Document:

exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (“Agreement”) is made and entered into as
of July 1, 2005 by and among LIN TV Corp., a Delaware corporation and LIN Television Corporation, a
Delaware corporation (collectively “LIN TV”), and Gary R. Chapman (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive and LIN TV are parties to that certain Employment Agreement dated as of
January 1, 2002 ( the “Original Agreement”); and

     WHEREAS, the parties desire to amend and restate in its entirety the Original Agreement on the
terms and conditions set forth in this Agreement;

     WHEREAS, LIN TV desires to continue to retain the services of Executive and Executive is
willing to provide services to LIN TV upon the terms and conditions set forth herein; and

     WHEREAS, LIN TV and Executive are parties to that certain Severance Compensation Agreement,
dated September 5, 1996, as amended (including, without limitation, as amended by that certain
Fourth Amendment to Severance Compensation Agreement, dated as of the date hereof (as amended, the
“Severance Agreement”), certain terms of which are incorporated by reference herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, LIN TV and Executive hereby agree as follows:

 

 

1. EMPLOYMENT; BOARD OF DIRECTORS SEAT

     LIN TV will employ Executive and Executive will accept employment by LIN TV as its Chairman,
President and Chief Executive Officer. Executive will have the authority, subject to LIN TV’s
Certificate of Incorporation and By-Laws, as may be granted from time to time by the Board of
Directors of LIN TV (the “Board”) and as otherwise is inherent in such positions. LIN TV will, at
every election for the Board while Executive is employed by LIN TV as Chairman, President and Chief
Executive Officer, use its best efforts to have Executive nominated for a seat on the Board as a
member of the management slate.

2. ATTENTION AND EFFORT

     Executive will devote substantially all of his productive time, ability, attention and effort
to LIN TV’s business and will skillfully serve its interests during the term of this Agreement.
Notwithstanding the foregoing, Executive may participate in civic and charitable activities and may
serve on other corporate boards of directors.

3. EFFECTIVENESS; TERM

     This Agreement shall become effective upon January 1, 2002. Unless otherwise terminated
pursuant to paragraph 7 hereof, Executive’s term of employment under this Agreement shall expire on
December 31, 2007; provided, however, that this Agreement shall automatically renew for a period of
one (1) year commencing on January 1, 2008 and on each subsequent anniversary thereof unless either
party shall have given the other written notice, not less than sixty (60) days prior to the
termination date (“Notice of Nonrenewal”), of such party’s desire that this Agreement not be
renewed.

4. COMPENSATION

     During the term of this Agreement, LIN TV agrees to pay or cause to be paid to Executive, and
Executive agrees to accept in exchange for the services rendered hereunder by him, the following
compensation:

4.1 Base Salary

     Executive’s compensation shall consist, in part, of an annual salary to be established by the
non-management members of the Board (the “Compensation Committee”) by January 1 of each year, which
annual salary shall be no less than Eight Hundred Thousand Dollars ($800,000) before all customary
payroll deductions. Such annual salary shall be paid in substantially equal installments and at the
same intervals as other officers of LIN TV are paid. The Compensation Committee shall determine any
increases in the amount of the annual salary in future years. Executive’s base salary, as it may be
increased, may not thereafter be reduced.

 

 

     4.2 Bonus

     Executive shall be entitled to receive, in addition to the annual salary described above, an
annual bonus to be awarded by December 31 of each year, or as soon thereafter as practicable. The
amount of the bonus shall be determined as set forth on Schedule 4.2 attached hereto and
incorporated herein by reference.

5. BENEFITS

     During the term of this Agreement, Executive will be entitled to participate, subject to and
in accordance with applicable eligibility requirements, in fringe benefit programs as shall be
provided from time to time by, to the extent required, action of the Board (or any person or
committee appointed by the Board to determine fringe benefit programs). In addition, LIN TV shall
adopt or implement such plans or arrangements, supplemental or otherwise, as are necessary to
provide to Executive the same aggregate level of benefits based on his service throughout the term
of this Agreement as he would receive pursuant to the LIN TV Retirement Plan or any similar plans
that may be adopted by LIN TV in the future regardless of any otherwise applicable limitations on
benefits, whether based on Executive’s salary level or other measures, and regardless of any
subsequent termination of any such plans.

6. OPTION GRANT

     Executive has been granted nonqualified stock options to purchase shares of LIN TV stock,
under the 1998 Stock Option Plan, 1998 Substitute Stock Option Plan, the 1998 Phantom Stock Plan
and the Amended and Restated 2002 Stock Plan subject to the terms and conditions of the such Plans,
the corresponding grants to Executive, and the Severance Agreement (collectively, the “Options”).

7. TERMINATION

     Employment of Executive pursuant to this Agreement may be terminated as follows, but in any
case, the provisions of paragraph 9 hereof shall survive the termination of this Agreement and the
termination of Executive’s employment hereunder:

     7.1 By Either Party

     Either party may terminate the employment of Executive through termination of this Agreement
pursuant to Notice of Nonrenewal delivered in accordance with Paragraph 3. Termination in this
manner shall not constitute termination with or without Cause or Good Reason (each as defined
below).

     7.2 By LIN TV

     With or without Cause, LIN TV may terminate the employment of Executive at any time during the
term of employment upon giving Notice of Termination (as defined below).

 

 

     7.3 By Executive

     Executive may terminate his employment at any time, for any reason, upon giving Notice of
Termination.

     7.4 Automatic Termination

     This Agreement and Executive’s employment hereunder shall terminate automatically upon the
death or total disability of Executive. The term “total disability” as used herein shall mean
Executive’s inability, with or without reasonable accommodations, to perform the duties set forth
in paragraph 1 hereof for a period or periods aggregating six (6) months in any twelve (12) month
period as a result of physical or mental illness, loss of legal capacity or any other cause beyond
Executive’s control, unless Executive is granted a leave of absence by the Board. All
determinations as to whether Executive has suffered total disability due to physical or mental
illness, loss of capacity or any other medical cause shall be made by a physician who is mutually
agreed upon by Executive and the Compensation Committee. Executive and LIN TV hereby acknowledge
that Executive’s ability to perform the duties specified in paragraph 1 hereof is of the essence of
this Agreement. Termination hereunder shall be deemed to be effective (a) at the end of the
calendar month in which Executive’s death occurs or (b) immediately upon determination by the Board
of Executive’s total disability, as defined herein.

     7.5 Notice

     The term “Notice of Termination” shall mean at least thirty (30) days’ written notice of
termination of Executive’s employment, during which period Executive’s employment and performance
of services will continue; provided, however, that LIN TV may, upon notice to Executive and without
reducing Executive’s compensation during such period, excuse Executive from any or all of his
duties during such period. The effective date of the termination of Executive’s employment
hereunder shall be the date specified in the Notice of Termination delivered in accordance with
this subparagraph 7.5.

8. TERMINATION PAYMENTS

     In the event of termination of the employment of Executive, all compensation and benefits set
forth in this Agreement shall terminate except as specifically provided in this paragraph 8:

     8.1 Termination by LIN TV without Cause or by Executive with Good Reason

     (a) Except as otherwise provided in Section 8.1(b) hereof, if LIN TV terminates Executive’s
employment without Cause prior to the end of the term of this Agreement, or if Executive terminates
his employment with LIN TV within 90 days after Executive has knowledge of the occurrence of an
event constituting Good Reason, Executive shall be

 

 

entitled to Severance Compensation (as defined in the Severance Agreement) pursuant to the
terms and subject to the conditions of the Severance Agreement.

     ( b) Notwithstanding anything to the contrary contained in Section 8.1(a) hereof or the
Severance Agreement, if Executive shall Compete (as defined below) with LIN TV within one year of
the Termination of Executive’s employment pursuant to Executive’s termination by LIN TV without
Cause or termination by Executive with Good Reason, in either case (i) prior to the end of the term
of this Agreement and (ii) prior to a Hicks Muse Change in Control, Executive shall be entitled to
receive, in lieu of the Severance Compensation to which he would be entitled pursuant to the
Severance Agreement, termination payments equal to (y) one (1) year’s Salary and an additional sum
of eight hundred thousand dollars ($800,000) in lieu of bonus, and (z) any unpaid Salary that has
accrued for services already performed as of the date termination of Executive’s employment becomes
effective (collectively, the “Minimum Termination Payments”); provided, however, that if Executive
shall Compete with LIN TV at any time following termination by Executive with Good Reason prior to
a Hicks Muse Change in Control, Executive shall not be entitled to any further benefits under the
Severance Agreement from and after the point in time that Executive begins to Compete with LIN TV.

     8.2 Termination by LIN TV with Cause or by Executive without Good Reason

     In the case of the termination of Executive’s employment by LIN TV with Cause or by Executive
without Good Reason, Executive shall not be entitled to any payments hereunder, other than unpaid
salary that has accrued for services already performed as of the date the termination of
Executive’s employment becomes effective.

     8.3 Expiration of Term

     In the case of a termination of Executive’s employment as a result of the expiration of the
term of this Agreement as a result of Notice of Nonrenewal, in addition to unpaid salary that has
accrued for services already performed as of the date the termination of Executive’s employment
becomes effective, Executive shall be entitled to receive salary continuation payments for a period
of twelve (12) months following the expiration of the term.

     8.4 Termination Because of Death or Total Disability

     In the event of a termination of Executive’s employment because of his death or total
disability, Executive or his personal representative shall receive termination payments equal to
six months of Salary from the date of death or total disability.

     8.5 [Reserved.]

 

 

     8.6 Option Acceleration

     With respect to all Options (as defined in the Severance Agreement) which are not otherwise
exercisable on the Date of Termination (as defined in the Severance Agreement), such Options shall
vest and shall be exercisable subject to, and in accordance with, the terms of Section 3(a)(iii) of
the Severance Agreement.

     8.7 Certain Defined Terms

     The terms “Hicks Muse Change in Control”, “Cause”, “Effective Date” and “Good Reason” shall
have the same meaning as defined in the Severance Agreement,

     8.8 Payment Schedule

     All payments under this paragraph 8 shall be made to Executive at the same interval as
payments of salary were made to Executive immediately prior to termination.

9. NONCOMPETITION AND NONSOLICITATION

     9.1 Applicability

     This paragraph 9 shall survive the termination of Executive’s employment with LIN TV or the
expiration of the term of this Agreement.

     9.2 Scope of Competition

     Executive agrees that he will not, directly or indirectly, during his employment and for a
period of one (1) year from the date on which his employment with LIN TV is terminated by LIN TV
for Cause or by Executive without Good Reason, be employed by, consult with or otherwise perform
services for, own, manage, operate, join, control or participate in the ownership, management,
operation or control of or be connected with, in any manner (“Compete”), any Broadcaster, unless
released from such obligation by the Board. A “Broadcaster” shall include any station or other
entity that broadcasts, transmits or otherwise provides programming to viewers within the
geographical area described in Schedule 9.2 hereto. By way of description and without limiting the
foregoing, Executive shall be deemed to be connected with a Broadcaster if such Broadcaster is (a)
a partnership in which he is a general or limited partner or Executive, (b) a corporation or
association of which he is a shareholder, officer, Executive or director, or (c) a partnership,
corporation or association of which he is a member, consultant or agent; provided, however, that
nothing herein shall prevent the purchase or ownership by Executive of shares that constitute less
than five percent (5%) of the outstanding equity securities of a publicly or privately held
corporation, if Executive has no other relationship with such corporation. Notwithstanding the
foregoing, Executive shall not be deemed to Compete with LIN TV as a result of his association with
another entity if the aggregate population of the market(s) served by both LIN TV and such entity
is less than 20% of the aggregate population in all markets served by each of LIN TV and such
entity. Upon and subject to reasonable notice being provided to LIN TV by Executive prior to
Executive’s entering into a position or association which may cause Executive to

 

 

Compete with LIN TV, LIN TV will conduct a timely review of such proposed position or
association and notify Executive regarding LIN TV’s view as to whether Executive will thereby
Compete with LIN TV.

     9.3 Scope of Nonsolicitation

     Executive shall not directly or indirectly solicit, influence or entice, or attempt to
solicit, influence or entice, any executive, employee, or consultant of LIN TV to cease his
relationship with LIN TV or solicit, influence, entice or in any way divert any customer,
distributor, partner, joint venturer or supplier of LIN TV to terminate such person’s relationship
with LIN TV in order to do business or in any other entity that (a) directly or indirectly competes
with LIN TV or produces, markets, distributes, syndicates or otherwise derives benefit from the
production, marketing, distribution or syndication of products, services or programs that compete
with products then produced or services or programs then being provided or marketed by LIN TV or
the feasibility for production of which LIN TV is then actually studying or (b) is preparing to
market or is developing products, services or programs that will be in competition with the
products, services or programs being studied or developed by LIN TV. The subparagraph 9.3 shall
apply during the time period described in subparagraph 9.2 hereof and with respect to the
geographical area described in Schedule 9.2 hereto.

     9.4 Nondisclosure: Return of Materials

     During the term of his employment by LIN TV and following termination of such employment,
Executive will not disclose (except as required by his duties to LIN TV), any concept, design,
process, technology, trade secret, customer list, plan, embodiment or invention, any other
intellectual property (“Intellectual Property”) or any other confidential information, whether
patentable or not, of LIN TV of which Executive becomes informed or aware during his employment,
whether or not developed by Executive. In the event of the termination of his employment with LIN
TV or the expiration of this Agreement, Executive will return to LIN TV all documents, data and
other materials of whatever nature, including, without limitation, drawings, specifications,
research, reports, embodiments, software and manuals that pertain to his employment with LIN TV or
to any Intellectual Property and shall not retain or cause or allow any third party to retain
photocopies or other reproductions of the foregoing.

     9.5 Equitable Relief

     Executive acknowledges that the provisions of this paragraph 9 are essential to LIN TV, that
LIN TV would not enter into this Agreement if it did not include this paragraph 9 and that damages
sustained by LIN TV as a result of a breach of this paragraph 9 cannot be adequately remedied by
damages, and Executive agrees that LIN TV, and in addition to any other remedy it may have under
this Agreement or at law, shall be entitled to injunctive and other equitable relief to prevent or
curtail any breach of any provision of this Agreement, including, without limitation, this
paragraph 9, the prevailing party shall be entitled to recover costs, expenses, and reasonable
attorneys’ fees.

 

 

     9.6 Definition of LIN TV

     For purposes of subparagraph 9.2 and subparagraph 9.3 hereof, “LIN TV” shall include all
subsidiaries of LIN TV, any business ventures in which LIN TV or its subsidiaries participate and
any broadcast station then owned by LIN TV or to which LIN TV provides any programming or marketing
services pursuant to a local marketing agreement or any other arrangement.

10. REPRESENTATIONS AND WARRANTIES

     In order to induce LIN TV to enter into this Agreement, Executive represents and warrants to
LIN TV that neither the execution nor the performance of this Agreement by Executive will violate
or conflict in any way with any other agreement to which Executive may be bound, or with any other
duties imposed upon Executive by corporate or other statutory or common law.

11. NOTICE AND CURE OF BREACH

     Whenever a breach of this Agreement by either party is relied upon as justification for any
action taken by the other party pursuant to any provision of this Agreement, other than pursuant to
the definition of “Cause” set forth in subparagraph 8.7 hereof, before such action is taken, the
party asserting the breach of this Agreement shall give the other party at least twenty (20) days’
prior written notice of the existence and the nature of such breach before taking further action
hereunder and shall give the party purportedly in breach of this Agreement the opportunity to
correct such breach during the twenty (20) day period.

12. FORM OF NOTICE

     All notices given hereunder shall be given in writing, shall specifically refer to this
Agreement and shall be personally delivered or sent by telecopy or other electronic facsimile
transmission or by registered or certified mail, return receipt requested, at the address set forth
below or at such other address as may hereafter be designated by notice given in compliance with
the terms hereof:

	If to Executive:	 	Gary R. Chapman

75 Shore Drive

Warren, RI 02885

	If to LIN TV:	 	LIN Television Corporation

4 Richmond Square, Suite 200

Providence, RI 02906

Attn: Corporate Secretary

     If notice is mailed, such notice shall be effective three (3) business days after deposit in
the U.S. mail, postage prepaid, return receipt requested, or, if notice is

 

 

personally delivered or sent by telecopy or other electronic facsimile transmission, it shall
be effective upon receipt.

13. WAIVERS

     No delay or failure by any party hereto in exercising, protecting or enforcing any of its
rights, titles, interests or remedies hereunder, and no course of dealing or performance with
respect thereto, shall constitute a waiver thereof. The express waiver by a party hereto of any
right, title, interest or remedy in a particular instance or circumstance shall not constitute a
waiver thereof in any other instance or circumstance. All rights and remedies shall be cumulative
and not exclusive of any other rights or remedies.

14. AMENDMENTS IN WRITING

     No amendment, modification, waiver, termination or discharge of any provision of this
Agreement, or consent to any departure therefrom by either party hereto, shall in any event be
effective unless the same shall be in writing, specifically identifying this Agreement and the
provision intended to be amended, modified, waived, terminated or discharged and signed by LIN TV
and Executive, and each such amendment, modification, waiver, termination or discharge shall be
effective only in the specific instance and for the specific purpose for which it is given. No
provision of this Agreement shall be varied, contradicted or explained by any oral agreement,
course of dealing or performance or any other matter not set forth in an agreement in writing and
signed by LIN TV and Executive.

15. APPLICABLE LAW

     This Agreement shall in all respects, including all matters of construction, validity and
performance, be governed by, and construed and enforced in accordance with, the laws of the state
of Delaware, without regard to any rules governing conflict of laws.

16. SEVERABILITY

     If any provision of this Agreement shall be held invalid, illegal or unenforceable in any
jurisdiction, for any reason, including, without limitation, the duration of such provision, its
geographical scope or the extent of the activities prohibited or required by it, then, to the full
extent permitted by law (a) all other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in order to carry out the intent of the parties
hereto as nearly as may be possible, (b) such invalidity, illegality or enforceability shall not
affect the validity, legality or enforceability of any other provision hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such provision to the
extent necessary for such provision to be enforceable under applicable law.

 

 

17. ARBITRATION

     Subject to the provisions of subparagraph 8.5 hereof, any controversies or claims arising out
of or relating to this Agreement shall be fully and finally settled by arbitration in accordance
with the Commercial Arbitration Rules of the American Arbitration Association then in effect (the
“AAA Rules”), conducted by one arbitrator either mutually agreed upon by LIN TV and Executive or
chosen in accordance with the AAA Rules, except that the parties thereto shall have any right to
discovery as would be permitted by the Federal Rules of Civil Procedure for a period of ninety (90)
days following the commencement of such arbitration and the arbitrator thereof shall resolve any
dispute that arises in connection with such discovery. The prevailing party shall be entitled to
costs, expenses and reasonable attorneys’ fees, and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof.

18. HEADINGS

     All headings used herein are for convenience only and shall not in any way affect the
construction of, or be taken into consideration in interpreting, this Agreement.

19. COUNTERPARTS

     This Agreement, and any amendment or modification entered into pursuant to paragraph 14
hereof, may be executed in any number of counterparts, each of which counterparts, when so executed
and delivered, shall be deemed to be an original and all of which counterparts, taken together,
shall constitute one and the same instrument.

20. ENTIRE AGREEMENT

     This Agreement on and as of the date hereof, together with the Severance Agreement,
constitutes the entire agreement between LIN TV and Executive with respect to the subject matter
hereof and all prior or contemporaneous oral or written communications, understandings or
agreements between LIN TV and Executive with respect to such subject matter, including the Original
Agreement, are hereby superseded in their entireties. Without limiting the foregoing, upon the
effectiveness of this Agreement, the Original Agreement shall be deemed amended and restated by
this Agreement, and this Agreement shall supersede the Original Agreement in all respects upon the
effectiveness of this Agreement.

21. ASSIGNMENT

     This Agreement is personal to Executive and without the prior written consent of LIN TV shall
not be assignable by the Executive otherwise than by will or the laws of descent and distribution.
This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal
representatives. This Agreement shall inure to the benefit of and be binding upon LIN TV and its
successors and assigns. LIN TV will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
LIN TV to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that LIN TV

 

 

would be required to perform it if no such succession had taken place. As used in this
Agreement, “LIN TV” shall mean LIN TV as hereinbefore defined and any successor to its business
and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or
otherwise.

     IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date
set forth above.

LIN TELEVISION CORPORATION

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Denise M. Parent 	 
	 	 	Vice President-Deputy General Counsel 	 
	 

	 	 	 	 	 
	 	LIN TV CORP.

 	 
	 	By:  	 	 
	 	 	Denise M. Parent 	 
	 	 	Vice President-Deputy General Counsel 	 
	 

	 	 	 	 	 
	 	 	 
	 	Gary R. Chapman

 	 
	 	 	 
	 	 	 
	 	 	 
	 

SCHEDULE 4.2

     The amount of the bonus payable to Executive pursuant to Section 4.2 (the “Target Bonus”) and
the goals on which the Target Bonus is based shall be established annually by the Compensation
Committee after consulting with Executive; provided, that the amount of the Target Bonus shall be
no less than Eight Hundred Thousand Dollars ($800,000).

Target Bonus shall be determined as follows:

(a) 50% of the Target Bonus (the “OCF Target Bonus”) shall be based on achieving operating
cash flow targets set annually by the Compensation Committee, based on achieving the level of
operating cash flow set forth in the annual plan approved by the Board. The Compensation
Committee may, in its discretion following consultation with the Executive, adjust the plan
level of operating cash flow, for purposes of this Agreement, during the course of the year to
reflect material unanticipated or extraordinary developments, or other business factors making
an adjustment appropriate.

 

 

If operating cash flow is within 20% of plan, the amount payable with respect to the OCF
Target Bonus shall be (i) the amount of the OCF Target Bonus plus or minus (depending on
whether actual results are above or below plan) (ii) (X) the OCF Target Bonus multiplied by
(Y) a fraction (I) the numerator of which is the percentage by which actual results are above
or below plan (rounded to the nearest whole percentage point) and (II) the denominator of
which is 20%.

If actual results are equal to or greater than 120% of plan, then the amount payable with
respect to the OCF Target Bonus shall be two times the OCF Target Bonus plus such additional
amount to reflect results in excess of 120% of plan as shall be determined by the Compensation
Committee in its sole discretion. If actual results are less than or equal to 80% of plan, the
amount payable with respect to the OCF Target Bonus shall be zero.

(b) 50% of the Target Bonus (the “Goals Bonus”) shall be payable based on the Compensation
Committee’s assessment of Executive’s achievement of the following “Basic Goals”: (i)
assembling the most talented and hardest working senior management team in the industry; (ii)
effective management of public-company (if applicable) oversight issues, viz. investor
relations; internal financing (liquidity and corporate flexibility) to meet challenges and
grasp opportunities); achievement of an appropriate public-market valuation relative to the
industry, if applicable, taking into account specific external factors affecting the Company’s
stock (such as large transactions in its stock); (iii) achievement of individual station goals
including revenue or market-share targets agreed from time to time by the Compensation
Committee and the Executive (including station audience growth and audience acquisition); (iv)
appropriate response to growth opportunities, including making appropriate station
acquisitions in a fiscally prudent manner; and (v) effective representation of the Company and
the industry on policy issues to the FCC, Congress, and other public authorities. The Basic Goals should be discussed annually between the Compensation Committee and the Executive to
agree upon (x) the specific details of each of the Basic Goals, (y) any modifications of the
Basic Goals, and (z) any additional or different goals that they agree are appropriate for the
determination of the Goals Bonus.

SCHEDULE 9.2

     Subparagraph 9.2:

          The geographic scope shall include the Designated Market Area, as defined by A.C. Nielsen
Company, (a) in which any station owned or operated by LIN TV or to which LIN TV provides
substantial services related to the ownership and operation of a station is located and (b) in
which any station which LIN TV has an agreement to acquire, is negotiating an agreement to acquire
or is then studying the feasibility of acquiring is located.

     Subparagraph 9.3:

     To the extent the activities at issue relate to the ownership or operation of a broadcasting
station, the geographic scope shall be as defined above with respect to subparagraph 9.2. With
respect to all other activities, the geographic scope shall be defined as all markets in the United
States of America and Canada.exv10w2

 

EXHIBIT 10.2

FOURTH AMENDMENT TO SEVERANCE COMPENSATION AGREEMENT

     This Fourth Amendment to Severance Compensation Agreement (this “Fourth Amendment”),
dated as of the 1st day of July, 2005, is by and between LIN Television Corporation, a Delaware
corporation (the “Company”), and Gary R. Chapman (the “Executive”).

W I T N E S E T H:

     WHEREAS, the Company and Executive are parties to that certain Severance Compensation
Agreement, dated as of September 5, 1996, as amended on October 1, 1999, August 30, 2000, and
October 1, 2002 (the “Agreement”).

     WHEREAS, the Company believes it is in its best interest to reinforce and encourage
Executive’s continued disinterested attention and undistracted dedication in the potentially
disturbing circumstances of a possible change in control of the Company; and

     WHEREAS, the parties desire to amend the Agreement upon the terms contained herein;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
Company and Executive each agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein shall have the meaning ascribed
thereto in the Severance Agreement.

     2. Amendment to Add Definition of Executive Employment Agreement. Section 1 of the Agreement,
which sets forth certain defined terms, shall be amended to add in the appropriate alphabetical
order, the following:

“Executive Employment Agreement” shall mean that certain Amended and Restated
Employment Agreement, by and among, Executive, the Company and LIN TV, dated as of
July 1, 2005.

 

 

     3. Amendment to Paragraph (iii) of Definition of Good Reason. Paragraph (iii) of the
definition of the term “Good Reason” in Section 1(d) of the Agreement shall be deleted in its
entirety and the following shall be inserted in lieu thereof and shall constitute the new paragraph
(iii) of the definition of “Good Reason” for purposes of the Agreement:

the assignment to Executive of any duties inconsistent with, or a diminution of,
Executive’s duties, titles, offices, responsibilities or status from those of
Executive with LIN TV or the Company, or any demotion of Executive from or any
failure to reelect or reappoint Executive to any of such positions, except in
connection with the termination of Executive’s employment for disability, retirement
or Cause or as a result of Executive’s death; provided, however, that if, subsequent
to a Hicks Muse Change in Control, the Executive maintains over the business of LIN
TV the same authority and responsibility with respect thereto that he held prior to
such Hicks Muse Change in Control, neither (A) the absence of those duties and
responsibilities of Executive with respect to the status of LIN TV as an issuer of
publicly traded securities, nor (B) the requirement that the Executive report to
officers or the board of parent companies, shall itself constitute “Good Reason;” and
provided further that in the event of a Hicks Muse Change in Control and with respect
to that portion of Executive’s duties, titles, offices, responsibilities and status
relating to his service as the Chairman of the Board and a Director of LIN TV and the
Company, the appointment or election and subsequent service of Executive as a
Director of the ultimate parent of LIN TV following a Hicks Muse Change in Control
shall be deemed equivalent to his service as the Chairman of the Board and a Director
of LIN TV and the Company prior to such Hicks Muse Change in Control for purposes of
this paragraph (iii).

     4. Amendment to Paragraph (iv) of Definition of Good Reason. Paragraph (iv) of the definition
of the term “Good Reason” in Section 1(d) of the Agreement shall be deleted in its entirety and, in
order to maintain the sequential numbering of the paragraphs in such definition, the following
shall be inserted in lieu thereof and shall constitute the new paragraph (iv) of the definition of
“Good Reason” for purposes of the Agreement: “[Reserved.]”

     5. Amendment to Section 2 of the Agreement. Section 2 of the Agreement shall be deleted in its
entirety, and the following shall be inserted in lieu thereof and shall constitute the new Section
2 of the Agreement:

Severance Compensation Trigger. Except as otherwise provided in Section
8.1(b) of the Executive Employment Agreement (which is hereby incorporated by
reference), Executive shall be entitled to severance compensation as set forth in
Section 3 hereof (“Severance Compensation”) in the event that Executive’s employment
is terminated within the Extension Period (as defined below) (i) by the Company
without Cause, or (ii) by Executive within 90 days after Executive has knowledge of the occurrence of an event
constituting Good Reason (clauses (i) or (ii), a “Severance Compensation Trigger”).
The “Extension Period” shall be defined as that certain period commencing on the date
of this Agreement and ending on the date that is three (3) years following a Hicks
Muse Change in Control.

 

 

Notwithstanding the foregoing, for purposes of this Section 2, the following events
shall not be deemed to be a termination “by the Company without Cause” that would
Executive otherwise constitute a Severance Compensation Trigger:

(a) Termination of Executive’s employment by reason of Executive’s death or
disability (including, without limitation, illness or injury preventing Executive
from performing his duties, as they existed immediately prior to the illness or
injury, of a full-time basis for 180 consecutive business days); or

(b) Termination of Executive’s employment by reason of Executive’s retirement
(including, without limitation, Executive’s voluntary late, normal or early
retirement under a pension plan sponsored by the Company, as defined in such
plan).

     6. Amendment to Section 3(a)(i) of the Agreement. Section 3(a)(i) of the Agreement shall be
shall be deleted in its entirety and the following shall be inserted in lieu thereof and shall
constitute the new Section 3(a)(i) of the Agreement:

i) In lieu of any further salary or bonus payments to the Executive for
periods subsequent to the Date of Termination, the Company shall pay to
the Executive not later than the tenth day following the Date of
Termination a lump sum severance payment equal to the sum of:

	 	(x)	 	amount equal to three times (3x) the Executive’s annual base salary in
effect on the Date of Termination (the “Base Salary”);

	 	(y)	 	an amount equal to three times (3x):

(1) the amount of the highest bonus compensation paid to the
Executive with respect to the last three complete fiscal years,
and

(2) the contribution, if any, paid by the Company for the benefit
of the Executive to any 401(k) Plan in the last complete fiscal
year,

	 	(z)	 	the present value, determined as of the Date of Termination, of the
sum of:

 

 

(1) all benefits which have accrued to the Executive but have
not vested under the LIN Television Corporation Retirement Plan
(the “Retirement Plan”) as of the Date of Termination, and

(2) all additional benefits which would have accrued to the
Executive under the Retirement Plan if the employee had continued
to be employed by the Company on the same terms the Executive was
employed on as of the Date of Termination from such Date of
Termination to the date 12 months after the Date of Termination.

For purposes of this Section, the present value of a future payment shall
be calculated by reference to the actuarial assumptions (including
assumptions with respect to interest rates) in use immediately prior to
the Hicks Muse Change in Control for purposes of calculating actuarial
equivalents under the Retirement Plan.

     7. Amendment to Section 3(a)(ii) of the Agreement. Section 3(a)(ii) of the Agreement shall be
shall be deleted in its entirety and the following shall be inserted in lieu thereof and shall
constitute the new Section 3(a)(ii) of the Agreement:

The Company shall provide the Executive for a period commencing on the Date of
Termination and ending on the earlier of the third anniversary of the Date of
Termination or the Executive’s death (the “Benefits Period”), life, health,
disability and accident insurance benefits and the package of “Executive benefits”
substantially similar, individually and in the aggregate, to those which the
Executive was receiving immediately prior to the Notice of Termination, or
immediately prior to a Hicks Muse Change in Control, if greater, including without
limitation, transfer of title of a company automobile, medical, dental, vision, life
and pension benefits, as if Executive were continuing as an employee of the Company
during the Benefits Period, provided, however, that with respect to the provision of
insurance benefits during the Benefits Period, Executive shall be obligated to
continue to pay that proportion of premiums paid by the Executive immediately prior
to such Notice of Termination or Hicks Muse Change in Control, as applicable. The
Company shall apply the statutory health care continuation coverage (“COBRA”)
provisions as if the Executive were a full-time employee of the Company during the
Benefits Period, with the result that (y) the Executive’s spouse and dependents shall
be eligible for continued health insurance coverage that is in all respects
equivalent to COBRA coverage (“COBRA-Equivalent Coverage”) if an event occurs during
the Benefits Period that would have been a “qualifying event” under COBRA had the
Executive been an employee of the Company, and (z) the Executive and the Executive’s spouse and
dependents shall be eligible for COBRA-Equivalent

 

 

coverage at the expiration of the
Benefits Period and for a period of three years thereafter as if the Executive’s
employment with the Company had terminated on the last day of the Benefits Period.

     8. Amendment to Section 3(a)(iii) of the Agreement. Section 3(a)(iii) of the Agreement shall
be shall be deleted in its entirety and the following shall be inserted in lieu thereof and shall
constitute the new Section 3(a)(iii) of the Agreement:

With respect to all stock options and stock awards granted to the Executive under the
1998 Stock Option Plan, the 1998 Substitute Stock Option Plan, the 1998 Phantom Stock
Plan, and the Amended and Restated 2002 Stock Plan of LIN TV (collectively, the
“Options and Awards”) which are not otherwise exercisable or vested on the Date of
Termination, such Options and Awards shall be deemed vested and exercisable
immediately as of the Date of Termination.

     9. Amendment to Section 3(b) of the Agreement. Section 3(b) of the Agreement shall be shall be
deleted in its entirety and the following shall be inserted in lieu thereof and shall constitute
the new Section 3(b) of the Agreement:

Notwithstanding anything to the contrary contained herein:

     (i) If the Severance Compensation under this Section 3, either alone or together
with other payments to the Executive from the Company (or any portion of such
aggregate payment) would constitute an “excess parachute payment” (as defined in
Section 280G of the Code), such Severance Compensation shall be increased by a
payment sufficient to restore the Executive to the same after-tax position the
Executive would have been in if the excise tax had not been imposed.

     (ii) If Executive is a “Specified Employee” within the meaning of Section
409A(a)(2)(B)(i) of the Code, or any successor thereto or as such may be amended
hereafter (“Section 409A”), to the extent necessary to satisfy the requirements of
Section 409A, any portion of the Severance Compensation under this Section 3 that
shall constitute deferred compensation within the meaning of Section 409A shall not
be due and payable to Executive until the date that is six (6) months after the Date
of Termination.

     10. Joinder of LIN TV for Purposes of Section 3(a)(iii) of the Agreement. By executing this
Fourth Amendment, LIN TV agrees to be, and shall be deemed to be, a party to, and be bound by, the
Agreement for purposes of Section 3(a)(iii) of the Agreement (as amended by this Fourth Amendment).

 

 

     11. Reaffirmation of the Severance Agreement. Except as expressly provided herein, the
Agreement is not amended, modified or affected by this Fourth Amendment, and the Agreement and the
rights and obligations of the parties hereto thereunder are hereby ratified and confirmed by the
parties in all respects.

     12. Counterparts. This Fourth Amendment may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
instrument.

     [The remainder of this page has been left blank intentionally.]

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

	 	 	 
	LIN Television Corporation

By: 

Denise M. Parent

Vice President-Deputy General Counsel
	 	Executive

By:

Gary R. Chapman

For purposes of Section 10 of this Fourth Amendment

(and Section 3(a)(ii) of the Agreement):

LIN TV Corp.

By:

Denise M. Parent

Vice President-Deputy General Counsel

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