during the twelve-month period following a termination giving rise to the Severance Payment, the Company shall continue to pay the employer’s normal portion of the costs of Executive’s health and dental insurance premiums in an amount consistent with that paid on the date of termination, provided that Executive chooses to participate in COBRA or a similar health insurance continuation program and provides the Company with proof of such participation. If Executive chooses to receive COBRA coverage from the Company’s group health plans during this twelve-month period, such coverage shall count toward the maximum coverage period permitted under such plan.
               (iii) The vesting of all Prior Options and Awards which are not otherwise exercisable or vested as of the effective date of termination shall accelerate and each such Prior Option and Award shall be deemed fully vested and exercisable as of the effective date of such termination.
          (c) The payment of the Transition Severance Amount or the Severance Payment, as applicable, and the provision of the benefits described in this Section 9 are expressly contingent on Executive’s execution of a standard severance and release agreement containing only a release of any and all claims by Executive against the LIN Companies and all

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predecessors, successors, affiliates and subsidiaries thereof, except for claims relating to (i) the Severance Payment and other post-employment payments and benefits due pursuant to the terms and subject to the conditions of this Agreement; (ii) claims for benefits under the employee benefit plans of the LIN Companies in which Executive participates, and (iii) claims for indemnification or insurance, if applicable, arising following Executive’s employment. Notwithstanding anything to the contrary contained herein, Employer retains the right to terminate the initiation or continuation of the Severance Payment and other benefits described in this Section 9, as applicable, and to recover from Executive any and all amounts previously paid (as well as to pursue any other remedies available at law or in equity) if it discovers that Executive engaged in any fraud, theft, embezzlement, serious or substantial misconduct materially injuring the LIN Companies’ reputation, or gross negligence while employed by the Company or if Executive materially breaches this Agreement, including any breach by Executive of Executive’s obligations and covenants under Sections 10, 11, or 12 hereof.
          (d) Subject to such adjustments as may be necessary in accordance with the proviso set forth in the last sentence of Section 9(b)(i), all payments made under Section 9(b), other than the Transition Severance Amount, shall be made to Executive at the same interval as payments of salary were made to Executive immediately prior to termination. Notwithstanding the foregoing or anything to the contrary contained herein, if the Company determines that Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code (as hereinafter defined), or any successor thereto or as such may be amended hereafter (“Section 409A”), then to the extent necessary to satisfy the requirements of Section 409A, any portion of the severance compensation under this Section 9, that shall constitute deferred compensation within the meaning of Section 409A shall not be due and payable to Executive until the date that is six (6) months after the date of termination, if necessary to avoid tax penalties under Section 409A. In the event of such delay in payment, on the day following the expiration of such six month period Executive shall be paid the delayed portion of the severance compensation plus interest for the period of such delay, which interest shall be calculated at a rate equal to the interest rate then earned by the LIN Companies’ excess cash balances on bank deposit.
          (e) Except as expressly provided in paragraphs (a) or (b) above, upon the termination of this Agreement and Executive’s employment hereunder (including for Cause or without Good Reason, or upon death or total disability pursuant, respectively, to Sections 8(a), 8(d) and 8(e)), Executive shall not be entitled to any payments hereunder, other than for Accrued Obligations, which the Company shall pay to Executive in a lump sum immediately following such termination. For purposes of this Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of Executive’s accrued but unpaid Base Salary through the date of death or termination of employment, as the case may be; (ii) any accrued but unpaid vacation or expense reimbursements; (iii) any then declared but unpaid Performance Bonus, as applicable, with respect to the fiscal year preceding the fiscal year in which the termination occurs; (iv) any (A) Performance Bonus for the fiscal year in which the termination occurs, as applicable, pro rated for service through the date of termination (and, if not determined as of the date of termination, such payment, if any, to be due and payable reasonably following the determination of such amounts) or (B) Performance Bonus earned for that year if termination occurs at the end of the year but prior to payment; provided, however, Executive shall receive no payment under (A) or (B) upon a termination by the LIN Companies for Cause; and (v) any compensation

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previously earned but deferred by Executive (together with interest, to the extent and in the manner applicable pursuant to terms and subject to the conditions of Section 9(c)) prior to the date of termination that has not yet been paid.
     10. Non-Disclosure.
          (a) Executive acknowledges that during the period of Executive’s employment with the Company prior to the Appointment Date, Executive has had, and thereafter during the Service Period, Executive will have, access to trade secrets and other confidential or proprietary information of the LIN Companies and their respective affiliates and subsidiaries (“Confidential Information”). Executive acknowledges that as used herein, Confidential Information includes, but is not limited to, all methods, processes, techniques, practices, pricing information, billing histories, customer lists or requirements, employee lists, salary information, personnel matters, financial data, operating results, plans, contractual relationships, projections for new business opportunities for new or developing businesses, research, reports, and technological innovations in any stage of development. Confidential Information also includes, but is not limited to, all notes, records, software, drawings, handbooks, manuals, policies, contracts, memoranda, sales files, or any other documents generated or compiled by any employee of the LIN Companies or any of its respective affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any data or information that has been voluntarily disclosed to the public or the LIN Companies’ respective competitors by either of the LIN Companies (except where such public disclosure has been made by Executive or another without authorization) or that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.
          (b) Executive agrees that, both during the Service Period and after the termination of Executive’s employment hereunder for any reason, Executive will use Executive’s reasonable best efforts and utmost diligence to preserve, protect, and prevent the disclosure of such Confidential Information, and that he will not, either directly or indirectly, use, misappropriate, disclose or aid any other person in disclosing such Confidential Information, unless done so on behalf of the LIN Companies or to the extent required by law.
          (c) All Confidential Information is, and shall remain, the exclusive property of the LIN Companies, and Executive hereby covenants and agrees that Executive shall promptly return all such information to the LIN Companies upon termination of this Agreement or at any other time when requested by the LIN Companies.
     11. Non-Competition.
          (a) During the Service Period and for one (1) year after the termination of this Agreement for any reason, whether with or Without Cause or whether upon resignation with or without Good Reason, Executive shall not Compete (as hereinafter defined) with any material business then conducted by the LIN Companies or their respective affiliates or subsidiaries (collectively, “LIN”) without the prior written consent of the LIN Companies; except that, notwithstanding this Section 11, Executive may perform any duties on behalf of the LIN Companies as the Board of Parent shall approve and direct. For purposes of this Agreement, the term “Compete” shall mean engaging in a business as a more than five percent (5%) stockholder

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or other holder of a five percent (5%) or greater equity interest of any Person (as hereinafter defined in Section 24) (whether direct or indirect, including the right to acquire such percentage equity interest), as an employee, a partner, an agent, a consultant, or any other individual representative capacity of, to or for any Person, as an officer of any Person, or a member of the board of directors, board of managers, or other managing body of such Person (unless Executive’s duties, responsibilities, and activities, including supervisory activities, for or on behalf of such Person or in such business are not related in any way to such “competitive” activity) if it involves:
               (i) owning or Managing (as defined below in Section 24) one or more local television stations in any designated market area in which the Company or any direct or indirect subsidiary thereof (a “Subsidiary”) owns or Manages, one or more local television stations (the “Restricted Markets”); or
               (ii) rendering services or advice pertaining to the business or operation of television stations in a Restricted Market, or on behalf of, any Person which is in competition with the Company or any of its affiliates or subsidiaries.
          (b) Upon and subject to reasonable notice and information being provided to the LIN Companies by Executive prior to Executive’s entering into a position or association which may cause Executive to engage in activities in breach of paragraph (a) above, Parent will conduct a timely review of such proposed position or association and notify Executive in writing regarding Parent’s view as to whether Executive will thereby breach the terms and conditions of paragraph (a) above.
     12. Non-Solicitation. Executive agrees that, during the twelve (12) month period immediately following termination of this Agreement, for whatever reason, with or without Cause or whether resignation with or without Good Reason, Executive shall not directly or indirectly solicit, influence or entice, or attempt to solicit, influence or entice, or hire any executive, employee, or consultant of LIN to cease his relationship with LIN or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venturer or supplier of LIN to terminate such person’s relationship with LIN, in order to be employed by or do business with a Person that Competes with the LIN Companies or with any other entity that derives benefit from the production, marketing, broadcasting or other distribution or syndication of products, services, programs or other content that compete with products then produced or services, programs or other content then being provided, marketed, broadcast, distributed or syndicated by LIN or the feasibility for production of which LIN is then actually studying or is preparing to market or is developing; provided, however, that this Section 12 shall apply only within the geographic area set forth in Schedule 12 hereto.
     13. Acknowledgment of Restrictive Covenants. Executive acknowledges that the covenants specified in Sections 10, 11, 12, and 15 hereof (collectively, the “Protective Provisions”) contain reasonable limitations as to time, geographic area, and scope of activities to be restricted and that such promises do not impose a greater restraint on Executive than is necessary to protect the goodwill, Confidential Information, trade secrets, customer and employee relations, and other legitimate business interests of the LIN Companies. Executive

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also acknowledges and agrees that any violation of the covenants set forth in the Protective Provisions would bestow an unfair competitive advantage upon any Person, which might benefit from such violation, and would necessarily result in substantial and irreparable damage and loss to the LIN Companies.
     14. No Inconsistent Obligation. In order to induce the LIN Companies to enter into this Agreement, Executive represents and warrants to each of the LIN Companies that neither the execution nor the performance of this Agreement by Executive will violate or conflict in any way with any other agreement to which Executive may be bound, or with any other duties imposed upon Executive by corporate or other statutory or common law.
     15. Intellectual Property. Executive and the LIN Companies hereby covenant and agree that all intellectual property of any kind, whether now or later created, developed or produced, developed by Executive, whether directly or indirectly, in connection with services rendered by Executive for or on behalf of the LIN Companies, or from the use of premises or property owned, leased, licensed or contracted for by the LIN Companies, both prior to and subsequent to the date of this Agreement, or otherwise developed by Executive during the Service Period which is in any way related to the Company’s business, as conducted or proposed to be conducted, shall be the property of the Company. Executive hereby assigns to the Company any and all rights and interests he now has or may hereafter acquire in and to such intellectual property.
     16. Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery when delivered by hand, (b) on the date of transmission when sent by facsimile transmission during normal business hours with telephone confirmation of receipt, (c) one day after dispatch when sent by reputable overnight courier maintaining records of receipt, or (d) three days after dispatch when sent by registered or certified mail, postage prepaid, return receipt requested, all addressed as set forth on Schedule 16 attached hereto or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
     17. Injunctive Relief; Cumulative Rights. The parties agree that, without limitation of the rights of the LIN Companies with respect to any other breach of this Agreement, the harm to each of the LIN Companies arising from any breach by Executive of the Protective Provisions could not adequately be compensated for by monetary damages, and accordingly each of the LIN Companies shall, in addition to any other remedies available to it at law or in equity, be entitled to seek and, if so ordered by a court of competent jurisdiction, obtain, preliminary and permanent injunctive relief against such breach. Executive agrees that the various provisions of this Agreement shall be construed as cumulative, and no one of them is exclusive of the other, or exclusive of any rights allowed by law.
     18. Withholding. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to Executive shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it is legally required to withhold pursuant to any applicable law or regulation. In lieu

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of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholdings as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.
     19. No Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer or director as may be specifically designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or at any prior or subsequent time. Except where the context otherwise requires, wherever used the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense.
     20. Severability. If any covenant or provision hereof is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the invalidity of any other covenant or provision, each of which is hereby declared to be separate and distinct. If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. If any provision of this Agreement is declared invalid or unenforceable for any reason other than overbreadth, the offending provision will be modified so as to maintain the essential benefits of the bargain among the parties hereto to the maximum extent possible, consistent with law and public policy.
     21. Amendment. No amendment, modification, waiver, termination or discharge of any provision of this Agreement, or consent to any departure therefrom by either party hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by each of the LIN Companies and Executive, and each such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which it is given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by each of the LIN Companies and Executive.
     22. Choice of Law and Forum. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Rhode Island. Employee hereby (a) submits to personal jurisdiction in the State of Rhode Island for any action arising out of or in connection with this Agreement; (b) waives any and all personal rights under the laws of any state to object to jurisdiction within the State of Rhode Island; and (c) agrees that for any cause of action arising out of or in connection with this Agreement, venue is solely proper in any state or federal court within Rhode Island.
     23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

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     24. Certain Definitions. The capitalized terms contained and used in this Agreement which are defined below shall have the respective meanings ascribed to them as follows:
          (a) Change in Control” shall mean the occurrence of any of the following events:
               (i) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of Parent to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than one or more members of the Shareholder Group;
               (ii) a majority of the Board of Parent shall consist of Persons who are not Continuing Directors;
               (iii) the acquisition by any Person or Group (other than (A) one or more members of the Shareholder Group or (B) with respect to a transferee of shares of Class C Common Stock, par value $0.01 per share, of Parent, (1) one or more members of the Shareholder Group or (2) any Person approved by an affirmative vote of no less than two-thirds of the disinterested members of the Board of Parent) of the power, directly or indirectly, to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of Parent;
               (iv) the acquisition by any Person or Group of shares of the capital stock of Parent representing in the aggregate more than 40% of the issued and outstanding shares of such capital stock and, as of the time of such acquisition, no other Person or Group holds, in the aggregate, a greater number of such shares of capital stock;
               (v) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than to (A) a wholly-owned subsidiary of Parent or the Company or (B) one or more members of the Shareholder Group; or
               (vi) Parent shall cease, whether directly or indirectly through one or more wholly-owned subsidiaries, to have the power to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of the Company.
          (b) Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations or other guidelines of general applicability promulgated thereunder.
          (c) Continuing Directors” shall mean any Person who (i) was a member of the Board of Parent on the Appointment Date, (ii) is thereafter nominated for election or elected to the Board of Parent with the affirmative vote of a majority of the Continuing Directors who are members of such Board of Parent at the time of such nomination or election, or (iii) is a member of the Board of Parent and also a member of the Shareholder Group.

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          (d) Group” means any group of related Persons for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
          (e) Manage” (or “Managing”) means with respect to the business or operation of a television station, (i) the provision of management services, (ii) the right to program, or select a substantial portion of the programming of, such station, including through a local marketing agreement, time brokerage agreement, joint sales agreement, shared services agreement, or other similar agreements (collectively, a “Services Agreement”), or (iii) the sale of, or the right to sell, the advertising of such station through a Services Agreement.
          (f) Person” shall mean an individual, a corporation, limited liability company, a partnership, an association, a trust or any other entity or organization, including any other form of business entity or any government or political subdivision or an agency or instrumentality thereof.
          (g) Shareholder Group” shall mean HM Capital Partners, LLC, and any Person controlling, controlled by or under common control with it.
     25. Interpretation. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. Except where the context requires otherwise, whenever used in this Agreement, the singular includes the plural, the plural includes the singular, the use of any gender is applicable to all genders and the word “or” has the inclusive meaning represented by the phrase “and/or.” The words “include” and “including” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” A reference in this Agreement to a Section, Paragraph, Exhibit or Schedule is to the referenced Section, Paragraph, Exhibit or Schedule of this Agreement. The wording of this Agreement shall be deemed to be the wording mutually chosen by the parties and no rule of strict construction shall be applied against any party. Unless expressly provided otherwise, all dollar figures in this Agreement are in the currency of the United States of America.
     26. Survival. The expiration or termination of this Agreement shall not relieve any party of any obligations that may have accrued hereunder prior to such expiration or termination. The provisions of Sections 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 shall survive the expiration or termination of this Agreement except as otherwise specifically provided in such Sections.
     27. Assignment. The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the LIN Companies and each of its respective successors and assigns. Notwithstanding the foregoing or anything to the contrary contained herein, this Agreement may not be assigned by the LIN Companies without Executive’s prior written consent unless the LIN Companies retain joint and several liability with any of the LIN Companies’ assignee for the financial obligations under this Agreement. This Agreement may not be assigned, in whole or in part, by Executive without the written consent of each of the LIN Companies.

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     28. Indemnification. At all times during and after the Service Period the LIN Companies shall indemnify Executive pursuant to the terms and subject to the conditions of the certificate of incorporation and bylaws, respectively, of each of the LIN Companies, as such are in effect as of the Appointment Date. Executive shall have the benefit of continuing directors’ and officers’ insurance coverage at levels no less favorable than those in effect from time to time for members of the Board of Parent and the board of directors of the Company and other members of the LIN Companies’ senior management.
     29. Termination of Prior Agreements. That certain Severance Compensation Agreement, by and between Executive and the Company, dated as of February 27, 1997, as amended, be and it is hereby terminated effective as of the Appointment Date.
     30. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Each party hereto will receive by delivery or by facsimile or other electronic transmission a duplicate original of the Agreement executed by each party, and each party agrees that the delivery of the Agreement by facsimile or other electronic transmission will be deemed to be an original of the Agreement so transmitted.
     31. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein.
[The remainder of this page is intentionally blank; signature page follows.]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
             
    Executive:    
 
           
    /s/ Gregory M. Schmidt    
         
    Gregory M. Schmidt    
 
           
    LIN TV Corp.    
 
           
 
  By:   /s/ Denise M. Parent    
 
           
    Name: Denise M. Parent    
    Title: Vice President General Counsel and Secretary    
 
           
    LIN Television Corporation    
 
           
 
  By:   /s/ Denise M. Parent    
 
           
    Name: Denise M. Parent    
    Title: Vice President General Counsel and Secretary    
 
           
 
  By:   /s/ Denise M. Parent    
 
           
[Signature Page to Employment Agreement


 

Schedule 5 (b) (iii)
                                                                         
    Under Budget     At     Over Budget  
Revenue (Percent of Budget)
    78.7 %     84.0 %     89.3 %     94.7 %   Budget       105.3 %     110.7 %     116.0 %     121.3 %
 
                                                     
 
                                                                       
Bonus Percentage
  Zero     25 %     33 %     67 %     100 %     125 %     150 %     175 %     200 %
 
                                                                       
Potential Bonus Amount — Grid
        $ 32,813     $ 43,313     $ 87,938     $ 131,250     $ 164,063     $ 196,875     $ 229,688     $ 262,500  
 
                                                                       
Potential Bonus Amount — Other
  $ 43,750     $ 43,750     $ 43,750     $ 43,750     $ 43,750     $ 43,750     $ 43,750     $ 43,750     $ 43,750  
 
                                                                       
 
                                                     
Potential Bonus Total
  $ 43,750     $ 76,563     $ 87,063     $ 131,688     $ 175,000     $ 207,813     $ 240,625     $ 273,438     $ 306,250  
 
                                                     


 

Schedule 12
Geographic Scope of Non-Solicitation
The geographic scope to which Section 12 shall apply shall be defined as all markets in the United States of America.


 

Schedule 16
Notices
     
If to Executive:
  To the address as shall most currently appear on the records of the Company
 
   
If to the LIN Companies:
  LIN Television Corporation
 
  4 Richmond Square, Suite 200
 
  Providence, RI 02906
 
  Attn: General Counsel
 
  Fax: (401) 454-2817


 

Exhibit 9(a)(i)
Transition Severance Amount
For purposes of this Agreement, the “Transition Severance Amount” shall be a lump sum amount equal to the sum of:
  (a)   an amount equal to three times (3x) the Executive’s Base Salary in effect on the effective date of termination;
 
  (b)   an amount equal to three times (3x):
(1) the amount of the highest bonus compensation paid to the Executive with respect to the last three complete fiscal years, and
(2) the contribution, if any, paid by the Company for the benefit of the Executive to any 401(k) Plan in the last complete fiscal year,
  (c)   the present value, determined as of the effective date of termination, of the sum of:
(1) all benefits which have accrued to the Executive but have not vested under the LIN Television Corporation Retirement Plan (the “Retirement Plan”) as of the effective date of termination, and
(2) all additional benefits which would have accrued to the Executive under the Retirement Plan if the employee had continued to be employed by the Company on the same terms the Executive was employed on as of the effective date of termination from such date of termination to the date 12 months after the date of termination.
For purposes of this Agreement, the present value of a future payment shall be calculated by reference to the actuarial assumptions (including assumptions with respect to interest rates) in use immediately prior to any Change in Control for purposes of calculating actuarial equivalents under the Retirement Plan.

EX-10.4 5 d44060exv10w4.htm EMPLOYMENT AGREEMENT - VICE PRESIDENT GENERAL COUNSEL AND SECRETARY exv10w4
 

EXHIBIT 10.4
Employment Agreement
     This Employment Agreement (this “Agreement”), entered into as of February 22, 2007, and made effective as of September 6, 2006, is by and among, LIN TV Corp., a Delaware corporation (“Parent”), and LIN Television Corporation, a Delaware corporation with its headquarters in Providence, Rhode Island, and a wholly-owned subsidiary of the Parent (the “Company” and, together with Parent, the “LIN Companies”), and Denise M. Parent, an individual residing in the state of Rhode Island (the “Executive”).
RECITALS:
     Whereas, on September 6, 2006 (the “Appointment Date”), the board of directors of Parent (the “Board of Parent”) and the board of directors of the Company, respectively, appointed Executive to the offices of Vice President General Counsel and Secretary of each of the LIN Companies;
     Whereas, each of Parent and the Company desire that the Company employ Executive as Vice President General Counsel and Secretary of the Company, and Executive desires to be employed by the Company in such position, in accordance with the terms and subject to the conditions provided herein;
     Now, Therefore, in consideration of the foregoing and of the respective covenants and agreements of the parties herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:
     1. Employment. The Company shall employ Executive and Executive hereby agrees to serve the LIN Companies on the terms and conditions set forth herein.
     2. Service Period. The term of this Agreement and Executive’s employment hereunder (the “Service Period”) shall be deemed to have commenced as of the Appointment Date and shall continue thereafter until the effective date of termination pursuant to the terms and subject to the conditions of this Agreement.
     3. Position and Duties. During the Service Period, Executive shall serve as the Vice President General Counsel and Secretary of each of the LIN Companies, reporting to the President and CEO of each of the LIN Companies and, subject to the LIN Companies’ respective Certificates of Incorporation and By-Laws, shall have such authority and duties as may be granted or assigned from time to time by the President and CEO of the LIN Companies.
     4. Attention and Effort. Executive covenants and agrees, at all times during the Service Period, to devote her full business-time efforts, energies and skills to her duties as contemplated by Section 3 above, to serve each of the LIN Companies diligently and to the best of Executive’s ability and at all times to act in compliance with the rules, regulations, policies and procedures of the LIN Companies as shall be in effect from time to time. Executive further covenants and agrees that Executive will not, directly or indirectly, engage or participate in any other business, profession or occupation for compensation or otherwise at any time during the Service Period which conflicts with the business of the LIN Companies, without the prior written


 

consent of the Board of Parent; provided, that nothing herein shall preclude Executive from accepting appointment to or continuing to serve on any board of directors or trustees of any charitable or not-for-profit organization or from managing Executive’s personal, financial or legal affairs; provided, in each case, and in the aggregate, that such activities do not materially conflict or interfere with the performance of Executive’s duties hereunder or conflict with Sections 10, 11 or 12 of this Agreement in any material respect.
     5. Compensation and Other Benefits.
          (a) During the Service Period, Executive shall be paid by the Company an annual base salary in an amount equal to Two Hundred Seventy Five Thousand Dollars ($275,000) (the “Base Salary”), payable in accordance with the Company’s normal payroll practices. The Base Salary shall be reviewed by the Compensation Committee of the Board of Parent no less often than once each calendar year and may be increased, but not decreased, based on such a review.
          (b) Executive shall be eligible to receive, in addition to the Base Salary described above, an annual bonus payment (a “Performance Bonus”) to be determined by December 31 of each calendar year during the Service Period, or as soon thereafter as practicable, but in no event later than March 15 of the subsequent calendar year; which Performance Bonus payment (if any), shall be determined as follows:
               (i) With respect to the portion of calendar year 2006 prior to the Appointment Date, Executive shall be eligible to receive a Performance Bonus in an amount up to One Hundred Twenty-One Thousand Dollars ($121,000), which amount shall be prorated to reflect the portion of the calendar year between January 1 and the Appointment Date. The Performance Bonus payment determined pursuant to this paragraph (i), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee of the Board of Parent (the “Compensation Committee”) based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
               (ii) With respect to the portion of calendar year 2006 beginning on the Appointment Date and ending on December 31, 2006, Executive shall be eligible to receive a Performance Bonus in an amount up to One Hundred Fifty Thousand Dollars ($150,000) (the “Performance Bonus Amount”), which Performance Bonus Amount shall be prorated to reflect the portion of the calendar year beginning on the Appointment Date and ending on December 31, 2006. The bonus payment determined pursuant to this paragraph (ii), if any, shall be determined in the discretion of the President and CEO of the LIN Companies and the Compensation Committee based upon those bonus criteria established with respect to Executive’s performance and goals prior to the Appointment Date.
               (iii) With respect to each calendar year during the Service Period beginning on January 1, 2007, if applicable, Executive shall be eligible to receive a Performance Bonus as follows:

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                    (A) Executive shall be eligible to receive a bonus payment in an amount up to 75% of the Performance Bonus Amount, which bonus payment, if any, shall be determined in the sole discretion of the President and CEO of the LIN Companies and the Compensation Committee, based upon such factors as each may determine to be relevant, which may include the performance of the LIN Companies and Executive, general business conditions, and the relative achievement by Executive or the LIN Companies of any goals established by the President and CEO, the Board of Parent or the Compensation Committee.
                    (B) Executive shall be eligible to receive a bonus payment calculated as set forth in this paragraph (B) using a baseline bonus amount equal to twenty-five percent (25%) of the Performance Bonus Amount (the “Results Bonus Base Amount”). The amount of the bonus awarded to Executive, if any, under this paragraph (B) (the “Results Bonus”) shall be an amount calculated as a percentage of the Results Bonus Base Amount (the “Results Bonus Percentage”). The Results Bonus Percentage shall be the percentage set forth on Exhibit 5(b)-1 hereto that corresponds to the respective percentages by which Parent has achieved the EBITDA and revenue targets established by the Board of Parent for the applicable year, as determined by the Compensation Committee of the Board of Parent (the “Budget Target”). The parties acknowledge and agree that for convenience of reference Exhibit 5(b)-2 shows for illustrative purposes the amount of the Results Bonus corresponding to each Results Bonus Percentage reflected on Exhibit 5(b)-1, and the parties further acknowledge that such figures shall be subject to adjustment in the event of any change to the Results Bonus Base Amount and, in the event of any conflict between Exhibits 5(b)-1 and 5(b)-2, Exhibit 5(b)-1 shall control.
     6. Benefits and Expenses. Executive shall receive from the Company such other benefits as may be granted to senior management of the Company generally, including health, dental, life and disability insurance and vacation benefits. In addition, Executive shall be provided with an automobile allowance in accordance with the Company’s then-current plan. The Company shall reimburse Executive for all reasonable travel, entertainment and other expenses which Executive may incur in regard to the business of Company or Parent, in accordance with and subject to the limitations of the Company’s standard practices and policies and Executive’s presentation of such documents and records as Company shall require to substantiate such expenses.
     7. Incentive Equity.
          (a) The parties acknowledge that as of the Appointment Date, Parent granted to Executive an option (the “Option Grant”) to purchase sixty thousand (60,000) shares of Parent’s Class A Common Stock, par value $0.01 per share pursuant to the terms and subject to the conditions of the LIN TV Corp. Amended and Restated 2002 Stock Plan (the “Option Plan”) and as further evidenced by that certain Nonqualified Stock Option Letter Agreement, dated September 6, 2006, by and between Parent and Executive (the “Option Agreement”). The Option Grant shall be on the terms and conditions of the Option Plan and the Option Agreement; provided, however, that (i) for purposes of the Option Grant, and notwithstanding anything to the contrary contained in the Option Agreement, the term “Cause” shall have the meaning ascribed to such term in this Agreement; and (ii) in the event of a Change in Control (as hereinafter defined in Section 24) (and notwithstanding the definition of such term in the Option

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Agreement) the vesting of the Option Grant shall accelerate and shall be deemed fully vested as of such Change in Control. For the avoidance of doubt, the vesting of the Option Grant shall not accelerate in the event of any termination of this Agreement, including upon a termination Without Cause or with Good Reason; provided, however, that if Executive is able to demonstrate that (i) he was terminated by the LIN Companies Without Cause in anticipation of a Change in Control and (ii) such anticipated Change in Control occurs, then Executive will be deemed for purposes of the Option Grant, to have remained employed through the consummation of the Change in Control, and the vesting of the Option Grant shall accelerate as described in the preceding sentence.
          (b) With respect to all stock options and stock awards granted to Executive prior to the Appointment Date under the 1998 Stock Option Plan, the 1998 Substitute Stock Option Plan, the 1998 Phantom Stock Plan, and the Amended and Restated 2002 Stock Plan of LIN TV (collectively, the “Prior Options and Awards”) which are not otherwise exercisable or vested upon a Change in Control (as hereinafter defined in Section 24 and notwithstanding any conflicting definition of Change in Control), the vesting of each such Prior Option and Award shall accelerate and shall be deemed fully vested as of such Change in Control.
     8. Termination. This Agreement and the employment of Executive hereunder may be terminated as follows:
          (a) By the LIN Companies for “Cause.” Subject to such other terms of this Agreement, the LIN Companies may terminate this Agreement and the employment of Executive hereunder for “Cause” by action of the Board of Parent if the Executive:
               (i) has been convicted of, or entered a pleading of guilty or nolo contendre (or its equivalent in the applicable jurisdiction) to any criminal offense (whether or not in connection with the performance by Executive of Executive’s obligations and duties under this Agreement), excluding offenses under road traffic laws, or misdemeanor offenses, that are subject only to a fine or non-custodial penalty;
               (ii) has committed an act or omission involving dishonesty or fraud;
               (iii) has willfully refused or willfully failed to perform her obligations and duties under this Agreement or the duties properly assigned to her in accordance with the terms and conditions of this Agreement, and Executive has the physical capacity to perform such obligations or duties; or
               (iv) has engaged in gross negligence or willful misconduct with respect to any of the LIN Companies or any of their affiliates or subsidiaries.
          (b) By the LIN Companies “Without Cause.” The LIN Companies may terminate this Agreement and the employment of Executive hereunder at any time, in Parent’s sole discretion, for any reason whatsoever or for no reason, which termination shall constitute a termination “Without Cause.”

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          (c) By Executive for Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder in the event of any of the following (each of which shall constitute “Good Reason”) and the LIN Companies shall have failed to have reasonably remedied such condition within thirty (30) days following receipt of the Good Reason Notice (as defined below):
               (i) Executive’s Base Salary or Performance Bonus Amount is reduced below the higher of (A) the amount of Base Salary or Performance Bonus Amount (other than pursuant to Section 5(b)(i)) in effect immediately prior to a Change in Control or (B) the highest amount of Base Salary or Performance Bonus Amount in effect at any time thereafter;
               (ii) (A) any failure by the Company to continue in effect or provide plans or arrangements pursuant to which the Executive will be entitled to receive grants relating to the securities of Parent (including, without limitation), stock options, stock appreciation rights, restricted stock or other equity based awards) of the same type as the Executive was participating in immediately prior to the Change in Control (hereinafter referred to as “Securities Plans”) or providing substitutes for such Securities Plans which in the aggregate provide substantially similar economic benefits or (B) the taking of any action by the Company which would adversely effect the Executive’s participation in, or benefits under, any such Securities Plan or its substitute if in the aggregate Executive is not provided substantially similar economic benefits; provided, however, that for these purposes any determination of whether Good Reason exists under clauses (A) or (B) of this paragraph (ii) because Executive is or is not provided substantially similar economic benefits in the aggregate will be made with due consideration given to such Executive’s Base Salary, other cash compensation (if any) and other equity-based incentive programs to which Executive is also entitled to receive, and not solely on the basis of whether Executive is or is not entitled or eligible to receive equity based incentive compensation;
               (iii) Executive’s duties, authority and responsibilities or, in the aggregate, the program of retirement and welfare benefits offered to Executive, are materially and adversely diminished, in comparison to the duties, authority, and responsibilities or the program of benefits, in the aggregate, enjoyed by Executive as of (A) the time immediately prior to a Change in Control or (B) if prior to a Change in Control, as of the date of this Agreement, or Executive is demoted from the position that Executive held as of (Y) the time immediately prior to such Change in Control or (Z) if prior to a Change in Control, as of the date of this Agreement; provided, however, that if, subsequent to a Change in Control, the Executive maintains the same duties, authority and responsibility that Executive held prior to such Change in Control, the requirement that the Executive report to officers or the board of parent companies shall not of itself constitute “Good Reason” unless such officers or board take actions that materially and adversely interfere with the business decisions of Executive with respect to those business matters otherwise subject to Executive’s duties, authority and responsibilities;
               (iv) Executive is required to be based at a location more than 50 miles from the location where Executive was based and performed services on the Appointment Date, or if Executive is required to substantially increase Executive’s business travel obligations;

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provided that Executive shall give notice in writing within 90 days after Executive has knowledge of the event forming the basis of Good Reason, which notice shall set forth the particulars of such event and the reason why she believes in good faith that Good Reason exists (the “Good Reason Notice”).
          (d) By Executive Without Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder at any time, for any reason, upon giving to the LIN Companies thirty (30) days’ written notice of termination of this Agreement and Executive’s employment hereunder pursuant to this Section 8(d) (“Notice of Resignation”), during which notice period Executive’s employment and performance of services will continue; provided, however, that Parent may, upon notice to Executive and without reducing Executive’s compensation during such period, excuse Executive from any or all of Executive’s duties during such period. The effective date of the termination of Executive’s employment hereunder shall be the date specified in the Notice of Resignation delivered in accordance with this Section 8(d).
          (e) Automatic Termination Upon Death or Disability. This Agreement and Executive’s employment hereunder shall terminate automatically upon the death or “total disability” of Executive. The term “total disability” as used herein shall mean Executive’s inability, with or without reasonable accommodations, to perform the duties of Executive contemplated by Section 3 hereof for a period of, or periods aggregating, six (6) months in any twelve (12) month period as a result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control, unless Executive is granted a leave of absence by the Board of Parent. All determinations as to whether Executive has suffered total disability due to physical or mental illness, loss of capacity or any other medical cause shall be made by a physician who is mutually agreed upon by Executive and a majority of the members of the Nominating and Corporate Governance Committees of the Board of Parent. Executive and the LIN Companies hereby acknowledge that Executive’s ability to perform the duties set forth in Section 3 hereof is of the essence of this Agreement. Termination under this Section 8(e) shall be deemed to be effective (i) as of the time of Executive’s death or (ii) immediately upon determination of Executive’s total disability, as defined above, by a physician mutually agreeable to Executive and the Board of Parent.
     9. Severance for Termination Without Cause or Resignation With Good Reason.
          (a) Initial Three-Year Transition Period. Subject to the terms and conditions of this Sections 9(c) and (d) set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated during the three-year period ending on the third anniversary of the Appointment Date (the “Transition Period”) (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:
               (i) The Company shall pay to Executive an amount calculated in accordance with Exhibit 9(a)(i) hereto (the “Transition Severance Amount”), as adjusted pursuant to the “work down” formula set forth in Section 9(a)(ii) below, to be paid in a lump sum, subject to Section 9(d) hereof.

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               (ii) The Transition Severance Amount shall be reduced pro rata for each day of Executive’s employment hereunder during the Transition Period, provided that in no event shall the reduction exceed seven hundred thirty (730) days or a reduction of two-thirds. By way of illustration and not of limitation or modification of the foregoing:
  (A)   If Executive is terminated without Cause or resigns for Good Reason on the date one year after the Appointment Date, Executive will be entitled to receive the Transition Severance Amount reduced by one-third; if Executive is terminated without Cause or resigns for Good Reason on the date two years after the Appointment Date, Executive will be entitled to receive the Transition Severance Amount reduced by two-thirds;
 
  (B)   If Executive is terminated without Cause or resigns for Good Reason on the date two and one-half years (or 913 days) after the Appointment Date, Executive will receive the Transition Severance Amount reduced by two-thirds because the pro rata adjustment is capped at 730 days.
               (iii) The Company shall provide Executive for a period commencing on the effective date of termination and ending on the earlier of the third anniversary of such date of termination or the Executive’s death (the “Transition Benefits Period”) (subject to reduction as set forth in the provision at the end of this paragraph), life, health, disability and accident insurance benefits and the package of “Executive benefits” substantially similar, individually and in the aggregate, to those which the Executive was receiving immediately prior to the effective termination, or immediately prior to a Change in Control, if greater, including without limitation, transfer of title of a company automobile, medical, dental, vision, life and pension benefits, as if Executive were continuing as an employee of the Company during the Transition Benefits Period, provided, however, that with respect to the provision of insurance benefits during the Transition Benefits Period, Executive shall be obligated to continue to pay that proportion of premiums paid by the Executive immediately prior to such termination or Change in Control, as applicable. The Company shall apply the statutory health care continuation coverage (“COBRA”) provisions as if the Executive were a full-time employee of the Company during the Transition Benefits Period, with the result that (y) the Executive’s spouse and dependents shall be eligible for continued health insurance coverage that is in all respects equivalent to COBRA coverage (“COBRA-Equivalent Coverage”) if an event occurs during the Transition Benefits Period that would have been a “qualifying event” under COBRA had the Executive been an employee of the Company, and (z) the Executive and the Executive’s spouse and dependents shall be eligible for COBRA-Equivalent coverage at the expiration of the Transition Benefits Period and for a period of three years thereafter as if the Executive’s employment with the Company had terminated on the last day of the Transition Benefits Period; provided, however, that the Transition Benefits Period shall be reduced pro rata for each day of Executive’s employment hereunder during the

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Transition Period, provided that in no event shall the reduction exceed seven hundred thirty (730) days or a reduction of two-thirds.
               (iv) The vesting of all Prior Options and Awards which are not otherwise exercisable or vested as of the effective date of termination shall accelerate and each such Prior Option and Award shall be deemed fully vested and exercisable as of the effective date of such termination.
          (b) Post-Transition Period. Subject to the terms and conditions of this Sections 9(c) and (d) set forth below, solely in the event that this Agreement and Executive’s employment hereunder is terminated after the Transition Period (y) by the LIN Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof; or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section 8(c) hereof, then:
               (i) The Company shall pay to Executive a severance payment (the “Severance Payment”) in an amount equal to the sum of (A) Executive’s Base Salary in effect at the time of such termination and (B) the aggregate amount, if any, of the Performance Bonus most recently awarded to Executive pursuant to Section 5(b) prior to such termination; provided, however, that if such termination occurs prior to the award of Executive’s initial Performance Bonus under this Agreement (or the determination that no such award shall be made), the payment under this clause (B) shall be the maximum applicable Performance Bonus that would otherwise be due had Executive remained employed with the Company. The Severance Payment shall be due and payable in twenty six (26) substantially equal payments following such termination; provided, however, that the payment of the portion of the Severance Payment comprised of any Performance Bonus based upon the determination of the achievement of certain results may be deferred as necessary until the Compensation Committee has made the necessary determinations.
               (ii) In addition, during the twelve-month period following a termination giving rise to the Severance Payment, the Company shall continue to pay the employer’s normal portion of the costs of Executive’s health and dental insurance premiums in an amount consistent with that paid on the date of termination, provided that Executive chooses to participate in COBRA or a similar health insurance continuation program and provides the Company with proof of such participation. If Executive chooses to receive COBRA coverage from the Company’s group health plans during this twelve-month period, such coverage shall count toward the maximum coverage period permitted under such plan.
               (iii) The vesting of all Prior Options and Awards which are not otherwise exercisable or vested as of the effective date of termination shall accelerate and each such Prior Option and Award shall be deemed fully vested and exercisable as of the effective date of such termination.
          (c) The payment of the Transition Severance Amount or the Severance Payment, as applicable, and the provision of the benefits described in this Section 9 are expressly contingent on Executive’s execution of a standard severance and release agreement containing only a release of any and all claims by Executive against the LIN Companies and all

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predecessors, successors, affiliates and subsidiaries thereof, except for claims relating to (i) the Severance Payment and other post-employment payments and benefits due pursuant to the terms and subject to the conditions of this Agreement; (ii) claims for benefits under the employee benefit plans of the LIN Companies in which Executive participates, and (iii) claims for indemnification or insurance, if applicable, arising following Executive’s employment. Notwithstanding anything to the contrary contained herein, Employer retains the right to terminate the initiation or continuation of the Severance Payment and other benefits described in this Section 9, as applicable, and to recover from Executive any and all amounts previously paid (as well as to pursue any other remedies available at law or in equity) if it discovers that Executive engaged in any fraud, theft, embezzlement, serious or substantial misconduct materially injuring the LIN Companies’ reputation, or gross negligence while employed by the Company or if Executive materially breaches this Agreement, including any breach by Executive of Executive’s obligations and covenants under Sections 10, 11, or 12 hereof.
          (d) Subject to such adjustments as may be necessary in accordance with the proviso set forth in the last sentence of Section 9(b)(i), all payments made under Section 9(b), other than the Transition Severance Amount, shall be made to Executive at the same interval as payments of salary were made to Executive immediately prior to termination. Notwithstanding the foregoing or anything to the contrary contained herein, if the Company determines that Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code (as hereinafter defined), or any successor thereto or as such may be amended hereafter (“Section 409A”), then to the extent necessary to satisfy the requirements of Section 409A, any portion of the severance compensation under this Section 9, that shall constitute deferred compensation within the meaning of Section 409A shall not be due and payable to Executive until the date that is six (6) months after the date of termination, if necessary to avoid tax penalties under Section 409A. In the event of such delay in payment, on the day following the expiration of such six month period Executive shall be paid the delayed portion of the severance compensation plus interest for the period of such delay, which interest shall be calculated at a rate equal to the interest rate then earned by the LIN Companies’ excess cash balances on bank deposit.
          (e) Except as expressly provided in paragraphs (a) or (b) above, upon the termination of this Agreement and Executive’s employment hereunder (including for Cause or without Good Reason, or upon death or total disability pursuant, respectively, to Sections 8(a), 8(d) and 8(e)), Executive shall not be entitled to any payments hereunder, other than for Accrued Obligations, which the Company shall pay to Executive in a lump sum immediately following such termination. For purposes of this Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of Executive’s accrued but unpaid Base Salary through the date of death or termination of employment, as the case may be; (ii) any accrued but unpaid vacation or expense reimbursements; (iii) any then declared but unpaid Performance Bonus, as applicable, with respect to the fiscal year preceding the fiscal year in which the termination occurs; (iv) any (A) Performance Bonus for the fiscal year in which the termination occurs, as applicable, pro rated for service through the date of termination (and, if not determined as of the date of termination, such payment, if any, to be due and payable reasonably following the determination of such amounts) or (B) Performance Bonus earned for that year if termination occurs at the end of the year but prior to payment; provided, however, Executive shall receive no payment under (A) or (B) upon a termination by the LIN Companies for Cause; and (v) any compensation

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previously earned but deferred by Executive (together with interest, to the extent and in the manner applicable pursuant to terms and subject to the conditions of Section 9(c)) prior to the date of termination that has not yet been paid.
     10. Non-Disclosure.
          (a) Executive acknowledges that during the period of Executive’s employment with the Company prior to the Appointment Date, Executive has had, and thereafter during the Service Period, Executive will have, access to trade secrets and other confidential or proprietary information of the LIN Companies and their respective affiliates and subsidiaries (“Confidential Information”). Executive acknowledges that as used herein, Confidential Information includes, but is not limited to, all methods, processes, techniques, practices, pricing information, billing histories, customer lists or requirements, employee lists, salary information, personnel matters, financial data, operating results, plans, contractual relationships, projections for new business opportunities for new or developing businesses, research, reports, and technological innovations in any stage of development. Confidential Information also includes, but is not limited to, all notes, records, software, drawings, handbooks, manuals, policies, contracts, memoranda, sales files, or any other documents generated or compiled by any employee of the LIN Companies or any of its respective affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any data or information that has been voluntarily disclosed to the public or the LIN Companies’ respective competitors by either of the LIN Companies (except where such public disclosure has been made by Executive or another without authorization) or that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.
          (b) Executive agrees that, both during the Service Period and after the termination of Executive’s employment hereunder for any reason, Executive will use Executive’s reasonable best efforts and utmost diligence to preserve, protect, and prevent the disclosure of such Confidential Information, and that he will not, either directly or indirectly, use, misappropriate, disclose or aid any other person in disclosing such Confidential Information, unless done so on behalf of the LIN Companies or to the extent required by law.
          (c) All Confidential Information is, and shall remain, the exclusive property of the LIN Companies, and Executive hereby covenants and agrees that Executive shall promptly return all such information to the LIN Companies upon termination of this Agreement or at any other time when requested by the LIN Companies.
     11. Non-Competition.
          (a) During the Service Period and for one (1) year after the termination of this Agreement for any reason, whether with or Without Cause or whether upon resignation with or without Good Reason, Executive shall not Compete (as hereinafter defined) with any material business then conducted by the LIN Companies or their respective affiliates or subsidiaries (collectively, “LIN”) without the prior written consent of the LIN Companies; except that, notwithstanding this Section 11, Executive may perform any duties on behalf of the LIN Companies as the Board of Parent shall approve and direct. For purposes of this Agreement, the term “Compete” shall mean engaging in a business as a more than five percent (5%) stockholder

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or other holder of a five percent (5%) or greater equity interest of any Person (as hereinafter defined in Section 24) (whether direct or indirect, including the right to acquire such percentage equity interest), as an employee, a partner, an agent, a consultant, or any other individual representative capacity of, to or for any Person, as an officer of any Person, or a member of the board of directors, board of managers, or other managing body of such Person (unless Executive’s duties, responsibilities, and activities, including supervisory activities, for or on behalf of such Person or in such business are not related in any way to such “competitive” activity) if it involves:
               (i) owning or Managing (as defined below in Section 24) one or more local television stations in any designated market area in which the Company or any direct or indirect subsidiary thereof (a “Subsidiary”) owns or Manages, one or more local television stations (the “Restricted Markets”); or
               (ii) rendering services or advice pertaining to the business or operation of television stations in a Restricted Market, or on behalf of, any Person which is in competition with the Company or any of its affiliates or subsidiaries.
          (b) Upon and subject to reasonable notice and information being provided to the LIN Companies by Executive prior to Executive’s entering into a position or association which may cause Executive to engage in activities in breach of paragraph (a) above, Parent will conduct a timely review of such proposed position or association and notify Executive in writing regarding Parent’s view as to whether Executive will thereby breach the terms and conditions of paragraph (a) above.
     12. Non-Solicitation. Executive agrees that, during the twelve (12) month period immediately following termination of this Agreement, for whatever reason, with or without Cause or whether resignation with or without Good Reason, Executive shall not directly or indirectly solicit, influence or entice, or attempt to solicit, influence or entice, or hire any executive, employee, or consultant of LIN to cease his relationship with LIN or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venturer or supplier of LIN to terminate such person’s relationship with LIN, in order to be employed by or do business with a Person that Competes with the LIN Companies or with any other entity that derives benefit from the production, marketing, broadcasting or other distribution or syndication of products, services, programs or other content that compete with products then produced or services, programs or other content then being provided, marketed, broadcast, distributed or syndicated by LIN or the feasibility for production of which LIN is then actually studying or is preparing to market or is developing; provided, however, that this Section 12 shall apply only within the geographic area set forth in Schedule 12 hereto.
     13. Acknowledgment of Restrictive Covenants. Executive acknowledges that the covenants specified in Sections 10, 11, 12, and 15 hereof (collectively, the “Protective Provisions”) contain reasonable limitations as to time, geographic area, and scope of activities to be restricted and that such promises do not impose a greater restraint on Executive than is necessary to protect the goodwill, Confidential Information, trade secrets, customer and employee relations, and other legitimate business interests of the LIN Companies. Executive

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also acknowledges and agrees that any violation of the covenants set forth in the Protective Provisions would bestow an unfair competitive advantage upon any Person, which might benefit from such violation, and would necessarily result in substantial and irreparable damage and loss to the LIN Companies.
     14. No Inconsistent Obligation. In order to induce the LIN Companies to enter into this Agreement, Executive represents and warrants to each of the LIN Companies that neither the execution nor the performance of this Agreement by Executive will violate or conflict in any way with any other agreement to which Executive may be bound, or with any other duties imposed upon Executive by corporate or other statutory or common law.
     15. Intellectual Property. Executive and the LIN Companies hereby covenant and agree that all intellectual property of any kind, whether now or later created, developed or produced, developed by Executive, whether directly or indirectly, in connection with services rendered by Executive for or on behalf of the LIN Companies, or from the use of premises or property owned, leased, licensed or contracted for by the LIN Companies, both prior to and subsequent to the date of this Agreement, or otherwise developed by Executive during the Service Period which is in any way related to the Company’s business, as conducted or proposed to be conducted, shall be the property of the Company. Executive hereby assigns to the Company any and all rights and interests he now has or may hereafter acquire in and to such intellectual property.
     16. Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery when delivered by hand, (b) on the date of transmission when sent by facsimile transmission during normal business hours with telephone confirmation of receipt, (c) one day after dispatch when sent by reputable overnight courier maintaining records of receipt, or (d) three days after dispatch when sent by registered or certified mail, postage prepaid, return receipt requested, all addressed as set forth on Schedule 16 attached hereto or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
     17. Injunctive Relief; Cumulative Rights. The parties agree that, without limitation of the rights of the LIN Companies with respect to any other breach of this Agreement, the harm to each of the LIN Companies arising from any breach by Executive of the Protective Provisions could not adequately be compensated for by monetary damages, and accordingly each of the LIN Companies shall, in addition to any other remedies available to it at law or in equity, be entitled to seek and, if so ordered by a court of competent jurisdiction, obtain, preliminary and permanent injunctive relief against such breach. Executive agrees that the various provisions of this Agreement shall be construed as cumulative, and no one of them is exclusive of the other, or exclusive of any rights allowed by law.
     18. Withholding. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to Executive shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it is legally required to withhold pursuant to any applicable law or regulation. In lieu

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of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholdings as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.
     19. No Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer or director as may be specifically designated by the Company. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or at any prior or subsequent time. Except where the context otherwise requires, wherever used the singular shall include the plural, the plural the singular, the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive sense.
     20. Severability. If any covenant or provision hereof is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the invalidity of any other covenant or provision, each of which is hereby declared to be separate and distinct. If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. If any provision of this Agreement is declared invalid or unenforceable for any reason other than overbreadth, the offending provision will be modified so as to maintain the essential benefits of the bargain among the parties hereto to the maximum extent possible, consistent with law and public policy.
     21. Amendment. No amendment, modification, waiver, termination or discharge of any provision of this Agreement, or consent to any departure therefrom by either party hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by each of the LIN Companies and Executive, and each such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which it is given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by each of the LIN Companies and Executive.
     22. Choice of Law and Forum. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Rhode Island. Employee hereby (a) submits to personal jurisdiction in the State of Rhode Island for any action arising out of or in connection with this Agreement; (b) waives any and all personal rights under the laws of any state to object to jurisdiction within the State of Rhode Island; and (c) agrees that for any cause of action arising out of or in connection with this Agreement, venue is solely proper in any state or federal court within Rhode Island.
     23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

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     24. Certain Definitions. The capitalized terms contained and used in this Agreement which are defined below shall have the respective meanings ascribed to them as follows:
          (a) Change in Control” shall mean the occurrence of any of the following events:
               (i) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of Parent to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than one or more members of the Shareholder Group;
               (ii) a majority of the Board of Parent shall consist of Persons who are not Continuing Directors;
               (iii) the acquisition by any Person or Group (other than (A) one or more members of the Shareholder Group or (B) with respect to a transferee of shares of Class C Common Stock, par value $0.01 per share, of Parent, (1) one or more members of the Shareholder Group or (2) any Person approved by an affirmative vote of no less than two-thirds of the disinterested members of the Board of Parent) of the power, directly or indirectly, to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of Parent;
               (iv) the acquisition by any Person or Group of shares of the capital stock of Parent representing in the aggregate more than 40% of the issued and outstanding shares of such capital stock and, as of the time of such acquisition, no other Person or Group holds, in the aggregate, a greater number of such shares of capital stock;
               (v) any sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act, other than to (A) a wholly-owned subsidiary of Parent or the Company or (B) one or more members of the Shareholder Group; or
               (vi) Parent shall cease, whether directly or indirectly through one or more wholly-owned subsidiaries, to have the power to vote or direct the voting of securities having more than 50% of the ordinary voting power for the election of directors of the Company.
          (b) Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations or other guidelines of general applicability promulgated thereunder.
          (c) Continuing Directors” shall mean any Person who (i) was a member of the Board of Parent on the Appointment Date, (ii) is thereafter nominated for election or elected to the Board of Parent with the affirmative vote of a majority of the Continuing Directors who are members of such Board of Parent at the time of such nomination or election, or (iii) is a member of the Board of Parent and also a member of the Shareholder Group.

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          (d) Group” means any group of related Persons for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
          (e) Manage” (or “Managing”) means with respect to the business or operation of a television station, (i) the provision of management services, (ii) the right to program, or select a substantial portion of the programming of, such station, including through a local marketing agreement, time brokerage agreement, joint sales agreement, shared services agreement, or other similar agreements (collectively, a “Services Agreement”), or (iii) the sale of, or the right to sell, the advertising of such station through a Services Agreement.
          (f) Person” shall mean an individual, a corporation, limited liability company, a partnership, an association, a trust or any other entity or organization, including any other form of business entity or any government or political subdivision or an agency or instrumentality thereof.
          (g) Shareholder Group” shall mean HM Capital Partners, LLC, and any Person controlling, controlled by or under common control with it.
     25. Interpretation. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. Except where the context requires otherwise, whenever used in this Agreement, the singular includes the plural, the plural includes the singular, the use of any gender is applicable to all genders and the word “or” has the inclusive meaning represented by the phrase “and/or.” The words “include” and “including” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” A reference in this Agreement to a Section, Paragraph, Exhibit or Schedule is to the referenced Section, Paragraph, Exhibit or Schedule of this Agreement. The wording of this Agreement shall be deemed to be the wording mutually chosen by the parties and no rule of strict construction shall be applied against any party. Unless expressly provided otherwise, all dollar figures in this Agreement are in the currency of the United States of America.
     26. Survival. The expiration or termination of this Agreement shall not relieve any party of any obligations that may have accrued hereunder prior to such expiration or termination. The provisions of Sections 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 shall survive the expiration or termination of this Agreement except as otherwise specifically provided in such Sections.
     27. Assignment. The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the LIN Companies and each of its respective successors and assigns. Notwithstanding the foregoing or anything to the contrary contained herein, this Agreement may not be assigned by the LIN Companies without Executive’s prior written consent unless the LIN Companies retain joint and several liability with any of the LIN Companies’ assignee for the financial obligations under this Agreement. This Agreement may not be assigned, in whole or in part, by Executive without the written consent of each of the LIN Companies.

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     28. Indemnification. At all times during and after the Service Period the LIN Companies shall indemnify Executive pursuant to the terms and subject to the conditions of the certificate of incorporation and bylaws, respectively, of each of the LIN Companies, as such are in effect as of the Appointment Date. Executive shall have the benefit of continuing directors’ and officers’ insurance coverage at levels no less favorable than those in effect from time to time for members of the Board of Parent and the board of directors of the Company and other members of the LIN Companies’ senior management.
     29. Termination of Prior Agreements. That certain Severance Compensation Agreement, by and between Executive and the Company, dated as of February 27, 1997, as amended, be and it is hereby terminated effective as of the Appointment Date.
     30. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Each party hereto will receive by delivery or by facsimile or other electronic transmission a duplicate original of the Agreement executed by each party, and each party agrees that the delivery of the Agreement by facsimile or other electronic transmission will be deemed to be an original of the Agreement so transmitted.
     31. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein.
[The remainder of this page is intentionally blank; signature page follows.]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
             
    Executive:    
 
           
    /s/ Denise M. Parent    
         
    Denise M. Parent    
 
           
    LIN TV Corp.    
 
           
 
  By:   /s/ Vincent Sadusky    
 
           
    Name: Vincent Sadusky    
    Title: President and Chief Executive Officer    
 
           
    LIN Television Corporation    
 
           
 
  By:   /s/ Vincent Sadusky    
 
           
    Name: Vincent Sadusky    
    Title: President and Chief Executive Officer    
 
 
  By:   /s/ Vincent Sadusky    
 
           
[Signature Page to Employment Agreement


 

Parent Bonus Matrix for 2007
         
Annual Bonus
    150,000  
Percentage of Annual
    25 %
 
     
Annual Bonus at 100% achievement
    37,500  
Schedule 5(b)-1
                                                                                                         
Percentage:         Revenue
E
B
I
T
D
A
                                                                                                       
            94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
    89.0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %     0 %
    90.0 %     0 %     25.0 %     30.0 %     35.0 %     40.0 %     45.0 %     50.0 %     55.0 %     60.0 %     65.0 %     70.0 %     75.0 %
    91.0 %     0 %     28.8 %     34.0 %     39.3 %     44.5 %     49.8 %     55.0 %     60.3 %     65.5 %     70.8 %     76.0 %     81.3 %
    92.0 %     0 %     32.5 %     38.0 %     43.5 %     49.0 %     54.5 %     60.0 %     65.5 %     71.0 %     76.5 %     82.0 %     87.5 %
    93.0 %     0 %     36.3 %     42.0 %     47.8 %     53.5 %     59.3 %     65.0 %     70.8 %     76.5 %     82.3 %     88.0 %     93.8 %
    94.0 %     0 %     40.0 %     46.0 %     52.0 %     58.0 %     64.0 %     70.0 %     76.0 %     82.0 %     88.0 %     94.0 %     100.0 %
    95.0 %     0 %     43.8 %     50.0 %     56.3 %     62.5 %     68.8 %     75.0 %     81.3 %     87.5 %     93.8 %     100.0 %     106.3 %
    96.0 %     0 %     47.5 %     54.0 %     60.5 %     67.0 %     73.5 %     80.0 %     86.5 %     93.0 %     99.5 %     106.0 %     112.5 %
    97.0 %     0 %     51.3 %     58.0 %     64.8 %     71.5 %     78.3 %     85.0 %     91.8 %     98.5 %     105.3 %     112.0 %     118.8 %
    98.0 %     0 %     55.0 %     62.0 %     69.0 %     76.0 %     83.0 %     90.0 %     97.0 %     104.0 %     111.0 %     118.0 %     125.0 %
    99.0 %     0 %     58.8 %     66.0 %     73.3 %     80.5 %     87.8 %     95.0 %     102.3 %     109.5 %     116.8 %     124.0 %     131.3 %
    100.0 %     0 %     62.5 %     70.0 %     77.5 %     85.0 %     92.5 %     100.0 %     107.5 %     115.0 %     122.5 %     130.0 %     137.5 %
    101.0 %     0 %     66.3 %     74.0 %     81.8 %     89.5 %     97.3 %     105.0 %     112.8 %     120.5 %     128.3 %     136.0 %     143.8 %
    102.0 %     0 %     70.0 %     78.0 %     86.0 %     94.0 %     102.0 %     110.0 %     118.0 %     126.0 %     134.0 %     142.0 %     150.0 %
    103.0 %     0 %     73.8 %     82.0 %     90.3 %     98.5 %     106.8 %     115.0 %     123.3 %     131.5 %     139.8 %     148.0 %     156.3 %
    104.0 %     0 %     77.5 %     86.0 %     94.5 %     103.0 %     111.5 %     120.0 %     128.5 %     137.0 %     145.5 %     154.0 %     162.5 %
    105.0 %     0 %     81.3 %     90.0 %     98.8 %     107.5 %     116.3 %     125.0 %     133.8 %     142.5 %     151.3 %     160.0 %     168.8 %
    106.0 %     0 %     85.0 %     94.0 %     103.0 %     112.0 %     121.0 %     130.0 %     139.0 %     148.0 %     157.0 %     166.0 %     175.0 %
    107.0 %     0 %     88.8 %     98.0 %     107.3 %     116.5 %     125.8 %     135.0 %     144.3 %     153.5 %     162.8 %     172.0 %     181.3 %
    108.0 %     0 %     92.5 %     102.0 %     111.5 %     121.0 %     130.5 %     140.0 %     149.5 %     159.0 %     168.5 %     178.0 %     187.5 %
    109.0 %     0 %     96.3 %     106.0 %     115.8 %     125.5 %     135.3 %     145.0 %     154.8 %     164.5 %     174.3 %     184.0 %     193.8 %
    110.0 %     0 %     100.0 %     110.0 %     120.0 %     130.0 %     140.0 %     150.0 %     160.0 %     170.0 %     180.0 %     190.0 %     200.0 %
 
Schedule 5(b)-2
 
Dollars:         Revenue
E
B
I
T
D
A
                                                                                                       
            94.0 %     95.0 %     96.0 %     97.0 %     98.0 %     99.0 %     100.0 %     101.0 %     102.0 %     103.0 %     104.0 %     105.0 %
    89.0 %                                                                        
    90.0 %           9,375       11,250       13,125       15,000       16,875       18,750       20,625       22,500       24,375       26,250       28,125  
    91.0 %           10,781       12,750       14,719       16,688       18,656       20,625       22,594       24,563       26,531       28,500       30,469  
    92.0 %           12,188       14,250       16,313       18,375       20,438       22,500       24,563       26,625       28,688       30,750       32,813  
    93.0 %           13,594       15,750       17,906       20,063       22,219       24,375       26,531       28,688       30,844       33,000       35,156  
    94.0 %           15,000       17,250       19,500       21,750       24,000       26,250       28,500       30,750       33,000       35,250       37,500  
    95.0 %           16,406       18,750       21,094       23,438       25,781       28,125       30,469       32,813       35,156       37,500       39,844  
    96.0 %           17,813       20,250       22,688       25,125       27,563       30,000       32,438       34,875       37,313       39,750       42,188  
    97.0 %           19,219       21,750       24,281       26,813       29,344       31,875       34,406       36,938       39,469       42,000       44,531  
    98.0 %           20,625       23,250       25,875       28,500       31,125       33,750       36,375       39,000       41,625       44,250       46,875  
    99.0 %           22,031       24,750       27,469       30,188       32,906       35,625       38,344       41,063       43,781       46,500       49,219  
    100.0 %           23,438       26,250       29,063       31,875       34,688       37,500       40,313       43,125       45,938       48,750       51,563  
    101.0 %           24,844       27,750       30,656       33,563       36,469       39,375       42,281       45,188       48,094       51,000       53,906  
    102.0 %           26,250       29,250       32,250       35,250       38,250       41,250       44,250       47,250       50,250       53,250       56,250  
    103.0 %           27,656       30,750       33,844       36,938       40,031       43,125       46,219       49,313       52,406       55,500       58,594  
    104.0 %           29,063       32,250       35,438       38,625       41,813       45,000       48,188       51,375       54,563       57,750       60,938  
    105.0 %           30,469       33,750       37,031       40,313       43,594       46,875       50,156       53,438       56,719       60,000       63,281  
    106.0 %           31,875       35,250       38,625       42,000       45,375       48,750       52,125       55,500       58,875       62,250       65,625  
    107.0 %           33,281       36,750       40,219       43,688       47,156       50,625       54,094       57,563       61,031       64,500       67,969  
    108.0 %           34,688       38,250       41,813       45,375       48,938       52,500       56,063       59,625       63,188       66,750       70,313  
    109.0 %           36,094       39,750       43,406       47,063       50,719       54,375       58,031       61,688       65,344       69,000       72,656  
    110.0 %           37,500       41,250       45,000       48,750       52,500       56,250       60,000       63,750       67,500       71,250       75,000  


 

Schedule 12
Geographic Scope of Non-Solicitation
The geographic scope to which Section 12 shall apply shall be defined as all markets in the United States of America.


 

Schedule 16
Notices
     
If to Executive:
  To the address as shall most currently appear on the records of the Company
 
   
If to the LIN Companies:
  LIN Television Corporation
 
  4 Richmond Square, Suite 200
 
  Providence, RI 02906
 
  Attn: General Counsel
 
  Fax: (401) 454-2817


 

Exhibit 9(a)(i)
Transition Severance Amount
For purposes of this Agreement, the “Transition Severance Amount” shall be a lump sum amount equal to the sum of:
  (a)   an amount equal to three times (3x) the Executive’s Base Salary in effect on the effective date of termination;
 
  (b)   an amount equal to three times (3x):
(1) the amount of the highest bonus compensation paid to the Executive with respect to the last three complete fiscal years, and
(2) the contribution, if any, paid by the Company for the benefit of the Executive to any 401(k) Plan in the last complete fiscal year,
  (c)   the present value, determined as of the effective date of termination, of the sum of:
(1) all benefits which have accrued to the Executive but have not vested under the LIN Television Corporation Retirement Plan (the “Retirement Plan”) as of the effective date of termination, and
(2) all additional benefits which would have accrued to the Executive under the Retirement Plan if the employee had continued to be employed by the Company on the same terms the Executive was employed on as of the effective date of termination from such date of termination to the date 12 months after the date of termination.
For purposes of this Agreement, the present value of a future payment shall be calculated by reference to the actuarial assumptions (including assumptions with respect to interest rates) in use immediately prior to any Change in Control for purposes of calculating actuarial equivalents under the Retirement Plan.

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