Document:

Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement  (this “Agreement”) is made and entered into as
of January 1, 2008, by and between Barrington Broadcasting Group LLC, a
Delaware limited liability company (together with its wholly-owned operating
subsidiaries being referred to herein collectively as the “Company”), and K.
James Yager, an individual (the “Employee”).

 

RECITALS

 

WHEREAS, the Employee
currently serves as the Chief Executive Officer of the Company and is directly
responsible for the success, operations, customer relationships, and business
strategy of the Company.

 

WHEREAS, the parties
recognize and agree that the terms and conditions set forth in this Agreement,
including the restrictive covenants set forth in Section 1.6 below, are
critical to the successful operation of the Company.

 

WHEREAS, the Company
desires to continue the employment of the Employee as its  Chief Executive Officer, and the Employee
desires to accept this offer of employment, effective as of the Effective Date.

 

WHEREAS, the Company
and the Employee have determined that the terms and conditions of this
Agreement are reasonable and in their mutual best interests and accordingly
desire to enter into this Agreement in order to provide for the terms and
conditions upon which the Employee shall be employed by the Company.

 

NOW
THEREFORE, in consideration of the foregoing and the
respective covenants, agreements and representations and warranties set forth
herein, the parties to this Agreement, intending to be legally bound, agree as
follows:

 

ARTICLE 1.

TERMS OF EMPLOYMENT

 

1.1          Employment
and Acceptance.

 

(a)   Employment
and Acceptance.  On and
subject to the terms and conditions of this Agreement, the Company shall employ
the Employee and the Employee hereby accepts such employment. The term of the
Employee’s employment pursuant to this Agreement (the “Term”) shall commence
on January 1, 2008 (the “Effective Date”) and shall have a term of three
years, unless sooner terminated as hereinafter provided.  The Term shall be extended only through the
execution, by both parties, of a written amendment to this Agreement, in which
case references to the Term shall refer to the Term as so amended.

 

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(b)   Responsibilities
and Duties. The Employee shall serve as the Chief Executive
Officer of the Company during the Term, subject to any change or changes in
title on which the parties shall mutually agree.  The Employee’s duties as Chief Executive
Officer shall consist of such duties and responsibilities as are consistent
with the Employee’s position, including but not be limited to, (i) continuing
as the strategic leader of the Company’s Business, (ii) supervising all
senior management personnel of the Company, (iii) supervising the continuation
and development of the Company’s network and other business affiliations, (iv) supervising
the preparation of annual budgets and business plans, and (iv) continuing
as the head spokesperson for the Company’s Business. The Employee will also
serve on the Company’s Board of Directors throughout the Term.

 

(c)   Authority. The Employee
shall have the authority perform such acts as are necessary or advisable to
fulfill the duties as set forth in Section 1.1(b) hereof and shall
have such additional powers at the Company as may from time to time be
prescribed by Robert B. Sherman or such other person as the Board may
designate.  Notwithstanding anything
herein to the contrary, the Employee shall not hire or fire any senior
executive officer (President, Chief Operating Officer, Chief Financial Officer,
Executive Vice President or Senior Vice President) without the approval of the
Board.

 

(d)   Reporting. The Employee
shall report directly to Robert B. Sherman, or such other person or persons as
may be designated by the Board. The Chief Operating Officer (if such position
is not held by the Employee) of the Company shall report directly to the
Employee.

 

(e)   Performance
of Duties. With respect to his duties hereunder, at all times,
the Employee shall be subject to the instructions, control, and direction of
the Board, and act in accordance with the Company’s Certificate of
Incorporation, Bylaws and other governing policies, rules and regulations,
except to the extent that the Employee is aware that such documents conflict
with applicable law. The Employee shall devote his business time, attention and
ability to serving the Company on an exclusive and full-time basis as
aforesaid, consistent with the Employee’s past practice and as the Board may
reasonably require, except during holidays, vacations, illness or accident, or
as may be otherwise approved from time to time by the Board in writing.  Notwithstanding the above and upon written
approval by Robert B. Sherman or such other person as the Board may designate, the
Chief Executive Officer shall be permitted to accept positions on the board of
directors of outside companies and will be permitted to attend to the requisite
duties of such positions during working hours. 
Set forth on Schedule A hereto is a list of any such appointments
or arrangements which are in effect on the date hereof.  The Employee shall also promote, by
entertainment or otherwise, as and to the extent permitted by law, the business
of the Company.

 

1.2          Compensation.

 

(a)   Annual
Salary. The Employee shall receive an annual salary of for each year of the
Term (the “Annual Salary”).
For 2008, the Annual Salary shall be $425,000. The Annual Salary shall be
payable on a bi-weekly basis or such other payment schedule as used by the
Company for its senior level employees from time to time, less such deductions
as shall be 

 

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required
to be withheld by applicable law and regulation and consistent with the Company’s
practices.  The Annual Salary payable to
the Employee will be reviewed annually by the Board.

 

(b)   Annual
Bonuses. For each full fiscal year during the Term, the
Employee shall be eligible to receive an annual bonus (the “Annual Bonus”) in such amount as
shall be determined by the Board based principally on the extent to which the
Company meets the applicable financial targets (“Bonus Targets”) established by the Board from time to time.  The Employee shall consult with the Board to
develop such Bonus Targets by no later than January 15th of each fiscal
year for the current fiscal year; provided, however, that with respect to the
Bonus Targets for fiscal year 2008, the Employee shall consult with the Board
and the Board shall deliver to the Employee a copy of the Company’s 2008 fiscal
year bonus plan which shall be applicable to the Employee, which bonus plan
shall be in the form of Exhibit A hereto.  Bonus plans for future fiscal years,
including the bonus amounts and the methodology for determining such bonus
amounts, shall be substantially similar to the Company’s 2008 fiscal year bonus
plan.  All earned Annual Bonuses shall be
paid not later than 2 1⁄2 months following the end of the fiscal year to which
the Annual Bonus relates.

 

(c)           Expenses.  The Employee shall be reimbursed for all
ordinary and necessary out-of-pocket business expenses reasonably and actually
incurred or paid by the Employee in the performance of the Employee’s duties
during the Term in accordance with the Company’s policies upon presentation of
such expense statements or vouchers or such other supporting information as the
Company may require.  The Company may
revise such policies from time to time at its discretion. The Employee shall
also be reimbursed for $550 per month for automobile expenses, the annual dues
of one country club membership and 100% of the group insurance premium for
health and dental insurance, all consistent with past practice.  In no event shall the Employee’s expenses be
reimbursed after the end of the calendar year following the calendar year in
which the expenses were incurred by the Employee.  The Employee must submit all reimbursement
requests within 90 days after the expense is incurred.

 

1.3          Benefits.  The Employee shall be entitled to fully
participate in all benefit plans that are in place and available to senior
level employees of the Company from time to time, including, without
limitation, medical, dental, long-term disability and life insurance, subject
to the general eligibility, participation and other provisions set forth in
such plans.

 

1.4          Vacation.  During the Term, the Employee shall be
entitled to paid vacation time per calendar year consistent with past practice,
so long as such vacation time does not interfere with his ability to properly
perform his duties as Chief Executive Officer of the Company. Vacation time
does not accrue nor vest, nor is the amount allowed dependent on seniority.

 

1.5          Termination
of Employment.

 

(a)   Termination
for Cause.  The Company
may terminate the Employee’s employment at any time for Cause, without any
requirement of a notice period and without payment of any compensation of any
nature or kind (including, without limitation, by way of anticipated earnings,
damages or payment in lieu of notice). 
In the event of a for Cause 

 

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termination,
the Employee shall not be entitled to any severance benefits or payments (other
than those required under subsection (g) hereof).

 

(b)   Permanent
Incapacity.  In the event
of the Permanent Incapacity of the Employee, his employment may thereupon be
terminated by the Company without payment of any severance of any nature or
kind (including, without limitation, by way of anticipated earnings, damages or
payment in lieu of notice); provided
that, in the event of the Employee’s termination pursuant to this subsection,
subject to Section 2.10 hereof, the Company shall pay or cause to be paid
to the Employee (i) the amounts prescribed by subsection (g) below
through the date of Permanent Incapacity), (ii) an amount equal to Executive’s
Annual Bonus for the year in which Permanent Incapacity occurs, prorated for
the partial fiscal year during which Executive worked and calculated based upon
the Company’s performance for the full fiscal year in which the Permanent
Incapacity occurs, (iii) six months of then current Annual Salary, payable
in a lump sum cash payment within 2 1⁄2 months following the Employee’s Permanent
Incapacity and (iv) the amounts specified in any benefit and insurance
plans applicable to the Employee as being payable in the event of the permanent
incapacity or disability of the Employee, such sums to be paid in accordance
with the provisions of those plans as then in effect. Any prorated Annual Bonus
amount (to the extent the Board determines that the bonus targets have been
achieved) payable under this subsection shall be paid after calculation of the
applicable bonus amount and paid in a lump sum cash payment within 2 1⁄2 months
following the end of the fiscal year in which the Annual Bonus relates;
provided that, if the Annual Bonus is subject to a deferral election under a “nonqualified
deferred compensation plan” within the meaning of Code Section 409A, the
Annual Bonus will be paid in accordance with the terms of such plan.  Any right of the Employee to payment pursuant
to this subsection shall be contingent on the Employee’s satisfaction of the
release requirement in Section 1.5(i) upon payment of the amounts set
forth in this subsection. Upon payment of the amounts set forth in this
subsection, the Employee shall not be entitled to any severance benefits or
payments (other than those required under subsection (g) hereof).

 

(c)   Death.  If the Employee’s employment is terminated by
reason of the Employee’s death, the Employee’s beneficiaries or estate will be
entitled to receive and the Company shall pay or cause to be paid to them or
it, as the case may be, (i) the amounts prescribed by subsection (g) below
through the date of death, (ii) an amount equal to the Employee’s Annual
Bonus for the year in which death occurs, prorated for the partial fiscal year
during which the Employee worked and calculated based upon the Company’s
performance for the full fiscal year in which the Death occurs, (iii) six
months of then current Annual Salary, payable in a lump sum cash payment within
2 1⁄2 months following the Employee’s death, and (iv) the amounts specified
in any benefit and insurance plans applicable to the Employee as being payable
in the event of the death of the Employee, such sums to be paid in accordance
with the provisions of those plans as then in effect.  Any prorated Annual Bonus amount payable
under this subsection shall be paid after calculation of the applicable bonus
amount (to the extent the Board determines that the Bonus Targets have been
achieved) and paid in a lump sum cash payment within 2 1⁄2 months following the
end of the fiscal year in which the Annual Bonus relates. Any right of the
Employee’s beneficiaries or estate to payment pursuant to this subsection shall
be contingent on the beneficiaries; or estate’s satisfaction of the release
requirement in Section 1.5(i).  Upon
payment of the amounts set forth in this subsection, the 

 

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Employee’s
beneficiaries or estate shall not be entitled to any severance benefits or
payments (other than those required under subsection (g) hereof).

 

(d)   Termination
by Employee. The Employee may terminate his employment with the
Company upon giving 30 days’ written notice or such shorter period of notice as
the Company may accept.  If the Employee
resigns for Good Reason, the Employee shall receive the severance benefits
required under subsection (e) or (f) below, as the case may be,. If
the Employee resigns for any reason not constituting Good Reason, the Employee
shall not be entitled to any severance benefits (other than those required
under subsection (g) hereof).

 

(e)   Termination
without Cause or by the Employee for Good Reason. If the Employee’s
employment with the Company is terminated by the Company without Cause or by
the Employee for Good Reason, the Employee shall be entitled to receive, a lump
sum payment equal to the greater of: (x) $550,000 or (y) an amount
equal to his then current Annual Salary.  The payment described in this subsection is
the only severance payment or payment in lieu of notice that the Employee will
be entitled to receive under this Agreement (other than payments due under
subsection (g) hereof) in the event of the termination of his employment
on the basis contemplated in this paragraph. 
Any payment pursuant to this subsection shall be paid, subject to Section 2.10
hereof, within 2 1⁄2 months of employment with the Company.  Any right of the Employee to payment pursuant
to this subsection shall be contingent on the Employee’s satisfaction of the release
requirement in Section 1.5(i).

 

(f)    Termination without Cause
or by the Employee for Good Reason after a Change of Control. Notwithstanding
any provision of Section 1.5(e) to the contrary and without
duplication of any payment made pursuant to Section 1.5(e), if, during the
one year period following a Change of Control, the Employee’s employment with
the Company is terminated by the Company without Cause or by the Employee for
Good Reason, the Company shall pay to the Employee, by way of lump sum payment
equal to the greater of: (x) $550,000 or (y) an amount equal to his
then current Annual Salary.  The payment described in this subsection is
the only severance payment or payment in lieu of notice that the Employee will
be entitled to receive under this Agreement (other than payments due under
subsection (g) hereof) in the event of the termination of his employment
on the basis contemplated in this paragraph. 
Any payment pursuant to this subsection shall be paid, subject to Section 2.10
hereof, within 2 1⁄2 months of employment with the Company.  Any right of the Employee to payment pursuant
to this subsection shall be contingent on the Employee’s satisfaction of the
release requirement in Section 1.5(i).

 

(g)   Earned
Salary and Un-reimbursed Expenses.  In the event that any portion of the Employee’s
Annual Salary has been earned but not paid or any reimbursable expenses have
been incurred by the Employee but not reimbursed, in each case to the date of
termination of his employment, such amounts shall be paid to the Employee
within 30 days following such date of termination.

 

(h)   Statutory
Deductions. All payments required to be made to the Employee,
his beneficiaries, or his estate under this Section shall be made net of
all deductions required to be withheld by applicable law and regulation.  The Employee shall be solely responsible for
the satisfaction of any taxes (including employment taxes imposed on employees 

 

5

 

and
taxes on nonqualified deferred compensation). 
Although the Company intends and expects that the Plan and its payments
and benefits will not give rise to taxes imposed under Code Section 409A,
neither the Company nor its employees, directors, or their agents shall have
any obligation to hold the Employee harmless from any or all of such taxes or
associated interest or penalties.

 

(i)    Fair
and Reasonable, etc. The parties acknowledge and agree that the payment
provisions contained in this Section are fair and reasonable, and the
Employee acknowledges and agrees that such payments are inclusive of any notice
or pay in lieu of notice or vacation or severance pay to which he would
otherwise be entitled under statute, pursuant to common law or otherwise in the
event that his employment is terminated pursuant to or as contemplated in this Section 1.5.  The parties further agree that upon any
termination of the employment of the Employee as contemplated in this Section and
the payment to the Employee or his estate, as the case may be, of the amounts contemplated
therein, as well as any expenses which the Employee is entitled to have
reimbursed as contemplated above, the Employee shall:

 

(i)    have no action,
cause of action, claim or demand of any nature or kind whatsoever against the
Company or against any other person as a consequence of, in respect of or in
connection with this Agreement or such termination of the Employee’s
employment; and

 

(ii)   as a condition
of the right to receive benefits pursuant to this Section 1.5, the
Employee or his estate, as applicable, shall execute within 50 days of the
Employee’s termination of employment (and not revoke) a general release of all
claims in customary form.

 

(j)    Return
of Property. Upon any termination of the Employee’s employment by
the Employee or by the Company as contemplated above in this Section 1.5,
the Employee or the Employee’s estate shall at once deliver or cause to be
delivered to the Company all books, documents, effects, money, securities,
credit cards or other property belonging to the Company or for which the
Company is liable to others which are in the possession, charge, control or
custody of the Employee.

 

1.6          Restrictive
Covenants.

 

(a)   Non-competition. The Employee
recognizes and acknowledges that his services to the Company are of a special,
unique and extraordinary nature that cannot easily be duplicated.  Further, the Company has and will expend
substantial resources to promote such services and develop the Company’s
Proprietary Information.  Accordingly, in
order to protect the Company from unfair competition and to protect the Company’s
Proprietary Information, the Employee agrees that, at all times during the
Restricted Period, the Employee shall not, directly or indirectly (i) perform
or provide managerial or employee services on behalf of any Person which is
engaged in the ownership and /or operation of television stations  that directly or indirectly compete with the
Company’s Business within the television markets then operated by the Company;
or (ii) have any interest in any business that competes with the Company’s
Business; provided that this
provision shall not apply to the Employee’s ownership or acquisition, solely as
an investment, of securities of any issuer that is registered under Section 

 

6

 

12(b) or
12(g) of the Securities Exchange Act of 1934, as amended, and that are
listed or admitted for trading on any United States national securities
exchange or that are quoted on the National Association of Securities Dealers
Automated Quotations System, or any similar system or automated dissemination
of quotations of securities prices in common use, so long as the Employee does
not control, acquire a controlling interest in or become a member of a group
which exercises direct or indirect control of, more than five percent of any
class of capital stock of such issuer.

 

(b)   Confidential
Information. The Employee recognizes and acknowledges that the
Proprietary Information is a valuable, special and unique asset of the Company’s
Business.  In order to obtain and/or
maintain access to the Proprietary Information, which Employee acknowledges is
essential to the performance of his duties under this Agreement, the Employee
agrees that, except with respect to those duties assigned to him by the
Company, the Employee: (i) shall hold in confidence all Proprietary
Information; (ii) shall not reproduce, use, distribute, disclose, or
otherwise misappropriate any Proprietary Information, in whole or in part; (iii) shall
take no action causing, or fail to take any action necessary to prevent
causing, any Proprietary Information to lose its character as Proprietary
Information; and (iv) shall not make use of any such Proprietary
Information for the Employee’s own purposes or for the benefit of any person,
business or legal entity (except the Company) under any circumstances; provided that the Employee may disclose
such Proprietary Information to the extent required by law; provided, further that, prior to any such
disclosure, (A) the Employee delivers to the Company written notice of
such proposed disclosure, together with an opinion of counsel regarding the
determination that such disclosure is required by law and (B) the Employee
provides an opportunity to contest such disclosure to the Company.  The provisions of this subsection will apply
to Trade Secrets for as long as the applicable information remains a Trade
Secret and to Confidential Information.

 

(c)   Nonsolicitation
of Employees and Customers. At all times during the
Restricted Period, the Employee shall not, directly or indirectly, for himself
or for any other Person: (i) solicit, recruit or attempt to solicit or
recruit any employee of the Company to leave the Company’s employment; or (ii) solicit
or attempt to solicit any of the actual or targeted prospective customers or
clients of the Company with whom the Employee had material contact or about
whom the Employee learned Confidential Information  on behalf of any Person in connection with any business that
competes with the Company’s Business.

 

(d)   Ownership
of Developments. All Work Product shall belong exclusively to the
Company and shall, to the extent possible, be considered a work made by the
Employee for hire for the Company within the meaning of Title 17 of the United
States Code.  To the extent the Work
Product may not be considered work made by the Employee for hire for the
Company, the Employee agrees to assign, and automatically assign at the time of
creation of the Work Product, without any requirement of further consideration,
any right, title, or interest the Employee may have in such Work Product.  Upon the request of the Company, the Employee
shall take such further actions, including execution and delivery of
instruments of conveyance, as may be appropriate to give full and proper effect
to such assignment.

 

(e)   Books
and Records. All books, records, and accounts relating in any
manner to the customers or clients of the Company, whether prepared by the
Employee or 

 

7

 

otherwise
coming into the Employee’s possession, shall be the exclusive property of the
Company and shall be returned immediately to the Company on termination of the
Employee’s employment hereunder or on the Company’s request at any time.

 

(f)    Acknowledgment
by the Employee. The Employee acknowledges and confirms that: (i) the
restrictive covenants contained in this Section 1.6 are reasonably
necessary to protect the legitimate business interests of the Company; (ii) the
restrictions contained in this  Section 1.6
(including, without limitation, the length of the term of the provisions of
this  Section 1.6) are not
overbroad, overlong, or unfair and are not the result of overreaching, duress,
or coercion of any kind; and (iii) the Employee’s entry into this
Agreement and, specifically this Section 1.6, is a material inducement and
required condition to the Company’s entry into this Agreement. The Employee
further acknowledges and confirms that his full and faithful observance of each
of the covenants contained in this Section 1.6 will not cause him any
undue hardship, financial or otherwise, and that enforcement of each of the
covenants contained herein will not impair his ability to obtain employment
commensurate with his abilities and on terms fully acceptable to him or
otherwise to obtain income required for the comfortable support of his family
and the satisfaction of the needs of his creditors.  The Employee acknowledges and confirms that
his special knowledge of the business of the Company is such as would cause the
Company serious injury or loss if he were to use such ability and knowledge to
the benefit of a competitor or were to compete with the Company in violation of
the terms of this Section 1.6. The Employee further acknowledges that the
restrictions contained in this Section 1.6 are intended to be, and shall
be, for the benefit of and shall be enforceable by, the Company’s successors
and assigns.

 

(g)   Reformation
by Court. In the event that a court of competent jurisdiction
shall determine that any provision of this Section 1.6 is invalid or more
restrictive than permitted under the governing law of such jurisdiction, then
only as to enforcement of this Section 1.6 within the jurisdiction of such
court, such provision shall be interpreted and enforced as if it provided for
the maximum restriction permitted under such governing law.

 

(h)   Survival. The provisions
of this Section 1.6 shall survive the termination of this Agreement.

 

(i)    Injunction. It is
recognized and hereby acknowledged by the parties hereto that a breach by the
Employee of any of the covenants contained in this Section 1.6 will cause
irreparable harm and damage to the Company, the monetary amount of which may be
virtually impossible to ascertain.  As a
result, the Employee recognizes and hereby acknowledges that the Company shall
be entitled to an injunction from any court of competent jurisdiction enjoining
and restraining any violation of any or all of the covenants contained in this Section 1.6
by the Employee or any of his Affiliates, associates, partners or agents,
either directly or indirectly, and that such right to injunction shall be
cumulative and in addition to whatever other remedies the Company may possess.

 

(j)    Termination
by the Company without Cause, by the Employee for Good Reason. The
provisions of Sections 1.6(a) and (c) shall not apply to the Employee
in the event of (a) the termination of the Employee’s employment by the
Company without Cause or (b) the termination of the Employee’s employment
by the Employee for Good Reason.

 

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1.7          Definitions.  The following capitalized terms used herein
shall have the following meanings:

 

“Affiliate” shall mean, with respect to any
Person, any other Person, directly or indirectly, controlling, controlled by or
under common control with such Person.

 

“Agreement”
shall mean this Agreement, as amended from time to time.

 

“Annual Salary” shall have the meaning
specified in Section 1.2(a).

 

“Annual Bonus”
shall have the meaning specified in Section 1.2(b).

 

“Board”  shall
mean the Board of Directors of the Company.

 

“Bonus Targets” shall
have the meaning specified in Section 1.2(b).

 

“Cause” shall mean the Employee’s (a) willful
misconduct which is materially detrimental to the
Company and which continues for 30 days after notice
thereof from the Board, (b) breach of fiduciary duty involving personal
profit, (c) intentional failure to perform stated duties which is materially detrimental to the Company
and which continues for 30 days after notice thereof from the Board, (d) conviction
or please of nolo contendere for a felony, or (e) material
breach of the Agreement.

 

“Change of Control” shall mean the
satisfaction of any one or more of the following conditions (and the “Change of Control”
shall be deemed to have occurred as of the first day that any one or more of
the following conditions shall have been satisfied):

 

                (a)           any person (as such term is used in
paragraphs 13(d) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange
Act”) (hereinafter in this definition, “Person”)), other than
Pilot Group LP (the “Partnership”),
or an Affiliate of the Partnership, becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company or the Company’s parent company, representing more than 50% of
the combined voting power of the Company’s or such parent company’s then
outstanding securities;

 

                (b)           the Company’s members or the members
of its parent company approve a merger, consolidation or other business
combination (a “Business
Combination”), other than a Business Combination in which the
holders of the equity securities of the Company or its parent company
immediately prior to the Business Combination have substantially the same
proportionate ownership of the equity securities of the applicable surviving
company immediately after the Business Combination;

 

                (c)           the Company’s members or the members
of its parent company approve either (i) an agreement for the sale or
disposition of all or substantially all of the Company’s assets or the assets
of its parent company to any entity that is not an Affiliate of the Company, or
(ii) a plan of complete liquidation of the Company or its parent company;
or

 

 

9

 

                (d)           the persons who were members of the
Board immediately before a merger, consolidation or contested election, or
before any combination of such transactions, cease to constitute a majority of
the members of the Board as a result of such transaction or transactions.

 

“Code” shall have the meaning of the Internal
Revenue Code of 1986, as it may be amended from time to time.

 

“Company” shall have the meaning specified in
the introductory paragraph hereof; provided
that, (i) “Company” shall include any successor to the Company to the
extent provided under Section 2.6 and (ii) for purposes of Section 1.7,
the term “Company” also shall include any existing or future subsidiaries of
the Company that are operating during any of the time periods described in Section 1.7
and any other entities that directly or indirectly, through one or more
intermediaries, control, are controlled by or are under common control with the
Company during the periods described in Section 1.7.

 

“Company’s Business” shall mean the business
of owning and operating broadcast television stations in any markets in which
the Company has station assets.

 

“Confidential Information” shall mean any
information belonging to or licensed to the Company, regardless of form, other
than Trade Secrets, which is valuable to the Company and not generally known to
competitors of the Company, including, without limitation, all online research
and marketing data and other analytic data based upon or derived from such
online research and marketing data.

 

“Good Reason” shall mean any of the following
events, which has not been either consented to in advance by the Employee in
writing or cured by the Company within a reasonable period of time, not to
exceed 30 days, after the Employee provides written notice within 60 days of
the initial existence of one or more of the following events:  (i) the requirement that the Employee’s
principal employee function be performed more than 50 miles from the Employee’s
primary office as of the Effective Date hereof; (ii) a material reduction
in the Employee’s Annual Salary as the same may be increased from time to time;
(iii) a material breach of the Agreement by the Company; (iv) a
material diminution or reduction in the Employee’s responsibilities, duties or
authority, including reporting responsibilities in connection with his
employment with the Company; (v) the
Company requires the Employee to take any action which would violate any
federal or state law and such violation would materially and demonstrably
damage or the Employee; or (vi) a material breach of the Parent’s
operating agreement by the Parent or the Parent’s managing member with respect
to any obligation or duty owed to the Employee which breach has a material
adverse effect on the Employee. Good Reason shall not exist unless the Employee
separates from service within 180 days following the initial existence of the
condition or conditions that the Company has failed to cure.

 

 “Permanent Incapacity”
shall mean a physical or mental illness or injury of a permanent nature which
prevents the Employee from performing his essential duties and other services
for which he is employed by the Company under this Agreement for a period of 90
or more continuous days or 90 or more non-continuous days within a 120 day
period, as verified and confirmed by written medical evidence reasonably
satisfactory to the Board.

 

 

10

 

“Person” shall mean any individual,
corporation (including any non-profit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, estate,
trust, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization or entity.

 

“Proprietary Information”
shall mean the Trade Secrets, the Confidential Information and all physical
embodiments thereof, as they may exist from time to time.

 

“Restricted Period”
shall mean the period beginning on the Date hereof and ending on the eighteen
month anniversary of the later of (i) the expiration or the termination,
as the case may be, of the Term or (ii) termination of the Employee’s
employment with the Company.

 

“Term” shall have the
meaning specified in Section 1.1(a).

 

“Trade Secrets” means
information belonging to or licensed to the Company, regardless of form,
including, but not limited to, any technical or non-technical data, formula,
pattern, compilation, program, device, method, technique, drawing, financial,
marketing or other business plan, lists of actual or potential customers or
suppliers, or any other information similar to any of the foregoing, which
derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other persons who can
derive economic value from its disclosure or use.

 

“Work Product” means
all copyrights, patents, trade secrets, or other intellectual property rights
associated with any ideas, concepts, techniques, inventions, processes, or
works of authorship developed or created by the Employee during the course of
performing work for the Company or its clients and relating to the Company’s
business.

 

ARTICLE
2.

MISCELLANEOUS PROVISIONS

 

2.1        Further Assurances.  Each
of the parties hereto shall execute and cause to be delivered to the other
party hereto such instruments and other documents, and shall take such other
actions, as such other party may reasonably request for the purpose of carrying
out or evidencing any of the transactions contemplated by this Agreement.

 

2.2        Notices.  All notices
hereunder shall be in writing and shall be sent by (a) certified or
registered mail, return receipt requested, (b) national prepaid overnight
delivery service, (c) facsimile transmission (following with hard copies
to be sent by prepaid overnight delivery service) or (d) personal delivery
with receipt acknowledged in writing. 
All notices shall be addressed to the parties hereto at their respective
addresses as set forth below (except that any party hereto may from time to
time upon fifteen days’ written notice change his address for that purpose),
and shall be effective on the date when actually received or refused by the
party to whom the same is directed (except to the extent sent by registered or
certified mail, in which event such notice shall be deemed given on the third
day after mailing).

 

If to the Company:

 

 

11

 

Barrington Broadcasting Group LLC

c/o Pilot Group LP

75 Rockefeller center — 23rd Floor

New York, NY 10019

Attention: 
Paul M. McNicol

Facsimile No.:  212-486-2896

 

with copy to (which copy shall not constitute
notice):

 

Paul, Hastings, Janofsky &
Walker LLP

75 East 55th Street

New York, NY 10022

Attention.:  Jeffrey J. Pellegrino, Esq.

Facsimile No.:  212-319-4090

 

If to the Employee:

 

Mr. K. James Yager

31 Riderwood Road

North Barrington, IL 60010

 

with a copy to (which copy
shall not constitute notice):

 

David Klintworth

RSM McGladrey

501 Seventh Street, 6th
Floor

Rockford, IL  61104

Facsimile No.: 815-987-5209

 

2.3        Headings.  The
underlined headings contained in this Agreement are for convenience of
reference only, shall not be deemed to be a part of this Agreement and shall
not be referred to in connection with the construction or interpretation of
this Agreement.

 

2.4        Counterparts.  This
Agreement may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement.

 

2.5        Governing Law; Jurisdiction and Venue.

 

(a)   This Agreement
shall be construed in accordance with, and governed in all respects by, the
internal laws of the State of Delaware (without giving effect to principles of
conflicts of laws), except to the extent preempted by federal law.

 

(b)   Any legal
action or other legal proceeding relating to this Agreement or the enforcement
of any provision of this Agreement shall be brought or otherwise commenced
exclusively in any state or federal court located in the State of
Delaware.  Each party hereto:

 

 

12

 

(i)    expressly and irrevocably
consents and submits to the jurisdiction of each state and federal court
located in the State of Delaware (and each appellate court located in the State
of Delaware), in connection with any Legal Proceeding;

 

(ii)   agrees that
service of any process, summons, notice or document by U.S. mail addressed to
such party at the address set forth in Section 2.3 shall constitute
effective service of such process, summons, notice or document for purposes of
any such Legal Proceeding;

 

(iii) agrees that
each state and federal court located in the State of Delaware, shall be deemed
to be a convenient forum; and

 

(iv)  agrees not to
assert (by way of motion, as a defense or otherwise), in any such Legal
Proceeding commenced in any state or federal court located in the State of
Delaware, any claim by any party hereto that it is not subject personally to
the jurisdiction of such court, that such Legal Proceeding has been brought in
an inconvenient forum, that the venue of such proceeding is improper or that
this Agreement or the subject matter of this Agreement may not be enforced in
or by such court.

 

2.6        Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their successors and assigns (if
any).  The Employee shall not assign this
Agreement or any of his rights or obligations hereunder (by operation of law or
otherwise) to any Person without the consent of the Company.

 

2.7        Remedies Cumulative; Specific Performance.  The rights and remedies of the parties hereto
shall be cumulative (and not alternative). 
The parties to this Agreement agree that, in the event of any breach or
threatened breach by any party to this Agreement of any covenant, obligation or
other provision set forth in this Agreement for the benefit of any other party
to this Agreement, such other party shall be entitled (in addition to any other
remedy that may be available to it) to (a) a decree or order of specific
performance or mandamus to enforce the observance and performance of such covenant,
obligation or other provision, and (b) an injunction restraining such
breach or threatened breach.

 

2.8        Waiver.  No failure
on the part of any Person to exercise any power, right, privilege or remedy
under this Agreement, and no delay on the part of any Person in exercising any
power, right, privilege or remedy under this Agreement, shall operate as a
waiver of such power, right, privilege or remedy and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other
or further exercise thereof or of any other power, right, privilege or
remedy.  No Person shall be deemed to
have waived any claim arising out of this Agreement, or any power, right,
privilege or remedy under this Agreement, unless the waiver of such claim,
power, right, privilege or remedy is expressly set forth in a written
instrument duly executed and delivered on behalf of such Person; and any such
waiver shall not be applicable or have any effect except in the specific
instance in which it is given.

 

2.9        Code Section 409A
Compliance.  To the extent
amounts or benefits that become payable under this Agreement on account of the
Employee’s termination of employment (other than by reason of the Employee’s
death) constitute a distribution under “nonqualified 

 

 

13

 

deferred
compensation plan” within the meaning of Code Section 409A (“Deferred Compensation”), the
Employee’s termination of employment shall be deemed to occur on the date that
the Employee incurs a “separation from service” with the Company within the
meaning of Treasury Regulation Section 1.409A-1(h).  If at the time of the Employee’s separation
from service, the Employee is a “specified employee” (within the meaning of
Code Section 409A and Treasury Regulation Section 1.409A-3(i)(2)),
the payment of such Deferred Compensation shall commence on the first business
day of the seventh month following Employee’s separation from service and the
Company shall then pay the Employee, without interest, all such Deferred
Compensation that would have otherwise been paid under this Agreement during
the first six months following the Employee’s separation from service had the
Employee not been a specified employee. 
Thereafter, the Company shall pay Employee any remaining unpaid Deferred
Compensation in accordance with this Agreement as if there had not been a
six-month delay imposed by this paragraph.

 

2.10     Amendments.  This
Agreement may not be amended, modified, altered or supplemented other than by
means of a written instrument duly executed and delivered on behalf of all of
the parties hereto.

 

2.11     Severability.  In the event
that any provision of this Agreement, or the application of any such provision
to any Person or set of circumstances, shall be determined to be invalid,
unlawful, void or unenforceable to any extent, the remainder of this Agreement,
and the application of such provision to Persons or circumstances other than
those as to which it is determined to be invalid, unlawful, void or unenforceable,
shall not be impaired or otherwise affected and shall continue to be valid and
enforceable to the fullest extent permitted by law.

 

2.12     Parties in Interest.  Except as provided herein, none of the
provisions of this Agreement are intended to provide any rights or remedies to
any Person other than the parties hereto and their respective successors and
assigns (if any).

 

2.13     Entire Agreement.  This
Agreement sets forth the entire understanding of the parties hereto relating to
the subject matter hereof and supersedes all prior agreements and
understandings among or between the parties relating to the subject matter
hereof.

 

2.14     Construction.

 

(a)   For purposes of
this Agreement, whenever the context requires: the singular number shall
include the plural, and vice versa; the masculine gender shall include the
feminine and neuter genders; the feminine gender shall include the masculine
and neuter genders; and the neuter gender shall include the masculine and
feminine genders.

 

(b)   The parties
hereto agree that any rule of construction to the effect that ambiguities
are to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Agreement.

 

(c)   As used in this
Agreement, the words “include” and “including,” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be
followed by the words “without limitation.”

 

 

14

 

(d)   Except as
otherwise indicated, all references in this Agreement to “Sections” and “Exhibits”
are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.

 

(e)   All fractions,
quotients and the product of any other computations contemplated in this
Agreement shall be rounded to the fourth decimal point.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

15

 

The parties hereto have caused this Agreement
to be executed and delivered as of the date first set forth above.

 

 

	
  THE COMPANY:

  	
   

  
	
   

  	
   

  
	
  BARRINGTON
  BROADCASTING GROUP LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Paul M. McNicol

  	
   

  
	
   

  	
  Name:
  Paul M. McNicol

  	
   

  
	
   

  	
  Title:
  Senior Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE EMPLOYEE:

  	
   

  
	
   

  	
   

  
	
  /s/
  K. James Yager

  	
   

  
	
   

  	
  K.
  JAMES YAGER

  	
   

  
					

 

 

 

 

EXHIBIT A

 

2008 BARRINGTON BONUS PLAN

 

CALCULATION
OF BONUS AMOUNTS

 

The Employee shall be entitled to a cash bonus based upon the
Barrington  Performance, but the Board,
in its discretion, will have the authority to increase the amount of the bonus
earned.  The bonus will be paid within 60
days of the end of the 2008 fiscal year. 
The Employee shall be entitled to receive only the non-cumulative Bonus
Amount specified below corresponding to the Barrington  Performance achieved.

 

The 2008 bonus payment, if any, shall be calculated as follows:

 

	
  Barrington
  Performance

  	
   

  	
  Bonus
  Amount

  
	
   

  	
   

  	
   

  
	
  Barrington Broadcast Cash Flow of less than $____________.

  	
   

  	
  $0

  
	
   

  	
   

  	
   

  
	
  Barrington Broadcast Cash Flow greater than $___________and less than
  $________.

  	
   

  	
  $_______- $_______, prorated depending upon the achievement
  percentage-wise within the range

  
	
   

  	
   

  	
   

  
	
  Barrington Broadcast Cash Flow greater than $___________and less than
  $________.

  	
   

  	
  $_______- $_______, prorated depending upon the achievement
  percentage-wise within the range

  
	
   

  	
   

  	
   

  
	
  Barrington Broadcast Cash Flow greater than $___________and less than
  $________.

  	
   

  	
  $_______- $_______, prorated depending upon the achievement
  percentage-wise within the range

  

 

Definitions.  The following capitalized
terms shall have the following meanings:

 

“Barrington  Performance” means
the Barrington Broadcast Cash Flow relative to the Barrington Broadcast Cash
Flow Target for the applicable period.

 

“Barrington Broadcast  Cash Flow” means
EBITDA (as defined in the Credit Agreement, dated August 11, 2006, among
the Company, Bank of America, Wachovia Bank and CIT, as amended from time to
time) plus headquarters or corporate expenses for the respective period for
which the Barrington Broadcasting Cash Flow is being measured.Exhibit 10.20

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement  (this “Agreement”) is made and entered into as
of January 1, 2008, by and between Barrington Broadcasting Group LLC, a
Delaware limited liability company (together with its wholly-owned operating
subsidiaries being referred to herein collectively as the “Company”), and Chris
Cornelius, an individual (the “Employee”).

 

RECITALS

 

WHEREAS, the Employee
currently serves as the Chief Operating Officer of the Company and is directly
responsible for the success, operations, customer relationships, and business
strategy of the Company.

 

WHEREAS, the parties
recognize and agree that the terms and conditions set forth in this Agreement,
including the restrictive covenants set forth in Section 1.6 below, are
critical to the successful operation of the Company.

 

WHEREAS, the Company
desires to continue the employment of the Employee as its Chief Operating
Officer, and the Employee desires to accept this offer of employment, effective
as of the Effective Date.

 

WHEREAS, the Company
and the Employee have determined that the terms and conditions of this
Agreement are reasonable and in their mutual best interests and accordingly
desire to enter into this Agreement in order to provide for the terms and
conditions upon which the Employee shall be employed by the Company.

 

NOW
THEREFORE, in consideration of the foregoing and the
respective covenants, agreements and representations and warranties set forth
herein, the parties to this Agreement, intending to be legally bound, agree as
follows:

 

ARTICLE 1.

TERMS OF EMPLOYMENT

 

1.1          Employment
and Acceptance.

 

(a)   Employment
and Acceptance.  On and
subject to the terms and conditions of this Agreement, the Company shall employ
the Employee and the Employee hereby accepts such employment. The term of the
Employee’s employment pursuant to this Agreement (the “Term”) shall commence
on January 1, 2008 (the “Effective Date”) and shall have a term of three
years, unless sooner terminated as hereinafter provided.  The Term shall be extended only through the
execution, by both parties, of a written amendment to this Agreement, in which
case references to the Term shall refer to the Term as so amended.

 

 

1

 

(b)   Responsibilities
and Duties. The Employee shall serve as the Chief Operating
Officer of the Company during the Term, subject to any change or changes in
title on which the parties shall mutually agree.  The Employee’s duties as Chief Operating
Officer shall consist of such duties and responsibilities as are consistent
with the Employee’s position, including but not be limited to, (i) continuing
as the tactical leader of the Company’s Business, (ii) supervising all
management personnel of the Company, (iii) overseeing the continuation and
development of the Company’s stations and business affiliations, and (iv) supervising
the preparation of annual budgets and business plans. The Employee will also
serve on the Company’s Board of Directors throughout the Term.

 

(c)   Authority. The Employee
shall have the authority perform such acts as are necessary or advisable to
fulfill the duties as set forth in Section 1.1(b) hereof and shall
have such additional powers at the Company as may from time to time be
prescribed by the Chief Executive Officer, Robert B. Sherman or such other
person as the Board may designate. 
Notwithstanding anything herein to the contrary, the Employee shall not
hire or fire any executive officer reporting to Employee without the approval
of the Board and the Chief Executive Officer.

 

(d)   Reporting. The Employee
shall report directly to the Chief Executive Officer, or such other person or
persons as may be designated by the Board.

 

(e)   Performance
of Duties. With respect to his duties hereunder, at all times,
the Employee shall be subject to the instructions, control, and direction of
the Board, and act in accordance with the Company’s Certificate of
Incorporation, Bylaws and other governing policies, rules and regulations,
except to the extent that the Employee is aware that such documents conflict
with applicable law. The Employee shall devote his business time, attention and
ability to serving the Company on an exclusive and full-time basis as
aforesaid, consistent with the Employee’s past practice and as the Board may
reasonably require, except during holidays, vacations, illness or accident, or
as may be otherwise approved from time to time by the Board in writing.  Notwithstanding the above and upon written
approval by Robert B. Sherman, or such other person as the Board may designate,
and the Chief Executive Officer, the Employee shall be permitted to accept
positions on the board of directors of outside companies and will be permitted
to attend to the requisite duties of such positions during working hours.  Set forth on Schedule A hereto is a
list of any such appointments or arrangements which are in effect on the date
hereof.  The Employee shall also promote,
by entertainment or otherwise, as and to the extent permitted by law, the
business of the Company.

 

1.2          Compensation.

 

(a)   Annual
Salary. The Employee shall receive an annual salary of for each year of the
Term (the “Annual Salary”).
For 2008, the Annual Salary shall be $375,000. The Annual Salary shall be
payable on a bi-weekly basis or such other payment schedule as used by the
Company for its senior level employees from time to time, less such deductions
as shall be required to be withheld by applicable law and regulation and
consistent with the Company’s practices. 
The Annual Salary payable to the Employee will be reviewed annually by
the Board.

 

 

2

 

(b)   Annual
Bonuses. For each full fiscal year during the Term, the
Employee shall be eligible to receive an annual bonus (the “Annual Bonus”) in such amount as
shall be determined by the Board based principally on the extent to which the
Company meets the applicable financial targets (“Bonus Targets”) established by the Board from time to time.  The Employee shall consult with the Board to
develop such Bonus Targets by no later than January 15th of each fiscal
year for the current fiscal year; provided, however, that with respect to the
Bonus Targets for fiscal year 2008, the Employee shall consult with the Board
and the Board shall deliver to the Employee a copy of the Company’s 2008 fiscal
year bonus plan which shall be applicable to the Employee, which bonus plan
shall be in the form of Exhibit A hereto.  Bonus plans for future fiscal years,
including the bonus amounts and the methodology for determining such bonus
amounts, shall be substantially similar to the Company’s 2008 fiscal year bonus
plan.  All earned Annual Bonuses shall be
paid not later than 2 1⁄2 months following the end of the fiscal year to which
the Annual Bonus relates.

 

(c)           Expenses.  The Employee shall be reimbursed for all
ordinary and necessary out-of-pocket business expenses reasonably and actually
incurred or paid by the Employee in the performance of the Employee’s duties
during the Term in accordance with the Company’s policies upon presentation of
such expense statements or vouchers or such other supporting information as the
Company may require.  The Company may
revise such policies from time to time at its discretion. The Employee shall
also be reimbursed for $550 per month for automobile expenses and 100% of the
group insurance premium for health and dental insurance, all consistent with
past practice.  In no event shall the
Employee’s expenses be reimbursed after the end of the calendar year following
the calendar year in which the expenses were incurred by the Employee.  The Employee must submit all reimbursement
requests within 90 days after the expense is incurred.

 

1.3          Benefits.  The Employee shall be entitled to fully
participate in all benefit plans that are in place and available to senior
level employees of the Company from time to time, including, without
limitation, medical, dental, long-term disability and life insurance, subject
to the general eligibility, participation and other provisions set forth in
such plans.

 

1.4          Vacation.  During the Term, the Employee shall be
entitled to paid vacation time per calendar year consistent with past practice,
so long as such vacation time does not interfere with his ability to properly
perform his duties as Chief Operating Officer of the Company. Vacation time
does not accrue nor vest, nor is the amount allowed dependent on seniority.

 

1.5          Termination
of Employment.

 

(a)   Termination
for Cause.  The Company
may terminate the Employee’s employment at any time for Cause, without any
requirement of a notice period and without payment of any compensation of any
nature or kind (including, without limitation, by way of anticipated earnings,
damages or payment in lieu of notice). 
In the event of a for Cause termination, the Employee shall not be
entitled to any severance benefits or payments (other than those required under
subsection (g) hereof).

 

 

3

 

(b)   Permanent
Incapacity.  In the event
of the Permanent Incapacity of the Employee, his employment may thereupon be
terminated by the Company without payment of any severance of any nature or
kind (including, without limitation, by way of anticipated earnings, damages or
payment in lieu of notice); provided
that, in the event of the Employee’s termination pursuant to this subsection,
subject to Section 2.10 hereof, the Company shall pay or cause to be paid
to the Employee (i) the amounts prescribed by subsection (g) below
through the date of Permanent Incapacity), (ii) an amount equal to
Executive’s Annual Bonus for the year in which Permanent Incapacity occurs,
prorated for the partial fiscal year during which Executive worked and
calculated based upon the Company’s performance for the full fiscal year in
which the Permanent Incapacity occurs and (iii) the amounts specified in
any benefit and insurance plans applicable to the Employee as being payable in
the event of the permanent incapacity or disability of the Employee, such sums
to be paid in accordance with the provisions of those plans as then in effect.
Any prorated Annual Bonus amount (to the extent the Board determines that the
bonus targets have been achieved) payable under this subsection shall be paid
after calculation of the applicable bonus amount and paid in a lump sum cash
payment within 2 1⁄2 months following the end of the fiscal year in which the
Annual Bonus relates; provided that, if the Annual Bonus is subject to a
deferral election under a “nonqualified deferred compensation plan” within the
meaning of Code Section 409A, the Annual Bonus will be paid in accordance
with the terms of such plan.  Any right
of the Employee to payment pursuant to this subsection shall be contingent on
the Employee’s satisfaction of the release requirement in Section 1.5(i) upon
payment of the amounts set forth in this subsection. Upon payment of the
amounts set forth in this subsection, the Employee shall not be entitled to any
severance benefits or payments (other than those required under subsection (g) hereof).

 

(c)   Death.  If the Employee’s employment is terminated by
reason of the Employee’s death, the Employee’s beneficiaries or estate will be
entitled to receive and the Company shall pay or cause to be paid to them or
it, as the case may be, (i) the amounts prescribed by subsection (g) below
through the date of death, (ii) an amount equal to the Employee’s Annual
Bonus for the year in which death occurs, prorated for the partial fiscal year
during which the Employee worked and calculated based upon the Company’s
performance for the full fiscal year in which the Death occurs, and (iii) the
amounts specified in any benefit and insurance plans applicable to the Employee
as being payable in the event of the death of the Employee, such sums to be
paid in accordance with the provisions of those plans as then in effect.  Any prorated Annual Bonus amount payable
under this subsection shall be paid after calculation of the applicable bonus
amount (to the extent the Board determines that the Bonus Targets have been
achieved) and paid in a lump sum cash payment within 2 1⁄2 months following the
end of the fiscal year in which the Annual Bonus relates. Any right of the
Employee’s beneficiaries or estate to payment pursuant to this subsection shall
be contingent on the beneficiaries; or estate’s satisfaction of the release
requirement in Section 1.5(i).  Upon
payment of the amounts set forth in this subsection, the Employee’s
beneficiaries or estate shall not be entitled to any severance benefits or
payments (other than those required under subsection (g) hereof).

 

(d)   Termination
by Employee. The Employee may terminate his employment with the
Company upon giving 30 days’ written notice or such shorter period of notice as
the Company may accept.  If the Employee
resigns for Good Reason, the Employee shall receive the severance benefits
required under subsection (e) or (f) below, as the case may 

 

 

4

 

be.
If the Employee resigns for any reason not constituting Good Reason, the
Employee shall not be entitled to any severance benefits (other than those
required under subsection (g) hereof).

 

(e)   Termination
without Cause or by the Employee for Good Reason. If the Employee’s
employment with the Company is terminated by the Company without Cause or by
the Employee for Good Reason, the Employee shall be entitled to receive, a lump
sum payment equal to the greater of: (x) $375,000 or (y) an amount
equal to his then current Annual Salary.  The payment described in this subsection is
the only severance payment or payment in lieu of notice that the Employee will
be entitled to receive under this Agreement (other than payments due under
subsection (g) hereof) in the event of the termination of his employment
on the basis contemplated in this paragraph. 
Any payment pursuant to this subsection shall be paid, subject to Section 2.10
hereof, within 2 1⁄2 months of employment with the Company.  Any right of the Employee to payment pursuant
to this subsection shall be contingent on the Employee’s satisfaction of the
release requirement in Section 1.5(i).

 

(f)    Termination
without Cause or by the Employee for Good Reason after a Change of Control. Notwithstanding
any provision of Section 1.5(e) to the contrary and without
duplication of any payment made pursuant to Section 1.5(e), if, during the
one year period following a Change of Control, the Employee’s employment with
the Company is terminated by the Company without Cause or by the Employee for
Good Reason, the Company shall pay to the Employee, by way of lump sum payment
equal to the greater of: (x) $375,000 or (y) an amount equal to his
then current Annual Salary.  The payment described in this subsection is
the only severance payment or payment in lieu of notice that the Employee will
be entitled to receive under this Agreement (other than payments due under
subsection (g) hereof) in the event of the termination of his employment
on the basis contemplated in this paragraph. 
Any payment pursuant to this subsection shall be paid, subject to Section 2.10
hereof, within 2 1⁄2 months of employment with the Company.  Any right of the Employee to payment pursuant
to this subsection shall be contingent on the Employee’s satisfaction of the
release requirement in Section 1.5(i).

 

(g)   Earned
Salary and Un-reimbursed Expenses.  In the event that any portion of the Employee’s
Annual Salary has been earned but not paid or any reimbursable expenses have
been incurred by the Employee but not reimbursed, in each case to the date of
termination of his employment, such amounts shall be paid to the Employee
within 30 days following such date of termination.

 

(h)   Statutory
Deductions. All payments required to be made to the Employee,
his beneficiaries, or his estate under this Section shall be made net of
all deductions required to be withheld by applicable law and regulation.  The Employee shall be solely responsible for
the satisfaction of any taxes (including employment taxes imposed on employees
and taxes on nonqualified deferred compensation).  Although the Company intends and expects that
the Plan and its payments and benefits will not give rise to taxes imposed
under Code Section 409A, neither the Company nor its employees, directors,
or their agents shall have any obligation to hold the Employee harmless from
any or all of such taxes or associated interest or penalties.

 

 

5

 

(i)    Fair
and Reasonable, etc. The parties acknowledge and agree that the payment
provisions contained in this Section are fair and reasonable, and the
Employee acknowledges and agrees that such payments are inclusive of any notice
or pay in lieu of notice or vacation or severance pay to which he would
otherwise be entitled under statute, pursuant to common law or otherwise in the
event that his employment is terminated pursuant to or as contemplated in this Section 1.5.  The parties further agree that upon any
termination of the employment of the Employee as contemplated in this Section and
the payment to the Employee or his estate, as the case may be, of the amounts
contemplated therein, as well as any expenses which the Employee is entitled to
have reimbursed as contemplated above, the Employee shall:

 

(i)    have no action,
cause of action, claim or demand of any nature or kind whatsoever against the
Company or against any other person as a consequence of, in respect of or in
connection with this Agreement or such termination of the Employee’s
employment; and

 

(ii)   as a condition
of the right to receive benefits pursuant to this Section 1.5, the
Employee or his estate, as applicable, shall execute within 50 days of the
Employee’s termination of employment (and not revoke) a general release of all
claims in customary form.

 

(j)    Return
of Property. Upon any termination of the Employee’s employment by
the Employee or by the Company as contemplated above in this Section 1.5,
the Employee or the Employee’s estate shall at once deliver or cause to be
delivered to the Company all books, documents, effects, money, securities,
credit cards or other property belonging to the Company or for which the
Company is liable to others which are in the possession, charge, control or
custody of the Employee.

 

1.6          Restrictive
Covenants.

 

(a)   Non-competition. The Employee
recognizes and acknowledges that his services to the Company are of a special,
unique and extraordinary nature that cannot easily be duplicated.  Further, the Company has and will expend
substantial resources to promote such services and develop the Company’s
Proprietary Information.  Accordingly, in
order to protect the Company from unfair competition and to protect the Company’s
Proprietary Information, the Employee agrees that, at all times during the
Restricted Period, the Employee shall not, directly or indirectly (i) perform
or provide managerial or employee services on behalf of any Person which is engaged
in the ownership and /or operation of television stations  that directly or indirectly compete with the
Company’s Business within the television markets then operated by the Company;
or (ii) have any interest in any business that competes with the Company’s
Business; provided that this
provision shall not apply to the Employee’s ownership or acquisition, solely as
an investment, of securities of any issuer that is registered under Section 12(b) or
12(g) of the Securities Exchange Act of 1934, as amended, and that are
listed or admitted for trading on any United States national securities
exchange or that are quoted on the National Association of Securities Dealers
Automated Quotations System, or any similar system or automated dissemination
of quotations of securities prices in common use, so long as the Employee does
not control, acquire a controlling interest in or become a member of a group 

 

 

6

 

which
exercises direct or indirect control of, more than five percent of any class of
capital stock of such issuer.

 

(b)   Confidential
Information. The Employee recognizes and acknowledges that the
Proprietary Information is a valuable, special and unique asset of the Company’s
Business.  In order to obtain and/or
maintain access to the Proprietary Information, which Employee acknowledges is
essential to the performance of his duties under this Agreement, the Employee
agrees that, except with respect to those duties assigned to him by the
Company, the Employee: (i) shall hold in confidence all Proprietary
Information; (ii) shall not reproduce, use, distribute, disclose, or
otherwise misappropriate any Proprietary Information, in whole or in part; (iii) shall
take no action causing, or fail to take any action necessary to prevent
causing, any Proprietary Information to lose its character as Proprietary
Information; and (iv) shall not make use of any such Proprietary
Information for the Employee’s own purposes or for the benefit of any person,
business or legal entity (except the Company) under any circumstances; provided that the Employee may disclose
such Proprietary Information to the extent required by law; provided, further that, prior to any such
disclosure, (A) the Employee delivers to the Company written notice of
such proposed disclosure, together with an opinion of counsel regarding the
determination that such disclosure is required by law and (B) the Employee
provides an opportunity to contest such disclosure to the Company.  The provisions of this subsection will apply
to Trade Secrets for as long as the applicable information remains a Trade
Secret and to Confidential Information.

 

(c)   Nonsolicitation
of Employees and Customers. At all times during the
Restricted Period, the Employee shall not, directly or indirectly, for himself
or for any other Person: (i) solicit, recruit or attempt to solicit or
recruit any employee of the Company to leave the Company’s employment; or (ii) solicit
or attempt to solicit any of the actual or targeted prospective customers or
clients of the Company with whom the Employee had material contact or about
whom the Employee learned Confidential Information  on behalf of any Person in connection with any business that
competes with the Company’s Business.

 

(d)   Ownership
of Developments. All Work Product shall belong exclusively to the
Company and shall, to the extent possible, be considered a work made by the
Employee for hire for the Company within the meaning of Title 17 of the United
States Code.  To the extent the Work
Product may not be considered work made by the Employee for hire for the
Company, the Employee agrees to assign, and automatically assign at the time of
creation of the Work Product, without any requirement of further consideration,
any right, title, or interest the Employee may have in such Work Product.  Upon the request of the Company, the Employee
shall take such further actions, including execution and delivery of
instruments of conveyance, as may be appropriate to give full and proper effect
to such assignment.

 

(e)   Books
and Records. All books, records, and accounts relating in any
manner to the customers or clients of the Company, whether prepared by the
Employee or otherwise coming into the Employee’s possession, shall be the
exclusive property of the Company and shall be returned immediately to the
Company on termination of the Employee’s employment hereunder or on the Company’s
request at any time.

 

 

7

 

(f)    Acknowledgment
by the Employee. The Employee acknowledges and confirms that: (i) the
restrictive covenants contained in this Section 1.6 are reasonably
necessary to protect the legitimate business interests of the Company; (ii) the
restrictions contained in this Section 1.6 (including, without limitation,
the length of the term of the provisions of this  Section 1.6) are not overbroad,
overlong, or unfair and are not the result of overreaching, duress, or coercion
of any kind; and (iii) the Employee’s entry into this Agreement and,
specifically this Section 1.6, is a material inducement and required
condition to the Company’s entry into this Agreement. The Employee further
acknowledges and confirms that his full and faithful observance of each of the
covenants contained in this Section 1.6 will not cause him any undue
hardship, financial or otherwise, and that enforcement of each of the covenants
contained herein will not impair his ability to obtain employment commensurate
with his abilities and on terms fully acceptable to him or otherwise to obtain
income required for the comfortable support of his family and the satisfaction
of the needs of his creditors.  The
Employee acknowledges and confirms that his special knowledge of the business
of the Company is such as would cause the Company serious injury or loss if he
were to use such ability and knowledge to the benefit of a competitor or were
to compete with the Company in violation of the terms of this Section 1.6.
The Employee further acknowledges that the restrictions contained in this Section 1.6
are intended to be, and shall be, for the benefit of and shall be enforceable
by, the Company’s successors and assigns.

 

(g)   Reformation
by Court. In the event that a court of competent jurisdiction
shall determine that any provision of this Section 1.6 is invalid or more
restrictive than permitted under the governing law of such jurisdiction, then
only as to enforcement of this Section 1.6 within the jurisdiction of such
court, such provision shall be interpreted and enforced as if it provided for
the maximum restriction permitted under such governing law.

 

(h)   Survival. The provisions
of this Section 1.6 shall survive the termination of this Agreement.

 

(i)    Injunction. It is
recognized and hereby acknowledged by the parties hereto that a breach by the
Employee of any of the covenants contained in this Section 1.6 will cause
irreparable harm and damage to the Company, the monetary amount of which may be
virtually impossible to ascertain.  As a
result, the Employee recognizes and hereby acknowledges that the Company shall
be entitled to an injunction from any court of competent jurisdiction enjoining
and restraining any violation of any or all of the covenants contained in this Section 1.6
by the Employee or any of his Affiliates, associates, partners or agents,
either directly or indirectly, and that such right to injunction shall be
cumulative and in addition to whatever other remedies the Company may possess.

 

(j)    Termination
by the Company without Cause, by the Employee for Good Reason. The
provisions of Sections 1.6(a) and (c) shall not apply to the Employee
in the event of (a) the termination of the Employee’s employment by the
Company without Cause or (b) the termination of the Employee’s employment
by the Employee for Good Reason.

 

1.7          Definitions. 
The following capitalized terms used herein shall have the following
meanings:

 

8

 

“Affiliate”
shall mean, with respect to any Person, any other Person, directly or
indirectly, controlling, controlled by or under common control with such
Person.

 

“Agreement”
shall mean this Agreement, as amended from time to time.

 

“Annual Salary” shall have the meaning
specified in Section 1.2(a).

 

“Annual Bonus”
shall have the meaning specified in Section 1.2(b).

 

“Board”  shall
mean the Board of Directors of the Company.

 

“Bonus Targets” shall
have the meaning specified in Section 1.2(b).

 

“Cause” shall mean the Employee’s (a) willful
misconduct which is materially detrimental to the
Company and which continues for 30 days after notice
thereof from the Board, (b) breach of fiduciary duty involving personal
profit, (c) intentional failure to perform stated duties which is materially detrimental to the Company
and which continues for 30 days after notice thereof from the Board, (d) conviction
or please of nolo contendere for a felony, or (e) material
breach of the Agreement.

 

“Change of Control” shall mean the
satisfaction of any one or more of the following conditions (and the “Change of Control”
shall be deemed to have occurred as of the first day that any one or more of
the following conditions shall have been satisfied):

 

                (a)           any person (as such term is used in
paragraphs 13(d) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange
Act”) (hereinafter in this definition, “Person”)), other than
Pilot Group LP (the “Partnership”),
or an Affiliate of the Partnership, becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company or the Company’s parent company, representing more than 50% of
the combined voting power of the Company’s or such parent company’s then
outstanding securities;

 

                (b)           the Company’s members or the members
of its parent company approve a merger, consolidation or other business
combination (a “Business
Combination”), other than a Business Combination in which the
holders of the equity securities of the Company or its parent company
immediately prior to the Business Combination have substantially the same
proportionate ownership of the equity securities of the applicable surviving
company immediately after the Business Combination;

 

                (c)           the Company’s members or the members
of its parent company approve either (i) an agreement for the sale or
disposition of all or substantially all of the Company’s assets or the assets
of its parent company to any entity that is not an Affiliate of the Company, or
(ii) a plan of complete liquidation of the Company or its parent company;
or

 

                (d)           the persons who were members of the
Board immediately before a merger, consolidation or contested election, or
before any combination of such transactions, cease to constitute a majority of
the members of the Board as a result of such transaction or transactions.

 

9

 

“Code” shall have the meaning of the Internal
Revenue Code of 1986, as it may be amended from time to time.

 

“Company” shall have the meaning specified in
the introductory paragraph hereof; provided
that, (i) “Company” shall include any successor to the Company to the
extent provided under Section 2.6 and (ii) for purposes of Section 1.7,
the term “Company” also shall include any existing or future subsidiaries of
the Company that are operating during any of the time periods described in Section 1.7
and any other entities that directly or indirectly, through one or more
intermediaries, control, are controlled by or are under common control with the
Company during the periods described in Section 1.7.

 

“Company’s Business” shall mean the business
of owning and operating broadcast television stations in any markets in which
the Company has station assets.

 

“Confidential Information” shall mean any
information belonging to or licensed to the Company, regardless of form, other
than Trade Secrets, which is valuable to the Company and not generally known to
competitors of the Company, including, without limitation, all online research
and marketing data and other analytic data based upon or derived from such
online research and marketing data.

 

“Good Reason” shall mean any of the following
events, which has not been either consented to in advance by the Employee in
writing or cured by the Company within a reasonable period of time, not to
exceed 30 days, after the Employee provides written notice within 60 days of
the initial existence of one or more of the following events:  (i) the requirement that the Employee’s
principal employee function be performed more than 50 miles from the Employee’s
primary office as of the Effective Date hereof; (ii) a material reduction
in the Employee’s Annual Salary as the same may be increased from time to time;
(iii) a material breach of the Agreement by the Company; (iv) a
material diminution or reduction in the Employee’s responsibilities, duties or
authority, including reporting responsibilities in connection with his
employment with the Company; (v) the
Company requires the Employee to take any action which would violate any
federal or state law and such violation would materially and demonstrably
damage or the Employee; or (vi) a material breach of the Parent’s
operating agreement by the Parent or the Parent’s managing member with respect
to any obligation or duty owed to the Employee which breach has a material
adverse effect on the Employee. Good Reason shall not exist unless the Employee
separates from service within 180 days following the initial existence of the
condition or conditions that the Company has failed to cure.

 

“Permanent Incapacity” shall mean a physical
or mental illness or injury of a permanent nature which prevents the Employee
from performing his essential duties and other services for which he is
employed by the Company under this Agreement for a period of 90 or more
continuous days or 90 or more non-continuous days within a 120 day period, as
verified and confirmed by written medical evidence reasonably satisfactory to
the Board.

 

“Person” shall mean any individual,
corporation (including any non-profit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, estate,
trust, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization or entity.

 

10

 

“Proprietary Information”
shall mean the Trade Secrets, the Confidential Information and all physical
embodiments thereof, as they may exist from time to time.

 

“Restricted Period”
shall mean the period beginning on the Date hereof and ending on the eighteen
month anniversary of the later of (i) the expiration or the termination,
as the case may be, of the Term or (ii) termination of the Employee’s
employment with the Company.

 

“Term” shall have the
meaning specified in Section 1.1(a).

 

“Trade Secrets” means
information belonging to or licensed to the Company, regardless of form,
including, but not limited to, any technical or non-technical data, formula,
pattern, compilation, program, device, method, technique, drawing, financial,
marketing or other business plan, lists of actual or potential customers or
suppliers, or any other information similar to any of the foregoing, which
derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other persons who can
derive economic value from its disclosure or use.

 

“Work Product” means
all copyrights, patents, trade secrets, or other intellectual property rights
associated with any ideas, concepts, techniques, inventions, processes, or
works of authorship developed or created by the Employee during the course of
performing work for the Company or its clients and relating to the Company’s
business.

 

ARTICLE
2.

MISCELLANEOUS PROVISIONS

 

2.1          Further Assurances.  Each of the parties hereto shall execute and
cause to be delivered to the other party hereto such instruments and other
documents, and shall take such other actions, as such other party may
reasonably request for the purpose of carrying out or evidencing any of the
transactions contemplated by this Agreement.

 

2.2          Notices.  All notices hereunder shall
be in writing and shall be sent by (a) certified or registered mail,
return receipt requested, (b) national prepaid overnight delivery service,
(c) facsimile transmission (following with hard copies to be sent by
prepaid overnight delivery service) or (d) personal delivery with receipt
acknowledged in writing.  All notices
shall be addressed to the parties hereto at their respective addresses as set
forth below (except that any party hereto may from time to time upon fifteen
days’ written notice change his address for that purpose), and shall be
effective on the date when actually received or refused by the party to whom
the same is directed (except to the extent sent by registered or certified
mail, in which event such notice shall be deemed given on the third day after
mailing).

 

If to the Company:

 

Barrington Broadcasting Group LLC

c/o Pilot Group LP

75 Rockefeller center — 23rd Floor

New York, NY 10019

Attention: 
Paul M. McNicol

Facsimile No.:  212-486-2896

 

11

 

with copy to (which copy shall not constitute
notice):

 

Paul, Hastings, Janofsky &
Walker LLP

75 East 55th Street

New York, NY 10022

Attention.:  Jeffrey J. Pellegrino, Esq.

Facsimile No.:  212-319-4090

 

If to the Employee:

 

Mr. Chris Cornelius

1253 Melrose Ave. Unit 1W

Chicago, IL 60657

 

2.3          Headings.  The underlined headings contained in this
Agreement are for convenience of reference only, shall not be deemed to be a
part of this Agreement and shall not be referred to in connection with the
construction or interpretation of this Agreement.

 

2.4          Counterparts.  This Agreement may be executed in several
counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one agreement.

 

2.5          Governing
Law; Jurisdiction and Venue.

 

(a)   This Agreement
shall be construed in accordance with, and governed in all respects by, the
internal laws of the State of Delaware (without giving effect to principles of
conflicts of laws), except to the extent preempted by federal law.

 

(b)   Any legal
action or other legal proceeding relating to this Agreement or the enforcement
of any provision of this Agreement shall be brought or otherwise commenced exclusively
in any state or federal court located in the State of Delaware.  Each party hereto:

 

(i)    expressly and
irrevocably consents and submits to the jurisdiction of each state and federal
court located in the State of Delaware (and each appellate court located in the
State of Delaware), in connection with any Legal Proceeding;

 

(ii)   agrees that
service of any process, summons, notice or document by U.S. mail addressed to
such party at the address set forth in Section 2.3 shall constitute
effective service of such process, summons, notice or document for purposes of
any such Legal Proceeding;

 

(iii) agrees that
each state and federal court located in the State of Delaware, shall be deemed
to be a convenient forum; and

 

(iv)  agrees not to
assert (by way of motion, as a defense or otherwise), in any such Legal
Proceeding commenced in any state or federal court located in the State of
Delaware, any claim by any party hereto that it is not subject personally to
the jurisdiction of such court, that such Legal Proceeding has been brought in
an inconvenient 

 

12

 

forum,
that the venue of such proceeding is improper or that this Agreement or the
subject matter of this Agreement may not be enforced in or by such court.

 

2.6          Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their successors and assigns (if
any).  The Employee shall not assign this
Agreement or any of his rights or obligations hereunder (by operation of law or
otherwise) to any Person without the consent of the Company.

 

2.7          Remedies Cumulative;
Specific Performance.  The
rights and remedies of the parties hereto shall be cumulative (and not
alternative).  The parties to this
Agreement agree that, in the event of any breach or threatened breach by any
party to this Agreement of any covenant, obligation or other provision set
forth in this Agreement for the benefit of any other party to this Agreement,
such other party shall be entitled (in addition to any other remedy that may be
available to it) to (a) a decree or order of specific performance or
mandamus to enforce the observance and performance of such covenant, obligation
or other provision, and (b) an injunction restraining such breach or threatened
breach.

 

2.8          Waiver.  No failure on the part of any Person to
exercise any power, right, privilege or remedy under this Agreement, and no
delay on the part of any Person in exercising any power, right, privilege or
remedy under this Agreement, shall operate as a waiver of such power, right,
privilege or remedy and no single or partial exercise of any such power, right,
privilege or remedy shall preclude any other or further exercise thereof or of
any other power, right, privilege or remedy. 
No Person shall be deemed to have waived any claim arising out of this
Agreement, or any power, right, privilege or remedy under this Agreement,
unless the waiver of such claim, power, right, privilege or remedy is expressly
set forth in a written instrument duly executed and delivered on behalf of such
Person; and any such waiver shall not be applicable or have any effect except
in the specific instance in which it is given.

 

2.9          Code Section 409A Compliance.  To the extent amounts or
benefits that become payable under this Agreement on account of the Employee’s
termination of employment (other than by reason of the Employee’s death)
constitute a distribution under “nonqualified deferred compensation plan”
within the meaning of Code Section 409A (“Deferred
Compensation”), the Employee’s termination of employment shall
be deemed to occur on the date that the Employee incurs a “separation from
service” with the Company within the meaning of Treasury Regulation Section 1.409A-1(h).  If at the time of the Employee’s separation
from service, the Employee is a “specified employee” (within the meaning of
Code Section 409A and Treasury Regulation Section 1.409A-3(i)(2)),
the payment of such Deferred Compensation shall commence on the first business
day of the seventh month following Employee’s separation from service and the
Company shall then pay the Employee, without interest, all such Deferred
Compensation that would have otherwise been paid under this Agreement during
the first six months following the Employee’s separation from service had the
Employee not been a specified employee. 
Thereafter, the Company shall pay Employee any remaining unpaid Deferred
Compensation in accordance with this Agreement as if there had not been a six-month
delay imposed by this paragraph.

 

13

 

2.10        Amendments.  This Agreement may not be amended, modified,
altered or supplemented other than by means of a written instrument duly
executed and delivered on behalf of all of the parties hereto.

 

2.11        Severability.  In the event that any provision of this
Agreement, or the application of any such provision to any Person or set of
circumstances, shall be determined to be invalid, unlawful, void or
unenforceable to any extent, the remainder of this Agreement, and the
application of such provision to Persons or circumstances other than those as
to which it is determined to be invalid, unlawful, void or unenforceable, shall
not be impaired or otherwise affected and shall continue to be valid and enforceable
to the fullest extent permitted by law.

 

2.12        Parties in
Interest.  Except as
provided herein, none of the provisions of this Agreement are intended to
provide any rights or remedies to any Person other than the parties hereto and
their respective successors and assigns (if any).

 

2.13        Entire
Agreement.  This
Agreement sets forth the entire understanding of the parties hereto relating to
the subject matter hereof and supersedes all prior agreements and
understandings among or between the parties relating to the subject matter
hereof.

 

2.14        Construction.

 

(a)   For purposes of
this Agreement, whenever the context requires: the singular number shall
include the plural, and vice versa; the masculine gender shall include the
feminine and neuter genders; the feminine gender shall include the masculine
and neuter genders; and the neuter gender shall include the masculine and
feminine genders.

 

(b)   The parties
hereto agree that any rule of construction to the effect that ambiguities
are to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Agreement.

 

(c)   As used in this
Agreement, the words “include” and “including,” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be
followed by the words “without limitation.”

 

(d)   Except as
otherwise indicated, all references in this Agreement to “Sections” and “Exhibits”
are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.

 

(e)   All fractions, quotients
and the product of any other computations contemplated in this Agreement shall
be rounded to the fourth decimal point.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

14

 

The parties hereto have caused this Agreement
to be executed and delivered as of the date first set forth above.

 

 

	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  BARRINGTON
  BROADCASTING GROUP LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  K. James Yager

  	
   

  
	
   

  	
   

  	
  Name:

  	
  K.
  James Yager

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Chris Cornelius

  	
   

  
	
   

  	
  CHRIS
  CORNELIUS

  
									

 

 

 

 

EXHIBIT A

 

2008 BARRINGTON BONUS PLAN

 

CALCULATION
OF BONUS AMOUNTS

 

The Employee shall be entitled to a cash bonus based upon the
Barrington  Performance, but the Board,
in its discretion, will have the authority to increase the amount of the bonus
earned.  The bonus will be paid within 60
days of the end of the 2008 fiscal year. 
The Employee shall be entitled to receive only the non-cumulative Bonus
Amount specified below corresponding to the Barrington  Performance achieved.

 

The 2008 bonus payment, if any, shall be calculated as follows:

 

	
  Barrington Performance

  	
   

  	
  Bonus Amount

  	
   

  
	
  Barrington
  Broadcast Cash Flow of less than $____________.

  	
   

  	
  $0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Barrington
  Broadcast Cash Flow greater than $___________ and less than $________.

  	
   

  	
  $_______
  - $_______, prorated depending upon the achievement percentage-wise within
  the range

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Barrington
  Broadcast Cash Flow greater than $___________ and less than $________.

  	
   

  	
  $_______
  - $_______, prorated depending upon the achievement percentage-wise within
  the range

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Barrington
  Broadcast Cash Flow greater than $___________ and less than $___________ .

   

  	
   

  	
  $_______
  - $_______, prorated depending upon the achievement percentage-wise within
  the range

  	
   

  

 

 

Definitions.  The following capitalized
terms shall have the following meanings:

 

“Barrington  Performance” means
the Barrington Broadcast Cash Flow relative to the Barrington Broadcast Cash
Flow Target for the applicable period.

 

“Barrington Broadcast  Cash Flow” means EBITDA
(as defined in the Credit Agreement, dated August 11, 2006, among the
Company, Bank of America, Wachovia Bank and CIT, as amended from time to time)
plus headquarters or corporate expenses for the respective period for which the
Barrington Broadcasting Cash Flow is being measured.

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