exv10w1



 





Exhibit 10.1




BELO CORP.

CHANGE IN CONTROL SEVERANCE PLAN




 









 





TABLE OF CONTENTS




	 	 	 	 	 	 	 
	1.

	 	Purpose of the Plan
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	3.

	 	Eligibility
	 	 	6	 
	 
	 	 	 	 	 	 
	4.

	 	Effect of a Change in Control on Long-Term Incentive Compensation Awards
	 	 	7	 
	 
	 	 	 	 	 	 
	5.

	 	Termination of Employment
	 	 	7	 
	 
	 	 	 	 	 	 
	6.

	 	Certain Additional Payments by the Company
	 	 	10	 
	 
	 	 	 	 	 	 
	7.

	 	Section 409A
	 	 	12	 
	 
	 	 	 	 	 	 
	8.

	 	No Mitigation or Offset; Enforcement of the Plan
	 	 	13	 
	 
	 	 	 	 	 	 
	9.

	 	Insurance and Indemnification
	 	 	14	 
	 
	 	 	 	 	 	 
	10.

	 	Withholding
	 	 	14	 
	 
	 	 	 	 	 	 
	11.

	 	Default in Payment
	 	 	14	 
	 
	 	 	 	 	 	 
	12.

	 	Term
	 	 	14	 
	 
	 	 	 	 	 	 
	13.

	 	Funding of Benefits
	 	 	15	 
	 
	 	 	 	 	 	 
	14.

	 	Amendment or Modification
	 	 	15	 
	 
	 	 	 	 	 	 
	15.

	 	Successors
	 	 	15	 
	 
	 	 	 	 	 	 
	16.

	 	Severability
	 	 	15	 
	 
	 	 	 	 	 	 
	17.

	 	Survival
	 	 	16	 
	 
	 	 	 	 	 	 
	18.

	 	Notices
	 	 	16	 
	 
	 	 	 	 	 	 
	19.

	 	Governing Law
	 	 	16	 
	 
	 	 	 	 	 	 
	20.

	 	Headings and References
	 	 	16	 
	 
	 	 	 	 	 	 
	21.

	 	Interpretation
	 	 	16	 






 









 





BELO CORP.

CHANGE IN CONTROL SEVERANCE PLAN




     1. Purpose of the Plan. The Board of Directors (the “Board”) of Belo Corp.
(the “Company”) recognizes the importance to Company and its shareholders of ensuring that
the Company and its subsidiaries have the continued dedication and leadership of the Company’s
management team, notwithstanding the possibility, threat or occurrence of a Change in Control (as
defined below). The Board recognizes that the possibility of a Change in Control and the
uncertainty it may create among management may result in the departure or distraction of management
personnel to the detriment of the Company and its shareholders. Therefore, the Board has decided
to adopt this Change in Control Severance Plan (the “Plan”) in order to encourage the
retention of management and to reduce the level of uncertainty and distraction that is likely to
result from a Change in Control or a potential Change in Control. The Plan is intended to qualify
for purposes of ERISA (as defined below) as an unfunded welfare plan maintained by the Company for
the purpose of providing benefits for a select group of management or highly compensated employees
exempt from the reporting and disclosure requirements of ERISA.



     2. Definitions. For purposes of the Plan, the following terms have the meanings set
forth below:



          (a) “Affiliate” means, with respect to any specified Person, any other Person that,
directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with, such specified Person.




          (b) “Annual Base Salary” means a Participant’s annual base salary at the rate in
effect on the Severance Protection Date or such higher rate as may be in effect at any time after
the Severance Protection Date.




          (c) “Annual Bonus” means, except as otherwise expressly provided in Section 5(b)(ii)
and Section 5(b)(iii), the Participant’s annual incentive pay opportunity at the level in effect
on the Severance Protection Date or such higher level as may be in effect at any time after the
Severance Protection Date.




          (d) “Average Annual Bonus Award” means, as of a Participant’s Termination Date, the
Average Annual Bonus Award payable or actually paid to the Participant in respect of the three
fiscal years preceding such Participant’s Termination Date; provided, however, that
(i) if the Participant has not been employed by the Company or a Subsidiary for a sufficient length
of time to have been eligible for payment of at least one such annual incentive award, “Average
Annual Bonus Award” will then mean the target payout under the then-current annual incentive
plan for the fiscal year in which such Participant’s Termination Date occurs, (ii) for any fiscal
year during which an annual incentive award that was paid or is payable to the Participant was
prorated because of less than a full fiscal year of plan participation or employment, such award
will be annualized and (iii) if the Participant was not employed during any one or more of the
three fiscal years immediately preceding such Participant’s Termination Date or otherwise was not
eligible to receive an annual incentive award for such fiscal year, the




 









 







Average Annual Bonus Award will be determined on the basis of the number of fiscal years
during such period with respect to which the Participant was eligible to receive such an award.




          (e) “Cause” means, with respect to any Participant, the occurrence of any one of the
following:





          (i) the Participant is convicted of, or pleads guilty or nolo contendere to, a felony
involving moral turpitude or that involves misappropriation of the assets of the Company or
a Subsidiary;




          (ii) the Participant commits one or more acts or omissions constituting negligence,
fraud or other misconduct that have a materially detrimental effect on the Company or a
Subsidiary; or




          (iii) the Participant willfully commits a violation of any of the Company’s material
policies (including the Company’s code of business conduct and ethics, as in effect from
time to time) that is materially detrimental to the best interests of the Company.



          For purposes of this Section 2(e), no act or failure to act on the part of the Participant
will be considered “willful” unless it is done, or omitted to be done, by the Participant in bad
faith or without reasonable belief that the Participant’s action or omission was in the best
interests of the Company. The termination of employment of the Participant for Cause will not be
effective unless and until there has been delivered to the Participant a copy of a resolution duly
adopted by the Compensation Committee at a meeting called and held for such purpose (after
reasonable notice is provided to the Participant and the Participant is given an opportunity,
together with counsel, to be heard before the Compensation Committee), finding that, in the good
faith opinion of the Compensation Committee, the Participant is guilty of the conduct described in
clause (i), (ii) or (iii) above and specifying the particulars of such conduct in detail;
provided, however, that if the Participant is the Chief Executive Officer of the
Company, the foregoing determination will be made by the Board (excluding the Participant) before
which the Participant will be entitled to be heard with counsel.




          (f) “Change in Control” means the occurrence of any of the following:





          (i) individuals who, as of the Effective Date, were members of the Board (the
“Incumbent Directors”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director after the
Effective Date whose election, or nomination for election, by the Company’s shareholders was
approved by a vote of at least a majority of the Incumbent Directors will be considered as
though such individual were an Incumbent Director, other than any such
individual whose assumption of office after the Effective Date occurs as a result of an
actual or threatened proxy contest with respect to election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as
such term is used in Section 13(d) of the Exchange Act) (each, a “Person”), other
than the Board;




          (ii) the consummation of (A) a merger, consolidation or similar form of corporate
transaction involving the Company (each of the events referred to in this



2









 






clause (A) being hereinafter referred to as a “Reorganization”) or (B) a sale
or other disposition of all or substantially all the assets of the Company (a
“Sale”), unless, immediately following such Reorganization or Sale, (1) all or
substantially all the individuals and entities who were the “beneficial owners” (as such
term is defined in Rule 13d-3 under the Exchange Act (or a
successor rule thereto)) of
shares of the Company’s common stock or other securities eligible to vote for the election
of the Board outstanding immediately prior to the consummation of such Reorganization or
Sale (such securities, the “Company Voting Securities”) beneficially own, directly
or indirectly, more than 60% of the combined voting power of the then outstanding voting
securities of the corporation or other entity resulting from such Reorganization or Sale
(including a corporation or other entity that, as a result of such transaction, owns the
Company or all or substantially all the Company’s assets either directly or through one or
more subsidiaries) (the “Continuing Entity”) in substantially the same proportions
as their ownership, immediately prior to the consummation of such Reorganization or Sale, of
the outstanding Company Voting Securities (excluding any outstanding voting securities of
the Continuing Entity that such beneficial owners hold immediately following the
consummation of the Reorganization or Sale as a result of their ownership prior to such
consummation of voting securities of any corporation or other entity involved in or forming
part of such Reorganization or Sale other than the Company or a Subsidiary), (2) no Person
(excluding any employee benefit plan (or related trust) sponsored or maintained by the
Continuing Entity or any corporation or other entity controlled by the Continuing Entity)
beneficially owns, directly or indirectly, 30% or more of the combined voting power of the
then outstanding voting securities of the Continuing Entity and (3) at least a majority of
the members of the board of directors or other governing body of the Continuing Entity were
Incumbent Directors at the time of the execution of the definitive agreement providing for
such Reorganization or Sale or, in the absence of such an agreement, at the time at which
approval of the Board was obtained for such Reorganization or Sale;




          (iii) the shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company; or




          (iv) any Person, corporation or other entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) becomes the beneficial owner, directly or
indirectly, of securities of the Company representing 30% or more of the combined voting
power of the Company Voting Securities; provided, however, that for purposes
of this subparagraph (iv), the following acquisitions will not constitute a Change in
Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company
or any Subsidiary, (C) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary, (D) any acquisition by an
underwriter temporarily holding such Company Voting Securities pursuant to an offering of
such securities or (E) any acquisition pursuant to a Reorganization or Sale that does not
constitute a Change in Control for purposes of Section 2(f)(ii).



          For purposes of applying the provisions of Section 2(f)(ii)(B)(2) and Section 2(f)(iv)
at any time on or after the Effective Date, neither Robert W. Decherd nor any




3









 








Person holding voting securities of the Continuing Entity or Company Voting Securities, as
applicable, over which Robert W. Decherd has sole or shared voting power will be considered to be
the beneficial owner of 30% or more of such voting securities or Company Voting Securities.




          (g) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.




          (h) “Compensation Committee” means the Compensation Committee of the Board.




          (i) “Disability” means the Participant’s absence for a period of 180 consecutive
business days as a result of incapacity due to a physical or mental condition, illness or injury
which is determined to be total and permanent by a physician mutually acceptable to the Company and
the Participant or the Participant’s legal representative (such acceptance not to be unreasonably
withheld) after such physician has completed an examination of the Participant.




          (j) “Effective Date” means October 1, 2007.




          (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor statute thereto.




          (l) “Excise Tax” means the excise tax imposed by Section 4999 of the Code, together
with any interest or penalties imposed with respect to such tax.




          (m) “Good Reason” means, with respect to any Participant and without the Participant’s
express written consent, the occurrence of any one or more of the following at any time during the
Severance Protection Period:





          (i) the failure to elect or reelect or otherwise to maintain the Participant in the
office or the position, or a substantially equivalent or better office or position, of or
with the Company or a Subsidiary, which the Participant held immediately prior to a Change
in Control, or the removal of the Participant as a member of the Board of Directors of the
Company (or any successor to the Company) if the Participant was a Director of the Company
immediately prior to the Change in Control;




          (ii) (A) a significant adverse change in the nature or scope of the authorities,
powers, functions, responsibilities or duties attached to the position with the Company and
any Subsidiary which the Participant held immediately prior to the Change in Control, (B) a
reduction in the aggregate of the Participant’s Annual Base Salary or Annual Bonus received
from the Company and any Subsidiary, (C) a reduction in the Participant’s long-term
incentive compensation opportunity from the level in effect on the Severance Protection Date
or such higher level as may be in effect at any time after the Severance Protection Date or
(D) the termination or denial of the Participant’s rights to retirement or welfare benefits
or a reduction in the scope or value of such benefits (other than any such reduction that is
generally applicable to all employees of the Company), and such change, reduction or
termination is not remedied by the Company within ten business days after receipt by the
Company of written notice from the Participant of such change, reduction or termination, as
the case may be;



4









 






          (iii) any change of the Participant’s principal place of employment to a location more
than 50 miles from the Participant’s principal place of employment immediately prior to a
Change in Control;




          (iv) any failure of the Company to pay the Participant any compensation when due (other
than an inadvertent failure that is remedied within ten business days after receipt of
written notice from the Participant);




          (v) the delivery by the Company or any Subsidiary of a written notice to the
Participant of the intent to terminate the Participant’s employment for any reason, other
than Cause or Disability, regardless of whether such termination is intended to become
effective during or after the Severance Protection Period; or




          (vi) any failure by the Company to comply with and satisfy Section 15.



          The Participant’s right to terminate employment for Good Reason will not be affected by the
Participant’s incapacity due to physical or mental illness. A termination of employment by the
Participant for Good Reason for purposes of the Plan will be effective only if the Participant
gives the Company written notice (“Notice of Termination for Good Reason”) of the
termination setting forth in reasonable detail the specific conduct of the Company that constitutes
Good Reason and the specific provisions of the Plan on which the Participant relied. Unless the
parties agree otherwise, a termination of employment by the Participant for Good Reason will be
effective on the 30th day following the date when the Notice of Termination for Good Reason is
given, unless the Company elects to treat such termination as effective as of an earlier date;
provided, however, that so long as an event that constitutes Good Reason occurs
during the Severance Protection Period and the Participant delivers the Notice of Termination for
Good Reason at any time prior to the expiration of the Severance Protection Period, the termination
of the Participant’s employment will be deemed to be a resignation for Good Reason during the
Severance Protection Period. If the Company disputes the existence of Good Reason, the Company
will have the burden of proof to establish that Good Reason does not exist. If the Participant
continues to provide services to the Company after one of the events giving rise to Good Reason has
occurred, the Participant will not be deemed to have consented to such event or to have waived the
Participant’s right to terminate his or her employment at any time during the Severance Period for
Good Reason in connection with such event.




          (n) “Payment” means any payment, benefit or distribution (or combination thereof) by
the Company, any of its Affiliates or any trust established by the Company or its Affiliates, to or
for the benefit of a Participant, whether paid, payable, distributed, distributable or provided
pursuant to the Plan or otherwise, including any payment, benefit or other right that constitutes a
“parachute payment” within the meaning of Section 280G of the Code.




          (o) “Person” has the meaning set forth in Section 2(f)(i).




          (p) “Separation from Service” means a Participant’s separation from service within the
meaning of Section 409A of the Code.




5









 








          (q) “Severance Multiple” will mean, with respect to any Participant, the number that
corresponds to such Participant’s Tier (as set forth on Schedule A) as of the Severance Protection
Date.




          (r) “Severance Protection Date” means the date on which a Change in Control occurs
during the Term, except as otherwise provided in Section 3(b).




          (s) “Severance Protection Period” means, with respect to any Participant, the period
commencing on the Severance Protection Date and ending on the earlier of (i) the second anniversary
of the Severance Protection Date and (ii) the Participant’s Termination Date. If a Participant’s
Severance Protection Period ends on the Participant’s Termination Date, the Severance Protection
Period will be deemed to include such Termination Date.




          (t) “Subsidiary” means any entity in which the Company, directly or indirectly,
possesses 50% or more of the total combined voting power of all classes of its stock.




          (u) “Term” has the meaning set forth in Section 12.




          (v) “Termination Date” means the date on which a Participant has a Separation from
Service.




          (w) “Tier” has the meaning set forth in Section 3.




     3. Eligibility.



          (a) Employees in Certain Positions. Participants in the Plan (“Participants”)
are those employees of the Company and its Subsidiaries (other than an employee who enters into an
individual change in control severance agreement with the Company) who are actively employed by the
Company or a Subsidiary on or following the Effective Date in a position set forth on Schedule A
(each set of positions set forth on Schedule A is referred to the Plan as a “Tier”) and who
are designated by the Compensation Committee as eligible to participate in the Plan.
Notwithstanding the foregoing, if an employee becomes a Participant prior to the Severance
Protection Date but is not actively employed by the Company or a Subsidiary in a position set forth
on Schedule A immediately prior to the Severance Protection Date, or if an employee was not
employed in a position set forth on Schedule A prior to the Severance Protection Date but became
employed in such a position following such date as a result of hiring or promotion, such employee
will not be considered a Participant for any purpose under the Plan unless otherwise determined by
the Compensation Committee.




          (b) Employment Rights. Participation in the Plan does not alter the status of a
Participant as an at-will employee, and nothing the Plan will reduce or eliminate the right of the
Company and its Subsidiaries to terminate a Participant’s employment at any time for any reason or
the right of a Participant to resign at any time for any reason. However, any Separation from
Service of a Participant or removal of a Participant from his or her office or position in the
Company or any Subsidiary that follows the commencement of any discussion with a Person that
ultimately results in a Change in Control will be deemed to be a Separation from Service or removal
of the Participant following the Severance Protection Date; provided that if the Separation
from Service precedes the Change in Control, then for purposes of determining the




6









 







timing of any payments to be made pursuant to Section 5(b), such payments will be measured
from the date of the Change in Control rather than from the date of the Participant’s Separation
from Service.




     4. Effect of a Change in Control on Long-Term Incentive Compensation Awards. In the
event of a Change in Control during the Term, notwithstanding any provision to the contrary in any
of the Company’s equity-based, equity-related or other long-term incentive compensation plans,
practices, policies and programs (including the Company’s 1986 Long Term Incentive Plan, 1995
Executive Compensation Plan, 2000 Executive Compensation Plan and 2004 Executive Compensation Plan)
each as amended or any award agreements thereunder, (i) all outstanding stock options, stock
appreciation rights and similar rights and awards then held by each Participant that are
unexercisable or otherwise unvested will automatically become fully vested and immediately
exercisable, as the case may be, (ii)  all outstanding equity-based, equity-related and other
long-term incentive awards then held by such Participant that are subject to performance-based
vesting criteria will automatically become fully vested and earned at a deemed performance level
equal to the greater of the target performance level or the performance level determined by actual
performance through the date ending on the date of the Change in Control and (iii) all other
outstanding equity-based, equity-related and long-term incentive awards, to the extent not covered
by the foregoing clause (i) or (ii), then held by such Participant that are unvested or subject to
restrictions or forfeiture will automatically become fully vested and all restrictions and
forfeiture provisions related thereto will lapse.



     5. Termination of Employment.



          (a) Termination by the Company for Cause; Voluntary Resignation by the Participant without
Good Reason. If, during the Severance Protection Period, a Participant’s employment is
terminated either by the Company or its Subsidiaries for Cause or, except as otherwise provide in
Section 5(c), by resignation of the Participant without Good Reason, the Participant will not be
entitled to any compensation or benefits under the Plan other than any payments the Company is at
the time of such termination or resignation obligated to make pursuant to Section 4 (the
“Accrued Rights”).




          (b) Termination During the Severance Protection Period by the Company without Cause or by
the Participant for Good Reason.





          (i) Release of Claims. If during the Severance Protection Period a
Participant’s employment is terminated by the Company or any of its Subsidiaries other than
for Cause or Disability or by resignation of the Participant with Good Reason, then, in
addition to the Accrued Rights the Participant will be entitled to the payments and benefits
set forth in this Section 5(b), provided that the Participant has executed and
delivered to the Company a Separation Agreement and Release substantially in the form
attached to the Plan as Exhibit A and such release has become effective and irrevocable in
accordance with its terms no later than the first day of the seventh month after the
Participant’s Termination Date. If the Participant fails to furnish such release, or if the
release furnished by the Participant has not become effective and irrevocable by the first
day of the seventh month after the Participant’s Termination Date, the Participant will not
be entitled to any payment or benefit under the Plan other than the Accrued Rights.



7









 






          (ii) Severance Pay. The Company will pay the Participant an amount equal to
the Participant’s Severance Multiple times the sum of (A) the Participant’s Annual Base
Salary (determined without regard to any reduction giving rise to Good Reason) and (B) the
greater of the Participant’s Average Annual Bonus Award and the Participant’s Annual Bonus
at the target level of performance for the fiscal year that includes the Termination Date in
a lump-sum payment payable as soon as practicable on or after the first day of the seventh
month after the Participant’s Termination Date but in no event later than 30 days after the
first day of such seventh month. The foregoing amounts will be reduced by the value of any
other cash severance payments relating to salary or bonus continuation the Participant is
otherwise eligible to receive upon termination of employment under any severance plan,
practice, policy or program of the Company or any Subsidiary, unless such plan, policy or
program expressly provides that a cash severance or retention payment is in addition to the
payments and benefits under this Plan.




          (iii) Annual Bonus. To the extent not paid under the Company’s annual bonus
plan then in effect, the Company will pay the Participant an amount equal to the
Participant’s Annual Bonus in effect as of the Participant’s Termination Date at a deemed
performance level equal to the greater of the target performance level or the performance
level determined by actual performance through the Termination Date, without proration for
less than a full performance period, in a lump-sum payment payable as soon as practicable on
or after the first day of the seventh month after the Participant’s Termination Date but in
no event later than 30 days after the first day of such seventh month.




          (iv) Retirement Plan Benefits. With respect to any employee pension plan
(within the meaning of Section 3(2) of ERISA) that is a defined contribution plan in which
the Participant was an active participant immediately prior to the Participant’s Termination
Date, the Company will determine the amount of Company contributions the Participant would
have been entitled to receive pursuant to such plan if the Participant (A) had remained an
active participant in such plan during the number of years equal to the Participant’s
Severance Multiple (such period, the “Continuation Period”), and (B) had made
pre-tax and after-tax contributions at the highest rate permitted by the plan, based on the
terms of the plan in effect on the Termination Date. The Company will make a lump-sum cash
payment to the Participant in an amount equal to the amount of such Company contributions as
soon as practicable on or after the first day of the seventh month after the Participant’s
Termination Date but in no event later than 30 days after the first day of such seventh
month.




          (v) Welfare Benefits. In lieu of continued participation during the
Continuation Period (as defined in Section 5(b)(iv)) in the Company’s medical and dental
benefits, the Company will make a lump-sum cash payment to the Participant in an amount
equal to (A) the Company’s annual cost of providing such benefits to the Participant and the
Participant’s spouse and dependents based on the Participant’s medical and dental benefit
elections in effect immediately prior to the Termination Date multiplied by (B) the number
of years in the Continuation Period. For purposes of this Section 5(b)(v), the Company’s
annual cost of providing medical or dental benefits will



8









 







be equal to the COBRA cost of such benefits on the Termination Date determined without
regard to the two percent administrative charge, less the rate of employee premiums for such
benefits charged to the Participant immediately prior the Termination Date.




          (vi) Long-Term Incentive Compensation Awards. Notwithstanding any provision to
the contrary in any of the Company’s or any of its Subsidiary’s equity-based, equity-related
or other long-term incentive compensation plans, practices, policies and programs or any
award agreements thereunder, (A) all outstanding stock options, stock appreciation rights
and similar rights and awards then held by the Executive that are unexercisable or otherwise
unvested will automatically become fully vested and immediately exercisable, and all stock
options and stock appreciation rights then held by the Executive (whether vested or
unvested) will remain exercisable until the earlier of the end of the maximum period of time
permissible without the imposition of the Section 409A Tax and their originally scheduled
expiration dates, (B) all outstanding equity-based, equity-related and other long-term
incentive awards then held by the Executive that are subject to performance-based vesting
criteria will automatically become fully vested and earned at a deemed performance level
equal to the greater of the target performance level or the performance level determined by
actual performance through the Termination Date and (C) all other outstanding equity-based,
equity-related and long-term incentive awards, to the extent not covered by the foregoing
clauses (A) and (B), then held by the Executive that are unvested or subject to restrictions
or forfeiture will automatically become fully vested and all restrictions and forfeiture
provisions related thereto will lapse.




          (vii) Outplacement Services. The Participant will be entitled to reimbursement
from the Company, upon such Participant’s presentation to the Company of a written invoice
from the applicable vendor requesting payment, for the cost of profession management support
offered by a reputable and experienced vendor selected by the Participant, provided that
(A) the cost of such services do not exceed $25,000 and (B) such services are provided for a
period not to exceed 18 months following the Participant’s Termination Date.



          (c) Resignation During the Severance Protection Period. A Participant may voluntarily
terminate employment with the Company or any Subsidiary for any reason or without reason during the
30-day period immediately following the first anniversary of a Change in Control, the Participant
will be entitled to the payments and benefits set forth in Section 5(b) in the same manner and
subject to the same conditions as if the termination of employment was with Good Reason.




          (d) Death or Disability. In the event of the termination of a Participant’s
employment at any time as a result of death or Disability, neither the Participant nor the
Participant’s estate will be entitled to any payments or benefits under the Plan, other than
payments with respect to the Accrued Rights. If, however, a Participant dies after his Termination
Date but prior to receiving payment of the amounts set forth in Section 5(b)(ii), (iii) and (iv),
such amounts will be paid to the Participant’s estate as soon as practicable but in no event later
than 30th day after the Participant’s death; provided that the Participant had
furnished




9









 







the release described in Section 5(b)(i) prior to his or her death and such release has
become effective and irrevocable by the 30th day after the Participant’s death. If the
Participant failed to furnish such release, or if the release furnished by the Participant has not
become effective and irrevocable by the 30th day after the Participant’s death, the
Participant’s estate will not be entitled to any payment or benefit under the Plan other than the
Accrued Rights.




          (e) Termination of Employment and Payment Provisions. For purposes of the Plan, a
Participant will not be considered to have a termination of employment unless the termination of
employment qualifies as a Separation from Service. The date on which a Participant’s benefit under
the Plan is paid will be determined at the sole discretion of the Compensation Committee in
accordance with the applicable provisions of this Section 5, and the Participant will have no
discretion with respect to the date of such payment.




     6. Certain Additional Payments by the Company.



          (a) Gross-Up Payment. Notwithstanding anything in the Plan to the contrary and except
as set forth below, in the event it will be determined that any Payment that is paid or payable to
or for the benefit of a Participant during the Term would be subject to the Excise Tax, such
Participant will be entitled to receive an additional payment (a “280G Gross-Up Payment”)
in an amount such that, after payment by such Participant of all taxes (and any interest or
penalties imposed with respect to such taxes), including any income and employment taxes (and any
interest and penalties imposed with respect thereto) and Excise Taxes imposed upon the 280G
Gross-Up Payment, such Participant retains an amount of the 280G Gross-Up Payment equal to the
Excise Tax imposed upon such Payments. The Company’s obligation to make 280G Gross-Up Payments
under this Section 6 will not be conditioned upon a Participant’s termination of employment and
will survive and apply after such Participant’s termination of employment.




          (b) Calculation of Gross-Up Payment. Subject to the provisions of Section 6(c), all
determinations required to be made under this Section 6, including whether and when a 280G
Gross-Up Payment is required, the amount of such 280G Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, will be made in accordance with the terms of this
Section 6 by a nationally recognized certified public accounting firm that will be selected by the
Participant in his or her sole discretion (the “Accounting Firm”). The Accounting Firm
will provide detailed supporting calculations both to the Company and the Participant within 15
business days of the receipt of notice from the Participant that there has been a Payment or such
earlier time as is requested by the Participant or the Company. For purposes of determining the
amount of any 280G Gross-Up Payment, each Participant will be deemed to pay Federal income tax at
the highest marginal rate applicable to individuals in the calendar year in which any such 280G
Gross-Up Payment is to be made and deemed to pay state and local income taxes at the highest
marginal rates applicable to individuals in the state or locality of the Participant’s residence or
place of employment in the calendar year in which any such 280G Gross-Up Payment is to be made, net
of the maximum reduction in Federal income taxes that can be obtained from deduction of state and
local taxes, taking into account limitations applicable to individuals subject to Federal income
tax at the highest marginal rate. All fees and expenses of the Accounting Firm will be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 6, will be
paid by the Company to the applicable Participant within five business days of the receipt of the
Accounting Firm’s determination. If the




10









 







Accounting Firm determines that no Excise Tax is payable by the Participant, it will so
indicate to the Participant in writing. Any determination by the Accounting Firm will be binding
upon the Company and the Participant. As a result of the uncertainty in the application of the
Excise Tax, it is possible that the amount of the 280G Gross-Up Payment determined by the
Accounting Firm to be due to a Participant, consistent with the calculations required to be made
hereunder, will be lower than the amount actually due (an “Underpayment”). In the event
the Company exhausts its remedies pursuant to Section 6(c) and the Participant thereafter is
required to make a payment of any Excise Tax, the Accounting Firm will determine the amount of the
Underpayment that has occurred, and any such Underpayment will be paid by the Company to such
Participant within five business days of the receipt of the Accounting Firm’s determination.




          (c) Notice of Claims. A Participant will notify the Company in writing of any written
claim by the Internal Revenue Service that, if successful, would require the payment by the Company
of a 280G Gross-Up Payment. Such notification will be given as soon as practicable, but no later
than 30 days after the Participant is informed in writing of such claim. Failure to give timely
notice will not prejudice any Participant’s right to 280G Gross-Up Payments and rights of indemnity
under this Section 6, unless, and solely to the extent that, the Company has been prejudiced in a
material respect by such failure. The Participant will advise the Company of the nature of such
claim and the date on which such claim is requested to be paid. No Participant will pay such claim
prior to the expiration of the 30-day period following the date on which the Participant gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies a Participant in writing prior to the
expiration of such period that the Company wishes to contest such claim, the Participant will
(i) give the Company any information reasonably requested by the Company relating to such claim,
(ii) take such action in connection with contesting such claim as the Company will reasonably
request in writing from time to time, including accepting legal representation with respect to such
claim by an attorney reasonably selected by the Company, (iii) cooperate with the Company in good
faith in order effectively to contest such claim and (iv) permit the Company to participate in any
proceedings relating to such claim; provided, however, that the Company will bear
and pay directly all costs and expenses (including additional income taxes, interest and penalties)
incurred in connection with such contest, and will indemnify and hold the Participant harmless, on
an after-tax basis, for any Excise Tax or income tax (including interest or penalties) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 6(c), the Company will control all proceedings taken in
connection with such contest, and, at its sole discretion, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the applicable taxing authority
in respect of such claim and may, at its sole discretion, either direct the Participant to pay the
tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Participant agrees to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the Company will
determine; provided, however, that (A) if the Company directs the Participant to
pay such claim and sue for a refund, the Company will advance the amount of such payment to the
Participant, on an interest-free basis, and will indemnify and hold the Participant harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with
respect to such advance or with respect to any imputed income in connection with such advance and
(B) if such contest results in any extension of the statute of limitations relating to payment of
taxes for the taxable




11









 







year of the Participant with respect to which such contested amount is claimed to be due, such
extension must be limited solely to such contested amount. Furthermore, the Company’s control of
the contest will be limited to issues with respect to which the 280G Gross-Up Payment would be
payable hereunder, and each Participant will be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing authority.




          (d) Refunds. If, after the receipt by a Participant of an amount advanced by the
Company pursuant to Section 6(c), the Participant becomes entitled to receive any refund with
respect to such claim, the Participant will (subject to the Company’s complying with the
requirements of Section 6(c)) promptly pay to the Company the amount of such refund received
(together with any interest paid or credited thereon after taxes applicable thereto). If, after
the receipt by a Participant of an amount advanced by the Company pursuant to Section 6(c), a
determination is made that the Participant will not be entitled to any refund with respect to such
claim and the Company does not notify Participant in writing of its intent to contest such denial
of refund prior to the expiration of the 30-day period after such determination, then such advance
will be forgiven and will not be required to be repaid and the amount of such advance will offset,
to the extent thereof, the amount of 280G Gross-Up Payment required to be paid.




          (e) Payment Deadline. Notwithstanding any other provision of this Section 6 to the
contrary, any Gross-Up Payment, Underpayment or other payment or reimbursement made pursuant to
this Section 6 will be paid or reimbursed no later than December 31st of the year
following the year in which the applicable taxes are remitted or, in the case of reimbursement of
expenses incurred due to a tax audit or litigation to which there is no remittance of taxes, no
later than the end of the year following the year in which the audit is completed or there is a
final and nonappealable settlement or other resolution of the litigation in accordance with
Treasury Regulation Section 1.409A-3(i)(1)(v).




     7. Section 409A.



          (a) Compliance. It is the intention of the Company that the provisions of the Plan
comply with Section 409A of the Code, and all provisions of the Plan will be construed and
interpreted in a manner consistent with Section 409A of the Code. From and after the Severance
Protection Date, (i) the Company will administer and operate the Plan and each Participant’s rights
and benefits hereunder in compliance with Section 409A of the Code and any rules, regulations or
other guidance promulgated thereunder as in effect from time to time and (ii) in the event that the
Company determines that any provision of the Plan does not comply with Section 409A or any such
rules, regulations or guidance and that a Participant may become subject to additional tax,
interest or penalties under Section 409A of the Code (such tax, interest and penalties a
“Section 409A Tax”), the Company may amend or modify such provision solely to the extent
necessary to avoid the application of such Section 409A Tax, provided that such amendment
or modification will not reduce the economic value to the affected Participant of such provision.




          (b) 409A Gross-Up Payment. (i) In the event that, notwithstanding the provisions of
Section 7(a), a Participant is subject to a Section 409A Tax with respect to any such provision,
the Participant will be entitled to receive an additional payment from the Company (a “409A
Gross-Up Payment”) in an amount such that, after payment by the



12









 






Participant of all taxes (and any interest or penalties imposed with respect to such taxes),
including any income and employment taxes (and any interest and penalties imposed with respect
thereto) and any Section 409A Tax imposed upon the 409A Gross-Up Payment, the Participant retains
an amount of the 409A Gross-Up Payment equal to the Section 409A Tax imposed with respect to such
provision. The provisions of Sections 6(c) and 6(d) will apply, to the same extent and in the
same manner as if the Section 409A Tax were an Excise Tax, to any claim by the Internal Revenue
Service that, if successful, would give rise to a 409A Gross-Up Payment by the Company;
provided, however that any 409A Gross-Up Payment will be paid or reimbursed no
later than December 31st of the year following the year in which the applicable taxes
are remitted or, in the case of reimbursement of expenses incurred due to a tax audit or litigation
to which there is no remittance of taxes, no later than the end of the year following the year in
which the audit is completed or there is a final and nonappealable settlement or other resolution
of the litigation in accordance with Treasury Regulation Section 1.409A-3(i)(1)(v).




          (c) Acceleration of Payments. To the extent that any payment or benefit required to
be made under the Plan constitutes nonqualified deferred compensation subject to Section 409A of
the Code, the time or schedule of such payment or benefit may not be accelerated except to the
extent permitted by Section 409A of the Code. Where Section 409A of the Code permits a payment or
benefit that constitutes nonqualified deferred compensation to be accelerated but does not require
the Plan to expressly provide for such acceleration, the payment or benefit may be accelerated in
the sole discretion of the Compensation Committee.




     8. No Mitigation or Offset; Enforcement of the Plan.



          (a) Mitigation and Offset. The Company’s obligation to make the payments and
otherwise perform its obligations provided for in the Plan will not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against any Participant or others. In no event will any Participant be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Participant
under any of the provisions of the Plan and, except as otherwise expressly provided for in the
Plan, such amounts will not be reduced whether or not the Participant obtains other employment.




          (b) Expense of Enforcement. The Company will reimburse, upon the Participant’s
demand, any and all reasonable legal fees and expenses that the Participant may incur as a result
of any contest, dispute or proceeding (regardless of whether formal legal proceedings are ever
commenced and regardless of the outcome thereof and including all stages of any contest, dispute or
proceeding) by the Company, the Participant or any other Person with respect to the validity or
enforceability of, or liability under, any provision of the Plan or any guarantee of performance
thereof (including as a result of any contest by the Participant regarding the amount of any
payment owed pursuant to the Plan), and will indemnify and hold the Participant harmless, on an
after-tax basis, for any tax (including Excise Tax) imposed on the Participant as a result of
payment by the Company of such legal fees and expenses. Any such payment or reimbursement will be
for expenses incurred by the Participant during his lifetime, and such payment or reimbursement
will be made not later than December 31st of the year following the year in which the
Participant incurs the expense; provided, that in no event will the



13









 






amount of expenses eligible for payment or reimbursement in one year affect the amount of
expenses to be paid or reimbursed in any other taxable year.




     9. Insurance and Indemnification. Beginning upon the Severance Protection Date and
for so long thereafter as any Participant could be subject to liability, the Company will keep in
place a directors’ and officers’ liability insurance policy (or policies) providing comprehensive
coverage to each Participant for claims relating to the Participant’s service as an employee,
officer or director of the Company or its Subsidiaries, at a level (if any) that is no less
favorable to the Participant (e.g., with respect to scope, amounts and deductibles) than the level
(if any) provided to similarly situated active employees of the Company and its Subsidiaries. The
Company will indemnify each Participant to the fullest extent permitted by the Company’s
Certificate of Incorporation and Bylaws, any officer indemnification agreement between the
Participant and the Company and the general laws of the State of Delaware and will provide
indemnification expenses in advance to the extent permitted thereby. The indemnification and
advance of any expenses provided by the Company pursuant to the Plan will not be deemed exclusive
of any other rights to which a Participant may be entitled under any law (common or statutory), or
any agreement, vote of shareholders or disinterested directors or other provision that is
consistent with law, both as to action in his or her official capacity and as to action in another
capacity while holding office or while employed or acting as agent for the Company or any
Subsidiary, and such rights will continue in respect of all events occurring while the Participant
was a director of or employed by the Company or any Subsidiary that continue after the Participant
has ceased to be a director of or employed by the Company or any Subsidiary, and will inure to the
benefit of the estate, heirs, executors and administrators of the Participant.



     10. Withholding. The Company will deduct and withhold from any amounts payable under
the Plan such Federal, state, local, foreign or other taxes as are required to be withheld pursuant
to any applicable law or regulation.



     11. Default in Payment. Any payment not made within ten business days after it is due
in accordance with the Plan will thereafter bear interest, compounded annually, at the so-called
composite “prime rate” as quoted from time to time during the relevant period in The Wall Street
Journal. Any change in such prime rate will be effective on and as of the date of such change.
For purposes of this Section 11, the due date of the payments required under Section 5(b)(ii),
(iii) and (iv) and under Section 5(d) is the first day of the seventh month after the
Participant’s Termination Date or date of death, as applicable, or if such payments are measured
from the date of the Change in Control pursuant to Section 3(b), the date of the Change in
Control.



     12. Term. The Plan will remain in effect until the third anniversary of the Effective
Date (such period, as extended by the provisions of this Section 12, the “Term”);
provided that beginning on the second anniversary of the Effective Date and on each
anniversary thereafter (each, an “Extension Date”), the Plan will be automatically extended
for an additional one-year period, unless, pursuant to a resolution adopted by the Board at least
60 days prior to the Extension Date, the Company determines not to extend the Plan.
Notwithstanding the foregoing, in the event of a Change in Control during the Term, the Plan will
continue in full force and effect in accordance with its terms and will not terminate or expire
until all the Company’s obligations to all Participants have been satisfied in full;
provided, however, that,



14









 




notwithstanding any extension of the Term, the Plan will only be effective with respect to the
first Change in Control that occurs following the Effective Date, and the Participants will not be
entitled to any payments or benefits pursuant to the Plan with respect to any subsequent Change in
Control.




     13. Funding of Benefits. Promptly following the earlier of (i) the approval by the
Board of a transaction that, if consummated, would constitute a Change in Control or (ii) the
occurrence of an event that constitutes a Change in Control, the Company will contribute to a trust
an amount sufficient to provide the payments and benefits (including any 280G Gross-Up Payment and
any 409A Gross-Up Payment) that may become payable under the Plan. The trust will be irrevocable
from and after the date on which a Change in Control occurs, and the assets of the trust will at
all times be subject to the claims of the Company’s unsecured creditors. If a transaction approved
by the Board is terminated or abandoned before a Change in Control occurs, the Company may
terminate the trust and direct the trustee to pay to the Company the assets of the trust;
provided that the Company will remain obligated to fund payments and benefits to the extent
provided in this Section 13 upon the approval by the Board of any subsequent transaction or upon a
subsequent Change in Control.



     14. Amendment or Modification. The Board may amend or modify the Plan at any time;
provided, however, that except as specifically provided in Section 7, (i) no
amendment that is adverse to the interests of a Participant will be effective during the one-year
period ending on the Severance Protection Date without the prior written consent of such
Participant and (ii) on and after the Severance Protection Date, the Plan may not be amended at any
time in a manner that is adverse to a Participant without the prior written consent of such
Participant. The failure of a Participant to insist upon strict adherence to any term of the Plan
on any occasion will not be considered a waiver of such Participant’s rights or deprive such
Participant of the right thereafter to insist upon strict adherence to that term or any other term
of the Plan. No failure or delay by any Participant in exercising any right or power hereunder
will operate as a waiver thereof, nor will any single or partial exercise of any such right or
power, or any abandonment of any steps to enforce such right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.



     15. Successors. This Plan will bind any successor (a “Successor”) to all or
substantially all of the business or assets of the Company (whether direct or indirect, by
purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the
Company would have been obligated under the Plan if no such succession had taken place. In the
case of any transaction in which a Successor would not, pursuant to the foregoing provision or by
operation of law, be bound by the Plan, the Company will require such Successor expressly and
unconditionally to assume and agree to perform the Company’s obligations under the Plan, in the
same manner and to the same extent that the Company would have been required to perform such
obligations if no such succession had taken place. The term “Company,” as used in the Plan, will
mean the Company as hereinbefore defined and any Successor and any assignee to such business or
assets which by reason hereof becomes bound by the Plan.



     16. Severability. If any term or provision of the Plan is invalid, illegal or
incapable of being enforced by any applicable law or public policy, all other conditions and
provisions of the Plan will nonetheless remain in full force and effect.



15









 





     17. Survival. The provisions of the Plan will survive and remain binding and
enforceable, notwithstanding the expiration or termination of the Plan, the termination of a
Participant’s employment with the Company for any reason or any settlement of the financial rights
and obligations arising from such Participant’s participation under the Plan, to the extent
necessary to preserve the intended benefits of the Plan.



     18. Notices. All notices or other communications required or permitted by the Plan
will be made in writing and all such notices or communications will be deemed to have been duly
given when delivered or (unless otherwise specified) mailed by United States certified or
registered mail, return receipt requested, postage prepaid, addressed as follows:



	 	 	 	 	 	 	 
	 	 	If to the Company:	 	Belo Corp.
	 	 	 	 	400 South Record Street

Dallas, Texas 75202
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Vice President and General Counsel
	 

	 	 	 	 	 	Fax: (214) 977-7116

and

Senior Vice President/Human Resources

Fax: (214) 977-2721
	 
	 	 	 	 	 	 
	 	 	If to a Participant:	 	 to such Participant’s address as most
recently furnished to the Company and set forth in the Company’s records;





or to such other address as any party may have furnished to the other in writing in accordance
herewith, except that notices of change of address will be effective only upon receipt.




     19. GOVERNING LAW. THIS PLAN WILL BE DEEMED TO BE MADE IN THE STATE OF TEXAS, AND THE
VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS PLAN IN ALL RESPECTS WILL BE
GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAW.



     20. Headings and References. The headings of the Plan are inserted for convenience
only and neither constitute a part of the Plan nor affect in any way the meaning or interpretation
of the Plan. When a reference in the Plan is made to a Section, such reference will be to a
Section of the Plan unless otherwise indicated.



     21. Interpretation. For purposes of the Plan, the words “include” and “including,”
and variations thereof, will not be deemed to be terms of limitation but rather will be deemed to
be followed by the words “without limitation.” The term “or” is not exclusive. The word “extent”
in the phrase “to the extent” will mean the degree to which a subject or other thing extends, and
such phrase will not mean simply “if.”



	 	 	 
	 

	 	Adopted by the Board of Directors of Belo Corp.

on September 28, 2007.






16









 





SCHEDULE A




	 	 	 	 	 	 	 
	POSITION	 	TIER	 	SEVERANCE MULTIPLE
	Chief Executive Officer

	 	Tier I
	 	 	3.0	 
	 
	 	 	 	 	 	 
	Members of the Company’s Management

	 	Tier II
	 	 	2.5	 
	Committee (other than the Chief Executive 

Officer)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executive Vice Presidents and Senior Vice

	 	Tier III
	 	 	2.0	 
	Presidents (other than Management
	 	 	 	 	 	 
	Committee members)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Vice Presidents (not described in Tier II 

or Tier III)

	 	Tier IV
	 	 	1.5	 













 





EXHIBIT A




SEPARATION AGREEMENT AND RELEASE




     This SEPARATION AGREEMENT AND RELEASE (the “Agreement”), by and between Belo Corp. [or
appropriate employer company], a Delaware corporation (“Belo”), and                      (“Employee”), is
hereby delivered to Employee for consideration on                     . Employee shall have until 5:00
P.M. [time zone] on                      to consider and execute this Agreement.



WITNESSETH:




     WHEREAS, Employee is a participant in the Belo Corp. Change in Control Severance Plan (the
“Plan”); and



     WHEREAS, Belo and Employee mutually agree to sever their employment relationship in accordance
with the terms of the Plan; and



     WHEREAS, Employee’s contributions to Belo are of material value to Belo;



     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
parties do hereby agree as follows:



     Section 1. Separation of Employee. Effective                      (the “Separation Date”),
Employee shall no longer be employed by Belo or any Subsidiary (as defined in the Plan).
Employee’s termination of employment qualifies as a Separation from Service within the meaning of
the Plan.



     Section 2. Severance Payment. Should Employee execute and comply with this
Agreement, Belo shall provide Employee with the consideration under the Plan set forth below, to
which he would not otherwise be entitled. Employee acknowledges that if he has not executed and
returned this Agreement to Belo, and if the period for revoking this



 









 







Agreement after it has been executed by Employee has not expired by the first day of the seventh
month following the Separation Date, Employee will not be entitled to any payments or benefits
under the Plan.



          (a) Severance Pay and Annual Bonus. A lump-sum severance payment of $                     in
accordance with Sections 5(b)(ii) and 5(b)(iii) of the Plan, less applicable taxes and deductions.
Such amount shall be paid as soon as practicable on or after the first day of the seventh month
after the Separation Date. Under the terms of the Plan, Belo is under no obligation to make this
payment, and will do so only subject to Employee’s agreement to, and compliance with, the terms of
this Agreement. Unless otherwise provided for herein, except for this payment and other
obligations under the Plan, Employee will not be entitled to any further payments by Belo with
respect to salary, bonus, equity or other compensation matters arising from his employment with
Belo.




          (b) Retirement Plan Benefits. Employee shall be paid a lump-sum cash payment in lieu
of continued retirement plan contributions in accordance with Section 5(b)(iv) of the Plan.




          (c) Continued Welfare Benefits. Employee shall be paid a lump-sum cash payment in
lieu of continued medical and dental plan benefits in accordance with Section 5(b)(v) of the Plan.




          (d) Outplacement Services. Employee shall be entitled to reimbursement from Belo
upon presentation to Belo of a written invoice from the applicable vendor requesting payment for
the cost of profession management support offered by a reputable and experienced vendor selected by
Employee, provided that (1) the cost of such services



2









 






do not exceed $25,000 and (2) such services are provided for a period not to exceed 18 months
following the Separation Date.




          (e) Gross-Up Payment. If applicable, Employee shall receive gross-up payments in
accordance with Sections 6 and 7 of the Plan and shall comply with all other terms and conditions
of such Sections 6 and 7.




          (f) Long-Term Incentive Compensation Awards. Consistent with Section 5(b)(vi) of the
Plan, Belo’s equity-based, equity-related or other long-term incentive compensation plans and the
terms and provisions under which Employee’s long-term incentive awards were granted, (i) all of
Employee’s stock options, stock appreciation rights and similar rights and awards that
unexercisable or are not yet vested as of the Separation Date shall become fully vested and
immediately exercisable on the Separation Date, (ii) all of Employee’s outstanding equity-based,
equity-related and other long-term incentive awards that are subject to performance-based vesting
criteria will automatically become vested and earned at a deemed performance level equal to the
greater of the target performance level or the performance level determined by actual performance
through the date ending on the Separation Date and (iii) all other outstanding equity-based,
equity-related and long-term incentive awards held by Employee that are unvested or subject to
restrictions or forfeiture will automatically become fully vested and all restrictions and
forfeiture provisions related thereto will lapse. All stock options vested as of the Separation
Date shall remain exercisable for the full length of their original term.




     Section 3. Post-Separation Covenants. In consideration of the promises and payments
made or to be made by Belo pursuant to this Agreement, and in order to aid in



3









 







the protection of the confidential and proprietary information and goodwill of Belo, Employee
agrees as follows:



          (a) Company Property, Trade Secrets and Proprietary Information. Employee
acknowledges that, in his employment with Belo, he received sophisticated training and development
in the broadcasting business. Employee further agrees that he acquired knowledge of trade secrets
and other confidential and proprietary information of a highly sensitive nature, and that the
protection of this information is critical to Belo and Belo’s other subsidiaries and affiliates
(collectively, the “Companies”). This information includes, but is not strictly limited to: (1)
all trade secrets as defined by the [applicable state law], as amended, including, but not limited
to, current and future Belo business strategies, opportunities, deals and partnerships/alliances
under consideration; strategies on staffing levels and personnel assignments; current or
contemplated promotional, branding and marketing strategies; economic, business and market
conditions as currently envisioned and discussed by Belo and Belo management; zoning strategies;
and current and projected financial considerations (collectively, “Trade Secrets”); (2) all
information that has or could have commercial value or other utility in the business in which Belo
is engaged or contemplates engaging, and (3) all information of which the unauthorized disclosure
could be detrimental to the interests of Belo, whether or not such information is identified as
confidential information by Belo (subgroups (2) and (3) collectively, “Confidential and Proprietary
Information”). Without limitation, examples of Confidential and Proprietary Information include:
(1) the sales and billing account records of Belo’s advertisers or sponsors; (2) the names,
addresses, and telephone numbers of Belo’s past, current or prospective advertisers, sponsors,
personnel,



4









 






representatives or suppliers; (3) all advertiser or sponsor lists and lead lists, whether made
by Employee, Belo, or anyone else; (4) all written or verbal correspondence by or with Belo’s past,
present or prospective advertisers, sponsors, personnel, representatives or suppliers; (5) this
Agreement, other agreements, and leases, (6) all documents, records, programs, creative products,
concepts, treatments, productions, formats, plans, designs, strategies, trade secrets, technology,
marketing and promotion, distribution, operations, finances, projections, and other information
regarding Belo’s business or its opportunities; and (7) all other information concerning Belo that
is not generally known to the public. Trade Secrets and Confidential and Proprietary information
can appear in any form, such as writings, documents, email, verbal statements, computer disks or
tapes, audio or video tapes, photographs, microfiches, or any other form of communication, media or
storage. Employee agrees that he shall not disclose any of the Confidential and Proprietary
Information, for doing so could interfere with Belo’s prospective economic relations or contractual
relations. Employee further agrees never to disclose or use Belo’s Trade Secrets. Employee hereby
certifies that he has returned or will return by                      (without retaining copies) all
files, records or information of any sort with respect to such Trade Secrets, confidential dealings
or other Confidential or Proprietary information concerning the Companies, as well as any other
property of the Companies he has in his possession, and that he shall not use or disclose them at
any time, during or after his employment, to any third party. This obligation is continuing, and
Employee agrees to immediately return any property of the Companies that comes into his possession
after the Separation Date.




5









 








          (b) Non-Solicitation; Non-Compete. Employee agrees that, for one year following the
Separation Date, Employee shall not, directly or indirectly, for his own account or for the benefit
of any other party, solicit, induce, or entice any employee or subcontractor of Belo to terminate
his/her employment or contract with Belo. Employee further agrees that for one year following the
Separation Date, Employee shall not, as principal, partner, officer, director, agent, employee or
consultant, or in any other capacity, engage in, assist, or advise, in any manner similar to or
consistent with his job and duties at Belo, any person, firm or entity which competes with Belo in
[geographic area].




          (c) Cooperation and Assistance. During the two (2) year period following the
Separation Date, Employee agrees that he will voluntarily comply with the Companies’ reasonable
requests for his assistance with or attendance at meetings, depositions, court hearings, trials, or
other events relating to or in connection with any legal proceedings to which Belo or the Companies
are a party; provided that Employee shall be entitled to reimbursement for reasonable and properly
documented travel and related expenses incurred by Employee directly as a result of his attendance
of such events. Notwithstanding the foregoing, Employee shall not be paid for any time spent
giving testimony, whether it be as a deponent, trial witness, or otherwise. Employee also agrees
that he shall in no way interfere with the ongoing business operations of Belo, at any time.




          (d) Legal Proceedings. Employee represents that he has not, at any time up to and
including the date on which he signs this Agreement, commenced any action or proceeding, or filed
any complaints, of any nature arising out of the matters released by



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and in paragraph 5, and that he waives any right to any financial or equitable relief in any
proceeding that may relate to the matters released by paragraph 5. Nothing in this Agreement
precludes Employee from participating in any investigation or proceeding conducted by any state or
federal agency, provided that Employee agrees to waive any financial or equitable relief available
to him with respect to such proceeding.




     Section 4. Non-Exclusive Remedies. Employee recognizes and acknowledges that Belo
would suffer irreparable harm and substantial loss if he violated any of the terms and provisions
of Section 3. Accordingly, and because of the fact that the actual damages which might be
sustained by the Companies as a result of any breach of the foregoing Section 3 would be difficult,
if not impossible, to ascertain, Employee agrees, at the election of the Companies and in addition
to, and not in lieu of, the Companies’ right to seek all other remedies and damages which the
Companies may have at law or in equity for such breach, that the Companies shall be entitled to
injunctive relief restraining Employee from violating such terms and provisions of this Agreement.
It is the express intention of the parties to this Agreement to comply with all laws that may be
applicable to this Agreement. Should any restriction contained in Section 3 be found to exceed in
duration or scope the restriction permitted by law, it is expressly agreed that this Agreement may
be reformed or modified by the final judgment of a court of competent jurisdiction to reflect the
maximum lawful duration or scope.



     Additionally, in the event that Employee breaches any of the material terms and provisions
contained in this Agreement, including but not limited to all the terms contained in Section 3
hereunder (which are hereby agreed to be material to the parties), unless otherwise prohibited by
law, Employee shall repay to Belo $                     previously



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paid to Employee under this Agreement. The parties intend this amount as a reasonable forecast of
only some of the damages that would result from Employee’s breach, and not as a penalty.
Employee’s repayment obligation shall not preclude Belo’s exercise of any other right or remedy
available to it at law or in equity, including the right to obtain a preliminary and permanent
injunction.



     Section 5. Release. Employee, in consideration of the payments to be made by Belo
and the provision of the other benefits hereunder, hereby irrevocably and unconditionally releases
and forever discharges all of the Companies and their past and present officers, trustees,
directors, agents, employees, representatives, attorneys, successors and assigns (collectively, the
“Releasees”), from any and all suits, actions, charges, causes of action, rights, damages, debts,
demands, claims or liabilities of any kind, whatsoever, known or unknown (collectively referred to
herein as “Claims”), which he has or may have against any or all of the Releasees, for any alleged
acts, practices or events occurring prior to the date of execution of this Agreement, or any
alleged continuing effects of such acts, practices or events, or any other factors or conditions
relating to or arising out of Employee’s employment with Belo, as well as the separation of his
employment with Belo. This release expressly includes, but is in no way limited to, Claims arising
under federal, state, or local laws prohibiting employment discrimination, harassment, or
retaliation, such as, without limitation, Title VII of the Civil Rights Act of 1964, the Americans
with Disabilities Act, the Equal Pay Act, the Age Discrimination in Employment Act, all laws of the
[state] governing employment, the [applicable state law], and the Family and Medical Leave Act;
Claims for breach of contract (excluding breach of this Agreement by Belo), quasi-contract, or
wrongful or



8









 







constructive discharge; Claims for personal injury, harm, or damages (whether intentional or
unintentional), including, but not limited to, libel, slander, assault, battery, invasion of
privacy, negligent or intentional infliction of emotional distress, or interference with business
opportunity or with contracts; Claims arising out of any legal restrictions on Belo’s right to
terminate its employees; Claims arising under the Employee Retirement Income Security Act; and
Claims for salary, vacation pay, sick pay, bonus, severance pay, future pay, compensation of any
kind, retirement, health insurance, long-term disability, AD&D, life insurance, or any other
employee benefit; provided, however, that no release or discharge is hereby made with respect to
the rights and obligations of the Releasees and Employee under this Agreement. Employee also
specifically releases the Releasees from any claims for attorneys’ fees, costs and expenses
incurred in connection with this Agreement or any matter herein released.



     Employee further declares and represents that he has carefully read and fully understands the
terms of this Separation Agreement and Release, that he has been advised and has had the
opportunity to seek the advice and assistance of counsel with regard to this Separation Agreement
and Release, that he has had more than [21 or 45] days from receipt of this Separation Agreement
and Release to consider whether to sign this Separation Agreement and Release, that he may revoke
this Separation Agreement and Release within seven calendar days after signing it by delivering to
Belo written notification of revocation, and that he knowingly and voluntarily, of his own free
will, without any duress, being fully informed and after due deliberate action, accepts the terms
of and signs the same as his own free act.



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     Section 6. Miscellaneous. This Agreement represents the entire understanding and
agreement between the parties with respect to the subject matter hereof and supersedes all prior
agreements, written or oral, with respect thereto. This Agreement shall be construed in accordance
with and governed by the laws of the State of Texas. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties and their respective heirs, executors,
administrators, successors and permitted assigns. Employee shall not encumber or dispose of the
right to receive any payment or benefit under this Agreement, such rights hereunder being expressly
agreed to be non-assignable and non-transferable and, in the event of any attempted assignments or
transfer, the Companies shall have no further liability hereunder. No waiver, alteration or
modification of any of the provisions of this Agreement shall be valid unless the same shall be in
writing and signed by the parties hereto. If either party to this Agreement brings any litigation
regarding the rights and obligations of the parties under this Agreement, the prevailing party in
such litigation shall be entitled to reimbursement by the other party of reasonable attorneys’ fees
and costs incurred by the prevailing party in connection with the defense or pursuit of such
litigation.



     Section 7. Severability. If any section, paragraph or provision of this Agreement is
found by a court of competent jurisdiction to be null and void or otherwise unenforceable, it shall
not affect the enforceability of any other clause or section of this Agreement.



     Section 8. Taxes. Employee agrees that Belo is obligated to deduct and withhold
certain amounts for taxes and other amounts required by law from the total amounts payable by Belo
to Employee under this Agreement.



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     Section 9. Further Assurances. From time to time after the execution of this
Agreement, each of Belo and Employee will execute and deliver such other documents and take such
other actions as the other party to this Agreement reasonably may request in order to effect the
transactions contemplated hereby.



     IN WITNESS WHEREOF, the parties have executed this Agreement and initialed all pages prior to
this signature page, as of the date set forth above.



	 	 	 	 	 	 	 	 	 
	Employee	 	 	 	Belo Corp.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	[Employee name]

	 	 	 	[Name]	 	 	 	 
	Date:

	 	 	 	[Title]	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 







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