Document:

EX-10.8

 

EXHIBIT 10.8

NONQUALIFIED STOCK OPTION AGREEMENT

(DIRECTORS)

     This
Agreement is made and entered into as of                      (“Date of Grant”) between Scripps
Networks Interactive, Inc. (“Company”) and                                          (“Grantee”).

     In consideration of the mutual promises contained herein and for other good and valuable
consideration, the parties agree as follows:

     1. The Company delivers to the Grantee a Nonqualified Stock Option to purchase                     
Class A Common Shares (the “Shares”) of the Company (the “Option”). The Option is subject to the
terms and conditions herein set forth and to the terms and conditions of the Company’s 2008
Long-Term Incentive Plan (the “Plan”).

     2. Unless and until terminated or forfeited as provided herein or in the Plan, the Option
shall become exercisable from
                    
until its expiration date on                                         , during which
period the Grantee may exercise all or part of the Option provided that each exercise is for at
least 50 Shares (the “Minimum Exercise”).

     3. The exercise price of the Shares shall be $                     per share, the Fair Market Value on
the Date of Grant.

     4. The Option shall expire at midnight on                     , unless sooner terminated, forfeited or
modified under a provision of this Agreement or the Plan.

     5. The Option may not be exercised by anyone other than the Grantee or Grantee’s guardian or
legal representative during Grantee’s lifetime. In the event of Grantee’s death, the Option may be
exercised by the executor or administrator of the Grantee’s estate or, if no executor or
administrator has been appointed, by the successor or successors in interest determined under the
Grantee’s will or under the applicable laws of descent and distribution. Except as otherwise
provided herein or in the Plan, the Option may not be transferred, assigned, encumbered or
alienated in any way by the Grantee and any attempt to do so shall render the Option and any
unexercised portion thereof, at the discretion of the Company, null, void and unenforceable.

     6(a). To the extent that the Option becomes exercisable in accordance with Section 2, and
subject to the Minimum Exercise, it may be exercised in whole or in part by delivering to the
Company or the Company’s representative written notice of exercise specifying the number of Shares
to be purchased. Such notice shall be accompanied by: 1) cash or a check in payment of the option
exercise price, or; 2) delivery of previously acquired Shares that are not restricted, which will
be valued at their Fair Market Value on the exercise date in payment of the option exercise price,
or; 3) a combination of cash or check and such Shares in payment of the option exercise price.

 

 

     6(b). Subject to the Minimum Exercise, the Option may also be exercised in whole or in part by
giving an irrevocable notice of exercise to the Company’s brokerage representative. The date on
which such notice is received by the broker shall be the date of the exercise of the Option,
provided that within five business days of the delivery of such notice the funds to pay for
exercise of the Option are delivered to the Company by a broker acting on behalf of the Grantee
either in connection with the sale of the shares underlying the Option or in connection with the
making of a margin loan to the Grantee to enable payment of the exercise price of the Option.

     7. The Company shall, upon exercise of the Option pursuant to section 6(a) or 6(b), issue or
cause to be issued to the Grantee (or Grantee’s executor or administrator or other person entitled
thereto), a stock certificate for the number of Shares purchased thereby and/or to any broker
acting on behalf of the Grantee a stock certificate for the number of shares sold by such broker
for the Grantee. As an alternative to the Company issuing a stock certificate, the Company may
choose to have shares registered through an uncertificated share registration system.

     8. The Company may require, as a condition of the exercise of the Option, that the Grantee
sign such further documents as it reasonably determines to be necessary or appropriate to assure
compliance with Company policy and/or with federal and applicable state securities laws.

     9. The Grantee shall have no rights as a shareholder with respect to any of the Shares until
such Shares are issued to the Grantee. Nothing contained in this Agreement shall confer upon the
Grantee any right to be nominated for reelection by the Company’s shareholders, or any right to
remain a member of the Board of Directors of the Company for any period of time, or at any
particular rate of compensation.

     10. The terms and conditions contained in the Plan, as it may be amended from time to time
hereafter are incorporated into and made a part of this Agreement by reference, as if the same were
set forth herein in full and all provisions of the Option are made subject to any and all terms of
the Plan, as so amended. In the event there is any conflict between the terms of this Agreement
and the terms of the Plan, the terms of the Plan shall control. This Agreement and the Plan
contain the entire agreement and understanding of the parties with respect to the subject matter
contained in this Agreement, and supersede all prior written or oral communications,
representations and negotiations in respect thereto.

     11. Each capitalized term used, but not defined herein, shall have the meaning assigned to it
in the Plan.

     12. This Agreement shall be governed by Ohio law.

     13. The Grantee hereby consents and agrees to electronic delivery of any documents that the
Company may elect to deliver (including, but not limited to, prospectuses, prospectus supplements,
grant or award notifications and agreements, account statements, annual and quarterly reports, and
all other forms of communications) in connection with this and any other award made or offered
under the Plan. The Grantee understands that, unless earlier revoked by

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the Grantee by giving written notice to the Company, this consent shall be effective for the
duration of the Agreement. The Grantee also understands that he or she shall have the right at any
time to request that the Company deliver written copies of any and all materials referred to above
at no charge. The Grantee hereby consents to any and all procedures the Company has established or
may establish for an electronic signature system for delivery and acceptance of any such documents
that the Company may elect to deliver, and agrees that his or her electronic signature is the same
as, and shall have the same force and effect as, his or her manual signature. The Grantee consents
and agrees that any such procedures and delivery may be effected by a third party engaged by the
Company to provide administrative services related to the Plan.

     14. Subject to the terms of the Plan, the Compensation Committee of the Board may modify this
Agreement. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the
extent that the amendment is applicable hereto. Notwithstanding the foregoing, no amendment of the
Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement
without the Grantee’s consent.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on behalf of its duly
authorized officer as of the Date of Grant.

	 	 	 	 	 
	 

	 	SCRIPPS NETWORKS INTERACTIVE, INC.	 	 
	 
	 	 	 	 
	 

	 	/s/ Kenneth W. Lowe
 

By: Kenneth W. Lowe
	 	 
	 

	 	Its: Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	 

Accepted by Grantee
	 	 
	 

	 	Name	 	 
	 
	 	 	 	 
	 

	 	NAME – THIS AWARD MUST BE ACCEPTED BY YOU NO
LATER THAN                      OR THIS AGREEMENT MAY
BE CANCELLED BY THE COMPANY.	 	 

You may accept the award online or by telephone in accordance with the procedures established by
the Company and the Plan administrator. By accepting your award in accordance with these
procedures, you acknowledge that a copy of the Plan, Plan Summary and Prospectus, and the Company’s
most recent Annual Report and Proxy Statement (the “Prospectus Information”) either have been
received by you or are available for viewing on the Company’s intranet site at www.benefits.ml.com
and consent to receiving this Prospectus Information electronically, or, in the alternative, agree
to contact Corporate Compensation Manager at                      to request a paper copy of the Prospectus
Information at no charge. You also represent that you are familiar

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with the terms and provisions of the Prospectus Information and hereby accept the award on the
terms and conditions set forth herein and in the Plan. These terms and conditions constitute a
legal contract that will bind both you and the Company as soon as you accept the award as described
above.

4EX-10.9

 

Exhibit 10.9

Scripps Networks Interactive, Inc.

Executive Annual Incentive Plan

 

	1.	 	Purpose of the Plan; Effective Date

The purpose of the Executive Annual Incentive Plan (the “Plan”) is to promote the interests of
Scripps Networks Interactive, Inc. (the “Company”) and its shareholders by providing incentive
compensation for certain designated key executives and employees of the Company and its
subsidiaries.

This Plan is adopted effective immediately prior to the Distribution Date as defined in the
Employee Matters Agreement by and between The E. W. Scripps Company and the Company (the “Effective
Date”) by the Board of Directors of the Company.

	2.	 	Definitions

As used in this Plan, the following capitalized terms have the respective meanings set forth in
this section:

	(a)	 	Act: The Securities Exchange Act of 1934, as amended, or any successor thereto.

	(b)	 	Affiliate: Means any Person controlling or under common control with the Company or any
Person of which the Company directly or indirectly has Beneficial Ownership of securities
having a majority of the voting power.
	 
	(c)	 	Award: A periodic cash incentive award granted pursuant to the Plan.
	 
	(d)	 	Beneficial Owner: As such term is defined in Rule 13d-3 under the Act (or any successor rule thereto).
	 
	(e)	 	Board: The Board of Directors of the Company.
	 
	(f)	 	Change in Control shall occur with respect to all
participants in the Plan when after the Distribution Date:

(i) any Person becomes a “Beneficial Owner” 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 of Directors of the Company (the “Board”) consists of individuals
other than Incumbent Directors; or

(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 have Beneficial Ownership of, 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);

	(g)	 	Change in Control shall occur with respect to a particular participant in the Plan employed
by a particular subsidiary or division of a subsidiary when after the
Distribution Date:

(i) any Person, other than the Company or an Affiliate, acquires Beneficial Ownership of
securities of the particular subsidiary of the Company employing the participant having at least
fifty percent (50%) of the voting power of such subsidiary’s then outstanding securities; or

(ii) the particular subsidiary sells to any Person other than the Company or an Affiliate all or
substantially all of the assets of the particular division thereof to which the participant is
assigned.

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	(h)	 	Code: The internal Revenue Code of 1986, as amended, or any successor thereto.

	(i)	 	Committee: The Incentive Plan Committee of the Board, or any successor thereto, or any other
committee designated by the Board to assume the obligations of the Committee hereunder.
	 
	(j)	 	Company: Scripps Networks Interactive, Inc., an Ohio corporation.
	 
	(k)	 	Covered Employee: An employee who is, or who is anticipated to become, a covered employee, as such
term is defined in Section 162(m) of the Code (or any successor section thereto).
	 
	(l)	 	Distribution Date: Has the meaning given that term in Section 1.
	 
	(m)	 	Effective Date: Has the meaning given that term in Section 1.
	 
	(n)	 	Incumbent Director: Means a member of the Board on the Distribution Date, provided that any
person becoming a director subsequent to the Distribution 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.
	 
	(o)	 	Participant: A Covered Employee of the Company or any of its Subsidiaries who is selected by the
Committee to participate in the Plan pursuant to Section 4 of the Plan.
	 
	(p)	 	Performance Period: The calendar year or any other period that the Committee, in its sole
discretion, may determine.
	 
	(q)	 	Person: As such term is used for purposes of Section 13(d) or 14(d) of the Act or any successor sections
thereto.
	 
	(r)	 	Plan: The Scripps Networks Interactive, Inc. Executive Annual Incentive Plan.
	 
	(s)	 	Separation from Service: A “separation from service” as defined under Section 409A of the
Code. Upon a sale or other disposition of the assets of the Company or any Affiliate to an
unrelated purchaser, the Committee reserves the right, to the extent permitted by Section 409A
of the Code, to determine whether Participants providing services to the purchaser after and
in connection with the purchase transaction have experienced a Separation from Service.
	 
	(t)	 	Shares: Class A common shares of the Company.

	3.	 	Administration

The Plan shall be administered by the Committee or such other persons designated by the Board. The
Committee shall have the authority to select the Covered Employees to be granted Awards under the
Plan, to determine the size and terms of an Award (subject to the limitations imposed on Awards in
Section 5 below), to modify the terms of any Award that has been granted (except for any
modification that would increase the amount of the Award), to determine the time when Awards will
be made and the Performance Period to which they relate, to establish performance objectives in
respect of such Performance Periods and to certify that such performance objectives were attained;
provided, however, that any such action shall be consistent with the applicable provisions of
Section 162(m) of the Code. The Committee is authorized to interpret the Plan, to establish, amend
and rescind any rules and regulations relating to the Plan, and to make any other determinations
that it deems necessary or desirable for the administration of the Plan; provided, however, that
any action permitted to be taken by the Committee may be taken by the Board, in its discretion. Any
decision of the Committee in the interpretation and administration of the Plan, as described
herein, shall lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned. Determinations made by the Committee under the Plan need not be
uniform and may be made selectively among Participants, whether or not such Participants are
similarly situated. The Committee shall have the right to deduct from any payment made under the
Plan any federal, state, local or foreign income or other taxes required by law to be withheld with
respect to such payment. To the extent consistent with the applicable provisions of Sections 162(m)
of

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the Code, the Committee may delegate to one or more employees of the Company or any of its
Subsidiaries the authority to take actions on its behalf pursuant to the Plan.

	4.	 	Eligibility and Participation

The Committee shall designate those persons who shall be Participants for each Performance Period.
Participants shall be selected from among the Covered Employees of the Company and any of its
Subsidiaries who are in a position to have a material impact on the results of the operations of
the Company or of one or more of its Subsidiaries.

	5.	 	Awards

	(a)	 	Performance Goals. A Participant’s Award shall be determined based on the attainment of
written performance goals approved by the Committee for a Performance Period established by
the Committee (i) while the outcome for the Performance Period is substantially uncertain and
(ii) no more than 90 days after the commencement of the Performance Period to which the
performance goal relates. The Committee reserves the right to adjust any performance goals
for unusual or unplanned items, favorable or unfavorable. The performance goals, which must
be objective, shall be based solely upon specified levels of or growth in one or more or the
following criteria:

	 	1.	 	Earnings per share;
	 
	 	2.	 	Segment profit;
	 
	 	3.	 	Gross margin;
	 
	 	4.	 	Operating or other expenses;
	 
	 	5.	 	Earnings before interest and taxes (“EBIT”);
	 
	 	6.	 	Earnings before interest, taxes, depreciation and amortization;
	 
	 	7.	 	Free cash flow;
	 
	 	8.	 	Net income;
	 
	 	9.	 	Return on investment (determined with reference to one or more categories of income or
cash flow and one or more categories of assets, capital or equity);
	 
	 	10.	 	Stock price appreciation; and
	 
	 	11.	 	Network-related viewer ratings or impressions.
	 
	 	 	 	The foregoing criteria may relate to the Company, one or more of its Subsidiaries or one or more
of its divisions, units, partnerships, joint ventures or minority investments, product lines or
products or any combination of the foregoing, and may be applied on an absolute basis or be
relative to the Company’s annual budget, one or more peer group companies or indices, or any
combination thereof, all as the Committee shall determine. In addition, to the degree consistent
with Section 162(m) of the Code (or any successor section thereto), the performance goals may be
calculated without regard to extraordinary items. The maximum amount of an Award to any
Participant with respect to a fiscal year of the Company shall be $4,000,000.

	(b)	 	Payment. The Committee shall determine whether, with respect to a Performance Period, the
applicable performance goals have been met with respect to a given Participant and, if they
have, to so certify, and ascertain the amount of the applicable Award. No Awards will be paid
for such Performance Period until such certification is made by the Committee. The amount of
the Award actually paid to a given Participant may be less than the amount determined by the
applicable performance goal formula (including zero), at the discretion of the Committee. The
amount of the Award determined by the Committee for a Performance Period shall be paid to the
Participant at such time as determined by the Committee in its sole discretion after the end
of such Performance Period, but in no event later than March 15 of the calendar year
immediately following the end of the Performance Period.

	(c)	 	Compliance with Section 162(m) of the Code. The provisions of this Section 5 shall be
administered and interpreted in accordance with Section 162(m) of the Code to ensure the
deductibility by the Company or its Subsidiaries of the payment of Awards; provided, however,
that the Committee may, in its sole discretion, administer the Plan in violation of Section
162(m) of the Code.

	(d)	 	Termination of Employment. If a Participant dies, retires, is assigned to a different
position, is granted a leave of absence, or if the Participant’s employment is otherwise
terminated (except with cause by the Company, as determined by the Committee in its sole
discretion) during a Performance Period (other than a Performance Period in which a Change in
Control occurs), a pro rata share of the Participant’s award based on the period of actual

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	 	 	participation shall be paid to the Participant after the end of the Performance Period, but in
no event later than March 15 of the calendar year immediately following the end of the
Performance Period, if it would have become earned and payable had the Participant’s employment
status not changed; provided, however, that the amount of the Award actually paid to a given
Participant may be less than the amount determined by the applicable performance goal formula
(including zero), at the discretion of the Committee.

	6.	 	Amendments or Termination

The Board or the Committee may amend, alter or discontinue the Plan, but no amendment, alteration
or discontinuation shall be made which would impair any of the rights or obligations under any
Award theretofore granted to a Participant under the Plan without such Participant’s consent,
unless the Board or the Committee, as the case may be, determines in good faith that such action is
necessary to comply with Section 409A of the Code; provided, however, that the Board or the
Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards
meeting the requirements of the Section 162(m) of the Code or other applicable laws.
Notwithstanding anything to the contrary herein, the Board may not amend, alter or discontinue the
provisions relating to Section 10(b) of the Plan after the occurrence of a Change in Control.

	7.	 	No Right to Employment

Neither the Plan nor any action taken hereunder shall be construed as giving any Participant or
other person any right to continue to be employed by or perform services for the Company or any
Subsidiary, and the right to terminate the employment of or performance of services by any
Participant at any time and for any reason is specifically reserved to the Company and its
Subsidiaries.

	8.	 	Nontransferability of Awards

An award shall not be transferable or assignable by the Participant otherwise than by will or by
the laws of descent and distribution.

	9.	 	Reduction of Awards

Notwithstanding anything to the contrary herein, the Committee, in its sole discretion (but subject
to applicable law), may reduce any amounts payable to any Participant hereunder in order to satisfy
any liabilities owed to the Company or any of its Subsidiaries by the Participant.

	10.	 	Adjustments Upon Certain Events

	(a)	 	Generally. In the event of any change in the outstanding Shares by reason of any Share
dividend or split, reorganization, recapitalization, merger, consolidation, spin-off,
combination or exchange of Shares or other corporate exchange, or any distribution to
stockholders of Shares other than regular cash dividends, the Committee in its sole discretion
and without liability to any person may make such substitution or adjustment, if any, as it
deems to be equitable, as to any affected terms of outstanding Awards.

	(b)	 	Change in Control. In the event that (i) a Participant incurs a Separation from Service
during a given Performance Period (the “Affected Performance Period”) and (ii) a Change in
Control shall have occurred within the 365 days immediately preceding the date of such
Separation from Service, then such Participant shall receive an Award for the Affected
Performance Period as if the performance goals for such Performance Period had been achieved
at 100%. The Award shall be paid to the Participant within 30 days following the date of his
or her Separation from Service; provided, however, that if the Participant is a “specified
employee,” as determined under the Company’s policy for determining specified employees, on
the date of his or her Separation from Service, then to the extent required in order to comply
with Section 409A of the Code, the Award shall instead be paid (together with interest at the
applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the date of
Separation from Service) within 10 days after the first business day following the six month
anniversary of such Separation from Service (or, if the Participant dies during such six-month
period, within 10 days after the Participant’s death).

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	11.	 	Compliance with Section 409A

It is intended that the payments of Awards provided under this Plan shall either be exempt from the
application of, or comply with, the requirements of Section 409A of the Code. This Plan shall be
construed, administered, and governed in a manner that effects such intent, and the Committee shall
not take any action that would be inconsistent with such intent.

	12.	 	Miscellaneous Provisions

The Company is the sponsor and legal obligor under the Plan and shall make all payments hereunder.
The Company shall not be required to establish any special or separate fund or to make any other
segregation of assets to ensure the payment of any amounts under the Plan, and the Participants’
rights to the payment hereunder shall be no greater than the rights of the Company’s (or
Subsidiary’s) unsecured creditors. All expenses involved in administering the Plan shall be borne
by the Company.

	13.	 	Choice of Law

The Plan shall be governed by and construed in accordance with Ohio law.

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