Document:

EMPLOYMENT AGREEMENT

THIS AGREEMENT (the "Agreement") is being made as of September 19, 2008, effective as of September 1, 2008 by and between CHYRON CORPORATION, a New York corporation (the "Company"), having its principal offices at 5 Hub Drive, Melville, New York 11747, and MICHAEL WELLESLEY-WESLEY ("MWW") having an address at 145 East 81st Street., Apt. 11A, New York, New York 10028.

WITNESSETH:

WHEREAS, the Company desires to continue to employ MWW as its Chief Executive Officer and President (collectively, the "CEO"), and MWW desires to continue to hold such positions, subject to and upon the terms and conditions contained herein; 

WHEREAS, the Company and MWW have previously entered into an Employment Agreement, dated March 2, 2005, which was amended and extended as of October 26, 2007 and which expired as of August 31, 2008; and 

WHEREAS the parties desire to enter into this Agreement as the successor employment agreement between the parties, which, together with a revised Change-in-Control Agreement, dated as of even date hereof (the "CIC Agreement"), shall reflect the employment arrangement between the Company and MWW.

NOW, THEREFORE, in consideration of the mutual premises and agreements contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

1. Nature of Employment: Term of Employment.

(a) The Company hereby agrees to continue to employ MWW and MWW agrees to
continue to serve the Company as its CEO, upon the terms and conditions
contained herein, for a term commencing effective as of September 1, 2008 (the
"Commencement Date") 

 

and continuing until and including August 31, 2010 (the "Employment Term,"
which shall include, as applicable, all successive terms of employment under
this Agreement or any amendment thereof). 

(b) (i) The parties agree to begin good faith negotiations of an extension not later than 120 days before the end of the Employment Term. 

(ii) In the event that the Company desires not to renew this Agreement or offers to renew the Agreement on terms less favorable to MWW than those contained herein or for a period of less than one year, then MWW shall be paid, as transitional payment ("Transitional Payment'), his Base Salary for an additional period of six (6) months (i.e., through February 28, 2011), plus (x) Company health benefits, (y) any accrued but unpaid Incentive Bonus, if any, and (z) a monthly commutation payment of $1,500 per month for an additional six (6) months (i.e., through February 28, 2011), so that MWW can assist the Company in an orderly transition to a new CEO. 

(iii) In the event that the Company offers to extend this Agreement for a period of not less than one year, on terms and conditions that are no less favorable than contained in this Agreement and MWW declines to accept such extension, then there shall be no further severance payments or Transitional Payment due MWW at the end of Employment Term.

2. Duties and Powers as Employee.

(a) During the Employment Term, MWW shall be employed by the Company as
CEO, which position is, and shall remain at all times during the Employment
Term, the senior executive officer position of the Company. MWW shall devote
substantially his full working time to his duties as CEO. In performance of his
duties, MWW shall report directly to and be subject to the direction of the
Board of Directors of the Company or any Committee thereof. As 

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CEO, MWW shall have all the responsibilities, duties and authority as are
generally associated with the position of CEO of a public company, including
full executive power over, and responsibility for, managing, directing and
supervising all aspects of the business of the Company worldwide. The CEO shall
also be responsible for developing the business plan and objectives of the
Company and managing the execution of such plan.

(b) As CEO, MWW shall travel in accordance with the reasonable needs of the business, which shall require him to conduct business for the Company primarily in Melville, New York and such other locations as he deems reasonably necessary. Business Class accommodations shall be permissible for any travel of three (3) hours or longer.

(c) It shall not be a violation of this Agreement for MWW to (A) serve on any civic or charitable boards or committees consistent with the Company's conflicts of interest policies and corporate governance guidelines in effect from time to time, (B) serve as a Director on any other for-profit corporation, provided that the Compensation Committee of the Board of Directors approves such appointment or election prior to MWW accepting such Directorship, (C) deliver lectures and fulfill speaking engagements, or (D) manage his personal investments, so long as such activities do not materially interfere with the performance of MWW's responsibilities as an executive officer of the Company. It is expressly understood and agreed that to the extent that any such activities have been conducted by MWW prior to the Commencement Date and are disclosed in writing on Schedule I to this Agreement, the continued conduct of such activities subsequent to the Commencement Date shall not thereafter be deemed to interfere with the performance of MWW's responsibilities to the Company; provided, however, that the failure to disclose any such existing activities shall not create a presumption that such activities are in violation of this Agreement; and provided further,  

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notwithstanding anything to the contrary in any written non-competition or similar provision between MWW and the Company, no activity so listed on Schedule I shall be violative thereof.

3. Compensation.

(a) As compensation for his services hereunder, the Company shall pay MWW, during the Employment Term, a base salary (the "Base Salary") payable in equal installments bi-weekly at the annual rate of $464,100.

(b) In addition to the Base Salary, and subject to the sole discretion of the Compensation Committee of the Board of Directors, MWW may receive, as incentive compensation, an annual bonus (the "Incentive Bonus"). The Company shall pay the Incentive Bonus, if any, to MWW only after the issuance of the results of the annual audit of its books and records by its independent auditor, except that MWW can accelerate the payment of such bonus at anytime up to the amount of $40,000, in order to balance the payment of personal income taxes owed the United States and Great Britain by MWW, on the condition that the Compensation Committee resolves that it has been earned and does not constitute a loan, which would violate the provisions of the Sarbanes-Oxley Act.

4. Expenses; Vacation; Insurance; Other Benefits.

(a) MWW shall be entitled to reimbursement for reasonable travel and
other out-of-pocket expenses incurred in the performance of his duties
hereunder, upon submission and approval of written statements and bills in
accordance with the then regular policies and procedures of the Company for
submission of expenses. The Company shall also pay MWW an additional $18,000 a
year (without need for written submission and approval of bills or statements)
to defray regular commutation costs. This amount will be payable in equal
installments bi-weekly and is subject to withholding and other appropriate
payroll taxes. This 

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amount may be used for, among other things, the cost of an automobile lease
and all related costs; no other payments will be made for regular commutation
costs.

(b) MWW shall be entitled to twenty (20) days paid vacation time per annum or such other period as is in accordance with the regular procedures of the Company governing senior executive officers as determined from time to time by the Company's Board of Directors.

(c) MWW shall be entitled to participate in all employee benefit plans and programs of the Company now or hereafter made available to all senior executives of the Company as a group, to the extent eligible, (including, without limitation, each retirement plan, supplemental and excess retirement plans, deferral savings plans, annual and long-term incentive compensation plans, stock option and purchase plans, group life insurance, accident and death insurance, medical and dental insurance, sick leave, disability plans and fringe benefit plans) on a basis which is no less favorable than is made available to any other senior executive of the Company, except as otherwise provided herein. In the event MWW receives severance under the CIC Agreement, then such severance shall be in lieu of any severance obligations under this Agreement, except as may otherwise be provided herein.

(d) The Company shall pay for United States income tax advice and preparation of United States income tax forms for MWW up to $5,000 per year.

(e) MWW shall continue to be covered by the Company's directors' and
officers' liability insurance policy, and errors and omissions coverage, if any,
to the extent such coverage is generally provided by the Company to its
directors and officers and to the fullest extent permitted by such insurance
policies. Nothing herein is or shall be deemed to be a representation by the
Company that it provides, or a promise by the Company to obtain, maintain or
continue any liability insurance coverage whatsoever for its executives. In
addition, the 

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Company confirms that the Indemnification Agreement, dated November 19, 1996,
between the Company and MWW remains in full force and effect.

5. Representations and Warranties of Employee.

(a) MWW represents and warrants to the Company that (i) MWW is under no contractual or other obligation which is inconsistent with the execution of this Agreement, the performance of his duties hereunder, or the other rights of the Company hereunder, and (ii) MWW is under no physical or mental disability that would prevent him, with reasonable accommodation, from performing his duties under this Agreement.

6. Non-Competition.

(a) MWW agrees that he will not: (i) during the period he is employed by
the Company, engage in, or otherwise directly or indirectly be employed by, or
act as a consultant to, or be a director, officer, employee, owner, member or
partner of, any other business or organization that is or shall then be
competing with the Business of the Company (as defined below), and (ii) for the
applicable periods of time as described in Section 6(b) below, directly or
indirectly, compete with or be engaged in the Business of the Company, or be
employed by, or act as consultant to, or be a director, officer, employee,
owner, member or partner of, any business or organization which, at the time of
such cessation, competes with or is engaged in the Business as the Company,
except that in each case the provisions of this Section 6 will not be deemed
breached merely because MWW: (A) owns not more than five percent (5%) of the
outstanding common stock of a corporation, if, at the time of its acquisition by
MWW, such stock is listed on a national securities exchange, is reported on
NASDAQ, or is regularly traded in the over-the-counter market by a member of a
national securities exchange; or (B) MWW is a passive investor in any fund in
which he has no investment discretion. This prohibition shall 

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apply to the entire world in recognition of the fact that the Company
operates on a multi-national basis. "Business of the Company" shall mean (w) the
design, manufacture, sale, re-sale, distribution or maintenance of character
generators (software or hardware or a combination thereof) that are used by the
broadcast and cable industries, (x) online graphics creation and work flow
solutions or any other product or solution similar to those products or
solutions marketed or distributed by the Axis Graphics division, (y) products or
solutions similar to ChyTV, and (z) any other products or solutions acquired or
developed by the Company while MWW is employed by the Company. Notwithstanding
the foregoing, this restrictive covenant shall not be applicable if MWW is
terminated without Cause or he resigns for Good Reason.

(b) In addition to the applicable period referred to in Section 6(a)(i) above, the covenant not to compete shall be applicable for the following periods:

(i) In the event the Agreement is not renewed pursuant to Section 1(b)(iii), then the applicable period shall be to and including February 28, 2011.

 (ii) In the event that the Agreement is not renewed pursuant to Section 1(b)(ii) and MWW is entitled to the Transitional Payment, then the applicable period shall be to and including August 31, 2011.

(iii) In the event that MWW ceases to be employed by the Company due to termination for Cause (as defined in Section 9(a)) or due to MWW's voluntary resignation (which is not for Good Reason (as defined in Section 9(h)), then the applicable period shall be one year from the date of cessation of employment with the Company.

(c) It is the intent of the parties to this Agreement that the provisions of
this Section 6 shall be enforced to the fullest extent permissible under the
laws and public policies applied in each jurisdiction in which enforcement is
sought. If any particular provisions or 

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portions of this Section 6 shall be adjudicated to be invalid or
unenforceable, such provisions or portion thereof shall be deemed amended to the
minimum extent necessary to render such provision or portion valid and
enforceable, such amendment to apply only with respect to the operation of such
provisions or portions in the particular jurisdiction in which such adjudication
is made.

(d) The parties acknowledge that damages and remedies at law for any breach of this Section 6 will be inadequate and that the Company shall be entitled to specific performance and other equitable remedies (including injunction) and such other relief as a court or tribunal may deem appropriate in addition to any other remedies the Company may have. MWW also waives the posting of any bond in connection with the issuance of any injunctive relief.

7. Patents; Copyrights.

Any interest in patents, patent applications, inventions, copyrights, developments, and processes ("Such Inventions") which MWW now or hereafter during the period he is employed by the Company may own or develop relating to the fields in which the Company may then be engaged shall belong to the Company; and forthwith upon request of the Company, MWW shall execute all such assignments and other documents and take all such other action as the Company may reasonably request in order to vest in the Company all his right, title, and interest in and to Such Inventions, free and clear of all liens, charges and encumbrances. The Company will reimburse MWW for any reasonable fees and expenses (including fees and expenses of counsel) incurred by MWW in connection with executing such assignments and documents and taking any such action at the request of the Company.

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8. Confidential Information.

All confidential information which MWW may now possess or may obtain during the Employment Term relating to the business of the Company shall not be published, disclosed, or made accessible by him to any other person, firm, corporation or entity during the Employment Term or anytime thereafter without the prior written consent of the Company; provided that the foregoing shall not apply to information which is not unique to the Company or which is generally known to the industry or the public, other than as a result of MWW's breach of this covenant, and shall not preclude MWW from disclosing any such information to the extent such disclosure (i) is required by law, or (ii) would, in the reasonable judgment of MWW, be in the best interest of the Company or is reasonably necessary in order to defend MWW or to enforce MWW's rights under this Agreement in connection with any action or proceeding to which the Company or its affiliates is a party. MWW shall return all tangible evidence of such confidential information to the Company prior to or at the termination of his employment.

9. Termination.

(a) Notwithstanding anything herein contained, if on or after the date
hereof and prior to the end of the Employment Term, MWW is terminated for Cause
(as defined below) then the Company shall have the right to give notice of
termination of MWW's services hereunder as of a date to be specified in such
notice, and this Agreement shall terminate on the date so specified. Termination
for Cause shall mean MWW: (i) is convicted of a felony crime; (ii) willfully
commits any act or willfully omits to take any action in bad faith and to the
material detriment of the Company; (iii) commits an act of active and deliberate
fraud against the Company; or (iv) materially breaches any term of this
Agreement and fails to correct such breach within ten (10) days after written
notice of the commission thereof. In the event that this 

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Agreement is terminated for Cause, then MWW shall be entitled to receive only
his Base Salary at the rate provided in Section 3 to the date on which
termination shall take effect and any Incentive Bonus accrued, but not yet paid,
any commutation payment accrued, but not yet paid, and any unreimbursed
expenses.

(b) In the event that MWW shall be physically or mentally incapacitated or disabled or otherwise unable fully to discharge his duties hereunder for a period of one-hundred and twenty (120) consecutive days, then this Agreement shall terminate upon an additional thirty (30) days' written notice to MWW (unless MWW is able to resume his duties during such notice period), and no further compensation shall be payable to MWW, except: (i)as may otherwise be provided under any disability insurance policy and, (ii) the pro rata portion of the Base Salary not previously paid through the date of termination, any Incentive Bonus accrued, but not yet paid, any commutation payment accrued, but not yet paid, and any unreimbursed expenses.

(c) In the event that MWW shall die, then this Agreement shall terminate on the date of MWW's death, and no further compensation shall be payable to MWW, except as may otherwise be provided under any insurance policy or similar instrument and that pro rata portion of the Base Salary not previously paid through the date of termination and any Incentive Bonus accrued but not yet paid and any unreimbursed expenses.

(d) If MWW's employment is terminated (x) by the Company other than pursuant to subparagraphs 9(a), 9(b) or 9(c) hereof, or as the result of a Change-in-Control as defined under the CIC
Agreement, or (y) by MWW upon written notice by MWW for resignation with Good
Reason (as defined in Section 9(h)), then MWW shall be entitled to receive from
the Company: (i) the Base Salary for the longer of (x) the remainder of the
Employment Term following the date of termination and (y) six (6) months; (ii)
all unvested 

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options which shall immediately vest and have an exercise period equal to the
remaining term of such options without regard to any shorter exercise period set
forth in the relevant Stock Option Plan (the "SOP") as a result of termination;
(iii) an amount, grossed up for federal state and local taxes, in lieu of
participation in the Company's life, long-term disability and health insurance
plans for the remaining term of this Agreement from the date of termination (the
"Severance Benefits"), as set forth in Section 9(i); (iv) any accrued, but
unpaid Base Salary and/or Incentive Bonus; and (v) any previously incurred but
unpaid business expenses and/or accrued but unpaid commutation payment and/or
other amounts due under Paragraph 4 of this Agreement. All amounts payable in
accordance with this subsection, except for the Severance Benefits, shall be
made in accordance with Company policy as if MWW had not been terminated. The
Severance Benefits amounts shall be paid in a lump sum within twenty (20)
business days from the date of termination. The Company shall give written
notice of termination to MWW which shall state the date the termination is to be
effective. All payments made pursuant to this Section 9(d) shall not be subject
to mitigation or any right of set-off.

(e) The severance pay and Severance Benefits provided in clauses (i) and
(iii) of Section 9(d) are intended to comply with the exemption from Section
409A of the Internal Revenue Code of 1986, as amended (the "Code"), for
involuntary separation arrangements set forth in Treasury Regulation Section
1.409A-1(b)(9). Accordingly, notwithstanding any other provision hereof, (i) no
amount shall be payable to you under clause (i) or clause (iii) of Section 9(d)
unless your termination of employment constitutes a separation from service
within the meaning of Section 409A of the Code, (ii) if the amount payable to
you hereunder in such event shall exceed two times the lesser of (A) your annual
compensation (as defined in Treasury Regulation Section 1.415(d)(2)) for
services provided to the Company as an employee for the 

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calendar year preceding the calendar year in which such separation from
service occurs, or (B) the maximum amount that may be taken into account under a
qualified plan pursuant to Section 401(a)(17) of the Code for such year, such
amount shall be paid as otherwise specified in Section 9(d), provided that the
amount in excess of the foregoing limitation shall be subject to the provisions
of Section 9(f) and (iii) no payment may be made to you hereunder in such event
later than December 31 of the second calendar year following the calendar year
in which such separation from service occurs.

(f) In the event the amounts payable to you under clauses (i) and (iii) of Section 9(d) exceed the permissible amounts set forth in Section 9(e), (i) if you are considered to be a "key employee" for purposes of Section 409A with respect to such payment, then (A) payment shall not commence until the end of the six (6) month period beginning on your "separation from service date" (within the meaning of Section 409A of the Code) and (B) the aggregate amount of payments that would have been made during such six (6) month period but for the application of this Section 9(f) will be paid in a lump sum at the end of such period; or (ii) if you are not a "key employee," then payment shall not commence until you have incurred a separation from service within the meaning of Section 409A of the Code.

(g) If the Company does not extend this Agreement, then all the vested options held by MWW shall have an exercise period equal to the remaining term of such options without regard to any shorter exercise period set forth in the SOP.

(h) Resignation with Good Reason means (i) a reduction in MWW's base salary
or the cap, if any, on MWW's incentive pay, or (ii) the assignment to MWW of any
duties inconsistent in any material respect with MWW's position (including
status, offices, titles and reporting requirements), authority, duties or
responsibilities which result in a material diminution 

12

 

in such position, authority, duties or responsibilities. MWW must provide
notice to the Company of the existence of any of the conditions described in
clauses (i) or (ii) above within a period of 90 days of the initial existence of
such condition and the Company shall have a period of 30 days following receipt
of such notice during which it may remedy such condition. In the event of MWW's
failure to deliver timely notice as set forth herein or in the event of the
Company's timely remedy of any condition described in clauses (i) or (ii) above,
MWW shall not be entitled to a resignation with Good Reason.

(i) Recognizing that such amount is subject to income and other taxes, the Severance Benefits payment shall include an amount equal to the amount of federal, state, and local income taxes incurred as a result of the Severance Benefits payment or any additional tax gross up payment on such payment. The Severance Benefits payment shall be equal to the sum of the Health Care Payment, the Life Insurance Payment and the Disability Insurance Payment, all as described in Paragraphs 9(j) through 9(1) below, plus the foregoing tax gross up.

(j) The "Health Care Payment" is an amount equal to the monthly premium amount charged by the Company for COBRA continuation coverage under the health care option in which you are enrolled at the time of MWW's termination times the number of months remaining in the term of this Agreement at the time of MWW's termination. To receive coverage under the Company's health insurance plans, MWW must elect to receive COBRA coverage and remit the appropriate payment to the Company as per the policy of the Company,

(k) The Company's group term life insurance policy provides $500,000 of
coverage, and upon termination, offers MWW the opportunity to convert Whole Life
(subject to acceptance by the insurer). The "Life Insurance Payment" is an
amount equal to the number of months remaining in the term of this Agreement at
the time of MWW's termination times the 

13

 

monthly premium for one of the following, as MWW elects: (i) a Whole Life
conversion policy through the Company's group life insurer (subject to
acceptance by the insurer); (ii) an existing life insurance policy or policies
that MWW may currently have in place; or (iii) a new term life insurance policy.
The Company will pay only that pro-rated portion of the premium that represents
coverage equal to your coverage under the group life insurance plan as of the
date of this Agreement, that is, $500,000.

(l) The Company's long-term disability insurance plan provides coverage of 60% of monthly earnings (but not more than $10,000, which amount may be reduced by deductible sources of income and disability earnings) after a 26 week elimination (waiting) period, and the insurer offers a portable policy after termination. The "Disability Insurance Payment" is an amount equal to the number of months remaining in the term of this Agreement at the time of MWW's termination times the monthly premium for one of the following, as MWW elects: (i) a portable long-term disability policy through the Company's insurer (subject to acceptance by the insurer), (ii) an existing long-term disability insurance policy or policies that MWW may currently have in place, or (iii) a new personal long-term disability insurance policy obtained through other than the Company's insurance policy. The Company will pay only that pro-rated portion of the premium that represents coverage equal to MWW' s coverage under the group long-term disability insurance plan as of the date of this Agreement

10. Survival.

The covenants, agreements, representations and warranties contained in or made pursuant to this Agreement shall survive MWW's termination of employment, irrespective of any investigation made by or on behalf of any party.

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11. Modification.

This Agreement and the CIC Agreement set forth the entire understanding of the parties with respect to the subject matter hereof, supersede all existing agreements between them concerning such subject matter, except for the CIC Agreement, and may be modified only by a written instrument duly executed by each party.

12. Notices.

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered in person, by telecopy with electronic confirmation of delivery or by delivery to an internationally recognized carrier for overnight delivery to the party to whom it is to be given at the address of such party as set forth in the preamble to this Agreement (or to such other address as the party shall have furnished in writing in accordance with the provisions of this Section 12). In the case of a notice to the Company, a copy of such notice (which copy shall not constitute notice) shall be delivered to Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. Chrysler Center, 666 Third Avenue, New York, New York 10017, Attn: Daniel I. DeWolf, Esq. In the case of a notice to MWW, a copy of such notice (which copy shall not constitute notice) shall be delivered to Greenberg Traurig LLP, 200 Park Avenue, New York, New York 10166, Attn: Ronald D. Lefton, Esq. Any notice or other communication given by overnight delivery shall be deemed given at the time of delivery to the carrier, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof. Any notice given by telecopy shall be deemed given at the time the notice or other communication is delivered with electronic confirmation of delivery.

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13. Waiver.

Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing.

14. Binding Effect.

MWW's rights and obligations under this Agreement shall not be transferable by assignment or otherwise, such rights shall not be subject to encumbrance or the claims of MWW's creditors, and any attempt to do any of the foregoing shall be void. The provisions of this Agreement shall be binding upon and inure to the benefit of MWW and his heirs and personal representatives, and shall be binding upon and inure to the benefit of the Company and its successors and assigns.

15. Headings.

The headings in this Agreement are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

16. Counterparts; Governing Law.

This Agreement may be executed in any number of counterparts (and by facsimile), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. It shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the rules governing the conflicts of laws.

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written above.

	
CHYRON CORPORATION

	
 
	
 
	
 

	
By:
	
/s/ Christopher Kelly

	
 
	
Name:
	
Christopher Kelly

	
 
	
Title:
	
Chairman

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 /s/ Michael Wellesley-Wesley

	
 
	
Name:
	
Michael Wellesley-Wesley

	
 
	
Title:
	
President & Chief Executive Officer

17THIS CHANGE IN CONTROL AGREEMENT ("CIC Agreement") is being entered into on September 19, 2008 by and between MICHAEL WELLESLEY-WESLEY ("MWW"), an individual residing at 145 East 81st Street, Apt. 11A, New York, New York 10028, and CHYRON CORPORATION, a New York corporation (the "Company") with its principal office located at 5 Hub Drive, Melville, New York, New York 11747.

WHEREAS, MWW is entering into a new employment agreement (the "Employment Agreement") with the Company simultaneously with this CIC Agreement;

WHEREAS, MWW and the Company entered into a letter agreement, dated October 26, 2007, regarding severance in the event of a change-in-control (the "Initial CIC Letter Agreement"); and

WHEREAS, MWW and the Company desire to terminate the Initial CIC Letter Agreement and to execute and deliver this new CIC Agreement simultaneously with the Employment Agreement.

NOW, THEREFORE, for good and valuable consideration, and intending to be legally bound hereby, the parties hereto agree as follows:

The following sets out our agreement with respect to severance payments to be paid to MWW if MWW's termination of employment is "related to" a "Change-in-Control" and is either: (i) without "Cause," or (ii) a "Resignation with Good Reason" (collectively, a "Severance Event") (all as defined below). This CIC Agreement shall be effective as of September 1, 2008 and shall replace all severance benefits payable to you as a result of a Change-in-Control as previously set forth in the Initial CIC Letter Agreement or in any executive retention program previously maintained by the Company. This CIC Agreement shall not affect any other severance benefits set forth in your Employment Agreement.

1. Severance Benefits.

1.1 In the event of a Severance Event, the Company shall pay
MWW severance equal to the following: (i) an amount equal to MWW's base salary
for a 12 month period based on MWW's base salary rate in effect immediately
prior to a Change-in-Control (the "Severance Salary"); (ii) a bonus equal to the
greater of (x) the bonus paid to MWW for the full fiscal year immediately prior
to a Change-in-Control and (y) the bonus that MWW has accrued for the fiscal
year in which the Change-in-Control has occurred, with such amount being
annualized (the "Severance Bonus"); and (iii) an amount, grossed up for federal,
state and local taxes, in lieu of one year of participation in the Company's
life, long-term disability, and health insurance plans, as described further
below (the "Severance Benefits"). The payments are not subject to mitigation or
any right of set-off. In addition, MWW will be paid for accrued, but unused
vacation time up to the Company's maximum permitted accrual of six weeks.
Further, all unvested options shall immediately vest and the period to exercise
all options held by MWW shall be the remaining term of each option regardless of
any shorter 

 

periods provided for by the Stock Option Plan as a result of
the termination of your employment.

1.2 Following a Severance Event, the Severance Salary shall be paid in even installments on a bi-weekly basis for a period of 12 months from your date of termination. The Severance Bonus and Severance Benefits amounts shall be paid in a lump sum within twenty (20) business days from the date of MWW's termination.

1.3 Recognizing that such amount is subject to income and other taxes, the Severance Benefits payment shall include an amount equal to the amount of federal, state, and local income taxes that MWW incurs as a result of the Severance Benefits payment or any additional tax gross-up payment on such payment. The Severance Benefits payment shall be equal to the sum of the Health Care Payment, the Life Insurance Payment and the Disability Insurance Payment, all as described below, plus the foregoing tax gross-up.

1.4 The Health Care Payment is an amount equal to 12 times the monthly premium amount charged by the Company for COBRA continuation coverage under the health care option in which MWW is enrolled at the time of the Severance Event. To receive coverage under the Company's health insurance plans, MWW must elect to receive COBRA coverage and remit the appropriate payment to the Company as per the policy of the Company.

1.5 The Company's group term life insurance policy provides MWW with $500,000 of coverage and, upon termination, offers MWW the opportunity to convert to Whole Life (subject to acceptance by the insurer). The Life Insurance Payment is an amount equal to 12 times the monthly premium for one of the following, as MWW may elect: (i) a Whole Life conversion policy through the Company's group life insurer (subject to acceptance by the insurer); (ii) an existing life insurance policy or policies that you may currently have in place; or (iii) a new term life insurance policy. The Company will pay only that pro-rated portion of the premium that represents coverage equal to MWW's coverage under the group life insurance plan as of the date of this CIC Agreement, that is, $500,000.

1.6 The Company's long-term disability insurance plan
provides MWW with coverage of 60% of monthly earnings (but not more than
$10,000, which amount may be reduced by deductible sources of income and
disability earnings) after a 26 weeks elimination (waiting) period, and the
insurer offers you a portable policy after termination. The Disability Insurance
Payment is an amount equal to 12 times the monthly premium for one of the
following, as MWW may elect: (i) a portable long-term disability policy through
the Company's insurer (subject to acceptance by the insurer); (ii) an existing
long-term disability insurance policy or policies that MWW may currently have in
place; or (iii) a new personal long-term disability insurance policy obtained
through other than the Company's insurance policy. The Company will pay only
that pro-rated portion of the premium that 

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represents coverage equal to MWW's coverage under the group
long-term disability insurance plan as of the date of this Amendment.

1.7 The Severance Salary, Severance Bonus, Severance Benefits and the Gross-Up Payments (as defined in Section 4) provided hereunder are intended to comply with the exemption from Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), for involuntary separation arrangements set forth in Treasury Regulation Section 1.409A-1(b)(9). Accordingly, notwithstanding any other provision hereof, (i) no amount shall be payable to MWW hereunder in such event unless MWW's termination of employment constitutes a separation from service within the meaning of Section 409A of the Code, (ii) if the amount payable to MWW hereunder in such event shall exceed two times the lesser of (A) MWW's annual compensation (as defined in Treasury Regulation Section 1.415(d)(2)) for services provided to the Company as an employee for the calendar year preceding the calendar year in which such separation from service occurs, or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for such year, such amount shall be paid as otherwise specified in Section 1.2 and Section 4, provided that the amount in excess of the foregoing limitation shall be subject to the provisions of Section 3 and (iii) no payment may be made to MWW hereunder in such event later than December 31 of the second calendar year following the calendar year in which such separation from service occurs.

1.8 The Company shall indemnify MWW and hold MWW harmless, on an after-tax basis, from any taxes, costs, expenses, penalties, fines, interest or other liabilities that result from the application of Section 409A of the Code in connection with payments MWW receives under this Amendment, as long as MWW has complied with the terms of this CIC Agreement. Any such payments made under this Section shall be made on a grossed-up basis.

2. Definitions. The defined terms used herein have the following meanings:

2.1 "Cause" means that MWW (i) is convicted of a felony crime; (ii) willfully commits any act or willfully omits to take any action in bad faith and to the material detriment of the Company; (iii) commits an act of active and deliberate fraud against the Company; or (iv) materially breaches any term of the Agreement or any written policy of the Company which could expose the Company to significant damages (including, but not limited to breach of the Company's anti-discrimination or harassment policies) and fails to correct such breach within ten (10) days after written notice thereof.

2.2 "Change-in-Control" means (i) the acquisition, directly or indirectly, by any individual, entity or group, or a Person (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act")) of ownership of 30% or more of either (a) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (b) the combined Voting power of the then outstanding voting securities of the  

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Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); (ii) individuals who, as the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, as a member of the Incumbent Board, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; (iii) approval by the stockholders of the Company of a reorganization, merger or consolidation, in each case, unless, following such reorganization, merger or consolidation, (x) more than 50% of, respectively, the then outstanding shares of common stock of the Company resulting from such reorganization, merger or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger or consolidation of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and (y) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or (v) approval by the stockholders of the Company of the sale or other disposition of all or substantially all of the assets of the Company.

2.3 "Related to" a "Change-in-Control" means the reason for MWW's termination of employment is the Change-in-Control or a reason connected with the Change-in-Control regardless of whether the decision to terminate your employment and/or the effective date of your termination is prior to or after the effective date of the Change-in-Control. There shall be a presumption that any termination of employment that is within 30 days prior to, or within 18 months after, the effective date of a Change-in-Control, is related to a "Change-in-Control." However, if the effective date of the termination of employment is eighteen months (18) or more after the effective date of a Change-in-Control, the termination of employment will be deemed to be unrelated to the Change-in-Control.

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2.4 "Resignation with Good Reason" means MWW giving notice of MWW's resignation as a result of (i) a reduction in MWW's base salary or the cap, if any, on MWW's incentive pay; (ii) the assignment to MWW of any duties inconsistent in any material respect with MWW's position (including status, offices, titles and reporting requirements), authority, duties or responsibilities which result in a material diminution in such position, authority, duties or responsibilities, whether immediately prior to or after the occurrence of a Severance Event; (iii) the taking of any action by the Company which would adversely affect MWW's participation in, or materially reduce MWW's benefits under any plans, including incentive pay plans or programs, offered by the Company prior to the Severance Event; or (iv) in the event of and after the occurrence of a Severance Event, the Company's requiring MWW to be based at any office or location other than in New York City or Long Island, New York, or London, U.K. MWW must provide notice to the Company of the existence of any of the conditions described in clauses (i) through (iv) above within a period of 90 days of the initial existence of such condition and the Company shall have a period of 30 days following receipt of such notice during which it may remedy such condition. In the event of MWW's failure to deliver timely notice as set forth herein or in the event of the Company's timely remedy of any condition described in clause (i) through (iv) MWW shall not be entitled to a Resignation with Good Reason.

3. Delayed Payment Under Section 409A. Notwithstanding anything in Section 1 or Section 4 to the contrary, in the event that MWW becomes entitled to payment of cash compensation under Section 1 or Section 4 that is not exempt from the requirements of Section 409A of the Internal Revenue Code of 1986 (the "Code"), as amended, including any amount in excess of the limitation set forth in Section 1.7, (i) if MWW is considered to be a "key employee" for purposes of Section 409A with respect to such payment, then (A) payment shall not commence until the end of the six (6) month period beginning on MWW's "separation from service date" (within the meaning of Section 409A of the Code) and (B) the aggregate amount of payments that would have been made during such six (6) month period but for the application of this Section 3 will be paid in a lump sum at the end of such period; or (ii) if MWW is not a "key employee," then payment shall not commence until MWW has incurred a separation from service within the meaning of Section 409A of the Code.

4. Golden Parachute Excise Tax.

4.1 Limitation or Additional Payment. In the event that any portion of the payments and benefits provided to MWW under this CIC Agreement and any other payments and benefits under any other agreement with or plan of the Company (in the aggregate, "Total Payments") would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the "Excise Tax"), then (4.1(a)) or (4.2(b)) below shall apply:

(a) In the event that the Total Payments (without regard to this Section 4) do not exceed 115% of the maximum amount that could be paid to MWW without becoming subject to the Excise Tax, then notwithstanding anything in this CIC
Agreement to the contrary the amount payable to you 

5

 

under Section 1 above shall be reduced such that the value of
the aggregate Total Payments that MWW is entitled to receive shall be one dollar
($1) less than such maximum amount.

(b) In the event that the Total Payments (without regard to this Section 4) exceed 115% of the maximum amount that could be paid to MWW without becoming subject to the Excise Tax, then MWW shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount that will place MWW in substantially the same after-tax economic position that MWW would have enjoyed if the Excise Tax had not applied to the Total Payments.

4.2 Determination by Accounting Firm. Subject to the provisions of Section 4.3 below, all determinations required to be made under this Section 4, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company's independent auditors or such other certified public accounting firm reasonably acceptable to MWW as may be designated by the Company (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and MWW. Any Gross-Up Payment, as determined pursuant to this Section 4, shall be paid by the Company to MWW as soon as practicable following the date on which MWW provides the Company evidence of payment of the taxes covered by the Gross-Up Payment, but no later than the end of the taxable year following the end of MWW's taxable year in which MWW remits such taxes. Any determination by the Accounting Firm shall be binding upon the Company and MWW. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment"), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 4.3 and MWW is thereafter required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for MWW's benefit.

4.3 Company's Right to Contest Excise Tax. MWW agrees to notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after MWW is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. MWW shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which MWW gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies MWW in writing prior to the expiration of such period that it desires to contest such claim, MWW agrees to:

6

 

(a) give the Company any information reasonably requested by the Company relating to such claim,

(b) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;

(c) cooperate with the Company in good faith in order to effectively contest such claim, and

(d) permit the Company to participate in any proceedings relating to such claim.

Without limitation on the foregoing provisions of this Section 4.3, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearing and conferences with the taxing authority in respect of such claim. The Company may, at its sole option, either direct MWW to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and MWW agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs MWW to pay such claim and sue for a refund, the Company shall reimburse the amount of such payment to MWW, on an after-tax and interest-free basis (the "Reimbursement"). The Company's control of the contest related to the claim shall be limited to the issues related to the Gross-Up Payment and MWW shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or other taxing authority. If the Company does not timely notify MWW in writing of its desire to contest the claim, the Company shall pay MWW an additional Gross-Up Payment in respect of the excess parachute payments that are the subject of the claim, and MWW agrees to pay the amount of the Excise Tax that is the subject of the claim to the applicable taxing authority in accordance with applicable law.

4.4 Repayment to the Company. If, after your receipt of a Reimbursement pursuant to Section 4.3, MWW becomes entitled to receive any refund with respect to the claim to which the Reimbursement relates, MWW shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after MWW's receipt of a Reimbursement pursuant to Section 4.3, a determination is made that MWW is not entitled to any refund with respect to such claim and the Company does not notify MWW in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then the Reimbursement shall be forgiven and shall not be required to be repaid and the amount of such reimbursement shall offset the amount of the additional Gross-Up Payment then required to be paid to MWW.

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4.5 Further Assurances. The Company shall indemnify MWW and hold MWW harmless, on an after-tax basis, from any costs, expenses, penalties, fines, interest or other liabilities ("Losses") incurred by MWW with respect to the exercise by the Company of any of its rights under Section 4, including, without limitation, any Losses related to the Company's decision to contest a claim or any imputed income to MWW resulting from any Advance or action taken on MWW's behalf by the Company pursuant to this Section 4. The Company shall pay all legal fees and expenses incurred under this Section 4 and shall promptly reimburse MWW for the reasonable expenses MWW may incur in connection with any actions taken by the Company or required to be taken by MWW under this Section 4. The Company also shall pay all of the fees and expenses of the Accounting Firm.

5. Term. 

(a) Subject to Section 5(b) below, this CIC Agreement shall continue in effect until the earlier of (i) August 31, 2010, or (ii) the date of termination of the Employment Agreement by the Company pursuant to Sections 9(a), 9(b), or 9(c) of the Employment Agreement.

(b) Notwithstanding the foregoing, if there is a Change-in-Control while MWW is employed by the Company, then the term of this CIC Agreement shall automatically be extended for an additional period of two years from the date of such Change-in-Control.

6. Miscellaneous.

6.1 The Employment Agreement and this CIC Agreement set forth the entire agreement between the parties hereto as to the subject matter herein and therein, and cannot be amended, modified or terminated except by an agreement in writing executed by the parties hereto. Notwithstanding the foregoing, the Company may amend this CIC Agreement, without MWW's consent, in such manner as the Company may determine, in its sole discretion, to be necessary for such CIC Agreement to comply with, or be exempt from, Section 409A. Any such amendment shall be delivered to MWW promptly upon adoption.

6.2 In the event that any provision of this Amendment is invalid, illegal or unenforceable, the remainder of hereof shall be construed without taking into effect such invalid, illegal or unenforceable provision.

6.3 This CIC Agreement shall be governed by the laws of the State of New York without regard to the principles of the conflicts of laws of such state.

6.4 This CIC Agreement may be executed in several counterparts or by separate instruments and by facsimile transmission and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

6.5 In the event MWW brings any action or proceeding to enforce MWW's rights under this CIC
Agreement, the Company shall be required to reimburse MWW 

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for the reasonable fees and costs of MWW's counsel in the
event MWW prevails in such action or proceeding.

6.6 This CIC Agreement shall be assumed by all successors in interest to the Company.

IN WITNESS WHEREOF, this CIC Agreement has been duly executed as of the date first written above.

	
CHYRON CORPORATION

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Christopher Kelly

	
 
	
Name:
	
Christopher Kelly

	
 
	
Title:
	
Chairman

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
/s/ Michael Wellesley-Wesley

	
 
	
Michael Wellesley-Wesley

9

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