Document:

sni-ex1049_295.htm

			
	

	
 
	
Exhibit 10.49

	
 
	
 
	
 

	
Kenneth W. Lowe

Chairman, Chief Executive Officer and President
	
 
	
9721 Sherrill Boulevard 

Knoxville, TN  37932

865-560-4328

Ken.Lowe@scrippsnetworks.com

 

July 28, 2017

Lori Hickok

9721 Sherrill Boulevard

Knoxville, Tennessee 37932

Re:Employment Agreement

Dear Lori:

Scripps Networks Interactive, Inc., either directly or through one of its subsidiaries (the “Company”), agrees to employ you and you agree to accept such employment upon the following terms and conditions:

1.Term.  Subject to the provisions for earlier termination provided in paragraph 8 below, the term of your employment hereunder shall become effective as of July 1, 2017 and continue until December 31, 2020. Such period shall be referred to as the “Term,” subject to an earlier termination of your employment pursuant to this Agreement. The Company shall provide you with at least ninety (90) days’ notice prior to the expiration of the Term if the Company does not intend to continue to employ you beyond the expiration of the Term. If the Company does not provide you with such notice and the Company and you do not agree in writing to renew or extend this Agreement or enter into a new employment agreement upon the expiration of the Term, the parties agree that, notwithstanding the expiration of this Agreement, you shall continue to be employed by the Company under this Agreement on an at-will basis, which means that either you or the Company may terminate the employment relationship at any time, with or without Cause or Good Reason or advance notice, subject to the other terms hereof.

2.Duties.  You will be the Executive Vice President, Chief Financial & Development Officer, reporting to the Chief Executive Officer of the Company (“Reporting Senior”). You agree as a member of management to devote substantially all your business time, and apply your best reasonable efforts, to promote the business and affairs of the Company during your employment. You will perform such duties and responsibilities commensurate with your position and title during the Term, and as may be reasonably assigned to you from time to time by your Reporting Senior. While employed by the Company, you shall not, without the prior written consent of the Company, render services of a business, professional or commercial nature either directly or indirectly for any other person or firm, whether for compensation or otherwise, other than in the performance of duties naturally inherent to the businesses of the Company and in furtherance thereof; provided, however, that so long as it does not materially interfere with the performance of your duties hereunder, you may serve as a director, trustee or officer of, 

 

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July 1, 2017

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or otherwise participate in, educational, welfare, social, religious, civic, professional or trade organizations. Your principal place of employment shall be in Knoxville, Tennessee.

3.Compensation.  

(a)Annual Salary.  For all the services rendered by you in any capacity under this Agreement, the Company agrees to pay you a base salary of $875,000 per year (“Annual Salary”), less applicable deductions and withholding taxes, in accordance with the Company’s payroll practices as they may exist from time to time during the Term. Your Annual Salary may be increased by the Company in conjunction with your annual performance review conducted pursuant to the guidelines and procedures of the Company applicable to similarly situated executives, but in no event shall your Annual Salary decrease from one calendar year to the next.

(b)Annual Incentive.  During your employment hereunder, you shall be eligible to participate in the Company’s applicable Annual Incentive Plan, as amended, or any successor to such plan (the “Annual Incentive Plan”) with a target annual incentive opportunity of 85% of your Annual Salary as established under paragraph 3(a) (“Annual Incentive”). The Annual Incentive amount actually paid shall be based on your attainment, within the range of the minimum and maximum performance objectives, of strategic and financial goals established for you by the Company. The Company shall pay to you any Annual Incentive under this paragraph 3(b) in accordance with the terms and subject to the conditions of the Annual Incentive Plan.

4.Benefits.  During your employment hereunder, you shall be eligible to participate in all equity incentive plans of the Company applicable to similarly situated executives of the Company in accordance with the terms of each plan.  During your employment hereunder, you shall also be entitled to participate in any employee retirement, health or welfare benefit plan or program available to similarly situated executives of the Company, or to the Company’s employees generally, as such plans and programs may be in effect from time to time, including, without limitation, profit sharing, savings, estate preservation and other retirement plans or programs, 401(k), medical, dental, vision, life insurance, short-term and long-term disability insurance plans, accidental death and dismemberment protection, travel accident protection, and all other plans that the Company may have or establish from time to time and in which you would be entitled to participate under the terms of the applicable plan for similarly situated executives. This provision is not intended to reduce, nor shall it have the effect of reducing, any benefit to which you were entitled as of the effective date of this Agreement. However, this provision shall not be construed to require the Company to establish any welfare, compensation or long-term incentive plans, or to prevent the modification or termination of any plan once established, and no action or inaction with respect to any plan shall affect this Agreement. You shall be entitled to be reimbursed by the Company for tax and financial planning up to a maximum net amount of $10,000 per year, and for the annual membership fees and other dues associated with one luncheon club.  In addition, the Company shall pay the cost of an annual “senior executive” physical examination.

 

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5.Business Expenses.  During your employment hereunder, upon delivery of proper documentation in accordance with the Company’s expense reimbursement policy, the Company shall reimburse you for reasonable travel and other expenses incurred in the performance of your duties as are customarily reimbursed to similarly situated executives of the Company.

6.Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit your continuing or future participation in any plan, program, policy or practice provided by the Company and for which you may qualify that are provided to any other similarly situated executives. Amounts that are vested benefits or that you are otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to the date of termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

7.Non-Competition, Confidential Information, Etc.

(a)Non-Competition.  You agree that your employment with the Company is on an exclusive basis and that, while you are employed by the Company, you will not engage in any other business activity that would otherwise conflict with your duties and obligations (including your commitment of substantially all business time) under this Agreement. You agree that, during the Non-Compete Period (as defined below), you shall not directly or indirectly engage in or participate as an owner, partner, stockholder, officer, employee, director, agent of or consultant for any business competitive with any business of the Company, or for any customer of the Company, without the prior written consent of the Company; provided, however, that this provision shall not prevent you from investing as a less-than-one-percent (1%) stockholder in the securities of any company listed on a national securities exchange or quoted on an automated quotation system. The Non-Compete Period shall cover the entire Term as well as twelve (12) months after your employment with the Company terminates for any reason, or on such earlier date as you may make the election under paragraph 7(i) (which relates to your ability to terminate your obligations under this paragraph 7(a) in exchange for waiving your right to the severance benefits set forth in paragraphs 8(e)(ii) through (viii)). 

(b)Confidential Information.  Except as provided in paragraph 7(e)(v), you agree that, during the Term or at any time thereafter: (i) you shall not use for any purpose other than the duly authorized business of the Company, or disclose to any third party, any Confidential Information; and (ii) you will comply with any and all confidentiality obligations of the Company to a third party, whether arising under a written agreement or otherwise. “Confidential Information” means information about the Company and its businesses that is not generally known outside of the Company, which you learn in connection with your employment with the Company.  Confidential Information may include, without limitation:  (i) the Company’s business strategies, plans, policies and processes; (ii) the Company’s finances, budgets, financial policies and financial projections, including but not limited to annual sales forecasts and targets and any 

 

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computation(s) of the market share; (iii) customized software, marketing tools and/or supplies that you are provided access to by the Company and/or created; (iv) the identity and personally identifiable information (e.g., names, addresses, bank/credit card account numbers, credit histories/reports, social security numbers and telephone numbers) of the Company’s distribution and production partners, on-air and digital talent, customers, vendors and/or any other business contacts, and prospects for any of the foregoing (collectively, “Business Contacts”); (v) any list(s) of the Company’s Business Contacts; (vi) the terms and conditions and/or the proposed terms and conditions of the Company’s contracts with its Business Contacts or any other party and any and all information about the Company’s negotiations with its Business Contacts or any other party, including without limitation executed or partially executed contracts, draft contracts, memoranda of understanding, letters of intent or other expressions of mutual assent, whether written or oral, as well as term sheets; (vii) the names and addresses of the Company’s employees; (viii) the techniques, methods, processes and strategies by which the Company develops, markets, distributes and/or sells any of its services or products, including without limitation the Company’s programming, scheduling and marketing strategies and plans and information about the content of the Company’s programming; (ix) the Company’s intellectual property rights, including but not limited to all business methods, trade secrets, inventions, ideas in development and non-published creative works and the Company’s license agreements for use of third-party intellectual property; and (x) any and all legal advice, opinions, work product, communications and strategies.  Information shall not be deemed Confidential Information that: (y) is or becomes generally available to the public other than as a result of a disclosure by you or at your direction or by any other person who directly or indirectly receives such information from you, or (z) is or becomes available to you on a non-confidential basis from a source who is entitled to disclose it to you.  Further, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), 

	
 
	
(i)
	
you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law;  

	
 
	
(ii)
	
you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and 

	
 
	
(iii)
	
if you file a lawsuit for retaliation by an employer for reporting a suspected violation of law, you may disclose a trade secret to your attorney and use the trade secret information in the court proceeding, provided that you file any document containing the trade secret under seal and do not disclose the trade secret other than pursuant to court order.

(c)No Solicitation or Interference.  You agree that, during the Non-Compete Period, no matter how the Term ends, you shall not, directly or indirectly: (i) employ or solicit the employment of any person who is then or has been within six (6) months prior thereto, an 

 

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employee, independent contractor or consultant of the Company; or (ii) interfere with, disturb or interrupt the relationships (whether or not such relationships have been reduced to formal contracts) of the Company with any of its Business Contacts.

(d)Ownership of Works.  The results and proceeds of your services under this Agreement, including, without limitation, any works of authorship resulting from your services to the Company during your employment with the Company and any works in progress resulting from such services, shall be works-made-for-hire and the Company shall be deemed the sole owner throughout the universe of any and all rights of every nature in such works, whether such rights are now known or hereafter defined or discovered, with the right to use the works in perpetuity in any manner the Company determines in its sole discretion without any further payment to you. If, for any reason, any of such results and proceeds are not legally deemed a work-made-for-hire and/or there are any rights in such results and proceeds that do not accrue to the Company under the preceding sentence, then you hereby irrevocably assign and agree to assign to the Company any and all of your right, title and interest thereto, including, without limitation, any and all copyrights, patents, trade secrets, trademarks and/or other rights of every nature in the work, whether now known or hereafter defined or discovered, and the Company shall have the right to use the work in perpetuity throughout the universe in any manner the Company determines in its sole discretion without any further payment to you. To the extent permitted by applicable law, this assignment of rights includes an assignment of any and all rights of paternity and integrity, including any rights that may be known as “moral rights,” “artist’s rights” or “droit moral.”  You shall, as may be requested by the Company from time to time, do any and all things that the Company may deem useful or desirable to establish or document the Company’s rights in any such results and proceeds, including, without limitation, the execution of appropriate copyright, trademark and/or patent applications, assignments or similar documents and, if you are unavailable or unwilling to execute such documents, you hereby irrevocably designate your Reporting Senior or his/her designee as your attorney-in-fact with the power to execute such documents on your behalf.  To the extent you have any rights in the results and proceeds of your services under this Agreement that cannot be assigned as described above, you unconditionally and irrevocably waive the enforcement of such rights. This paragraph 7(d) is subject to, and does not limit, restrict, or constitute a waiver by the Company of any ownership rights to which the Company may be entitled by operation of law by virtue of being your employer.

(e)Litigation.

	
 
	
(i)
	
You acknowledge and agree that in accordance with the Company’s Code of Ethics, during your employment with the Company, you will disclose to the Company in writing any concern you may have regarding any conduct involving the Company that you have any reason to believe may be unlawful, unethical or otherwise inappropriate, including without limitation conduct in violation of the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Foreign Corrupt Practices Act or the False Claims Act.  For the avoidance of doubt, your disclosures 

 

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as required by this paragraph shall not limit your ability to communicate with any Government Agency as outlined in paragraph 7(e)(v) below.

	
 
	
(ii)
	
You further agree that, during the Term, for one (1) year thereafter and, if longer, during the pendency of any litigation or other proceeding, and except as may be required by law or legal process or in those situations identified in paragraph 7(e)(v) below: (x) you shall not communicate with anyone (other than your own attorneys and tax advisors), except to the extent necessary in the performance of your duties under this Agreement, with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company, other than any litigation or other proceeding in which you are a party-in-opposition, without giving prior notice to the Company’s Chief Ethics and Compliance Officer; and (y) you shall not provide any information or documents in response to another party’s attempts to obtain information or documents from you with respect to such matter, either through formal legal process such as a subpoena or by informal means such as interviews, without giving prior notice to the Company’s Chief Ethics and Compliance Officer.

	
 
	
(iii)
	
You agree to cooperate with the Company and its attorneys, both during employment and during the five (5)-year period following termination of your employment, in connection with any litigation or other proceeding arising out of or relating to matters in which you were involved prior to the termination of your employment. Your cooperation shall include, without limitation, providing assistance to the Company’s counsel, experts or consultants, and providing truthful testimony in pretrial and trial or hearing proceedings. In the event that your cooperation is requested after the termination of your employment, the Company will: (x) seek to minimize interruptions to your schedule to the extent consistent with its interests in the matter; and (y) reimburse you for all reasonable and appropriate out-of-pocket expenses actually incurred by you in connection with such cooperation upon reasonable substantiation of such expenses.

	
 
	
(iv)
	
Except as required by law or legal process or in those situations identified in paragraph 7(e)(v) below, you agree that you will not testify (x) in any lawsuit or other proceeding that directly or indirectly involves the Company that was not filed by you, or (y) if your testimony may create the impression that such testimony is endorsed or approved by the Company. If you are contacted by any person or entity and asked to testify in any proceeding, except as otherwise provided in paragraph 7(e)(v) and to the maximum extent permitted by law, you shall promptly notify the Company’s Chief Ethics and Compliance Officer that you have been so contacted, and in no event shall such notice be delivered to the Company’s Chief Ethics and Compliance Officer later than two (2) days after the initial contact.  All attorney-client and other privileges belong to the Company, and you are not permitted to waive any such privileges unless expressly authorized in writing by the Company’s Chief Ethics and Compliance Officer.

 

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(v)
	
This Agreement does not limit or interfere with your right, without notice to or authorization of the Company, to communicate in good faith with any Government Agency (x) to report a possible violation of law, (y) to participate in any investigation or proceeding that may be conducted by any Government Agency, including by providing documents or other information, or (z) to file a charge or complaint with a Government Agency.  As used in this Agreement, “Government Agency” shall mean the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Financial Industry Regulatory Authority, the U.S. Securities and Exchange Commission, any other self-regulatory organization or any other federal, state or local governmental agency or commission.

(f)Return of Property.  All documents, data, recordings or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for you and utilized by you in the course of your employment with the Company shall remain the exclusive property of the Company. In the event of the termination of your employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies otherwise payable to you the following: (i) all amounts you may directly owe to the Company at the time of or subsequent to the termination of your employment with the Company; and (ii) the reasonable value of the Company property that you retain in your possession after the termination of your employment with the Company. In the event that the law of any state or other jurisdiction requires the consent of an employee for such deductions, this Agreement shall serve as such consent.

(g)Non-Disparagement.  During the Non-Compete Period, except to the extent permitted by paragraph 7(e)(v) you shall not make, nor cause anyone else to make or cause on your behalf, any public disparaging or derogatory statements or comments regarding the Company, or its officers or directors; likewise, the Company’s officers will not make, nor cause anyone else to make, any public disparaging or derogatory statements or comments regarding you. 

(h)Injunctive Relief.  The Company has entered into this Agreement in order to obtain the benefit of your unique skills, talent and experience. You and the Company acknowledge and agree that your violation of one or all of paragraphs 7(a) through (g) of this Agreement will result in irreparable damage to the Company, and accordingly the Company may obtain injunctive and other equitable relief for any breach or threatened breach of such paragraphs, in addition to any other remedies available to the Company.

(i)Survival; Modification of Terms.  The rights and obligations set forth under paragraphs 7(a) through (i) shall remain in full force and effect for the entire period provided therein notwithstanding the termination of your employment under this Agreement for any reason or the expiration of the Term; provided, however, that your obligations under paragraph 7(a) (but not under any other provision of this Agreement) shall cease if you terminate your employment for Good Reason or the Company terminates 

 

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your employment without Cause and you notify the Company in writing, prior to the Company's payment of any severance benefits in accordance with paragraph 8(e)(ii) through (viii), that you have elected to waive your right to receive the severance benefits set forth in paragraphs 8(e)(ii) through (viii). You and the Company agree that the restrictions and remedies contained in paragraphs 7(a) through (h) are reasonable and that it is your intention and the intention of the Company that such restrictions and remedies shall be enforceable to the fullest extent permissible by law. If a court of competent jurisdiction shall find that any such restriction or remedy is unenforceable but would be enforceable if some part were deleted or the period or area of application reduced, then such restriction or remedy shall apply with the modification necessary to make it enforceable.  For the avoidance of doubt, and without limiting the generality of the foregoing, you will be required to waive your rights to receive the severance benefits set forth in paragraphs 8(e)(ii) through (viii) if you wish to be released from paragraph 7(a).

8.Termination.  

(a)Termination for Cause.  The Company may, at its option, terminate your employment under this Agreement for Cause and thereafter shall have no obligations under this Agreement, including, without limitation, any obligation to pay Annual Salary, Annual Incentive or provide benefits, excluding any and all earned and/or vested compensation and/or benefits. “Cause” shall mean exclusively: (i) embezzlement, fraud or other conduct that would constitute a felony (other than traffic-related citations); (ii) willful unauthorized disclosure of Confidential Information; (iii) your material breach of this Agreement; (iv) your gross misconduct or gross neglect in the performance of your duties hereunder; (v) your willful failure to cooperate with a bona fide internal investigation or investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve documents or other material reasonably known to be relevant to such an investigation, or the willful inducement of others to fail to cooperate or to destroy or fail to produce documents or other material; or (vi) your willful and material violation of the Company’s written conduct policies, including but not limited to the Company’s Code of Ethics. The Company will give you written notice prior to terminating your employment pursuant to (iii), (iv), (v), or (vi), of this paragraph 8(a), setting forth the nature of any alleged failure, breach or refusal in reasonable detail and the conduct required to cure. Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, you shall have twenty (20) business days from the giving of such notice within which to cure any failure, breach or refusal under (iii), (iv), (v), or (vi) of this paragraph 8(a); provided, however, that if the Company reasonably expects irreparable injury from a delay of twenty (20) business days, the Company may give you notice of such shorter period within which to cure as is reasonable under the circumstances.

(b)Good Reason Termination.  You may terminate your employment under this Agreement for Good Reason at any time by written notice to the Company in accordance with paragraph 13. “Good Reason” shall mean exclusively the following events, should one or more of them occur without your consent (other than in connection with the termination 

 

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or suspension of your employment or duties for Cause or in connection with your Disability): (i) a material diminution in your Annual Salary or Annual Incentive opportunity; (ii) a material diminution in your authority, duties or responsibilities; (iii) a material diminution in the authority, duties or responsibilities of the supervisor to whom you are required to report; (iv) a requirement that you report to someone else other than your Reporting Senior or any similar position then in effect, which requirement results in a material change in your reporting structure; (v) a material diminution in the budget over which you retain authority (except for good-faith budget adjustments necessitated by the legitimate business needs of the Company); (vi) a material change in geographic location at which you must perform services under this Agreement from the Company's offices at which you were principally employed; or (vii) any other action or inaction that constitutes a material breach by the Company of the terms of this Agreement. Notwithstanding the foregoing, no event described above shall constitute Good Reason unless: (1) you give notice of termination for Good Reason to the Company in accordance with paragraph 13 specifying the condition or event relied upon for such termination within ninety (90) calendar days after the initial existence of such event; (2) the Company fails to cure the condition or event constituting Good Reason within thirty (30) calendar days after receipt of such notice; and (3) you actually terminate employment within sixty (60) calendar days after delivering such notice.

(c)Termination Without Cause or for Disability.  The Company may terminate your employment under this Agreement without Cause or for “Disability” (defined by reference to the employee long-term disability plan of the Company that covers you) at any time by written notice to you in accordance with paragraph 13 at least thirty (30) days prior to the date of such termination. Termination without Cause shall include, without limitation, the involuntary termination of your employment without Cause upon or after the expiration of the Term as set forth in paragraph 1 above. 

(d)Termination as a Result of Death.  Your employment with the Company shall terminate in the event of your death.

(e)Termination Payments/Benefits.  Subject to paragraph 7 and paragraph 9, and pursuant to the terms, and subject to the conditions, of the Company’s Executive Severance Plan (including the payment schedule provisions thereof), in the event that your employment terminates under paragraphs 8(b), (c) or (d), you (or your estate or legal representative, if applicable) shall thereafter receive no less than the following benefits (in each case less applicable deductions and withholding taxes), which (for the avoidance of doubt) are the severance benefits stipulated by the Company’s Executive Severance Plan in existence as of the date above:  

	
 
	
(i)
	
Accrued Benefits:  The portion of your Annual Salary earned, but not yet paid, through your Date of Termination; any Annual Incentive earned, but not yet paid, for a completed fiscal year preceding the Date of Termination; and any accrued paid time off through your Date of Termination, to the extent not yet used or paid (collectively, the “Accrued Benefits”). The Accrued Benefits shall be paid in a single lump sum 

 

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within 30 calendar days after your Date of Termination, or as otherwise may be provided in a valid deferral election made pursuant to the terms of the Company’s deferred compensation plan.

	
 
	
(ii)
	
Prorated Annual Incentive.  A prorated Annual Incentive, which shall be in lieu of any annual incentive that you would have otherwise been entitled to receive under the terms of the Annual Incentive Plan covering you for the fiscal year during which your Date of Termination occurs.

	
 
	
(iii)
	
Severance Payment.  As additional severance (and not in lieu of any incentive compensation for the fiscal year in which your Date of Termination occurs), a severance payment equal to 1.5 times the sum of your Annual Salary and Annual Incentive. The severance shall be paid in a single lump sum within 20 calendar days after the Release Deadline.

	
 
	
(iv)
	
Health Care Coverage. A lump-sum cash payment equal to 18 times the monthly premiums based on the level of coverage in effect for you (e.g., PPO or low/high HSA, employee only or family coverage) on the Date of Termination.   

	
 
	
(v)
	
Life Insurance.  The Company shall take all steps reasonably necessary to continue the life insurance coverage applicable to you on your Date of Termination (and if the policy cannot be continued in its then-current form, the Company shall exercise any required conversion features to continue the policy), at no cost to you, for 1.5 years following your Date of Termination.  The amount of such coverage will be reduced by the amount of life insurance coverage furnished to you at no cost by a third-party employer.

	
 
	
(vi)
	
Financial Planning.  A net amount of $10,000, which is intended to cover the approximate cost of financial planning services for you for a period of one year after your Date of Termination. This financial planning stipend shall be paid in a single lump sum within 20 calendar days after the Release Deadline.

	
 
	
(vii)
	
Outplacement.  The Company shall, at its sole expense as incurred, provide you with outplacement services from a recognized outplacement service provider for twelve (12) months, the scope of such services to be determined in the sole discretion of the Company.

	
 
	
(viii)
	
Pension Enhancement. If, as of your date of termination, you have not yet attained both age 55 and at least 10 “years of service” as defined in the Executive Supplemental Retirement Plan (the “SERP”), then, regardless of any provision in the SERP or the Executive Severance Plan to the contrary, you shall receive a “Pension Enhancement”, payable in a lump sum within 20 calendar days after the Release Deadline, that is intended to provide you with all retirement benefits that would have been available to you if your employment had terminated after you attained both age 55 and 10 years of service. The “Pension Enhancement” will be calculated as follows: 

 

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the excess, if any, of (1) the actuarial equivalent of the benefit under the Scripps Networks Interactive Pension Plan or its successor (the “Pension Plan”) and the Scripps Networks Interactive, Inc. Supplemental Executive Retirement Plan or its successor (the “SERP”) (utilizing actuarial assumptions and factors no less favorable to you than the most favorable of those in effect under the Pension Plan for computing lump sum benefit payments at any time during the Term) that you would have received under the terms of those plans as in effect on January 1, 2012, or if more favorable to you, on your termination of employment, if your employment had continued for a number of years (or fractions thereof) in the period commencing on the day immediately following your date of termination and ending on the date that you would have attained both age 55 with at least 10 “years of service” (within the meaning of the SERP as in effect on January 1, 2012), assuming for this purpose that: (x) your age and vesting service (but not your benefits service) is increased by the number of years that you are deemed to be so employed, and (y) the rate of base salary and bonus for each year that you are deemed to be so employed shall be determined by reference to your Annual Salary and Annual Incentive, over (2) the actuarial equivalent of your actual benefit, if any, under the Pension Plan and the SERP (utilizing actuarial assumptions and factors no less favorable to you than the most favorable of those in effect under the Pension Plan for computing lump sum benefit payments at any time during the Term) as of your date of termination. The pension enhancement benefits set forth in this paragraph 8(e)(iii) shall be payable to you upon a qualified termination that occurs prior to your 55th birthday, notwithstanding any earlier expiration of the Term of this Agreement.  

(f)Termination of Benefits.  Notwithstanding anything in this Agreement to the contrary (except as otherwise provided in paragraph 8(e) with respect to health care benefits, life insurance and financial planning and outplacement services), participation in all Company benefit plans and programs will terminate upon the termination of your employment except to the extent otherwise expressly provided in such plans or programs and subject to any vested rights you may have under the terms of such plans or programs.

(g)Resignation From Official Positions.  If your employment with the Company terminates for any reason, you shall be deemed to have resigned at that time from any and all officer or director positions that you may have held with the Company and all board seats or other positions in other entities you held on behalf of the Company. If, for any reason, this paragraph 8(g) is deemed insufficient to effectuate such resignation, you agree to execute, upon the request of the Company, any documents or instruments that the Company may deem necessary or desirable to effectuate such resignation or resignations, and you hereby authorize the Corporate Secretary to execute any such documents or instruments as your attorney-in-fact.

9.Severance Contingent on Release.  Any severance benefits to be provided under the Company’s Executive Severance Plan, as described in paragraphs 8(e)(ii) through (viii) shall be provided only if you (or in the case of your death or Disability, your legal representative, if applicable) execute and do not later revoke or materially violate a release 

 

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of claims in the form of that certain Form of Release attached to the Company’s Executive Severance Plan (with such changes as the Company may determine to be required or reasonably advisable in order to make the release enforceable and otherwise compliant with applicable law) (the “Release”).  The Release must be executed by you and become effective and irrevocable in accordance with its terms no later than the deadline specified at the time of the termination of your employment (the “Release Period”).  In the event that the Release Period commences in one calendar year and ends in a second calendar year, the payment of the severance benefits set forth in paragraphs 8(e)(ii) through (viii) shall, to the extent required to comply with Section 409A of the Internal Revenue Code, be paid in the second calendar year, or such later date as may be required by paragraph 20.    

10.Change in Control Protections.  You shall be included in and covered by the Company’s Executive Change in Control Plan (the "CIC Plan"), which is incorporated herein by reference. Your Termination Pay Multiple, as defined in the CIC Plan, will be at least “2”.  In the event that the CIC Plan is terminated prior to the termination of your employment or during the Term you are excluded therefrom for any reason, the Company agrees to promptly amend this Agreement so that you are similarly covered and eligible for the same benefits and protection thereunder.

11.Company’s Policies.  You agree that, during your employment hereunder, you will comply in all material respects with all of the Company’s written conduct policies, including, but not limited to, the Company’s Code of Ethics.

12.Indemnification; Liability Insurance.  If you are made a party to, are threatened to be made a party to, receive any legal process in, or receive any discovery request or request for information in connection with, any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that you were an officer, director, employee, or agent of the Company, or were serving at the request of or on behalf of the Company, the Company shall indemnify and hold you harmless to the fullest extent permitted or authorized by the Company’s Articles of Incorporation or Code of Regulations or, if greater, by the laws of the State of Tennessee, against all costs, expenses, liabilities and losses you incur in connection therewith. Such indemnification shall continue even if you have ceased to be an officer, director, employee or agent of the Company, and shall inure to the benefit of your heirs, executors and administrators. The Company shall reimburse you for all costs and expenses you incur in connection with any Proceeding within twenty (20) business days after receipt by the Company of a written request for such reimbursement and appropriate documentation associated with such expenses. In addition, the Company agrees to maintain a director’s and officer’s liability insurance policy or policies covering you at a level and on terms and conditions no less favorable than the Company provides its directors and senior-level officers currently (subject to any future improvement in such terms and conditions), until such time as legal or regulatory actions against you are no longer permitted by law.

13.Notices.  All notices under this Agreement must be given in writing, by personal delivery or by registered mail, return receipt requested and postage prepaid, if to you, to the 

 

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address shown on this Agreement (or any other address designated in writing by you), with a copy to any other person you designate in writing, and, if to the Company, to your Reporting Senior to the address shown on this Agreement (or any other address designated in writing by the Company), with a copy, to the attention of the Company’s Chief Human Resources Officer.  Any notice given by mail shall be deemed to have been given three (3) days following such mailing.

14.Assignment.  This is an agreement for the performance of personal services by you and may not be assigned by you, without the prior written consent of the Company, other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by your legal representatives. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in the immediately following sentence, this Agreement shall not be assignable by the Company without your prior written consent. The Company may assign this Agreement to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, provided that the Company requires such successor to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 

15.Governing Law and Venue.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee without reference to its choice of law principles.  Further, the parties agree that any matter arising out of or relating to this Agreement shall be subject to the sole and exclusive jurisdiction and venue of a state or federal court sitting in Knox County, Tennessee, and you hereby waive any objection that you might have now or hereafter with respect to jurisdiction, venue or forum.

16.No Implied Contract.  Nothing contained in this Agreement shall be construed to impose any obligation on the Company or you to renew this Agreement or any portion thereof. The parties intend to be bound only upon execution of a written agreement and no negotiation, exchange of draft or partial performance shall be deemed to imply an agreement. Neither the continuation of employment nor any other conduct shall be deemed to imply a continuing agreement upon the expiration of the Term.  

17.Entire Understanding.  Except where specifically stated otherwise herein, this Agreement contains the entire understanding of the parties hereto relating to the subject matter contained in this Agreement, and can be changed only by a writing signed by both parties.  

18.Void Provisions.  If any provision of this Agreement, as applied to either party or to any circumstances, shall be found by a court of competent jurisdiction to be unenforceable but would be enforceable if some part were deleted or the period or area of application were reduced, then such provision shall apply with the modification necessary to make it enforceable, and any unenforceability shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.

 

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19.Deductions and Withholdings.  All amounts payable under this Agreement shall be paid less deductions and income and payroll tax withholdings as may be required under applicable law.

20.Section 409A of the Code.  It is the Company’s intent that this Agreement be exempt from the application of, or otherwise comply with, the requirements of Section 409A of the Internal Revenue Code.   In particular, any expense eligible for reimbursement must be incurred, or any entitlement to a benefit must be used, during the Term (or the applicable expense reimbursement or benefit continuation period provided in this Agreement). The amount of the reimbursable expense or benefit to which you are entitled during a calendar year will not affect the amount to be provided in any other calendar year, and your right to receive the reimbursement or benefit is not subject to liquidation or exchange for another benefit. Provided the requisite documentation is submitted, the Company will reimburse the eligible expenses on or before the last day of the calendar year following the calendar year in which the expense was incurred.  Any payments and benefits provided pursuant to paragraph 8 shall be subject to the applicable provisions regarding Section 409A of the Internal Revenue Code set forth in Section 21 of the Executive Severance Plan. 

If the foregoing correctly sets forth our understanding, please sign, date and return an original executed copy to me for our records.

Sincerely yours,

SCRIPPS NETWORKS INTERACTIVE, INC.

		
	
 
	
 

/s/ Kenneth W. Lowe

Kenneth W. Lowe

Chairman, Chief Executive Officer and President

 

		
	
ACCEPTED AND AGREED:

	
 

	
/s/ Lori Hickok

	
Lori Hickok

	
 

	
Dated:  
	
7/28/17sni-ex1050_294.htm

Exhibit 10.50

Executive Severance Plan Effective July 27, 2017 scrippsnetworks interactive

 

 

 

 

Scripps Networks Interactive, Inc.

Executive Severance Plan

(As Amended and Restated effective July 27, 2017)

1.ESTABLISHMENT; PURPOSE.  

(a)Establishment.  Scripps Networks Interactive, Inc. (the "Company") established the Scripps Networks Interactive, Inc. Executive Severance Plan (the "Plan") effective January 1, 2011.  The Company amended and restated the Plan effective January 1, 2012, November 14, 2012, March 14, 2013, October 6, 2014 and February 3, 2017 and further amends and restates the Plan effective July 27, 2017, as set forth in this document.

(b)Purpose.  The Plan is a welfare benefit plan under ERISA (as defined below) that is designed to provide financial protection in the event of unexpected job loss to certain employees of the Company and its U.S. Affiliates who are expected to make substantial contributions to the success of the Company and thereby provide for stability and continuity of management. 

2.DEFINITIONS.  

For purposes of the Plan, the following terms have the meanings set forth below:

	
•
	
"2014 Voluntary Early Retirement Window Program" means the Scripps Networks Interactive, Inc. 2014 Voluntary Early Retirement Window Program.

	
•
	
"Accrued Benefits" has the meaning given that term in Section 4(a) hereof.

	
•
	
"Affiliate" means any company or other entity controlled by, controlling or under common control with the Company.

	
•
	
"Base Salary" means the Participant's annual rate of base salary in effect as of the Date of Termination, but, solely with respect to a Group I Participant, prior to any reduction to Base Salary that would qualify as a Good Reason termination event.

	
•
	
"Benefit Continuation Period" means, with respect to a Participant, the number of months in the applicable benefit continuation period set forth in Exhibit A hereto.  

 

	
 
	
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•
	
"Cause" shall mean exclusively: (i) embezzlement, fraud or other conduct that would constitute a felony (other than traffic-related citations); (ii) willful unauthorized disclosure of Confidential Information; (iii) material breach by a Participant of the terms of the Plan or the Participant's Employment Agreement; (iv) gross misconduct or gross neglect in the performance of a Participant's duties of employment; (v) willful failure to cooperate with a bona fide internal investigation or investigation by regulatory or law enforcement authorities, after being instructed by the Company or an Affiliate to cooperate, or the willful destruction or failure to preserve documents or other material reasonably known to be relevant to such an investigation, or the willful inducement of others to fail to cooperate or to destroy or fail to produce documents or other material; or (vi) willful and material violation of the Company’s or an Affiliate's written conduct policies, including but not limited to the Company’s Employment Handbook and Ethics Code.  The Company or Affiliate will give a Participant written notice prior to terminating the Participant's employment pursuant to (iii), (iv), (v), or (vi) of the immediately preceding sentence, setting forth the nature of any alleged failure, breach or refusal in reasonable detail and the conduct required to cure.  Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, the Participant shall have 20 business days from the giving of such notice within which to cure any such failure, breach or refusal; provided, however, that, if the Company or Affiliate reasonably expects irreparable injury from a delay of 20 business days, the Company or Affiliate may give the Participant notice of such shorter period within which to cure as is reasonable under the circumstances.

	
•
	
"Change in Control Plan" means the Scripps Networks Interactive, Inc. Executive Change in Control Plan, and any successor plan thereto, including the Scripps Networks, Interactive, Inc. 2012 Executive Change in Control Plan, as any of the same may be amended from time to time.

	
•
	
"Code" means the Internal Revenue Code of 1986, as amended.

	
•
	
"Committee" means the Company's Employee Benefits Committee, or its delegate.

	
•
	
"Company" means Scripps Networks Interactive, Inc. and any successor to its business or assets, by operation of law or otherwise.

	
•
	
"Compensation Committee" means the Compensation Committee of the Board of Directors of the Company, or its delegate.

	
•
	
"Confidential Information" shall have the meaning given that term in Section 7(a) hereof.

	
•
	
"Date of Termination" means (i) if a Group I Participant voluntarily resigns for Good Reason, or if a Participant's employment is terminated by the Company with or without Cause, the date specified in the Notice of Termination; (ii) if a Group I Participant voluntarily resigns without Good Reason or a Group II Participant voluntarily resigns for any reason (in either case not in connection with the 2014 Voluntary Early Retirement Window Program), the 

	
 
	
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date specified in the Notice of Termination, provided that on such a voluntary resignation, the Company may, in its sole discretion, make such termination effective on any date it elects in writing, between the date of the notice and the proposed date of termination specified in the notice; (iii) if the Participant's employment is terminated by reason of death, the date of death of the Participant; (iv) if the Participant's employment is terminated by the Company due to Disability, 30 calendar days after Notice of Termination is given (provided that the Participant shall not have returned to the full-time performance of the Participant's duties during such 30 calendar day period); or (v) if the Participant voluntary terminates his/her employment in accordance with the terms, and subject to the conditions, of the 2014 Voluntary Early Retirement Window Program, the date specified by the Company.

	
•
	
"Disability" shall be defined by reference to the Company's employee long-term disability plan covering the Participant.  

	
•
	
"Effective Date" means January 1, 2011.

	
•
	
"Eligible Employee" means an individual who is described as such in Section 3(a) hereof.  

	
•
	
"Employee Matters Agreement" means the Employee Matters Agreement by and between The E. W. Scripps Company and the Company.

	
•
	
"Employment Agreement" means, with respect to any Participant, an employment agreement between the Participant and the Company or its Affiliates, as amended from time to time.  

	
•
	
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

	
•
	
"EWS Group" has the meaning given that term in the Employee Matters Agreement.

	
•
	
"Financial Planning Stipend" means, with respect to a Participant, the applicable financial planning stipend set forth in Exhibit A hereto.

	
•
	
"Former EWS Employee" has the meaning given that term in the Employee Matters Agreement.

	
•
	
"Good Reason" means, except as otherwise provided in a Participant’s Employment Agreement with specific reference to the Plan, without the Participant's consent (other than in connection with the termination or suspension of the Participant's employment or duties for Cause or in connection with the Participant’s Disability) exclusively: (i) a material diminution in the Participant's base salary or target annual incentive opportunity; (ii) a material diminution in the Participant’s authority, duties, or responsibilities; (iii) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Participant is required to report; (iv) a requirement that the Participant report to someone 

	
 
	
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else other than the Participant’s supervisor or similar positions then in effect that results in a material diminution in the Participant’s reporting structure; (v) a material diminution in the budget over which the Participant retains authority (except for good faith budget adjustments necessitated by the legitimate business needs of the Company); (vi) a material change in geographic location at which the Participant must perform services from the Company's offices at which the Participant was principally employed; or (vii) any other action or inaction that constitutes a material breach by the Company of the terms of the Participant's Employment Agreement; provided, however, that no such event described above shall constitute Good Reason unless: (1) the Participant gives Notice of Termination to the Company specifying the condition or event relied upon for such termination within 90 calendar days after the initial existence of such event; and (2) the Company fails to cure the condition or event constituting Good Reason within 30 calendar days after receipt of  the Participant's Notice of Termination.

	
•
	
“Government Agency” means the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Financial Industry Regulatory Authority, the U.S. Securities and Exchange Commission, any other self-regulatory organization or any other federal, state or local governmental agency or commission.

	
•
	
"Group I Participant" means a Participant whose Employment Agreement, as in effect immediately prior to the Participant's termination of employment with the Company and its U.S. Affiliates, provides for payment of severance in connection with a termination of employment by the Participant for "good reason", as defined in the Employment Agreement.

	
•
	
"Group II Participant" means a Participant who is not a Group I Participant.

	
•
	
"Notice of Termination" means a written notice in accordance with Section 16 of the Plan which (i) indicates the specific termination provision in the Plan relied upon; (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant's employment under the provision so indicated; and (iii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 90 calendar days, and not fewer than 30 calendar days, after the giving of such notice).  The failure by the Participant or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Participant or the Company, respectively, hereunder or preclude the Participant or the Company, respectively, from asserting such fact or circumstance in enforcing the Participant's or the Company's rights hereunder. 

	
•
	
"Participant" means an Eligible Employee who meets the eligibility requirements and other conditions of Section 3 hereof, until such time as the Eligible Employee's participation ceases in accordance with Section 3(b) hereof.  

	
 
	
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•
	
"Pro-Rated Annual Incentive" means the product of (i) the annual incentive that would have been payable under the annual incentive plan of the Company or a U.S. Affiliate covering the Participant for the fiscal year during which the Date of Termination occurs if the Participant had remained employed for the entire year (and any additional period of time necessary to be eligible to receive such annual incentive for such fiscal year), based on actual performance during the entire fiscal year and without regard to any discretionary adjustments that have the effect of reducing the amount of the annual incentive (other than discretionary adjustments applicable to all similarly-situated executives who did not terminate employment), and (ii) a fraction, the numerator of which is the number of calendar days in the Company's fiscal year through (and including) the Participant's Date of Termination, and the denominator of which is 365.  

	
•
	
"Qualified Termination" means any termination of a Participant’s employment (i) by the Company or its Affiliates without Cause, or by reason of the Participant's death or Disability, or (ii) solely with respect to a Group I Participant, by the Participant for Good Reason.  Notwithstanding the foregoing, the termination of a Participant’s employment shall not be considered a Qualified Termination for any purpose of the Plan if such termination of employment is (x) on account of the Participant’s mandatory retirement in accordance with the Company’s mandatory retirement program, if any, applicable to the Participant, or the Participant’s voluntary termination of employment, with or without Good Reason, on or after attaining age 65, in each case other than during the Protection Period as defined in Section 17(b) of this Plan, or (y) of the Participant’s own initiative for any reason other than Good Reason at any time.  Notwithstanding anything in this paragraph to the contrary, a voluntary termination of employment in accordance with the terms, and subject to the conditions, of the 2014 Voluntary Early Retirement Window Program shall be treated as a "Qualified Termination" for the purposes of the Plan.

	
•
	
"Release" means the Confidential Release Agreement in the form attached as Exhibit B to the Plan (with such changes as the Company may determine to be required or reasonably advisable in order to make the release enforceable and otherwise compliant with applicable law).  Notwithstanding the foregoing, for any Qualified Termination that occurs in accordance with the terms, and subject to the conditions, of the 2014 Voluntary Early Retirement Window Program, the term Release means the Confidential Release Agreement in a form provided by the Company.

	
•
	
"Release Deadline" means the 52nd calendar day after the Participant's Date of Termination.

	
•
	
"Restriction Period" means, with respect to any Participant, the period commencing on the Participant's Date of Termination of employment for any reason and ending on the first anniversary thereof. 

	
 
	
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•
	
"Section 409A" means Section 409A of the Code and any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section 409A by the U.S. Department of Treasury or the Internal Revenue Service.

	
•
	
"Severance Multiple" means, with respect to a Participant, the applicable severance multiple set forth in Exhibit A hereto.  

	
•
	
"Talent Framework Level" means a level specified from time to time in the Company's Talent Framework and Title Convention (as the same shall be reviewed annually by the Compensation Committee).

	
•
	
"Target Annual Commission" means, with respect to any Participant, the Participant's target annual commission opportunity under the annual commission plan of the Company or a U.S. Affiliate applicable to the Participant for the fiscal year which includes the Date of Termination, or, if no target has been set with respect to the Participant for such fiscal year, the target annual commission opportunity for the immediately preceding fiscal year; provided that, solely with respect to a Group I Participant, the Participant's Target Annual Commission shall be determined prior to any reduction in the Participant's target annual commission opportunity that would qualify as a Good Reason termination event.  For the avoidance of doubt, Target Annual Commission does not include bonuses, including, but not limited to, any MBO or stretch bonus opportunity provided to a Participant.

	
•
	
"Target Annual Incentive" means, with respect to any Participant, the Participant's target annual incentive opportunity under the annual incentive plan of the Company or a U.S. Affiliate applicable to the Participant for the fiscal year which includes the Date of Termination, or, if no target has been set with respect to the Participant for such fiscal year, the target annual incentive opportunity for the immediately preceding fiscal year; provided that, solely with respect to a Group I Participant, the Participant's Target Annual Incentive shall be determined prior to any reduction in the Participant's target annual incentive opportunity that would qualify as a Good Reason termination event.

	
•
	
"Transition Date" means, with respect to a Participant, the applicable transition date set forth in Exhibit A hereto.

	
•
	
"U.S. Affiliate" means any Affiliate that is organized under the laws of the United States.

3. ELIGIBILITY.

(a)Eligible Employees.  Eligibility to participate in the Plan shall be limited to individuals employed by the Company and its U.S. Affiliates and serving in positions in Talent Framework Levels set forth in Exhibit A hereto, as in effect from time to time.  Notwithstanding the immediately preceding sentence to the contrary, an Eligible Employee shall not become a Participant if the Company’s Chief Executive Officer designates such individual as ineligible for the Plan in writing within 30 calendar days after the Effective Date.      

	
 
	
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(b)Duration of Participation. An Eligible Employee shall cease to be a Participant in the Plan, if (i) the Participant ceases to be employed by the Company or a U.S. Affiliate for any reason other than a Qualified Termination, or (ii) subject to Section 17 of the Plan, his or her status as a Participant ceases due to the Company providing such Participant with a notice in accordance with Section 16 of the Plan notifying the Participant that he or she will no longer be eligible to participate in the Plan; provided, however that the Participant shall continue to participate in the Plan until 180 calendar days after receipt of such notice of termination of his or her participation in the Plan.  Notwithstanding anything herein to the contrary, a Participant who is entitled as a result of a Qualified Termination to receive amounts and benefits under the Plan shall remain a Participant in the Plan until the amounts and benefits payable under the Plan have been paid or provided to the Participant in full.  Any severance payments or benefits to be provided to a Participant under the Plan are subject to all of the terms and conditions of the Plan, including Section 8(b).

(c) Employment Rights.  Participation in the Plan does not alter the status of a Participant as an at-will employee, and nothing in the Plan will reduce or eliminate the right of the Company and its Affiliates to terminate a Participant's employment at any time for any reason or the right of a Participant to resign at any time for any reason.

4. SEVERANCE BENEFITS. 

Subject to compliance with Section 5 hereof, and further subject to compliance with Section 7 hereof and any restrictive covenants that may be applicable pursuant to the Participant's Employment Agreement, in the event that a Participant incurs a Qualified Termination, the Participant (or his or her estate or legal representative, if applicable) shall be entitled to the compensation and benefits set forth in this Section 4:  

(a)Accrued Benefits:  The sum of: (i) the portion of the Participant's Base Salary earned through the Date of Termination, to the extent not theretofore paid; (ii) the amount of any annual incentive compensation or annual commission under the annual incentive plan or commission plan of the Company or a U.S. Affiliate applicable to the Participant that has been earned by the Participant for a completed fiscal year preceding the Date of Termination, but has not yet been paid to the Participant; and (iii) any accrued paid vacation, sabbatical, holiday and other paid-time off to the extent not theretofore paid (collectively, the "Accrued Benefits").  The Accrued Benefits shall be paid in a single lump sum within 30 calendar days after the Participant's Date of Termination, or as otherwise may be provided in a valid deferral election made pursuant to the terms of the Company's deferred compensation plan.

(b)Pro-Rated Annual Incentive.  A Pro-Rated Annual Incentive, which, subject to Section 5 hereof, shall be paid in a single lump sum at the same time that payments are made to other participants in the annual incentive plan for that fiscal year (pursuant to the terms of the applicable plan but in no event later than March 15 of the fiscal year immediately following the fiscal year during which the Date of Termination occurs), or as otherwise may be provided in a valid deferral election made pursuant to the terms of the Company's deferred compensation plan, and shall be in lieu of any annual incentive that the Participant would have otherwise 

	
 
	
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been entitled to receive under the terms of the annual incentive plan covering the Participant for the fiscal year during which the Date of Termination occurs. 

(c)Severance Payment.  As additional severance (and not in lieu of any annual incentive for the fiscal year in which the Date of Termination occurs), and subject to Section 5 hereof, a severance payment equal to the sum of (i) the Participant's Base Salary multiplied by the Participant's Severance Multiple, (ii) if the Participant is eligible to participate in a commission plan or arrangement sponsored by the Company or a U.S. Affiliate immediately prior to the Date of Termination, 100% of the Participant's Target Annual Commission, multiplied by the Participant’s Severance Multiple, and (iii) if the Participant is not eligible to participate in a commission-based plan or arrangement sponsored by the Company or a U.S. Affiliate immediately prior to the Date of Termination, the Participant's Target Annual Incentive multiplied by the Participant's Severance Multiple.   The severance payment determined in accordance with this Section 4(c) shall be paid in a single lump sum within 20 calendar days after the Release Deadline.

(d)Health Care Coverage. Subject to Section 5 hereof, as long as the Participant (or his or her estate or legal representative) pays the required full monthly premiums (under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) or otherwise) for coverage, the Company shall provide the Participant and, as applicable, the Participant's eligible dependents, with continued medical, vision and dental coverage during the Benefit Continuation Period, on the same basis as provided to the Company's active executives and their dependents; provided, however, that in no event shall the Company provide any such coverage to a Participant (or a Participant's eligible dependents) after the date that the Participant first becomes eligible for Medicare or for any medical, vision or dental coverage under a plan maintained by another employer or his or her spouse's employer.  If the Participant is early retiree-eligible at the time of his or her termination (age 55 or greater with at least 10 years of service), the Participant will have the option to elect coverage under the Early Retiree Medical Plan in lieu of COBRA coverage.  For purposes of clarity, the Early Retiree Medical Plan may be discontinued in the near term.  In the event that the Early Retiree Medical Plan is discontinued, the Company will provide all affected Participants at least 90 calendar days’ notice of such discontinuation.  Information on the medical plans available through the health insurance marketplace established under the Affordable Care Act will be provided.  For purposes of clarity, however, with respect to a Participant hired by the Company or any of its U.S. Affiliates on or after March 14, 2013 who is a Former EWS Employee, “service” for purposes of the preceding sentence shall not include any period of such Participant’s prior employment with the EWS Group.  In addition, subject to Section 5 hereof, within 20 calendar days after the Release Deadline, the Company shall pay to the Participant a lump sum cash payment equal to the product of (i) the monthly medical, vision and dental premiums based on the level of coverage in effect for the Participant (e.g., employee only or family coverage) on the Date of Termination, and (ii) the number of months in the Benefit Continuation Period; provided, however, that to the extent necessary to avoid a violation of Section 409A, any cash payment attributable to medical, vision and dental insurance premiums for periods more than 18 months 

	
 
	
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after a Participant's Date of Termination shall be paid in monthly installments at the same time that such premiums are due and payable. 

(e)Life Insurance.  Subject to Section 5 hereof, the Company shall take all steps reasonably necessary to continue the life insurance coverage applicable to the Participant on the Date of Termination (and if the policy cannot be continued in its then-current form, the Company shall exercise any required conversion features to continue the policy), at no cost to the Participant, for a number of years following the Date of Termination equal to the Participant's Severance Multiple.  The amount of such coverage will be reduced by the amount of life insurance coverage furnished to the Participant at no cost by a third party employer.

(f)Financial Planning.  Subject to Section 5 hereof, an amount equal to the Participant's Financial Planning Stipend, which is intended to cover the approximate cost of financial planning services for the Participant for a period of one year after the Date of Termination. The Financial Planning Stipend shall be paid in a single lump sum within 20 calendar days after the Release Deadline.      

(g)Outplacement.  Subject to Section 5 hereof, the Company shall, at its sole expense as incurred, provide the Participant with outplacement services from a recognized outplacement service provider through the Transition Date, the scope of such services to be determined by the Company.  

5.RELEASE.  

Any compensation and benefits to be provided under Sections 4(b), 4(c), 4(d), 4(e), 4(f) and 4(g) hereof shall be provided only if the Participant (or, in the case of the Participant's death or Disability, the Participant's legal representative, if applicable) timely executes and does not timely revoke a Release. The Release must be signed by the Participant or his or her legal representative, if applicable, and become effective and irrevocable in accordance with its terms (taking into account any applicable revocation period set forth therein), no later than the Release Deadline.  If the Participant or his or her legal representative, if applicable, fails to execute and furnish the Release, or if the Release furnished by the Participant or his or her legal representative, if applicable, has not become effective and irrevocable in accordance with its terms (taking into account any applicable revocation period set forth therein) by the Release Deadline, or if the Participant materially breaches any provision of the Release, then the Participant will not be entitled to any payment or benefit under the Plan other than the Accrued Benefits.  

6.NO MITIGATION.  

In no event shall the Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Participant under any of the provisions of the Plan and, except as otherwise specifically provided in Section 4(d) and Section 4(e) of the Plan, such amounts shall not be reduced whether or not the Participant obtains other employment, unless such employment is with the Company or any of its Affiliates.

	
 
	
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7.RESTRICTIVE COVENANTS.

(a)Confidentiality.  As a condition of participation in the Plan, each Participant agrees that, during his or her employment with the Company or any of its Affiliates or at any time thereafter, (i) the Participant shall not use for any purpose other than the duly authorized business of the Company, or disclose to any third party, any information relating to the Company or any of its Affiliates which is proprietary to the Company or any of its Affiliates (“Confidential Information”), including any trade secret or any written (including in any electronic form) or oral communication incorporating Confidential Information in any way (except as may be required by law or in the performance of the Participant's duties for the Company or any of its Affiliates consistent with the Company’s policies); and (ii) the Participant will comply with any and all confidentiality obligations of the Company to a third party, whether arising under a written agreement or otherwise. Information shall not be deemed Confidential Information which (x) is or becomes generally available to the public other than as a result of a disclosure by the Participant or at his or her direction or by any other person who directly or indirectly receives such information from the Participant; or (y) is or becomes available to the Participant on a non-confidential basis from a source which is entitled to disclose it to the Participant. A Participant's obligations under this Section 7(a) are in addition to, and not in limitation of or preemption of, any other obligations of confidentiality which the Participant may have to the Company or its Affiliates under general legal or equitable principles, and federal, state or local law.

Notwithstanding any other provisions in this Plan, the Plan does not limit or interfere with a Participant’s right, without notice to or authorization of the Company, to communicate in good faith with a Government Agency to report a possible violation of law, to participate in any investigation or proceeding that may be conducted by a Government Agency, including by providing documents or other information, or to file a charge or complaint with a Government Agency.  Furthermore, Participants are hereby informed, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that (1) individuals shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; (2) individuals shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (3) if an individual files a lawsuit for retaliation by an employer for reporting a suspected violation of law, said individual may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, provided that said individual files any document containing the trade secret under seal and does not disclose the trade secret other than pursuant to court order.

(b)Non-Competition; Non-Solicitation.  As a condition of participation in the Plan, each Participant agrees that, during the Restriction Period, the Participant shall not directly or indirectly engage in or participate as an owner, partner, stockholder, officer, employee, director, agent of or consultant for any business competitive with any business of the Company 

	
 
	
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or any of its Affiliates, or for any customer of the Company or any of its Affiliates, without the prior written consent of the Company; provided, however, that this provision shall not prevent a Participant from investing as a less-than-one-percent (1%) stockholder in the securities of any company listed on a national securities exchange or quoted on an automated quotation system.  Notwithstanding the foregoing, (i) a Group I Participant's obligations under the first sentence of this Section 7(b) (but not under any other provision of the Plan) shall cease if the Group I Participant terminates his or her employment for Good Reason or the Company terminates the Group I Participant's employment without Cause and the Group I Participant notifies the Company in writing, prior to the Company's payment of any severance benefits pursuant to the Plan, that the Group I Participant has elected to waive his or her right to receive any severance benefits pursuant to the Plan; (ii) a Participant's obligations under the first sentence of this Section 7(b) (but not under any other provision of the Plan) shall cease if his or her employment terminates in accordance with the terms, and subject to the conditions, of the 2014 Voluntary Early Retirement Window Program; and (iii) a Participant's obligations under the first sentence of this Section 7(b) (but not under any other provision of the Plan) shall cease if his or her employment terminates in connection with a reduction in force on or before September 30, 2015.  Each Participant also agrees that, during the Restriction Period, he or she shall not, directly or indirectly: (x) employ or solicit the employment of any person who is then or has been within six (6) months prior thereto, an employee, independent contractor or consultant of the Company or any of its Affiliates; or (y) interfere with, disturb or interrupt the relationships (whether or not such relationships have been reduced to formal contracts) of the Company or any of its Affiliates with any talent, production companies, vendors, advertisers (including, without limitation their agencies or representatives), sponsors, distributors, customers, suppliers, agents, consultants or independent contractors.

(c)Non-Disparagement. As a condition of participation in the Plan, each Participant agrees that, during his or her employment with the Company or any of its Affiliates or at any time thereafter, except to the extent permitted by Section 7(a) above, the Participant shall not make, nor cause any one else to make or cause on the Participant's behalf, any public disparaging or derogatory statements or comments regarding the Company or its Affiliates, or their respective officers or directors.

(d)Adequate Consideration.  As a condition of participation in the Plan, each Participant agrees and acknowledges that the promises and obligations made by the Company in the Plan (specifically including, but not limited to, the payments and benefits provided for under Section 4 hereof) constitute sufficient consideration for the covenants contained in this Section 7. Each Participant further acknowledges that it is not the Company's intention to interfere in any way with his or her employment opportunities, except in such situations where the same conflict with the legitimate business interests of the Company or any of its Affiliates. Each Participant agrees that he or she will notify the Company in writing if he or she has, or reasonably should have, any questions regarding the applicability of this Section 7. 

(e)Revision.  As a condition of participation in the Plan, each Participant agrees that if, at the time of enforcement of this Section 7, a court holds that the restrictions stated herein are 

	
 
	
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unreasonable under circumstances then existing, the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or geographical area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and geographical area permitted by law. 

(f)Enforcement.  As a condition of participation in the Plan, each Participant agrees that any breach or threatened breach of this Section 7 by such Participant will cause injury to the Company and its Affiliates for which money damages alone will not provide an adequate remedy and that if the Participant commits or threatens to commit any such breach, the Company or any of its Affiliates shall have the right to have the provisions of this Section 7 specifically enforced by any court having jurisdiction (without posting a bond or other security). Each Participant also agrees that he or she will not assert in any such enforcement action that the Company or any of its Affiliates have an adequate remedy in damages; and that such rights and remedies will be in addition to and not in lieu of any other rights or remedies available to the Company or any of its Affiliates at law or in equity.  If a Participant violates any of the covenants in this Section 7, the Participant agrees to an extension of such covenant on the same terms and conditions for an additional period of time equal to the time that elapses from the commencement of such violation to the later of (i) the termination of such violation or (ii) the final resolution of any litigation stemming from such violation. The Company's payment obligations and the Participant's right, if any, to severance benefits under Sections 4(b), 4(c), 4(d), 4(e), 4(f) and 4(g) hereof shall cease in the event of a material breach by the Participant of any provision of this Section 7. Any such cessation of payment shall not reduce any monetary damages that may be available to the Company as a result of such breach.

8.EFFECT ON OTHER PLANS, AGREEMENTS AND BENEFITS.  

(a)Relation to Other Benefits.  Unless otherwise provided herein, nothing in the Plan shall prevent or limit a Participant’s continuing or future participation in any plan, program, policy or practice provided by the Company or its Affiliates for which the Participant may qualify, nor, except as explicitly set forth in the Plan, shall anything herein limit or otherwise affect such rights as a Participant may have under any other contract or agreement with the Company or any of its Affiliates.  Without limiting the generality of the foregoing, the Participant's resignation under the Plan with or without Good Reason shall in no way affect the Participant's ability to terminate employment by reason of the Participant's "retirement" under, or to be eligible to receive benefits under, any compensation and benefits plans, programs or arrangements of the Company or its Affiliates that may provide benefits upon the Participant's "retirement", including, without limitation, any retirement or pension plans or arrangements or substitute plans adopted by the Company, its Affiliates or their respective successors, and any Qualified Termination which also qualifies as a termination of employment for Good Reason shall be treated as such even if it is also a "retirement" for purposes of any such plan.  Any economic or other benefit to a Participant under the Plan, other than the Accrued Benefits, will not be taken into account in determining any benefits to which the Participant may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company and its Affiliates, unless provided otherwise in any such plan.  

	
 
	
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(b)Non-Duplication. Notwithstanding the foregoing provisions of Section 8(a) above, and except as specifically provided below, any severance payments or benefits received by a Participant pursuant to the Plan shall be in lieu of any general severance policy or other severance plan maintained by the Company or its Affiliates (other than a stock option, restricted stock, share or unit, performance share or unit, supplemental retirement, deferred compensation or similar plan or agreement which may contain provisions operative on a termination of the Participant's employment or may incidentally refer to accelerated vesting or accelerated payment upon a termination of employment); provided, however, that if a Participant incurs a Qualified Termination in circumstances under which the Participant becomes entitled to severance payments or benefits pursuant to the Change in Control Plan, then the Participant shall not be entitled to any severance payments or benefits under the Plan as a result of such Qualified Termination and, in lieu of, and not in duplication of, any severance payments or benefits the Participant would otherwise to be entitled to receive under the Plan, the Participant shall receive the severance payments or benefits to which the Participant is entitled under the Change in Control Plan, payable or provided under the terms, and subject to the conditions, of the Change in Control Plan.   Further, notwithstanding the foregoing provisions of Section 8(a) above, if a Participant incurs a Qualified Termination in circumstances under which the Participant would become entitled to severance payments or benefits both pursuant to the Plan and pursuant to such Participant's Employment Agreement, then the Participant shall receive severance payments or benefits only under either the Plan or the Participant's Employment Agreement, whichever of those two arrangements would provide the Participant with the greater aggregate severance payments and benefits, payable or provided under the terms, and subject to the conditions, of either the Plan or the Participant's Employment Agreement, as applicable.  Any severance payments or benefits received by a Participant under the Plan pursuant to the immediately preceding sentence shall be in lieu of, and not in duplication of, any severance payments or benefits the Participant would otherwise be entitled to receive under the Participant's Employment Agreement; and any severance payments or benefits received by a Participant under the Participant's Employment Agreement pursuant to the immediately preceding sentence shall be in lieu of, and not in duplication of, any severance payments or benefits the Participant would otherwise be entitled to receive under the Plan.  

9.CERTAIN TAX MATTERS.

(a)Notwithstanding any provision of the Plan to the contrary, in the event that it shall be determined by the Accounting Firm that any Payment to a Participant would be subject to the Excise Tax, the Accounting Firm shall determine whether to reduce the aggregate amount of the Payments payable to such Participant under the Plan (the "Plan Payments") to the Reduced Amount.  The Plan Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that the Participant would have a greater Net After-Tax Benefit if the Participant's Plan Payments were reduced to the Reduced Amount.  If instead the Accounting Firm determines that the Participant would have a greater Net After-Tax Benefit if the Participant's Plan Payments were not reduced to the Reduced Amount, the Participant shall receive all Plan Payments to which the Participant is entitled under the Plan.  For purposes of 

	
 
	
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clarity, this Section 9 shall not apply to any Payments to a Participant pursuant to the Change in Control Plan, which Payments shall be made under the terms, and subject to the conditions, of the Change in Control Plan.

(b)If the Accounting Firm determines that the aggregate Plan Payments otherwise payable to a Participant should be reduced to the Reduced Amount pursuant to this Section 9, the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof.  All determinations made by the Accounting Firm under this Section 9 shall be binding upon the Company and the Participant and shall be made within fifteen (15) days after the Participant's Date of Termination.  The reduction of the Plan Payments to the Reduced Amount, if applicable, shall be made by first reducing, on a pro-rata basis, the cash payments under Sections 4(a), (b), (c) and (f), then reducing and cash payments and benefits under Section 4(d), and then reducing, on a pro-rata basis, any benefits under Section 4(e) and (g).  All fees and expenses of the Accounting Firm shall be borne solely by the Company. 

(c)Definitions. The following terms shall have the following meanings for purposes of this Section 9.

(i) "Accounting Firm" shall mean the Company’s then current independent outside auditors, or such other nationally recognized certified public accounting firm as may be designated by the Committee.

 

(ii) "Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

 

(iii) "Net After-Tax Benefit" shall mean the aggregate Value of all Payments to a Participant, net of all taxes imposed on the Participant with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, as determined by the Accounting Firm.

 

(iv) "Payment" shall mean any payment, benefit or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Participant, whether paid or payable pursuant to the Plan or otherwise.

 

(v) "Reduced Amount" shall mean the greatest amount of Plan Payments that can be paid that would not result in the imposition of the Excise Tax upon a Participant if the Accounting Firm determines to reduce Plan Payments pursuant to this Section 9.

 

(vi) "Value" of a Payment shall mean the economic present value of a Payment, as determined by the Accounting Firm for purposes of Section 280G of the Code.

 

	
 
	
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10.ADMINISTRATION.   

The Committee shall have complete discretion to interpret where necessary all provisions of the Plan (including, without limitation, by supplying omissions from, correcting deficiencies in, or resolving inconsistencies or ambiguities in, the language of the Plan), to make factual findings with respect to any issue arising under the Plan, to determine the rights and status under the Plan of Participants or other persons, to resolve questions (including factual questions) or disputes arising under the Plan and to make any determinations with respect to the benefits payable under the Plan and the persons entitled thereto as may be necessary for the purposes of the Plan. Without limiting the generality of the foregoing, the Committee is hereby granted the authority (i) to determine whether a particular employee is a Participant, and (ii) to determine if a person is entitled to benefits hereunder and, if so, the amount and duration of such benefits. The Committee may delegate, subject to such terms as the Committee shall determine, any of its authority hereunder to such person or persons from time to time as it may designate. In the event of such delegation, all references to the Committee in the Plan shall be deemed references to such delegates as it relates to those aspects of the Plan that have been delegated.  The Committee's determination of the rights of any person hereunder shall be final and binding on all persons.

11.CLAIMS FOR BENEFITS.  

(a) Filing a Claim. Any Participant or beneficiary who wishes to file a claim for benefits under the Plan shall file his or her claim in writing with the Committee.

(b) Review of a Claim.  The Committee shall, within 90 calendar days after receipt of such written claim (unless special circumstances require an extension of time, but in no event more than 180 calendar days after such receipt), send a written notification to the Participant or beneficiary as to its disposition. If the claim is wholly or partially denied, such written notification shall (i) state the specific reason or reasons for the denial, (ii) make specific reference to pertinent Plan provisions on which the denial is based, (iii) provide a description of any additional material or information necessary for the Participant or beneficiary to perfect the claim and an explanation of why such material or information is necessary, and (iv) set forth the procedure by which the Participant or beneficiary may appeal the denial of his or her claim, including, without limitation, a statement of the claimant’s right to bring an action under Section 502(a) of ERISA following an adverse determination on appeal.

(c)Appeal of a Denied Claim.  If a Participant or beneficiary wishes to appeal the denial of his or her claim, he or she must request a review of such denial by making application in writing to the Committee within 60 calendar days after receipt of such denial. Such Participant or beneficiary (or his or her duly authorized legal representative) may, upon written request to the Committee, review any documents pertinent to his or her claim, and submit in writing, issues and comments in support of his or her position. A Participant or beneficiary who fails to file an appeal within the 60-day period set forth in this Section 11(c) shall be prohibited from doing so at a later date or from bringing an action under ERISA. 

	
 
	
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(d)Review of a Claim on Appeal.  Within 60 calendar days after receipt of a written appeal (unless the Committee determines that special circumstances, such as the need to hold a hearing, require an extension of time, but in no event more than 120 calendar days after such receipt), the Committee shall notify the Participant or beneficiary of the final decision. The final decision shall be in writing and shall include (i) specific reasons for the decision, written in a manner calculated to be understood by the claimant, (ii) specific references to the pertinent Plan provisions on which the decision is based, (iii) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents relevant to the claim for benefits, and (iv) a statement describing the claimant’s right to bring an action under Section 502(a) of ERISA.

(e)Statute of Limitations.  Any Participant or beneficiary claim for benefits must be filed within two years of the Date of Termination.  Any lawsuit by a Participant or beneficiary must be filed after exhaustion of the above administrative remedies and within 180 days of the final decision.

12.PARTICIPANTS DEEMED TO ACCEPT PLAN.  

By accepting any payment or benefit under the Plan, each Participant and each person claiming under or through any such Participant shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Committee, the Compensation Committee, the Company or its Affiliates, in any case in accordance with the terms and conditions of the Plan.

13.SUCCESSORS.  

(a)Company Successors.  The Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company's obligations under the Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The term "Company," as used in the Plan, shall mean the Company as heretofore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by the Plan.

(b)Participant Successors.  The Plan shall inure to the benefit of and be enforceable by the Participant's personal or legal representatives, executors, administrators, successors, heirs, distributees and/or legatees.  The rights under the Plan are personal in nature and neither the Company nor any Participant shall, without the consent of the other, assign, transfer or delegate any rights or obligations hereunder except as expressly provided in this Section 13.  Without limiting the generality of the foregoing, the Participant's right to receive any benefits hereunder shall not be assignable, transferable or delegable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by his or her will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to 

	
 
	
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this Section 13(b), the Company shall have no liability or obligation to pay any amount so attempted to be assigned, transferred or delegated.

14.UNFUNDED PLAN STATUS.  

All payments pursuant to the Plan shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of participating in the Plan.

15.WITHHOLDING.  

The Company shall have the right to deduct and withhold from any amounts payable under the Plan such federal, state, local, foreign or other taxes as are required to be withheld pursuant to any applicable law or regulation.

16.NOTICE.  

For the purpose of the Plan, notices and all other communications provided for in the Plan shall be in writing and shall be deemed to have been duly given when actually delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the Chief Legal Officer at the Company's corporate headquarters address, and to the Participant (at the last address of the Participant on the Company's books and records).

17.AMENDMENTS; TERMINATION.  

(a)The Company reserves the right to amend, modify, suspend or terminate the Plan, in whole or in part, at any time, by action of a majority of the Compensation Committee; provided that no such amendment, modification, suspension or termination shall impair the rights of a Participant who has incurred a Qualified Termination unless such amendment, modification, suspension or termination is agreed to in a writing signed by the Participant and the Company. Notwithstanding the foregoing, except as otherwise provided in Section 4(d) above with respect to the Early Retiree Medical Plan or Section 17(b) below, the Company must provide all Participants with notice of its intention to terminate the Plan or amend the Plan in a manner that is materially adverse to all or any Participants, in each case in accordance with Section 16 of the Plan, 180 calendar days prior to such termination or material amendment. During the 180-day notice period, the Participants shall continue to participate in the Plan, without giving effect to any materially adverse amendment.

 

(b)Notwithstanding Section 17(a) to the contrary, the Company may not amend, modify, suspend or terminate the Plan, in whole or in part in a manner that is materially adverse to any Participant (including the removal of an individual as a Participant) without the consent of such Participant during the period commencing on the date that the Company executes the Agreement and Plan of Merger dated as of July 30, 2017, among Scripps Networks Interactive, Inc., Discovery Communications, Inc. and Skylight Merger Sub, Inc. (the "Merger Agreement") and ending on the second anniversary of the consummation of the transactions contemplated by the Merger Agreement (the "Protection Period").  In the event that the Merger Agreement is terminated without the transactions contemplated therein being consummated, this 

	
 
	
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Section 17(b) will be void ab initio and of no further force or effect, without further action or notice.

 

18.GOVERNING LAW.  

Except to the extent preempted by federal law, the provisions of the Plan shall be governed and construed in accordance with the laws of the State of Tennessee.

19.VALIDITY AND SEVERABILITY. 

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

20.HEADINGS; INTERPRETATION.  

Headings in the Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.  Unless the context clearly requires otherwise, the masculine pronoun wherever used herein shall be construed to include the feminine pronoun.  

21.SECTION 409A.  

(a)It is intended that the payments and benefits provided under Section 4 of the Plan shall be exempt from, or comply with, the requirements of Section 409A.  The Plan shall be construed, administered and governed in a manner that effects such intent, and the Company shall not take any action that would be inconsistent with such intent.  Specifically, any taxable benefits or payments provided under the Plan are intended to be separate payments that qualify for the "short-term deferral" exception to Section 409A to the maximum extent possible, and to the extent they do not so qualify, are intended to qualify for the separation pay exceptions to Section 409A, to the maximum extent possible. To the extent that none of these exceptions (or any other available exception) applies, then notwithstanding anything contained herein to the contrary, and to the extent required to comply with Section 409A, if a Participant is a "specified employee," as determined under the Company's policy for identifying specified employees on his or her Date of Termination, then all amounts due under the Plan that constitute a "deferral of compensation" within the meaning of Section 409A, that are provided as a result of a "separation from service" within the meaning of Section 409A, and that would otherwise be paid or provided during the first six months following the Participant's separation from service, shall be accumulated through and paid or provided (together with interest at the applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the Date of Termination) on the first business day that is more than six months after the date of the Participant's separation from service (or, if the Participant dies during such six-month period, within 90 calendar days after the Participant's death).  

(b)A termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a 

	
 
	
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"separation from service" within the meaning of Section 409A and the Participant is no longer providing services (at a level that would preclude the occurrence of a "separation from service" within the meaning of Section 409A) to the Company or its Affiliates as an employee or consultant, and for purposes of any such provision of the Plan, references to a "termination," "termination of employment" or like terms shall mean "separation from service" within the meaning of Section 409A.

(c)With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A: (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; and (iii) such payments shall be made on or before the last day of the Participant's taxable year following the taxable year in which the expense occurred, or such earlier date as required hereunder.

(d)The payments and benefits provided under the Plan may not be deferred, accelerated, extended, paid out or modified in a manner that would result in the imposition of an additional tax under Section 409A upon Participants. Although the Company will use its best efforts to avoid the imposition of taxation, interest and penalties under Section 409A, the tax treatment of the benefits provided under the Plan is not warranted or guaranteed.  Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by a Participant (or any other individual claiming a benefit through the Participant) as a result of the Plan. 

(e)Whenever a payment under the Plan specifies a payment period with reference to a number of days (e.g., "payment shall be made within 20 calendar days"), the actual date of payment within the specified period shall be within the sole discretion of the Company. For purposes of Section 409A, the Participant's right to receive any "installment" payments pursuant to the Plan shall be treated as a right to receive a series of separate and distinct payments.

[END OF DOCUMENT]

	
 
	
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EXHIBIT A

 

CERTAIN DEFINED TERMS UNDER THE

SCRIPPS NETWORKS INTERACTIVE, INC.
EXECUTIVE SEVERANCE PLAN

					
	
Participant's Talent Framework Level
	
Severance Multiple
	
Benefit Continuation Period
	
Financial Planning Stipend
	
Transition Date 

	
C3
	
2.0
	
24 months
	
$15,000
	
12 months after Date of Termination

	
C2
	
2.0
	
24 months
	
$15,000
	
12 months after Date of Termination

	
C1
	
1.5
	
18 months
	
$10,000
	
12 months after Date of Termination

	
B8
	
1.5
	
18 months
	
$8,500
	
12 months after Date of Termination

	
B7
	
1.0
	
12 months
	
$8,500
	
6 months after Date of Termination

 

	
 
	
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