Document:

EX-10.2

 

Exhibit 10.2

TAX ALLOCATION AGREEMENT

by and between

THE E. W. SCRIPPS COMPANY

and

SCRIPPS NETWORKS INTERACTIVE, INC.

Dated as of                    , 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I

	DEFINITIONS AND STANDARDS

	SECTION 1.01. Definitions
	 	 	2	 
	SECTION 1.02. General Interpretive Principles
	 	 	11	 
	SECTION 1.03. Applicable Standards
	 	 	11	 
	ARTICLE II

	U.S. CONSOLIDATED FEDERAL INCOME TAX LIABILITIES

	SECTION 2.01. Affiliation Years
	 	 	12	 
	SECTION 2.02. 2008 Taxable Year
	 	 	12	 
	SECTION 2.03. U.S. Federal Alternative Minimum Tax
	 	 	14	 
	ARTICLE III

	U.S. COMBINED STATE AND LOCAL INCOME TAX LIABILITIES

	SECTION 3.01. Returns Covered
	 	 	14	 
	SECTION 3.02. Pre-2008 Taxable Year
	 	 	14	 
	SECTION 3.03. Operating Losses
	 	 	15	 
	SECTION 3.04. 2008 Taxable Year
	 	 	15	 
	SECTION 3.05. Short- Year State and Local Returns
	 	 	15	 
	SECTION 3.06. Estimated Taxes, Etc
	 	 	15	 
	SECTION 3.07. Adjustments
	 	 	16	 
	ARTICLE IV

	SEPARATE TAX RETURN OBLIGATIONS

	SECTION 4.01. SNI Tax Liability
	 	 	16	 
	SECTION 4.02. EWS Tax Liability
	 	 	16	 
	SECTION 4.03. Separate Return Adjustments
	 	 	16	 
	ARTICLE V

	TAX-FREE STATUS OF DISTRIBUTION

	SECTION 5.01. Tax-Free Status Ruling, Etc
	 	 	16	 
	SECTION 5.02. Maintaining Status of Active Business
	 	 	17	 
	SECTION 5.03. Limits on Proposed Acquisition Transactions
	 	 	17	 
	SECTION 5.04. Indemnity
	 	 	19	 
	ARTICLE VI

	CARRYOVER AND CARRYBACK ITEMS

	SECTION 6.01. Carryovers to Post-Affiliation Years
	 	 	20	 
	SECTION 6.02. Carrybacks from Post-Affiliation Years
	 	 	20	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VII

	U.S. FEDERAL INCOME TAX ADJUSTMENTS

	SECTION 7.01. Determination
	 	 	21	 
	SECTION 7.02. Payments
	 	 	21	 
	SECTION 7.03. Procedures
	 	 	22	 
	SECTION 7.04. Intercompany Adjustments
	 	 	22	 
	ARTICLE VIII

	INCOME TAX PROCEEDINGS

	SECTION 8.01. Notice
	 	 	22	 
	SECTION 8.02. SNI and EWS Issues
	 	 	22	 
	SECTION 8.03. Procedures
	 	 	23	 
	SECTION 8.04. Forum for Judicial Proceedings
	 	 	24	 
	ARTICLE IX

	PAYMENTS

	SECTION 9.01. Reporting of Indemnity Payments. Etc
	 	 	24	 
	SECTION
9.02. Interest on Late Payments
	 	 	24	 
	SECTION 9.03. Dispute
	 	 	24	 
	ARTICLE X

	TAX RETURNS

	SECTION 10.01. Cooperation and Furnishing of Tax Return Information
	 	 	25	 
	SECTION
10.02. Preparation of Tax Returns
	 	 	26	 
	ARTICLE XI

	POST AFFILIATION YEARS AND POST COMBINED YEARS

	SECTION 11.01. Returns
	 	 	26	 
	SECTION 11.02. Actions or Transactions
	 	 	27	 
	SECTION 11.03. Proposed Adjustments
	 	 	27	 
	ARTICLE XII

	BOOKS AND RECORDS

	SECTION 12.01. Retention Period
	 	 	27	 
	SECTION 12.02. Record Retention Policy
	 	 	27	 
	SECTION 12.03. Tax Attributes
	 	 	27	 
	SECTION 12.04. Apportionment of Earnings and Profits and Tax Attributes
	 	 	28	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE XIII

	COMPENSATION AND EMPLOYEE BENEFITS

	SECTION 13.01. General
	 	 	28	 
	SECTION 13.02. Stock-Based Awards
	 	 	28	 
	SECTION 13.03. Reporting of Deductions
	 	 	28	 
	SECTION 13.04. Employment Taxes and Tax Reporting
	 	 	29	 
	ARTICLE XIV

	MISCELLANEOUS

	SECTION 14.01. Notices
	 	 	29	 
	SECTION 14.02. Complete Agreement; Representations
	 	 	30	 
	SECTION 14.03. Amendment, Modification, or Waiver
	 	 	30	 
	SECTION
14.04. Severability
	 	 	31	 
	SECTION 14.05. No Double Recovery
	 	 	31	 
	SECTION
14.06. Costs and Expenses
	 	 	31	 
	SECTION 14.07. No Assignment; Binding Effect; No Third-Party Beneficiaries
	 	 	31	 
	SECTION
14.08. Headings
	 	 	31	 
	SECTION 14.09. Counterparts
	 	 	32	 
	SECTION 14.10. Governing Law
	 	 	32	 
	SECTION 14.1l. Disputes
	 	 	32	 

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TAX ALLOCATION AGREEMENT

     THIS
TAX ALLOCATION AGREEMENT (this “Agreement”) is dated as of
the                    
day of                     , 2008, by and between The E. W. Scripps Company, an Ohio corporation
(“EWS”), and Scripps Networks Interactive, Inc. (“SNI”), an Ohio corporation and an indirect
subsidiary of EWS (together with EWS, each a “Party” and collectively, the “Parties”).
Capitalized terms used in this Agreement are defined as set forth in Section 1.01.

     WHEREAS, the Board of Directors of EWS has determined that it is in the best interests of EWS to
separate the SNI Business and the EWS Business into two independent public companies, (the
“Separation”), on the terms and subject to the conditions set forth in the Separation Agreement,
in order to separate businesses with differing strategic directions, eliminate existing
constraints regarding capital allocation, concentrate management focus, allow more tailored
management incentives, and accommodate differing shareholder bases;

     WHEREAS, in order to effectuate the foregoing, EWS and SNI have entered into a Separation and
Distribution Agreement, dated as
of                    
, 2008 (the “Separation Agreement”), pursuant to
which and subject to the terms and conditions set forth therein, the SNI Business shall be
separated from the EWS Business and pursuant to the Distribution, the SNI Class A Common Shares
and SNI Common Voting Shares shall be distributed on a pro rata basis to the holders of EWS
Class A Common Shares and EWS Common Voting Shares;

     WHEREAS, for U.S. federal income Tax purposes, through the Distribution Date, income of certain
present and former members of the SNI Group has been or will be included in EWS Consolidated
Returns;

     WHEREAS, certain SNI Combined Group members have filed or will file Combined Returns covering
U.S. state and local income Taxes with EWS Combined Groups as part of their respective Total
Combined Groups;

     WHEREAS, SNI and other members of the SNI Group will cease to be members of the EWS Group for
U.S. federal income Tax purposes after the Distribution Date, and SNI and other members of SNI
Combined Groups will cease to be members of their respective Total Combined Groups for U.S.
state and local income Tax purposes after the Distribution Date;

     WHEREAS, the failure of the Distribution to have a Tax-Free Status or certain actions taken with
respect to SNI Capital Stock and EWS Capital Stock could subject EWS, SNI and their shareholders
to additional Tax costs in connection with the Distribution; and

     WHEREAS, EWS and SNI desire in this Agreement to (i) set forth Tax allocation principles for
Affiliation Years for U.S. federal income Tax purposes and Combined Years for U.S. state and
local income Tax purposes, which, except to the extent provided herein, will supersede all prior
policies and procedures governing the allocation of Taxes, (ii) define the effects upon the
settlement and allocation of certain Tax liabilities and Tax benefits of transactions or
developments that occur during taxable years commencing after the Distribution Date, (iii) set
forth the responsibility for their respective stand-alone income and other Tax liabilities, and
(iv) allocate liability for certain Tax costs that may be incurred in connection with the
Distribution.

     NOW, THEREFORE, in consideration of the foregoing, the promises and covenants set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, EWS and SNI hereby agree as follows:

 

 

ARTICLE I

DEFINITIONS AND STANDARDS

     SECTION 1.01. Definitions. For all purposes of this Agreement, the following terms shall
have the following meanings:

     “2007 Excess EWS Group Benefits” shall have the meaning assigned to it in Section 2.01.

     “2007 Excess SNI Group Benefits” shall have the meaning assigned to it in Section 2.01.

     “2007 Tax Liability” shall have the meaning assigned to it in Section 2.01

     “2007 Taxable Year” shall have the meaning assigned to it in Section 2.01.

     “2008 Excess EWS Group Benefits” shall have the meaning assigned to it in Section 2.02.

     “2008 Excess SNI Group Benefits” shall have the meaning assigned to it in Section 2.02.

     “2008 Tax Liability” shall have the meaning assigned to it in Section 2.02.

     “2008 Taxable Year” shall have the meaning assigned to it in Section 2.02.

     “Adjusted Separate EWS Group Federal Tax Liability” shall mean with respect to any
Affiliation Year(s) the U.S. federal income Tax liability of the EWS Group applying the Highest
Federal Tax Rate, computed as if the EWS Group (with EWS as the common parent) filed an EWS
Consolidated Return separately from the SNI Group, and applying such U.S. Tax laws and
regulations as would have been applicable to the EWS Group if it had so filed separately, but
not taking into account any items that are predicated on base amounts determined on a
consolidated basis such as research Credits, subject to the following:

          (i) the EWS Group shall be treated as bound by all accounting methods, elections and other
determinations adopted or made by EWS for the EWS Group for all Affiliation Years, including,
but not limited to, determinations made in respect of carrybacks and carryovers;

          (ii) the EWS Group shall be permitted to reduce its Adjusted Separate EWS Group Federal Tax
Liability (but not below zero) to the extent that the EWS Group is able to reduce its U.S.
federal income Tax liability in the EWS Consolidated Return for such Affiliation Year by
utilizing items of deduction, loss, or Credit of the EWS Group which the Parties determine the
EWS Group would have been unable to utilize if it had filed an EWS Consolidated Return
separately from the SNI Group (“Excess Items”); provided, that if there are any
limitations in the ability of the EWS Group to utilize items in the same category as such Excess
Items in their entirety for such year, the EWS Group shall be limited in the reduction of its
Adjusted Separate EWS Group Federal Tax Liability to its share of such Excess Items on a
Proportionate Basis; provided, further, that if, pursuant to the above
provisions, an Excess Item is not usable, in whole or in part, by the SNI Group in one
Affiliation Year, it may, pursuant to Section 7.03 hereof, be carried over or carried back as an
Excess Item to any other Affiliation Year subject to the same limitations as above; and

          (iii) the EWS Group shall take into account the items of EWS Group income, gain, loss, deduction
or Credit attributable to intercompany items, excess loss accounts, dual consolidated losses and
other items that are required to be restored, recaptured or otherwise triggered as a result of
the Distribution or related transactions.

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     “Adjusted Separate SNI Group Federal Tax Liability” shall mean with respect to any
Affiliation Year(s) the U.S. federal income Tax liability of the SNI Group applying the Highest
Federal Tax Rate, computed as if the SNI Group (with SNI as the common parent) filed a
consolidated U.S. federal income Tax Return separately from the EWS Group (“SNI Consolidated
Return”), and applying such U.S. Tax laws and regulations as would have been applicable to
the SNI Group if it had so filed separately, but not taking into account any items that are
predicated on base amounts determined on a consolidated basis such as research Credits, subject
to the following:

          (i) the SNI Group shall be treated as bound by all accounting methods, elections and other
determinations adopted or made by EWS for the EWS Group for all Affiliation Years, including,
but not limited to, determinations made in respect of carrybacks and carryovers;

          (ii) the SNI Group shall be permitted to reduce its Adjusted Separate SNI Group Federal Tax
Liability (but not below zero) to the extent that the EWS Group is able to reduce its U.S.
federal income Tax liability in the EWS Consolidated Return for such Affiliation Year by
utilizing items of deduction, loss, or Credit of the SNI Group which the Parties determine the
SNI Group would have been unable to utilize if it had filed an SNI Consolidated Return
(“Excess Items”); provided, that if there are any limitations in the ability of
the EWS Group to utilize items in the same category as such Excess Items in their entirety for
such year, the SNI Group shall be limited in the reduction of its Adjusted Separate SNI Group
Federal Tax Liability to its share of such Excess Items on a Proportionate Basis;
provided, further, that if, pursuant to the above provisions, an Excess Item is
not usable, in whole or in part, by the EWS Group in one Affiliation Year, it may, pursuant to
Section 7.03 hereof, be carried over or carried back as an Excess Item to any other Affiliation
Year subject to the same limitations as above; and

          (iii) the SNI Group shall take into account the items of SNI Group income, gain, loss, deduction
or Credit attributable to intercompany items, excess loss accounts, dual consolidated losses and
other items that are required to be restored, recaptured or otherwise triggered as a result of
the Distribution or related transactions.

     “Adjustment” shall mean, with respect to any Affiliation Year, any change in actual Tax
liability from the Tax liability reported on an EWS Consolidated Return, including changes
attributable to amended Tax Returns, deficiencies asserted by a Taxing authority, overpayments,
and claims for refund, and changes required by application of the Code and Treasury Regulations
and Taxing authority audits, examinations, proceedings or litigation resulting from any of the
foregoing events (collectively, “Adjustment Events”). Adjustment shall mean with respect
of any Combined Year in which an SNI Combined Group files a Combined Return with a EWS Combined
Group as part of a Total Combined Group, any change in the actual Tax liability of the
applicable Total Combined Group, including changes attributable to Adjustment Events.

     “Adjustment Events” shall have the definition of “Adjustment.”

     “Affiliate” shall mean any entity that is directly or indirectly controlled by the
person in question; provided, however, that for purposes of this Agreement, as
of the Effective Time no member of either Group shall be deemed to be an Affiliate of any member
of the other Group. For this purpose, “control” shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and the policies of
a person, whether through ownership of voting securities, by contract or otherwise.

- 3 -

 

     “Affiliation Year” shall mean each taxable year, or portion thereof, with respect to
which any member of the SNI Group joined or will join the EWS Group in the filing of an EWS
Consolidated Return.

     “AMT” shall have the meaning assigned to it in Section 2.03.

     “Article VIII Taxes” shall have the meaning assigned to it in Section 8.03.

     “Code” shall mean the Internal Revenue Code of 1986, as amended. Any references herein
to sections of the Code or Treasury Regulations promulgated thereunder shall include any
successor provisions thereto.

     “Combined Return” shall mean a combined, consolidated, or unitary U.S. state or local
income, franchise, business activities or gross receipts Tax Return.

     “Combined State” shall mean a U.S. state or locality requiring or permitting the filing
of a Combined Return.

     “Combined State Total Tax Liability” shall have the meaning assigned to it in Section
3.02.

     “Combined Year” shall mean a taxable year (or portion thereof) in which an EWS Combined
Group files a Combined Return with an SNI Combined Group.

     “CPMCO” shall mean Cable Program Management Co., G.P.

     “Credits” shall mean all of the credits against U.S. federal income Tax or, as
applicable, against U.S. state or local Tax. Credits shall include, but not be limited to,
foreign Tax credits, research credits, low-income housing credits, investment Tax credits and
targeted job credits.

     “Distribution” shall mean the distribution on a pro rata basis to holders of issued and
outstanding EWS Class A Common Shares and EWS Common Voting Shares, of all of the issued and
outstanding SNI Class A Common Shares and SNI Voting Common Shares (“SNI Common Shares”),
beneficially owned by EWS, by means of a dividend of such SNI Class A Common Shares and SNI
Voting Common Shares to such shareholders.

     “Distribution Date” shall mean the date on which the Distribution shall be effected,
such date to be determined by, or under the authority of, the Board of Directors of EWS in its
sole and absolute discretion.

     “Distribution Taxes” means (i) any Taxes imposed on, or increase in Taxes incurred by,
EWS or any EWS Affiliate, and any Taxes of an EWS shareholder (or former EWS shareholder) that
are required to be paid or reimbursed by EWS or any EWS Affiliate pursuant to a Final
Determination; (ii) all professional fees and court costs incurred in connection with such
Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or
controversies, including but not limited to, any amount paid by EWS, any EWS Affiliate, SNI, or
any SNI Affiliate, as the case may be, in respect of the liability of shareholders, whether paid
to shareholders, the IRS, any other Taxing authority, or any other person or entity, in each
case, arising from the Distribution and related transactions failing to have Tax-Free Status in
any manner, provided that EWS shall have vigorously defended itself in any legal proceeding
involving Taxes of an EWS shareholder, without regard to whether such Taxes are offset or
reduced by any Tax Asset, Tax Item, or otherwise resulting from, or arising in connection with,
the failure of the Internal Distribution or the Distribution to qualify as transactions in which
no income, gain or loss is recognized

- 4 -

 

pursuant to sections 355 and 368(a)(l)(D) of the Code (including any Tax resulting from the
application of section 355(d) or section 355(e) of the Code to the Internal Distribution or the
Distribution) or corresponding provisions of the laws of any other jurisdictions. Any income Tax
referred to in the immediately preceding sentence shall be determined using the highest
applicable statutory corporate income Tax rate (or rates, in the case of an item that affects
more than one Tax) for the relevant taxable period (or portion thereof) taking into account
deductions for interest paid or accrued and other related Taxes, such as state and local Taxes.

     “Effective Time” shall mean the time at which the Distribution occurs on the
Distribution Date.

     “Employee Matters Agreement” shall mean the Employee Matters Agreement of even date
herewith by and between EWS and SNI.

     “Estimated State Taxes” shall have the meaning assigned to it in Section 3.06.

     “EWS Additional Excess Items” shall have the meaning assigned to it in the definition of
“Excess EWS Group Benefits.”

     “EWS Affiliate” shall mean an Affiliate of EWS other than SNI and SNI Affiliates.

     “EWS AMT Liability” shall have the meaning assigned to it in Section 2.03.

     “EWS Business” means all businesses and operations of the EWS Group, other than the SNI
Business.

     “EWS Capital Stock” shall mean all classes or series of stock of EWS and all options,
warrants, derivatives, rights to acquire stock, and other interests and instruments taken into
account for purposes of determining a Fifty-Percent or Greater Interest in EWS.

     “EWS Class A Common Shares” means the Class A Common Shares, par value $0.01 per share,
of EWS.

     “EWS Combined Group” shall mean an affiliated group of corporations (as constituted from
time to time) owned directly or indirectly by EWS that EWS determines will join in filing a
Combined Return excluding members of an SNI Combined Group.

     “EWS Common Voting Shares” means the Common Voting Shares, par value $0.01 per share, of
EWS.

     “EWS Consolidated Return” shall mean a consolidated U.S. federal income Tax Return filed
by EWS on behalf of the EWS Group.

     “EWS Director” shall have the meaning assigned to it in the Employee Matters Agreement.

     “EWS Group” shall mean the affiliated group of corporations (as constituted from time to
time), of which EWS is the common parent, which EWS determines will join in filing a EWS
Consolidated Return.

     “EWS Group State Tax Liability” shall have the meaning assigned to it in Section
3.02. 

     “EWS Issues” shall have the meaning assigned to it in Section 8.02.

- 5 -

 

     “EWS Participant” shall have the meaning assigned to it in the Employee Matters
Agreement.

     “Excess EWS Group Benefits” shall mean the amount by which the Parties agree that EWS
was able to reduce its U.S. federal income Tax liability in the EWS Consolidated Return for an
Affiliation Year by use of Excess Items which would reduce the Adjusted Separate SNI Group
Federal Tax Liability for such year, if zero, below zero
(“EWS Additional Excess Items”). Use of
EWS Additional Excess Items shall otherwise be subject to the same limitations and other
provisions applicable to the use of Excess Items, as determined by the Parties in good faith.

     “Excess Items” shall have the meaning assigned to it in the definition of “Adjusted Separate SNI
Group Federal Tax Liability.”

     “Excess SNI Group Benefits” shall mean the amount by which the Parties agree that SNI
was able to reduce its U.S. federal income Tax liability in the EWS Consolidated Return for an
Affiliation Year by use of Excess Items which would reduce the Adjusted Separate EWS Group
Federal Tax Liability for such year, if zero, below zero “SNI
Additional Excess Items”). Use of
SNI Additional Excess Items shall otherwise be subject to the same limitations and other
provisions applicable to the use of Excess Items, as determined by the Parties in good faith.

     “Fifty-Percent or Greater Interest” shall mean a “50-percent or greater interest” for
purposes of Sections 355(d) and (e) of the Code and the Treasury Regulations promulgated
thereunder.

     “Final Determination” shall mean the final resolution of liability for any Tax for any
taxable period, by or as a result of (i) a final and unappealable decision, judgment, decree or
other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a
closing agreement or accepted offer in compromise under section 7121 or section 7122 of the
Code, or a comparable agreement under the laws of other jurisdictions, which resolves the entire
Tax liability for any taxable period; (iii) any allowance of a refund or credit in respect of an
overpayment of Tax, but only after the expiration of all periods during which such refund may be
recovered by the jurisdiction imposing the Tax; or (iv) any other final disposition, including
by reason of the expiration of the applicable statute of limitations.

     “Foreign Attribute” shall mean any item of income, gain, loss or deduction or any asset
or liability relevant to the computation of taxable income from sources without the United
States and any item of Credit described in Section 901 or 902 of the Code (without regard to the
limitation of Section 904 of the Code).

     “Fraction” shall have the meaning assigned to it in Section 2.03(a).

     “Highest Combined Tax Rate” for the taxable year in question shall mean the sum of (i)
the Highest Federal Tax Rate, and (ii) in the case of a corporation, the average, weighted by
jurisdiction, of the highest U.S. state and local income, franchise, and gross receipts Tax
rates that would be applicable to such a corporation (net of any U.S. federal income Tax
benefit), or in the case of a Person other than a corporation, the highest U.S. state and local
income Tax rates (net of any U.S. federal income Tax benefit) that would be applicable to such
Person or the beneficial owner(s) of such Person.

     “Highest Federal Tax Rate” for the taxable year in question shall mean (i) in the case
of a corporation, the highest U.S. federal income Tax rate applicable to a corporation, or (ii)
in the case of a Person other than a corporation, the highest U.S. federal income Tax rate that
would be applicable to such Person or the beneficial owner(s) of such Person.

- 6 -

 

     “Income Tax Benefit” shall mean the amount of the Tax savings realized by the applicable
group, as determined by the Parties. Such amount shall be determined by comparing (i) the actual
U.S. federal income Tax liability and the corresponding U.S. state and local income Tax
liability (net of any federal Tax benefit) of the applicable group for the taxable year in
question without giving effect to the items in question with (ii) the actual U.S. federal income
Tax liability and the corresponding U.S. state and local Tax liability (net of any federal Tax
benefit) of the applicable group for such year after giving full effect to such items. An Income
Tax Benefit shall be deemed to be realized at the time that the applicable group receives a
refund or credit for refund from the relevant Taxing authority.

     “Income Tax Detriment” shall mean the amount of additional Tax incurred by the
applicable group, as determined by the Parties. Such amount shall be determined by comparing (i)
the actual U.S. federal income Tax and the corresponding U.S. state and local Tax liability (net
of any U.S. federal income Tax benefit) of the applicable group for the taxable year in question
after giving full effect to the items in question with (ii) the actual U.S. federal income Tax
and the corresponding U.S. state and local Tax liability (net of any U.S. federal income Tax
benefit) of the applicable group without giving effect to such items. Unless otherwise provided
herein, an Income Tax Detriment shall be deemed to be incurred at such time as payment is made
to the relevant Taxing authority upon a Final Determination of items
in questions. In computing
the Tax liability of the EWS Group for purposes of clause (i) of the second sentence of this
definition or clause (ii) of the second sentence of the definition of “Income Tax Benefit”
above, increases or decreases in the U.S. federal, state or local income Tax liability of the
EWS Group attributable to the effect on EWS’ (or any EWS subsidiary’s) basis in the stock of any
member of the SNI Group will not be taken into account.

     “Internal Distribution” shall mean the distribution by Scripps Howard Broadcasting
Company of all of the common stock of SNI to EWS.

     “IRS” shall mean the U.S. Internal Revenue Service.

     “Joint EWS/SNI Director” shall have the meaning assigned to it in the Employee Matters
Agreement.

     “Minimum Tax Credit” shall have the meaning assigned to it in Section 2.03.

     “Newspaper Business and EWS Businesses” shall mean the business of EWS so designated, as
described in the Ruling Request.

     “NOLs” shall have the meaning assigned to it in Section 3.03.

     “Options” shall have the meaning assigned to it in the Employee Matters Agreement.

     “Person” shall mean an individual or a partnership, corporation, limited liability
company, association, joint stock company, trust, joint venture, unincorporated organization, or
other entity, without regard to whether such entity is treated as disregarded for U.S. federal
income Tax purposes.

     “Post-Affiliation Year” shall mean a taxable period after the Distribution Date during
which SNI and its subsidiaries do not join the EWS Group in the filing of a EWS Consolidated
Return.

     “Post-Combined Year” shall mean a taxable period after the Distribution Date during
which SNI and its subsidiaries do not join a Total Combined Group in the filing of a Combined
Return with an EWS Combined Group.

- 7 -

 

     “Proportionate Basis” shall mean, with respect to an item or items attributable to a
particular member or members of the SNI Group, the determination of the portion of such items
based on the total value of such items over the total value of all items in the same category
for the entire EWS Group for the same Affiliation Year of the EWS Group, subject to any
appropriate Adjustments thereto, as determined by the Parties.

     “Proposed EWS Group Acquisition Transaction” shall mean a transaction or series of
transactions (or any agreement, understanding or arrangement, within the meaning of Section
355(e) of the Code and the Treasury Regulations promulgated thereunder, to enter into a
transaction or series of transactions), as a result of which EWS would merge or consolidate with
any other Person or as a result of which any Person or any group of Persons would (directly or
indirectly) acquire, or have the right to acquire through the acquisition of an option or
otherwise, from EWS and/or one or more holders of EWS Capital Stock, an amount of EWS Capital
Stock that would, when combined with any other changes in ownership of EWS Capital Stock
pertinent for purposes of Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder including any redemption or repurchase (directly by the Company or through an EWS
Affiliate) of any EWS Capital Stock, or rights to acquire such stock and any transfer, sale, or
disposition of EWS Capital Stock owned by the E.W. Scripps Trust other than to its beneficiaries
upon termination of the E.W. Scripps Trust, comprise 40% or more of (A) the value of all
outstanding EWS Capital Stock as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the total combined voting
power of all outstanding EWS Capital Stock as of the date of such transaction, or in the case of
a series of transactions, the date of the last transaction of such series. For purposes of
determining whether a transaction constitutes an indirect acquisition for purposes of the first
sentence of this definition, any recapitalization resulting in a shift of voting power or any
redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by
the non-exchanging shareholders. This definition and the application thereof are intended to
monitor compliance with Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder.

     “Proposed SNI Acquisition Transaction” shall mean a transaction or series of
transactions (or any agreement, understanding or arrangement, within the meaning of Section
355(e) of the Code and the Treasury Regulations promulgated thereunder, to enter into a
transaction or series of transactions), as a result of which SNI would merge or consolidate with
any other Person or as a result of which any Person or any group of Persons would (directly or
indirectly) acquire, or have the right to acquire through the acquisition of an option or
otherwise, from SNI and/or one or more holders of SNI Capital Stock, an amount of SNI Capital
Stock that would, when combined with any other changes in ownership of SNI Capital Stock
pertinent for purposes of Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder including any redemption or repurchase (directly by SNI or through an SNI Affiliate)
of any SNI Capital Stock, or rights to acquire such stock and any transfer, sale or disposition
of SNI Capital Stock owned by the E.W. Scripps Trust other than to its beneficiaries upon
termination of the E.W. Scripps Trust, comprise 40% or more of (A) the value of all outstanding
SNI Capital Stock as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the total combined voting
power of all outstanding SNI Capital Stock as of the date of such transaction, or in the case of
a series of transactions, the date of the last transaction of such series. For purposes of
determining whether a transaction constitutes an indirect acquisition for purposes of the first
sentence of this definition, any recapitalization resulting in a shift of voting power or any
redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by
the non-exchanging shareholders. This definition and the application thereof are intended to
monitor compliance with Section 355(e) of the Code and the Treasury Regulations promulgated
thereunder.

     “RAR” shall have the meaning assigned to it in Section 8.03.

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     “Representation Letters” shall have the meaning assigned to it in Section 5.01.

     “Restricted Shares” shall have the meaning assigned to it in the Employee Matters
Agreement.

     “Restricted Share Units” shall have the meaning assigned to it in the Employee Matters
Agreement.

     “Ruling” shall mean (a) the private letter ruling (and any supplemental private letter
ruling) issued by the IRS to EWS in connection with the separation and distribution and (b) any
similar ruling (including any supplemental ruling) issued by any Taxing authority other than the
IRS in connection with the Separation and Distribution.

     “Ruling Documents” means the Ruling and the Ruling Request.

     “Ruling Request” means any letter filed by EWS with the IRS or any other Taxing
authority requesting a ruling regarding certain tax consequences of the Separation and
Distribution (including all attachments, exhibits, and other materials submitted with such
ruling request letter) and any amendment or supplement to such ruling request letter, including
but not limited to the request for rulings to the IRS in respect of the Distribution and related
matters, dated November 28, 2007.

     “Section 6.02 Claims” shall mean claims for refund attributable to items described in
and filed pursuant to Section 6.02 of this Agreement.

     “Separation” shall have the meaning assigned to it in the recitals to this Agreement.

     “SNI Additional Excess Items” shall have the meaning assigned to it in the definition of
“Excess SNI Group Benefits.”

     “SNI Affiliate” shall mean an Affiliate of SNI.

     “SNI AMT Liability” shall have the meaning assigned to it in Section 2.03.

     “SNI Business” means the business and operations conducted by the SNI Group from time to
time, whether prior to, at or after the Effective Time, including the business and operations
conducted by the SNI Group as more fully described in the Ruling Request and in the SNI
Information Statement.

     “SNI Capital Stock” shall mean all classes or series of stock of SNI and all options,
warrants, derivatives, rights to acquire stock, and other interests and instruments taken into
account for purposes of determining a Fifty-Percent or Greater Interest in SNI.

     “SNI Class A Common Shares” shall mean the Class A Common Shares, par value $0.01 per
share, of SNI.

     “SNI Combined Group” shall mean an affiliated group of corporations (as constituted from
time to time), consisting of SNI or its directly or indirectly owned subsidiaries, that EWS
determines will join in filing a Combined Return with an EWS Combined Group.

     “SNI Common Voting Shares” shall mean the Common Voting Shares, par value $0.01 per
share, of SNI.

     “SNI Consolidated Return” shall have the meaning assigned to it in the definition of
“Adjusted Separate SNI Group Federal Tax Liability.”

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     “SNI Director” shall have the meaning assigned to it in the Employee Matters Agreement.

     “SNI Group” shall mean the affiliated group of corporations (as constituted from time to time),
consisting of SNI or its directly or indirectly owned subsidiaries, that EWS determines will
join in filing a EWS Consolidated Return.

     “SNI Group State Tax Liability” shall have the meaning assigned to it in Section 3.02.

     “SNI Information Statement” means the definitive information statement distributed to
holders of EWS Common Shares in connection with the Distribution and filed with the SEC as
Exhibit 99.1 to the Registration Statement or as an exhibit to a
Form 8-K of SNI.

     
“SNI Issues” shall have the meaning assigned to it in
Section 8.02.

     
“SNI Participant” shall have the meaning assigned to it in the Employee Matters Agreement.

     “SNI Separate AMT” shall have the meaning assigned to it in 2.03.

     “SNI
Unsettled Issues” shall have the meaning assigned to it in
Section 8.03.

     
“Tax” or “Taxes” shall mean any tax, assessment, duty, fee or other charge imposed or collected
by any government or political subdivision thereof or any Taxing authority thereunder, including
but not limited to, any income, gross income, gross receipts, profits, capital stock, franchise,
withholding, payroll, social security, premium, guarantee fund, workers compensation,
unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service,
sales, use, license, lease, transfer, import, export, value added, minimum, alternative minimum,
estimated or other tax (including any assessment, duty, fee or other charge in the nature of or
in lieu of any such tax), and any interest, penalties, additions to tax, or additional amounts
in respect of the foregoing.

     “Tax
Advisor” shall mean a United States law or accounting firm of national standing in the
field of taxation selected by the Parties.

     “Tax Contest” shall mean an audit, review, examination, contest or any other
administrative or judicial proceeding with the purpose or effect of redetermining Taxes of any
Party (including any administrative or judicial review of any claim for refund) for any Tax
period.

     “Tax-Free Status” shall mean the qualification of the Distribution and related
transactions as a distribution in which no gain or loss is recognized, and no amount is
includible in income, for U.S. federal income Tax purposes (other than intercompany items,
excess loss accounts or other items required to be taken into account pursuant to the Treasury
Regulations promulgated under Section 1502 of the Code).

     “Tax-Related Losses” shall mean (i) all U.S. federal, state and local Taxes payable
pursuant to any Final Determination or otherwise; (ii) all professional fees, and court costs
incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated
with stockholder litigation or controversies, including but not limited to, any amount paid by
EWS, any EWS Affiliate, SNI, or any SNI Affiliate, as the case may be, in respect of the
liability of shareholders, whether paid to shareholders, the IRS, any other Taxing authority, or
any other person or entity, in each case, arising from the Distribution and related transactions
failing to have Tax-Free Status in any manner.

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     “Tax Return” shall mean any Tax return (including any amended return), report,
information return, election, notice or other document filed or to be filed with a Taxing
authority, including any schedules or related or supporting information.

     “Television Network and Interactive Businesses” shall mean the business of SNI so
designated, as described in the Ruling Request.

     “Total Combined Group” shall mean, with respect to any U.S. jurisdiction that requires
or permits the filing of a Combined Return, the affiliated group of corporations (as constituted
from time to time), that EWS determines will join in the filing of such Combined Return that
includes a EWS Combined Group and an SNI Combined Group.

     “TPIs” shall have the meaning assigned to it in Section 2.03.

     “Treasury Regulations shall mean U.S. Treasury regulations issued under the Code.

     “Unqualified Tax Opinion” shall mean an unqualified “will” opinion of a law firm of
nationally recognized standing in the field of taxation. Any such opinion shall assume that the
Distribution and related transactions would have qualified for Tax-Free Status had the
transaction in question not occurred.

     SECTION
1.02. General Interpretive Principles. (a) Words in the singular shall include
the plural and vice versa, and words of one gender shall include the other gender, in each case,
as the context requires, (b) the term “hereof,” “herein,” “hereunder,” and “herewith” and words
of similar import shall, unless otherwise stated, be construed to refer to this Agreement and
not to any particular provision of this Agreement, and any references to Article, Section,
paragraph, exhibit and schedule are references to the Articles, Sections, paragraphs, exhibits
and schedules to this Agreement unless otherwise specified, (c) the word “including” and words
of similar import when used in this Agreement shall mean “including, without limitation,” unless
otherwise specified and (d) any reference to any federal, state, local or non-U.S. statute or
law shall be deemed to also refer to all rules and regulations promulgated thereunder, unless
the context otherwise requires.

     SECTION 1.03. Applicable Standards. Except as otherwise specifically provided herein,
this Agreement shall supersede in all respects any and all policies and procedures governing the
allocation of Tax liability among the members of the EWS Group or the Total Combined Groups.
Except as otherwise specifically provided hereunder, all determinations and actions required
under this Agreement will be taken by EWS and shall be made in good faith taking into account,
among other factors, the goal of reducing the aggregate Taxes of the Parties. It is the
intention of the Parties that this Agreement shall be administered in a manner so that the
allocation of income, deduction, loss or Credit between the Parties will produce Tax
consequences for the Parties, on a current, carryback and carryover basis, that are consistent
with those that are required by the Code and Treasury Regulations.

ARTICLE II

U.S. CONSOLIDATED FEDERAL INCOME TAX LIABILITIES

     SECTION 2.01. Affiliation Years.

     (a) SNI and EWS Tax Liabilities. SNI irrevocably designates and agrees to cause each of its
Affiliates to so designate EWS as its agent to take any and all actions necessary or incidental
to the preparation and filing of EWS Consolidated Returns. EWS shall be responsible for, and
shall indemnify and hold SNI and the SNI Affiliates harmless against all U.S. federal income tax
liabilities in respect of members of the EWS Group (other than members of the SNI Group) under
Treasury Regulations Section

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1.1502-6. SNI shall be responsible for, and shall indemnify and hold EWS and the EWS Affiliates
harmless against, the U.S. federal income Tax liability of the SNI Group for all taxable years
ending on or before December 31, 2008, including, without limitation, the 2007 Tax Liability and
the 2008 Tax Liability. SNI shall be liable for and pay EWS the Adjusted Separate SNI Group
Federal Tax Liability for each such Affiliation Year. EWS shall pay SNI, but SNI shall remain
liable for, Excess EWS Group Benefits, if any, for any such year if the Adjusted Separate SNI
Group Federal Tax Liability for such year is zero. SNI shall pay EWS but EWS shall remain liable
for, Excess SNI Group Benefits, if any, for the Taxable year of the EWS Group ending on December
31, 2007, if the Adjusted Separate EWS Group Federal Tax Liability for such Taxable year is
zero.

     (b) 2007 Tax Liability. At least three (3) business days before EWS files the EWS Consolidated
Return for the 2007 Taxable Year, the Parties shall determine the amount of the 2007 Tax
Liability or any Excess EWS Group Benefits for such year (“2007 Excess EWS Group
Benefits”) or any Excess SNI Group Benefits for such year (“2007 Excess SNI Group
Benefits”). SNI shall pay to EWS or EWS shall pay to SNI an amount equal to the difference
between (i) the 2007 Tax Liability and (ii) (A) the sum of any payments previously made by SNI
to EWS with respect to the 2007 Tax Liability, reduced (to and below zero) by (B) the sum of any
payments previously made or to be made by EWS to SNI in respect of any 2007 Excess EWS Group
Benefits and increased by the payments made or to be made by SNI to EWS with respect to the 2007
Excess SNI Group Benefits. The “2007 Tax Liability” is the Adjusted Separate SNI Group
Federal Tax Liability for the taxable year ending on December 31, 2007 (“2007 Taxable
Year”). Payment by SNI is due within one (1) business days after notice by EWS. Payment by
EWS is due within thirty (30) business days of filing the EWS Consolidated Return for the
2007 Taxable Year.

     SECTION 2.02. 2008 Taxable Year.

     (a) 2008 Tax Liability. SNI shall be responsible and pay EWS for, and shall indemnify and
hold EWS and the EWS Affiliates harmless against, the “2008 Tax Liability,” which shall include,
but not be limited to, all liabilities arising from the triggering of intercompany and other
items as described in clause (iii) of the definition above of “Adjusted Separate SNI Group
Federal Tax Liability” and all Taxes attributable to the income of CPMCO for the 2008 Taxable
Year. EWS agrees to indemnify and hold SNI and SNI Affiliates harmless against U.S. federal
income tax liabilities in respect of members of the EWS Group (other than members of the SNI
Group) under Treasury Regulation Section 1.1502-6 other than Tax liability attributable to the
income of CPMCO for the 2008 Taxable Year. The “2008 Tax Liability” is the Adjusted
Separate SNI Group Federal Tax Liability for the taxable year beginning on January 1, 2008 and
ending on and including the Distribution Date (the “2008 Taxable Year”) and all taxes
attributable to the income of CPMCO for the 2008 Taxable Year. EWS shall pay SNI but SNI shall
remain liable for the Excess EWS Group Benefits, if any, for the taxable year of the EWS Group
ending on December 31, 2008 if the Adjusted Separate SNI Group Federal Tax Liability is zero
under the preceding sentence (“2008 Excess EWS Group Benefits”). SNI shall pay EWS but
EWS shall remain liable for, Excess SNI Group Benefits, if any, for the Taxable year of the EWS
Group ending on December 31, 2008, if the Adjusted Separate EWS Group Federal Tax Liability for
such Taxable year is zero (“2008 Excess SNI Group Benefits”).

     (b) Estimated Payments, Etc. From and after the date of this Agreement, SNI shall pay to EWS no
later than the day before each due date for the payment of quarterly estimated U.S. federal
income Taxes for the taxable year of the EWS Group ending on December 31, 2008 and the payment
due March 15, 2009 the difference, if any, between (A) 2008 Tax Liability due based on the
method for making estimated payments elected by EWS pursuant to Section 6655 of the Code, and
(B) the sum of any payments previously made by SNI to EWS with respect to the 2008 Tax
Liability.

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     (c) Payment Upon Filing Return. At least three (3) business days before the day that EWS files
the EWS Consolidated Return for the 2008 Taxable Year, EWS shall determine the amount of the
2008 Tax Liability, any 2008 Excess EWS Group Benefits, and any 2008 Excess SNI Group Benefits.
SNI shall pay to EWS or EWS shall pay to SNI, as the case may be, the difference between (i) the
2008 Tax Liability and (ii) (A) the sum of the payments previously made by SNI to EWS with
respect to the 2008 Tax Liability reduced (to and below zero) by (B) the sum of any payments
previously made or to be made by EWS to SNI in respect of any 2008 Excess EWS Group Benefits and
increased by any payments made or to be made by SNI to EWS in respect of any 2008 Excess SNI
Group Benefits and all Taxes attributable to the income of all CPMCO for the 2008 Taxable Year.
Payment by SNI is due within at least one (1) business day before the date on which such Tax is
required to be paid. Payment by EWS is due within thirty (30) business days of filing the EWS
Consolidated Return for the 2008 Taxable Year.

     (d) Settling Tax Payable Accounts. On or before the Distribution Date, SNI and EWS shall
cooperate to settle all intercompany accounts with respect to Taxes for all Affiliation Years
and all
Combined Years based on the most accurate and complete information then available. SNI and EWS
shall finally settle such accounts as otherwise provided in this Article II.

     (e) Assignment of Taxable Items. The Parties shall determine the amounts of income, gain, loss,
deduction, and Credit of the SNI Group for the 2008 Taxable Year that are properly includable in
the EWS Consolidated Return for the taxable year of the EWS Group
ending on December 31, 2008.
For all relevant purposes of this Agreement, the members of the SNI Group and each SNI Combined
Group shall cease to be members of the EWS Group and their respective Total Combined Groups, as
of the end of the Distribution Date, and SNI shall cause the books of account of the members of
the SNI Group and the SNI Combined Groups to be closed for accounting and Tax purposes as of the
end of the Distribution Date in accordance with EWS’s direction. In determining consolidated
taxable income for the taxable period that ends on the Distribution Date, the income and other
items of the SNI Group shall be determined in accordance with Treasury Regulations Section
1.1502-76(b)(l), -76(b)(2)(i) and — 76(b)(2)(iv) and no election shall be made under Treasury
Regulation Section 1.1502-76(b)(2)(ii)(D) to ratably allocate items. However, an allocation
shall be made under Treasury Regulations Section 1.1502- 76(b)(2)(iii) if such allocation is
determined by the Parties to be necessary to appropriately allocate income in the event that the
Distribution Date occurs on any date other than the last or first day of any month. Pursuant to
Treasury Regulations Section 1.1502-76(b)(2)(vi), any item of a pass-through entity that is
owned by a member of the SNI Group shall be allocated as if such member sold its entire interest
in the entity immediately before the Distribution. In the event that a member or members of the
SNI Group would be treated as owning an interest of less than 50% in the aggregate in such
pass-through entity, then pursuant to Treasury Regulations Section 1.706-l(c)(ii), each such
member’s share of any distributive items shall be the amount determined by taking into account
the pro rata part of such items that such member would have included in taxable income had such
member remained a partner or owner of the pass-through entity until the end of the partnership
tax year based on the portion of the partnership taxable year that has elapsed through the
Distribution Date or upon such other reasonable method that the Parties may agree. SNI and SNI
Affiliates shall file their respective Tax Returns for the taxable period beginning on the first
day after the Distribution Date consistently with such determinations.

     (f) Determining Foreign Attributes. Without limiting the foregoing, the Parties shall also
determine the portion of any Foreign Attribute for the SNI Group that is allocable to the
taxable year ending December 31, 2008, provided, that such portion to be allocated will not
include any amount described in Section 951 (a) of the Code (relating to inclusions in income of
controlled foreign corporation earnings) or any amount described in Section 1293(a) of the Code
(relating to inclusions in income of qualified electing fund earnings), or any indirect foreign
Tax Credit under Sections 960 and 1293(f) of the Code for foreign income Taxes deemed paid with
respect to either of these items; and provided, further, that, without the prior
written consent of EWS, such consent not being unreasonably
withheld, SNI and its

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subsidiaries shall not elect to recapture an amount of taxable income from
sources without the U.S. of any member of the SNI Group greater than the minimum amount required
by Section 904(f)(l) of the Code for any Affiliation Year. SNI shall provide EWS with all
information it reasonably requests to make any determination under this subsection (f). EWS will
likewise share all information with SNI necessary for SNI to determine its share of the
consolidated foreign Tax Credits for the taxable year ending December 31, 2008 and all prior
taxable years.

     SECTION 2.03. U.S. Federal Alternative Minimum Tax.

     (a) SNI Tax Liability. Notwithstanding any other provision in this Agreement, if, for any
Affiliation Year, the EWS Group is liable for alternative minimum Tax for U.S. federal income
Tax purposes (or any similar U.S. federal Tax) (“AMT”) and the SNI Group would be liable for AMT
if it filed a Tax Return as a separate consolidated group (“SNI Separate AMT”). SNI
shall pay to EWS an amount (the “SNI AMT Liability”) determined by the Parties equal to
the product of the AMT liability for the EWS Group (the “EWS AMT Liability”) and a fraction (the
“Fraction”) (x) the numerator of which is the sum of the Tax preference items and
adjustments of the SNI Group relevant for purposes of the computation of AMT (the
“TPIs”) for such Affiliation Year and (y) the denominator of which is the sum of the
TPIs of all members of the EWS Group for such Affiliation Year. The SNI AMT Liability for such
Affiliation Year shall not exceed the amount of the SNI Separate AMT for such Affiliation Year.

     (b) Minimum Tax Credits. If for any Affiliation Year SNI has paid to EWS the SNI AMT Liability,
EWS shall pay to SNI its proportionate share (determined below) of the minimum Tax credit for
U.S. federal income Tax purposes (the “Minimum Tax Credit”) arising from such
Affiliation Year which is actually utilized by the EWS Group in a subsequent Affiliation Year.
SNI’s proportionate share of such credit for any Affiliation Year shall be equal to the product
of such credit and the Fraction (defined in subsection (a) above). In no event shall SNI be paid
amounts in the aggregate in respect of such credit in excess of the corresponding SNI AMT
Liability.

ARTICLE III

U.S. COMBINED STATE AND LOCAL INCOME TAX LIABILITIES

     SECTION 3.01. Returns Covered. If any member of an EWS Combined Group and any member of
an SNI Combined Group are required to file, or if the Parties elect that any member of an EWS
Combined Group and any member of an SNI Combined Group shall file a Combined Return for any
taxable years, or where any U.S. state or local Taxing authority successfully asserts such a
combined filing requirement, the allocation and settlement of amounts due between the Parties
shall be governed by this Article III.

     SECTION 3.02. Pre-2008 Taxable Year. For each taxable year ending on or before December
31, 2007, the Parties shall determine each SNI Combined Group’s respective share, as determined
below, of the total U.S. state and local Tax liability in each such Combined State (each a
“Combined State Total Tax Liability”). The SNI Combined Group’s share of each Combined
State Total Tax Liability (“SNI Group State Tax Liability”) will be based on the
apportionment percentage of all members of the SNI Combined Group, determined with reference
only to those companies that are subject to such state’s taxing jurisdiction, as if such members
of the SNI Combined Group had filed a separate Combined Return. The SNI Group State Tax
Liability will include any minimum or similar Taxes for members of each SNI Combined Group that
may be required by the relevant state or locality. SNI shall be responsible for and pay to EWS,
and shall indemnify EWS and EWS Affiliates from and against the SNI Group State Tax Liability
for each Combined Return for all taxable years ending on or before December 31, 2007. Any
Combined State Total Tax Liability in excess of the SNI Group State Tax Liability (“EWS
Group State Tax Liability”) shall be the responsibility of EWS and EWS shall indemnify SNI
and SNI Affiliates

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from and against the EWS Group State Tax Liability for all taxable years ending on or before
December 31, 2007.

     SECTION 3.03. Operating Losses. Consistent with the approach applied for operating units
of Total Combined Groups, the SNI Group State Tax Liability will not be reduced by, nor will SNI
or any other SNI Combined Group member receive any payment, credit or benefit for, U.S. state or
local net operating losses (“NOLs”), including any carryback or carryover NOLs, that any such
member generates for U.S. state or local income Tax purposes on a stand-alone basis, whether or
not they are used in a Combined Return (except insofar as such NOLs may reduce the SNI Combined
Group’s share of the total U.S. state and local Tax liability for a Total Combined Return).

     SECTION 3.04. 2008 Taxable Year. For the taxable years beginning on January 1, 2008, the
Parties shall determine the SNI Combined Group’s share of the total U.S state and local Tax
liability in each Combined State in the same manner as set forth in Sections 3.02 and 3.03
above, taking into account the apportionment percentages and other relevant items of each
appropriate SNI Combined Group through and including the Distribution Date. SNI shall be
responsible for and pay to EWS, and shall indemnify EWS and the EWS Affiliates from and against,
the SNI Group State Tax Liability for all Combined Returns and all Taxes attributable to the
income of CPMCO for the taxable years beginning January 1, 2008.

     SECTION 3.05. Short-Year State and Local Returns. EWS and SNI agree that Combined
Returns filed for Tax periods beginning January 1, 2008, will reflect a short taxable year for
SNI ending on the Distribution Date in any state or local taxing jurisdiction in which such Tax
year is allowed by administrative practice, whether or not required by law.

     SECTION 3.06. Estimated Taxes. Etc. For each Combined State, the Parties will determine
the SNI Combined Group’s estimated Tax payments and extension payments (collectively,
“Estimated State Taxes”), will prescribe the information required to be provided by the
SNI Combined Group to support EWS’s preparation and filing of Combined Returns and payment of
Estimated State Taxes, together with a schedule of due dates for providing of such information
and paying its share of Estimated State Taxes, and SNI will timely and accurately provide and
pay the same to EWS, the Parties will calculate the aggregate SNI Group State Tax Liability for
all Combined States for a Combined Year less a credit for aggregate Estimated State Taxes paid
or determine the refund due to SNI to the extent aggregate Estimated State Taxes paid by SNI
exceed the aggregate SNI Group State Tax Liability. Payment by SNI is due within one (1)
business day before the date such Tax are required to be paid. Payment by EWS to SNI of any SNI
overpayment is due within five (5) business days after the return including the overpayment is
filed.

     SECTION 3.07. Adjustments.

     (a) If an Adjustment occurs, the SNI Group State Tax Liability for the year in question shall
be recomputed by the Parties, including all changes to apportionment percentages that result
from such Adjustment. SNI shall make payments to EWS for an increase in the SNI Group Tax
Liability or EWS shall make payments to SNI for a decrease in the SNI Group Tax Liability,
including its allocable share of interest, penalties and additions to Tax and external costs.
Payment in respect of such Adjustments by SNI is due at least one (1) business day before the
date payment of such Adjustment is required to be made. Payment in respect of such Adjustments
by EWS is due within five (5) business days after EWS receives a refund or credit for refund in
respect of the items in question.

     (b) Subject to Article VIII, the Parties shall jointly control all Tax Contests relating to any
such Adjustments.

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ARTICLE IV

SEPARATE TAX RETURN OBLIGATIONS

     SECTION 4.01. SNI Tax Liability. SNI shall be responsible for, and shall indemnify and
hold harmless EWS and EWS Affiliates against, any and all U.S. federal, state and local and
non-U.S. Taxes that are required to be reported on any separate Tax Return that does not include
EWS or any EWS Affiliate; provided, however, for the 2008 Taxable Year the SNI Tax
Liability shall include all Taxes attributable to the income of CPMCO.

     SECTION 4.02. EWS Tax Liability. EWS shall be responsible for, and shall indemnify and
hold harmless SNI and SNI Affiliates against, any and all U.S. federal, state and local and
non-U.S. Taxes that are required to be reported on any separate Tax Return that does not include
SNI or any SNI Affiliate; provided, however, for the 2008 Taxable Year the EWS Tax
Liability shall not include any Taxes attributable to the income of CPMCO.

     SECTION 4.03. Separate Return Adjustments. If there is an adjustment to a separate Tax
Return of EWS and/or EWS Affiliates, or SNI and/or SNI Affiliates, as the case may be, that
results in the inclusion in income in such Tax Return of income attributable to the other group
of companies, and the recipient thereby incurs an Income Tax Detriment, SNI shall pay to EWS or
EWS shall pay to SNI, as the case may be, an amount equal to such Income Tax Detriment
(including any interest, penalties and additions to Tax) within thirty (30) business days after
the Final Determination of such Income Tax Detriment.

ARTICLE V

TAX-FREE STATUS OF DISTRIBUTION

     SECTION
5.01. Tax-Free Status Ruling, Etc. SNI will not take or fail to take or permit
any SNI Affiliates to take or fail to take any action inconsistent with or that will cause to be
untrue any material information or representation in the Ruling Documents, representation
letters that the Tax Advisor relied upon in rendering an opinion or opinions on the Tax-Free
Status (“Representation Letters”) or formal advice or opinion. EWS will not take or fail to take
or permit any EWS Affiliates to take or fail to take any action inconsistent with or that will
cause to be untrue any material information or representation in the Ruling Documents,
Representation Letters or formal advice or opinion. In the event any material information or
representation in the Ruling Documents or Representation Letters shall be untrue, EWS and SNI
agree to allocate the Distribution Taxes arising therefrom 20% to EWS and 80% to SNI, SNI shall
be responsible for, and shall indemnify and hold EWS and EWS Affiliates, and their direct and
indirect shareholders harmless against, 80% of any Distribution Taxes and EWS shall be
responsible for and shall indemnify and hold SNI and SNI Affiliates, and their direct and
indirect shareholders harmless against 20% of any Distribution Taxes.

     SECTION 5.02. Maintaining Status of Active Business. SNI agrees that it intends to
maintain the status of the Television Network and Interactive Businesses as an active trade or
business as defined in Section 355(b)(2) of the Code and the Treasury Regulations promulgated
thereunder, that is part of, or treated as part of, the SNI Group for U.S. federal income Tax
purposes. EWS agrees that it intends to maintain the status of the Newspaper Business and EWS
Businesses as an active trade or business as defined in Section 355(b)(2) of the Code and the
Treasury Regulations promulgated thereunder that is part of, or treated as part of the EWS Group
for U.S. federal income Tax purposes.

     SECTION 5.03. Limits on Proposed Acquisition Transactions.

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     (a) SNI agrees that, from the date hereof until the first day after the second anniversary of
the Distribution Date, it shall not (i) enter into any Proposed SNI Acquisition Transaction,
approve any Proposed SNI Acquisition Transaction or, to the extent SNI has the right to prohibit
any Proposed SNI Acquisition Transaction, permit any Proposed SNI Acquisition Transaction to
occur (whether by
redeeming rights under a shareholder rights plan, finding a tender offer to be a “permitted
offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized
with respect to any Proposed SNI Acquisition Transaction), (ii) merge or consolidate with any
other Person or liquidate or partially liquidate, (iii) sell or otherwise transfer in a single
transaction or series of transactions 40% or more of the gross or net assets of the SNI Business
or 40% or more of the consolidated gross or net assets of SNI and the SNI Affiliates (such
percentages to be measured based on fair market value as of the Distribution Date), (iv) redeem
or otherwise repurchase (directly or through an SNI Affiliate) any SNI Capital Stock, or rights
to acquire such stock other than open market repurchases of less than 10 %, in the aggregate, of
SNI Class A Common Shares provided such stock repurchases meet the requirements of Rev. Proc.
96-30, 1996-1 C.B. 696); (v) amend its certificate of incorporation (or other organizational
documents), or take any other action, whether through a stockholder vote or otherwise, affecting
the relative voting rights of the separate classes of SNI Capital Stock (including, without
limitation, through the conversion of one class of SNI Capital Stock into another class of SNI
Capital Stock) or (vi) take any other action or actions (including any action or transaction
that would be reasonably likely to be inconsistent with any representation made in the Ruling
Documents, or Representation Letters, or any rulings, formal advice or opinion described in
Section 5.01 above) which in the aggregate (taking into account any other transactions described
in this Section 5.03) would be reasonably likely to have the effect of causing or permitting one
or more Persons (whether or not acting in concert) to acquire, directly or indirectly, SNI
Capital Stock representing a Fifty-Percent or Greater Interest in SNI or otherwise jeopardize
the Tax-Free Status, unless prior to taking any such action set forth in the foregoing clauses
(i) through (vi), (A) SNI shall have requested that EWS obtain a private letter ruling from the
IRS and EWS shall have received such a ruling in form and substance satisfactory to EWS that
confirms that the Tax- Free Status will be preserved, taking into account such action and other
transactions in the aggregate, or (B) SNI shall provide EWS with an Unqualified Tax Opinion in
form and substance acceptable to EWS (and on which EWS may rely) that confirms that the Tax-Free
Status will be preserved, taking into account such action and other transactions in the
aggregate, or (C) EWS shall have waived the requirement to obtain such ruling or opinion. In
determining whether such a ruling is satisfactory or such opinion is acceptable, EWS may
consider, among other factors, the appropriateness of any underlying assumptions and
representations made in connection with such ruling or opinion. To the extent that any such
ruling or opinion concerns the acquisition of a Fifty-Percent or Greater Interest in SNI, it
shall expressly conclude that such acquisition will satisfy one or more of the safe harbors
described in the Treasury Regulations promulgated under Section 355(e) of the Code. SNI shall
bear all costs and expenses of securing any such ruling or opinion and shall reimburse EWS for
all external costs and expenses that it may incur in good faith in seeking to obtain or evaluate
any such ruling or opinion.

     (b) EWS agrees that, from the date hereof until the first day after the second anniversary of
the Distribution Date, it shall not (i) enter into any Proposed EWS Group Acquisition
Transaction, approve any Proposed Acquisition Transaction or, to the extent EWS has the right to
prohibit any Proposed EWS Group Acquisition Transaction, permit any Proposed EWS Group
Acquisition Transaction to occur (whether by redeeming rights under a shareholder rights plan,
finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any
such plan to be inapplicable or neutralized with respect to any Proposed EWS Group Acquisition
Transaction), (ii) merge or consolidate with any other Person or liquidate or partially
liquidate, (iii) sell or otherwise transfer in a single transaction or series of transactions
40% or more of the gross or net assets of the EWS Business or 40% or more of the consolidated
gross or net assets of EWS and the EWS Affiliates (such percentages to be measured based on fair
market value as of the Distribution Date), (iv) redeem or otherwise repurchase (directly or
through an EWS Affiliate) any EWS Capital Stock, or rights to acquire such stock other than

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open market repurchases of less than 10%, in the aggregate, of EWS Class A Common Shares provided
such stock repurchases meet the requirements of Rev, Proc. 96-30, 1996-1 C.B. 696); (v) amend its
certificate of incorporation (or other organizational documents), or take any other action, whether
through a stockholder vote or otherwise, affecting the relative voting rights of the separate
classes of EWS Capital Stock (including, without limitation, through the conversion of one class of
EWS Capital Stock into another class of EWS Capital Stock) or (vi) take any other action or actions
(including any action or transaction that would be reasonably likely to be inconsistent with any
representation made in the Ruling Documents, or Representation Letters, or any rulings, formal
advice or opinion described in Section 5.01 above) which in the aggregate (taking into account any
other transactions described in this Section 5.03) would be reasonably likely to have the effect of
causing or permitting one or more Persons (whether or not acting in concert) to acquire, directly
or indirectly, EWS Capital Stock representing a Fifty-Percent or Greater Interest in EWS or
otherwise jeopardize the Tax-Free Status, unless prior to taking any such action set forth in the
foregoing clauses (i) through (vi), (A) EWS shall have obtained a private letter ruling from the
IRS and EWS shall have received such a ruling in form and substance satisfactory to SNI that
confirms that the Tax-Free Status will be preserved, taking into account such action and other
transactions in the aggregate, or (B) EWS shall provide SNI with an Unqualified Tax Opinion in form
and substance acceptable to SNI (and on which SNI may rely) that confirms that the Tax-Free Status
will be preserved, taking into account such action and other transactions in the aggregate, or (C)
SNI shall have waived the requirement to obtain such ruling or opinion. In determining whether such
a ruling or opinion is satisfactory, SNI may consider, among other factors, the appropriateness of
any underlying assumptions and representations made in connection with such ruling or opinion. To
the extent that any such ruling or opinion concerns the acquisition of a Fifty-Percent or Greater
Interest in EWS, it shall expressly conclude that such acquisition will satisfy one or more of the
safe harbors described in the Treasury Regulations promulgated under Section 355(e) of the Code.
EWS shall bear all costs and expenses of securing any such ruling or opinion and shall reimburse
EWS for all external costs and expenses that it may incur in good faith in seeking to obtain or
evaluate any such ruling or opinion.

     SECTION 5.04. Indemnity.

     (a) Subject to subsection (c) of this section, SNI shall be responsible for, and shall
indemnify and hold EWS and EWS Affiliates and their direct and indirect shareholders harmless
against any Distribution Taxes, to the extent such Distribution Taxes are attributable to, caused
by, or result from one or more of the following:

          (i) any
action or omission by SNI or any SNI Affiliate, at any time, that is inconsistent with any information, covenant or representation in the Ruling Documents,
Representation Letters or any tax opinions concerning the Tax-Free Status of the Distribution;

          (ii) any action or omission by SNI or any SNI Affiliate, after the Distribution
(including any act or omission that is in furtherance of, connected to, or part of a plan or series
of related transactions (within the meaning of section 355(e) of the Code) occurring on or prior to
the Distribution), including a cessation, transfer to affiliates, or disposition of the active
trades or businesses, stock buyback or payment of an extraordinary dividend;

          (iii) any acquisition of any stock or assets of SNI or any SNI Affiliate, by one or more
other Persons (other than EWS or any EWS Affiliate) prior to or following the Distribution;

          (iv) any issuance of stock by SNI or any SNI Affiliate, after the Distribution,
including any issuance pursuant to the exercise of employee stock options or other employment
related arrangements, or the exercise of warrants; or

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          (v) any change in ownership of stock in SNI or any SNI Affiliate after the
Distribution.

     (b) Subject to subsection (c) of this section, EWS shall be responsible for, and shall
indemnify and hold SNI and SNI Affiliates and their direct and indirect shareholders harmless
against any Distribution Taxes, to the extent such Distribution Taxes are attributable to, caused
by, or result from one or more of the following:

          (i) any action or omission by EWS or any EWS Affiliate, at any time, that is
inconsistent with any information, covenant or representation in the Ruling Documents,
Representation Letters or any tax opinions concerning the Tax-Free Status of the Distribution;

          (ii) any action or omission by EWS or any EWS Affiliate, after the Distribution
(including any act or omission that is in furtherance of, connected to, or part of a plan or series
of related transactions (within the meaning of section 355(e) of the Code) occurring on or prior to
the Distribution), including a cessation, transfer to affiliates, or disposition of the active
trades or businesses, stock buyback or payment of an extraordinary dividend;

          (iii) any acquisition of any stock or assets of EWS or any EWS Affiliate, by one or more
other Persons prior to or following the Distribution;

          (iv) any issuance of stock by EWS or any EWS Affiliate, after the Distribution,
including any issuance pursuant to the exercise of employee stock options or other employment
related arrangements, or the exercise of warrants; or

          (v) any change in ownership of stock in EWS or any EWS Affiliate after the
Distribution.

     (c) For purposes of calculating the amount and timing of any Tax-Related Loss in connection
with any Tax payable by an indemnified party, such loss shall be calculated by assuming that the
indemnified party pays income Tax at the Highest Combined Tax Rate in effect in each relevant
taxable year and that the income arising in connection with the Tax-Related Losses is the only item
of income, deduction, Credit or loss for such year. SNI shall pay EWS or such other applicable
indemnified party the amount of any such Tax-Related Losses for which SNI is responsible under this
Section 5.04 within one (1) business day before payment is due from EWS or such other party. EWS
shall pay SNI or such other applicable indemnified party the amount of any such Tax-Related Losses
for which EWS is responsible under this Section 5.04 within one (1) business day before payment is
due from SNI or such other party.

     (d) Until all applicable statutes of limitations with respect to Distribution Taxes expire
(after giving effect to any extensions or waivers thereof), SNI shall not (i) merge or consolidate
with any other Person or liquidate or partially liquidate into any other Person, (ii) sell or
otherwise transfer to any other Person or group of Persons, directly or indirectly, in a single
transaction or series of transactions 25% or more of the gross or net assets of SNI (such
percentage to be determined based on fair market value as of the Distribution Date), (iii) engage
in any other reorganization or restructuring with any other Person, or (iv) agree or permit any
Person or group of Persons, directly or indirectly, in a single transaction or series of
transactions, to acquire a Fifty Percent or Greater Interest in SNI, unless, in each case, each
such Person agrees, to EWS’ satisfaction, to be jointly and severally liable with SNI in its
obligations under this Article V.

     (e) Until all applicable statutes of limitations with respect to Distribution Taxes expire
(after giving effect to any extensions or waivers thereof), EWS shall not (i) merge or consolidate
with any other

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Person or liquidate or partially liquidate into any other Person, (ii) sell or otherwise transfer
to any other Person or group of Persons, directly or indirectly, in a single transaction or series
of transactions 25% or more of the gross or net assets of EWS (such percentage to be determined
based on fair market value as of the Distribution Date), (iii) engage in any other reorganization
or restructuring with any other Person, or (iv) agree or permit any Person or group of Persons,
directly or indirectly, in a single transaction or series of transactions, to acquire a Fifty
Percent or Greater Interest in EWS, unless, in each case, each such Person agrees, to SNI’s
satisfaction, to be jointly and severally liable with EWS in its obligations under this Article V.

ARTICLE VI

CARRYOVER AND CARRYBACK ITEMS

     SECTION 6.01. Carryovers to Post-Affiliation Years. The Parties will apportion any
U.S. federal consolidated net operating or capital losses, Credits or other applicable items
between members of the SNI Group (departing from the EWS Group as a consequence of the Distribution
and related transactions) and members of the EWS Group (not taking into account SNI Group members)
pursuant to applicable Treasury Regulations promulgated under Section 1502 of the Code. Such
consolidated items and their apportionment will be adjusted to reflect any Adjustments that take
place in applicable Affiliation Years.

     SECTION 6.02. Carrybacks from Post-Affiliation Years.

     (a) Carryback
Items. If SNI and/or its subsidiaries sustain U.S. federal capital or net
operating losses or generate U.S. federal Credits in a Post-Affiliation Year which may be carried
back to an Affiliation Year and will generate an Income Tax Benefit, SNI may request EWS to file a
Section 6.02 Claim with the IRS with respect to the U.S. federal income Tax liability of the EWS
Group for such Affiliation Year. EWS shall have sole discretion whether to accept a request to file
carryback claims (except for foreign Tax Credit or domestic source capital loss carryback claims)
and file any amended Tax Returns or claims for refund relating thereto, which discretion may be
exercised without regard to satisfying a standard of good faith or any other standard provided for
in this Agreement or elsewhere. With regard to requests to file foreign Tax Credit or domestic
source capital loss carryback claims to an Affiliation Year, EWS will implement such requests it
determines in good faith to be available on the terms set forth hereinafter.

     (b) Procedures. If EWS files a Section 6.02 Claim, EWS shall have full control over the
Section 6.02 Claim and will consult with SNI to determine the nature of all actions to be taken in
connection with such claim. If there is any limitation that applies to the EWS Group in respect of
all or a portion of the items that comprise a Section 6.02 Claim in respect of foreign Tax Credits
or domestic source capital losses, any Income Tax Benefit in respect of such claim shall be
determined by EWS in consultation with SNI. If there any limitations in the ability of the EWS
Group to utilize items in the same category as the items that comprise such claim, any Income Tax
Benefit will be determined by EWS in consultation with SNI based on the assumption that the items
were utilized on a Proportionate Basis, EWS will pay to SNI the amount of the Income Tax Benefit,
if any, derived from such claim within 30 business days after it receives a refund or credit for
refund therefor. SNI will repay to EWS all or a portion of such amount to the extent the Income Tax
Benefit is reduced as a result of an Adjustment for any Affiliation Year or otherwise, together
with applicable interest and penalties. If EWS elects to file a Section 6.02 Claim in respect of
the carryback of any attribute other than foreign Tax Credits or domestic source capital losses,
the terms for payment and other provisions shall be determined based upon the mutual agreement, if
any, of the Parties. If EWS files a Section 6.02 Claim, SNI will indemnify EWS for any additional
Taxes or loss of Tax benefits incurred by a member of the EWS Group (including interest, penalties
and additions to Tax) arising from such claim. EWS shall also be entitled to reimbursement

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from SNI for any reasonable external costs for professional services incurred by EWS in connection
with the Section 6.02 Claim whether or not SNI receives payment or credit therefor.

ARTICLE VII

U.S. FEDERAL INCOME TAX ADJUSTMENTS

     SECTION 7.01. Determination. If an Adjustment occurs, the liability of SNI or EWS, as
the case may be, pursuant to Article II hereof, or the amounts allocated pursuant to Article VI,
shall be recomputed by the Parties. As recomputed for purposes of Article II, SNI shall make
payments to EWS for an increase in SNI’s liability or EWS shall make payments to SNI for an
increase in EWS’ liability. For purposes of Sections 2.01 and 2.02, SNI’s liability shall be deemed
to have increased by any Adjustment that results in an increase in the Adjusted Separate SNI Group
Federal Tax Liability or a decrease in the Excess EWS Group Benefits, and EWS’ liability shall be
deemed to have increased by any Adjustment that results in a decrease in the Adjusted Separate SNI
Group Federal Tax Liability or an increase in the Excess EWS Group Benefits.

     SECTION 7.02. Payments. Payments due from SNI to EWS shall be made no later than one
(1) business day before the due date for payment by EWS to a Taxing authority upon the Final
Determination of the items in question, or, to the extent no such payment is due, within ten (10)
business days after the date of such Final Determination. Payments due from EWS to SNI shall be
made within ten (10) business days after EWS receives a refund or a credit for a refund with regard
to the items in question after a Final Determination therefor. Such payments shall include any
applicable interest, penalties and additions to Tax and, if applicable, any reasonable external
costs for professional services incurred by EWS thereon. In calculating any interest payable by SNI
to EWS hereunder, interest, if any, due from EWS to the IRS shall first be deemed to arise with
respect to the increase in the liability of SNI, as determined above.

     SECTION 7.03. Procedures. Subject to Section 6.02 hereof, for any Affiliation Year or
Combined Year, the Parties will determine whether to give effect, through any Tax Return, claim for
refund or otherwise, to items of loss, deduction or Credit for the SNI Group which are greater than
those reflected on prior Tax Returns and the nature of all actions taken with respect thereto. If
EWS files such a claim, SNI will indemnify EWS for any additional Taxes or loss of Tax benefits
incurred by a member of the EWS Group or the applicable Total Combined Group (including interest,
penalties and additions to Tax) arising from such claim.

     SECTION 7.04. Intercompany Adjustments. If any transaction or arrangement between EWS
and/or EWS Affiliates, on the one hand, and SNI and/or SNI Affiliates, on the other hand, is
recharacterized for applicable Tax purposes under Section 482 of the Code or otherwise and such
recharacterization results in an Income Tax Detriment to one applicable group of companies and an
Income Tax Benefit to the other group, the group incurring the Income Tax Detriment shall be paid
by the other group an amount equal to such Income Tax Detriment (including any interest, penalties
and additions to Tax) within thirty (30) business days after the Final Settlement of such Income
Tax Detriment. In addition, each Party hereto shall be responsible for, and shall indemnify and
hold the other Party and its Affiliates harmless against, any Taxes attributable to intercompany
items or otherwise for any stock or other assets (tangible or intangible) transferred to it (or an
EWS Affiliate, in the case of EWS, or an SNI Affiliate, in the case
of SNI) from the other Party
hereto (or an EWS Affiliate, in the case of EWS, or an SNI Affiliate, in the case of SNI) for which
it is determined not to have paid or provided fair market value consideration.

ARTICLE VII

INCOME TAX PROCEEDINGS

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     SECTION 8.01. Notice. Each Party shall provide prompt notice to the other Party of any
pending or threatened Tax audit, assessment, proceeding or other Tax Contest of which it becomes
aware that could affect any Tax liability for which the other Party may be responsible under this
Agreement; provided, however, that failure to give prompt notice shall not affect the
indemnification obligations hereunder except to the extent the Party providing indemnification is
actually prejudiced thereby. Such notice shall contain factual information (to the extent known)
describing such matters in reasonable detail and shall be accompanied by copies of any notice and
other documents received from any Taxing authority in respect of any such matters.

     SECTION
8.02. SNI and EWS Issues. EWS and SNI hereby agree that during the course of
an audit or any Tax Contest relating to any Affiliation Year, they will in good faith endeavor to
discuss and resolve separately with the IRS district agents or any equivalent state or local Taxing
authority any SNI Issues and EWS Issues. “SNI Issues” are issues relating to items of income, gain,
loss, deduction, or Credit that are attributable solely to the SNI Group and that could not
reasonably have material adverse consequences for the U.S. federal, state or local income Tax
liability of a member of the EWS Group (other than a member of the SNI Group) if resolved against
the taxpayer. “EWS Issues” are any other issues, including issues relating to Foreign Attributes of
the SNI Group.

     SECTION 8.03. Procedures.

     (a) In
the event a Revenue Agent’s Report (“RAR”) or equivalent state or local report is
issued with respect to an Affiliation Year and the RAR or equivalent state or local report contains
Adjustments proposed with respect to SNI Issues, at SNI’s request, EWS shall protest (as provided
for in applicable Treasury Regulations or applicable state or local rules and regulations) the
adjustments made with respect to SNI Issues. SNI will prepare that portion of any protest which it
determines should be filed in connection with any Adjustment proposed with respect to SNI Issues
and shall limit such portion of the protest to the defense of the specific SNI Issues raised in the
RAR or equivalent state or local report.

     (b) After the filing of such protest, EWS and SNI shall jointly meet with the IRS, state or
local representatives responsible for disposing of the issues in dispute and request the separate
resolution of the EWS and SNI Issues. They shall further request that the IRS or equivalent state
or local Taxing authority assign separate representatives to conduct any review of or proceedings
on their respective issues.

     (c) Regardless of whether the IRS or equivalent state or local Taxing authority agrees to
resolve the issues affecting each Party or assign separate representatives to deal with the issues
of each, EWS and SNI each will attend meetings and will prepare written presentations to be made to
the IRS regarding any Adjustments proposed only with respect to its respective issues. EWS and SNI
shall keep each other promptly informed of any developments and discussions at any such meetings
concerning Adjustments, whether or not formally proposed, affecting the other Party.

     (d) For each Affiliation Year, EWS shall have control of all EWS Issues not otherwise
settled at the audit or appeals level of the IRS or equivalent state or local Taxing
authority. For each Affiliation Year, SNI shall have control of all SNI Issues not otherwise
settled by SNI at the audit or appeals level of the IRS or equivalent state or local Taxing
authority (“SNI Unsettled Issues”).

     (e) To the extent any EWS Issues could affect any Tax liability for which the SNI Group may be
responsible, SNI shall have joint control over decisions to resolve, settle or otherwise agree to
any deficiency, claim or Adjustment, and EWS shall not settle any such EWS Issue without the
consent of SNI, such consent not to be unreasonably withheld. To the extent that any SNI Issues
could affect any

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Tax liability for which the EWS Group may be responsible, EWS shall have joint control over
decisions to resolve, settle or otherwise agree to any deficiency, claim or Adjustment, and SNI
shall not settle any such SNI Issue without the consent of EWS, such consent not to be
unreasonably withheld.

     SECTION 8.04. Forum for Judicial Proceedings.

     (a) Prior to instituting legal proceedings with respect to an SNI Unsettled Issue, SNI shall,
at its sole cost and expense, unless EWS agrees to waive the same, obtain an evaluation of the SNI
Unsettled Issues from an independent attorney experienced in the field of U.S. federal corporate
income Taxation, who shall be selected jointly by the Parties and who, in the case of a listed or
reportable transaction for U.S. federal income Tax Purposes, is not a disqualified Tax advisor
within the meaning of Section 6664(d)(3)(B)(ii) of the Code. The evaluation shall state, for the
SNI Unsettled Issues on an issue by issue basis, whether, in the opinion of the attorney (which in
the case of a listed transaction or reportable transaction for U.S. federal income Tax purposes
does not constitute a disqualified Tax opinion as defined in Section 6664(d) of the Code) the
filing position will more likely than not be sustained. Any discussions with respect to the
evaluation shall be held with both Parties jointly, and such attorney shall send a copy of the
evaluation (including any drafts thereof) to both Parties simultaneously.

     (b) If the evaluation discloses any SNI Unsettled Issues which do not fully meet the
aforementioned standards as applicable, SNI shall be obligated to settle such issues with the IRS
or equivalent state or local authority at its own cost and expense within a reasonable period of
time after receipt of the evaluation. In any case where judicial proceedings are instituted, with
respect to an Affiliation Year, EWS shall be entitled to select the forum for such judicial
proceedings, unless such proceedings involve SNI Unsettled Issues or issues that could affect any
Tax liability for which the SNI Group may be responsible. If SNI Unsettled Issues or issues that
could affect any Tax liability for which the SNI Group may be responsible are involved, SNI shall
be entitled to participate in the selection of the forum for judicial proceedings. Each Party shall
bear the costs of litigation in respect of its own issues.

     (c) Prior to instituting legal proceedings with respect to an EWS Unsettled Issue, EWS shall,
at its sole cost and expense, unless SNI agrees to waive the same, obtain an evaluation of the EWS
Unsettled Issues from an independent attorney experienced in the field of U.S. federal corporate
income Taxation, who shall be selected jointly by the Parties and who, in the case of a listed or
reportable transaction for U.S. federal income Tax Purposes, is not a disqualified Tax advisor
within the meaning of Section 6664(d)(3)(B)(ii) of the Code. The evaluation shall state, for the
EWS Unsettled Issues on an issue by issue basis, whether, in the opinion of the attorney (which in
the case of a listed transaction or reportable transaction for U.S. federal income Tax purposes
does not constitute a disqualified Tax opinion as defined in Section 6664(d) of the Code) the
filing position will more likely than not be sustained. Any discussions with respect to the
evaluation shall be held with both Parties jointly, and such attorney shall send a copy of the
evaluation (including any drafts thereof) to both Parties simultaneously.

     (d) If the evaluation discloses any EWS Unsettled Issues which do not fully meet the
aforementioned standards as applicable, EWS shall be obligated to settle such issues with the IRS
or equivalent state or local authority at its own cost and expense within a reasonable period of
time after receipt of the evaluation. EWS shall be entitled to select the forum for such judicial
proceedings, unless such proceedings involve SNI Unsettled Issues or issues that could affect any
Tax liability for which the SNI Group may be responsible. If EWS Unsettled Issues or issues that
could affect any Tax liability for which the SNI Group may be responsible are involved, SNI shall
be entitled to participate in the selection of the forum for judicial proceedings. Each Party shall
bear the costs of litigation in respect of its own issues.

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ARTICLE IX

PAYMENTS

     SECTION
9.01. Reporting of Indemnity Payments, Etc. Any Tax indemnity payments
hereunder or payments made in respect of Tax-Related Losses hereunder shall, unless otherwise
required by law, be reported for Tax purposes by the payer and the recipient as a cash capital
contribution by EWS or a cash distribution by SNI, as the case may be, immediately before the
Distribution. If, notwithstanding such reporting, such payment results in additional taxable income
to the recipient, such payments shall be increased such that the amount that the recipient receives
(net of Taxes) shall equal the amount of the payment that it would otherwise be entitled to receive
pursuant to this Agreement.

     SECTION 9.02. Interest on Late Payments. If any payments hereunder are not made when
due, interest shall accrue on the unpaid amount at the underpayment rate for large corporate
underpayments, in effect from time to time under Section 6621 of the Code, while such amount is
outstanding.

ARTICLE X

 TAX RETURNS

     SECTION 10.01. Cooperation and Furnishing of Tax Return Information.

     (a) Cooperation. EWS and SNI each agree to cooperate fully in connection with the preparation
of any Tax Return relating to any Affiliation Year or Combined Year and the resolution of any
related Tax audits, proceedings or disputes.

     (b) Tax Return Information. For purposes of the preparation by EWS of Tax Returns for the
taxable years ending on December 31, 2007 and December 31, 2008, respectively, on or prior to such
date(s) as specified by EWS, SNI shall provide EWS with Tax information for all members of each SNI
Combined Group, including but not limited to, schedule(s) showing the items of income, gain, loss,
deduction and Credit and Foreign Attributes with respect to each such taxable year required to be
included in applicable Tax Returns and complete work papers together with such other information as
EWS may request. The information provided by SNI shall be consistent with any similar information
provided by SNI to EWS for prior taxable years.

     (c) SNI Disclosures. SNI represents that it has provided, and agrees to promptly provide, to
EWS complete and accurate information that is required or EWS requests to satisfy all applicable
U.S. federal, state and local, and non-U.S. disclosure and reporting requirements in respect of
listed transactions, reportable transactions and other transactions that may be viewed as
Tax-motivated, including, but not limited to, U.S. state expense disallowance information. SNI also
represents that it has provided, and agrees to promptly provide, to EWS all documents and other
information that is required or EWS requests to satisfy the transfer pricing and other
documentation requirements set forth in Sections 482 and 6662 of the Code and the Treasury
Regulations thereunder or otherwise (including analogous provisions under U.S. state and local or
non-U.S. law), including but not limited to, principal documents as defined in Treasury Regulations
Section 1.6662-6(d)(2)(iii)(B), and to address any transfer pricing audit issue arising under
Section 482 of the Code or otherwise, shall promptly provide to EWS any documents and information
it may request, including background documents as defined in Treasury Regulations Section
1.6662-6(d)(2)(iii)(C). SNI further represents that it has provided, and agrees to promptly
provide, to EWS all internal and external tax opinions memoranda relating to the transactions and
other matters addressed in this subsection (c). If SNI fails to timely satisfy the requirements of
this subsection (c), it will indemnify, and hold EWS and EWS Affiliates harmless against, any
Taxes, interest, penalties or additions to Tax arising therefrom.

 - 24 - 

 

     (d) EWS
Disclosures. EWS represents that it has provided, and agrees to promptly
provide, to SNI complete and accurate information that is required or SNI requests to satisfy all
applicable U.S. federal, state and local, and non-U.S. disclosure and reporting requirements in
respect of listed transactions, reportable transactions and other transactions that may be viewed
as Tax-motivated, including, but not limited to, U.S. state expense disallowance information. EWS
also represents that it has provided, and agrees to promptly provide, to SNI all documents and
other information that is required or SNI requests to satisfy the transfer pricing and other
documentation requirements set forth in Sections 482 and 6662 of the Code and the Treasury
Regulations thereunder or otherwise (including analogous provisions under U.S. state and local or
non-U.S. law), including but not limited to, principal documents as defined in Treasury Regulations
Section 1.6662-6(d)(2)(iii)(B), and to address any transfer pricing audit issue arising under
Section 482 of the Code or otherwise, shall promptly provide to SNI any documents and information
it may request, including background documents as defined in Treasury Regulations Section
1.6662-6(d)(2)(iii)(C). EWS further represents that it has provided, and agrees to promptly
provide, to SNI all internal and external tax opinions memoranda relating to the transactions and
other matters addressed in this subsection (d). If EWS fails to timely satisfy the requirements of
this subsection (d), it will indemnify, and hold SNI and SNI Affiliates harmless against, any
Taxes, interest, penalties or additions to Tax arising therefrom.

     SECTION 10.02. Preparation of Tax Returns.

     (a) Preparation. EWS shall have sole authority for the preparation and filing of any
consolidated U.S. federal income Tax Return or Combined Tax Return, which include the items of
income, gain, loss, deduction and Credit of the SNI Group or any SNI Combined Group for all
relevant taxable periods, including but not limited to, determination of Foreign Attributes. With
respect to the U.S. federal income Tax Returns for the taxable years ending December 31,2007 and
December 31, 2008, respectively, EWS agrees to afford SNI a meaningful opportunity to review and
comment on such returns, and shall consider such comments in good faith. In addition, with respect
to any Combined Tax Return for the taxable years ending December 31,2007 and December 31, 2008,
respectively, in which SNI is projected to have Tax liability in excess of $10,000, EWS agrees to
afford SNI a meaningful opportunity to review and comment on such returns, and shall consider such
comments in good faith. Any decisions with respect to the timing, filing, or content of the above
Tax Returns shall be made jointly by the Parties.

     (b) Elections. SNI and the appropriate members of the SNI Group or an SNI Combined Group shall
make or give their consent to such elections or other matters relating to the SNI Group or an SNI
Combined Group as the Parties determine are necessary or advisable in connection with the filing of
any such Tax Returns. In addition, no member of the SNI Group may elect to be considered as not
having been a member of the EWS Group for U.S. federal income Tax purposes and no member of an SNI
Combined Group may elect to be considered as not having been a member of a Total Combined Group for
U.S. state or local Tax purposes for any taxable year or portion thereof without the prior written
consent of EWS.

ARTICLE XI

POST AFFILIATION YEARS AND POST COMBINED YEARS

     SECTION 11.01. Returns. SNI shall not and shall not permit any of the SNI Affiliates
to (i) file or amend any Tax Return for the Post Affiliation Year or a Post Combined Year beginning
on the first day following the Distribution Date, in a manner that is inconsistent with the manner
in which EWS filed its Tax Returns in an Affiliation Year or a Combined Year or (ii) make any
election for any Post Affiliation Year or Post Combined Year if such election would have the effect
of binding or requiring

 - 25 - 

 

conformity by any member of the EWS Group or any Total Combined Group for any Affiliation Year or
Combined Year.

     SECTION 11.02. Actions or Transactions. SNI shall be obligated to inform and disclose
fully to EWS any actions taken or transactions undertaken in a Post Affiliation Year or a Post
Combined Year which can reasonably be expected to affect in any material way the Tax liability of
the EWS Group for any Affiliation Year or a Total Combined Group for any Combined Year.

     SECTION 11.03. Proposed Adjustments. SNI shall promptly notify EWS and keep EWS
apprised of any proposed Adjustments which arise out of an audit or examination of a
Post-Affiliation Year or Post-Combined Year Tax Return which could reasonably be expected to affect
in any material way the Tax liability for any Affiliation Year or Combined Years or which could
reasonably result in treatment of items that is inconsistent with the manner in which EWS filed its
Tax Returns for such years.

ARTICLE XII

BOOKS AND RECORDS

     SECTION 12.01. Retention Period. Without limiting any of the provisions of this
Agreement, each of the Parties agrees that it shall retain, until the expiration of the appropriate
statutes of limitations (including any extensions) plus ninety (90) days, copies of any Tax Returns
for any open periods during the Affiliation Years and Combined Return Years which might be subject
to Adjustment under this Agreement, supporting work schedules and other books, records or
information which may be relevant and that it will not destroy or otherwise dispose of such records
without first providing the other Party with a reasonable opportunity to review and copy the same.
Without limiting the foregoing, SNI shall cooperate with EWS in identifying such books, records or
information and so retain or provide to EWS such books, records or information as may be specified
by EWS in writing within 180 days after the Distribution Date. Any information obtained pursuant to
this Agreement, or any other information obtained by EWS or SNI relating to the Tax position of
either Party shall be kept confidential by the Parties hereto, except if otherwise required by a
Taxing authority.

     SECTION 12.02. Record Retention Policy. Without limiting the foregoing, each of the
Parties hereto agrees that it shall retain copies of any books and records in its possession as
required by any record retention agreement in effect from time to time, between EWS and the IRS or
any other Taxing authority.

     SECTION 12.03. Tax Attributes. SNI shall maintain and provide to EWS upon request
information which will enable EWS to determine, clarify or verify the adjusted book and Tax bases
of the SNI stock held by EWS, SNI’s assets, both tangible and intangible, including the stock of all
directly and indirectly owned subsidiaries of SNI which were members of the SNI Group or an SNI
Combined Group at any time during Affiliation Years or Combined Years (but not any taxable year
which does not affect an Affiliation Year or a Combined Year), and the adjusted book and Tax bases
of all assets, both tangible and intangible, of such subsidiaries. In addition, SNI shall maintain
and provide to EWS upon request all relevant information for the determination of earnings and
profits of any members of the SNI Group, in accordance with applicable provisions of the Code and
the Treasury Regulations thereunder.

     SECTION
12.04. Apportionment of Earnings and Profits and Tax Attributes. The Parties
shall determine the portion, if any, of any earnings and profits, tax attribute, overall foreign
loss, capitalized research and development expenditures or other consolidated, combined or unitary
attribute which shall be allocated or apportioned to the SNI Group under applicable law. SNI and
all members of the SNI Group shall prepare all Tax Returns in accordance with such written notice.
In the event of a subsequent Adjustment to such allocations and apportionments, EWS shall promptly
notify SNI in writing of such

 - 26 - 

 

Adjustment. For the absence of doubt, EWS shall not be liable to SNI or any member of the SNI Group
for any failure of any determination under this Section 12.03 to be accurate.

ARTICLE XII

COMPENSATION AND EMPLOYEE BENEFITS

     SECTION 13.01. General. Except as provided in Section 13.02, for U.S. federal,
applicable U.S. state and local income and other Tax purposes, all deductions in respect of
compensation and employee benefits, whether on or before or after the Distribution Date, shall be
allocated to EWS (or its appropriate subsidiary) or SNI (or its appropriate subsidiary) based on
the entity which, directly or indirectly, provides (or is obligated to provide) the cash or other
consideration to its employees, former employees or other service providers or any individual whose
rights are derived from such individual’s relationship with such employee, former employee or
service provider.

     SECTION 13.02. Stock-Based Awards. For U.S. federal, applicable U.S. state and local
income and other Tax purposes, all deductions in respect of Options, Restricted Shares and
Restricted Share Units, whether on or before or after the Distribution Date, shall be allocated as
follows:

     (a) Deductions in respect of Old EWS Options that are exercised on or before the Distribution
Date and Old EWS Restricted Shares that vest (or with respect to which a timely Section 83 (b)
election has been made) on or before the Distribution Date shall be allocated to EWS (and shall
accordingly not be taken into account in computing Adjusted Separate SNI Group Federal Tax
Liability).

     (b) Deductions in respect of New EWS Options, New EWS Restricted Shares, SNI Options and SNI
Restricted Shares that are held by EWS Participants and EWS Directors immediately after the
Distribution Date shall be allocated to EWS.

     (c) Deductions in respect of SNI Options, SNI Restricted Shares and SNI Restricted Share Units
that are held by SNI Participants and SNI Directors immediately after the Distribution Date shall
be allocated to SNI.

     (d) Deductions in respect of New EWS Options and SNI Options that are held by Joint EWS/SNI
Directors immediately after the Distribution Date as a result of Section 7.02(d)(iii)(A) of the
Employee Matters Agreement shall be allocated to EWS. Deductions in respect of SNI Options that are
held by Joint EWS/NI Directors immediately after the Distribution Date as a result of Section
7.02(d)(iii)(B) of the Employee Matters Agreement shall be allocated to SNI.

     SECTION 13.03. Reporting of Deductions. Unless otherwise required by law, EWS and SNI
shall for themselves and their appropriate subsidiaries compute their respective Tax liability and
file all applicable Tax Returns in accordance with the allocations under Sections 13.01 and 13.02
above. In the event that any deduction allocated under such Sections to one entity is subsequently
required by law to be reported by another entity for Tax purposes, EWS or SNI shall pay the entity
to which the deduction was allocated under such Sections such amounts as are necessary to put such
entity in the same position, on an after Tax basis, as it would have been if the allocation under
such Sections had been respected.

     SECTION 13.04. Employment Taxes and Tax Reporting.

     (a) To the extent that EWS, SNI or any of their subsidiaries is allocated a deduction
for Tax purposes under Sections 13.01 and 13.02 above or otherwise, then subject to any obligations
under the Employee Matters Agreement, the entity to which the deduction is allocated shall be
solely responsible

 - 27 - 

 

for satisfying any withholding and employment Tax liabilities and Tax reporting obligations in
respect of the compensation that corresponds to such deduction.

     (b) SNI shall notify EWS of any event after the Distribution date giving rise to income
to any EWS Participant in connection with any SNI Option or SNI Restricted Share by 12:00 PM of the
first business day after such event.

ARTICLE XIV

MISCELLANEOUS

     SECTION
14.01. Notices. All notices, requests, claims, demands and other
communications hereunder must be in writing and will be deemed to have been duly given only if
delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the
Parties at the following addresses or facsimile numbers:

     If to EWS or any member of the EWS Group, to:

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	with a copy to:
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	If to SNI or any member of the SNI Group, to:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	with a copy to:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

All such notices, requests and other communications will (i) if delivered personally to the address
as provided in this section, be deemed given upon delivery, (ii) if delivered by facsimile
transmission to the facsimile number as provided in this section, be deemed given upon receipt and
(iii) if delivered by mail in the manner described above to the address as provided in this
section, be deemed given upon receipt (in each case regardless of whether such notice, request or
other communication is received by any other Person to whom a copy of such notice, request or other
communication is to be delivered pursuant to this section). Any Party from time to time may change
its address, facsimile number or other information for the purpose of notices to that Party by
giving notice specifying such change to the other Party.

     SECTION
14.02. Complete Agreement; Representations.

 - 28 - 

 

     (a) This Agreement, together with any exhibits and schedules hereto, constitutes the entire
agreement between the Parties with respect to the subject matter hereof and shall supersede all
previous negotiations, commitments and writings with respect to such subject matter.

     (b) EWS represents on behalf of itself and each other member of the EWS Group and SNI
represents on behalf of itself and each other member of the SNI Group as follows:

          (i) each such Person has the requisite corporate or other power and authority and has
taken all corporate or other action necessary in order to execute, deliver and perform this
Agreement to which it is a Party and to consummate the transactions contemplated by this Agreement;
and

          (ii) this Agreement has been duly executed and delivered by such Person (if such Person
is a Party) and constitutes a valid and binding agreement of it enforceable in accordance with the
terms hereof (assuming the due execution and delivery thereof by the other Party) except as such
enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium and other laws affecting creditors’ rights generally and by general equitable
principles.

     SECTION
14.03. Amendment, Modification, or Waiver.

     (a) This Agreement may be amended, supplemented, modified or superseded only by a written
instrument signed by duly authorized signatories of the Parties.

     (b) Any term or condition of this Agreement may be waived at any time by the Party that is
entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a
written instrument duly executed by or on behalf of the Party waiving such term or condition. No
waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall
be deemed or construed as a waiver of the same or any other term or condition of this Agreement on
any future occasion. All remedies, either under this Agreement or by law or otherwise afforded,
will be cumulative and not alternative.

     SECTION
14.04. Severability. If any provision of this Agreement shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement.

     SECTION 14.05. No Double Recovery. No provision of this Agreement shall be construed
to provide an indemnity or other recovery for any costs, damages or other amounts for which the
injured Party has been fully compensated under any other provision of this Agreement or under any
other agreement or action at law or equity. Unless expressly required in this Agreement, a Party
shall not be required to exhaust all remedies available under other agreements or at law or equity
before recovering under the remedies provided in this Agreement.

     SECTION
14.06. Costs and Expenses.

     (a) EWS Services. EWS shall provide services in connection with this Agreement,
including but not limited to, those services relating to the preparation of returns and
determination of the Tax liability of SNI as described in this Agreement. SNI shall pay EWS
compensation or fees for such services with respect to 2007 Taxable Year and 2008 Taxable Year in
accordance with the allocation of corporate overhead for the 2007 Taxable Year and the period for
the 2008 Taxable Year prior to the Distribution, respectively.

 - 29 - 

 

     (b) Other Expenses. Except as expressly set forth in this Agreement, each Party shall
bear its own costs and expenses incurred pursuant to this Agreement, including, but not limited to,
reasonable attorneys’ fees, accountant fees and other related professional fees and disbursements.

     SECTION
14.07. No Assignment; Binding Effect; No Third-Party Beneficiaries.

     (a) Neither this Agreement nor any right, interest or obligation hereunder may be assigned by
either Party hereto without the prior written consent of the other Party hereto and any attempt to
do so will be void. Subject to the preceding sentence, this Agreement is binding upon, inures to
the benefit of and is enforceable by the Parties hereto and their respective successors and
assigns.

     (b) Except for provisions relating to Affiliates and the provisions of Article V relating to
Tax-Related Losses, the terms and provisions of this Agreement are intended solely for the benefit
of each Party hereto and their respective Affiliates, successors or permitted assigns, and it is
not the intention of the Parties to confer third-party beneficiary rights upon any other Person.

     (c) Notwithstanding anything herein to the contrary, unless the context indicates otherwise,
if an obligation is imposed on EWS or SNI hereunder it shall cause any Person that directly or
indirectly controls or is controlled by it to comply therewith to the extent reasonably necessary
to carry out such obligation. “Control” for these purposes shall have the same meaning as that set
forth under the definition of “Affiliate”.

     SECTION 14.08. Headings. The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions hereof.

     SECTION
14.09. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     SECTION 14.10. Governing Law. This Agreement and any dispute arising out of, in
connection with or relating to this Agreement shall be governed by and construed in accordance
with the Laws of the State of Ohio, without giving effect to the conflicts of laws principles
thereof.

     SECTION
14.11. Disputes.

     (a) Except
with respect to injunctive relief described below, any controversy or claim arising
out of or relating to this Agreement, or the breach thereof, shall attempt to be settled first, by
good faith efforts of the Parties to reach mutual agreement, and second, if mutual agreement is not
reached to resolve the dispute, by final, binding arbitration as set out below.

     (b) A Party that wishes to initiate the dispute resolution process shall send written notice
to the other Party, in accordance with Section 14.11, with a summary of the controversy and a
request to initiate these dispute resolution procedures. Each Party shall appoint a knowledgeable,
responsible representative who has the authority to settle the dispute, to meet and to negotiate in
good faith to resolve the dispute. The discussions shall be left to the discretion of the
representatives who may utilize other alternative dispute resolution procedures such as mediation
to assist in the negotiations. Discussions and correspondence among the representatives for
purposes of these negotiations (i) shall be treated as Information subject to the provisions of
Section 7.08 of the Separation Agreement developed for purposes of settlement, (ii) shall be exempt
from discovery and production and (iii) shall not be admissible in the arbitration described below
or in any lawsuit pursuant to Rule 408 of the Federal Rules of Evidence. Documents identified in or
provided with such communications that are not prepared for purposes of the

 - 30 - 

 

negotiations are not so exempted and may, if otherwise admissible, be admitted in evidence in the
arbitration or lawsuit. The Parties agree to pursue resolution under this subsection for a minimum
of 30 calendar days before requesting arbitration.

     (c) If the dispute is not resolved under the preceding subsection within 30 calendar days of
the initial written notice, either Party may demand arbitration by sending written notice to the
other Party. The Parties shall promptly submit the dispute to the American Arbitration Association
for resolution by a single neutral arbitrator acceptable to both Parties, as selected under the
rules of the American Arbitration Association. The dispute shall then be administered according to
the American Arbitration Association’s Commercial Arbitration Rules, with the following
modifications: (i) the arbitration shall be held in a location mutually acceptable to the Parties,
and, if the Parties do not agree, the location shall be Cincinnati, Ohio; (ii) the arbitrator shall
be licensed to practice law; (iii) the arbitrator shall conduct the arbitration as if it were a
bench trial and shall use, apply and enforce the Federal Rules of Evidence and Federal Rules of
Civil Procedure; (iv) except for breaches related to Information subject to Section 7.08 of the
Separation Agreement, the arbitrator shall have no power or authority to make any award that
provides for consequential, punitive or exemplary damages or extend the term hereof; (v) the
arbitrator shall control the scheduling so that the hearing is completed no later than 30 calendar
days after the date of the demand for arbitration; and (vi) the arbitrator’s decision shall be
given within five calendar days thereafter in summary form that states the award, without written
decision, which decision shall follow the plain meaning of this Agreement, and in the event of any
ambiguity, the intent of the Parties. Judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction over the Parties. Each Party to the dispute shall bear its
own expenses arising out of the arbitration, except that the Parties shall share the expenses of
the facilities to conduct the arbitration and the fees of the arbitrator equally.

     (d) The foregoing notwithstanding, each Party shall have the right to seek injunctive relief
in an applicable court of law or equity to preserve the status quo pending resolution of the
dispute and enforce any decision relating to the resolution of the dispute.

     (e) Notwithstanding anything in this Agreement to the contrary, the dispute resolution
provisions set forth in this Section 14.11 shall not be applicable to any disagreement between the
Parties relating to Distribution Taxes and any such dispute shall be settled in a court of law or
as otherwise agreed to by the Parties.

     IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the date first
above written.

	 	 	 	 	 
	 	 	THE E. W. SCRIPPS COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SCRIPPS NETWORKS INTERACTIVE, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 - 31 -EX-10.3

 

Exhibit 10.3

EMPLOYEE MATTERS AGREEMENT

by and between

THE E.W. SCRIPPS COMPANY

and

SCRIPPS NETWORKS INTERACTIVE, INC.

Dated as of                                         , 2008

 

 

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	SECTION 1.01.
	 	Definitions	 	 	1	 
	SECTION 1.02.
	 	General Interpretive Principles	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE II GENERAL PRINCIPLES	 	 	9	 
	SECTION 2.01.
	 	Assumption And Retention Of Liabilities; Related Assets	 	 	9	 
	SECTION 2.02.
	 	SNI Participation In EWS Benefit Plans	 	 	10	 
	SECTION 2.03.
	 	Comparable Compensation And Benefits	 	 	10	 
	SECTION 2.04.
	 	Service Recognition	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE III U.S. QUALIFIED DEFINED BENEFIT PLAN	 	 	12	 
	SECTION 3.01.
	 	Establishment of SNI Retirement Plan	 	 	12	 
	SECTION 3.02.
	 	SNI Participants	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IV U.S. QUALIFIED DEFINED CONTRIBUTION PLANS	 	 	15	 
	SECTION 4.01.
	 	The SNI 401(k) Plan	 	 	15	 
	SECTION 4.02.
	 	Contributions as of the Distribution Date	 	 	16	 
	 
	 	 Defined Contribution Plan Maintained
by the SNI Group Prior to the Distribution Date	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE V U.S. HEALTH AND WELFARE PLANS	 	 	16	 
	SECTION 5.01.
	 	Health And Welfare Plans Maintained by the SNI Group Prior to the Distribution Date	 	 	16	 
	SECTION 5.02.
	 	Health and Welfare Plans Maintained by EWS Prior to the Distribution Date	 	 	16	 
	SECTION 5.03.
	 	Reimbursement Account Plans	 	 	17	 
	SECTION 5.04.
	 	COBRA and HIPAA	 	 	18	 
	SECTION 5.05.
	 	Liabilities	 	 	18	 
	SECTION 5.06.
	 	Disposition of VEBA Assets	 	 	19	 
	SECTION 5.07.
	 	Time-Off Benefits	 	 	19	 
	SECTION 5.08.
	 	Disposition of Disability Plan Trust Assets	 	 	20	 
	SECTION 5.09.
	 	Health Savings Accounts	 	 	20	 
	SECTION 5.10.
	 	Severance Pay Plans	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE VI NONQUALIFIED RETIREMENT PLANS	 	 	20	 
	SECTION 6.01.
	 	Deferred Compensation Plans	 	 	20	 
	SECTION 6.02.
	 	Supplemental Executive Retirement Plan	 	 	21	 
	SECTION 6.03.
	 	Selected Officers Retirement Program	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VII LONG-TERM INCENTIVE AWARDS	 	 	21	 
	SECTION 7.01.
	 	Long-Term Incentive Awards	 	 	21	 
	SECTION 7.02.
	 	Treatment of Outstanding EWS Options	 	 	22	 

i

 

	 	 	 	 	 	 	 
	SECTION 7.03.
	 	Treatment of Outstanding EWS Restricted Shares	 	 	23	 
	SECTION 7.04.
	 	Treatment of Outstanding EWS Restricted Share Units	 	 	24	 
	SECTION 7.05.
	 	Treatment of EWS Phantom Stock Units	 	 	24	 
	SECTION 7.06.
	 	Cooperation	 	 	25	 
	SECTION 7.07.
	 	SEC Registration	 	 	25	 
	SECTION 7.08.
	 	Savings Clause	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE VIII ADDITIONAL COMPENSATION MATTERS	 	 	25	 
	SECTION 8.01.
	 	Incentive Awards	 	 	25	 
	SECTION 8.02.
	 	Change in Control Plan	 	 	26	 
	SECTION 8.03.
	 	Individual Arrangements	 	 	26	 
	SECTION 8.04.
	 	Employee Stock Purchase Plan	 	 	27	 
	SECTION 8.05.
	 	Director Programs	 	 	27	 
	SECTION 8.06.
	 	Sections 162(m)/409A	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE IX WORKERS’ COMPENSATION LIABILITIES	 	 	27	 
	SECTION 9.01.
	 	Pre-Distribution Date Claims	 	 	27	 
	SECTION 9.02.
	 	Post-Distribution Date Claims	 	 	28	 
	SECTION 9.03.
	 	General	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE X INDEMNIFICATION	 	 	28	 
	SECTION 10.01.
	 	Indemnification by SNI	 	 	28	 
	SECTION 10.02.
	 	Indemnification by EWS	 	 	28	 
	SECTION 10.03.
	 	Procedures for Indemnification of Third-Party Claims	 	 	28	 
	SECTION 10.04.
	 	Additional Matters	 	 	29	 
	SECTION 10.05.
	 	Contribution	 	 	30	 
	SECTION 10.06.
	 	Survival of Indemnities	 	 	30	 
	SECTION 10.07.
	 	Remedies Cumulative	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE XI GENERAL AND ADMINISTRATIVE	 	 	30	 
	SECTION 11.01.
	 	Sharing Of Information	 	 	30	 
	SECTION 11.02.
	 	Reasonable Efforts/Cooperation	 	 	31	 
	SECTION 11.03.
	 	Employer Rights	 	 	31	 
	SECTION 11.04.
	 	Non-Termination of Employment; No Third-Party Beneficiaries	 	 	31	 
	SECTION 11.05.
	 	Consent of Third Parties	 	 	31	 
	SECTION 11.06.
	 	Access to Employees	 	 	32	 
	SECTION 11.07.
	 	Beneficiary Designation/Release of Information/Right to Reimbursement	 	 	32	 
	SECTION 11.08.
	 	Not a Change in Control	 	 	32	 

ii

 

	 	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	32	 
	SECTION 12.01.
	 	Effect if Distribution Does Not Occur	 	 	32	 
	SECTION 12.02.
	 	Relationship of Parties	 	 	32	 
	SECTION 12.03.
	 	Affiliates	 	 	32	 
	SECTION 12.04.
	 	Notices	 	 	33	 
	SECTION 12.05.
	 	Entire Agreement	 	 	33	 
	SECTION 12.06.
	 	Waiver	 	 	34	 
	SECTION 12.07.
	 	Amendment	 	 	34	 
	SECTION 12.08.
	 	Governing Law	 	 	34	 
	SECTION 12.09.
	 	Submission to Jurisdiction; Waivers	 	 	34	 
	SECTION 12.10.
	 	Headings	 	 	34	 
	SECTION 12.11.
	 	Counterparts	 	 	34	 
	SECTION 12.12.
	 	No Assignment; Binding Effect	 	 	34	 
	SECTION 12.13.
	 	Severability	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE XIII DISPUTE RESOLUTION	 	 	35	 
	SECTION 13.01.
	 	General	 	 	35	 
	SECTION 13.02.
	 	Initiation	 	 	35	 
	SECTION 13.03.
	 	Arbitration Request	 	 	35	 
	SECTION 13.04.
	 	Injunctive Relief	 	 	36	 

iii

 

	 	 	 
	Exhibits
	Valuation Methodologies

	 	Exhibit A
	Form of Other Enrolled Actuary Agreement

	 	Exhibit A-1
	SNI Retained Welfare Plans

	 	Exhibit B
	EWS Welfare Plans

	 	Exhibit C
	EWS Retiree Medical Program

	 	Exhibit D

	 	 	 
	Schedules
	EWS Directors

	 	Schedule 1.01(a)
	EWS Subsidiaries

	 	Schedule 1.01(b)
	Joint EWS/SNI Directors

	 	Schedule 1.01(c)
	SNI Directors

	 	Schedule 1.01(d)
	SNI Subsidiaries

	 	Schedule 1.01(e)
	SNI Employment Agreements

	 	Schedule 8.03(b)

iv

 

EMPLOYEE MATTERS AGREEMENT

     THIS EMPLOYEE MATTERS AGREEMENT (the “Agreement”), dated as of ____________,
2008, by and between The E.W. Scripps Company, an Ohio corporation (“EWS”), and Scripps
Networks Interactive, Inc., an Ohio corporation and an indirect subsidiary of EWS (“SNI”,
and, together with EWS, each, a “Party” and collectively, the “Parties”).
Capitalized terms used in this Agreement (other than the formal names of the EWS Benefit Plans (as
defined below), the SNI Benefit Plans (as defined below) and other agreements) and not otherwise
defined, are defined as set forth in Section 1.01.

RECITALS

     WHEREAS, the Board of Directors of EWS has determined that it is in the best interests of EWS
to separate the SNI Business and the EWS Business into two independent public companies, on the
terms and subject to the conditions set forth in the Separation Agreement (as defined below), in
order to separate businesses with differing strategic directions, eliminate existing constraints
regarding capital allocation, concentrate management focus, allow more tailored management
incentives, and accommodate differing shareholder bases;

     WHEREAS, in order to effectuate the foregoing, EWS and SNI have entered into a Separation and
Distribution Agreement, dated as of ____________, 2008, as amended (the “Separation
Agreement”), pursuant to which and subject to the terms and conditions set forth therein, the
SNI Business shall be separated from the EWS Business, and all of the issued and outstanding Class
A Common Shares, par value $0.01 per share, of SNI and Common Voting Shares, par value $0.01 per
share, of SNI (collectively, the “SNI Common Shares”) beneficially owned by EWS shall be
distributed (the “Distribution”) on a pro rata basis to the holders of the issued and
outstanding Class A Common Shares, par value $0.01 per share, of EWS and Common Voting Shares, par
value $0.01 per share, of EWS (collectively, the “EWS Common Shares”); and

     WHEREAS, pursuant to the Separation Agreement, EWS and SNI have agreed to enter into this
Agreement for the purpose of allocating Assets, Liabilities and responsibilities with respect to
certain employee compensation and benefit plans, programs and arrangements, and certain employment
matters between and among them.

     NOW, THEREFORE, in consideration of the premises and of the respective agreements and
covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:

     “Action” means any claim, demand, complaint, charge, action, cause of action, suit,
countersuit, arbitration, litigation, inquiry, proceeding or investigation.

     “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; provided, however, that for purposes of this
Agreement, no member of either Group shall be deemed to be an Affiliate of any member of the other
Group.

 

 

     “Agreement” shall have the meaning ascribed thereto in the preamble to this Agreement,
including all the exhibits and schedules hereto, and all amendments made hereto from time to time.

     “Ancillary Agreements” has the same meaning as provided in the Separation Agreement.

     “Asset” means any right, property or asset, whether real, personal or mixed, tangible or
intangible, of any kind, nature and description, whether accrued, contingent or otherwise, and
wheresoever situated and whether or not carried or reflected, or required to be carried or
reflected, on the books of any Person.

     “Benefit Plan” means, with respect to an entity, each plan, program, arrangement, agreement or
commitment that is an employment, consulting, non-competition or deferred compensation agreement,
or an executive compensation, incentive bonus or other bonus, employee pension, profit-sharing,
savings, retirement, supplemental retirement, stock option, stock purchase, stock appreciation
rights, restricted stock, other equity-based compensation, severance pay, salary continuation,
life, health, hospitalization, sick leave, vacation pay, disability or accident insurance plan,
corporate-owned or key-man life insurance or other employee benefit plan, program, arrangement,
agreement or commitment, including any “employee benefit plan” (as defined in Section 3(3) of
ERISA), sponsored or maintained by such entity (or to which such entity contributes or is required
to contribute).

     “COBRA” means the continuation coverage requirements for “group health plans” under Title X of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code
Section 4980B and Sections 601 through 608 of ERISA, and any similar state group health plan
continuation Law, together with all regulations and proposed regulations promulgated thereunder.

     “Code” means the United States Internal Revenue Code of 1986, as amended.

     “Combined Company Share Value” means the closing price per share of EWS Common Shares trading
on a “regular way” basis as reported on the NYSE as of the NYSE trading day immediately preceding
the Distribution Date.

     “Control” means, as to any Person, the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities or other interests, by contract or otherwise. The term
“Controlled” shall have a correlative meaning.

     “Distribution” shall have the meaning ascribed thereto in the recitals to this Agreement, as
the same is further described in the Separation Agreement.

     “Distribution Date” means the date on which the Distribution shall be effected, such date to
be determined by, or under the authority of, the Board of Directors of EWS in its sole and absolute
discretion.

     “DOL” means the United States Department of Labor.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means with respect to any Person, each business or entity that is a member
of a “controlled group of corporations,” under “common control” or a member of an “affiliated
service group” with such Person within the meaning of Sections 414(b), (c) or (m) of the Code, or
required to be aggregated with such Person under Section 414(o) of the Code, or under “common
control” with such Person within the meaning of Section 4001(a)(14) of ERISA.

2

 

     “Estimated Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(ii) of this Agreement.

     “EWS” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “EWS Actuary” means Towers, Perrin, Forster & Crosby, Inc. (New York), or any other
independent actuary appointed by EWS.

     “EWS Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by EWS or
any of its Subsidiaries or Affiliates including the EWS Retirement Plan, the EWS RIP, the EWS
Reimbursement Account Plan, the EWS Deferred Compensation Plans, the EWS Retiree Medical Program
and the EWS Welfare Plans.

     “EWS Business” means all businesses and operations conducted by the EWS Group from time to
time, whether prior to, at or after the Distribution Date, other than the SNI Business.

     “EWS Committee” means the Compensation Committee of the Board of Directors of EWS, or
sub-committee thereof.

     “EWS Common Shares” shall have the meaning ascribed thereto in the recitals to this Agreement.

     “EWS Deferred Compensation Plans” means, collectively, the Scripps Executive Deferred
Compensation Plan and The E. W. Scripps 1997 Deferred Compensation and Stock Plan for Directors.

     “EWS Director” means those individuals listed on Schedule 1.01(a).

     “EWS Employee” means any individual who, immediately following the Distribution Date, will be
employed by EWS or any member of the EWS Group in a capacity considered by EWS to be common law
employment, including active employees and employees on vacation and approved leave of absence
(including maternity, paternity, family, sick, short-term or long-term disability leave, qualified
military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act and other approved leaves).

     “EWS Group” means, as of the Distribution Date, EWS and each of its Subsidiaries (or any
predecessor organization thereof), including those Subsidiaries set forth on Schedule 1.01(b), and
any corporation or entity that may become part of such Group from time to time thereafter. The EWS
Group shall not include any member of the SNI Group.

     “EWS Indemnified Parties” shall have the meaning ascribed thereto in Section 10.1 of this
Agreement.

     “EWS Liabilities” means all Liabilities assumed or retained by any member of the EWS Group
pursuant to this Agreement.

     “EWS Participant” means any individual who, immediately following the Distribution Date, is an
EWS Employee, a Former EWS Employee or a beneficiary, dependent or alternate payee of any of the
foregoing.

     “EWS Phantom Stock Unit” shall mean a unit credited under The E. W. Scripps 1997 Deferred
Compensation and Stock Plan for Directors representing a general unsecured promise by EWS or one of
its Subsidiaries or Affiliates to deliver EWS Common Shares or dividend equivalents, if applicable
(or the cash equivalent of either), at the time set forth in The E. W. Scripps 1997 Deferred
Compensation and Stock Plan for Directors.

3

 

     “EWS Post-Distribution Share Value” means the average of the volume weighted average of the
trading price per share of EWS Common Shares trading on a “regular way” basis as reported on the
NYSE for the ten full NYSE trading days immediately following the Distribution Date.

     “EWS Ratio” means the quotient obtained by dividing (i) the EWS Post-Distribution Share Value,
by (ii) the Combined Company Share Value.

     “EWS Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.03 of
this Agreement.

     “EWS Retained Claim” shall have the meaning ascribed thereto in Section 9.01 of this
Agreement.

     “EWS Retiree Medical Program” shall have the meaning ascribed thereto in Section 5.02(c)(i) of
this Agreement.

     “EWS Retirement Plan” means the Scripps Pension Plan (including the Scripps Group Pension
Plan).

     “EWS RIP” means the Scripps Retirement and Investment Plan, (including the Scripps Group
Retirement and Investment Plan With Match, and the Scripps Group Retirement and Investment Plan
Without Match).

     “EWS Service Plans” means, collectively, the EWS Retirement Plan, and the EWS RIP.

     “EWS Share Plans” means, collectively, The E. W. Scripps Company Amended and Restated 1997
Long-Term Incentive Plan, the 1994 Non-Employee Directors’ Stock Option Plan, The E. W. Scripps
1997 Deferred Compensation and Stock Plan for Directors, and any other stock option or stock
incentive compensation plan or arrangement maintained before the Distribution Date for employees,
officers, non-employee directors or other independent contractors of EWS or its Subsidiaries or
Affiliates, as amended (exclusive of the SNI Share Plan, The E. W. Scripps Company Employee Stock
Purchase Plan, and the Scripps Networks, Inc. Employee Stock Purchase Plan).

     “EWS Supplemental Executive Retirement Plan” means the Scripps Supplemental Executive
Retirement Plan.

     “EWS Welfare Plans” shall have the meaning ascribed thereto in Section 5.02(a) of this
Agreement.

     “Final Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(iv) of this Agreement.

     “Final Transfer Date” shall have the meaning ascribed thereto in Section 3.02(b)(v) of this
Agreement.

     “Former EWS Employee” means, (i) as of the Distribution Date, any former employee of EWS, SNI
or a Subsidiary or Affiliate of EWS or SNI, including retired, deferred vested, non-vested and
other inactive terminated individuals, now, or in the future, whose most recent active employment
with EWS or a Subsidiary or Affiliate was with a member of the EWS Group and (ii) after the
Distribution Date, any employee of a member of the EWS Group, whose employment with a member of the
EWS Group terminates after the Distribution Date for any reason. Any individual who is an employee
of any member of the SNI Group on the Distribution Date shall not be a “Former EWS Employee.”

4

 

     “Former SNI Employee” means, (i) as of the Distribution Date, any former employee of any
member of the SNI Group, including retired, deferred vested, non-vested and other inactive
terminated individuals, whose most recent active employment with EWS or a Subsidiary or Affiliate
was with a member of the SNI Group and such active employment has ended on or before the
Distribution Date and (ii) after the Distribution Date, any employee of a member of the SNI Group,
including retired, deferred vested, non-vested and other inactive terminated individuals, whose
employment with a member of the SNI Group terminates after the Distribution Date for any reason.

     “Governmental Authority” means any federal, state, local, foreign or international court,
government, department, commission, board, bureau, agency or official, or any other regulatory,
self-regulatory, administrative or governmental organization or authority, including the NYSE.

     “Group” means the EWS Group and/or the SNI Group, as the context requires.

     “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended.

     “HSA” shall have the meaning ascribed thereto in Section 5.09 of this Agreement.

     “Indemnified Parties” shall have the meaning ascribed thereto in Section 4.03 of this
Agreement.

     “Information” shall mean all information, whether in written, oral, electronic or other
tangible or intangible forms, stored in any medium, including non-public financial information,
studies, reports, records, books, accountants’ work papers, contracts, instruments, flow charts,
data, communications by or to attorneys, memos and other materials prepared by attorneys and
accountants or under their direction (including attorney work product) and other financial, legal,
employee or business information or data.

     “Initial Asset Transfer” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “Initial Transfer Amount” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “Initial Transfer Date” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “IRS” means the United States Internal Revenue Service.

     “Joint EWS/SNI Director” means those individuals listed on Schedule 1.01(c).

     “Law” means any applicable foreign, federal, national, state, provincial or local law
(including common law), statute, ordinance, rule, regulation, code or other requirement enacted,
promulgated, issued or entered into, or act taken, by a Governmental Authority.

     “Liabilities” means all debts, liabilities, obligations, responsibilities, response actions,
Losses, damages (whether compensatory, punitive, consequential, treble or other), fines, penalties
and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen
or unforeseen, on-or off-balance sheet, joint, several or individual, asserted or unasserted,
accrued or unaccrued, known or unknown, whenever arising, including those arising under or in
connection with any Law, or other pronouncements of Governmental Authorities constituting an
Action, order or consent decree of any Governmental Authority or any award of any arbitration
tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether
sought to be imposed by a Governmental Authority, private party, or a Party, whether based in
contract, tort, implied or express warranty, strict liability, criminal or civil statute, or
otherwise, and including any costs, expenses, interest, attorneys’ fees,

5

 

disbursements and expense of counsel, expert and consulting fees, fees of third party
administrators and costs related thereto or to the investigation or defense thereof.

     “Loss” means any claim, demand, complaint, damages (whether compensatory, punitive,
consequential, treble or other), fines, penalties, loss, liability, payment, cost or expense
arising out of, relating to or in connection with any Action.

     “Lost Participant” or “Lost Participants” means any individual who, as of the Distribution
Date, is a participant under the EWS Retirement Plan or the EWS RIP, whose accrued benefit (in the
case of the EWS Retirement Plan) or whose account balance (in the case of the EWS RIP) is not
transferred to the SNI 401(k) or the SNI Retirement Plan, and whose current address is unknown on
the Distribution Date.

     “NYSE” means the New York Stock Exchange, Inc.

     “Option,” (a) when immediately preceded by “Old EWS,” means an option to purchase EWS Common
Shares that is outstanding immediately prior to the Distribution Date pursuant to an EWS Share
Plan, (b) when immediately preceded by “New EWS,” means an option to purchase EWS Common Shares
that is outstanding following the Distribution Date pursuant to an EWS Share Plan (“New EWS
Options,” together with “Old EWS Options,” “EWS Options”) and (c) when immediately preceded by
“SNI,” means an option to purchase SNI Common Shares pursuant to the SNI Share Plan.

     “Participating Company” means EWS and any Person (other than an individual) participating in
an EWS Benefit Plan.

     “Parties” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “Person” means any natural person, corporation, general or limited partnership, limited
liability company or partnership, joint stock company, joint venture, association, trust, bank,
trust company, land trust, business trust or other organization, whether or not a legal entity, and
any Governmental Authority.

     “Pre-Transition Claim Period” shall have the meaning ascribed thereto in Section 5.05(b) of
this Agreement.

     “Pre-Transition Claims” shall have the meaning ascribed thereto in Section 5.05(b) of this
Agreement.

     “Record Date” shall have the meaning ascribed thereto in the Separation Agreement.

     “Restricted Shares,” (a) when immediately preceded by “Old EWS,” means EWS Common Shares that
are subject to forfeiture in the event that certain terms and conditions are not satisfied and that
are outstanding immediately prior to the Distribution Date pursuant to an EWS Share Plan, (b) when
immediately preceded by “New EWS,” means EWS Common Shares that are subject to forfeiture in the
event that certain terms and conditions are not satisfied and that are outstanding following the
Distribution Date pursuant to an EWS Share Plan (“New EWS Restricted Shares,” together with “Old
EWS Restricted Shares,” “EWS Restricted Shares”) and (c) when immediately preceded by “SNI,” means
SNI Common Shares that are subject to forfeiture in the event that certain terms and conditions are
not satisfied pursuant to the SNI Share Plan.

     “Restricted Share Units,” (a) when immediately preceded by “Old EWS,” means the general
unsecured promise by EWS or one of its Subsidiaries or Affiliates to deliver a certain number of
EWS Common Shares in the future that are outstanding prior to the Distribution Date pursuant to an
EWS Share Plan, and (b) when immediately preceded by “SNI,” means the general unsecured promise by
SNI

6

 

or one of its Subsidiaries or Affiliates to deliver a certain number of SNI Common Shares in
the future pursuant to the SNI Share Plan.

     “Revised Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(iv) hereof.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Separation Agreement” shall have the meaning ascribed thereto in the recitals to this
Agreement.

     “Service Crediting Date” shall have the meaning ascribed thereto in Section 2.04(b)(i) of this
Agreement.

     “SNI” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “SNI 401(k)” shall have the meaning ascribed thereto in Section 4.01(a) of this Agreement.

     “SNI Actuary” means Towers, Perrin, Forster & Crosby, Inc. (New York), or any other
independent actuary appointed by SNI.

     “SNI Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by any
member of the SNI Group including the SNI Retirement Plan, the SNI 401(k), the SNI Reimbursement
Account Plan, the SNI Deferred Compensation Plans, the SNI Retiree Medical Program, the SNI
Retained Welfare Plans, the SNI Retained Retirement Plans, and the SNI Welfare Plans.

     “SNI Business” means all businesses and operations conducted by the SNI Group from time to
time, whether prior to, at or after the Distribution Date, including the businesses and operations
conducted by the SNI Group as more fully described in the SNI Information Statement and excluding
the EWS Business.

     “SNI Common Shares” shall have the meaning ascribed thereto in the recitals to this Agreement.

     “SNI Deferred Compensation Plans” shall have the meaning given that term in Section 6.01.

     “SNI Director” means those individuals listed on Schedule 1.01(d).

     “SNI Employee” means any individual who, immediately following the Distribution Date, will be
employed by SNI or any member of the SNI Group in a capacity considered by SNI to be common law
employment, including active employees and employees on vacation and approved leave of absence
(including maternity, paternity, family, sick, short-term or long-term disability leave, qualified
military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act and other approved leaves).

     “SNI Group” means, as of the Distribution Date, SNI and each of its Subsidiaries, including
those Subsidiaries set forth on Schedule 1.01(e), and any corporation or entity that may become
part of such Group from time to time thereafter. The SNI Group shall not include any member of the
EWS Group.

     “SNI Indemnified Parties” shall have the meaning ascribed thereto in Section 10.2 of this
Agreement.

     “SNI Information Statement” means the definitive information statement distributed to holders
of EWS Common Shares in connection with the Distribution and filed with the SEC as Exhibit 99.1 to
the Registration Statement or as an exhibit to a Form 8-K of SNI.

7

 

     “SNI Liabilities” means all Liabilities assumed or retained by any member of the SNI Group
pursuant to this Agreement.

     “SNI Participant” means any individual who, immediately following the Distribution Date, is a
SNI Employee, a Former SNI Employee or a beneficiary, dependent or alternate payee of any of the
foregoing.

     “SNI Phantom Stock Unit” shall mean a unit credited under an SNI Deferred Compensation Plan
representing a general unsecured promise by SNI or one of its Subsidiaries or Affiliates to deliver
SNI Common Shares or dividend equivalents, if applicable (or the cash equivalent of either), at the
times set forth in the applicable SNI Deferred Compensation Plan.

     “SNI Plan Participants” shall have the meaning ascribed thereto in Section 3.01 of this
Agreement.

     “SNI Post-Distribution Share Value” means the average of the volume weighted average of the
trading price per share of SNI Common Shares trading on a “regular way” basis as reported on the
NYSE for the ten full NYSE trading days immediately following the Distribution Date.

     “SNI Ratio” means the quotient obtained by dividing (i) the SNI Post-Distribution Share Value,
by (ii) the Combined Company Share Value.

     “SNI Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.03 of
this Agreement.

     “SNI Retiree Medical Program” shall have the meaning ascribed thereto in Section 5.02(c)(ii)
of this Agreement.

     “SNI Retained Retirement Plan” shall have the meaning ascribed thereto in Section 4.03 of this
Agreement.

     “SNI Retained Welfare Plans” shall have the meaning ascribed thereto in Section 5.01 of this
Agreement.

     “SNI Retirement Plan” shall have the meaning ascribed thereto in Section 3.01 of this
Agreement.

     “SNI Service Plans” means, collectively, the SNI Retirement Plan and the SNI 401(k).

     “SNI Share Plan” means the Scripps Networks, Interactive 2008 Long-Term Incentive Plan.

     “SNI Supplemental Executive Retirement Plan” shall have the meaning given that term in Section
6.02.

     “SNI Welfare Plans” shall have the meaning ascribed thereto in Section 5.02(a) of this
Agreement.

     “Subsidiary” has the same meaning as provided in the Separation Agreement.

     “Third-Party Claim” shall have the meaning ascribed thereto in Section 10.03(a) of this
Agreement.

8

 

     “Transition Period” means, with respect to each EWS Benefit Plan in which any SNI Group member
is a Participating Company, the period of time beginning on the Distribution Date and ending on
December 31, 2008.

     “Transition Period End Date” means the last day of the Transition Period.

     “True-Up Amount” shall have the meaning ascribed thereto in Section 3.02(b)(v) of this
Agreement.

     “Unvested Old EWS Option” means an Old EWS Option held by a SNI Participant as of the
Distribution Date that is not a Vested Old EWS Option.

     “U.S.” means the United States of America.

     “Vested Old EWS Option” means an Old EWS Option held by a SNI Participant as of the
Distribution Date that is vested or exercisable in accordance with its terms (and with respect to
any EWS Employees, without regard to any provision that provides for accelerated vesting upon
retirement pursuant to the applicable retirement practices and policies of EWS).

     SECTION 1.02. General Interpretive Principles. Words in the singular shall include
the plural and vice versa, and words of one gender shall include the other gender, in each case, as
the context requires. The words “hereof,” “herein,” “hereunder,” and “herewith” and words of
similar import shall, unless otherwise stated, be construed to refer to this Agreement and not to
any particular provision of this Agreement, and references to Article, Section, paragraph, exhibit
and schedule are references to the Articles, Sections, paragraphs, exhibits and schedules to this
Agreement unless otherwise specified. The word “including” and words of similar import when used
in this Agreement shall mean “including, without limitation,” unless otherwise specified. Any
reference to any federal, state, local or non-U.S. statute or Law shall be deemed to also refer to
all rules and regulations promulgated thereunder, unless the context otherwise requires.

ARTICLE II

GENERAL PRINCIPLES

     SECTION 2.01. Assumption And Retention Of Liabilities; Related Assets.

          (a) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
EWS shall, or shall cause one or more members of the EWS Group to, assume or retain and EWS hereby
agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all
EWS Benefit Plans (provided, that as between EWS and SNI, SNI shall be responsible for certain of
those Liabilities pursuant to Section 2.01(b) of this Agreement), (ii) all Liabilities with respect
to the employment, retirement, service, termination of employment or termination of service of all
EWS Employees, Former EWS Employees, their dependents and beneficiaries and other service providers
(including any individual who is, or was, an independent contractor, temporary employee, temporary
service worker, consultant, freelancer, agency employee, leased employee, on-call worker,
incidental worker, or nonpayroll worker of any member of the EWS Group or in any other employment,
non-employment, or retainer arrangement or relationship with any member of the EWS Group), in each
case to the extent arising in connection with or as a result of employment with or the performance
of services for any member of the EWS Group, and (iii) any other Liabilities expressly assumed by
or retained by EWS or any of its Subsidiaries or Affiliates under this Agreement. For purposes of
clarification and the avoidance of doubt, (x) the Liabilities assumed or retained by the EWS Group
as provided for in this Section 2.01(a) are intended to be EWS Liabilities as such term is defined
in the Separation Agreement, and (y) the Parties intend that such Liabilities assumed or retained
by the EWS Group include the retirement benefits and health and welfare plan benefits under the EWS
Benefit Plans for all EWS

9

 

Employees, Former EWS Employees, their dependants, beneficiaries, alternate payees and
surviving spouses.

          (b) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
SNI shall, or shall cause one or more members of the SNI Group to, assume or retain for each EWS
Benefit Plan, and SNI hereby agrees to pay, perform, fulfill and discharge, in due course in full
(i) all Liabilities in respect of SNI Participants under all EWS Benefit Plans arising prior to and
during the Transition Period for each EWS Benefit Plan, (ii) all Liabilities under all SNI Benefit
Plans, (iii) all Liabilities with respect to the employment, service, retirement, termination of
employment or termination of service of all SNI Employees, Former SNI Employees, their dependents
and beneficiaries and other service providers (including any individual who is, or was, an
independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or nonpayroll worker of any
member of the SNI Group or in any other employment, non-employment, or retainer arrangement or
relationship with any member of the SNI Group), and (iv) any other Liabilities expressly assumed or
retained by SNI or any of its Subsidiaries or Affiliates under this Agreement. For purposes of
clarification and the avoidance of doubt, (x) the Liabilities assumed or retained by the SNI Group
as provided for in this Section 2.01(b) are intended to be SNI Liabilities as such term is defined
in the Separation Agreement, and (y) the Parties intend such Liabilities assumed or retained by the
SNI Group include retirement benefits and health and welfare plan benefits under the SNI Benefit
Plans for all SNI Employees, Former SNI Employees, their dependents, beneficiaries, alternate
payees and surviving spouses.

          (c) From time to time after the Distribution, SNI shall promptly reimburse EWS, upon EWS’
presentation of such substantiating documentation as SNI shall reasonably request, for the cost of
any Liabilities satisfied by EWS or its Subsidiaries or Affiliates that are, or that have been made
pursuant to this Agreement, the responsibility of SNI or any of its Subsidiaries or Affiliates.

          (d) From time to time after the Distribution, EWS shall promptly reimburse SNI, upon SNI’s
presentation of such substantiating documentation as EWS shall reasonably request, for the cost of
any Liabilities satisfied by SNI or its Subsidiaries or Affiliates that are, or that have been made
pursuant to this Agreement, the responsibility of EWS or any of its Subsidiaries or Affiliates.

     SECTION 2.02. SNI Participation In EWS Benefit Plans.

          (a) During the Transition Period. Except as otherwise expressly provided for in this
Agreement, and except for the EWS Benefit Plans described in Articles VI, VII, and VIII herein,
until the Transition Period End Date, SNI and each member of the SNI Group that presently
participates in a particular EWS Benefit Plan may continue to be a Participating Company in such
EWS Benefit Plan, and EWS and SNI shall take all necessary action to effectuate each such
continuation.

          (b) After the Transition Period. Except as otherwise expressly provided for in this
Agreement, effective as of the Transition Period End Date, SNI and each member of the SNI Group
shall cease to be a Participating Company in the corresponding EWS Benefit Plan, and EWS and SNI
shall take all necessary action to effectuate each such cessation.

     SECTION 2.03. Comparable Compensation And Benefits.

          (a) In General. With respect to a SNI Employee and with respect to each Benefit Plan,
for the period commencing on the Distribution Date and ending on the Transition Period End Date,
SNI (acting directly or through its Subsidiaries or Affiliates) intends to provide such SNI
Employees with compensation opportunities (including salary, wages, commissions and bonus
opportunities) and employee benefits that are substantially comparable, in the aggregate, to the
compensation opportunities

10

 

and employee benefits to which such SNI Employees were entitled to immediately prior to the
Distribution Date.

          (b) Amendment and Termination of SNI Benefit Plans. The terms of each SNI Benefit
Plan shall be reflected solely in the terms of written documents duly adopted by SNI, and SNI shall
retain the right to amend, modify or terminate any such plan effective as of any date on or after
the establishment of the SNI Benefit Plan, to the extent permitted by law.

     SECTION 2.04. Service Recognition.

          (a) Pre-Distribution Service Credit. SNI shall give each SNI Participant full credit
for purposes of eligibility, vesting, determination of level of benefits, and, to the extent
applicable, benefit accruals under any SNI Benefit Plan for such SNI Participant’s service with any
member of the EWS Group prior to the Distribution Date to the same extent such service was
recognized by the corresponding EWS Benefit Plans immediately prior to the Distribution Date;
provided, however, that such service shall not be recognized to the extent that
such recognition would result in the duplication of benefits.

          (b) Post-Distribution Reciprocal Service Crediting. Each of EWS and SNI (acting
directly or through their respective Subsidiaries or Affiliates) shall cause each of the EWS
Service Plans and the SNI Service Plans, respectively, to provide the following service crediting
rules effective as of the Distribution Date:

          (i) If an EWS Employee who participates in any of the EWS Service Plans becomes
employed by a member of the SNI Group on or after the Distribution Date, but on or before
the Transition Period End Date for any corresponding SNI Service Plans (the “Service
Crediting Date”) and such EWS Employee has been continuously employed by the EWS Group
through the date such EWS Employee commences active employment with a member of the SNI
Group, then such EWS Employee’s service with the EWS Group following the Distribution Date
shall be recognized for purposes of eligibility, vesting and level of benefits under the
corresponding SNI Service Plans, in each case to the same extent as such EWS Employee’s
service with the EWS Group was recognized under the corresponding EWS Service Plans.

          (ii) If an EWS Employee who participates in any of the EWS Service Plans becomes
employed by a member of the SNI Group either (A) on or after the date that the SNI Group
ceases to be an ERISA Affiliate with the EWS Group, or (B) without having been continuously
employed by the EWS Group from the Distribution Date through the date such EWS Employee
commences active employment with a member of the SNI Group, then the corresponding SNI
Service Plans will take into consideration such individual’s service with the EWS Group and
the SNI Group, in each case, prior to the Distribution Date, only to the extent required by
applicable Law.

          (iii) If a SNI Employee becomes employed by a member of the EWS Group prior to the
Service Crediting Date and such SNI Employee is continuously employed by the SNI Group from
the Distribution Date through the date such SNI Employee commences active employment with a
member of the EWS Group, then such SNI Employee’s service with the SNI Group following the
Distribution Date shall be recognized for purposes of eligibility, vesting and level of
benefits under the corresponding EWS Service Plans.

          (iv) If a SNI Employee who participates in any of the SNI Service Plans becomes
employed by a member of the EWS Group either (A) on or after the date that the SNI Group
ceases to be an ERISA Affiliate with the EWS Group, or (B) without having been continuously
employed by the SNI Group from the Distribution Date through the date such SNI Employee
commences active employment with a member of the EWS Group, then the

11

 

corresponding EWS Service Plans will take into consideration such individual’s service
with the EWS Group and the SNI Group, in each case, prior to the Distribution Date, only to
the extent required by applicable Law.

          (v) Notwithstanding anything in this Agreement to the contrary, for the one year period
commencing on the Distribution Date the EWS Service Plans and the SNI Service Plans shall
provide that no break in service occurs with respect to any EWS Employee or SNI Employee who
is hired or rehired by any member of the SNI Group or the EWS Group after the termination of
such EWS Employee’s or SNI Employee’s employment with either the EWS Group or the SNI Group
within such one year period.

          (vi) Notwithstanding anything in this Agreement to the contrary, the employment service
with the EWS Group or the SNI Group shall not be double counted or result in duplicative
benefits or service crediting under any EWS or SNI Service Plan.

ARTICLE III

U.S. QUALIFIED DEFINED BENEFIT PLAN

     SECTION 3.01. Establishment of SNI Retirement Plan. Effective as of the day
following the Transition Period End Date for the EWS Retirement Plan, SNI shall, or shall have
caused one or more members of the SNI Group to, establish a defined benefit pension plan and
related trust to provide retirement benefits to SNI Participants (including Former SNI Employees)
who on the Transition Period End Date were participants in, or entitled to present or future
benefits (whether or not vested) under, the EWS Retirement Plan (such defined benefit pension plan,
the “SNI Retirement Plan” and such SNI Participants, the “SNI Plan Participants”).
SNI shall be responsible for taking all necessary, reasonable, and appropriate action to establish,
maintain and administer the SNI Retirement Plan so that it is qualified under Section 401(a) of the
Code and that the related trust thereunder is exempt under Section 501(a) of the Code.
Notwithstanding the above, until the Transition Period End Date, all benefits payable to SNI Plan
Participants shall be paid from the EWS Retirement Plan. SNI (acting directly or through its
Subsidiaries or Affiliates) shall be responsible for any and all Liabilities (including Liability
for funding) accrued under the SNI Retirement Plan during the Transition Period.

     SECTION 3.02. SNI Participants.

          (a) Assumption of EWS Retirement Plan Liabilities. Effective as of the Initial
Transfer Date, SNI (acting directly or through its Subsidiaries or Affiliates) hereby agrees to
cause the SNI Retirement Plan to assume, and to fully perform, pay and discharge, all accrued
benefits under the EWS Retirement Plan relating to all SNI Plan Participants as of the Distribution
Date (inclusive of benefits paid by the EWS Retirement Plan to SNI Plan Participants following the
Distribution Date, but prior to the Initial Transfer Date in accordance with Section 3.01 above,
but excluding benefits attributable to Lost Participants).

          (b) Transfer of EWS Retirement Plan Assets.

          (i) The Parties intend that the portion of the EWS Retirement Plan covering SNI Plan
Participants (excluding forfeitures attributable to Lost Participants) shall be transferred
to the SNI Retirement Plan in accordance with Sections 401(a)(12) and 414(l) of the Code,
Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA. No later than 30 days
prior to the Transition Period End Date, EWS and SNI (acting directly or through their
respective Subsidiaries or Affiliates) shall, to the extent necessary, file an IRS Form
5310-A regarding the transfer of Assets and Liabilities from the EWS Retirement Plan to the
SNI Retirement Plan. EWS (acting directly or through its respective Subsidiaries or
Affiliates) shall, to the extent necessary, timely file one or more notices (PBGC Form 10
series) regarding the reportable event

12

 

or events (within the meaning of section 4043 of ERISA) occurring as a result of the
transactions contemplated by this Agreement and the Separation Agreement.

          (ii) As soon as reasonably practicable following the Distribution Date, EWS shall cause
the EWS Actuary to determine the estimated value, as of the Distribution Date, of the Assets
to be transferred to the SNI Retirement Plan in accordance with the assumptions and
valuation methodology set forth on Exhibit A attached hereto (the “Estimated Retirement
Plan Transfer Amount”).

          (iii) On or before the Transition Period End Date, EWS shall cause a transfer to the
SNI Retirement Plan of an amount of Assets, in the form of cash, securities or other
property or a combination thereof, from the trust under the EWS Retirement Plan, at least
sufficient to fund benefit payments reasonably projected to be required under the SNI
Retirement Plan prior to the Initial Transfer Date (the “Initial Asset Transfer”).
Within 180 days (or such later time as mutually agreed to by the Parties) following the
determination of the Estimated Retirement Plan Transfer Amount, EWS and SNI (each acting
directly or through their respective Subsidiaries or Affiliates) shall cooperate in good
faith to cause an initial transfer of Assets (the date of such transfer, the “Initial
Transfer Date”) from the EWS Retirement Plan to the SNI Retirement Plan in an amount not
less than 75% of the Estimated Retirement Plan Transfer Amount minus the Initial Asset
Transfer, adjusted to reflect earnings or losses during the period from the Distribution
Date to the Initial Transfer Date (such amount, the “Initial Transfer Amount”).
Such earnings or losses shall be determined based on the actual rate of return of the EWS
Retirement Plan for the period commencing on the Distribution Date and ending on the last
calendar day of the month ending immediately prior to the Initial Transfer Date. Earnings
or losses for the period from such last day of the month to the Initial Transfer Date shall
be based on a blended index of the benchmarks utilized by Russell Investment Group to
monitor and measure performance of the assets of the EWS Retirement Plan, in proportion to
the amounts actually invested as of the date that is as close as administratively
practicable to the Initial Transfer Date, but in no event more than five business days prior
to the Initial Transfer Date. EWS shall satisfy its obligation pursuant to this Section
3.02(b)(iii) by transferring Assets, in the form of cash, securities or other property or a
combination thereof, equal to the Initial Transfer Amount consisting of a pro rata
percentage rounded up or down to the nearest whole lot or distributable unit, of all
investments (to the extent practicable), under the EWS Retirement Plan.

          (iv) Within 180 days following the Initial Transfer Date, EWS shall cause the EWS
Actuary to provide SNI with a revised calculation of the value, as of the Distribution Date,
of the Assets to be transferred to the SNI Retirement Plan determined in accordance with the
assumptions and valuation methodology set forth on Exhibit A attached hereto (the
“Revised Retirement Plan Transfer Amount”). SNI may submit, at its sole cost and
expense, the Revised Retirement Plan Transfer Amount to the SNI Actuary for verification;
provided, that, such verification process and any calculation performed by
the SNI Actuary in connection therewith shall be performed solely on the basis of the
assumptions and valuation methodology set forth on Exhibit A attached hereto. Furthermore,
the EWS Actuary and SNI Actuary shall cooperate in good faith to ensure that any such
verification process is performed in a timely manner. In the event the SNI Actuary
determines that the value, as of the Distribution Date, of the Assets to be transferred to
the SNI Retirement Plan differs from the Revised Retirement Plan Transfer Amount, the SNI
Actuary and EWS Actuary shall use good faith efforts to reconcile any such difference. If
the SNI Actuary and the EWS Actuary fail to reconcile such difference and (A) the SNI
Actuary’s calculation is within 2% of the Revised Retirement Plan Transfer Amount, the
average of the Revised Retirement Plan Transfer Amount and the SNI Actuary’s calculation
shall be used; or (B) the difference between the SNI Actuary’s calculation and the Revised
Retirement Plan Transfer Amount exceeds 2%, the parties shall enter into a letter agreement
in substantially

13

 

the form provided in Exhibit A-1 under which the parties shall jointly designate
another independent actuary whose calculation of the value, as of the Distribution Date, of
the Assets to be transferred to the SNI Retirement Plan shall be final and binding;
provided, that, such calculation must be performed in accordance with the
assumptions and valuation methodology set forth on Exhibit A attached hereto; and,
provided, further, that such value shall be between the value determined by
the SNI Actuary and the Revised Retirement Plan Transfer Amount or equal to either such
value. EWS and SNI shall each pay one-half of the costs incurred in connection with the
retention of such other independent actuary. The final, verified value, as of the
Distribution Date, of the Assets to be transferred to the SNI Retirement Plan as determined
in accordance with this Section 3.02(b)(iv) shall be referred to herein as the “Final
Retirement Plan Transfer Amount.” EWS shall satisfy its obligation pursuant to this
Section 3.02(b)(iv) by transferring Assets, in the form of cash, securities or other
property or a combination thereof, equal to the Final Retirement Plan Transfer Amount
consisting of a pro rata percentage rounded up or down to the nearest whole lot or
distributable unit of all investments (to the extent practicable), under the EWS Retirement
Plan.

          (v) Within 45 days of the determination of the Final Retirement Plan Transfer Amount,
EWS shall cause the EWS Retirement Plan to transfer to the SNI Retirement Plan (the date of
such transfer, the “Final Transfer Date”) an amount, in the form of cash, securities
or other property or a combination thereof, equal to (A) the Final Retirement Plan Transfer
Amount minus (B) the sum of (1) the Initial Transfer Amount, (2) the Initial Asset Transfer,
and (3) the aggregate amount of payments made from the EWS Retirement Plan to SNI Plan
Participants in order to satisfy any benefit Liability with respect to such SNI Plan
Participants during the period commencing on the Distribution Date and ending on the date of
the Initial Asset Transfer (the “True-Up Amount”); provided, that,
the True-Up Amount shall be adjusted to reflect earnings or losses as described below; and
provided, further, that in the event the sum of clauses (1), (2) and (3)
above is greater than the Final Retirement Plan Transfer Amount (determined after the
adjustment to reflect earnings), EWS shall not be required to cause any such additional
transfer and instead SNI shall be required to cause a transfer of cash, securities or other
property or a combination thereof, from the SNI Retirement Plan to the EWS Retirement Plan
in amount equal to the amount by which the sum of clauses (1), (2) and (3) above exceeds the
Final Retirement Plan Transfer Amount (determined after the adjustment to reflect earnings).
The parties hereto acknowledge that the EWS Retirement Plan’s transfer of the True-Up
Amount to the SNI Retirement Plan shall be in full settlement and satisfaction of the
obligations of EWS and EWS Retirement Plan to transfer Assets to the SNI Retirement Plan
pursuant to this Section 3.02(b).

     The True-Up Amount shall be paid from the EWS Retirement Plan to the SNI Retirement Plan, in
the form of cash, securities or other property or a combination thereof, and adjusted to reflect
earnings or losses during the period from the Distribution Date to the Final Transfer Date. Such
earnings or losses shall be determined based on the actual rate of return of the EWS Retirement
Plan for the period commencing on the Distribution Date and ending on the last calendar day of the
month ending immediately prior to the Final Transfer Date. Earnings or losses for the period from
such last day of the month to the Final Transfer Date shall be based on a blended index of the
benchmarks utilized by Russell Investment Group to monitor and measure performance of the assets of
the EWS Retirement Plan, in proportion to the amounts actually invested as of the date that is as
close as administratively practicable to the Final Transfer Date, but in no event more than five
business days prior to the Final Transfer Date.

          (c) Continuation of Elections. As of the effective date of the SNI Retirement Plan,
SNI (acting directly or through its Subsidiaries or Affiliates) shall cause the SNI Retirement Plan
to recognize and maintain all existing elections, including beneficiary designations, payment form
elections

14

 

and rights of alternate payees under qualified domestic relations orders with respect to SNI
Plan Participants under the EWS Retirement Plan.

          (d) Terminated Non-Vested Employees. Notwithstanding anything herein to the contrary
and except for benefits attributable to Lost Participants described in Section 3.02(e), for a
period of at least one year from the Distribution Date, SNI shall cause the SNI Retirement Plan to
restore the accrued benefit of any individual who becomes employed by any member of the SNI Group
following the Distribution Date and whose employment with the EWS Group terminated on or before the
Distribution Date with no vested benefit under the EWS Retirement Plan; provided,
that, pursuant to EWS’ existing practices and policies, such individual would have been
entitled to restoration of such individual’s accrued benefit under the EWS Retirement Plan had such
individual been re-employed by a member of the EWS Group rather than by a member of the SNI Group.

          (e) Lost Participants. EWS hereby acknowledges and agrees that it shall cause the EWS
Retirement Plan to retain responsibility for, and fully perform, pay and discharge, all
Liabilities, when such Liabilities become due, relating to benefits attributable to any Lost
Participant in the EWS Retirement Plan as of the Distribution Date.

          (f) Returning Employees. The assets of the EWS Retirement Plan to fund the accrued
benefits of EWS Employees who become SNI Employees, and who leave the employ of the SNI Group and
become reemployed with the EWS Group prior to the Final Transfer Date, shall be subtracted from the
Final Retirement Plan Transfer Amount and remain assets of the trust for the EWS Retirement Plan;
provided, that EWS causes the EWS Retirement Plan to assume, and to fully perform, pay and
discharge, all accrued benefits under the SNI Retirement Plan relating to such SNI Plan
Participants as of the date of reemployment with the EWS Group.

ARTICLE IV

U.S. QUALIFIED DEFINED CONTRIBUTION PLANS

     SECTION 4.01. The SNI 401(k) Plan.

          (a) Establishment of the SNI 401(k). Effective as of the day following the Transition
Period End Date for the EWS RIP, SNI shall, or shall have caused one of its Subsidiaries or
Affiliates to, establish a defined contribution plan and trust for the benefit of SNI Participants
(the “SNI 401(k)”) who immediately prior to the day following such Transition Period End
Date were participants in, or entitled to, future benefits under the EWS RIP. SNI shall be
responsible for taking all necessary, reasonable and appropriate action to establish, maintain and
administer the SNI 401(k) so that it is qualified under Section 401(a) of the Code and that the
related trust thereunder is exempt under Section 501(a) of the Code. Notwithstanding the above,
until the Transition Period End Date, all benefits payable to SNI Participants shall be paid from
the EWS RIP. SNI (acting directly or through its Subsidiaries or Affiliates) shall be responsible
for any and all Liabilities (including Liability for funding) with respect to the SNI 401(k) and
with respect to benefits accrued during the Transition Period.

          (b) Transfer of EWS RIP Assets. As soon as reasonably practicable (but not later than
30 days) following the Transition Period End Date, EWS shall cause the accounts (including any
outstanding loan balances and forfeitures, but excluding forfeitures attributable to Lost
Participants) in the EWS RIP attributable to SNI Participants and all of the Assets in the EWS RIP
related thereto to be transferred in kind to the SNI 401(k), and SNI shall cause the SNI 401(k) to
accept such transfer of accounts and underlying Assets and, effective as of the date of such
transfer, to assume and to fully perform, pay and discharge, all Liabilities of the EWS RIP
relating to the accounts of SNI Participants (to the extent the Assets related to those accounts
are actually transferred from the EWS RIP to the SNI 401(k)) as of the day following such
Transition Period End Date. The transfer of Assets shall be

15

 

conducted in accordance with Sections 401(a)(12) and 414(l) of the Code, Treasury Regulation
Section 1.414(1)-1 and Section 208 of ERISA.

          (c) Continuation of Elections. As of the effective date of the SNI 401(k), SNI
(acting directly or through its Subsidiaries or Affiliates) shall cause the SNI 401(k) to recognize
and maintain all elections, including deferral and payment form elections, beneficiary
designations, and the rights of alternate payees under qualified domestic relations orders with
respect to SNI Participants under the EWS RIP for the remainder of the period or periods for which
such elections or designations are by their original terms applicable, to the extent such election
or designation is available under the SNI 401(k) Plan.

          (d) Form 5310-A. No later than 30 days prior to the Transition Period End Date, EWS
and SNI (each acting directly or through their respective Subsidiaries or Affiliates) shall, to the
extent necessary, file IRS Form 5310-A regarding the transfer of Assets and Liabilities from the
EWS RIP to the SNI 401(k) as discussed in this Article IV.

          (e) Lost Participants. EWS hereby acknowledges and agrees that it shall cause the EWS
RIP to retain responsibility for, and fully perform, pay and discharge, all Liabilities, when such
Liabilities become due, relating to benefits attributable to any Lost Participant in the EWS RIP as
of the Distribution Date.

     SECTION 4.02. Contributions as of the Distribution Date. All contributions payable
to the EWS RIP with respect to employee deferrals and matching contributions for SNI Participants
through the Distribution Date shall be paid by EWS to the EWS RIP prior to the date of the Asset
transfer described in Sections 4.01(b) above.

     SECTION 4.03. Defined Contribution Plan Maintained by the SNI Group Prior to the
Distribution Date. Following the Distribution Date, SNI (acting directly or through its
Subsidiaries or Affiliates) shall retain, and EWS shall have no obligation whatsoever with regard
to, all Liabilities under, or with respect to, the Shopzilla 401(k) Plan (the “SNI Retained
Retirement Plan”).

ARTICLE V

U.S. HEALTH AND WELFARE PLANS

     SECTION 5.01. Health And Welfare Plans Maintained by the SNI Group Prior to the
Distribution Date. Following the Distribution Date, SNI (acting directly or through its
Subsidiaries or Affiliates) shall retain, and EWS shall have no obligation whatsoever with regard
to, all Liabilities under, or with respect to, the health and welfare plans maintained by SNI or
any of its Subsidiaries or Affiliates that are listed on Exhibit B attached hereto (the “SNI
Retained Welfare Plans”).

     SECTION 5.02. Health and Welfare Plans Maintained by EWS Prior to the Distribution
Date.

          (a) Establishment of the SNI Welfare Plans. EWS or one or more of its Subsidiaries or
Affiliates maintain each of the health and welfare plans set forth on Exhibit C attached hereto
(the “EWS Welfare Plans”) for the benefit of eligible EWS Participants and SNI
Participants. Effective as of the day following the Transition Period End Date for the EWS Welfare
Plans, SNI shall, or shall cause one of its Subsidiaries or Affiliates, to adopt health and welfare
plans for the benefit of eligible SNI Participants (collectively, the “SNI Welfare Plans”).

          (b) Terms of Participation in SNI Welfare Plans. SNI (acting directly or through its
Subsidiaries or Affiliates) shall cause all SNI Welfare Plans to (i) waive all limitations as to
pre-existing conditions, exclusions, and service conditions with respect to participation and
coverage requirements applicable to SNI Participants, other than limitations that were in effect
with respect to SNI Participants

16

 

as of the Transition Period End Date, (ii) provide credit for any deductible, out-of-pocket
maximum, and co-payment incurred by SNI Participants under the EWS Welfare Plans in which they
participated immediately prior to the day following the Transition Period End Date, in satisfying
any applicable deductible or out-of-pocket requirements under any SNI Welfare Plans during the same
plan year in which such deductible, out-of-pocket maximums and co-payments were made, (iii) waive
any waiting period limitation or evidence of insurability requirement that would otherwise be
applicable to a SNI Participant following the Transition Period End Date to the extent such SNI
Participant had satisfied any similar limitation under the analogous EWS Welfare Plan, and (iv)
provide credit for all benefits paid to SNI Participants under the EWS Welfare Plans for purposes
of determining when such persons have reached their annual and lifetime maximums under the SNI
Welfare Plan. Notwithstanding the foregoing, in the event that any SNI Participant, Former SNI
Employee, or dependent thereof, is confined to a facility for treatment at the Transition Period
End Date, such persons nevertheless shall become covered under SNI Welfare Plans as of such date,
and shall cease being covered under EWS Welfare Plans as of such date.

          (c) Retiree Medical Eligibility.

          (i) EWS Retiree Medical Program. Notwithstanding anything herein to the
contrary, for so long as it maintains the EWS Retiree Medical Program described in Exhibit D
attached hereto (or any successor thereto), as it may be amended from time to time, provided
that SNI Participants shall be treated consistently with other similarly situated
participants in the event of any amendment and/or termination of the EWS Retirement Medical
Program (the “EWS Retiree Medical Program”), EWS shall cause the EWS Retiree Medical
Program to contain provisions regarding eligibility and service crediting that ensure that
SNI Participants who, as of the Distribution Date, were eligible to immediately commence
benefits under the EWS Retiree Medical Program under the cost of coverage provisions
applicable to retirees, remain eligible for benefits under the EWS Retiree Medical Program
after the Transition Period End Date.

          (ii) SNI Retiree Medical Program. Notwithstanding anything herein to the
contrary, for so long as it maintains a retiree medical program established pursuant to
Section 5.02(a) above (the “SNI Retiree Medical Program”), as may be amended from
time to time, SNI shall cause the SNI Retiree Medical Program to contain provisions
regarding eligibility and service crediting that ensure that EWS Participants who, as of the
Distribution Date, were eligible to immediately commence benefits under the EWS Retiree
Medical Program under the cost of coverage provisions applicable to retirees and SNI
Employees who become members of the EWS Group prior to the Transition Period End Date (or
such later date as mutually agreed to by the Parties) who, as of such transfer date were
eligible to immediately commence benefits under the SNI Retiree Medical Program, are
eligible for benefits under the SNI Retiree Medical Program as of the Transition Period End
Date. This Section 5.02(c)(ii) is not intended to create any obligation to provide benefits
to any retiree, but rather, is intended merely to credit service to the extent such an
obligation may exist.

     SECTION 5.03. Reimbursement Account Plans. Effective as of the day following the
Transition Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates) shall
establish a health and dependent care reimbursement account plan (the “SNI Reimbursement
Account Plan”) with features that are comparable to those contained in the health and dependent
care reimbursement account plan maintained by EWS for the benefit of SNI Participants immediately
prior to the Transition Period End Date (the “EWS Reimbursement Account Plan”). With
respect to SNI Participants, effective as of the Transition Period End Date, SNI (acting directly
or through its Subsidiaries or Affiliates) shall assume responsibility for administering all
reimbursement claims of SNI Participants with respect to calendar year 2009 under the SNI
Reimbursement Account Plan.

17

 

     SECTION 5.04. COBRA and HIPAA. Effective as of the day following the Transition
Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates) shall assume, or
shall have caused the SNI Welfare Plans to assume, responsibility for compliance with the health
care continuation coverage requirements of COBRA with respect to SNI Participants who, as of the
day prior to the Transition Period End Date were covered under an EWS Welfare Plan pursuant to
COBRA. As soon as administratively practicable after the Transition Period End Date, EWS shall
provide SNI (through hard copy, electronic format, or such other mechanism as is appropriate under
the circumstances), with a list of all qualified beneficiaries (as such term is defined under
COBRA) that relate to the SNI Group and relevant information pertaining to their coverage elections
and remaining COBRA time periods. EWS (acting directly or through its Subsidiaries or Affiliates)
shall be responsible for administering compliance with the certificate of creditable coverage
requirements of HIPAA applicable to the EWS Welfare Plans with respect to SNI Participants. The
Parties hereto agree that neither the Distribution Date, nor the Transition Period End Date, shall
constitute a COBRA qualifying event for any purposes of COBRA.

     SECTION 5.05. Liabilities.

          (a) Insured Benefits. With respect to employee welfare and fringe benefits that are
provided through the purchase of insurance, EWS shall cause the EWS Welfare Plans to fully perform,
pay and discharge all claims of SNI Participants that are incurred prior to the Transition Period
End Date for the EWS Welfare Plans, and SNI shall cause the SNI Welfare Plans to fully perform, pay
and discharge all claims of SNI Participants that are incurred after the Transition Period End
Date.

          (b) Self-Insured Benefits. With respect to employee welfare and fringe benefits that
are provided on a self-insured basis, except as otherwise provided herein, SNI (acting directly or
through its Subsidiaries or Affiliates) shall cause the SNI Welfare Plans to fully perform, pay and
discharge all claims of SNI Participants after the Transition Period End Date that are incurred
after such Transition Period End Date. Except as provided otherwise herein, from and after the
Distribution Date, through such Transition Period End Date, SNI shall reimburse EWS for all
self-insured benefit claims paid by the EWS Welfare Plans or EWS that were claims of SNI
Participants incurred on or after the Distribution Date, through such Transition Period End Date
(whether reported or unreported by such Transition Period End Date). EWS shall submit a monthly
written invoice to SNI detailing SNI’s Liability for such claims. Notwithstanding the above, after
the Transition Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates)
shall reimburse EWS for its proportionate share of the Liability, with respect to self-insured
benefits under the EWS Welfare Plans that were incurred prior to such Transition Period End Date
(whether reported or unreported by such Transition Period End Date), but submitted to, or paid by,
the EWS Welfare Plans or EWS during the period beginning on such Transition Period End Date and
ending on December 31, 2009 (the “Pre-Transition Claim Period”, and such claims, the
“Pre-Transition Claims”). SNI’s share of the Pre-Transition Claims shall be determined
separately on a monthly basis for each of the self-insured plan coverages. EWS shall submit a
monthly written invoice to SNI detailing SNI’s portion of the Pre-Transition Claims. Any SNI
Employee, SNI Participant, or Former SNI Employee who is on long term disability leave and
receiving long term disability benefits under the Scripps Managed Disability Plan, shall cease
being eligible for such benefits at the Distribution Date and instead become covered under SNI’s
long term disability plan at such time. Any SNI Participant, SNI Employee, or Former SNI Employee
who is on a short term disability leave at the Distribution Date, and who but for the transactions
contemplated under the Separation Agreement would have become eligible for long term disability
benefits under the Scripps Managed Disability Plan, will no longer be eligible for such benefits
but rather will become eligible for long term disability benefits under SNI’s long term disability
plan. In the event that SNI pays EWS or any other vendor or provider costs, expenses, or
reimbursements for medical expenses of an SNI Participant which were incurred prior to the
Distribution Date, EWS shall pay or reimburse SNI for such expenses upon SNI providing evidence of
such payment.

18

 

          (c) Retiree Medical. From and after the Transition Period End Date, SNI (acting
directly or through its Subsidiaries or Affiliates) shall cause the SNI Retiree Medical Program to
fully perform, pay and discharge all claims of SNI Participants under the SNI Retiree Medical
Program that are incurred on or after the Transition Period End Date. From and after the
Transition Period End Date, SNI shall reimburse EWS for all claims paid by the EWS Retiree Medical
Plan or EWS that were claims of SNI Participants incurred but not paid prior to such Transition
Period End Date. EWS shall submit a monthly written invoice to SNI detailing SNI’s Liability for
such claims. For purposes of this Section 5.05(c), and also for purposes of Section 2.01(b),
Liability for retiree medical shall be calculated as the excess of aggregate claims paid over
aggregate premiums collected in a particular month. If aggregate premiums collected in a
particular month exceed aggregate claims paid in such month, the excess shall be used and carried
forward as a credit to the succeeding month and used to offset SNI’s Liability in such succeeding
months.

          (d) Incurred Claim Definition. For purposes of this Section 5.05, a claim or
Liability is deemed to be incurred (A) with respect to medical, dental, vision and/or prescription
drug benefits, upon the rendering of health services or provision of supplies giving rise to such
claim or Liability; (B) with respect to life insurance, accidental death and dismemberment and
business travel accident insurance, upon the occurrence of the event giving rise to such claim or
Liability; (C) with respect to disability benefits, upon the date of an individual’s disability, as
determined by the disability benefit insurance carrier or claim administrator, giving rise to such
claim or Liability and (D) with respect to a period of continuous hospitalization (or any medical
or other service or supply performed or provided during the period of continuous hospitalization),
upon the date of admission to the hospital.

          (e) Treatment of Other Liabilities, Recoveries and Adjustments. For purposes of
applying the claim Liability provisions of paragraphs (b) and (c) above: (A) recoveries made by
the EWS Welfare Plans or EWS prior to the expiration of the Pre-Transition Claim Period with
respect to claims incurred prior to the Transition Period End Date, including
subrogation/reimbursement recoveries, claim adjustment recoveries and demutualization proceeds,
shall be taken into account as positive claim adjustments; and (B) other non-routine claim
Liabilities paid by the EWS Welfare Plans or EWS with respect to claims incurred prior to such
Transition Period End Date, including Medicare Secondary Payer Liability, shall be taken into
account as claim Liabilities.

          (f) Claim Experience. Notwithstanding the foregoing, SNI (acting directly or through
its Subsidiaries or Affiliates) shall use its commercially reasonable best efforts to ensure that
any claims experience under the EWS Welfare Plans attributable to SNI Participants is taken into
account when determining premium rates for the SNI Welfare Plans.

          (g) Audit Rights. SNI shall have the right, at its own expense, to audit, or to cause
an inspection body selected by SNI and composed of members with appropriate professional
qualifications to audit any invoices for the payment of self insured medical claims or retiree
medical claims, under Sections 5.05(b) and (c), respectively, in a commercially reasonable manner
during normal EWS business hours. EWS shall have identical rights with respect to any
reimbursements requested by SNI for pre-Distribution Date payments as described under Section
5.05(b) above.

     SECTION 5.06. Disposition of VEBA Assets. Following the Distribution Date, EWS and
SNI hereby agree to cooperate in good faith to ensure that EWS and its Subsidiaries and Affiliates
shall retain all Voluntary Employee Beneficiary Association Assets (of the Scripps Choice Plan) and
any related trusts, and in no event will any such Assets or such related trusts transfer to SNI or
one of its Subsidiaries or Affiliates.

     SECTION 5.07. Time-Off Benefits. SNI shall credit each SNI Participant with the
amount of accrued but unused vacation time, sick time and other time-off benefits as such SNI
Participant had with

19

 

the EWS Group as of the Distribution Date. Notwithstanding the above, SNI shall not be
required to credit any SNI Participant with any accrual to the extent that a benefit attributable
to such accrual is provided by the EWS Group.

     SECTION 5.08. Disposition of Disability Plan Trust Assets. Following the
Distribution Date, EWS and SNI hereby agree to cooperate in good faith to ensure that EWS and its
Subsidiaries and Affiliates shall divide the assets in the trust for the EWS Managed Disability
Plan and any related trusts. To divide the assets, EWS and SNI shall use the accounting for the
most recent year available to determine the relative expenses for such year for disability plan
payments for each of the EWS Group and the SNI Group and use such proportions to divide the assets
at the Transition Period End Date for the EWS Managed Disability Plan.

     SECTION 5.09. Health Savings Accounts. With respect to any contributions made to a
Health Savings Account (“HSA”) on behalf of SNI Employees between the Distribution Date and
the Transition Period End Date for an HSA account, SNI will reimburse EWS for any amounts
contributed by EWS to HSA accounts of such individuals. EWS will submit a monthly invoice to SNI
detailing SNI’s portion of the contributions. In the event that SNI sponsors health plans that
will permit SNI Participants to participate in an HSA after such Transition Period End Date, SNI
will make HSA contributions on behalf of SNI Participants, as necessary. Notwithstanding any of
the above, each HSA account is an individual account that is controlled by each individual account
holder. The Parties agree that an individual’s HSA account is not subject to ERISA, and neither
EWS nor SNI will administer any HSA account of an individual.

     SECTION 5.10. Severance Pay Plans. To the extent not otherwise addressed in this
Agreement, (i) EWS shall retain and assume any Liabilities for severance or termination pay under
any plan, program, policy, or practice, applicable to, or sponsored by, any member of the EWS
Group, covering any EWS Participant, as of the Distribution Date, and (ii) SNI shall retain and
assume any Liabilities for severance or termination pay under any program, policy, or practice
applicable to, or sponsored by any member of the SNI Group, covering any SNI Participant, as of the
Distribution Date.

ARTICLE VI

NONQUALIFIED RETIREMENT PLANS

     SECTION 6.01. Deferred Compensation Plans.

          (a) SNI Deferred Compensation Plan. Effective as of the Distribution Date, SNI shall,
or shall cause one of its Subsidiaries or Affiliates to, establish a non-qualified deferred
compensation plan or plans to benefit SNI Participants who have accrued, or were eligible to
accrue, benefits under the EWS Deferred Compensation Plans immediately prior to the Distribution
Date, the terms of which are substantially comparable, in the aggregate, to the terms of the EWS
Deferred Compensation Plans as in effect immediately prior to the Distribution Date (the “SNI
Deferred Compensation Plans”). Effective as of the Distribution Date, SNI hereby agrees to
cause the SNI Deferred Compensation Plans to assume, and to fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of the EWS Deferred Compensation Plans with respect
to all SNI Participants therein. SNI (acting directly or through its Affiliates) shall be
responsible for any and all Liabilities and other obligations with respect to the SNI Deferred
Compensation Plans.

          (b) Continuation of Elections. As of the Distribution Date, SNI (acting directly or
through a Subsidiary or Affiliate) shall cause the SNI Deferred Compensation Plans to recognize and
maintain all elections (including deferral, distribution and investment elections) and beneficiary
designations with respect to SNI Participants under the EWS Deferred Compensation Plans for the
remainder of the period or periods for which such elections or designations are by their original
terms

20

 

applicable, to the extent such election or designation is available under the SNI Deferred
Compensation Plans.

          (c) Treatment of Non-Employee Directors. For purposes of this Section 6.01, the term
SNI Participant shall be deemed to include each SNI Director and each Joint EWS/SNI Director (but
only with respect to one-half of his or her deferred compensation account).

     SECTION 6.02. Supplemental Executive Retirement Plan.

          (a) SNI Participation in EWS Supplemental Executive Retirement Plan. SNI Participants
who have accrued, or were eligible to accrue, benefits under the EWS Supplemental Executive
Retirement Plan immediately prior to the Distribution Date shall continue to accrue, or be eligible
to accrue, benefits under the EWS Supplemental Executive Retirement Plan for the Transition Period.
During the Transition Period, all benefits payable to SNI Participants under the EWS Supplemental
Executive Retirement Plan shall be paid by EWS. However, SNI (acting directly or through its
Subsidiaries or Affiliates) shall be responsible for any and all Liabilities and other obligations
with respect to SNI Participants under the EWS Supplemental Executive Retirement Plan during the
Transition Period, and shall reimburse EWS for all such amounts paid by it to SNI Participants
during the Transition Period.

          (b) Establishment of SNI Supplemental Executive Retirement Plan. Effective as of the
day immediately following the Transition Period End Date for the EWS Supplemental Executive
Retirement Plan, SNI shall, or shall cause one of its Subsidiaries or Affiliates to, establish a
defined benefit excess pension plan or plans to benefit SNI Participants who have accrued, or were
eligible to accrue, benefits under, the EWS Supplemental Executive Retirement Plan on the
Transition Period End Date for the EWS Supplemental Executive Retirement Plan, the terms of which
are substantially comparable, in the aggregate, to the terms of the EWS Supplemental Executive
Retirement Plan as in effect on the Transition Period End Date (the “SNI Supplemental Executive
Retirement Plan”). Effective as of the day immediately following the Transition Period End
Date for the EWS Supplemental Executive Retirement Plan, SNI hereby agrees to cause the SNI
Supplemental Executive Retirement Plan to assume, and fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of the EWS Supplemental Executive Retirement Plan
with respect to all SNI Participants therein. SNI (acting directly or through its Affiliates)
shall be responsible for any and all Liabilities and other obligations with respect to the SNI
Supplemental Executive Retirement Plan.

          (c) Continuation of Elections. Effective as of the day immediately following the
Transition Period End Date for the EWS Supplemental Executive Retirement Plan, SNI (acting directly
or through a Subsidiary or Affiliate) shall cause the SNI Supplemental Executive Retirement Plan to
recognize and maintain all distribution elections and beneficiary designations with respect to SNI
Participants under the EWS Supplemental Executive Retirement Plan for the remainder of the period
or periods for which such elections or designations are by their original terms applicable, to the
extent such election or designation is available under the SNI Supplemental Executive Retirement
Plan.

     SECTION 6.03. Selected Officers Retirement Program. Effective as of the Distribution
Date, EWS shall retain sponsorship of The E. W. Scripps Selected Officers Retirement Program and
shall retain responsibility for all Liabilities and fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of The E. W. Scripps Selected Officers Retirement
Program with respect to any individual.

ARTICLE VII

LONG-TERM INCENTIVE AWARDS

     SECTION 7.01. Long-Term Incentive Awards. The Parties shall use commercially
reasonable efforts to take all actions necessary or appropriate so each outstanding long-term
incentive award held by

21

 

EWS Participants and SNI Participants under the EWS Share Plans shall be adjusted as provided
in this Article VII.

     SECTION 7.02. Treatment of Outstanding EWS Options.

          (a) Unvested Old EWS Options Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each Unvested Old EWS Option
held by an EWS Participant as of the Distribution Date shall be converted to a New EWS Option;
provided, however, that from and after the Distribution Date (i) the number of EWS
Common Shares subject to such New EWS Option shall be equal to the quotient obtained by dividing
(x) the number of EWS Common Shares subject to the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the EWS Ratio, with fractional shares rounded down to the nearest
whole share; and (ii) the per share exercise price of such New EWS Option shall be equal to the
product obtained by multiplying (x) the per share exercise price of the corresponding Old EWS
Option immediately prior to the Distribution Date, by (y) the EWS Ratio, rounded up to the nearest
whole cent.

          (b) Vested Old EWS Options Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each Vested Old EWS Option
held by an EWS Participant as of the Distribution Date shall be shall be converted into both a SNI
Option and a New EWS Option; provided, however, that from and after the
Distribution Date (i) the number of SNI Common Shares subject to the SNI Option shall be equal to
the quotient obtained by dividing (x) 80% of the number of EWS Common Shares subject to the
corresponding Old EWS Option immediately prior to the Distribution Date, by (y) the SNI Ratio, with
fractional shares rounded down to the nearest whole share; (ii) the number of EWS Common Shares
subject to the New EWS Option shall be equal to the quotient obtained by dividing (x) 20% of the
number of EWS Common Shares subject to the corresponding Old EWS Option immediately prior to the
Distribution Date, by (y) the EWS Ratio, with fractional shares rounded down to the nearest whole
share; (iii) the per share exercise price of the SNI Option shall be equal to the product obtained
by multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately
prior to the Distribution Date, by (y) the SNI Ratio, rounded up to the nearest whole cent; and
(iv) the per share exercise price of such New EWS Option shall be equal to the product obtained by
multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the EWS Ratio, rounded up to the nearest whole cent.

          (c) Old EWS Options Held by SNI Participants. As determined by the EWS Committee in
its sole discretion pursuant to its authority under the applicable EWS Share Plan and subject to
the specific provisions of the governing award agreement, each Old EWS Option held by a SNI
Participant as of the Distribution Date shall be converted into an SNI Option; provided,
however, that from and after the Distribution Date (i) the number of SNI Common Shares
subject to the SNI Option shall be equal to the quotient obtained by dividing (x) the number of EWS
Common Shares subject to the corresponding Old EWS Option immediately prior to the Distribution
Date, by (y) the SNI Ratio, with fractional shares rounded down to the nearest whole share; (ii)
the per share exercise price of the SNI Option shall be equal to the product obtained by
multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the SNI Ratio, rounded up to the nearest whole cent.

          (d) Non-Employee Directors’ Stock Options. As determined by the EWS Committee in its
sole discretion pursuant to its authority under the applicable EWS Share Plan and subject to the
specific provisions of the governing award agreement, each Old EWS Option held by individuals who
are or were serving as non-employee directors of EWS shall be treated as follows:

22

 

               (i) Each Old EWS Option held by an EWS Director as of the Distribution Date shall be adjusted
as provided in Section 7.02(b).

               (ii) Each Old EWS Option held by a SNI Director as of the Distribution Date shall be converted
as provided in Section 7.02(c).

               (iii) Each Old EWS Option held by a Joint EWS/SNI Director as of the Distribution Date shall
be adjusted or converted as follows: (A) one-half of the Old EWS Option shall be adjusted as
provided in Section 7.02(b), and (B) one-half of the Old EWS Option shall be converted as provided
in Section 7.02(c).

          (e) Option Terms and Conditions. Except as provided above, the terms and conditions
applicable to the New EWS Options and the SNI Options shall be substantially similar to the terms
and conditions applicable to the corresponding Old EWS Option, including the terms and conditions
relating to vesting, the post-termination exercise period, and the applicable exercise and tax
withholding methods (as set forth in the applicable plan, award agreement or in the holder’s then
applicable employment agreement). The SNI Options shall be issued under and governed by the terms
of the SNI Share Plan. The SNI Share Plan shall provide that for purposes of the SNI Options held
by EWS Employees, continued service with the EWS Group from and after the Distribution Date shall
be deemed to constitute service with SNI.

          (f) Exercise of Options. Upon the exercise of a SNI Option, regardless of the holder
thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) SNI in
accordance with the terms of the SNI Option, and SNI shall be solely responsible for the issuance
of the SNI Common Shares, for ensuring the withholding of all applicable tax on behalf of the
employing entity of such holder, and for ensuring the remittance of such withholding taxes to the
employing entity of such holder. Upon the exercise of a New EWS Option, regardless of the holder
thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of EWS)
EWS in accordance with the terms of the New EWS Option, and EWS shall be solely responsible for the
issuance of EWS Common Shares, for ensuring the withholding of all applicable tax on behalf of the
employing entity of such holder and for ensuring the remittance of such withholding taxes to the
employing entity of such holder.

          (g) Waiting Period for Exercisability of Options. The EWS Options and SNI Options
shall not be exercisable during a period beginning on a date prior to the Distribution Date
determined by EWS in its sole discretion, and continuing until the EWS Ratio and the SNI Ratio are
determined after the Distribution, or such longer period as EWS determines1 is necessary
to implement the provisions of this Section.

     SECTION 7.03. Treatment of Outstanding EWS Restricted Shares.

          (a) Old EWS Restricted Shares Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each EWS Participant that
holds Old EWS Restricted Shares as of the Record Date that remain outstanding immediately prior to
the Distribution Date shall receive such number of SNI Restricted Shares as equals the number of
SNI Common Shares to which all other holders of EWS Common Shares shall be entitled to receive upon
the Distribution. Thereafter, the Old EWS Restricted Shares shall be treated as New EWS Restricted
Shares for purposes of this Agreement.

 

			
	1	 	Doesn’t EWS’s Committee lose its authority under the
SNI Share Plan on or shortly after the Distribution Date? In which case, the
blackout period of SNI options would be subject to the discretion of the SNI
Committee. EWS IS OF THE VIEW THAT SNI SHOULD AGREE TO BE BOUND BY THE
BLACKOUT PERIOD IMPOSED BY EWS. — THIS IS AN OPEN ISSUE SNI NEEDS TO RESPOND
TO.

23

 

          (b) Old EWS Restricted Shares held by SNI Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each SNI Participant that
holds Old EWS Restricted Shares as of the Record Date that remain outstanding immediately prior to
the Distribution Date shall receive such number of SNI Restricted Shares as equals the number of
SNI Common Shares to which all other holders of EWS Common Shares shall be entitled to receive upon
the Distribution. Thereafter, the Old EWS Restricted Shares shall be converted into New SNI
Restricted Shares; provided, however, that from and after the Distribution Date the
number of SNI Restricted Shares held by the participant as a result of the conversion shall equal
the product obtained by multiplying (i) the number of Old EWS Restricted Shares outstanding
immediately prior to the Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS
Ratio, by (y) the SNI Ratio, with fractional shares rounded down to the nearest whole share.

          (c) Restricted Shares Terms and Conditions. Except as provided above, the terms and
conditions applicable to each New EWS Restricted Share and SNI Restricted Share shall be
substantially similar to the terms and conditions applicable to the corresponding Old EWS
Restricted Share, including the restrictions and the terms and conditions relating to vesting and
methods of tax withholding (as set forth in the applicable plan, award agreement or in the holder’s
then applicable employment agreement). The SNI Restricted Shares shall be issued under and
governed by the terms of the SNI Share Plan. The SNI Share Plan shall provide that for purposes of
the SNI Restricted Shares held by EWS Employees, continued service with the EWS Group from and
after the Distribution Date shall be deemed to constitute service with SNI.

          (d) Settlement of Restricted Shares. Upon the vesting of the SNI Restricted Shares,
SNI shall be solely responsible for the settlement of all SNI Restricted Shares, regardless of the
holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on
behalf of the employing entity of such holder and for ensuring the remittance of such withholding
taxes to the employing entity of such holder. Upon the vesting of the EWS Restricted Shares, EWS
shall be solely responsible for the settlement of all EWS Restricted Shares, regardless of the
holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on
behalf of the employing entity of such holder and for ensuring the remittance of such withholding
taxes to the employing entity of such holder.

     SECTION 7.04. Treatment of Outstanding EWS Restricted Share Units.

          (a) Old EWS Restricted Share Units held by SNI Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each SNI Participant that
holds Old EWS Restricted Share Units as of the Distribution Date shall receive such number of SNI
Restricted Share Units as equals the number of SNI Common Shares to which the individual would be
entitled had the EWS Restricted Share Units represented actual EWS Common Shares as of the Record
Date. Thereafter, the Old EWS Restricted Share Units held as of the Distribution Date by SNI
Participants shall be converted into New SNI Restricted Share Units; provided,
however, that from and after the Distribution Date the number of SNI Restricted Share Units
held by the participant as a result of the conversion shall equal the product obtained by
multiplying (i) the number of Old EWS Restricted Share Units outstanding immediately prior to the
Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS Ratio, by (y) the SNI
Ratio.

          (b) Restricted Share Units Terms and Conditions. Except as provided above, the terms
and conditions applicable to each SNI Restricted Share Unit shall be substantially similar to the
terms and conditions applicable to the corresponding Old EWS Restricted Share Unit, including the
restrictions and the terms and conditions relating to vesting, payment and methods of tax
withholding (as

24

 

set forth in the applicable plan, award agreement or in the holder’s then applicable
employment agreement). The SNI Restricted Share Units shall be issued under and governed by the
terms of the SNI Share Plan.

     SECTION 7.05. Treatment of EWS Phantom Stock Units.

          (a) EWS Phantom Stock Units Held by EWS Directors. Each EWS Director that holds EWS
Phantom Stock Units as of the Distribution Date shall receive such number of SNI Phantom Stock
Units as equals the number of SNI Common Shares to which the individual would be entitled had the
EWS Phantom Stock Units represented actual EWS Common Shares as of the Record Date.

          (b) EWS Phantom Stock Units held by SNI Directors. Each SNI Director that holds EWS
Phantom Stock Units as of the Distribution Date shall receive such number of SNI Phantom Stock
Units as equals the number of SNI Common Shares to which the individual would be entitled had the
EWS Phantom Stock Units represented actual EWS Common Shares as of the Record Date. Thereafter,
the EWS Phantom Stock Units held by a SNI Director shall be converted into SNI Phantom Stock Units;
provided, however, that from and after the Distribution Date the number of SNI Phantom Stock Units
held by the individual as a result of the conversion shall equal the product obtained by
multiplying (i) the number of EWS Phantom Stock Units held by a SNI Director immediately prior to
the Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS Ratio, by (y) the SNI
Ratio.

          (c) EWS Phantom Stock Units held by Joint EWS/SNI Directors. The EWS Phantom Stock
Units held by a Joint EWS/SNI Director as of the Distribution Date shall be treated as follows: (i)
one-half of the EWS Phantom Stock Units shall be adjusted as provided in Section 7.05(a), and (ii)
one-half of the EWS Phantom Stock Units shall be converted as provided in Section 7.05(b).

          (d) Settlement of Units. The Phantom Stock Units shall be governed by and paid in
accordance with the terms of the applicable EWS Deferred Compensation Plan or SNI Deferred
Compensation Plan. Notwithstanding the foregoing and Section 6.01(b), any SNI Phantom Stock Units
credited under an EWS Deferred Compensation Plan on behalf of any individual shall be paid in cash
in lieu of SNI Common Shares (notwithstanding any distribution election to the contrary).

     SECTION 7.06. Cooperation. Each of the Parties shall establish an appropriate
administration system in order to handle in an orderly manner exercises of New EWS Options and SNI
Options and the settlement of EWS Restricted Shares, SNI Restricted Shares, EWS Restricted Share
Units, SNI Restricted Share Units, EWS Phantom Stock Units and the SNI Phantom Stock Units. Each of
the Parties will work together to unify and consolidate all indicative data and payroll and
employment information on regular timetables and make certain that each applicable entity’s data
and records in respect of such awards are correct and updated on a timely basis. The foregoing
shall include employment status and information required for tax withholding/remittance, compliance
with trading windows and compliance with the requirements of the Securities Exchange Act of 1934
and other applicable Laws.

     SECTION 7.07. SEC Registration. The Parties mutually agree to use commercially
reasonable efforts to maintain effective registration statements with the Securities and Exchange
Commission with respect to the long-term incentive awards described in this Article VII and the
employee stock purchase plans described in Section 8.04, to the extent any such registration
statement is required by applicable Law.

     SECTION 7.08. Savings Clause. The Parties hereby acknowledge that the provisions of
this Article VII are intended to achieve certain tax, legal and accounting objectives and, in the
event such objectives are not achieved, the Parties agree to negotiate in good faith regarding such
other actions that may be necessary or appropriate to achieve such objectives.

25

 

ARTICLE VIII

ADDITIONAL COMPENSATION MATTERS

     SECTION 8.01. Incentive Awards.

          (a) EWS Incentive Awards. Except as otherwise provided in Section 6.01, effective as
of the Distribution Date, EWS shall assume or retain, as applicable, responsibilities for all
Liabilities, and fully perform, pay and discharge, all Liabilities, when such Liabilities become
due, relating to any incentive awards established under The E. W. Scripps Company Executive Bonus
Plan (or the comparable non-executive annual incentive plan maintained by EWS) that any EWS
Participant or SNI Participant is eligible to receive with respect to any performance period that
ends on or before the Distribution Date and, effective as of the Distribution Date, SNI shall have
no obligations with respect to any such annual incentive awards. Moreover, EWS acknowledges and
agrees that, except as otherwise provided herein, it shall have full responsibility with respect to
any Liabilities and the payment or performance of any obligations arising out of or relating to any
incentive, commission or other similar compensatory arrangement previously provided by any member
of the EWS Group or SNI Group to any EWS Participant.

          (b) SNI Incentive Awards. SNI acknowledges and agrees that, except as otherwise
provided herein, it shall have full responsibility with respect to any Liabilities and the payment
or performance of any obligations arising out of or relating to any incentive, commission or other
similar compensatory arrangement previously provided by any member of the EWS Group or SNI Group to
any SNI Participant.

          (c) Establishment of SNI Annual Incentive Plan. Effective as of the Distribution
Date, SNI shall have adopted or cause to be adopted an annual incentive plan that shall permit the
issuance of annual incentive awards for performance periods commencing after the Distribution Date
on terms and conditions substantially comparable to those under The E. W. Scripps Company Executive
Bonus Plan as in effect on the Distribution Date, provided that the incentive opportunities and
performance criteria shall be established in the sole discretion of the SNI Board of Directors or
appropriate committee thereof. SNI shall have full responsibility with respect to any Liabilities
and the payment or performance of any obligations arising out of or relating to its annual
incentive plan.

     SECTION 8.02. Change in Control Plan.

          (a) Establishment of SNI Executive Change in Control Plan. Effective as of the
Distribution Date, SNI shall have adopted or cause to be adopted an Executive Change in Control
Plan that provides benefits substantially comparable to the benefits provided under the Scripps
Senior Executive Change in Control Plan, as in effect on February 1, 2008.

          (b) Participation. As of the Distribution Date, SNI Employees shall cease to be
eligible to participate in the Scripps Senior Executive Change in Control Plan and SNI shall cause
such employees to commence participation in the Scripps Networks Interactive, Inc. Executive Change
in Control Plan on terms and conditions substantially comparable to those under the Scripps Senior
Executive Change in Control Plan as in effect on February 1, 2008, provided that the termination
pay multiples shall be established in the sole discretion of the SNI Board of Directors or
appropriate committee thereof. SNI shall have no obligations with respect to the Scripps Senior
Executive Change in Control Plan, as it may be amended from time to time.

     SECTION 8.03. Individual Arrangements.

          (a) EWS Individual Arrangements. EWS acknowledges and agrees that, except as
otherwise provided herein, it shall have full responsibility with respect to any Liabilities and
the payment

26

 

or performance of any obligations arising out of or relating to any employment, consulting,
non-competition, retention or other compensatory arrangement previously provided by any member of
the EWS Group or SNI Group to any EWS Participant.

          (b) SNI Individual Arrangements. SNI acknowledges and agrees that, except as otherwise
provided herein, it shall have full responsibility with respect to any Liabilities and the payment
or performance of any obligations arising out of or relating to any employment, consulting,
non-competition, retention or other compensatory arrangement previously provided by any member of
the EWS Group or SNI Group to any SNI Participant. Moreover, effective immediately after the
Distribution Date, SNI shall, or shall cause one of its Subsidiaries or Affiliates to, enter into
an employment agreement with each of the SNI Employees listed on Schedule 8.03(b), which is
substantially comparable to the corresponding EWS employment agreement for each such SNI Employee.

          (c) Effect of the Separation on Severance. The Parties acknowledge and agree that the
transactions contemplated by the Separation Agreement will not constitute a termination of
employment of any SNI Participant for purposes of any policy, plan, program or agreement of EWS or
SNI or any member of the EWS Group or SNI Group that provides for the payment of severance,
separation pay, salary continuation or similar benefits in the event of a termination of
employment.

     SECTION 8.04. Employee Stock Purchase Plan. As of the Distribution Date, SNI
Employees shall cease to be eligible to participate in The E. W. Scripps Company Employee Stock
Purchase Plan. SNI has established the Scripps Networks, Inc. Employee Stock Purchase Plan, the
terms and conditions of which may be amended from time to time. The Scripps Networks, Inc. Employee
Stock Purchase Plan shall not be considered a “mirror” or a successor plan to The E. W. Scripps
Company Employee Stock Purchase Plan. Participation in the Scripps Networks, Inc. Employee Stock
Purchase Plan shall be subject to the terms and conditions of such plan and any new elections made
with respect to such plan. Participants’ elections and other terms of participation in The E. W.
Scripps Company Employee Stock Purchase Plan shall not be transferred or carried over to the
Scripps Networks, Inc. Employee Stock Purchase Plan. Notwithstanding the foregoing, as of the
Distribution Date the accounts of the SNI Employees under The E. W. Scripps Company Employee Stock
Purchase Plan shall be transferred to the Scripps Networks, Inc. Employee Stock Purchase Plan.

     SECTION 8.05. Director Programs. Except as otherwise provided in Section 6.01, EWS
shall retain responsibility for the payment of any fees payable in respect of service on the EWS
Board of Directors that are payable but not yet paid as of the Distribution Date, and SNI shall
have no responsibility for any such payments (to an individual who is a member of the SNI Board of
Directors as of the Distribution Date or otherwise).

     SECTION 8.06. Sections 162(m)/409A. Notwithstanding anything in this Agreement to
the contrary (including the treatment of supplemental and deferred compensation plans, outstanding
long-term incentive awards and annual incentive awards as described herein), the Parties agree to
negotiate in good faith regarding the need for any treatment different from that otherwise provided
herein to ensure that (i) a federal income Tax deduction for the payment of such supplemental or
deferred compensation or long-term incentive award, annual incentive award or other compensation is
not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or
deferred compensation or long-term incentive award, annual incentive award or other compensation
does not cause the imposition of a tax under Section 409A of the Code.

ARTICLE IX

WORKERS’ COMPENSATION LIABILITIES

     SECTION 9.01. Pre-Distribution Date Claims. SNI shall not assume or retain any
workers’ compensation Liability relating to, arising out of, or resulting from any claim by a SNI
Employee that

27

 

results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, while such SNI Employee was employed by any member of the EWS Group (such a
claim, an “EWS Retained Claim”). All workers’ compensation Liabilities relating to,
arising out of, or resulting from (i) any EWS Retained Claim or (ii) any claim by an EWS Employee
or Former EWS Employee that results from an accident, incident, or event occurring, or from an
occupational disease which becomes manifest before the Distribution Date shall be retained by EWS.

     SECTION 9.02. Post-Distribution Date Claims. All workers’ compensation Liabilities
relating to, arising out of, or resulting from any claim by a SNI Employee or Former SNI Employee
that result from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, on or after the Distribution Date shall be retained by SNI. All workers’
compensation Liabilities relating to, arising out of, or resulting from any claim by an EWS
Employee or Former EWS Employee that results from an accident, incident or event occurring, or from
an occupational disease which becomes manifest, on or after the Distribution Date shall be retained
by EWS.

     SECTION 9.03. General. For purposes of this Section 9.03, a compensable injury shall
be deemed to be sustained upon the occurrence of the event giving rise to eligibility for workers’
compensation benefits or an occupation disease becomes manifest, as the case may be. EWS and SNI
shall cooperate in good faith with respect to the notification to appropriate Governmental
Authorities of the Distribution and the issuance of new, or the transfer of existing, workers’
compensation insurance policies and claims handling contracts.

ARTICLE X

INDEMNIFICATION

     SECTION 10.01. Indemnification by SNI. SNI shall indemnify, defend, release and hold
harmless EWS, each member of the EWS Group and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the “EWS Indemnified Parties”), from and against any and all Liabilities of
the EWS Indemnified Parties relating to, arising out of or resulting from (i) any breach by SNI or
any member of the SNI Group of this Agreement or (ii) any SNI Liabilities.

     SECTION 10.02. Indemnification by EWS. EWS shall indemnify, defend, release and hold
harmless SNI, each member of the SNI Group and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the “SNI Indemnified Parties,” and, together with EWS Indemnified Parties,
the “Indemnified Parties”), from and against any and all Liabilities of the SNI Indemnified
Parties relating to, arising out of or resulting from any (i) breach by EWS or any member of the
EWS Group of this Agreement or (ii) any EWS Liabilities.

     SECTION 10.03. Procedures for Indemnification of Third-Party Claims.

          (a) If an Indemnified Party shall receive notice of the assertion by any Person who is not a
member of the EWS Group or the SNI Group of any claim, or of the commencement by any such Person of
any Action, with respect to which an Indemnifying Party may be obligated to provide indemnification
to such Indemnified Party pursuant to Section 10.01 or Section 10.02, or any other Section of this
Agreement or any Ancillary Agreement (collectively, a “Third-Party Claim”), such
Indemnified Party shall give such Indemnifying Party written notice thereof within 30 days after
such Indemnified Party received notice of such Third-Party Claim. Any such notice shall describe
the Third-Party Claim in reasonable detail, including, if known, the amount of the Liability for
which indemnification may be available. Notwithstanding the foregoing, the failure of any
Indemnified Party or other Person to give notice as provided in this Section 10.03(a) shall not
relieve the related Indemnifying

28

 

Party of its obligations under this Article X, except to the extent that such Indemnifying
Party is actually prejudiced by such failure to give notice.

          (b) An Indemnifying Party may elect (but is not required) to assume the defense of and defend,
at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any
Third-Party Claim. Within 30 days after the receipt of notice from an Indemnified Party in
accordance with Section 10.03(a) (or sooner, if the nature of such Third-Party Claim so requires),
the Indemnifying Party shall notify the Indemnified Party of its election whether the Indemnifying
Party will assume responsibility for defending such Third-Party Claim, which election shall specify
any reservations or exceptions. If, in such notice, the Indemnifying Party elects to assume the
defense of a Third-Party Claim, the Indemnified Party shall have the right to employ separate
counsel and to participate in (but not control) the defense, compromise, or settlement thereof, but
the fees and expenses of such counsel shall be the expense solely of such Indemnified Party.

          (c) If an Indemnifying Party elects not to assume responsibility for defending a Third-Party
Claim, or fails to notify an Indemnified Party of its election as provided in Section 10.03(b),
such Indemnified Party may defend such Third-Party Claim at the cost and expense of the
Indemnifying Party; provided, that in the event of any such failure to notify, the
Indemnifying Party may thereafter assume the defense of such Third-Party Claim upon notice to the
Indemnified Party (but the cost and expense of such Indemnified Party in defending such Third-Party
Claim incurred from the last day of the notice period under Section 10.03(b) until such date as the
Indemnifying Party shall assume the defense of such Third-Party Claim shall be paid by the
Indemnifying Party).

          (d) Unless the Indemnifying Party has failed to assume the defense of the Third-Party Claim in
accordance with the terms of this Agreement, no Indemnified Party may settle or compromise any
Third-Party Claim without the consent of the Indemnifying Party.

          (e) The Indemnifying Party shall have the right to compromise or settle a Third-Party Claim
the defense of which it shall have assumed pursuant to Section 10.03(b) or Section 10.03(c) and any
such settlement or compromise made or caused to be made of a Third-Party Claim in accordance with
this Article X shall be binding on the Indemnified Party, in the same manner as if a final judgment
or decree had been entered by a court of competent jurisdiction in the amount of such settlement or
compromise. Notwithstanding the foregoing sentence, the Indemnifying Party shall not have the
right to admit culpability on behalf of the Indemnified Party and shall not compromise or settle a
Third-Party Claim unless the compromise or settlement includes, as a part thereof, an unconditional
release of the Indemnified Party from Liability with respect to such Third-Party Claim and does not
require the Indemnified Party to make any payment that is not fully indemnified under this
Agreement or to be subject to any non-monetary remedy, in each case without the express prior
consent of the Indemnified Party (not to be unreasonably withheld or delayed).

     SECTION 10.04. Additional Matters.

          (a) Any claim with respect to a Liability that does not result from a Third-Party Claim shall
be asserted by written notice given by the Indemnified Party to the related Indemnifying Party.
Such Indemnifying Party shall have a period of 30 days after the receipt of such notice within
which to respond thereto. If such Indemnifying Party does not respond in writing within such
30-day period, such Indemnifying Party shall be deemed to have agreed to accept responsibility to
make payment. If such Indemnifying Party does not respond within such 30-day period or rejects
such claim in whole or in part, such Indemnified Party shall be free to pursue such remedies as may
be available to such Party as contemplated by this Agreement.

          (b) In the event of payment by or on behalf of any Indemnifying Party to any Indemnified Party
in connection with any Third-Party Claim, such Indemnifying Party shall be

29

 

subrogated to and shall stand in the place of such Indemnified Party as to any events or
circumstances in respect of which such Indemnified Party may have any right, defense or claim
relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party
Claim or against any other Person. Such Indemnified Party shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

          (c) In the event of an Action in which the Indemnifying Party is not a named defendant, if
either the Indemnified Party or Indemnifying Party shall so request, the Parties shall endeavor to
substitute the Indemnifying Party for the named defendant, if at all practicable. If such
substitution or addition cannot be achieved for any reason or is not requested, the named defendant
shall allow the Indemnifying Party to manage the Action as set forth in this Article X.

     SECTION 10.05. Contribution. In the event that the foregoing indemnity is
unenforceable under applicable laws, the Party from whom such indemnity is sought agrees to
contribute, in accordance with this Section 10.05, to cover any Liabilities for which such
indemnity is sought. For such Liabilities referred to in Section 10.01 or Section 10.02, as the
case may be, the Party from which indemnity is sought shall contribute in such proportion as is
appropriate to reflect the relative benefits received (or anticipated to be received) by the
respective Parties. For any other Liabilities, and if the allocation provided by the immediately
preceding sentence is unavailable for any reason, the Party from which indemnity is sought shall
contribute in such proportion as is appropriate to reflect not only such relative benefit but also
the relative fault of the Party from which indemnity is sought in connection with the conduct which
resulted in such Liabilities, as well as any other relevant equitable considerations. The Parties
agree that it would not be just and equitable if contribution were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to above.

     SECTION 10.06. Survival of Indemnities. The rights and obligations of each of EWS
and SNI and their respective Indemnified Parties under this Article X shall survive the sale or
other transfer by any Party of any Assets or the assignment by it of any Liabilities.

     SECTION 10.07. Remedies Cumulative. The remedies provided in this Article X shall be
cumulative and shall not preclude assertion by any Indemnified Party of any other rights or the
seeking of any and all other remedies against any Indemnifying Party; provided, that the
procedures set forth in this Article X shall be the exclusive procedures governing any indemnity
action brought under this Agreement.

ARTICLE XI

GENERAL AND ADMINISTRATIVE

     SECTION 11.01. Sharing Of Information. EWS and SNI (acting directly or through their
respective Subsidiaries or Affiliates) shall provide to the other and their respective agents and
vendors all Information as the other may reasonably request to enable the requesting Party to
administer efficiently and accurately each of its Benefit Plans, to assist SNI in obtaining its own
insurance policies to provide benefits under SNI Benefit Plans, and to determine the scope of, as
well as fulfill, its obligations under this Agreement; provided, however, that in the event that
any Party reasonably determines that any such provision of Information could be commercially
detrimental to such Party or any member of its Group, violate any Law or agreement to which such
Party or member of its Group is a party, or waive any attorney-client privilege applicable to such
Party or member of its Group, the Parties shall provide any such Information and the Parties shall
take all reasonable measures to comply with the obligations pursuant to this Section 11.01 in a
manner that mitigates any such harm or consequence to the extent practicable, and the Parties agree
to cooperate with each other and take such commercially reasonable

30

 

steps as may be practicable to preserve the attorney-client privilege with respect to the
disclosure of any such Information. Such Information shall, to the extent reasonably practicable,
be provided in the format and at the times and places requested, but in no event shall the Party
providing such Information be obligated to incur any out-of-pocket expenses not reimbursed by the
Party making such request or make such Information available outside of its normal business hours
and premises. Any Information shared or exchanged pursuant to this Agreement shall be subject to
the same confidentiality requirements set forth in Section 7.08 of the Separation Agreement. The
Parties also hereby agree to enter into any business associate agreements that may be required for
the sharing of any Information pursuant to this Agreement to comply with the requirements of HIPAA.

     SECTION 11.02. Reasonable Efforts/Cooperation. Each of the Parties hereto will use
its commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable under applicable Laws and
regulations to consummate the transactions contemplated by this Agreement, including adopting plans
or plan amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the
transactions contemplated by this Agreement for which the other Party seeks a determination letter
or private letter ruling from the IRS, an advisory opinion from the DOL or any other filing,
consent or approval with respect to or by a Governmental Authority.

     SECTION 11.03. Employer Rights. Subject to SNI’s obligations pursuant to Section
2.03 of this Agreement, nothing in this Agreement shall prohibit SNI or any of its Subsidiaries or
Affiliates from amending, modifying or terminating any SNI Benefit Plan at any time within its sole
discretion. In addition, nothing in this Agreement shall prohibit EWS or any of its Subsidiaries
or Affiliates from amending, modifying or terminating any EWS Benefit Plan at any time within its
sole discretion.

     SECTION 11.04.Non-Termination of Employment; No Third-Party Beneficiaries. No
provision of this Agreement or the Separation Agreement shall be construed to create any right, or
accelerate entitlement, to any compensation or benefit whatsoever on the part of any EWS Employee
or SNI Employee or other future, present, or former employee of any member of the EWS Group or SNI
Group under any EWS Benefit Plan or SNI Benefit Plan or otherwise. Without limiting the generality
of the foregoing, except as expressly provided in this Agreement, the occurrence of the
Distribution alone shall not cause any employee to be deemed to have incurred a termination of
employment that entitles such individual to the commencement of benefits under any of the EWS
Benefit Plans. Furthermore, this Agreement is solely for the benefit of the Parties hereto and
their respective successors and permitted assigns. Nothing in this Agreement, express or implied,
is intended to or shall confer upon any other person or persons (including any employee or former
employee of EWS or SNI or either of their respective Subsidiaries or Affiliates or any beneficiary
or dependent thereof) any rights, benefits or remedies of any nature whatsoever under or by reason
of this Agreement. No provision in this Agreement shall modify or amend any other agreement, plan,
program, or document unless this Agreement explicitly states that the provision “amends” that other
agreement, plan, program, or document. This shall not prevent the Parties entitled to enforce this
Agreement from enforcing any provision in this Agreement, but no other person shall be entitled to
enforce any provision in this Agreement on the grounds that it is an amendment to another
agreement, plan, program, or document unless the provision is explicitly designated as such in this
Agreement, and the person is otherwise entitled to enforce the other agreement, plan, program, or
document. If a person not entitled to enforce this Agreement brings a lawsuit or other action to
enforce any provision in this Agreement as an amendment to another agreement, plan, program, or
document, and that provision is construed to be such an amendment despite not being explicitly
designated as one in this Agreement, that provision in this Agreement shall be void ad initio,
thereby precluding it from having any amendatory effect. Furthermore, nothing in this Agreement is
intended to confer upon any employee or former employee of EWS, SNI or either of their respective
Subsidiaries or Affiliates any right to continued employment, or any recall or similar rights to an
individual on layoff or any type of approved leave.

31

 

     SECTION 11.05. Consent of Third Parties. If any provision of this Agreement is
dependent on the consent of any third party and such consent is withheld, the Parties hereto shall
use their reasonable best efforts to implement the applicable provisions of this Agreement to the
fullest extent practicable. If any provision of this Agreement cannot be implemented due to the
failure of such third party to consent, the Parties hereto shall negotiate in good faith to
implement the provision in a mutually satisfactory manner.

     SECTION 11.06. Access to Employees. Following the Distribution Date, EWS and SNI
shall, or shall cause each of their respective Subsidiaries or Affiliates to, make available to
each other those of their employees who may reasonably be needed in order to defend or prosecute
any legal or administrative action (other than a legal action between any EWS Group Member and any
SNI Group Member) to which any employee, director or Benefit Plan of the EWS Group or SNI Group is
a party and which relates to their respective Benefit Plans prior to the Distribution Date. The
Party to whom an employee is made available in accordance with this Section 11.06 shall pay or
reimburse the other Party for all reasonable expenses that may be incurred by such employee in
connection therewith, including all reasonable travel, lodging, and meal expenses, but excluding
any amount for such employee’s time spent in connection herewith.

     SECTION 11.07. Beneficiary Designation/Release of Information/Right to Reimbursement.
To the extent permitted by applicable Law and except as otherwise provided for in this Agreement,
all beneficiary designations, authorizations for the release of information and rights to
reimbursement made by or relating to SNI Participants under EWS Benefit Plans shall be transferred
to and be in full force and effect under the corresponding SNI Benefit Plans until such beneficiary
designations, authorizations or rights are replaced or revoked by, or no longer apply, to the
relevant SNI Participant.

     SECTION 11.08. Not a Change in Control. The Parties hereto acknowledge and agree
that the transactions contemplated by the Separation Agreement and this Agreement do not constitute
a “change in control” for purposes of any EWS Benefit Plan or SNI Benefit Plan.

ARTICLE XII

MISCELLANEOUS

     SECTION 12.01. Effect if Distribution Does Not Occur. Notwithstanding anything in
this Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution
Date, then all actions and events that are, under this Agreement, to be taken or occur effective
immediately prior to or as of the Distribution Date, or otherwise in connection with the
Distribution, shall not be taken or occur except to the extent specifically agreed to in writing by
EWS and SNI and neither Party shall have any Liability to the other Party under this Agreement.

     SECTION 12.02. Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the Parties or any third party as creating the relationship of principal and agent,
partnership or joint venture between the Parties, it being understood and agreed that no provision
contained herein, and no act of the Parties, shall be deemed to create any relationship between the
Parties other than the relationship set forth herein.

     SECTION 12.03. Affiliates. Each of EWS and SNI shall cause to be performed, and
hereby guarantees the performance of, all actions, agreements and obligations set forth in this
Agreement to be performed by each of their Subsidiaries or Affiliates, respectively.

32

 

     SECTION 12.04. Notices. All notices, requests, claims, demands and other
communications hereunder must be in writing and will be deemed to have been duly given only if
delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the
Parties at the following addresses or facsimile numbers:

     If to EWS, to:

[                                                            ]

[                                                            ]

[                                                            ]

Facsimile: [                                                            ]

Attention: [                                                            ]

with a copy to:

[_____________________]

[                                                            ]

[                                                            ]

[                                                            ]

Facsimile: [                                                            ]

Attention: [                                                            ]

If to SNI, to:

[                                                            ]

[                                                            ]

[                                                            ]

Facsimile: [                                                            ]

Attention: [                                                            ]

with a copy to:

[                                                            ]

[                                                            ]

[                                                            ]

Facsimile: [                                                            ]

Attention: [                                                            ]

     All such notices, requests and other communications will (i) if delivered personally to the
address as provided in this section, be deemed given upon delivery, (ii) if delivered by facsimile
transmission to the facsimile number as provided in this section, be deemed given upon receipt and
(iii) if delivered by mail in the manner described above to the address as provided in this
section, be deemed given upon receipt (in each case regardless of whether such notice, request or
other communication is received by any other Person to whom a copy of such notice, request or other
communication is to be delivered pursuant to this section). Any party from time to time may change
its address, facsimile number or other information for the purpose of notices to that party by
giving notice specifying such change to the other party.

     SECTION 12.05. Entire Agreement. This Agreement, together with all exhibits and
schedules hereto, constitute the entire agreement of the parties with respect to the subject matter
hereof and shall supersede all previous negotiations, commitments and writings with respect to such
subject matter.

     SECTION 12.06. Waiver. Any term or condition of this Agreement may be waived at any
time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a

33

 

written instrument duly executed by or on behalf of the Party waiving such term or condition.
No waiver by any Party of any term or condition of this Agreement, in any one or more instances,
shall be deemed or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion. All remedies, either under this Agreement or by Law or otherwise
afforded, will be cumulative and not alternative.

     SECTION 12.07. Amendment. This Agreement may be amended, modified, waived,
supplemented or superseded, in whole or in part, only by a written instrument signed by duly
authorized signatories of the Parties.

     SECTION 12.08. Governing Law. This Agreement and any dispute arising out of, in
connection with or relating to this Agreement shall be governed by and construed in accordance with
the Laws of the State of Ohio, without giving effect to the conflicts of laws principles thereof.

     SECTION 12.09. Submission to Jurisdiction; Waivers. To the fullest extent permitted
by applicable Law, each Party hereto (a) agrees that any claim, action or proceeding by such Party
seeking any relief whatsoever arising out of, relating to or in connection with, this Agreement or
the transactions contemplated hereby shall be brought only in the United States District Court for
the Southern District of Ohio or any Ohio State court, in each case, located in the County of
Hamilton and not in any other State or Federal court in the United States of America or any court
in any other country, (b) agrees to submit to the exclusive jurisdiction of such courts located in
the County of Hamilton for purposes of all legal proceedings arising out of, or in connection with,
this Agreement or the transactions contemplated hereby, (c) waives and agrees not to assert any
objection that it may now or hereafter have to the laying of the venue of any such action brought
in such a court or any claim that any such action brought in such a court has been brought in an
inconvenient forum, (d) agrees that mailing of process or other papers in connection with any such
action or proceeding in the manner provided in Section 12.04 or any other manner as may be
permitted by Law shall be valid and sufficient service thereof and (e) agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by applicable Law.

     SECTION 12.10. Headings. The headings used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions hereof.

     SECTION 12.11. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same instrument.

     SECTION 12.12. No Assignment; Binding Effect. Neither Party shall be permitted to
assign, in whole or in part, directly or indirectly, by operation of law or otherwise, any of its
rights or obligations under this Agreement without the prior written consent of the other Party and
any unauthorized assignment shall be null and void. Notwithstanding such prohibition on
assignment:

          (a) Nothing herein shall prohibit, modify or limit the ability of the Parties to transfer or
allocate Assets and Liabilities, as the case may be, to any entity within the EWS Group or the SNI
Group in connection with, or in furtherance of, the Distribution and, to the extent that any such
transfer or allocation results in an assignment of this Agreement or any rights or obligations
hereunder, then the Parties shall make such amendments, revisions or modifications to this
Agreement as are reasonably necessary to reflect the affect of such assignment.

          (b) Either Party may assign all, but not less than all, of its rights or obligations under
this Agreement in connection with a consolidation or merger transaction in which such Party is not
the continuing or surviving entity or the sale by such Party of all or substantially all of its
properties and assets, provided that: (i) prior to such transaction becoming effective, the
continuing, surviving or

34

 

acquiring entity shall have executed and delivered to the other Party a written agreement, in
form and substance reasonably satisfactory to the other Party, pursuant to which such entity agrees
to be bound by all of the terms, conditions and provisions of this Agreement as if named as a
“Party” hereto and (ii) no Party shall be obligated to materially change the nature, scope or
volume of its rights or obligations under this Agreement as a result of any such assignment.

     SECTION 12.13. Severability. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future Law, the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom.

ARTICLE XIII

DISPUTE RESOLUTION

     SECTION 13.01. General. Except with respect to injunctive relief described below, any
controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall
attempt to be settled first, by good faith efforts of the Parties to reach mutual agreement, and
second, if mutual agreement is not reached to resolve the dispute, by final, binding arbitration as
set out below.

     SECTION 13.02. Initiation. A Party that wishes to initiate the dispute resolution
process shall send written notice to the other Party, in accordance with Section 12.04, with a
summary of the controversy and a request to initiate these dispute resolution procedures. Each
Party shall appoint a knowledgeable, responsible representative who has the authority to settle the
dispute, to meet and to negotiate in good faith to resolve the dispute. The discussions shall be
left to the discretion of the representatives who may utilize other alternative dispute resolution
procedures such as mediation to assist in the negotiations. Discussions and correspondence among
the representatives for purposes of these negotiations (a) shall be treated as Information subject
to the provisions of Section 7.08 of the Separation Agreement developed for purposes of settlement,
(b) shall be exempt from discovery and production and (c) shall not be admissible in the
arbitration described above or in any lawsuit pursuant to Rule 408 of the Federal Rules of
Evidence. Documents identified in or provided with such communications that are not prepared for
purposes of the negotiations are not so exempted and may, if otherwise admissible, be admitted in
evidence in the arbitration or lawsuit. The Parties agree to pursue resolution under this
subsection for a minimum of 30 calendar days before requesting arbitration.

     SECTION 13.03. Arbitration Request. If the dispute is not resolved under the
preceding subsection within 30 calendar days of the initial written notice, either Party may demand
arbitration by sending written notice to the other Party. The Parties shall promptly submit the
dispute to the American Arbitration Association for resolution by a single neutral arbitrator
acceptable to both Parties, as selected under the rules of the American Arbitration Association.
The dispute shall then be administered according to the American Arbitration Association’s
Commercial Arbitration Rules, with the following modifications: (i) the arbitration shall be held
in a location mutually acceptable to the Parties, and, if the Parties do not agree, the location
shall be Cincinnati, Ohio; (ii) the arbitrator shall be licensed to practice law; (iii) the
arbitrator shall conduct the arbitration as if it were a bench trial and shall use, apply and
enforce the Federal Rules of Evidence and Federal Rules of Civil Procedure; (iv) except for
breaches related to Information subject to Section 11.01, the arbitrator shall have no power or
authority to make any award that provides for consequential, punitive or exemplary damages or
extend the term hereof; (v) the arbitrator shall control the scheduling so that the hearing is
completed no later than 30 calendar days after the date of the demand for arbitration; and (vi) the
arbitrator’s decision shall be given within five calendar days thereafter in summary form that
states the award, without written decision, which decision shall follow the plain meaning of this
Agreement, and in the event of any ambiguity, the intent of the Parties. Judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction over the Parties. Each
Party to the dispute shall bear its own expenses arising out of the arbitration,

35

 

except that the Parties shall share the expenses of the facilities to conduct the arbitration
and the fees of the arbitrator equally.

     SECTION 13.04. Injunctive Relief. The foregoing notwithstanding, each Party shall
have the right to seek injunctive relief in an applicable court of law or equity to preserve the
status quo pending resolution of the dispute and enforce any decision relating to the resolution of
the dispute.

[signature page follows]

36

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	THE E.W. SCRIPPS COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SCRIPPS NETWORKS INTERACTIVE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

37

 

	 	 	 	 	 

EXHIBIT A-1

                                        , 200     

                                                            

                                                            

                                                            

Attention:                                                             

Re: INDEPENDENT ACTUARY AGREEMENT REGARDING PENSION PLAN TRANSFER

Dear [Sir/Madam]:

The Employee Benefits Agreement dated                                         , 2008 (the “Agreement”) (copy enclosed)
requires a spin-off from the EWS Retirement Plan and a transfer to the SNI Retirement Plan of
pension and ancillary benefits liabilities and assets for SNI Plan Participants in accordance with
Section 3.02 of the Agreement. Capitalized terms used but not defined in this letter shall have
the meanings ascribed in the Agreement, the terms of which are incorporated herein by reference.

     As provided in Sections 3.02(b)(ii), (b)(iii), and (b)(iv) of the Agreement, calculations of the
Estimated Retirement Plan Transfer Amount, the Initial Asset Transfer, the Initial Transfer Amount,
and the Revised Retirement Plan Transfer Amount were made by the EWS Actuary. The calculation of
the Revised Retirement Plan Transfer Amount has been reviewed by the SNI Actuary and the SNI
Actuary disagrees with [INSERT NUMBER OF DISPUTED ISSUES] aspects of the Revised Retirement Plan
Transfer Amount calculation. The EWS Actuary and the SNI Actuary have communicated with each other
and have been unable to resolve their disagreement. Therefore, SNI hereby invokes the provisions
of Section 3.02(b)(iv)(B) of the Agreement, and proposes that EWS and SNI select and equally share
the expense of a mutually agreeable third enrolled actuary (“TEA”) to promptly resolve the
disagreement on a final and binding basis on the terms set out in this letter:

	1.	 	Objective. The objective of EWS and SNI is to resolve promptly the disagreement
between their actuaries through use of the procedure provided for in Section 3.02(b)(iv)(B) of
the Agreement. EWS and SNI agree to act promptly and in good faith to carry out and complete
the disagreement resolution procedures set out in Section 3.02(b)(iv)(B) of the Agreement.
	 
	2.	 	Criteria for Selecting the TEA. EWS and SNI agree that the TEA should be a person
who has all of the following attributes: (1) He or she is currently practicing, or within the
past ten years practiced, in a large, nationally recognized actuarial consulting firm or
accounting firm which employs actuaries (e.g., Mercer, Watson Wyatt, PricewaterhouseCoopers,
etc.); (2) he or she has substantial experience with defined benefit pension plans covering
large numbers of employees; (3) he or she has substantial experience with pension plan
transfers and corporate merger and acquisition transactions; (4) neither the individual
enrolled actuary nor his or her firm or personal office has provided actuarial consulting
services relating to the Benefit Plans within the past two years to EWS, SNI, or any of their
Subsidiaries or Affiliates or the employee benefit plans of any such Subsidiary or Affiliate,
or, if an accounting firm, the firm does not serve as auditor for EWS, SNI, or any of their
Subsidiaries or Affiliates; (5) neither the individual enrolled actuary nor his or her firm
currently or at any time in the past has provided services specifically to the EWS Retirement
Plan, the SNI Retirement Plan, or any plan that has been merged into either such plan;

 

 

	 	 	and (6) neither the individual enrolled actuary nor his or her firm has previously been
contacted by EWS, SNI, or any of their Subsidiaries or Affiliates or representatives about
this matter, and otherwise they have no prior knowledge of this matter.
	 
	 	 	EWS and SNI will, within 15 days from the date EWS endorses a copy of this letter,
simultaneously submit to each other a list of up to six names of either individual enrolled
actuaries or actuarial consulting or accounting firms (including, in the case of a firm, a
particular United States office of that firm, e.g., “Towers Perrin, New York Office,” or
“Buck Consultants, Pittsburgh Office”). The names on each list will meet all of the six
criteria set out in paragraph 1 above. If any name appearing on a party’s list (the
“Nominating Party”) is known by the other party (the “Receiving Party”) not to meet all of
the six criteria set out in paragraph 1 above, the Receiving Party will immediately notify
the Nominating Party of that fact (including specification of the criterion or criteria not
met) and the nominated individual or firm will be stricken from the list. In that event,
the Nominating Party may, at its election, substitute another name for the name so stricken.
Each party will disclose to the other party any relationship it has had since [INSERT DATE
TWO YEARS PRIOR TO DISTRIBUTION DATE] with any individual or firm appearing on either list,
even if such relationship does not disqualify the nominated individual or firm.
	 
	 	 	If the name of any individual actuary or firm office appears on both lists, that person or
firm office will automatically be agreed to as the TEA selected by EWS and SNI. If more
than one name appears on both lists, the TEA will be the first name chosen by lot from among
such names. The parties will approach the TEA so selected (or will approach such selected
TEAs seriatim, in the order chosen by lot, if more than one name appears on both lists)
under the solicitation procedure described in paragraph 3 below, until the selected TEA (or
one of the selected TEAs) accepts the assignment on the terms in the “Proposal
Package” (defined below). In the event that the selected TEA (or all of such selected
TEAs) does/do not accept the assignment, then the procedures set forth below will be
followed to identify the TEA.
	 
	 	 	If no individual actuary or firm office appears on both lists (or all such individuals or
firms reject the assignment), then representatives of EWS and SNI will discuss all of the
individuals or firms included in both lists and will in good faith agree on up to four of
those individuals or firms (the “Candidates”) as acceptable to be the TEA. Under the
solicitation procedure described in paragraph 3 below, EWS and SNI will then jointly
approach those four individuals or firms, seriatim (one at a time, in the order chosen by
lot), to ascertain their availability and acceptance of the assignment on the terms
proposed. The first such Candidate that accepts the assignment on the terms proposed will
be the TEA selected by EWS and SNI in accordance with Section 3.02(b)(iv)(B) of the
Agreement. For example, EWS and SNI will send a Proposal Package (defined below) to the
first Candidate; if that Candidate accepts the assignment on the terms in the Proposal
Package, then that Candidate will be the TEA; if the first Candidate does not accept the
assignment on the terms proposed within a reasonable period (not more than 10 days), then a
Proposal Package will be sent to the second Candidate, and so on, until a Candidate accepts
on the terms in the Proposal Package. If no Candidate accepts the assignment, the parties
will promptly recommence the process set out in this paragraph 2.
	 
	3.	 	Solicitation Procedure. Having so identified the TEA or up to four Candidates, SNI
and EWS will jointly send to such TEA(s) or Candidates, seriatim as described above, a written
description and proposal for the project (the “Proposal Package”). Neither EWS nor SNI will
independently contact or discuss the matter with any Candidate; if a Candidate contacts either
EWS or SNI or their representatives to discuss the project or request additional information,
SNI or EWS, as the case may be, will immediately join the other party or a representative
thereof in the

2

 

	 	 	response to or any discussion with the Candidate, and will not in any event proceed in
discussions with the Candidate or such other party.
	 
	 	 	SNI and EWS will agree on and jointly prepare the Proposal Package; it is assumed that the
Proposal Package will be relatively brief, including only enough information to identify the
parties, describe the specifics of their actuaries’ disagreement, include a copy of the
Agreement, describe the function of the TEA in resolving the disagreement, and describe the
limits and time frame within which the TEA’s work is to be completed. To facilitate the
prompt creation of the Proposal Package: SNI will prepare a draft of the package which shall
be reviewed promptly by EWS; reasonable changes and additions may be proposed by EWS; the
final terms of the Proposal Package will consist of the draft proposed by SNI incorporating
the reasonable changes and additions proposed by EWS. The final Proposal Package will be
completed within 15 days from the date a copy of this letter is endorsed by EWS, or within
seven days following receipt of the draft by EWS, whichever period ends later.
	 
	 	 	EWS and SNI will jointly execute any engagement letter, fee agreement or any other
documentation required by the selected TEA. EWS and SNI will equally share the fees and
expenses of the TEA and each will promptly pay one-half of the amount charged on each
invoice submitted by the TEA.
	 
	4.	 	Scope of the TEA’s Functions. The function and authority of the TEA is limited to
deciding the [INSERT NUMBER OF DISPUTED ISSUES] issues on which the enrolled actuaries
selected by EWS and SNI have disagreed, specifically:

	 	(a)	 	[Insert description of the issue(s) to be resolved by the TEA.]
	 
	 	(b)	 	[Insert description of the issue(s) to be resolved by the TEA.]
	 
	 	(c)	 	[ETC.]

	 	 	The TEA may reach any decision with respect to these [INSERT NUMBER OF DISPUTED ISSUES]
issues; i.e., the TEA may decide that the issue will be resolved wholly as proposed by the
SNI Actuary, by the EWS Actuary, or at any amount between their positions. The amount of
assets transferred attributable to each such issue as decided by the TEA shall not be more
than the amount that would have been transferred based on the position of the SNI Actuary
with respect to the issue nor less than the amount that would have been transferred based on
the position of the EWS Actuary with respect to the issue.
	 
	 	 	The TEA is not expected or authorized to review or decide any issue other than the [INSERT
NUMBER OF DISPUTED ISSUES] issue(s) above, or to make any calculation or determination
regarding the transfer of assets and liabilities from the EWS Retirement Plan to the SNI
Retirement Plan. In no event will any decision or action of the TEA result in any reduction
in the Initial Cash Transfer or the Initial Transfer Amount heretofore transferred from the
EWS Retirement Plan to the SNI Retirement Plan.
	 
	 	 	A condition of the engagement of the TEA will be that he or she shall agree to make and
communicate his or her decisions within 30 days after he or she receives the last of the
written communications referred to in the first sentence of paragraph 5 below. The TEA will
be required to present his or her decisions in a writing addressed jointly to EWS and SNI.
The written report of the TEA should also include a statement that he or she is independent
of the parties, has no conflict of interest with respect to the engagement, had no contact
with either party concerning this matter prior to being contacted jointly by the parties,
and satisfies all six of the criteria set

3

 

	 	 	out in paragraph 2 above. It is expected that the decision rendered by the TEA will be
sufficient to enable EWS to calculate (subject to review by the SNI Actuary) the Final
Retirement Plan Transfer Amount. In the event of any dispute by the parties’ actuaries over
the calculations done following the decision of the TEA, such dispute shall be referred to
the TEA for resolution. After such resolution, the EWS Actuary will complete a final
calculation of the Final Retirement Plan Transfer Amount that is consistent with the
resolution of the TEA.
	 
	 	 	If such final calculation requires a higher amount to be transferred than the Initial
Transfer Amount (adjusted for ___ interest as required by the Agreement), EWS will promptly
(and in any event not more than 30 days after receipt of the written decision of the TEA)
cause the EWS Retirement Plan to transfer such additional amount (plus interest at ___) to
the SNI Retirement Plan.
	 
	5.	 	Communications with the TEA. Within 10 days after the TEA is engaged, EWS and SNI
shall each communicate to the TEA in writing (the “Initial Communication”) the positions of
their respective enrolled actuaries with respect to the [INSERT NUMBER OF DISPUTED ISSUES]
issues to be decided by the TEA. Such Initial Communication may include copies of the
parties’ prior correspondence (including correspondence between the EWS and SNI Actuaries).
As soon as the TEA has received the Initial Communication from both parties, the TEA will then
simultaneously furnish to each party a copy of the Initial Communication provided by the other
party. Within 10 days after receiving a copy of the other party’s Initial Communication from
the TEA, a party may submit to the TEA a written communication (a “Rebuttal Statement”)
setting forth any additional information or comments in response to the other party’s Initial
Communication. As soon as the TEA has received a Rebuttal Statement from each party, or if
earlier, upon expiration of the 10-day time period for submitting Rebuttal Statements, the TEA
shall simultaneously furnish to each party a copy of any Rebuttal Statement provided by the
other party.
	 
	 	 	Except for the Proposal Package, the Initial Communications and the Rebuttal Statements (if
any), neither EWS nor SNI nor any of their agents or representatives will initiate any other
contact or communication with the TEA. The TEA may, however, contact EWS or SNI or their
representatives or actuaries to request additional documents, information or opinions. EWS
or SNI, or their representatives or actuaries, as the case may be, will respond to any such
request from the TEA, but the responding party will immediately advise the other party of
any such contact and provide a copy of any written response or a written summary with regard
to any oral communications. Upon receipt of any such copy of summary, the receiving party
may, if it so elects, communicate in a similar manner (written or oral) to the TEA any
comments that such party may have that are relevant to the matter(s) that were the subject
of the communications between the TEA and the other party.
	 
	 	 	If so requested by the TEA, the parties will meet in person or have a telephone conference
call with the TEA. Any such meeting or call will be attended by such representatives of EWS
or SNI as each of them decides is appropriate.
	 
	 	 	All written (including facsimile and E-mail) correspondence, notices and other documentation
prepared by or received by EWS or SNI or their representatives relating to this matter, will
be addressed to, or a copy thereof shall be simultaneously furnished to, the following
persons at EWS and SNI:

	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 

	 	 

	 	 
	 	 

	 

	 	 

	 	 
	 	 

	 

	 	 

	 	 
	 	 

4

 

	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 

	 	 

	 	 
	 	 

If any time period specified herein would otherwise end on a Saturday, Sunday or legal
holiday in Ohio, then such time period shall be extended to the next regular business day.

********

Please indicate EWS’s agreement to the terms set forth herein, by endorsing the enclosed copy of
this letter and returning it to the undersigned.

	 	 	 	 	 
	 	Sincerely,

SCRIPPS NETWORKS INTERACTIVE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Date:  	 	 
	 

Acknowledged and Agreed:

	 	 	 	 	 
	THE E.W. SCRIPPS COMPANY

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 	Date: 	 	 	 
	 

101934041.14, Employee Matters Agreement

5

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