Document:

Merger Agreement Between Summit America Television, Inc.

 Exhibit 10.21 
  

  
 AGREEMENT AND PLAN OF MERGER 
  
 between

  
 SUMMIT AMERICA TELEVISION, INC. 
  
 and 
  
 THE E.W. SCRIPPS COMPANY 
  

  
 December 18, 2003

  

 TABLE OF CONTENTS 
  

			
	 	  	Pages

	 ARTICLE I. DEFINITIONS
	  	1
	 Section 1.1 Definitions
	  	1
		
	 ARTICLE II. MERGER; CLOSING
	  	7
	 Section 2.1 Merger
	  	7
	 Section 2.2 Closing
	  	7
	 Section 2.3 Effectiveness of Merger
	  	8
	 Section 2.4 Effect of the Merger
	  	8
	 Section 2.5 Conversion and Exchange of Stock
	  	8
	 Section 2.6 Closing of Transfer Books
	  	9
	 Section 2.7 Surrender of Certificates
	  	9
	 Section 2.8 Further Action
	  	10
		
	 ARTICLE III. REPRESENTATIONS AND WARRANTIES OF COMPANY
	  	10
	 Section 3.1 Organization and Good Standing
	  	10
	 Section 3.2 Authority; No Conflict
	  	11
	 Section 3.3 Capitalization
	  	12
	 Section 3.4 Financial Statements; SEC Compliance
	  	13
	 Section 3.5 Books and Records
	  	14
	 Section 3.6 Facilities
	  	15
	 Section 3.7 Condition and Sufficiency of Assets
	  	15
	 Section 3.8 Accounts Receivable
	  	16
	 Section 3.9 Inventory
	  	16
	 Section 3.10 No Undisclosed Liabilities
	  	16
	 Section 3.11 Taxes
	  	16
	 Section 3.12 Employee Benefits
	  	18
	 Section 3.13 Compliance; Governmental Authorizations
	  	23
	 Section 3.14 Legal Proceedings; Orders
	  	24
	 Section 3.15 Absence of Certain Changes and Events
	  	25
	 Section 3.16 Contracts; No Defaults
	  	26
	 Section 3.17 Insurance
	  	29
	 Section 3.18 Environmental Matters
	  	30
	 Section 3.19 Employees
	  	31
	 Section 3.20 Labor Relations; Compliance
	  	31
	 Section 3.21 Intellectual Property
	  	32
	 Section 3.22 Certain Payments
	  	34
	 Section 3.23 FCC Licenses; Operations of Licensed Facilities
	  	34
	 Section 3.24 Relationships with Affiliates
	  	35
	 Section 3.25 Indemnification Obligations
	  	35

  

 -i- 

			
	 Section 3.26 Proxy Statement
	  	35
	 Section 3.27 Brokers or Finders
	  	36
	 Section 3.28 Disclosure
	  	36
		
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF PARENT
	  	36
	 Section 4.1 Organization and Good Standing
	  	36
	 Section 4.2 Authority; No Conflict
	  	37
	 Section 4.3 Certain Proceedings
	  	37
	 Section 4.4 Proxy Statement Preparation
	  	37
	 Section 4.5 Brokers or Finders
	  	37
		
	 ARTICLE V. COVENANTS OF COMPANY PRIOR TO CLOSING DATE
	  	37
	 Section 5.1 Access and Investigation
	  	37
	 Section 5.2 Operation of the Business
	  	37
	 Section 5.3 Negative Covenant
	  	38
	 Section 5.4 Notification
	  	38
	 Section 5.5 Reasonable Best Efforts
	  	38
	 Section 5.6 No Solicitation
	  	38
	 Section 5.7 Preparation of Proxy Statement
	  	41
	 Section 5.8 Shareholders Meeting
	  	42
	 Section 5.9 Options
	  	42
	 Section 5.10 Rights Plan. Prior to January 15, 2004
	  	42
		
	 ARTICLE VI. COVENANTS OF PARENT PRIOR TO CLOSING DATE
	  	42
	 Section 6.1 Reasonable Best Efforts
	  	42
	 Section 6.2 Preparation of Proxy Statement
	  	42
		
	 ARTICLE VII. MISCELLANEOUS COVENANTS
	  	42
	 Section 7.1 Required Approvals
	  	42
	 Section 7.2 Hart-Scott-Rodino
	  	43
	 Section 7.3 FCC Actions
	  	43
	 Section 7.4 Indemnification of Officers and Directors
	  	44
		
	 ARTICLE VIII. CONDITIONS PRECEDENT TO EACH PARTY’S
	  	44
		
	 OBLIGATION TO CLOSE
	  	44
	 Section 8.1 Consents
	  	44
	 Section 8.2 HSR Act
	  	44
	 Section 8.3 Shareholder Approval
	  	44
	 Section 8.4 No Proceedings
	  	44
	 Section 8.5 No Prohibition
	  	44
	 Section 8.6 No Injunction
	  	45

  

 -ii- 

			
	 ARTICLE IX. CONDITIONS PRECEDENT TO PARENT’S OBLIGATION TO CLOSE
	  	45
	 Section 9.1 Accuracy of Representations
	  	45
	 Section 9.2 Company’s Performance
	  	45
	 Section 9.3 Additional Documents
	  	45
	 Section 9.4 Indebtedness
	  	45
	 Section 9.5 FCC Actions
	  	46
		
	 ARTICLE X. CONDITIONS PRECEDENT TO COMPANY’S OBLIGATION TO CLOSE
	  	46
	 Section 10.1 Accuracy of Representations
	  	46
	 Section 10.2 Parent’s Performance
	  	46
	 Section 10.3 Additional Documents
	  	46
	 Section 10.4 FCC Actions
	  	46
		
	 ARTICLE XI. TERMINATION
	  	47
	 Section 11.1 Termination of Agreement
	  	47
	 Section 11.2 Effect of Termination
	  	48
		
	 ARTICLE XII. INDEMNIFICATION; REMEDIES
	  	48
	 Section 12.1 Survival
	  	48
	 Section 12.2 Indemnification by Company
	  	48
	 Section 12.3 Indemnification by Parent
	  	49
		
	 ARTICLE XIII. GENERAL PROVISIONS
	  	49
	 Section 13.1 Expenses; Attorneys’ Fees
	  	49
	 Section 13.2 Public Announcements
	  	49
	 Section 13.3 Confidentiality
	  	49
	 Section 13.4 Notices
	  	49
	 Section 13.5 Jurisdiction; Service Of Process
	  	50
	 Section 13.6 Further Assurances
	  	50
	 Section 13.7 Waiver
	  	51
	 Section 13.8 Entire Agreement and Modification
	  	51
	 Section 13.9 Schedules
	  	51
	 Section 13.10 Assignments, Successors, and No Third-Party Rights
	  	51
	 Section 13.11 Severability
	  	52
	 Section 13.12 Section Headings, Construction
	  	52
	 Section 13.13 Governing Law
	  	52
	 Section 13.14 Counterparts
	  	52

  

 -iii- 

  
 AGREEMENT AND PLAN OF
MERGER 
  
 This Agreement is made as of December 18, 2003,
between The E.W. Scripps Company, an Ohio corporation (“Parent”), and Summit America Television, Inc., a Tennessee corporation (“Company”). 
  
 RECITALS 
  
 1. Parent desires to acquire the business and properties of Company by means of a taxable merger of a Tennessee corporation to be formed and to be wholly
owned by Parent (“Merger Sub”) with and into Company on the terms and conditions set forth herein and in the Articles of Merger substantially in the form attached hereto as Exhibit 1A (the “Articles of Merger”).

  
 2. The separate existence of Merger Sub shall cease at the
Effective Time (as hereinafter defined) and Company shall thereafter survive as a wholly owned subsidiary of Parent. 
  
 3. Concurrent with the execution and delivery of this Agreement, certain shareholders of Company have executed and delivered to Parent a Voting Agreement
dated as of the date hereof, in substantially the form of Exhibit 1B (the “Voting Agreement”) under which such shareholders, among other things, have agreed to vote in favor of the Merger. 
  
 AGREEMENTS 
  
 The parties, intending to be legally bound, agree as follows: 
  
 ARTICLE I. DEFINITIONS 
  
 Section 1.1 Definitions. For purposes of this Agreement,
the following terms have the meanings specified in this Section: 
  
 “1934 Act” means the Securities Exchange Act of 1934, as amended, or any successor law, and rules and regulations issued pursuant thereto. 
  
 “Acquisition Proposal” is defined in
Section 5.6(a). 
  
 “Affiliate” means, with respect to any Person, any other Person (a) that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with such Person, (b) that is a
general partner, director, manager, trustee or principal officer of, or a limited partner owning more than 10% of, or that serves in a similar capacity with respect to, such Person, or (c) of which such Person is a general partner, director,
manager, trustee or principal officer or a limited partner owning more than 10% of, or with respect to which such Person serves in a similar capacity. For purposes of this definition, “control” means the possession, directly or indirectly,
of the power to direct or to cause the direction of the 

 
management or policies of the Person in question through the ownership of voting securities or by contract or otherwise. 
  
 “Articles of Merger” is defined in the
Recitals. 
  
 “Break-Up Fee” is
defined in Section 5.6(b). 
  
 “Closing” is defined in Section 2.2. 
  
 “Closing Date” means the date and time as of which the Closing actually takes place. 
  
 “Communications Act” means the Communications Act of 1934, as amended and the rules and regulations promulgated
thereunder. 
  
 “Company” is
defined in the first paragraph of this Agreement. 
  
 “Company Stock Option” is defined in Section 2.5(h). 
  
 “Confidentiality Agreement” means the Confidentiality Agreement between Parent and Company dated September 26, 2003.

  
 “Consent” means any
approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization). 
  
 “Contemplated Transactions” means all of the transactions contemplated by this Agreement, including: (a) the merger of
Merger Sub into Company, (b) the execution, delivery, and performance of this Agreement and the Articles of Merger; and (c) the performance by Parent and Company of their respective covenants and obligations under this Agreement. 
  
 “Contract” means any agreement, contract,
obligation, promise, or undertaking (whether written or oral and whether express or implied). 
  
 “Damages” is defined in Section 12.2. 
  
 “Effective Time” means Section 2.3. 
  
 “Encumbrance” means any charge, claim,
community property interest, condition, equitable interest, lien, option, pledge, security interest, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other
attribute of ownership. 
  
 “Environment” means soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins, and wetlands), groundwater, drinking water supply, stream sediments,
ambient air (including indoor air), plant and animal life, and any other environmental medium or natural resource. 
  

 -2- 

 “Environmental, Health, and Safety Liabilities” means any cost, damages,
liability or other obligation arising under Environmental Law or Occupational Safety and Health Law and consisting of or relating to: (a) environmental, health, or safety matters or conditions (including on-site or off-site contamination,
occupational safety and health, and regulation of chemical substances or products); (b) any fines, penalties, judgments, awards, settlements, legal or administrative proceedings, damages, losses, claims, demands and response, investigative,
remedial, or inspection costs and expenses arising under Environmental Law or Occupational Safety and Health Law; (c) any financial responsibility under Environmental Law or Occupational Safety and Health Law for cleanup costs or corrective action,
including any investigation, cleanup, removal, containment, or other remediation or response actions (“Cleanup”) required by applicable Environmental Law or Occupational Safety and Health Law (whether or not such Cleanup has been
required or requested by any Governmental Body or other Person) and for any natural resource damages; or (d) any other compliance, corrective, investigative, or remedial measures required under Environmental Law or Occupational Safety and Health
Law. The terms “removal,” “remedial,” and “response action” include the types of activities covered by the U.S. Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C.
§9601 et seq., as amended. 
  
 “Environmental Law” means any Legal Requirement that requires or relates to: (a) advising appropriate authorities, employees, and the public of intended or actual releases of pollutants or hazardous substances or materials,
violations of discharge limits, or other prohibitions and of the commencements of activities that could have significant impact on the Environment; (b) preventing or reducing to acceptable levels the release of pollutants or hazardous substances or
materials into the Environment; (c) reducing the quantities, preventing the release, or minimizing the hazardous characteristics of wastes that are generated; (d) assuring that products are designed, formulated, packaged, and used so that they do
not present unreasonable risks to human health or the Environment when used or disposed of; (e) protecting resources, species, or ecological amenities; (f) reducing to acceptable levels the risks inherent in the transportation of hazardous
substances, pollutants, oil, or other potentially harmful substances; (g) cleaning up pollutants that have been released, preventing the threat of release, or paying the costs of such clean up or prevention; or (h) making responsible parties pay
private parties for damages done to their health or the Environment, or permitting self-appointed representatives of the public interest to recover for injuries done to public assets. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor law, and
rules and regulations issued pursuant to thereto. 
  
 “Facilities” means any real property and any buildings, plants, structures, towers, studios, transmitters or other equipment affixed to real property currently (or at any time formerly) owned, occupied, leased, licensed,
used or operated by Company or any Subsidiary. 
  
 “FCC” means the Federal Communications Commission. 
  
 “GAAP” means generally accepted United States accounting principles, applied on a consistent basis. 
  

 -3- 

 “Governmental Authorization” means any approval, consent, license,
permit, waiver, or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement. 
  
 “Governmental Body” means any: (a) nation, state, county, city, town, village, district, or
other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any
court or other tribunal); (d) multi-national organization or body; or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature. 
  
 “HSR Act” is defined in Section 7.2.

  
 “Hazardous Activity” means
the distribution, generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage, transfer, transportation, treatment, or use (including any withdrawal or other use of groundwater) of Hazardous
Materials in, on, under, about, or from the Facilities or any part thereof into the Environment, and any other act, business, operation, or thing that increases the danger, or risk of danger, or poses an unreasonable risk of harm to persons or
property on or off the Facilities, or that may affect the value of the Facilities or Company or any Subsidiary. 
  
 “Hazardous Materials” means any waste or other substance that is listed, defined, designated, or classified as, or
otherwise determined to be, hazardous, radioactive, or toxic or a pollutant or a contaminant under any Environmental Law, including any admixture or solution thereof. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended and in effect from time to time,
or any successor law, and all rules and regulations promulgated by the IRS pursuant thereto. 
  
 “IRS” means the U.S. Internal Revenue Service or any successor agency, and, to the extent relevant, the U.S. Department
of the Treasury. 
  
 “Indemnitees” is defined in Section 7.3. 
  
 “Intellectual Property Assets” is defined in Section 3.21. 
  
 An individual will be deemed to have “Knowledge” of a particular fact or matter if he or she is actually aware of such fact or matter or
if a prudent individual could be expected to discover or otherwise become aware of such fact or matter in the course of conducting a reasonably comprehensive investigation concerning the existence of such fact or matter. A Person other than an
individual will be deemed to have “Knowledge” of a particular fact or matter if any individual who is serving as a director, executive officer, member, governor, manager (with respect to a partnership or limited liability company),
partner, executor, or trustee of such Person (or in any similar capacity) has, or at any time had, Knowledge of such fact or matter in accordance with the preceding sentence. 
  

 -4- 

 “Legal Requirement” means any Order, constitution, law, ordinance,
principle of common law, rule, regulation, statute, or treaty of any Governmental Body. 
  
 “Merger” is defined in Section 2.1. 
  
 “Merger Consideration” means the consideration to be provided in exchange for common stock,
Series A Preferred Stock, or Series D Preferred Stock of the Company in accordance with Section 2.5. 
  
 “Merger Sub” is defined in the Recitals. 
  
 “Occupational Safety and Health Law” means any Legal Requirement designed to provide safe
and healthful working conditions and to reduce occupational safety and health hazards, and any program, whether governmental or private (including those promulgated or sponsored by industry associations and insurance companies), designed to provide
safe and healthful working conditions. 
  
 “Order” means any award, decision, injunction, judgment, order, ruling, subpoena or verdict entered, issued, made, or rendered by any court, administrative agency or other Governmental Body or by any arbitrator. 

 
 “Ordinary Course of Business” means an
action taken by a Person only if: (a) such action is consistent with the past practices of such Person and is taken in the ordinary course of such Person’s normal day-to-day operations; (b) such action is not required to be authorized by such
Person’s board of directors or managers (or by any Person or group of Persons exercising similar authority) and is not required to be specifically authorized by such Person’s parent company (if any) or other equity holders; and (c) such
action is similar in nature and magnitude to actions customarily taken, without any authorization by the board of directors or managers (or by any Person or group of Persons exercising similar authority) in the ordinary course of the normal
day-to-day operations of other Persons that are in the same line of business as such Person. 
  
 “Organizational Documents” means (a) the articles or certificate of incorporation and bylaws or code of regulations of a
corporation; or (b) the articles of organization or certificate of formation or similar document and the limited liability company agreement or operating agreement or similar document of a limited liability company; (c) any charter or similar
document adopted or filed in connection with the creation, formation, or organization of a Person; and (d) any amendment to any of the foregoing. 
  
 “Parent” is defined in the first paragraph of this Agreement. 
  
 “Paying Agent” is defined in Section
2.7(a). 
  
 “Payment Fund”
is defined in Section 2.7(b). 
  

 -5- 

 “Person” means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, labor union, or other entity or Governmental Body. 
  
 “Plan” is defined in Section 3.13. 
  
 “Proceeding” means any action, arbitration,
audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator. 

 
 “Proxy Statement” is defined in
Section 5.8. 
  
 “Release” means any spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether intentional or unintentional. 
  
 “Representative” means with respect to a
particular Person, any director, officer, member, manager, employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, and financial advisors. 
  
 “Scripps SAH Companies” means The Scripps
Shop At Home Holding Company and Shop At Home Network, LLC. 
  
 “SEC” means the U.S. Securities and Exchange Commission or any successor Governmental Body. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any successor law, and rules and regulations issued
pursuant thereto. 
  
 “Shareholder
Approval” is defined in Section 5.7. 
  
 “Shareholders Meeting” is defined in Section 5.8. 
  
 “Shareholders Vote” is defined in Section 5.8. 
  
 “Subsidiary” means any corporation, more than 20% of whose stock of any class or classes
having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is or was since 1986 owned by Company and/or one or more Subsidiaries of Company and (b) any limited liability company, partnership, association, joint venture, or other entity in which Company and/or one or more
Subsidiaries has or had since 1986 greater than a 20% equity interest, but excluding the Scripps SAH Companies. 
  
 “Superior Proposal” is defined in Section 5.6(a). 
  
 “Surviving Corporation” is defined is Section 2.1. 
  

 -6- 

 “Tax” means (a) any net income, alternative or add-on minimum tax, gross
income, gross receipts, sales, use, ad valorem, value added, franchise, profits, license or withholding on amounts paid to or by Company or any Subsidiary, payroll, employment, excise, severance, stamp occupation, premium, property, environmental or
windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any Governmental Body responsible
for the imposition of any such tax (domestic or foreign), (b) any liability of Company or any Subsidiary for the payment of any amounts of the type described in clause (a) as a result of being a member of an affiliated, consolidated, combined or
unitary group for any period prior to the Closing Date, and (c) any liability of Company or any Subsidiary for the payment of any amounts of the type described in clause (a) as a result of any express or implied obligation to indemnify any other
Person. 
  
 “Tax Return” means
any return (including any information return), report, statement, schedule, notice, form, or other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance with any Legal Requirement relating to any Tax. 
  
 “TBCA” means the Tennessee Business
Corporation Act. 
  
 A claim, Proceeding,
dispute, action, or other matter will be deemed to have been “Threatened” if any demand or statement has been made (in writing) or any notice has been given (in writing), or if any other event has occurred or any other circumstances
exist, that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action, or other matter is likely to be asserted, commenced, taken, or otherwise pursued in the future. 
  
 “Voting Agreement” is defined in the
Recitals. 
  
 ARTICLE II. MERGER; CLOSING 
  
 Section 2.1 Merger. On and subject to the terms and
conditions of this Agreement, at the Effective Time, Merger Sub will merge with and into Company, the separate corporate existence of Merger Sub will cease and Company will thereafter continue as the surviving corporation (the “Surviving
Corporation”) in the merger (the “Merger”). 
  
 Section 2.2 Closing. The closing of the Contemplated Transactions (the “Closing”) will take place at the offices of Bone McAllester Norton PLLC at 511 Union Street, Suite 1600, Nashville, Tennessee,
37219, at 10:00 a.m. (local time) five days after satisfaction of the conditions set forth in Sections 8.1, 8.2, 8.3, and 8.4, or at such other time and place as the parties may agree. 
  

 -7- 

 Section 2.3 Effectiveness of Merger. On the Closing Date, subject to the
satisfaction or waiver of all conditions to the obligations of the parties to consummate the Merger, (a) Merger Sub and Company shall execute and deliver the Articles of Merger and file such Articles of Merger and, if required by law, this
Agreement, with the Secretary of State of the State of Tennessee pursuant to TBCA §48-21-107. The Merger will become effective as of the filing of the Articles of Merger with the Secretary of State of the State of Tennessee or at such later
date and time as may be specified in the Articles of Merger (the “Effective Time”). 
  
 Section 2.4 Effect of the Merger. 
  
 (a) The Merger will have the effect set forth in the TBCA. The Surviving Corporation shall, after the Effective Time, take all action
(including executing and delivering any document) in its name and on its behalf in order to carry out and effectuate the Contemplated Transactions. 
  
 (b) The charter of Merger Sub shall be the charter of the Surviving Corporation until thereafter amended as provided therein and in
accordance with the TBCA. The by-laws of Merger Sub in effect immediately prior to the Effective Time shall become the by-laws of the Surviving Corporation until thereafter amended as provided therein and in accordance with the TBCA. The officers
and directors of Merger Sub immediately prior to the Effective Time will be the officers and directors of the Surviving Corporation and shall serve until their successors have been duly elected or appointed and qualified or until their earlier
death, resignation or removal in accordance with the Surviving Corporation’s charter and by-laws and the TBCA. 
  
 Section 2.5 Conversion and Exchange of Stock. At the Effective Time, by virtue of the Merger, and without any action on the part of
Merger Sub, Company or Parent, or any holder of Company common stock or preferred stock: 
  
 (a) Each share of common stock of Merger Sub outstanding immediately prior to the Effective Time, by virtue of the Merger and without any
action on the part of Parent, shall be converted into and exchanged for one validly issued, fully paid, and nonassessable share of common stock of the Surviving Corporation. 
  
 (b) Each share of common stock, $.0025 par value per share, of Company issued and outstanding immediately
prior to the Effective Time (other than any share of common stock of the Company subject to Section 2.5(e)) will be exchanged for the right to receive cash in the amount of $4.05. 
  
 (c) Each share of Series A Preferred Stock, $10.00 par value per share, of Company issued and outstanding
immediately prior to the Effective Time (other than any share of Series A Preferred Stock of the Company subject to Section 2.5(e)) will be exchanged for the right to receive cash in an amount equal to the Liquidation Preference (as defined
in Company’s Charter) of such share in accordance with Company’s Charter. 
  
 (d) Each share of Series D Preferred Stock, $10.00 par value per share, of Company issued and outstanding immediately prior to the
Effective Time will be converted into one share of Preferred Stock, $10 par value per share, of the Surviving Corporation. 
  

 -8- 

 (e) Each share of common stock, Series A Preferred Stock and Series D Preferred Stock of
Company owned by Company immediately prior to the Effective Time shall be cancelled and retired without any conversion thereof and no payment or distribution shall be made with respect thereto. 
  
 (f) As a result of the Merger and without any action on the
part of the holder thereof, at the Effective Time, all shares of common stock, Series A Preferred Stock and Series D Preferred Stock of Company shall cease to be outstanding and shall be cancelled and retired and each holder thereof shall thereafter
cease to have any rights with respect to such shares of stock of Company except the right to receive, without interest, the Merger Consideration in accordance with this Section 2.5 upon the surrender of a certificate representing such shares.

  
 (g) At the Effective Time, all outstanding
options to purchase shares of common stock of Company (each, a “Company Stock Option”) then outstanding and unexercised shall be converted into and represent a right to acquire shares of common stock of Surviving Corporation on
identical terms, except that the number of shares underlying each such Company Stock Option shall be an amount representing a percentage of common stock of the Surviving Corporation substantially equal to the percentage of Company common stock
underlying such Company Stock Option on a fully diluted basis. 
  
 Section 2.6 Closing of Transfer Books. At the Effective Time, the stock transfer books of Company will be closed with respect to all shares of common stock and preferred stock of Company outstanding immediately prior to
the Effective Time. No further transfer of any such shares of common stock or preferred stock shall be made on such stock transfer books after the Effective Time. If, after the Effective Time, a valid Company stock certificate is presented to the
Paying Agent or to Parent, such stock certificate shall be cancelled and surrendered for cash as provided in Section 2.7. 
  
 Section 2.7 Surrender of Certificates. 
  
 (a) Promptly after the Effective Time, Parent shall deposit, or shall cause to be deposited, with Parent’s Corporate Secretary or a
third party selected by Parent (the “Paying Agent”), cash sufficient to pay the cash consideration under Section 2.5(b) and (c). The cash amounts so deposited with the Paying Agent are referred to collectively as the
“Payment Fund.” 
  
 (b) As soon
as reasonably practicable after the Effective Time, the Paying Agent shall mail to the record holders of common stock and Series A Preferred Stock of Company (i) a letter of transmittal in customary form and containing such provisions as Parent may
reasonably specify (including a provision confirming that delivery of stock certificates shall be effected, and risk of loss and title to stock certificates shall pass, only upon delivery of such stock certificates to the Paying Agent), and (ii)
instructions for use in effecting the surrender of stock certificates in exchange for cash. Upon surrender to the Paying Agent of a stock certificate for common stock or Series A Preferred Stock of Company, together with a duly executed letter of
transmittal, and such other documents as may be reasonably required by the Paying Agent or Parent, (i) the holder of such stock certificate shall be entitled to receive in exchange therefor the cash consideration that such holder has the right to
receive pursuant to the provisions of Section 2.5(b) or (c), and (ii) the stock certificate so surrendered shall be cancelled. Until surrendered as contemplated by 

  

 -9- 

 
this Section 2.7, each stock certificate shall be deemed, from and after the Effective Time, to represent only the right to receive the Merger
Consideration as contemplated by Section 2.5. If any stock certificate shall have been lost, stolen or destroyed, Parent may, in its discretion and as a condition precedent to the issuance of any Merger Consideration, require the owner of
such lost, stolen or destroyed stock certificate to provide an appropriate affidavit and to deliver a bond (in such sum as Parent may reasonably direct) as indemnity against any claim that may be made against the Paying Agent or Parent with respect
to such stock certificate. In the event that any shares of common stock or preferred stock of Company to be exchanged hereunder secure any indebtedness owing to Company, the cash consideration which the holder of such shares is entitled to receive
shall be reduced by the amount of such indebtedness. In addition, at the request of an option holder electing to exercise options contemporaneously with the Effective Time, the cash consideration which such holder is entitled to receive for the
shares of common stock underlying such options shall be reduced by the amount of the exercise price of such options. 
  
 (c) Any portion of the Payment Fund that remains undistributed to holders of stock certificates of Company as of the date 180 days after
the Effective Time shall become the general funds of Parent. 
  
 (d) The Paying Agent shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable pursuant to this Agreement to any holder or former holder of common stock or preferred stock of
Company such amounts as may be required to be deducted or withheld therefrom under the IRC or any provision of state, local or foreign tax law or under any other applicable Legal Requirement. To the extent such amounts are so deducted or withheld,
such amounts shall be treated for all purposes under this Agreement as having been paid to the Person to whom such amounts would otherwise have been paid. 
  
 (e) Neither Parent nor the Surviving Corporation shall be liable to any holder or former holder of common stock or preferred stock of
Company or to any other Person for any cash amounts delivered to any public official pursuant to any applicable abandoned property law, escheat law or similar Legal Requirement. 
  
 Section 2.8 Further Action. If, at any time after the Effective Time, any further action is determined
by Parent to be necessary or desirable to carry out the purposes of this Agreement or to vest Parent with full right, title and possession of and to all rights and property of Company, the officers and directors of Parent shall be fully authorized
(in the name of Parent, in the name of Company or otherwise) to take such action. 
  
 ARTICLE III. REPRESENTATIONS AND WARRANTIES OF COMPANY 
  
 Company represents and warrants to Parent as follows: 
  
 Section 3.1 Organization and Good Standing. 
  

 -10- 

 (a) Company is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Tennessee, with full corporate power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform all its obligations under this
Agreement. Company is duly qualified to do business as a foreign corporation and is in good standing under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the
activities conducted by it, requires such qualification, except where the failure to be so qualified would not have a material adverse effect on Company. 
  
 (b) Each Subsidiary and its jurisdiction of organization is listed on Schedule 3.1(b). Each Subsidiary is duly organized, validly
existing, and in good standing under the laws of its jurisdiction of organization, with full power and authority to conduct its business as it is now being conductions and to own or use the properties and assets that it purports to own. Each
Subsidiary is duly qualified to do business as a foreign entity and is in good standing under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification, except where the failure to be so qualified would not have a material adverse effect on such Subsidiary. 
  
 (c) Company has delivered to Parent copies of its and each Subsidiary’s Organizational Documents, as currently in effect. 

 
 Section 3.2 Authority; No Conflict. 
  
 (a) This Agreement constitutes the legal, valid, and binding
obligation of Company, enforceable against Company in accordance with its terms. Company’s Board of Directors has approved the Contemplated Transactions and has resolved to recommend the Contemplated Transactions for Shareholder Approval.

  
 (b) Except as set forth in Schedule
3.2, neither the execution and delivery of this Agreement nor the consummation or performance of any of the Contemplated Transactions will, directly or indirectly (with or without notice or lapse of time): 
  
 (i) contravene, conflict with, or result in a violation of
(A) any provision of the Organizational Documents of Company, or (B) any resolution adopted by the board of directors or the shareholders of Company; 
  
 (ii) contravene, conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge any of
the Contemplated Transactions, or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which Company or a Subsidiary, or any of the assets owned or used by Company or a Subsidiary, may be subject; 
  
 (iii) contravene, conflict with, or result in a violation of
any of the terms of, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that is held by 

  

 -11- 

 
Company or a Subsidiary or that otherwise relates to the business of, or any of the assets owned or used by, Company or a Subsidiary; 
  
 (iv) cause Parent or Company or any Subsidiary to become
subject to, or to become liable for the payment of, any Tax; 
  
 (v) cause any of the assets owned or used by Company or a Subsidiary to be reassessed or revalued by any taxing authority or other Governmental Body; 
  
 (vi) contravene, conflict with, or result in a violation or breach of any provision of, or give any Person
the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any Contract to which Company or a Subsidiary is bound; 
  
 (vii) result in the imposition or creation of any
Encumbrance upon or with respect to any of the assets owned or used by Company or a Subsidiary; or 
  
 (viii) contravene, conflict with, or result in a violation, breach, or acceleration of any provision of any employment agreement between
Company or any Subsidiary and any employee of Company or such Subsidiary. 
  
 Except as set forth in Schedule 3.2, neither Company nor a Subsidiary is or will be required to give any notice to or obtain any Consent from any Person in connection with the execution and delivery of this Agreement or the
consummation or performance of any of the Contemplated Transactions. 
  
 (c) No provision of any Tennessee anti-takeover law applies to the Contemplated Transactions. 
  
 Section 3.3 Capitalization. 
  
 (a) Company. The classes and number of authorized shares of each class of capital stock of Company, the number of issued and
outstanding shares of such capital stock of Company, and the number of options, offers, warrants, conversion rights, agreements, or other rights to subscribe for or to purchase from Company shares of its capital stock are set forth on Schedule
3.3(a). Except as set forth on Schedule 3.3(a), Company has no other equity securities of any class issued, reserved for issuance, or outstanding. Except as set forth on Schedule 3.3(a), there are no outstanding options, offers,
warrants, conversion rights, agreements, or other rights to subscribe for or to purchase from Company shares of its capital stock. No shares of Company carry, and no shareholder of Company has been granted, any preemptive rights. Except as set forth
on Schedule 3.3(a), Company is not obligated under any provision of its Organizational Documents, or under any arrangement, Contract, plan, or understanding, to liquidate, redeem, or otherwise repurchase any equity or other securities of
Company. Other than this Agreement, except as set forth on Schedule 3.3(a), no arrangement, Contract, plan, or understanding exists pursuant to which Company has any obligation or any Person has any right relating to the issuance, sale, or
transfer of any equity or other securities of Company. Except with respect to the Scripps SAH Companies and the Subsidiaries, Company does not own, nor does it possess 

  

 -12- 

	 	 
any right under a Contract or otherwise to acquire, any equity or other securities of any Person or any direct or indirect equity or ownership interest in
any other business. 

  
 (b)
Subsidiaries. The classes and number of authorized shares of each class of capital stock of each Subsidiary, the number of issued and outstanding shares of such capital stock of each Subsidiary, and the number of options, offers, warrants,
conversion rights, agreements, or other rights to subscribe for or to purchase from each Subsidiary shares of its capital stock are set forth on Schedule 3.3(b). Schedule 3.3(b) sets forth the record and beneficial owner and
holder of all issued and outstanding shares of capital stock of each Subsidiary (the “Subsidiary Shares”). Except as set forth on Schedule 3.3(b), all of the Subsidiary Shares are held free and clear of all Encumbrances. All
of the issued and outstanding Subsidiary Shares are duly authorized, validly issued, fully paid, and non-assessable, and were issued in conformity with all applicable state and federal securities laws. No Subsidiary has any equity securities of any
class issued, reserved for issuance, or outstanding, other than its Subsidiary Shares. There are no outstanding options, offers, warrants, conversion rights, agreements, or other rights to subscribe for or to purchase from any Subsidiary shares of
its capital stock. No Subsidiary Shares carry, and no holder of any Subsidiary Shares has been granted, any preemptive rights. No Subsidiary is obligated under any provision of its Organizational Documents, or under any arrangement, Contract, plan,
or understanding, to liquidate, redeem, or otherwise repurchase any equity or other securities of such Subsidiary. No arrangement, Contract, plan, or understanding exists pursuant to which any Subsidiary has any obligation or any Person has any
right relating to the issuance, sale, or transfer of any equity or other securities of such Subsidiary. Except with respect to the Scripps SAH Companies and other Subsidiaries, no Subsidiary owns, or possesses any right under a Contract or otherwise
to acquire, any equity or other securities of any Person or any direct or indirect equity or ownership interest in any other business. 
  
 Section 3.4 Financial Statements; SEC Compliance. Since June 30, 1997, Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and
schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). A complete list of the SEC Documents is set forth on Schedule 3.4 and except to the extent available in
full without redaction on the SEC’s web site through EDGAR, Company has delivered to Parent copies of all SEC Documents, including all certifications and statements required in connection with the Sarbanes-Oxley Act of 2002. Company has also
delivered to Parent all comment letters received by Company from the SEC since January 1, 2001 and all responses to such comment letters by or on behalf of Company. As of their respective dates, the SEC Documents complied in all material respects
with the requirements of the 1934 Act. None of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, Company’s financial statements included in the SEC Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with GAAP (except as may be otherwise indicated in such financial statements or
the 

  

 -13- 

 
notes thereto, or in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly
present in all material respects the consolidated financial position of Company as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). No other information provided by or on behalf of Company to Parent that is not included in the SEC Documents contains any untrue statement of a material fact or omits to state any material fact necessary in order to make
the statements therein, in the light of the circumstance under which they are or were made, not misleading. Schedule 3.4 lists, and Company has delivered to Parent copies of documentation creating or governing, all securitization transactions
and off-balance sheet arrangements (as defined in Item 303(c) of Regulation S-K of the SEC) effected by Company or any Subsidiary since January 1, 2001. Deloitte & Touche, which has expressed its opinion with respect to the financial statements
of Company and its Subsidiaries included in the SEC Documents (including the related notes), is and has been throughout the periods covered by such financial statements (a) a registered public accounting firm as defined in Section 2(a)(12) of the
Sarbanes-Oxley Act of 2002), (y) “independent” with respect to Company within the meaning of Regulation S-X and, (z) with respect to Company, in compliance with subsections (g) through (l) of Section 10A of the 1934 Act and the related
rules of the SEC and the Public Company Accounting Oversight Board. Schedule 3.4 lists all non-audit services performed by Deloitte & Touche for Company and its Subsidiaries since January 1, 2001. 
  
 Company maintains disclosure controls and procedures required by Rule 13a-15 or 15d-15 under
the 1934 Act; such controls and procedures are effective to ensure that all material information concerning Company and its Subsidiaries is made known on a timely basis to the individuals responsible for the preparation of Company’s filings
with the SEC and other public disclosure documents. To Company’s knowledge, except as disclosed on Schedule 3.4, each director and executive officer of Company has filed with the SEC on a timely basis all statements required by Section
16(a) of the 1934 Act and the rules and regulations thereunder since January 1, 2001. 
  
 Section 3.5 Books and Records. The books of account, minute books, stock record books, and other records of Company and each Subsidiary, all of which have been made available to Parent, are
complete and correct and have been maintained in accordance with sound business practices. Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in accordance with
management’s general or specific authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (c) access to assets is permitted only in
accordance with management’s general or specific authorization and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The
minute books of Company and each Subsidiary contain accurate and complete records of all meetings held of, and action taken by, the shareholders or members and Board of Directors, managers, and committees thereof, and no meeting of any such
shareholders, members, Board of Directors, managers, or committee has been held for which minutes have not been prepared and are not contained in such minute books except for meetings held after December 17, 2003 solely for the purpose of
considering the Contemplated Transactions (each of which will be provided to 

  

 -14- 

 
Parent as soon as they are available and in no event later than the Closing). At the Closing, Company and each Subsidiary will be in possession of all of its
books and records. 
  
 Section 3.6
Facilities.  
  
 (a) Schedule
3.6(a) contains a complete and accurate list of all Facilities and indicates whether such Facilities are currently or formerly owned, occupied, leased, licensed, used or operated by Company or its Subsidiaries and the dates such use commenced
and, if applicable, ceased. Company has made available to Parent originals or authentic copies of all originals of all policies of title insurance, surveys, deeds, leases, Contracts and Encumbrances relating to each of the Facilities now owned,
occupied, leased, licensed, used or operated by Company or any Subsidiary. 
  
 (b) Company or a Subsidiary owns (with good and marketable title in the case of real property, subject only to the matters permitted by the following sentence), or has valid and subsisting rights to occupy, lease,
license, use and operate, all the properties and assets comprising the Facilities (whether real, personal, or mixed and whether tangible or intangible) that it purports to now own, lease, license or otherwise possess as reflected in its books and
records. Except as set forth on Schedule 3.6(b), all properties and assets of Company and each Subsidiary comprising the Facilities are free and clear of all Encumbrances and are not subject to any rights of way, building use restrictions,
exceptions, variances, reservations, or limitations of any nature, except for (i) liens for current taxes not yet due, (ii) minor imperfections of title, if any, none of which is substantial in amount, materially detracts from the value or impairs
the use of the property or assets subject thereto, or impairs the operations of the Company or any Subsidiary, and (iii) zoning laws and other land use restrictions that do not impair the present or anticipated use of the property or assets subject
thereto. All of the Facilities lie wholly within the boundaries of the real property validly owned, leased, licensed, occupied or used by such entity and none encroaches upon the property of, or otherwise conflict with the property rights of, any
other Person. 
  
 (c) The Facilities now owned,
leased, licensed or otherwise possessed by Company or a Subsidiary are operable, and are adequate for the uses to which they are being put. The Facilities not owned by Company or a Subsidiary are subject to valid Contracts granting Company or a
Subsidiary all rights necessary to occupy, possess, use and operate the Facilities for their intended purposes in the Ordinary Course of Business and such rights are sufficient for the continued conduct of the business of Company and each Subsidiary
after the Closing in substantially the same manner as conducted prior to the Closing. 
  
 Section 3.7 Condition and Sufficiency of Assets. All assets and properties (whether real, personal, or mixed and whether tangible or intangible) now owned, leased, licensed, or otherwise possessed
by Company and its Subsidiaries, as reflected in its books and records, constitute all of the assets and properties (real, personal, or mixed and tangible or intangible) necessary to operate the business of Company and the Subsidiaries as previously
operated by Company and the Subsidiaries in the Ordinary Course of Business (collectively, the “Assets”). Subject to Section 3.6 with respect to the Facilities and Section 3.21 with respect to the Intellectual
Property, Company or a Subsidiary owns good and marketable 

  

 -15- 

 
title or has valid and subsisting rights to lease, license, use and operate all of the Assets, free and clear of all Encumbrances. 
  
 Section 3.8 Accounts Receivable. All accounts receivable
of Company that are reflected on the accounting records of Company as of the Closing Date (collectively, the “Accounts Receivable”) represent or will represent valid obligations arising from sales actually made or services actually
performed in the Ordinary Course of Business. Unless paid prior to the Closing Date, the Accounts Receivable are or will be as of the Closing Date current and collectible by Company, net of the respective reserves shown on the accounting records of
Company. Subject to such reserves, each of the Accounts Receivable either has been or will be collected in full, without any set-off, within 90 days after the day on which it first becomes due and payable. There is no contest, claim, or right of
set-off, under any Contract with any obligor of an Accounts Receivable relating to the amount or validity of such Accounts Receivable. Schedule 3.8 contains a complete and accurate list of all Accounts Receivable as of December 15, 2003,
which list sets forth the aging of such Accounts Receivable. 
  
 Section 3.9 Inventory. Neither Company nor any Subsidiary has any inventory. 
  
 Section 3.10 No Undisclosed Liabilities. Except as set forth in Schedule 3.10, neither Company nor any Subsidiary has any
liabilities or obligations of any nature (whether known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against on the face of Company’s September 30, 2003 balance
sheet and current liabilities incurred in the Ordinary Course of Business since September 30, 2003. 
  
 Section 3.11 Taxes. 
  
 (a) Company and the Subsidiaries have timely filed or caused to be timely filed all Tax Returns that are or were required to be filed by
or with respect to any of them, either separately or as a member of a group of entities, in compliance with applicable Legal Requirements and all Taxes owed by Company and the Subsidiaries (whether or not shown on any Tax Returns) have been timely
paid. All such Tax Returns are true, correct and complete. Company has made available to Parent copies of all such Tax Returns filed since June 30, 1999. Schedule 3.11 contains a complete and accurate list of all income Tax Returns filed
since June 30, 1997. Company and the Subsidiaries have paid, or made provision for the payment of, all Taxes that have or may have become due pursuant to all Tax Returns or otherwise, or pursuant to any assessment received by Company or a
Subsidiary, except such Taxes, if any, as are listed in Schedule 3.11 and are being contested in good faith and as to which adequate reserves (determined in accordance with GAAP) have been provided in the applicable accounting records.

  
 (b) The United States federal and state
income Tax Returns of Company and the Subsidiaries subject to such Taxes have been audited by the IRS or relevant state tax authorities or are closed by the applicable statute of limitations for all taxable years through June 30, 1999. None of such
Tax Returns have been audited. Schedule 3.11 contains a complete and accurate list of all audits of all such Tax Returns including a reasonably detailed description of the nature 

  

 -16- 

 
and outcome of each audit. No adjustments have been made to Tax Returns filed by Company or a Subsidiary or any group of corporations including Company or a
Subsidiary for all taxable years since June 30, 1997. Neither Company nor a Subsidiary is under audit (or received a notice indicating an intent to audit) for any Tax Returns or has given or been requested to give waivers or extensions (or is or
would be subject to a waiver or extension given by any other Person) of any statute of limitations relating to the payment of Taxes of Company or a Subsidiary or for which Company or a Subsidiary may be liable. 
  
 (c) The charges, accruals, and reserves with respect to
Taxes on the respective books of Company and each Subsidiary are adequate (determined in accordance with GAAP) and are at least equal to Company’s and such Subsidiary’s respective liability for Taxes. There exists no proposed Tax
assessment against Company or any Subsidiary. No claim has ever been made by an authority in a jurisdiction where Company or any Subsidiary does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. There are no liens
for Taxes (other than Taxes not yet due and payable) upon any of the assets of Company or any Subsidiary. 
  
 (d) (i) None of Company or any Subsidiary has filed with respect to Company or any Subsidiary, or any property held by the Company or any
Subsidiary any consent under IRC §341(f), (ii) no property of the Company or any Subsidiary is “tax exempt use property” within the meaning of IRC §168(h), (iii) none of the Company or any Subsidiary is a party to any lease made
pursuant to §168(f)(8) of the Internal Revenue Code of 1954, and (iv) none of Company or any of the Subsidiaries has agreed or is required to make any adjustment under IRC §481(a) by reason of a change in method of accounting or otherwise
that will affect the liability of Company or the Subsidiary for Taxes. 
  
 (e) Company and each Subsidiary has withheld and paid all Taxes required by law to have been withheld and paid and have complied in all respects with all rules and regulations relating to the withholding or remittance
of Taxes (including, without limitation, employee-related Taxes). 
  
 (f) None of Company or any Subsidiary is a party to an Contract or arrangement that, individually or collectively, would give rise to any payment (whether in cash or property) that would not be deductible pursuant to
IRC §§162(a)(1), 162(m) or 280G. 
  
 (g) The Company has not been and is not a United States real property holding corporation within the meaning of IRC §897. 
  
 (h) (i) None of Company or the Subsidiaries is a party to any Tax allocation, indemnity or sharing agreement; (ii) none of Company or the
Subsidiaries has any liability for Taxes of any Person (A) under Treasury Regulation §1.1502-6, (B) as transferee or successor, (C) by Contract, or (D) otherwise; and (iii) neither Company nor a Subsidiary has been a member of an affiliated
group (as that term is defined in the IRC) filing a consolidated federal income Tax return other than a group the common parent of which was Company. 
  

 -17- 

 (i) Neither the Company nor any of its Subsidiaries has distributed stock of another
corporation, nor had its stock distributed by another corporation, in a transaction that was purported or intended to be governed in whole or in part by IRC §355 or §361. 
  
 Section 3.12 Employee Benefits.  
  
 (a) As used in this Section, the following terms have the following meanings: 
  
 “Company Other Benefit Obligation” means an
Other Benefit Obligation owed, adopted, or followed by Company or an ERISA Affiliate. 
  
 “Company Plan” means all Plans of which Company or an ERISA Affiliate is or was a Plan Sponsor, or to which Company or an
ERISA Affiliate otherwise contributes or has contributed, or in which Company or an ERISA Affiliate otherwise participates or has participated. 
  
 “ERISA Affiliate” means any other Person that, together with Company, would be treated as a single employer under IRC
§414. 
  
 “Other Benefit
Obligations” means all obligations, arrangements, or customary practices, whether or not legally enforceable, to provide benefits, other than salary or wages, as compensation for services rendered, to present or former directors, employees,
or agents, other than obligations, arrangements, and practices that are Plans. Other Benefit Obligations include consulting agreements under which the compensation paid does not depend upon the amount of service rendered, sabbatical policies,
severance payment policies, and fringe benefits within the meaning of IRC §132. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto. 
  
 “Pension Plan” is defined in ERISA
§3(2)(A). 
  
 “Plan” is
defined in ERISA §3(3). 
  
 “Plan
Sponsor” is defined in ERISA §3(16)(B). 
  
 “Qualified Plan” means any Company Plan that meets or purports to meet the requirements of IRC §401(a). 
  
 “Welfare Plan” is defined in ERISA §3(1). 
  
 (b) (i) Schedule 3.12(b)(i) contains a complete and accurate list of (A) all ERISA Affiliates, and
(B) all Plans of which Company or any such ERISA Affiliate is or was a Plan Sponsor, in which Company or any such ERISA Affiliate participates or has participated, or to which Company or any such ERISA Affiliate contributes or has contributed.
Neither Company nor any ERISA Affiliate has ever established, maintained, or contributed to or otherwise participated in, or had an obligation to maintain, contribute to, or otherwise 

  

 -18- 

	 	 
participate in, any voluntary employees’ benefit association under IRC §501(c)(9), Pension Plan subject to Title IV of ERISA or multi-employer plan
as defined in ERISA §3(37)(A). Neither Company has or has ever had any employees or sponsored any Plan or Other Benefit Obligation. 

  
 (ii) Schedule 3.12(b)(ii) contains a complete and accurate list of all Company Plans, Company Other Benefit Obligations and
identifies as such all Company Plans that are defined benefit Pension Plans or Qualified Plans. 
  
 (iii) Schedule 3.12(b)(iii) sets forth a calculation of Company’s or any Subsidiary’s liability for post-retirement
benefits other than pensions, made in accordance with Financial Accounting Statement 106 of the Financial Accounting Standards Board, regardless of whether Company or a Subsidiary is required by Statement 106 to disclose such information.

  
 (iv) Schedule 3.12(b)(iv) sets forth
the financial cost of all obligations owed under any Company Plan or Company Other Benefit Obligation that is not subject to the disclosure and reporting requirements of ERISA. 
  
 (c) Company has delivered to Parent: 
  
 (i) all documents that set forth the terms of each Company Plan, Company Other Benefit Obligation and of any
related trust, including (A) all plan descriptions and summary plan descriptions of Company Plans for which Company is required to prepare, file, and distribute plan descriptions and summary plan descriptions, and (B) all summaries and descriptions
furnished to participants and beneficiaries regarding Company Plans and Company Other Benefit Obligations for which a plan description or summary plan description is not required; 
  
 (ii) all personnel, payroll, and employment manuals and policies; 
  
 (iii) all collective bargaining agreements pursuant to which
contributions have been made or obligations incurred (including both pension and welfare benefits) by Company and the ERISA Affiliates, and all collective bargaining agreements pursuant to which contributions are being made or obligations are owed
by such entities; 
  
 (iv) a written description
of any Company Plan or Company Other Benefit Obligation that is not otherwise in writing; 
  
 (v) all registration statements filed with respect to any Company Plan; 
  
 (vi) all insurance policies purchased by or to provide benefits under any Company Plan; 
  

 -19- 

 (vii) all contracts with third party administrators, actuaries, investment managers,
consultants, and other independent contractors that relate to any Company Plan and Company Other Benefit Obligation; 
  
 (viii) all reports submitted within the four years preceding the date of this Agreement by third party administrators, actuaries,
investment managers, consultants, or other independent contractors with respect to any Company Plan or Company Other Benefit Obligation; 
  
 (ix) all notifications to employees of their rights under ERISA §601 et seq. and IRC §4980B; 
  
 (x) the Form 5500 filed in each of the most recent three
plan years with respect to each Company Plan, including all schedules thereto and the opinions of independent accountants; 
  
 (xi) all notices that were given by Company or any ERISA Affiliate or any Company Plan to the IRS, PBGC, or any participant or
beneficiary, pursuant to statute, within the four years preceding the date of this Agreement, including notices that are expressly mentioned elsewhere in this Section 3.12; 
  
 (xii) all notices that were given by the IRS, PBGC, or the Department of Labor to Company, any ERISA
Affiliate, or any Company Plan within the four years preceding the date of this Agreement; and 
  
 (xiii) the most recent determination letter for each Qualified Plan. 
  
 (d) Except as set forth in Schedule 3.12(d): 
  
 (i) Company and each ERISA Affiliate have performed all of
their respective obligations under all Company Plans and Company Other Benefit Obligations. Company and each ERISA Affiliate have made appropriate entries in their financial records and statements for all obligations and liabilities under such Plans
and Obligations that have accrued but are not due. 
  
 (ii) No statement, either written or oral, has been made by Company or any ERISA Affiliate to any Person with regard to any Plan or Other Benefit Obligation that was not in accordance with the Plan or Other Benefit Obligation and that could
have, individually or in the aggregate, a material adverse economic consequence to a Company or Parent. 
  
 (iii) Company and each ERISA Affiliate, with respect to all Company Plans and Company Other Benefits Obligations are, and each Company
Plan and Company Other Benefit Obligation is, in full compliance with ERISA, the IRC, and other applicable Legal Requirements, including the provisions of such Legal Requirements expressly mentioned in this Section 3.12, and with any
applicable collective bargaining agreement. 
  

 -20- 

 (iv) No transaction prohibited by ERISA §406 and no “prohibited
transaction” under IRC §4975(c) have occurred with respect to any Company Plan with respect to which there is no statutory or regulatory exemption. 
  

(v) Company has no liability to the IRS with respect to any Company Plan, including any liability imposed by Chapter 43 of the IRC.

  
 (vi) Company has no liability to the PBGC
with respect to any Company Plan or has any liability under ERISA §502 or §4071. 
  
 (vii) All filings required by ERISA and the IRC as to each Company Plan have been timely filed, and all notices and disclosures to
participants required by either ERISA or the IRC have been timely provided. 
  
 (viii) All contributions and payments made or accrued with respect to all Company Plans and Company Other Benefit Obligations are deductible under IRC §162 or §404. No amount, or any asset of any Company
Plan is subject to tax as unrelated business taxable income. 
  
 (ix) Each Company Plan can be terminated within 30 days, without payment of any additional contribution or amount and without the vesting or acceleration of any benefits promised by such Plan. 
  
 (x) Since June 30, 1999, there has been no establishment or
amendment of any Company Plan or Company Other Benefit Obligation. 
  
 (xi) No event has occurred or circumstance exists that could result in a material increase in premium costs of Company Plans and Company Other Benefit Obligations that are insured, or a material increase in benefit
costs of such Plans and Obligations that are self-insured. 
  
 (xii) Other than claims for benefits submitted by participants or beneficiaries, no claim against, or legal proceeding involving, any Company Plan or Company Other Benefit Obligation is pending or, to Company’s
Knowledge, Threatened. 
  
 (xiii) No Company Plan
is a stock bonus, money purchase pension, or defined benefit pension plan within the meaning of IRC §401(a). 
  
 (xiv) Each Qualified Plan is qualified in form and operation under IRC §401(a); each trust for each such Qualified Plan is exempt
from federal income tax under IRC §501(a). No event has occurred or circumstance exists that will or could give rise to disqualification or loss of tax-exempt status of any such Qualified Plan or trust. 
  
 (xv) Company and each ERISA Affiliate has met the minimum
funding standard, and has made all contributions required, under ERISA §302 and IRC §402. 
  

 -21- 

 (xvi) Company and each ERISA Affiliate has paid all amounts due to the PBGC pursuant to
ERISA §4007. 
  
 (xvii) Neither Company nor
any ERISA Affiliate has filed a notice of intent to terminate any Company Plan or has adopted any amendment to treat a Company Plan as terminated. The PBGC has not instituted proceedings to treat any Company Plan as terminated. No event has occurred
or circumstance exists that may constitute grounds under ERISA §4042 for the termination of, or the appointment of a trustee to administer, any Company Plan. 
  
 (xviii) No amendment has been made, or is reasonably expected to be made, to any Company Plan that has
required or could require the provision of security under ERISA §307 or IRC §401(a)(29). 
  
 (xix) No accumulated funding deficiency, whether or not waived, exists with respect to any Company Plan; no event has occurred or
circumstance exists that may result in an accumulated funding deficiency as of the last day of the current plan year of any Company Plan. 
  
 (xx) The actuarial report for each Pension Plan of Company and each ERISA Affiliate fairly presents the financial condition and the
results of operations of each such Pension Plan in accordance with GAAP. 
  
 (xxi) Since the last valuation date for each Pension Plan of Company and each ERISA Affiliate, no event has occurred or circumstance exists that would increase the amount of benefits under any such Pension Plan or
that would cause the excess of Pension Plan assets over benefit liabilities (as defined in ERISA §4001) to decrease, or the amount by which benefit liabilities exceed assets to increase. 
  
 (xxii) No reportable event (as defined in ERISA §4043
and in regulations issued thereunder) has occurred. 
  
 (xxiii) Company has no Knowledge of any facts or circumstances that may give rise to any liability of Company, a Subsidiary or Parent to the PBGC under Title IV of ERISA. 
  
 (xxiv) Except to the extent required under ERISA §601 et seq. and IRC §4980B, neither Company nor
any ERISA Affiliate provides health or welfare benefits for any retired or former employee nor is it obligated to provide health or welfare benefits to any active employee following such employee’s retirement or other termination of service.

  
 (xxv) Company has the right to modify and
terminate benefits to retirees (other than Pension Plans) with respect to both retired and active employees. 
  

 -22- 

 (xxvi) Company has complied with the provisions of ERISA §601 et seq. and IRC
§4980B. 
  
 (xxvii) No payment that is owed
or may become due to any director, officer, employee, or agent of Company will be non-deductible to Company or subject to tax under IRC §280G or §4999; nor will Company be required to “gross up” or otherwise compensate any such
Person because of the imposition of any excise tax on a payment to such Person. 
  
 (xxviii) The consummation of the Contemplated Transactions will not result in the payment, vesting, or acceleration of any benefit under
any Company Plan or Company Other Benefit Obligation, nor will it trigger the payment of severance or termination pay under any policy, plan, procedure, practice or agreement to any employee of Company or any Subsidiary. 
  
 (xxix) Company and each Subsidiary is in material compliance
with its obligations to its employees under the Health Insurance Portability and Accountability Act of 1996. 
  
 Section 3.13 Compliance; Governmental Authorizations. 
  
 (a) Except as set forth in Schedule 3.13(a): 
  
 (i) each of Company and each Subsidiary is and at all times
has been, in full compliance with each Legal Requirement that is or was applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets and is in compliance with the current listing and corporate
governance requirements of Nasdaq; 
  
 (ii) no
event has occurred or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result in a violation by Company or a Subsidiary of, or a failure on the part of Company or a Subsidiary to comply with, any Legal
Requirement, or (B) may give rise to any obligation on the part of Company or a Subsidiary to undertake, or to bear all or any portion of the cost of, any remedial action of any nature; and 
  
 (iii) neither Company nor a Subsidiary has received any
notice or other communication (whether oral or written) from any Governmental Body or any other Person regarding (A) any actual, alleged, possible, or potential violation of, or failure to comply with, any Legal Requirement, or (B) any actual,
alleged, possible, or potential obligation on the part of Company or a Subsidiary to undertake, or to bear all or any portion of the cost of, any remedial action of any nature. 
  
 (b) Schedule 3.13(b) contains a complete and accurate list of each Governmental Authorization that is
held by Company or each Subsidiary or that otherwise relates to the business of, or to any of the assets owned or used by, the Company and its Subsidiaries. Each 

  

 -23- 

 
Governmental Authorization listed or required to be listed in Schedule 3.13(b) is valid and in full force and effect. Except as set forth in
Schedule 3.13(b): 
  
 (i) Company and each
Subsidiary is, and at all times has been, in full compliance with all of the terms and requirements of each Governmental Authorization identified or required to be identified in Schedule 3.13(b); 
  
 (ii) no event has occurred or circumstance exists that may
(with or without notice or lapse of time) (A) constitute or result directly or indirectly in a violation of or a failure to comply with any term or requirement of any Governmental Authorization listed or required to be listed in Schedule
3.13(b), or (B) result directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of, or any modification to, any Governmental Authorization listed or required to be listed in Schedule 3.13(b);

  
 (iii) neither Company nor a Subsidiary has
received any notice or other communication (whether oral or written) from any Governmental Body or any other Person regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or requirement of any
Governmental Authorization, or (B) any actual, proposed, possible, or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to any Governmental Authorization; and 
  
 (iv) all applications required to have been filed for the
renewal of the Governmental Authorizations listed or required to be listed in Schedule 3.13(b) have been duly filed on a timely basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to
such Governmental Authorizations have been duly made on a timely basis with the appropriate Governmental Bodies. 
  
 The Governmental Authorizations listed in Schedule 3.13(b) collectively constitute all of the Governmental Authorizations necessary to permit Company and its
Subsidiaries to lawfully conduct and operate their business in the manner they currently conduct and operate such business and to permit Company and its Subsidiaries to own and use their assets in the manner in which they currently own and use such
assets. 
  
 Section 3.14 Legal Proceedings;
Orders.  
  
 (a) Except as set forth
in Schedule 3.14, there is no pending Proceeding: 
  
 (i) that has been commenced by or against Company or a Subsidiary or that otherwise relates to or may affect the business of, or any of the assets owned or used by, Company or the Subsidiaries; or 
  
 (ii) that challenges, or that may have the effect of
preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. 
  

 -24- 

 To Company’s Knowledge, no such Proceeding has been Threatened. Except as specifically referenced in Schedule 3.14
as having a material adverse effect, the Proceedings listed in Schedule 3.14 will not have a material adverse effect on the business, operations, assets, condition, or prospects of Company or any Subsidiary. 
  
 (b) Except as set forth in Schedule 3.14: 

 
 (i) there is no Order to which Company or any Subsidiary,
or any of the assets owned or used by Company or any Subsidiary, is subject; 
  
 (ii) Neither Company nor any Subsidiary is subject to any Order that relates to the business of, or any of the assets owned or used by, Company or a Subsidiary; and 
  
 (iii) no officer, director, agent, or employee of Company or
a Subsidiary is subject to any Order that prohibits such Person from engaging in or continuing any conduct, activity, or practice relating to the business of Company and the Subsidiaries. 
  
 (c) Except as set forth in Schedule 3.14: 

 
 (i) Each of Company and each Subsidiary is, and at all
times has been, in full compliance with all of the terms and requirements of each Order to which it, or any of the assets owned or used by it, is or has been subject; 
  
 (ii) no event has occurred or circumstance exists that may constitute or result in (with or without notice
or lapse of time) a violation of or failure to comply with any term or requirement of any Order to which Company or a Subsidiary, or any of the assets owned or used by Company or a Subsidiary, is subject; and 
  
 (iii) neither Company nor a Subsidiary has received any
notice or other communication (whether oral or written) from any Governmental Body or any other Person regarding any actual, alleged, possible, or potential violation of, or failure to comply with, any term or requirement of any Order to which
Company or a Subsidiary, or any of the assets owned or used by Company or a Subsidiary, is or has been subject. 
  
 Section 3.15 Absence of Certain Changes and Events. Since December 31, 2002, except as set forth on Schedule 3.15, there has
not been any material adverse change in the business, operations, properties, prospects, assets, or condition of Company, and no event has occurred or circumstance exists that may result in such a material adverse change. Neither Company nor any
Subsidiary has taken any steps, and none of them currently expect to take any steps, to seek protection pursuant to any bankruptcy law nor does Company or any Subsidiary have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so. Except as set forth in Schedule 3.15, since December 31, 2002, Company and each 

  

 -25- 

 
Subsidiary has conducted its business only in the Ordinary Course of Business and there has not been any: 
  
 (a) payment or increase by Company or any Subsidiary of any
bonuses, salaries, or other compensation to any director, officer, or (except in the Ordinary Course of Business) employee or entry into any employment, severance, or similar Contract with any director, officer, or (except in the Ordinary Course of
Business) employee; 
  
 (b) adoption of, or
increase in the payments to or benefits under, any profit sharing, bonus, deferred compensation, savings, insurance, pension, retirement, or other employee benefit plan for or with any employees of Company or any Subsidiary; 
  
 (c) damage to or destruction or loss of any asset or
property owned or used by Company or any Subsidiary, whether or not covered by insurance, materially and adversely affecting the properties, assets, business, financial condition, or prospects of Company or any Subsidiary; 
  
 (d) entry into, termination of, or receipt of notice of
termination of (i) any license, distributorship, dealer, sales representative, joint venture, credit, affiliation or similar agreement, or (ii) any Contract or transaction involving a total remaining commitment by or to Company or any Subsidiary of
at least $25,000 except in the Ordinary Course of Business; 
  
 (e) sale (other than sales of inventory in the Ordinary Course of Business), lease, or other disposition of any asset or property owned or used by the Companies or mortgage, pledge, or imposition of any Encumbrance on
any material asset or property owned or used by Company or any Subsidiary; 
  
 (f) cancellation or waiver of any claims or rights with a value to Company or any Subsidiary in excess of $25,000; 
  
 (g) material change in the accounting methods used by Company or any Subsidiary; or 
  
 (h) agreement, whether oral or written, by Company or a
Subsidiary to do any of the foregoing. 
  
 Section
3.16 Contracts; No Defaults.  
  
 (a) Schedule 3.16(a) contains a complete and accurate list, and Company has delivered to Parent true and complete copies, of: 
  
 (i) each Contract that involves performance of services or delivery of goods or materials by Company or a Subsidiary of an amount or value
in excess of $25,000; 
  
 (ii) each Contract that
involves performance of services or delivery of goods or materials to Company or a Subsidiary of an amount or value in excess of $25,000; 
  

 -26- 

 (iii) each Contract that was not entered into in the Ordinary Course of Business and that
involves expenditures or receipts of Company or a Subsidiary in excess of $25,000; 
  
 (iv) each lease, rental or occupancy agreement, license, installment and conditional sale agreement, and other Contract affecting the
ownership of, leasing of, title to, use of, or any leasehold or other interest in, any real or personal property by Company or a Subsidiary (except personal property leases and installment and conditional sales agreements having a value per item or
aggregate payments of less than $25,000 and with terms of less than one year); 
  
 (v) each licensing agreement or other Contract to which Company or a Subsidiary is a party that pertains to patents, trademarks,
copyrights, or other intellectual property, including agreements with current or former employees, consultants, or contractors regarding the appropriation or the non-disclosure of any intellectual property; 
  
 (vi) each joint venture, partnership, and other Contract
(however named) involving a sharing of profits, losses, costs, or liabilities by Company or a Subsidiary with any other Person; 
  
 (vii) each Contract containing covenants that in any way purport to restrict the business activity of Company or a Subsidiary or any
Affiliate of a Company or limit the freedom of Company or a Subsidiary or any Affiliate of a Company to engage in any line of business or to compete with any Person; 
  
 (viii) each Contract providing for payments to or by Company or a Subsidiary based on sales, purchases, or
profits, other than direct payments for goods; 
  
 (ix) each power of attorney binding on Company or any Subsidiary that is currently effective and outstanding; 
  
 (x) each Contract entered into other than in the Ordinary Course of Business that contains or provides for an express undertaking by
Company or a Subsidiary to be responsible for consequential damages; 
  
 (xi) each Contract for capital expenditures by Company or a Subsidiary in excess of $25,000; 
  
 (xii) each written warranty, guaranty, and or other similar undertaking with respect to contractual performance extended by Company or a
Subsidiary other than in the Ordinary Course of Business; 
  
 (xiii) each agreement or contract, whether written or verbal, that is a talent or programming agreement or contract or in any way obligates Company to pay any royalty, residual, license fee or other similar payment in
respect of any 

  

 -27- 

 
third party’s literary, artistic, trademark, copyright, music performance, master use, synchronization or other similar intellectual property rights or
their publicity, privacy or publishing or other similar intellectual property rights; and 
  
 (xiv) each amendment, supplement, and modification (whether oral or written) in respect of any of the foregoing. 
  
 (b) Except as set forth in Schedule 3.16(b), no
officer, director, or employee of Company or any Subsidiary is bound by any Contract that purports to limit the ability of such Person to (A) engage in or continue any conduct, activity, or practice relating to the business of Company, or (B) assign
to Company or any other Person any rights to any invention, improvement, or discovery. 
  
 (c) Except as set forth in Schedule 3.16(c), each Contract listed or required to be listed in Schedule 3.16(a) is in full
force and effect and is valid and enforceable in accordance with its terms. 
  
 (d) Except as set forth in Schedule 3.16(d): 
  
 (i) each of Company and each Subsidiary is and has been in full compliance with all applicable terms and requirements of each Contract
listed or required to be listed in Schedule 3.16(a); 
  
 (ii) each other party to each Contract listed or required to be listed in Schedule 3.16(a) is, to Company’s Knowledge, in full compliance with all applicable terms and requirements of such Contract;

  
 (iii) no event has occurred or circumstance
exists that (with or without notice or lapse of time) may contravene, conflict with, or result in a violation or breach of, or give Company or a Subsidiary or other Person the right to declare a default or exercise any remedy under, or to accelerate
the maturity or performance of, or to cancel, terminate, or modify, any Contract listed or required to be listed in Schedule 3.16(a); and 
  
 (iv) neither Company nor a Subsidiary has given to or received from any other Person, at any time since June 30, 1999, any notice or other
communication (whether oral or written) regarding any actual, alleged, possible, or potential violation or breach of, or default under, any Contract listed or required to be listed in Schedule 3.16(a), except for notices of violations,
breaches or defaults, the results of which would not result in the ability for the other party to such Contract to exercise a right or remedy that could have a material adverse effect on Company or any Subsidiary. 
  
 (e) To Company’s Knowledge, there are no renegotiations
of, attempts to renegotiate, or outstanding rights to renegotiate any material amounts paid or payable to Company or any Subsidiary or with respect to the business of Company or a Subsidiary under current or 

  

 -28- 

 
completed Contracts with any Person and no such Person has made written demand for such renegotiation. 
  
 (f) The Contracts relating to the sale, design, manufacture,
or provision of products or services by Company and the Subsidiaries have been entered into in the Ordinary Course of Business and have been entered into without the commission of any act alone or in concert with any other Person, or any
consideration having been paid or promised, that is or would be in violation of any Legal Requirement. 
  
 (g) Company is not a party to any Contract with any other Person, nor involved in any discussions or other relations with any other
Person, that could give rise to any liability on the part of Parent to such other Person by reason of Company considering, entering into, consummating or performing the Contemplated Transactions or any portion thereof. 
  
 Section 3.17 Insurance.  
  
 (a) Schedule 3.17(a) lists all claims made policies
currently held and all occurrence policies held during the past ten years by Company or any Subsidiary. Company has made available to Parent true and complete copies of all policies of insurance to which Company or a Subsidiary is a party or under
which Company or a Subsidiary, or any director, officer or manager of Company or a Subsidiary, is or has been covered at any time within the five years preceding the date of this Agreement, copies of all pending applications for policies of
insurance; and any statement by the auditor of Company’s financial statements with regard to the adequacy of such entity’s coverage or of the reserves for claims. 
  
 (b) Schedule 3.17(b) sets forth, by year, for the current policy year and each of the five preceding
policy years a summary of the loss experience under each policy and a statement describing each claim under an insurance policy for an amount in excess of $10,000. 
  
 (c) Except as set forth on Schedule 3.17(c): 
  
 (i) All policies to which Company or a Company is a party or
that provide coverage to Company, a Subsidiary, or any director, officer or manager of Company or a Subsidiary (A) are valid, outstanding and enforceable; (B) are issued by an insurer that is financially sound and reputable; (C) taken together,
provide adequate insurance coverage for the assets and the operations of Company and the Subsidiaries; (D) are sufficient for compliance with all Legal Requirements and Contracts to which Company or a Subsidiary is a party or by which any of them is
bound; (E) will continue in full force and effect following the consummation of the Contemplated Transactions; and (F) do not provide for any retrospective premium adjustment or other experienced-based liability on the part of Company or a
Subsidiary. 
  
 (ii) Neither Company nor a
Subsidiary has received any refusal of coverage or any notice that a defense will be afforded with reservation of rights, or any notice of cancellation or any other indication that any insurance policy is no 

  

 -29- 

 
longer in full force or effect or will not be renewed or that the issuer of any policy is not willing or able to perform its obligations thereunder.

  
 (iii) Each of Company and each Subsidiary has
paid all premiums due, and has otherwise performed all of its obligations, under each policy to which it is a party or that provides coverage to Company or any Subsidiary or their business or any director, officer or manager thereof. 
  
 (iv) Company and the Subsidiaries have given notice to the
insurer of all material claims that may be insured thereby. 
  
 Section 3.18 Environmental Matters. Except as set forth in Schedule 3.18: 
  
 (a) Each of Company and each Subsidiary is, and at all times has been, in full compliance with, and has not been and is not in violation
of or liable under, any Environmental Law. Neither Company nor Subsidiary has or has any basis to expect, nor has any of them or any other Person for whose conduct they are or may be held to be responsible received, any actual or Threatened Order,
notice, or other communication from (i) any Governmental Body or private citizen acting in the public interest, or (ii) the current or prior owner or operator of any Facilities, of any actual or potential violation or failure to comply with any
Environmental Law, or of any actual or Threatened obligation to undertake or bear the cost of any Environmental, Health, and Safety Liabilities with respect to any of the Facilities or any other properties or assets (whether real, personal, or
mixed) in which Company or a Subsidiary has or had an interest, or with respect to any property or Facility at or to which Hazardous Materials were generated, manufactured, refined, transferred, imported, used, or processed by Company, a Subsidiary,
or any other Person for whose conduct they are or may be held responsible, or from which Hazardous Materials have been transported, treated, stored, handled, transferred, disposed, recycled, or received. 
  
 (b) There are no Hazardous Materials present on or in the
Environment at the Facilities. None of Company, Subsidiary, or any other Person for whose conduct they are or may be held responsible has permitted or conducted, or is aware of, any Hazardous Activity conducted with respect to the Facilities or any
other properties or assets (whether real, personal, or mixed) in which Company or a Subsidiary has or had an interest except in full compliance with all applicable Environmental Laws. 
  
 (c) There has been no Release or, to Company’s Knowledge, threat of Release, of any Hazardous Materials
at or from the Facilities or at any other locations where any Hazardous Materials were generated, manufactured, refined, transferred, produced, imported, used, or processed from or by the Facilities, or from or by any other properties and assets
(whether real, personal, or mixed) in which Company or a Subsidiary has or had an interest. 
  
 (d) Company has delivered to Parent accurate and complete copies and results of any reports, studies, analyses, tests, or monitoring
possessed or initiated by Company or a Subsidiary pertaining to Hazardous Materials or Hazardous Activities in, on, or under the Facilities, or 

  

 -30- 

 
concerning compliance by Company, a Subsidiary, or any other Person for whose conduct they are or may be held responsible, with Environmental Laws.

  
 Section 3.19 Employees.

  
 (a) Schedule 3.19 contains a complete
and accurate list as of the date of this Agreement of the following information for each employee of Company or any Subsidiary, including each employee on leave of absence or layoff status: name; job title; current compensation paid or payable and
any change in compensation since June 30, 2003; vacation accrued; and service credited for purposes of vesting and eligibility to participate under any Company Plan. 
  
 (b) No employee of Company or any Subsidiary is a party to, or is otherwise bound by, any agreement or
arrangement, including any confidentiality, noncompetition, or proprietary rights agreement, between such employee and any other Person (a “Proprietary Rights Agreement”) that in any way adversely affects or will affect (i) the
performance of his duties as an employee of Company or such Subsidiary, or (ii) the ability Company or the Subsidiaries to conduct their respective businesses, including any Proprietary Rights Agreement with Company or a Subsidiary. To
Company’s Knowledge, as of the date of this Agreement, no officer or other key employee of Company or any Subsidiary intends to terminate his employment. 
  

(c) No employee of Company or any Subsidiary is a party to an employment agreement, nor will the Merger contemplated herein, or
employment terminations or actions following the Effective Time, if any, result in the obligation to pay any severance, termination or other type of separation pay. 
  
 Section 3.20 Labor Relations; Compliance. Since June 30, 2000, neither Company nor any Subsidiary has
been a party to any collective bargaining or other labor Contract. Except as set forth on Schedule 3.20, since June 30, 2000, there has not been, there is not presently pending or existing, and to Company’s Knowledge there is not
Threatened, (a) any strike, slowdown, picketing, work stoppage, or employee grievance process, (b) any Proceeding against or affecting Company or any Subsidiary relating to the alleged violation of any Legal Requirement pertaining to labor relations
or employment matters, including any charge or complaint filed by an employee or union with the National Labor Relations Board, the Equal Employment Opportunity Commission, or any comparable Governmental Body, organizational activity, or other labor
or employment dispute against or affecting Company or any Subsidiary, or (c) any application for certification of a collective bargaining agent. To Company’s Knowledge, no event has occurred or circumstance exists that could provide the basis
for any work stoppage or other labor dispute by employees of Company or any Subsidiary. There is no lockout of any employees by Company or any Subsidiary, and no such action is contemplated by Company or any Subsidiary. Company and each Subsidiary
have complied in all respects with all Legal Requirements relating to employment, equal employment opportunity, nondiscrimination, immigration, wages, hours, benefits, collective bargaining, the payment of social security and similar taxes,
occupational safety and health, and plant closing. Neither Company nor any Subsidiary is liable for the payment of any compensation, damages, taxes, fines, penalties, or other amounts, however designated, for failure to comply with any of the
foregoing Legal Requirements. 
  

 -31- 

 Section 3.21 Intellectual Property. 
  
 (a) Intellectual Property Assets. As used in this
Agreement, the term “Intellectual Property Assets” includes: 
  
 (i) all fictional business names, trading names, registered and unregistered trademarks, service marks, and applications and rights to station call letters and call signs (collectively, “Marks”);

  
 (ii) all patents, patent applications, and
inventions and discoveries that may be patentable (collectively, “Patents”); 
  
 (iii) all copyrights in both published works and unpublished works (collectively, “Copyrights”); 
  
 (iv) all rights in mask works (collectively, “Rights
in Mask Works”); and 
  
 (v) all
know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings, and blue prints (collectively, “Trade Secrets”) 
  
 in each case owned, used, or licensed by Company or any Subsidiary as licensee or licensor.

  
 (b) Agreements. Schedule
3.21(b) contains a complete and accurate list and summary description, including any royalties paid or received by Company, of all Contracts relating to the Intellectual Property Assets to which Company or any Subsidiary is a party or by which
Company or any Subsidiary is bound, except for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software programs with a value of less than $25,000 under which Company or a Subsidiary is the
licensee. There are no outstanding and, to Company’s Knowledge, no Threatened disputes or disagreements with respect to any such Contract. 
  
 (c) Know-How Necessary for the Business. The Intellectual Property Assets are all those necessary for the operation of the business
of Company and each Subsidiary as it is currently conducted. Either Company or a Subsidiary is the owner of all right, title, and interest in and to each of the Intellectual Property Assets, free and clear of all Encumbrances, and Company and each
Subsidiary has the right to use without payment to a third party all of the Intellectual Property Assets. 
  
 (d) Patents. Except for commercially available software applications and as disclosed on Schedule 3.21(d), neither Company
nor any Subsidiary owns or uses any Patents. 
  
 (e) Marks. 
  

 -32- 

 (i) Schedule 3.21(e) contains a complete and accurate list and summary description
of all Marks. Company or a Subsidiary is the owner of all right, title, and interest in and to each of the Marks, free and clear of all Encumbrances. 
  
 (ii) All Marks that have been registered with the U.S. Patent and Trademark Office are currently in compliance with all formal legal
requirements (including the timely post-registration filing of affidavits of use and incontestability and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or Taxes or actions falling due within 90 days
after the Closing Date. 
  
 (iii) No Mark has
been or is now involved in any opposition, invalidation, or cancellation and, to Company’s Knowledge, no such action is Threatened with the respect to any of the Marks. 
  
 (iv) To Company’s Knowledge, there is no potentially interfering trademark or trademark application of
any third party. 
  
 (v) Except as Schedule
3.21, no Mark is infringed or, to Company’s Knowledge, has been challenged or threatened in any way. None of the Marks used by Company or any Subsidiary infringes or is alleged to infringe any trade name, trademark, or service mark of any
third party. 
  
 (vi) All products and materials
containing a Mark bear the proper federal registration notice where permitted by law. 
  
 (f) Copyrights. 
  
 (i) Schedule 3.21(f) contains a complete and accurate list and summary description of all Copyrights. Company or a Subsidiary is
the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all Encumbrances. 
  
 (ii) All the Copyrights have been registered and are currently in compliance with formal legal requirements, are valid and enforceable,
and are not subject to any maintenance fees or Taxes or actions falling due within 90 days after the date of Closing. 
  
 (iii) No Copyright is infringed or, to Company’s Knowledge, has been challenged or threatened in any way. None of the subject matter
of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based on the work of a third party. 
  
 (iv) All works encompassed by the Copyrights have been marked with the proper copyright notice. 
  
 (g) Trade Secrets. 
  

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 (i) With respect to each Trade Secret, the documentation relating to such Trade Secret is
current, accurate, and sufficient in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory of any individual. 
  
 (ii) Company and each Subsidiary has taken all reasonable precautions to protect the secrecy,
confidentiality, and value of its Trade Secrets. 
  
 (iii) Company and each Subsidiary has good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets used by it. The Trade Secrets are not part of the public knowledge or literature, and, to Company’s
Knowledge, have not been used, divulged, or appropriated either for the benefit of any Person (other than Company or a Subsidiary) or to the detriment of Company and its Subsidiaries. No Trade Secret is subject to any adverse claim or has been
challenged or threatened in any way. 
  
 Section
3.22 Certain Payments. Since June 30, 1997, neither Company nor a Subsidiary or any director, officer, member, manager, agent, or employee of Company or a Subsidiary, or to Company’s Knowledge, any other Person associated
with or acting for or on behalf of Company or a Subsidiary, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form,
whether in money, property, or services (i) to obtain favorable treatment in securing business, (ii) to pay for favorable treatment for business secured, (iii) to obtain special concessions or for special concessions already obtained, for or in
respect of Company or a Subsidiary or any Affiliate of Company or a Subsidiary, or (iv) in violation of any Legal Requirement, or (b) established or maintained any fund or asset that has not been recorded in the books and records of Company or a
Subsidiary. 
  
 Section 3.23 FCC Licenses;
Operations of Licensed Facilities. 
  
 (a)
Company and its Subsidiaries own and operate the television stations listed in Schedule 3.23(a) (the “Licensed Facilities”). 
  
 (b) Company and each of its Subsidiaries have, and are the authorized legal holders of, all FCC licenses and other authorizations
necessary or used in the operation of the business of Company and the Subsidiaries as presently operated, including those necessary or used in the operation of the Licensed Facilities (the “FCC Licenses”). Company and its
Subsidiaries have operated in material compliance with the terms of the FCC Licenses and the requirements of the Communications Act. Company has, and each of its Subsidiaries has, timely filed or made all applications, reports and other disclosures
required by the FCC to be made with respect to the Licensed Facilities and has timely paid all FCC regulatory fees with respect thereto. All FCC Licenses are validly held and are in full force and effect, unimpaired by any act or omission of
Company, any of its Subsidiaries (or, to Company’s Knowledge, their respective predecessors), or their respective officers, managers, employees or agents. Except as set forth in Schedule 3.23(b), no application or Proceeding (other than
investigations of which Company has no Knowledge) is pending before the FCC with respect to any FCC License, and, to Company’s Knowledge, there is not pending before the FCC any Proceeding, notice of violation or order of 

  

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forfeiture relating to any Licensed Facility, and Company has no Knowledge of any basis that could reasonably be expected to cause the FCC not to renew any
FCC License or to take any other adverse action against any Licensed Facility (other than Proceedings to amend FCC rules or the Communications Act of general applicability to the television broadcast industry). There is not pending and, to
Company’s Knowledge, there is not Threatened, any action by or before the FCC to revoke, suspend, cancel, rescind, fail to renew, or modify any FCC License (other than Proceedings to amend FCC rules or the Communications Act of general
applicability to the television broadcast industry). Other than in any Contracts transferred to Shop At Home Network, LLC on October 30, 2002, neither Company nor any Subsidiary has waived any must carry rights pertaining to the Licensed Facilities.

  
 Section 3.24 Relationships with
Affiliates. None of Company, a Subsidiary or any Affiliate of Company or a Subsidiary has, or since June 30, 1999, has had, any interest in any property (whether real, personal, or mixed and whether tangible or intangible), used in or pertaining
to the business of Company and the Subsidiaries. Neither Company nor any Affiliate of Company or of a Subsidiary is, or since June 30, 1999, has owned (of record or as a beneficial owner) an equity interest or any other financial or profit interest
in, a Person that has (i) had business dealings or a material financial interest in any transaction with Company or a Subsidiary other than business dealings or transactions conducted in the Ordinary Course of Business with Company or a Subsidiary
at substantially prevailing market prices and on substantially prevailing market terms, or (ii) engaged in competition with Company or a Subsidiary with respect to the business of Company and the Subsidiaries. Except as set forth in Schedule
3.24, none of Company, a Subsidiary or any Affiliate of Company or of a Subsidiary is a party to any Contract with, or has any claim or right against, Company or a Subsidiary. 
  
 Company has not since July 30, 2002 extended or maintained credit, arranged for the extension of credit or renewed an extension of credit,
in the form of a personal loan to or for any director or executive officer (or equivalent thereof) of Company. 
  
 Section 3.25 Indemnification Obligations. Schedule 3.25 is a list of all indemnification agreements, by-laws, and other
contractual or other requirements that impose obligations of indemnification on Company or its Subsidiaries with respect to claims asserted against Company’s or its Subsidiaries’ directors and officers. Company is not aware of any
indemnification claim any director or officer of Company or its Subsidiaries may have against it or its Subsidiaries. 
  
 Section 3.26 Proxy Statement. Other than information supplied in writing by Parent and its Affiliates for inclusion in the Proxy
Statement, with respect to which Company gives no representation, the Proxy Statement will not on the date the Proxy Statement is first mailed to shareholders of Company or at the time of the Shareholders Vote, contain any statement which, at such
time and in light of the circumstances under which it is made, is false or misleading with respect to any material fact, omits to state any material fact necessary in order to make such statements made in the Proxy Statement not false or misleading,
or omits to state any material fact necessary to correct any statement in any earlier communication with respect to the solicitation of proxies for the Shareholders Meeting which has become false or misleading. If at any time prior to the
Shareholders Vote, any event relating to Company or any of its Affiliates 

  

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that should be set forth in a supplement to the Proxy Statement is discovered by Company, Company shall promptly inform Parent thereof. 
  
 Section 3.27 Brokers or Finders. Except for CobbCorp LLC
and Avondale Partners, LLC, neither Company nor any Subsidiary of Company has incurred any obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions, fairness opinion, or other similar payment
in connection with this Agreement and, if the Closing does not occur, shall indemnify and hold Parent and its Affiliates harmless from any such payment alleged to be due by or through Parent or its Affiliates as a result of Company’s or its
Subsidiaries’ action. 
  
 Section 3.28
Disclosure. No representation or warranty of Company in this Agreement (including the Schedules) omits to state a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were made, not
misleading. 
  
 ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF
PARENT 
  
 Parent represents and warrants to Company as
follows: 
  
 Section 4.1 Organization and Good
Standing. Parent is a corporation duly organized, validly existing, and in good standing under the laws of the State of Ohio. 
  
 Section 4.2 Authority; No Conflict. 
  
 (a) This Agreement constitutes the legal, valid, and binding obligation of Parent, enforceable against Parent in accordance with its
terms. Parent has the right, power, and authority to execute and deliver this Agreement and each other Transaction Document to which it is a party and to perform its obligations hereunder and thereunder. 
  
 (b) Neither the execution and delivery of this Agreement by
Parent nor the consummation or performance of any of the Contemplated Transactions by Parent will give any Person the right to prevent, delay, or otherwise interfere with any of the Contemplated Transactions pursuant to: 
  
 (i) any provision of Parent’s Organizational Documents;

  
 (ii) any resolution adopted by the board of
directors or the shareholders of Parent; 
  
 (iii) any Legal Requirement or Order to which Parent may be subject; or 
  
 (iv) any Contract to which Parent is a party or by which Parent may be bound. 
  

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 Except for the Governmental Authorizations contemplated by Article VII, Parent is not and will not be required to
obtain any Consent from any Person in connection with its execution and delivery of this Agreement or its consummation or performance of any of the Contemplated Transactions. 
  
 Section 4.3 Certain Proceedings. There is no pending Proceeding that has been commenced against Parent
and that challenges, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Parent’s Knowledge, no such Proceeding has been Threatened. 
  
 Section 4.4 Proxy Statement Preparation. The information
supplied in writing by Parent for inclusion in the Proxy Statement will not, on the date the Proxy Statement is first mailed to shareholders of Company or at the time of the Shareholders Vote, contain any statement which, at such time and in light
of the circumstances under which it is made, is false or misleading with respect to any material fact, omits to state any material fact necessary in order to make such statements made in the Proxy Statement not false or misleading, or omits to state
any material fact necessary to correct any statement made by Parent in any earlier communication with respect to the solicitation of proxies for the Shareholders Meeting which has become false or misleading. If at any time prior to the Shareholders
Vote, any event relating to Parent or any of its Affiliates that should be set forth in the supplement to the Proxy Statement is discovered by Parent, Parent shall promptly inform Company thereof. 
  
 Section 4.5 Brokers or Finders. Except for Allen &
Company, Incorporated, Parent has incurred no obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar payment in connection with this Agreement and shall indemnify and hold
Company harmless from any such payment alleged to be due by or through Company as a result of Parent’s action. 
  
 ARTICLE V. COVENANTS OF COMPANY PRIOR TO CLOSING DATE 
  
 Section 5.1 Access and Investigation. Between the date of this Agreement and the Closing Date, Company shall, and shall cause
the Subsidiaries and their Representatives to, (a) afford Parent and its Representatives and, if applicable, prospective lenders and their Representatives (collectively, “Parent’s Advisors”) full and free access to
Company’s and the Subsidiaries personnel, properties (including subsurface testing), contracts, books and records, and other documents and data, (b) furnish Parent and Parent’s Advisors with copies of all such contracts, books and records,
and other existing documents and data as Parent reasonably requests, and (c) furnish Parent and Parent’s Advisors with such additional financial, operating, and other data and information as Parent reasonably requests. Any information provided
to or obtained by Parent and Parent’s Advisors hereunder will be subject to the Confidentiality Agreement. 
  
 Section 5.2 Operation of the Business. Between the date of this Agreement and the Closing Date, Company shall, and shall cause each
Subsidiary to: 
  

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 (a) conduct its business only in the Ordinary Course of Business; 
  
 (b) use its best efforts to preserve intact its current
business organization, keep available the services of its current officers, employees, and agents, and maintain the relations and goodwill with suppliers, customers, landlords, creditors, employees, agents, affiliates, advertisers and others having
business relationships with it; 
  
 (c) operate
the Licensed Facilities in compliance in all material respects with the terms of the FCC Licenses and all applicable Legal Requirements, including, without limitation, the rules and regulations of the FCC and the Communications Act. 
  
 (d) confer with Parent concerning operational matters of a
material nature; 
  
 (e) not cause, by any act or
failure to act, or authorize any cable system located within the designated market area of any Licensed Facility to refuse to carry the signal of such Licensed Facility; and 
  
 (f) otherwise report periodically to Parent, at Parent’s reasonable request, concerning the status of
its business, operations, and finances. 
  
 Section
5.3 Negative Covenant. Except as otherwise expressly permitted by this Agreement, between the date of this Agreement and the Closing Date, Company shall not, and shall cause the Subsidiaries not to, without Parent’s prior consent,
take any affirmative action, or fail to take any reasonable action within their or its control, as a result of which any of the changes or events listed in Section 3.15 is likely to occur. 
  
 Section 5.4 Notification. Between the date of this
Agreement and the Closing Date, Company shall promptly notify Parent in writing if Company or a Subsidiary becomes aware of any fact or condition that causes or constitutes a breach of any of Company’s representations and warranties as of the
date of this Agreement, or if Company or a Subsidiary becomes aware of the occurrence after the date of this Agreement of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a breach of any such
representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. During the same period, Company shall promptly notify Parent of the occurrence of any breach of any
covenant of Company in this Article V or of the occurrence of any event that may make the satisfaction of the conditions in Article VIII or X impossible, improbable or unlikely. 
  
 Section 5.5 Reasonable Best Efforts. Between the date of
this Agreement and the Closing Date, Company shall use its reasonable best efforts to cause the conditions in Articles VIII and X to be satisfied. 
  

Section 5.6 No Solicitation. 
  
 (a) During the term of this Agreement, Company agrees that it shall not, and it shall not authorize or permit any of its Affiliates or any
officer, director, employee, investment banker, attorney or other advisor or representative of Company or any of its Affiliates, directly or 

  

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indirectly, to (i) solicit, initiate or knowingly encourage the submission of any inquiry, proposal or offer (whether in writing or otherwise) requesting or
requiring Company to be involved with (A) any merger, consolidation, share exchange, business combination or other similar transaction other than the Contemplated Transactions, (B) any sale, lease, exchange, mortgage, pledge, transfer or other
disposition of any FCC license, any television station, or any other assets representing 10% or more of the assets of Company and its Subsidiaries, taken as a whole, in a single transaction or series of transactions, (C) any acquisition by any
Person of beneficial ownership or the right to acquire beneficial ownership of, or formation of any “group” (as such term is defined under Section 13(d) of the 1934 Act) which would beneficially own or have the right to acquire beneficial
ownership of, 10% or more of the outstanding voting securities of Company or (D) any issuance, sale or grant of any additional shares of capital stock of Company, or securities convertible into or exchangeable for, or options, warrants, calls,
commitments or rights of any kind to acquire, any shares of capital stock of Company, which, when aggregated with all other such issuances, sales or grants after the date hereof, constitute, on a fully-diluted basis, 10% or more of the capital stock
of Company (any of the foregoing, an “Acquisition Proposal”), (ii) enter into any agreement with respect to any Acquisition Proposal or (iii) participate in any discussions or negotiations regarding, or furnish to any Person any
information for the purpose of facilitating the making of, or take any other action to knowingly facilitate any inquiries or the making of, any proposal that constitutes, or may reasonably be expected to lead to, any Acquisition Proposal; provided
that nothing contained in this Agreement shall prevent Company upon authorization of its Board of Directors at any time prior to termination of this Agreement from: 
  
 (i) providing information in response to a request by a Person who has delivered to the Board of Directors
of Company an Acquisition Proposal that was unsolicited or that did not otherwise result from a breach of this Section 5.6 and is more likely than not to lead to a Superior Proposal, as determined pursuant to clause (ii) below, if the Board
of Directors of Company receives from the Person so requesting such information an executed confidentiality agreement the terms of which are (without regard to the terms of the Acquisition Proposal) no less favorable to Company and no less
restrictive on the Person requesting such information than those contained in the Confidentiality Agreement executed in connection herewith; or 
  
 (ii) engaging in negotiations or discussions with a Person who has delivered to the Board of Directors of Company an Acquisition Proposal
and a confidentiality agreement in compliance with clause (i) above, if, and only to the extent that, (x) the Board of Directors of Summit determines in good faith (after consultation with its financial advisor and independent outside legal counsel)
that the Acquisition Proposal, if accepted, is more likely than not to be consummated, (y) the Board of Directors of Company determines in good faith (after consultation with its financial advisor) that the Acquisition Proposal would, if
consummated, result in a transaction that is more favorable to Company’s stockholders (with respect to financial and other terms) than the Proposed Transaction and (z) the Board of Directors determines in good faith (after consultation with its
financial advisor and independent outside legal counsel) that 

  

 -39- 

 
the failure to engage in negotiations or discussions with respect to such Acquisition Proposal would constitute a breach of its fiduciary duties to
Company’s stockholders under applicable laws (any Acquisition Proposal as to which such determinations are made, a “Superior Proposal”). 
  

Company shall promptly advise Parent of any Acquisition Proposal received (including the terms thereof and the identity of the person making the Acquisition Proposal)
and any inquiries made with respect to any Acquisition Proposal. All liabilities of Company arising from breaches of this Section 5.6 by Company shall survive termination of this Agreement unless Company terminates this Agreement and pays the
Break-up Fee in accordance with the terms of Section 5.6(b). 
  
 (b) Company may terminate this Agreement at any time prior to the receipt of Shareholder Approval if: 
  
 (i) Company’s Board of Directors authorizes Company, subject to complying with the terms of Section 5.6(a), to enter into a
binding written agreement concerning a transaction that constitutes a Superior Proposal with respect to which the Board of Directors of Company has determined, in good faith (after consultation with its financial advisor and outside independent
legal counsel), that it would be a breach of its fiduciary duties to Company’s stockholders under applicable laws to not terminate this Agreement so as to enter into such agreement and Company notifies Parent in writing that it intends to
terminate this Agreement and enter into such agreement; 
  
 (ii) Parent does not make, within 15 days of receipt of Company’s written notification of its intention to enter into a binding agreement for a Superior Proposal, an offer that the Board of Directors of Company
determines, in good faith (after consultation with its financial advisor and independent outside legal counsel), is at least as favorable to the stockholders of Company as the Superior Proposal with respect to financial and other material terms;
provided that, during the 15 days following Company’s receipt of Parent’s written notification (the “Renegotiation Period”), Company shall reasonably consider and discuss in good faith with Parent all proposals submitted
by Parent and, without limiting the foregoing, shall meet with, and cause its financial advisors and legal counsel from time to time as reasonably required by Parent to consider and discuss Parent’s proposals with Parent and its advisors,
attorneys and other representatives; and provided, further, that Company shall not enter into a binding agreement referred to in Section 5.6(b)(i) until at least the 16th day after the beginning of the Renegotiation Period; and provided further that Company shall notify Parent promptly if its intention to enter into the written
agreement referred to in its notification shall change at any time after giving such notification; and 
  
 (iii) either (A) Company has paid to Parent, in cash by wire transfer of immediately available funds to an account designated by Parent,
(1) an amount equal to the aggregate amount of all fees and expenses (including but not limited to all attorneys’ fees, accountants’ fees, financial advisory fees and filing fees) 

  

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that have been paid or that may become payable by or on behalf of Parent in connection with the Contemplated Transactions as reasonably supported by
documentation, but in no event to exceed $1,500,000, and (2) a non-refundable fee in an amount equal to $6,000,000 (the amounts payable under clauses (1) and (2), collectively, the “Break-up Fee”), or (2) Parent waives the Break-up
Fee, in which case Section 4 of the Confidentiality Agreement shall terminate and be of no further force or effect and Parent may pursue all remedies available to it at law or in equity. The Break-up Fee, if not waived by Parent, will serve as the
exclusive remedy to Parent under this Agreement in the event of the termination by Company pursuant to this Section 5.6. 
  
 Section 5.7 Preparation of Proxy Statement. 
  

(a) As soon as practicable after the execution of this Agreement, Company shall prepare and cause to be filed with the SEC preliminary
proxy materials (the “Proxy Statement”) for the solicitation of approval of the shareholders of Company of the Contemplated Transactions (the “Shareholder Approval”) and such other matters as Company and Parent may
reasonably agree. Subject to compliance by Parent with its covenants in Section 6.2, Company shall cause the Proxy Statement related thereto to comply in all material respects with applicable law and the rules and regulations promulgated by
the SEC and to respond promptly to any comments of the SEC or its staff and shall use reasonable best efforts to cause the Proxy Statement to be mailed to Company’s shareholders as promptly as practicable. Each party shall promptly furnish to
the other party all information concerning itself, its shareholders and its affiliates that may be required or reasonably requested in connection with any action contemplated by this Section. If any event relating to any party occurs, or if any
party becomes aware of any information, that should be disclosed in an amendment or supplement to the Proxy Statement, then such party shall inform the other thereof and shall cooperate with the other in filing such amendment or supplement with the
SEC and, if appropriate, in mailing such amendment or supplement to the shareholders of Company. The Proxy Statement shall include the recommendations of the Board of Directors of Company in favor of Shareholder Approval. Parent and its advisors
shall have a reasonable opportunity to review and comment on the proxy materials prior to any filing with the SEC. 
  
 (b) Company will notify Parent promptly of the receipt of any comments from the SEC or its staff or any other government official and of
any requests by the SEC or its staff or any other government official for amendments or supplements to the Proxy Statement or for additional information, and will supply Parent with copies of all such comments and any correspondence between Company
and its representatives, and the SEC or its staff or any other government official with respect thereto. If at any time prior to the Closing Date, any event shall occur that should be set forth in an amendment of, or a supplement to, the Proxy
Statement, Company agrees promptly to prepare and file such amendment or supplement and to distribute such amendment or supplement as required by applicable law, including mailing such supplement or amendment to the shareholders of Company. Parent
and its advisors shall have a reasonable opportunity to review and comment on any amendment or supplement to the Proxy Statement prior to any filing with the SEC. 
  

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 Section 5.8 Shareholders Meeting. Company shall take all action necessary in
accordance with applicable law and its amended and restated charter, as amended, and its bylaws, to (a) within ten days after the date hereof, set a record date for a meeting of Company’s shareholders (the “Shareholders
Meeting”) to provide for the vote of Company’s shareholders (the “Shareholders Vote”) with respect to the matters subject to Shareholder Approval and with respect to the other matters to be voted upon pursuant to
Section 5.7, and (b) on the date hereof, call and publicly announce such Shareholders Meeting and such record date. Additionally, Company shall use its best efforts to hold and convene the Shareholders Meeting. Except as required by the SEC
or applicable court order or Tennessee law, Company shall not postpone or adjourn (other than for the absence of a quorum) the Shareholders Meeting without the consent of Parent. Company shall take all other action necessary or advisable to secure
the Shareholder Approval. 
  
 Section 5.9
Options. Company shall use its reasonable best efforts to have the holders of outstanding vested options exercise such stock options prior to or contemporaneously with the closing of the Contemplated Transactions. Company shall use its
reasonable best efforts prior to the Effective Time to purchase options for which the exercise price exceeds $4.05 in a manner satisfactory to Parent and shall consult and coordinate with Parent regarding such purchases. 
  
 Section 5.10 Rights Plan. Prior to January 15, 2004,
Company shall amend or modify, to Parent’s satisfaction, the Rights Agreement between Company and CompuTrust dated June 2001. Company shall not make any further amendments or modifications to such Rights Agreement without Parent’s consent
prior to any termination of this Agreement. 
  
 ARTICLE VI.
COVENANTS OF PARENT PRIOR TO CLOSING DATE 
  
 Section
6.1 Reasonable Best Efforts. Between the date of this Agreement and the Closing Date, Parent shall use its reasonable best efforts to cause the conditions in Articles VIII and X to be satisfied. 
  
 Section 6.2 Preparation of Proxy Statement. None of the
information to be supplied by Parent or its Affiliates for inclusion in the Proxy Statement will, at the time the Proxy Statement is mailed to the shareholders of Company, or as of the Shareholders Vote, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 ARTICLE VII. MISCELLANEOUS COVENANTS 
  
 Section 7.1 Required Approvals. As promptly as possible
after the date of this Agreement, Parent and Company shall make all filings required by Legal Requirements to be made by them in order to consummate the Contemplated Transactions. Between the date of this Agreement and the Closing Date, Parent and
Company shall, and 

  

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Company shall cause the Companies to, cooperate with each other with respect to all filings that the other elects to make or is required by Legal
Requirements to make in connection with the Contemplated Transactions. 
  
 Without
limiting the generality of the foregoing, each party hereto shall (a) give the other party prompt notice of the commencement of any Proceeding by or before any Governmental Body with respect to this Agreement or the other Transaction Documents or
any of the Contemplated Transactions, (b) keep the other party informed as to the status of any such Proceeding, and (c) promptly inform the other party of any communication to or from the Federal Trade Commission, the Antitrust Division of the
Department of Justice, or any other Governmental Body regarding this Agreement or the Contemplated Transaction. 
  
 Section 7.2 Hart-Scott-Rodino. Without limiting the generality of Section 7.1, Company and Parent shall, by December 31, 2003,
make and effect all registrations, filings and submissions required to be made or effected by them pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and other applicable Legal
Requirements with respect to this Agreement and the other Transaction Documents and the Contemplated Transactions. Each of Company and Parent shall bear one-half of the cost of such filing. Without limiting the generality of the foregoing, each of
Parent and Company shall (a) promptly provide all information requested by any Governmental Body in connection with this Agreement and the other Transaction Documents and the Contemplated Transactions, and (b) promptly take all actions and steps
necessary to obtain any antitrust clearance or similar clearance required to be obtained from the Federal Trade Commission, the Antitrust Division of the Department of Justice, any state attorney general, any foreign competition authority or any
other governmental entity in connection with the Contemplated Transactions. The actions required to be taken by Parent and Company pursuant to this Section in order to obtain required antitrust clearances will include using reasonable efforts to
avoid or set aside any preliminary or permanent injunction or other Order but do not include making arrangements for the disposition of particular assets and making arrangements to hold such assets separate pending their disposition. 
  
 Section 7.3 FCC Actions. Company and Parent shall, by
December 31, 2003, prepare and file applications with the FCC requesting the FCC’s consent to the assignment of the FCC Licenses to Parent or its Affiliate (the “FCC Applications”). Company and Parent shall make any submissions
required under the FCC’s rules or the Communications Act or requested by the FCC or its staff and shall use all commercially reasonable efforts to cooperate with one another to expedite the preparation of the FCC Applications and to pursue an
order of the FCC (or its staff) granting the FCC Applications without any material unfavorable condition (the “FCC Order”). Any fee payable to the FCC in connection with filing the FCC Applications will be borne one-half by Company
and one-half by Parent. If Parent consents to Closing occurring hereunder before the FCC Order shall have become a Final Order, then the parties’ covenants under this Agreement shall survive the Closing until the FCC Order shall have become a
Final Order. A “Final Order” means an order of a governmental authority that is in full force and effect and with respect to which no appeal, request for stay, request for reconsideration or other request for review is pending; with
respect to which the time for appeal, requesting a stay, 

  

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requesting reconsideration or requesting other review has expired; and with respect to which the time for the governmental authority to set aside the order
sua sponte has expired. 
  
 Section 7.4
Indemnification of Officers and Directors. For a period of six years following the Effective Time, Parent shall observe, to the fullest extent permitted by Tennessee law, all rights to indemnification existing at or prior to the date hereof
in favor of those Persons who are, or were, directors and officers of Company at or prior to the date of this Agreement (the “Indemnitees”) by reason of written indemnification agreement and applicable law. 
  
 ARTICLE VIII. CONDITIONS PRECEDENT TO EACH PARTY’S OBLIGATION TO CLOSE

  
 Each Party’s obligation consummate the Merger and to
take the other actions required to be taken by it at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by the parties, in whole or in part): 
  
 Section 8.1 Consents. Each of the Consents identified in
Schedule 3.2 must have been obtained and must be in full force and effect. 
  
 Section 8.2 HSR Act. The waiting period (and any extensions thereof) applicable to the Contemplated Transactions under the HSR Act shall have been terminated or shall have expired. 
  
 Section 8.3 Shareholder Approval. The Shareholders
Meeting, the Shareholders Vote and the Shareholder Approval shall have been consummated and obtained in favor of the Contemplated Transactions. 
  
 Section 8.4 No Proceedings. Since the date of this Agreement, there must not have been commenced or Threatened against either party,
or against any Person affiliated with a party, any Proceeding (a) involving any challenge to, or seeking damages or other relief in connection with, any of the Contemplated Transactions, or (b) that may have the likely effect of preventing,
delaying, making illegal, or otherwise interfering with any of the Contemplated Transactions. 
  
 Section 8.5 No Prohibition. Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or
indirectly (with or without notice or lapse of time), materially contravene, or conflict with, or result in a material violation of, or cause either party or any Person affiliated with either party to suffer any material adverse consequence under,
(a) any applicable Legal Requirement or Order, or (b) any Legal Requirement or Order that has been published, introduced, or otherwise proposed by or before any Governmental Body. 
  

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 Section 8.6 No Injunction. There must not be in effect any Legal Requirement or any
injunction or other Order that prohibits the Merger. 
  
 ARTICLE
IX. CONDITIONS PRECEDENT TO PARENT’S OBLIGATION TO CLOSE 
  
 Parent’s obligation consummate the Merger and to take the other actions required to be taken by Parent at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be
waived by Parent, in whole or in part): 
  
 Section
9.1 Accuracy of Representations. Each of Company’s representations and warranties in this Agreement must have been accurate as of the date of this Agreement, and must be accurate, in all material respects, as of the Closing Date
as if made on the Closing Date. 
  
 Section 9.2
Company’s Performance. Each of the covenants and obligations that Company is required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been duly performed and complied with in all material
respects. 
  
 Section 9.3 Additional
Documents. Each of the following documents must have been delivered to Parent: 
  
 (a) the Articles of Merger, duly executed by Company; 
  
 (b) a certificate executed by Company certifying to Parent that each of Company’s representations and
warranties in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing Date as if made on the Closing Date; 
  
 (c) an opinion of Bone McAllester Norton PLLC, dated the Closing Date, in the form of Exhibit 9.3(c);

  
 (d) an opinion of Wiley, Rein & Fielding,
dated the Closing Date, in form and substance acceptable to Parent; 
  
 (e) a certificate executed by each director and officer of Company and its Subsidiaries indicating that such Person is not aware of any indemnification claim he has against the Company or its Subsidiaries; and

  
 (f) such other documents as Parent may
reasonably request for the purpose of (i) evidencing the accuracy of any of Company’s representations and warranties, (ii) evidencing the performance by Company of, or the compliance by Company with, any covenant or obligation required to be
performed or complied with by Company, (iii) evidencing the satisfaction of any condition referred to in this Article IX, or (iv) otherwise facilitating the consummation or performance of any of the Contemplated Transactions. 
  
 Section 9.4 Indebtedness. Company and the Subsidiaries
shall have no indebtedness to third parties other than indebtedness to Parent. 
  

 -45- 

 Section 9.5 FCC Actions. The FCC Order shall have become a Final Order. 

 
 ARTICLE X. CONDITIONS PRECEDENT TO 
 COMPANY’S OBLIGATION TO CLOSE 
  
 Company’s obligation to consummate the Merger and to take the other actions required to be taken by Company at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Company, in whole or in part): 
  
 Section 10.1 Accuracy of Representations. Each of Parent’s representations and warranties in this Agreement must have
been accurate in all respects as of the date of this Agreement and must be accurate in all respects as of the Closing Date as if made on the Closing Date. 
  
 Section 10.2 Parent’s Performance. Each of the covenants and obligations that Parent is required to perform or to comply
with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects. 
  
 Section 10.3 Additional Documents. Each of the following documents must have been delivered to Company: 
  
 (a) the Articles of Merger, executed by Merger Sub;

  
 (b) a certificate executed by Parent
certifying to Company that each of Parent’s representations and warranties in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing Date as if made on the Closing Date;

  
 (c) such documents as Company may reasonably
request for the purpose of (i) evidencing the accuracy of any representation or warranty of Parent, (ii) evidencing the performance by Parent of, or the compliance by Parent with, any covenant or obligation required to be performed or complied with
by Parent, (iii) evidencing the satisfaction of any condition referred to in this Article X, or (iv) otherwise facilitating the consummation of any of the Contemplated Transactions. 
  
 Section 10.4 FCC Actions. The FCC Order shall have been
granted. 
  

 -46- 

 ARTICLE XI. TERMINATION 
  
 Section 11.1 Termination of Agreement. This Agreement may be terminated and the transactions
contemplated hereby abandoned at any time prior to the Closing Date: 
  
 (a) by mutual written consent of Parent and Company duly authorized by their respective Boards of Directors; 
  
 (b) by either Parent or Company if there is any law or regulation that makes consummation of the Contemplated Transactions illegal or
otherwise prohibited or if consummation of the Contemplated Transactions would violate any non-appealable final order, decree or judgment of any Governmental Body having competent jurisdiction; 
  
 (c) if the Closing shall not have been consummated on or
before June 15, 2004 (or, if the only condition on June 15, 2004 yet to be satisfied is that pursuant to Section 9.5 or Section 10.4, on or before August 31, 2004), by Parent or Company on or after June 16, 2004 (or, if the preceding
parenthetical applies, on or after September 1, 2004) (the “Termination Date”); provided that such right to terminate this Agreement will not be available to any party whose failure to perform or satisfy any covenant, condition or
obligation of such party under this Agreement when performance or satisfaction thereof was due is the cause of such delay; 
  
 (d) by either Parent or Company if any of the representations or warranties of the other party contained herein are inaccurate or untrue
in any respect if qualified by the word “material” or in any material respect if not so qualified, and such inaccuracy cannot reasonably be expected to be cured prior to the Termination Date and, in the case of Company, the failure of any
representation and warranty to satisfy the foregoing standard would reasonably be expected to have a material adverse effect on Company or any of its Subsidiaries; 
  
 (e) by Parent if Company has not within 120 days from the date hereof obtained Shareholder Approval;

  
 (f) by Parent, provided it is not then in
material breach of any of its obligations under this Agreement, if Company fails to perform or satisfy in any material respect any agreement, covenant, condition or obligation in this Agreement when performance or satisfaction thereof is due and
does not cure the failure within 20 business days after Parent delivers written notice thereof; 
  
 (g) by Company, provided it is not then in material breach of any of its obligations under this Agreement, if Parent fails to perform or
satisfy in any material respect any agreement, covenant, condition or obligation in this Agreement when performance thereof is due and does not cure the failure within 20 business days after notice by Company thereof; 
  
 (h) by Company, in accordance with Section 5.6; or

  

 -47- 

 (i) by Parent if (y) the Board of Directors of Company shall have withdrawn or changed
its recommendation to shareholders to approve the Merger or (z) Company enters into an agreement with respect to a Superior Proposal. 
  
 The party desiring to terminate this Agreement pursuant to this Section 11.1 will give written notice of such termination to the other party. 
  
 Section 11.2 Effect of Termination. Each party’s
right of termination under Section 11.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. If this Agreement is terminated pursuant
to Section 11.1(e) at or after the time a competing bid for acquisition of Company or, directly or indirectly, substantially all of Company’s assets has been announced to the public, or pursuant to Section 11.1(h) or
11.1(i), then Company shall pay Parent the Break-Up Fee as set forth in Section 5.6 and any obligation hereunder to pay the Break-Up Fee shall survive termination of this Agreement. If this Agreement is otherwise terminated pursuant to
Section 11.1, all further obligations of the parties under this Agreement will terminate, except that the obligations in 12.2 and 12.3 will survive; provided, however, that if this Agreement is terminated by a party under
Section 11.1,(d), (f) or (g), the terminating party’s right to pursue all legal remedies will survive such termination unimpaired. 
  
 ARTICLE XII. INDEMNIFICATION; REMEDIES 
  
 Section 12.1 Survival. The representations, warranties, covenants, or obligations of the parties set
forth in this Agreement, the Schedules, and any other certificate or document delivered pursuant to this Agreement will not survive the Closing. This Section 12.1 shall not limit any covenant or agreement of the parties which by its terms
requires or involves performance after the Closing Date. 
  
 Section 12.2 Indemnification by Company. If the Closing does not occur, Company shall indemnify and hold harmless Parent, its Affiliates and their respective Representatives (collectively, the “Indemnified
Persons”) for, and shall pay to the Indemnified Persons the amount of, any loss, liability, claim, damage (including incidental and consequential damages), expense (including costs of investigation and defense and reasonable attorneys’
fees) or diminution of value, whether or not involving a third-party claim (collectively, “Damages”), arising, directly or indirectly, from or in connection with (a) any breach of any representation or warranty made by Company in
this Agreement or any other certificate or document delivered by Company pursuant to this Agreement; (b) any breach by Company of any covenant or obligation of Company in this Agreement; and (c) any claim by any Person for brokerage or finder’s
fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by any such Person with either Company or any of its Subsidiaries (or any Person acting on their behalf) in connection with any of the
Contemplated Transactions. The remedies provided in this Section 12.2 will not be exclusive of or limit any other remedies that may be available to Parent or the other Indemnified Persons. 
  

 -48- 

 Section 12.3 Indemnification by Parent. If the Closing does not occur, Parent shall
indemnify and hold harmless Company, and shall pay to Company the amount of any Damages arising, directly or indirectly, from or in connection with (a) any breach of any representation or warranty made by Parent in this Agreement or in any
certificate delivered by Parent pursuant to this Agreement, (b) any breach by Parent of any covenant or obligation of Parent in this Agreement, or (c) any claim by any Person for brokerage or finder’s fees or commissions or similar payments
based upon any agreement or understanding alleged to have been made by such Person with Parent (or any Person acting on its behalf) in connection with any of the Contemplated Transactions. 
  
 ARTICLE XIII. GENERAL PROVISIONS 
  
 Section 13.1 Expenses; Attorneys’ Fees. Except as
otherwise expressly provided in this Agreement, each party will bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all fees and expenses
of agents, representatives, counsel, and accountants. In the event of termination of this Agreement, the obligation of each party to pay its own expenses will be subject to any rights of such party arising from a breach of this Agreement by the
other party. In any action to enforce a party’s rights and remedies under this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees from the other party. 
  
 Section 13.2 Public Announcements. Each party shall
issue a press release that has been approved by the other party upon execution of this Agreement. Unless otherwise agreed to in writing by both parties, neither party shall make any other disclosure regarding the Contemplated Transactions except to
the extent that, in the opinion of outside counsel to such party, disclosure is required by law or legal process, but only after prior notice to and consultation with the other party and its outside legal counsel has been given and conducted
regarding any such disclosure. Company and Parent will consult with each other concerning the means by which a Company’s employees, customers, and suppliers and others having dealings with a Company will be informed of the Contemplated
Transactions, and Parent has the right to be present for any such communication. 
  
 Section 13.3 Confidentiality. The parties shall continue to be bound by the Confidentiality Agreement. 
  
 Section 13.4 Notices. All notices, consents, waivers, and other communications under this Agreement
must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopier (with written confirmation of receipt), provided that a copy is mailed by certified mail, return
receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and telecopier numbers set forth below (or to such other addresses
and telecopier numbers as a party may designate by notice to the other parties): 
  

 -49- 

 Company: 
  
 SUMMIT AMERICA TELEVISION, INC. 
 400 Fifth Avenue, Suite 203 
 Naples, Florida 34102 
 Attn: George R. Ditomassi, President and Chief Executive Officer

 Facsimile No.: (239) 643-3682 
  
 with a copy to: 
  
 BONE McALLESTER NORTON PLLC 
 511 Union Street, Suite 1600 
 Nashville, Tennessee 37219 
 Attn: Charles W. Bone, Esq. 
 Facsimile No.: (615) 238-6301 
  
 Parent: 
  
 THE E.W. SCRIPPS COMPANY 
 312 Walnut Street 
 28th
Floor 
 Cincinnati, Ohio 45202 
 Attn: Tim Peterman, Vice President Corporate Development 
 Facsimile No.: (513) 977-3024

  
 with a copy to: 
  
 BAKER & HOSTETLER LLP 

312 Walnut Street 
 Suite 3200 
 Cincinnati, Ohio 45202 
 Attn: William Appleton, Esq. 
 Facsimile No.: (513) 929-0303 
  
 Section 13.5 Jurisdiction; Service Of Process. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought against any of the parties in the courts
of the State of Ohio, Hamilton County, or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Ohio, and each party consents to the jurisdiction of such courts (and of the appropriate appellate
courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world. 
  
 Section 13.6 Further Assurances. Each party agrees (a)
to furnish to the other party such further information, (b) to execute and deliver to the other party such other documents, and (c) to do such other acts and things, all as the other party reasonably requests for  

  

 -50- 

 
the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement. 
  
 Section 13.7 Waiver. The parties’ rights and
remedies are cumulative and not alternative. A party’s failure or delay in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will not operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent
permitted by applicable law, (a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing
signed by the other party; (b) no waiver given by a party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party or of the
right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement. 
  
 Section 13.8 Entire Agreement and Modification. This Agreement, together with the Confidentiality
Agreement, supersedes all prior agreements between the parties with respect to its subject matter and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the
parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by the party to be charged with the amendment. 
  
 Section 13.9 Schedules. 
  
 (a) The disclosures in the Schedules must relate only to the representations and warranties in the Section
of the Agreement to which they expressly relate and not to any other representation or warranty in this Agreement. 
  
 (b) In the event of any inconsistency between the statements in the body of this Agreement and those in the Schedules (other than an
exception expressly set forth as such in the Schedules with respect to a specifically identified representation or warranty), the statements in the body of this Agreement will control. 
  
 Section 13.10 Assignments, Successors, and No Third-Party Rights. Neither party may assign any of its
rights under this Agreement without the prior consent of the other parties, except that Parent may assign any of its rights under this Agreement to any Affiliate of Parent. Subject to the preceding sentence, this Agreement will apply to, be binding
in all respects upon, and inure to the benefit of the successors and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties any legal or equitable right,
remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties and their successors and assigns.

  

 -51- 

 Section 13.11 Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and
effect to the extent not held invalid or unenforceable. 
  
 Section 13.12 Section Headings, Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. All references to “Section” or
“Sections” refer to the corresponding Section or Sections of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the word
“including” does not limit the preceding words or terms. 
  
 Section 13.13 Governing Law. This Agreement will be governed by the laws of the State of Ohio without regard to conflicts of laws principles, except that the laws of the State of Tennessee shall
govern the effect of the Merger on the Surviving Corporation. 
  
 Section 13.14 Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement. 
  
 [Remainder of
page intentionally left blank.] 
  

 -52- 

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

			
	 PARENT:

	
	THE E.W. SCRIPPS COMPANY
		
	By	 	/s/    Rich Bochne        
	 	 	

	 Title
	 	Rich Bochne, EVP

  

			
	 COMPANY:

	
	SUMMIT AMERICA TELEVISION, INC.
		
	By	 	/s/    Illegible        
	 	 	

	 Title
	 	Illegible

  

 -53-Employment Agreement

 Exhibit 10.63 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (including its Exhibits, the “Agreement”) is entered into on
June            , 2003 (the “Effective Date”), between THE E. W. SCRIPPS COMPANY, an Ohio corporation (together with its successors and assigns, the “Company”),
and KENNETH W. LOWE (“Executive”).  
  
 W I T N
E S S E T H : 
  
 WHEREAS, Executive is currently employed as
President and Chief Executive Officer of the Company and also serves as a member of the board of directors of the Company, and the Company desires to continue to have Executive serve in such positions; 
  
 WHEREAS, the Company desires to enter into this Agreement embodying the terms
of such continued employment and Executive desires to continue such employment and to enter into this Agreement, subject to the terms and provisions herein; 
  
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and Executive (individually a “Party” and together the
“Parties”) hereby agree as follows: 
  
 1. Position;
Duties. 
  
 (a) The Company hereby employs
Executive as President and Chief Executive Officer of the Company, and Executive hereby accepts such continued employment, on the terms and conditions set forth herein. As President and Chief Executive Officer of the Company, Executive shall report
directly to the board of directors of the Company (the “Board”). 
  
 (b) During the term of this Agreement, Executive shall be and have the titles, duties and authority of President and Chief Executive Officer of the Company. Executive 

  

 1 

 
shall devote substantially all his business time to, and use his best reasonable efforts to promote, the business and affairs of the Company. During the term
of this Agreement, Executive shall have all authorities, duties and responsibilities customarily exercised by an individual serving in those positions in a corporation the size and structure of the Company and shall perform such other duties
consistent with his positions as may be reasonably required from time to time by the Board, provided such other duties do not materially impair Executive’s ability to discharge his duties and responsibilities as contemplated at the time this
Agreement was entered into. 
  
 (c) Executive
shall not, without the prior written consent of the Company, directly or indirectly, during the term of this Agreement, other than in the ordinary course of performing his duties hereunder, render services of a business, professional or commercial
nature to any other person or firm, whether for compensation or otherwise; provided, however, that so long as it does not materially interfere with the performance of his duties hereunder, Executive may attend to outside investments, serve as a
member of the board of directors of one other corporation (in addition to service as set forth in Paragraph 2(b) below) and serve as a director, trustee or officer of, or otherwise participate in, trade, professional, educational, welfare, social,
religious and civic organizations. Anything herein to the contrary notwithstanding, nothing herein shall prevent Executive from serving on the board of directors of any Company affiliate. 
  
 2. Term; Board Position; Place of Employment. 
  
 (a) Subject to the provisions for termination hereinafter provided in Paragraph 8 below, the term of this
Agreement shall begin on the Effective Date and shall end at the close of business on December 31, 2006, provided, however, that the term of this Agreement shall automatically renew for successive one-year terms, unless either Party gives written
notice 

  

 2 

 
to the other Party not less than 90 days prior to the expiration of any such term that such Party is electing not to so extend the term of this Agreement.
Notwithstanding the foregoing, the term of this Agreement shall end on the date on which Executive’s employment is earlier terminated by either Party in accordance with the provisions of Paragraph 8(a) below. 
  
 (b) Executive shall serve, and shall be entitled and have
the right to serve, as a member of the Board and for service thereon Executive will receive only such compensation, if any, that is paid to officers of the Company for service thereon. In addition, with the Company’s prior written consent
(which consent shall not be unreasonably withheld), Executive may serve on the board of any joint venture of the Company or any affiliate. 
  
 (c) During the term of this Agreement, Executive’s principal place of employment shall be Cincinnati, Ohio. 
  
 3. Base Salary; Bonus; Equity Incentive Plans. 
  
 (a) During the term of this Agreement, the Company shall pay
to Executive an annual base salary of not less than $925,000 (“Base Salary”), payable in accordance with the Company’s payroll practices. Executive’s Base Salary shall be reviewed at least annually by the Compensation Committee
of the Board (“Compensation Committee”) for increase. After any such increase, the term “Base Salary” as utilized in this Agreement shall thereafter refer to the increased amount. Executive’s Base Salary shall not be reduced
at any time without his express prior written consent. 
  
 (b) During the term of this Agreement, Executive shall participate in the Company’s annual bonus plan for senior executives or any successor annual incentive award plan of the Company (the “Bonus Plan”). Under the Bonus Plan,
Executive shall have a target bonus opportunity each year equal to no less than 80% of Executive’s Base Salary (“Target 

  

 3 

 
Bonus”), payable in that amount if the performance goals established for the relevant year are met. If such performance goals are not met, Executive
shall receive a lesser amount (if any) as determined in accordance with the Bonus Plan. If such performance goals are exceeded, Executive may receive a greater amount as determined in accordance with the Bonus Plan. Executive’s Target Bonus as
a percentage of Base Salary shall be reviewed periodically by the Compensation Committee for increase, if any. After any such increase, the term “Target Bonus” as utilized in this Agreement shall thereafter refer to the increased amount.
Executive’s Target Bonus shall not be reduced at any time without his express prior written consent. Executive shall be paid his annual incentive award no later than other senior executives of the Company are paid such awards for the applicable
performance period. 
  
 (c) Executive shall
participate in all equity incentive plans of the Company, including, but not limited to, the 1997 Long-Term Incentive Plan, as amended, or any successor thereto (the “Incentive Plan”), on a basis no less favorable than the most favorable
basis provided other senior executives of the Company.  
  
 4. Benefits; Perquisites; Expenses. 
  
 (a) (i) During the term of this Agreement, Executive shall be entitled to participate, on a basis no less favorable than the most favorable basis provided any other senior executive, in any employee pension and welfare benefit plan or
program available to the Company’s senior-level executives or to its employees generally, as such plans or programs may be in effect from time to time, including, without limitation, pension, profit sharing, savings, estate preservation and
other retirement plans or programs, 401(k), medical, dental, hospitalization, short-term and long-term disability and life insurance plans, accidental death and dismemberment protection, travel accident insurance, and any other pension or retirement
plans 

  

 4 

 
or programs and any other employee welfare benefit plans or programs that may be sponsored by the Company from time to time, including any plans that
supplement the above-listed types of plans or programs, whether funded or unfunded. Subject to Paragraph 7(a) hereof, Executive shall be entitled to (i) an annual disability benefit amount of no less than 60% of his per annum rate of Base Salary
effective at the time of his Permanent Disability (as defined herein), payable until Executive reaches age 65 and (ii) Company-paid life insurance with a benefit amount equal to his Base Salary determined as of each January 1st during the term of
this Agreement. Executive shall be entitled to no less than four (4) weeks paid vacation per year. 
  
 (ii) Executive shall at all times be deemed to be a Covered Employee, as such term is defined and for all purposes, under the Scripps
Supplemental Executive Retirement Plan, as amended and restated effective January 1, 2003 (the “Supplemental Plan”). In the event that Executive’s employment with the Company is terminated prior to April 7, 2005 and such termination
is neither for Cause pursuant to Paragraph 8(a)(ii)(A) hereof nor voluntary by Executive (other than for Good Reason, or Permanent Disability where the Company’s long-term disability income benefit plan or program does not include provision of
age credits through at least age 55) pursuant to Paragraph 9(b) hereof, then for the purpose of determining his benefits under the Supplemental Plan, the Executive shall be deemed to be qualified for Early Retirement under the Scripps Pension Plan
as Amended and Restated effective January 1, 1997 (the “Scripps Pension Plan”); provided, however, that if Executive’s employment with the Company is terminated prior to April 7, 2005 and such termination is either for Cause pursuant
to Paragraph 8(a)(ii)(A) hereof or voluntary by Executive (other than for Good Reason or Permanent Disability) pursuant to Paragraph 9(b) hereof, then upon such termination of employment, the Executive shall not be deemed qualified 

  

 5 

 
for Early Retirement under the Scripps Pension Plan. No amendment, suspension or termination of the Supplemental Plan or any other pension plan of the
Company shall adversely affect Executive’s entitlement to the pension benefits that he shall have accrued as a Covered Employee under the Supplemental Plan immediately prior to such amendment, suspension or termination. In the event that any
pension benefits provided pursuant to this Paragraph 4(a)(ii) cannot be paid under the Supplemental Plan, such benefits shall be paid pursuant to this Agreement. 
  
 (b) During the term of the Agreement, Executive shall be entitled to perquisites on a basis no less
favorable than the most favorable basis provided other senior executives of the Company. In all events, Executive shall be entitled to be reimbursed by the Company for tax and financial planning up to maximum of $15,000 per year, and for the annual
membership fees and other dues associated with one country and one luncheon club. In addition, the Company shall pay for the costs of an annual physical. 
  
 (c) Upon delivery of proper documentation, Executive shall be reimbursed for reasonable business expenses and shall be entitled to travel
first class when on Company business. Executive shall also be reimbursed for reasonable legal fees and other expenses (such fees and expenses not to exceed $100,000 in total) incurred by him relating to negotiation, execution and delivery of this
Agreement.  
  
 5. Remaining Deferred Stock Units.

  
 (a) In recognition of the value Executive
created in the Company’s national television networks segment (the “Network Companies”) and in order to encourage Executive to use his talents to enhance the operations and profitability of the Network Companies, the Company granted
to Executive 96,038 Deferred Stock Units under that certain 

  

 6 

 
employment agreement dated July 20, 1999 (the “Previous Employment Agreement”). Prior to the date hereof, eighty percent (80%) of the Deferred
Stock Units matured and 76,831 Class A Common Shares of the Company were issued in exchange for such units. Each remaining Deferred Stock Unit entitles Executive to receive from the Company on January 15, 2004 (the “Maturity Date”) one
Class A Common Share. Accordingly, the remaining Deferred Stock Units shall mature and be exchanged on the Maturity Date for 19,207 Class A Common Shares. 
  
 (b) Upon a Change in Control (as defined in Paragraph 11(a) hereof) of the Company prior to the Maturity Date, the remaining Deferred
Stock Units shall immediately be exchanged for Class A Common Shares in accordance herewith and such shares shall be promptly delivered to Executive. 
  
 (c) If Executive’s employment hereunder is terminated for any reason prior to a Change in Control of the Company (including for
“Cause” as defined herein) and prior to the Maturity Date, Executive (or his designated beneficiary or legal representative in case of his death) shall receive Class A Common Shares in exchange for the remaining Deferred Stock Units on the
Maturity Date as if Executive were still employed at such time. 
  
 (d) No cash dividends or equivalent amounts shall be paid on the remaining Deferred Stock Units. On the Maturity Date, the Company shall pay to Executive an amount in cash which shall be equal to the cash dividends,
if any, which would have been paid between July 20, 1999, and the Maturity Date with respect to issued and outstanding Class A Common Shares equal in number to the number of Deferred Stock Units maturing on the Maturity Date. No interest shall be
paid on any dividend equivalent or any part thereof. All Class A Common Shares issued in exchange for the remaining Deferred Stock Units shall, if 

  

 7 

 
available, be treasury shares of the Company. In the case of a Change in Control, “Maturity Date” for purposes of this Paragraph 5(d) shall be the
date of the Change in Control. 
  
 6. Restricted Shares; Duff
& Phelps Shares. 
  
 (a) The Company has
granted to Executive under the Incentive Plan 155,319 restricted Class A Common Shares of the Company (the “New Restricted Shares”) vesting in equal annual installments on each January 2 during the four years beginning January 1, 2004.
Executive acknowledges that all matters concerning the New Restricted Shares shall be governed by the Incentive Plan, except as otherwise set forth herein or in the restricted share award agreement evidencing the New Restricted Shares attached
hereto as Exhibit A. 
  
 (b) The New
Restricted Shares are granted in lieu of restricted shares that Executive has not earned but was otherwise eligible to earn under the Previous Employment Agreement pursuant to future grants based on possible increases in value of the Network
Companies as determined by Duff & Phelps (the “Unearned Duff & Phelps Shares”). Executive agrees that his rights to any grants of Unearned Duff & Phelps Shares with respect to 2002 or thereafter are hereby forfeited. 

  
 (c) Under Paragraph 3(c) of the Previous
Employment Agreement, Executive has earned a total of 141,783 Class A Common Shares (the “Earned Duff & Phelps Shares”), of which 40,910 shares are vested. The remaining Earned Duff & Phelps Shares, which total 100,873 of the
Earned Duff & Phelps Shares, shall continue to vest in accordance with their vesting schedules, except as otherwise provided in this Agreement. 
  
 (d) If Executive’s employment hereunder is terminated for Cause under Paragraph 8(a)(ii)(A) by the Company or by Executive upon Early
Retirement (as defined in Paragraph 11(d) hereof) prior to January 1, 2007 or for any other reason (other than as set 

  

 8 

 
forth in the next sentence of this Paragraph 6(d)), all Earned Duff & Phelps Shares and all New Restricted Shares not vested on the date of any such
termination shall be forfeited. If Executive’s employment hereunder is terminated by the Company for Cause under Paragraph 8(a)(ii)(B) or (C) or without Cause or by Executive for Good Reason or upon Early Retirement on or after January 1, 2007,
or upon death or due to Permanent Disability, all Earned Duff & Phelps Shares and all New Restricted Shares not vested on the date of any such termination shall vest immediately upon such termination. In addition, upon a Change in Control all
Earned Duff & Phelps Shares and all New Restricted Shares not vested as of the Change in Control shall vest immediately upon the Change in Control. 
  
 7. Entitlements in the Event of Death or Permanent Disability. 
  
 (a) In the event of Executive’s death or “Permanent Disability” (as hereinafter defined)
during the term of this Agreement, the Company shall continue, for the two-year period beginning on the date of such death or Permanent Disability, to pay to Executive (or his successors and assigns under the applicable laws of descent and
distribution in the event of his death) Executive’s then effective per annum rate of Base Salary, as determined under Paragraph 3(a) above, and provide to Executive (and to his family members covered under his family medical coverage
immediately prior to the date of death or Permanent Disability) the same medical coverage as provided to Executive (and such family members) on the date of such death or Permanent Disability; provided that to the extent that the Company’s
medical plan does not permit continuation of Executive’s participation (in the case of Permanent Disability) or his family members’ participation (in the case of Executive’s death or Permanent Disability) throughout this period, the
Company shall provide Executive (or his family members in the case of Executive’s death), no less frequently than quarterly in advance, with an amount, which after 

  

 9 

 
taxes, is sufficient for him (or such family members, as the case may be) to purchase substantially equivalent medical benefits. Notwithstanding anything to
the contrary in the foregoing, the Base Salary payable to Executive pursuant to this Paragraph 7(a) shall be offset and therefore reduced as follows: (i) in the case of Executive’s death, on a tax-effected basis, by all proceeds paid to his
estate or successors and assigns under applicable laws of descent and distribution pursuant to any life insurance policy or policies (whether an individual or Company-wide policy or policies) maintained on Executive’s life by the Company and on
which the premiums are paid by the Company; and (ii) in the case of Executive’s Permanent Disability, by any payment made in the same year that Executive receives the salary continuation under any plan or plans maintained and paid for by the
Company (whether an individual or Company-wide policy or policies) for Executive’s benefit. From and after the end of the two-year period beginning on the date of Executive’s Permanent Disability and until Executive reaches the age of 65,
Executive shall be entitled annually to receive from the Company or under any plan or plans maintained and paid for by the Company (whether an individual or a company-wide policy or policies) payments that equal no less than sixty percent (60%) of
his per annum rate of Base Salary effective at the time of his Permanent Disability. 
  
 (b) Except as otherwise provided in Paragraph 7(a) above, in the event of Executive’s death or Permanent Disability, Executive’s
employment hereunder shall terminate and Executive shall be entitled to no further compensation or other severance payments or employee benefits under this Agreement, except Executive shall be entitled to: 
  
 (i) a lump-sum payment in an amount equal to (x) the bonus,
if any, payable based on Executive’s Target Bonus for the year of termination that Executive would have earned based on the Company’s performance during the 

  

 10 

 
year in which death or Permanent Disability occurred had he remained employed by the Company (calculated without taking into account individual or subjective
performance standards), times (y) a fraction the numerator of which is the number of days that Executive was employed in the applicable performance period and the denominator of which shall be the number of days in the applicable performance period
(“Pro-Rata Bonus”); 
  
 (ii) immediate
vesting and non-forfeitability of all unmatured Deferred Stock Units, Earned Duff & Phelps Shares and unvested New Restricted Shares, with the Company immediately exchanging the Deferred Stock Units for Class A Common Shares (the “DSU
Shares”), and paying any dividends due on the DSU Shares in accordance with Paragraph 5 above; 
  
 (iii) immediate vesting and non-forfeitablity of all other outstanding equity awards (including, but not limited to, stock options and
restricted shares), with all vested options (including options vesting pursuant to this subclause (iii)) remaining exercisable for the remainder of their original terms; 
  
 (iv) the pension benefits as provided pursuant to Paragraph 4(a) of this Agreement; 
  
 (v) any earned but unpaid amounts as of the date of
termination, including, but not limited to, Base Salary through the date of termination, reimbursement for business expenses and any incentive awards earned for performance periods that have ended; and 
  

 11 

 (vi) any other right, benefit or entitlement earned and payable, and not subject to
forfeiture as a result of such termination, under this Agreement or any other Company plan, policy, program, arrangement of, or other agreement with, the Company or any affiliate. 
  
 (c) For purposes of this Agreement, Executive’s “Permanent Disability” shall mean
Executive’s inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities hereunder for a period of one hundred fifty (150) consecutive days as determined by a medical doctor selected by Executive and
the Company. If the Parties cannot agree on a medical doctor, each party shall select a medical doctor and the two doctors shall select a third who shall be the approved medical doctor for this purpose. In no event shall any termination of
Executive’s employment for Permanent Disability, either by Executive or the Company, occur until the Party terminating his employment gives written notice to the other Party in accordance with Paragraph 19 below. 
  
 8. Termination. 
  
 (a) The employment of Executive pursuant to the terms of
this Agreement, and the term of this Agreement: 
  
 (i) shall be terminated automatically upon Executive’s death or Permanent Disability as provided in Paragraph 7(c) above, or 
  
 (ii) may be terminated for Cause (as defined herein) at any time by the Board (with any such termination not being in limitation of any
other right or remedy the Company may have under this Agreement or otherwise). For purposes of this Agreement, the term “Cause” shall mean: 
  

 12 

 (A) Executive’s conviction of (without further right to appeal), or his pleading
guilty to or no contest with respect to, a felony involving embezzlement or theft; or his conviction of (without further right to appeal) a felony or misdemeanor crime, in either case involving an act or series of acts involving moral turpitude;

  
 (B) Executive’s gross misconduct or
gross neglect in the performance of his duties under this Agreement, which results in harm to the Company, unless such misconduct or neglect has been cured by Executive in all material respects within twenty (20) days after the Company gives written
notice specifying the act constituting Cause to Executive (provided that no act or failure to act shall be deemed to be gross misconduct or gross neglect if Executive believed in good faith that such action or non-action was in, or not opposed to,
the best interests of the Company or any affiliate thereof); or 
  
 (C) Executive’s material breach of any material provision of (i) this Employment Agreement (other than Paragraph 1 or Paragraph 2 hereof which shall be governed by subclause (B) above) or (ii) any written
employment policy of the Company which Executive knows about or should have known about, provided that if such breach of such policy is of a type that has been committed by any other employee(s) of the Company then that type of breach has
consistently resulted in the termination of such employee(s), and provided such breach (whether or not of the type committed by any other employee) has not been cured by 

  

 13 

 
Executive in all material respects within twenty (20) days after the Company gives written notice specifying the act constituting Cause thereof to Executive.

  
 Anything herein to the contrary notwithstanding, Executive
shall not be terminated for Cause within the meaning of subclauses (B) and (C) of this Paragraph 8(a)(ii), unless Executive has an opportunity to be heard before the Board and, after such hearing, there is a vote of no less than a majority of the
members of the Board to terminate him for Cause based on the act specified in the aforesaid written notice.  
  
 (iii) may be terminated at any time by the Company without Cause; or 
  
 (iv) may be terminated by Executive at any time for Good Reason (without prior notice) or otherwise with
thirty (30) days’ advance written notice to the Company in accordance with Paragraph 19 below. 
  
 (b) Upon any termination of Executive’s employment, Executive shall be deemed automatically to have resigned from all offices and
directorships held by Executive in the Company or any of its subsidiaries, Executive’s employment with the Company for all purposes shall be deemed to have terminated as of the effective date of such termination hereunder, irrespective of
whether the Company has a continuing obligation under this Agreement to make payments or provide benefits to Executive after such effective date, and Executive shall execute such documents, if any, as are reasonably provided by the Company to effect
such resignations. 
  
 (c) Anything herein to the
contrary notwithstanding, expiration of the term of this Agreement in accordance with the expiration of the original term (or any extension 

  

 14 

 
thereof) shall not result in Executive’s employment being terminated and in such event Executive shall be an employee at-will, subject to the
restrictive covenants of Paragraph 12 hereof and the provisions of Paragraphs 6(a) and 6(d) hereof, which shall survive such expiration along with this Paragraph 8(c), the definitions herein of the defined terms used in this Paragraph 8(c) and
Paragraph 25. If Executive terminates such at-will employment for Good Reason (as such term is defined herein) or if the Company terminates Executive’s at-will employment without Cause (as such term is defined herein), and upon Executive’s
death, Permanent Disability, Normal Retirement (as defined in Paragraph 11(c) below) or Early Retirement, in all cases after the expiration of the term of this Agreement, all of Executive’s outstanding equity awards (including, but not limited
to, stock options, deferred stock units, the New Restricted Shares and restricted shares) shall (to the extent not already vested) automatically vest and shall not be subject to forfeiture and, in the case of options, be exercisable for their full
respective terms, notwithstanding anything to the contrary in the applicable plan or option grant or restricted stock award contract, and upon any other termination of such at-will employment, Executive’s rights with respect to any such equity
awards shall be governed by the applicable plan or award agreement without reference to this Agreement or any of the terms or provisions hereof. 
  
 9. Certain Termination Payments and Vesting Events. 
  
 (a) If Executive’s employment with the Company is terminated by the Company without Cause or by Executive for Good Reason other than
within two years following a Change in Control, Executive shall be entitled to the following upon execution and delivery to the Company of the release described in Paragraph 14(c) hereof (the “Termination Release”): 
  

 15 

 (i) continued payment of Base Salary at the per annum rate then in effect under Paragraph
3(a) above for a period equal to the greater of (A) three years beginning on the date of such termination or (B) the balance of the term of this Agreement remaining at the time of such termination (without regard to early termination of such term
hereunder); 
  
 (ii) payment of an amount equal
to the Target Bonus then in effect under Paragraph 3(b) times the greater of (A) two or (B) if the balance of the term of this Agreement remaining at the time of such termination (without regard to early termination of such term hereunder) is
greater than two years, a fraction the numerator of which is the number of months remaining in such term and the denominator of which is 12; 
  
 (iii) a Pro-rata Bonus (as defined in Paragraph 7(b)(i) above) for the year of termination; 
  
 (iv) immediate vesting of all unmatured Deferred Stock
Units, Earned Duff & Phelps Shares and unvested New Restricted Shares, with the Company immediately exchanging the Deferred Stock Units for the DSU Shares and paying any dividends due on the DSU Shares in accordance with Paragraph 5 above;

  
 (v) immediate vesting and non-forfeitability
of all other outstanding equity awards (including, but not limited to, stock options and restricted shares other than the New Restricted Shares), with all vested options (including options vesting pursuant to this subclause (v)) remaining
exercisable for the remainder of their original terms; 
  

 16 

 (vi) the pension benefits as provided pursuant to Paragraph 4(a) of this Agreement;

  
 (vii) continued participation for Executive
and his eligible dependents in all plans and programs described in Paragraph 4(a) above then in effect for a period equal to the greater of (A) two years beginning on the date of such termination or (B) the balance of the term of this Agreement
remaining at the time of such termination (without regard to early termination of such term hereunder) (unless the terms of the applicable plans or relevant laws do not permit the continuation of such benefits after such termination and such plans
cannot be amended, with applicability of such amendment limited to Executive, to provide for such continuation; provided that, in all events, if the provisions of relevant law or the terms of the Company’s plans do not permit continued
participation, the Company shall provide Executive, no less frequently than quarterly in advance, with an amount that, after taxes, is sufficient for him to purchase for himself and his eligible dependents benefits substantially equivalent to those
for which continued participation by Executive or his eligible dependents is not permitted); provided, however, that any benefits received pursuant to this subparagraph (vii) of Paragraph 9(a) shall be offset and therefore reduced by any
substantially equivalent benefits provided Executive during this benefit continuation period pursuant to any full-time employment or consultancy secured following such termination; 
  
 (viii) any earned but unpaid amounts as of the date of termination, including, but not limited to, Base
Salary through the date of 

  

 17 

 
termination, reimbursement for business expenses and any incentive awards earned for performance periods that have ended; and 
  
 (ix) any other right, benefit or entitlement earned and
payable, and not subject to forfeiture as a result of the applicable termination event, under this Agreement or any other Company plan, policy, program, arrangement of, or other agreement with, the Company or any affiliate. 
  
 (b) If Executive’s employment is terminated by the
Company for Cause or by Executive for any reason (other than for Good Reason or upon death, Normal Retirement or Early Retirement, or due to Permanent Disability), Executive shall be entitled to no further compensation or other severance payments or
employee benefits under this Agreement, shall forfeit all earned and unvested Duff & Phelps Shares and all unvested New Restricted Shares, and all other outstanding equity awards (including, but not limited to, stock options (whether or not
vested), deferred stock units and restricted shares) shall be treated in accordance with the applicable plan or award agreement; provided, however, that Executive shall be entitled to: 
  
 (i) issuance of 19,207 DSU Shares and payment of dividends with respect thereto on January 15, 2004, in
exchange for the remaining Deferred Stock Units;  
  
 (ii) any earned but unpaid amounts as of the date of termination, including, but not limited to, Base Salary through the date of termination, reimbursement of business expenses and any incentive awards earned for
performance periods that have ended; 
  

 18 

 (iii) any other right, benefit or entitlement earned and payable, and not subject to
forfeiture as a result of the applicable termination event, under this Agreement or any other Company plan, policy, program, arrangement of, or other agreement with, the Company or any affiliate; 
  
 (iv) as provided in Paragraph 6(d) hereof, in the case of
termination of Executive’s employment by the Company for Cause under Paragraph 8(a)(ii)(B) or (C) hereof, all Earned Duff & Phelps Shares and all New Restricted Shares not vested on the date of any such termination shall vest immediately
upon such termination and thereafter be non-forfeitable; and 
  
 (v) the pension benefits as provided pursuant to Paragraph 4(a) of this Agreement. 
  
 Notwithstanding anything to the contrary in this Paragraph 9(b), in the event of Executive’s Early Retirement prior to January 1, 2007, all unvested Earned Duff
& Phelps Shares and all unvested New Restricted Shares (to the extent such shares are unvested on the date of such retirement) shall be forfeited as provided in Paragraph 6(d) hereof. 
  
 (c) If Executive’s employment with the Company is
terminated within two years after a Change in Control by the Company without Cause or by Executive for Good Reason, Executive shall be entitled to the Change in Control termination payments set forth in Paragraph 10 below upon execution and delivery
to the Company of the Termination Release. 
  
 (d)
If Executive’s employment is terminated upon reaching Normal Retirement, whether such termination is voluntary or involuntary, or upon reaching Early Retirement if such termination is voluntary, the Executive shall be entitled to the following:

  

 19 

 (i) immediate vesting and non-forfeitablity of all outstanding equity awards (including,
but not limited to, stock options and restricted shares), with all vested options (including options vesting pursuant to this subclause (i)) remaining exercisable for the remainder of their original terms; provided, however, in the case of Early
Retirement prior to January 1, 2007, Executive shall forfeit all unvested Earned Duff & Phelps Shares and all unvested New Restricted Shares (to the extent such shares are unvested on the date of such retirement), and all other outstanding
equity awards (including, but not limited to, stock options and restricted shares) shall be treated in accordance with the applicable plan or award agreement; 
  

(ii) the pension benefits as provided pursuant to Paragraph 4(a) of this Agreement; 
  
 (iii) any earned but unpaid amounts as of the date of
termination, including, but not limited to, Base Salary through the date of termination, reimbursement for business expenses and any incentive awards earned for performance periods that have ended; and 
  
 (iv) any other right, benefit or entitlement earned and
payable, and not subject to forfeiture as a result of such retirement, under this Agreement or any other Company plan, policy, program, arrangement of, or other agreement with, the Company or any affiliate. 
  
 Anything herein to the contrary notwithstanding, upon Normal Retirement or
Early Retirement, Executive shall not be entitled to severance pursuant to Section 9(a) hereof. 
  

 20 

 (e) Except as otherwise provided herein, all payments required to be made pursuant to
this Paragraph 9 or Paragraph 10 below (but not including any pension benefits payable under Paragraph 4(a) hereof, which benefits shall be paid in accordance with Executive’s election made pursuant to the applicable plans) shall be paid in a
lump-sum within 30 days after the date of termination unless Executive has made an election under a plan or program that the amount or benefit be paid in some other form. 
  
 10. Change in Control Protections; Change in Control Termination Payments. 
  
 (a) Upon a Change in Control, all outstanding equity awards,
including but not limited to Deferred Stock Units, Earned Duff & Phelps Shares, New Restricted Shares, and any stock options and other restricted shares, shall immediately vest and not be subject to forfeiture, with all vested stock options
(including those vesting pursuant to this Paragraph 10(a)) remaining exercisable for the remainder of their original terms. 
  
 (b) Executive will be entitled to the compensation set forth in Paragraphs 10(b) and 10(d) hereof (the “CIC Compensation”) if
his employment is terminated within two years after a Change in Control (i) by the Company without Cause, or (ii) by him with Good Reason (in either case, the “CIC Trigger”). Notwithstanding the foregoing, Executive will not be entitled to
CIC Compensation in the event of a termination of his employment following a Change in Control on account of his death or Permanent Disability, or Normal Retirement (whether voluntary or involuntary) or Early Retirement or other termination by him
on his own initiative other than for Good Reason. In the event of a CIC Trigger, Executive shall be entitled to the CIC Compensation provided below upon execution and delivery to the Company of the Termination Release: 
  

 21 

 (i) in lieu of any further salary, bonus or other payments to Executive for periods
subsequent to the date of termination, the Company shall pay to Executive not later than the thirtieth day following the date of termination a cash amount equal to the sum of: (x) an amount equal to three times the greater of (A) Executive’s
base salary at the highest annualized rate paid in the three calendar years prior to the date of termination or (B) the Base Salary; and (y) an amount equal to three times the greater of (A) 100% of his Target Bonus for the year of such termination
or (B) the highest annual bonus he received for the three calendar years prior to the date of termination; 
  
 (ii) until the earlier of (A) the third anniversary of the date of termination or (B) Executive’s death (but only in respect to
Executive’s own benefits) or his securing of full-time employment which provides substantially equivalent benefits, the Company shall provide Executive (and his eligible dependents, as the case may be) with life, medical, dental, and accidental
death and disability insurance benefits substantially equivalent to those which Executive and his eligible dependents were receiving immediately prior to the date of termination, or immediately prior to a Change in Control, if greater, provided that
Executive shall be obliged to continue to pay that proportion of premiums paid by him immediately prior to the Change in Control. Notwithstanding the foregoing, in the event that participation in any such program is not possible under the terms of
such program, the Company shall arrange to provide Executive and his eligible dependents with benefits substantially equivalent to those which they are entitled 

  

 22 

 
to receive under such program, or shall provide an after-tax payment equivalent to the value of such program if it cannot be provided in-kind; 
  
 (iii) any earned but unpaid amounts as of the date of
termination, including, but not limited to, Base Salary through the date of termination, reimbursement for business expenses and any incentive awards earned for performance periods that have ended; 
  
 (iv) immediate vesting and non-forfeitability of all other
outstanding equity awards (including, but not limited to, stock options and restricted shares), with all vested options (including options vesting pursuant to this subclause (iv)) remaining exercisable for the remainder of their original terms;

  
 (v) the pension benefits as provided pursuant
to Paragraph 4(a) of this Agreement; and 
  
 (vi)
any other right, benefit or entitlement earned and payable, and not subject to forfeiture as a result of such termination, under this Agreement or under any other Company plan, policy, program, arrangement of, or other agreement with, the Company or
any affiliate. 
  
 (c) Anything in this Agreement
to the contrary notwithstanding, in the event it shall be determined (as hereafter provided) that any payment, benefit or distribution to or for Executive’s benefit, whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement or similar right (a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of
1986 (or any successor provision 

  

 23 

 
thereto), or any interest or penalties with respect to such excise tax (such tax, together with any such interest and penalties, hereafter collectively
referred to as the “Excise Tax”), then Executive shall be entitled to receive an additional payment or payments (a “Gross-Up Payment”) in an amount such that, after payment by Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
  
 All determinations required to be made under this Paragraph 10(c), including
whether an Excise Tax is payable by Executive, the amount of such Excise Tax, whether a Gross-Up Payment is required, and the amount of such Gross-Up Payment, shall be made by a nationally-recognized legal or accounting firm (the “Firm”)
(which may be the Company’s independent auditor) selected by the Company in its sole discretion. The Firm shall submit its determination and detailed supporting calculations to Executive and the Company as promptly as practicable. If the Firm
determines that any Excise Tax is payable by Executive and that a Gross-Up Payment is required, the Company shall pay Executive the required Gross-Up Payment within thirty (30) days of receipt of such determination and calculations. If the Firm
determines that no Excise Tax is payable by Executive, it shall, at the same time it makes such determination, furnish Executive with an opinion that Executive has substantial authority not to report any Excise Tax on Executive’s federal income
tax return. Any determination by the Firm as to the amount of the Gross-Up Payment shall be binding upon Executive and the Company. As a result of the uncertainty in the application of Section 4999 of the Internal Revenue Code of 1986 (or any
successor provision thereto) at the time of the initial determination by the Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the 

  

 24 

 
Company should have been made (an “Underpayment”). If Executive thereafter is required to make a payment of any Excise Tax, the Firm shall
determine the amount of the Underpayment (if any) that has occurred and submit its determination and detailed supporting calculations to Executive and the Company as promptly as possible. Any such Underpayment shall be promptly paid by the Company
to Executive, or for Executive’s benefit, within thirty (30) days of receipt of such determination and calculations. 
  
 Executive and the Company shall each provide the Firm access to and copies of any books, records or documents in the possession of the Company or
Executive, as the case may be, reasonably requested by the Firm, and shall each otherwise cooperate with the Firm in connection with the preparation and issuance of the determinations contemplated by this Paragraph. 
  
 The fees and expenses of the Firm for services in connection with the
determinations and calculations contemplated by this Paragraph 10(c) shall be borne by the Company. 
  
 (d) In the event of a CIC Trigger, Company shall provide Executive, at the Company’s cost, reasonable outplacement services for a
period of eighteen months following the date of termination and will reimburse Executive for his reasonable legal expenses in an amount not to exceed $75,000 should he have to institute legal proceedings to enforce the provisions of this Paragraph
10. 
  
 11. Definitions. 
  
 (a) “Change in Control” of the
Company shall mean any of the following: 
  

 25 

 (i) any “person”, as such term is used in Sections 3(a)(9) and 13(d) of the
Securities Exchange Act of 1934, becomes a “beneficial owner”, as such term is used in Rule 13d-3 promulgated under that Act, of a majority of the outstanding Common Voting Shares, $.01 par value, of the Company (or shares of capital stock
of the Company with comparable or unlimited voting rights), excluding, however, The Edward W. Scripps Trust (the “Trust”) and the trustees thereof, and any person that is or becomes a party to the Scripps Family Agreement, dated October
15, 1992, as amended currently and as it may be amended from time to time in the future (the “Family Agreement”); 
  
 (ii) the majority of the Board consists of individuals other than Incumbent Directors, which term means the members of the Board on the
Effective Date; provided that any person becoming a director subsequent to such date whose election or nomination for election was supported by a majority of the directors who then comprised the Incumbent Directors shall be considered to be an
Incumbent Director; 
  
 (iii) assets of the
Company accounting for 90% or more of the Company’s revenues (hereinafter referred to as “substantially all of the Company’s assets”) are disposed of pursuant to a merger, consolidation, sale, or plan of liquidation and
dissolution (unless the Trust or the parties to the Family Agreement beneficially own, directly or indirectly, a controlling interest (defined as owning a majority of the voting power) in the entity surviving such merger or consolidation or
acquiring such assets upon such sale or in connection with such plan of liquidation and dissolution); or 
  

 26 

 (iv) any event which would constitute a “Change in Control” under the Incentive
Plan. 
  
 Notwithstanding anything to the contrary in the
foregoing definition, neither the termination of the Trust nor the effectiveness, as a result of such termination, of the Family Agreement shall constitute a “Change in Control”. 
  
 (b) “Good Reason” means any of the following:

  
 (i) the reduction of Executive’s Base
Salary or Target Bonus below the amount of Base Salary or Target Bonus in effect immediately prior to such reduction; 
  
 (ii) any failure by the Company to continue in effect the Incentive Plan or provide other similar plans pursuant to which Executive will
be eligible to receive grants relating to securities of the Company (including, without limitation, stock options, stock appreciation rights, restricted stock or other equity based awards) (hereinafter referred to as “Securities Plans”) or
provide substitutes for such Securities Plans which in the aggregate provide substantially comparable economic benefits to those he has been receiving; 
  
 (iii) the assignment to Executive of any duties inconsistent with, or a material diminution of, Executive’s duties, titles, offices,
responsibilities or status from those of Executive with the Company as contemplated by this Agreement, or any removal of Executive from or any failure to reelect or reappoint Executive to any positions set forth in Paragraph 1(a) and Paragraph 2(b)
above, including as a Director of the Company, unless such removal or failure to reelect or reappoint results from the termination of Executive’s 

  

 27 

 
employment for Cause in accordance with Paragraph 8(a)(ii) above, by reason of death or Permanent Disability in accordance with Paragraph 7(c) above, or as a
result of Executive’s Normal Retirement or Early Retirement or other termination of employment by him at his own initiative other than for Good Reason; 
  
 (iv) a change in reporting structure such that Executive reports to someone other than the Board; 
  
 (v) relocation or reassignment of Executive, without his
consent, to work in a location more than twenty-five (25) miles outside of the Cincinnati, Ohio metropolitan area; 
  
 (vi) the Company’s failure to cure within thirty (30) days of notice thereof from Executive any material breach of this Agreement by
the Company provided that the Board has not taken steps prior to such notice to terminate Executive for Cause in accordance with this Agreement; or 
  
 (vii) the failure of any successor to all or “substantially all of the Company’s assets” (as defined in Paragraph
11(a)(iii) hereof) to assume the Company’s obligations under this Agreement. 
  
 (c) “Normal Retirement” means retirement (whether voluntary or involuntary): (i) under the Scripps Pension Plan on the first day
of the month coinciding with or immediately following Executive reaching Normal Retirement Age (as defined under the Scripps Pension Plan), or (ii) if more favorable to Executive, as otherwise defined or determined by the Board with respect to
Executive or the senior executives of the Company generally. 
  

 28 

 (d) “Early Retirement” means retirement on the Executive’s own initiative
under the Scripps Pension Plan on or after Executive’s 55th birthday and prior to the first day of the month
coinciding with or immediately following his 65th birthday. 
  
 12. Certain Covenants. 
  
 (a) Noncompete. During the term of this Agreement and
for one year following the date of termination of Executive’s employment hereunder, except as otherwise provided in the last sentence of this Paragraph 12(a) or in the ordinary course of performing his duties for the Company or any affiliate,
Executive shall not do or suffer any of the following: 
  
 (i) directly or indirectly own, manage, control or participate in the ownership, management, or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any
corporation, partnership, proprietorship, firm, association or other business entity which is in competition with any business segment of the Company that generates 5% or more of the Company’s revenues as and where conducted by the Company both
at the time of Executive’s termination of employment and at the time of the alleged violation (“Competitive Enterprise”); provided, however, the following shall not be deemed to be a violation of this Paragraph 12(a): (A) the
ownership of not more than two percent (2%) of any class of publicly traded securities of any entity, (B) Executive’s ownership of any interest in DNL, Inc., a corporation formed by Executive and certain other persons, or any successor to DNL
(including Executive’s operating DNL as a sole proprietorship) (“DNL”) or his provision of services thereto, so long as DNL is not competing with the Home & Garden Television Network, the Food Network, the Do-It-Yourself Network,
the Fine Living Network or any other national television network controlled or operated by the Company or any of its subsidiaries prior to or as of the date Executive’s 

  

 29 

 
employment is terminated, and so long as Executive’s ownership of such interest in DNL, his participation in the management or control of DNL or his
employment or engagement thereby or affiliation or association therewith does not materially interfere with his full-time employment hereunder, (C) continued service as a member of the board of directors of any entity on which Executive was serving
on the date of termination (subject to the limitations set forth in Paragraph 1(c) hereof during the term of this Agreement), (D) service as a member of the board of directors or as a member of an advisory committee of any entity which is not
engaged in a Competitive Enterprise (subject to the limitations set forth in Paragraph 1(c) hereof during the term of this Agreement), or (E) providing services to a subsidiary, division or affiliate of a Competitive Enterprise if such subsidiary,
division or affiliate is not itself engaged in a Competitive Enterprise and Executive does not provide services to, or have any responsibilities regarding, the Competitive Enterprise; or 
  
 (ii) solicit the employment of, or knowingly assist another in soliciting the employment of, any officers of
the Company or any of its subsidiaries at the level of vice president or above or induce any such officer to terminate such relationship. Nothing herein shall prevent Executive from giving personal references for any such officer setting forth his
personal views about such officer. Anything herein to the contrary notwithstanding, the Company acknowledges that its employees or those of its affiliates may join other entities with which Executive is affiliated and that that event will not
constitute a violation of this Agreement if Executive was not involved (directly or through contacts with others) in hiring or in identifying the employee of the Company or its affiliate as a potential recruit or otherwise assisting in, or
counseling others concerning, the recruitment of the employee of the Company or affiliate for such entity. 
  

 30 

 Executive expressly agrees and understands that the remedy at law for any breach by him of this Paragraph
12(a) may be inadequate and that the damages flowing from such breach are not readily susceptible to being measured in monetary terms. Accordingly, it is acknowledged that, upon adequate proof of Executive’s violation of any provision of this
Paragraph 12(a), the Company shall be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach. Furthermore, if the Board makes a good faith determination based upon adequate proof that
Executive has violated any material provision of this Paragraph 12(a), the Company may withhold any amounts owed pursuant to this Agreement to Executive at the time the Board makes such good faith determination, provided that in no event shall the
Company withhold or fail to pay any pension benefit (whether payable under any qualified or non-qualified plan (including the Supplemental Plan) of the Company or any affiliate or under Paragraph 4(a) hereof) and provided, further, that if it is
subsequently determined by an arbitrator pursuant to Paragraph 18 below that Executive did not commit such violation, the Company shall promptly pay all such unpaid amounts to Executive with interest on a cumulative daily compounded basis at the
rate of LIBOR from the date such payment was due until the date it is actually paid to Executive. Nothing in this Paragraph 12(a) shall be deemed to limit the Company’s remedies at law or in equity for any breach by Executive of any of the
provisions of this Paragraph 12(a) which may be pursued or availed of by the Company. If an arbitrator determines that Executive violated any legally enforceable provision of this Paragraph 12(a) as to which there is a specific time period during
which he is prohibited from taking certain actions or from engaging in certain activities as set forth in such provision, then such violation shall toll the running of such time period from the date of such violation until such violation shall
cease. Executive has carefully considered the nature and extent of the 

  

 31 

 
restrictions upon him and the rights and remedies conferred upon the Company under this Paragraph 12(a), and hereby acknowledges and agrees that the same are
reasonable in time and territory, are designed to eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Executive, would not operate as a bar to Executive’s sole means of
support, are fully required to protect the legitimate interests of the Company and do not confer a benefit upon the Company disproportionate to the detriment to Executive. Notwithstanding anything to the contrary in this Paragraph 12(a), if
Executive terminates his employment for Good Reason or if his employment is terminated by the Company without Cause (whether before or after a Change in Control), the provisions of this Paragraph 12(a) shall be deemed null and void from and after
any such termination. 
  
 (b) Intellectual
Capital. All copyrightable material originated and developed by Executive during the term of this Agreement (the “Works”) relating to the business of the Company shall constitute “works made for hire” for the Company, as the
phrase is defined in Sections 101 and 201 of the Copyright Act of 1976 (Title 17, United States Code), and the Company shall be considered the author and shall be the copyright owner of all such Works. Upon the Company’s request and at its sole
expense, Executive shall execute such documents and do such other acts as may be reasonably necessary to further evidence or effectuate the Company’s rights in and to the Works. If any of the Works do not qualify for treatment as a “work
made for hire” or if Executive retains any interest in any components of the Works for any other reason except a specific written agreement to the contrary, Executive hereby grants, assigns and transfers to the Company all worldwide right,
title, and interest in and to the Works, including, but not limited to, all United States and international copyrights and all other 

  

 32 

 
intellectual property rights in the Works, and all subsidiary rights therein, free and clear of any and all claims for royalties or other compensation except
as stated in this Agreement. 
  
 (c) Trade
Secrets And Confidential Information. 
  
 (i)
Executive recognizes and acknowledges that by virtue of Executive’s employment with the Company, Executive will have access to certain trade secrets and confidential information of the Company and its subsidiaries and that such information
constitutes valuable, special and unique property of the Company and its subsidiaries, and derives economic value because it is not generally known to the public or within the relevant trade or industry (“Trade Secrets and Confidential
Information”). Trade Secrets and Confidential Information includes, but is not limited to, the following Company information: (A) customer information, including, without limitation, customer lists and other information concerning particular
needs, problems, likes or dislikes of the Company’s customers; (B) the identities of the Company’s customers; (C) price information, such as price lists, the contents of bids, and other information concerning costs or profits; (D)
technical information, such as formulae, know-how, computer programs, software, secret processes or machines, inventions and research projects or other methods or processes; (E) business information relating to costs, profits, sales, markets,
suppliers, plans for further development, market studies, methods of doing business or research projects; (F) compilation of data by the Company concerning the Company’s employees and independent contractors relating to employment by the
Company of its personnel; and (G) any other Company information valuable because of its private or confidential nature. Trade Secrets and Confidential Information may be oral or written and may be information which Executive originates or which
otherwise comes into Executive’s possession or knowledge. 
  

 33 

 (ii) Executive agrees that Executive shall treat all Trade Secrets and Confidential
Information of the Company obtained by Executive during the course of his employment as confidential and shall not knowingly divulge or disclose any of same gained by Executive in connection with Executive’s employment by the Company to any
other person, firm, corporation or entity, except upon the written request or instruction of the Company or in the ordinary course of Executive’s performing his duties for the Company or any affiliate. Anything herein to the contrary
notwithstanding, the provisions of this Paragraph 12(c) shall not apply (A) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent or actual
jurisdiction to order Executive to disclose or make accessible any information, (B) with respect to any other litigation, arbitration or mediation involving this Agreement or any other agreement Executive may have with the Company, including, but
not limited to, the enforcement of such agreements or (C) as to Trade Secrets or Confidential Information that becomes generally known to the public or within the relevant trade or industry other than due to Executive’s violation of this
Paragraph 12(c). 
  
 (iii) Return of
Confidential Information. Upon separation from employment with the Company, Executive shall immediately surrender to the Company all Trade Secrets and Confidential Information and any and all documents, materials or other tangible items
pertaining to Trade Secrets and Confidential Information that Executive may possess. All Trade Secrets and Confidential Information shall be and remain the sole property of the Company and its subsidiaries. If Executive is in doubt as to whether any
information, material, or document is a Trade Secret or is Confidential Information, Executive will use his best efforts to contact the Board before disclosing or using same for any purpose other than in 

  

 34 

 
the ordinary course of performing his duties for the Company and its affiliates or as otherwise permitted under Paragraph 12(c)(ii) above. The covenants of
this Paragraph 12(c)(iii) shall continue for as long after the termination of this Agreement as any Trade Secret or Confidential Information continues to constitute a trade secret under applicable law. Anything herein to the contrary
notwithstanding, Executive shall be entitled to retain (A) any home office equipment provided that any Trade Secret or Confidential Information is not retained by Executive on such equipment, (B) papers and other materials of a personal nature,
including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (C) information showing Executive’s compensation or benefits or relating to reimbursement of business
expenses, (D) information that he reasonably believes may be needed for tax purposes, (E) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company and (F) minutes, presentation materials and
personal notes from any meeting of the Board, or any committee thereof, while he was a member of the Board. 
  
 13. Withholding Taxes. 
  
 All payments to Executive hereunder shall be subject to withholding on account of federal, state and local taxes as required by law.

  
 14. No Conflicting Agreements; Mutual Releases.

  
 (a) No Conflicting Agreements.
Executive represents and warrants that he is not a party to any agreement, contract or understanding, whether employment or otherwise, which would restrict or prohibit him from undertaking or performing employment in accordance with the terms and
conditions of this Agreement. This Agreement supercedes the Previous Employment Agreement. The Previous Employment Agreement is hereby terminated. 
  

 35 

 (b) Mutual Release Regarding Previous Employment. Each of the Company and
Executive acknowledges that any and all obligations of the other to it or him arising under the Previous Employment Agreement have been fulfilled to its or his satisfaction, as the case may be, and each of the Company and Executive hereby releases
the other of any and all claims it or he may have against the other arising under or in connection with the Previous Employment Agreement.  
  
 (c) Mutual Termination Release. Each of the Company and Executive shall execute and deliver to the other a release in the form
attached hereto as Exhibit B upon any termination of Executive’s employment by Executive for Good Reason or by the Company of Executive’s employment without Cause. Executive’s execution and delivery of such release shall be a
condition to Executive’s receiving any payment or other benefit that he would otherwise not be entitled to upon such termination absent this Agreement.  
  
 15. Indemnification; D&O Liability Insurance. 
  
 (a) The Company agrees that if Executive is made a party to, is threatened to be made a party to, receives
any legal process in, or receives any discovery request or request for information in connection with, any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he
was a director, officer, employee, consultant or agent of the Company, or was serving at the request of, or on behalf of, the Company as a director, officer, member, employee, consultant or agent of another corporation, limited liability
corporation, partnership, joint venture, trust or other entity, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is Executive’s alleged action in an official capacity while serving as a
director, officer, member, employee, consultant or agent of the Company or other entity, Executive shall 

  

 36 

 
be indemnified and held harmless by the Company to the fullest extent permitted or authorized by the Company’s Articles of Incorporation or Code of
Regulations or, if greater, by the laws of the State of Ohio, against any and all costs, expenses, liabilities and losses (including, without limitation, attorneys’ fees reasonably incurred, judgments, fines, ERISA excise taxes or penalties and
amounts paid or to be paid in settlement and any reasonable cost and fees incurred in enforcing his rights to indemnification or contribution) incurred or suffered by Executive in connection therewith, and such indemnification shall continue as to
Executive even though he has ceased to be a director, officer, member, employee, consultant or agent of the Company or other entity and shall inure to the benefit of Executive’s heirs, executors and administrators. The Company shall reimburse
Executive for all costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred by him in connection with any Proceeding within 20 business days after receipt by the Company of a written request for such reimbursement
and appropriate documentation associated with these expenses. Such request shall include an undertaking by Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such
costs and expenses; provided that the amount of such obligation to repay shall be limited to the after-tax amount of any such advance except to the extent Executive is able to offset such taxes incurred on the advance by the tax benefit, if any,
attributable to a deduction for repayment. 
  
 (b) Neither the failure of the Company (including its Board, independent legal counsel or stockholders) to have made a determination prior to the commencement of any proceeding concerning payment of amounts claimed by Executive under
Paragraph 15(a) above that indemnification of Executive is proper because he has met the applicable standard of conduct, nor a determination by the Company (including its Board, 

  

 37 

 
independent legal counsel or stockholders) that Executive has not met such applicable standard of conduct, shall create a presumption or inference that
Executive has not met the applicable standard of conduct. 
  
 (c) The Company agrees to continue and maintain a directors’ and officers’ liability insurance policy or policies covering Executive at a level, and on terms and conditions, no less favorable to him than the
coverage the Company provides its directors and senior-level officers currently (subject to any future improvement in such terms and conditions), until such time as suits against Executive are no longer permitted by law. 
  
 (d) Nothing in this Paragraph 15 shall be construed as
reducing or waiving any right to indemnification, or advancement of expenses, Executive would otherwise have under the Company’s Articles of Incorporation or Code of Regulations or under applicable law. 
  
 16. Severable Provisions. 
  
 The provisions of this Agreement are severable and if any
one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions and any partially unenforceable provision to the extent enforceable in any jurisdiction nevertheless shall be binding
and enforceable. 
  
 17. Binding Agreement. 
  
 The rights and obligations of the Company under this
Agreement shall inure to the benefit of, and shall be binding on, the Company and its successors and assigns, and the rights and obligations (other than obligations to perform services) of Executive under this Agreement shall inure to the benefit
of, and shall be binding upon, Executive and his heirs and personal representatives. Executive may not assign this Agreement or any of his rights or 

  

 38 

 
obligations hereunder without the Company’s prior written consent, other than his rights to compensation and benefits, which may be assigned or
transferred by will or operation of law, provided that Executive shall be entitled, to the extent permitted under applicable law or the relevant plans, to select and change a beneficiary or beneficiaries to receive any compensation or benefit
hereunder following his death by giving the Company written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to
refer to his beneficiary, estate or other legal representative. 
  
 The Company may not assign its rights or obligations under this Agreement, without Executive’s prior written consent, except that such rights and obligations may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or a sale, liquidation or other disposition of all or “substantially all of the Company’s assets” (as defined in Paragraph 11(a)(iii) hereof) of the Company, provided that the assignee or
transferee is the successor to all or “substantially all of the Company’s assets” (as defined in Paragraph 11(a)(iii) hereof) and assumes the liabilities, obligations and duties of the Company under this Agreement, either
contractually or as a matter of law. 
  
 18. Arbitration;
Jurisdiction. 
  
 Any controversy or claim
arising out of or relating to this Agreement, or the breach thereof, any other agreement or arrangement in writing between Executive and the Company or any affiliate or Executive’s employment with the Company or any affiliate, or the
termination thereof (collectively “Covered Claims”) shall be settled by binding arbitration in the City of Cincinnati, Ohio, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then pertaining in
such city, and judgment upon the award rendered by 

  

 39 

 
the arbitrator or arbitrators may be entered in any court in Hamilton County, Ohio, having jurisdiction thereof. The arbitrator or arbitrators shall be
deemed to possess the powers to issue mandatory orders and restraining orders in connection with such arbitration; provided, however, that nothing in this Paragraph 18 shall be construed so as to deny the Company the right and power to seek and
obtain injunctive relief in a court of equity in Hamilton County, Ohio, for any breach or threatened breach by Executive of any of his covenants contained in Paragraph 12 hereof, and provided, further, that neither party shall be liable for punitive
or exemplary damages. Each Party shall be responsible for its or his own costs and expenses (including attorneys’ fees). The Parties hereto agree that federal and state courts in Hamilton County, Ohio, shall have exclusive jurisdiction with
respect to the entry of judgment upon any arbitration award hereunder or the granting of any injunctive relief for any breach or threatened breach by Executive of the covenants contained in Paragraph 12 hereof, and such courts shall have exclusive
jurisdiction with respect to any other controversy or claim arising out of or relating to this Agreement, or the breach thereof, that may properly be brought therein if the provisions herein mandating arbitration are held to be unenforceable.
Pending the resolution of any Covered Claim, and except as set forth in Paragraph 12(a) hereof, Executive (and his beneficiaries) shall continue to receive all payments, benefits and entitlements due under this Agreement or otherwise. 
  
 19. Notices. 
  
 Any notice, request or other communication given in
connection with this Agreement shall be in writing and shall be deemed to have been duly given (i) when personally delivered to the recipient provided that a written acknowledgement of receipt is obtained, (ii) three days after being sent by
certified or registered mail, postage prepaid or (iii) two days 

  

 40 

 
after being sent by a nationally recognized overnight courier provided that a written acknowledgement of receipt is obtained, in each case addressed to the
intended recipient at the address set forth at the end of this Agreement, or at such other address as such intended recipient hereafter may have designated by ten (10) days’ advance written notice given to the other party hereto in accordance
with this Paragraph 19. 
  
 20. No Mitigation/No Offset.

  
 In the event of any termination of his
employment, Executive shall be under no obligation to seek other employment and, except as otherwise expressly provided herein, there shall be no offset against or reduction of amounts due to him on account of any remuneration or benefits provided
by any subsequent employment he may obtain. Except to the extent expressly provided in Paragraph 12(a) hereof with regard to the Company’s ability to withhold certain payments, the Company’s obligation to make any payment pursuant to, and
otherwise perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other right that the Company may have against Executive for any reason. 
  
 21. Company’s Representations and Warranties. 
  
 The Company represents and warrants that (i) all corporate action required to be taken by the Company to
fully authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby has been duly and effectively taken, (ii) the officer signing this Agreement on behalf of the Company is duly
authorized to do so, (iii) the execution, delivery and performance of this Agreement does not violate any applicable law, regulation, order, judgment or decree or any agreement, plan or corporate governance document to which the Company is a party
or by which it is bound and (iv) upon execution and delivery of this Agreement by the Parties, it shall be a valid and binding 

  

 41 

 
obligation of the Company enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally. 
  
 22. Waiver. 
  
 The failure of either Party to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision
as to any future violation thereof, nor prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted the Parties herein are cumulative and the waiver of any single remedy shall not constitute a
waiver of such Party’s right to assert all other legal remedies available to him or it under the circumstances. Any waiver of any provision of this Agreement must be in writing, specifically refer to the provision being waived and be signed by
the party against whom the waiver is being enforced. 
  
 23.
Amendment. 
  
 No amendment or
modification of any provision of this Agreement shall be valid, unless such amendment or modification is in writing and signed by Executive and an authorized officer of the Company. 
  
 24. Governing Law. 
  
 This Agreement shall be governed by and construed according to the laws of the State of Ohio without reference to principles of conflicts
of law. In the event of any inconsistency between the provisions of this Agreement and any other agreement, plan, policy, program or agreement of the Company or any of its affiliates, the provision that is most favorable to Executive shall govern.
Notwithstanding anything in this Agreement, any other agreement or any plan, policy or program of the Company to the contrary, the Company’s plans, 

  

 42 

 
policies and programs, including but not limited to the Incentive Plan, and any applicable award agreement, shall be deemed to be amended by this Agreement
to the extent necessary to provide the entitlements set forth herein and to the extent there is any inconsistency, the terms most favorable to Executive shall govern. 
  
 25. Survivability. 
  
 Except as otherwise expressly provided in this Agreement, upon the termination of, or expiration of the term of, this Agreement in
accordance herewith, the respective rights and obligations of the Parties shall survive such termination or expiration to the extent necessary to carry out the intentions of the Parties as embodied in the rights and obligations of the Parties under
this Agreement. 
  
 26. Captions and Paragraph Headings.

  
 Captions and paragraph headings used herein
are for convenience and are not a part of this Agreement and shall not be used in construing it. 
  
 27. Counterparts. 
  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together
shall constitute one and the same instrument. Signatures delivered by facsimile shall be effective for all purposes. 
  
 [The remainder of this page is intentionally left blank.] 
  

 43 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first set forth above.

  

					
	 THE E. W. SCRIPPS COMPANY

		
	By:	 	 
	 	 	

	 	 	 Name:
	 	 
	 	 	 	 	

	 	 	 Title:
	 	 
	 	 	 	 	

		
	 Address:
	 	 312 Walnut Street
 28th Floor
 Cincinnati, Ohio
45202

  

					
	
	 
	

	 Kenneth W. Lowe

			
	 Address:
	 	 	 	 312 Walnut Street
 28th Floor
 Cincinnati, Ohio
45202

  

 44

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