Document:

exv10w2

 

EXHIBIT 10.2

February 7, 2005

Richard F. Cummings

c/o Emmis Communications Corporation

3500 W. Olive Avenue, Suite 1450

Burbank, California 91505

     Re: Amendment to Employment Agreement

Dear Rick:

     This letter shall confirm our agreement to amend your employment agreement with Emmis
Operating Company dated March 1, 2002 (the “Agreement”), upon the terms and subject to the
conditions set forth in this letter (the “Amendment”).

     Except as otherwise provided below, this Amendment is effective upon execution by you. Any
capitalized words or phrases used and not defined in this Amendment shall have the meanings
ascribed to them in the Agreement. This shall confirm that the parties have agreed as follows:

1. The Term of the Agreement has been extended through February 29, 2008. After February 28, 2005,
“Contract Year” shall mean the twelve (12) month period commencing on March 1, 2005 and on each
anniversary thereof during the Term.

2. The Base Salary shall be increased to Four Hundred Ninety Five Thousand Dollars ($495,000) each
Contract Year during the Term, commencing with the Contract Year beginning March 1, 2005 (“FYE
06”).

3. After payment of any Contract Year Bonus earned for the period ending February 28, 2005, Section
6.2 shall be modified to reflect the following: Commencing with FYE 06, the target amount of the
Contract Year Bonus shall be increased to Three Hundred Forty One Thousand Five Hundred Dollars
($341,500) each Contract Year, Exhibit B to the Agreement shall be deleted and shall be of no
further force and effect, and the third and fourth sentences of Section 6.2 shall be deleted and
replaced with the following language:

     “Employer may pay all or a portion of any Contract Year Bonus in Shares in the same manner
utilized for other senior management level employees.”

Unless subsequently changed by the Compensation Committee, the performance goals for FYE 06 shall
be:

 

 

	 	 	 	 	 	 	 
	Target Bonus	 	Performance Goal
	1.

	 	$	239,050	 	 	Domestic Radio Station Operating Income Target

	2.

	 	$	102,450	 	 	Individual Performance (Discretionary)

Domestic Radio Station Operating Income or any other applicable performance targets or goals shall
be defined and determined by the Compensation Committee each Contract Year. The Compensation
Committee reserves the right to amend the performance goals to the extent it deems appropriate in
order to take into account any material acquisition, disposition, reorganization, recapitalization
or other material transaction involving Employer or its properties. Executive shall earn a certain
percentage of each Contract Year Bonus in accordance with the applicable bonus scale adopted by the
Employer for the subject Contract Year.

4. Section 6.3 shall be deleted in its entirety and replaced with the following language:

     “6.3 Equity Incentive Compensation. Each Contract Year during the Term, beginning with
FYE 06, at such time as Employer generally awards equity incentive compensation to members of
Employer’s senior management team, Executive shall receive Nine Thousand (9,000) Shares (as defined
below) and an option (“Option”) to acquire Thirty Thousand (30,000) Shares. As used herein,
“Shares” shall mean shares of Class A Common Stock of Emmis Communications Corporation. The grants
of Options and Shares shall be pursuant to the terms and subject to the conditions of the
applicable Equity Incentive Plan of Employer, the Option agreement evidencing the Option grant and
the restricted stock agreement evidencing the grant of Shares. In the event of any change in the
outstanding Shares by reason of any reorganization, recapitalization, reclassification, merger,
stock split, reverse stock split, stock dividend, asset spinoff, share combination, consolidation,
or similar event, including without limitation a Separation Event, the number and class of all
Shares awarded pursuant to this Agreement or covered by an Option granted pursuant to this
Agreement (and any applicable Option exercise price) shall be adjusted by the Compensation
Committee in its sole discretion and in accordance with the terms of the applicable Equity
Incentive Plan of Employer, the Option agreement evidencing the grant of the Option and the
restricted stock agreement evidencing the grant of Shares. The determination of the Compensation
Committee shall be conclusive and binding.”

5. Effective March 1, 2005, Sections 6.4 and 15.9 shall be deleted and shall be of no further force
and effect.

6. After the delivery of any Completion Shares earned for the period ending February 28, 2005
pursuant to Section 6.5, Section 6.5 shall be deleted in its entirety and replaced with the
following language:

     “6.5 Completion Bonus. On or about February 29, 2008, Executive shall receive Fifty
Thousand (50,000) Shares (the “Completion Shares”); provided, that (i) this Agreement is in effect
on February 29, 2008 and has not been terminated for any

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reason (other than a breach of this Agreement by Employer); and (ii) Executive has fully performed all of Executive’s duties and
obligations under this Agreement throughout the Term and is not in breach of any of the material
terms and conditions of this Agreement. The Completion Shares shall be freely transferable when
delivered to Executive subject to Employer’s securities trading policy and applicable federal and
state law. Employer shall have the right, in its sole and absolute discretion, to pay to Executive
the value of the Completion Shares (in the same manner applied to other senior management level
employees) in cash in lieu of granting Executive the Completion Shares.”

7. In the third sentence of Section 11.5, the following language shall be deleted and shall be of
no further force and effect:

     “or the transaction or transactions described in the definition of Change of Control in
Exhibit A”

8. In Section 14, Gary Kaseff’s address has been changed to 3500 W. Olive Avenue, Suite 1450,
Burbank, California 91505.

All of the terms and conditions set forth in the Agreement shall remain unchanged and in full force
and effect unless specifically modified in this Amendment. All references to the Term or its
expiration or termination shall be adjusted to properly reflect the language set forth above. This
Amendment shall be incorporated by reference into the Agreement and made a part thereof. In the
event of any conflict between any provision of this Amendment and any provision of the Agreement,
this Amendment shall govern and control.

Please sign below where indicated to signify your acceptance of the terms and conditions set forth
in this Amendment. Should you have any questions about this Amendment, please let me know. I look
forward to much continued success together.

Sincerely,

	 	 	 
	/s/ Jeffrey H. Smulyan

	 	 
	 
	 	 
	Jeffrey H. Smulyan
	 	 
	Chairman and Chief Executive
	 	 
	Officer, Emmis Operating Company
	 	 

ACCEPTED AND AGREED:

	 	 	 
	/S/ Richard F. Cummings

	 	 
	 
	 	 
	Richard F. Cummings
	 	 

3exv10w3

 

EXHIBIT 10.3

February 7, 2005

Gary Kaseff

c/o Emmis Communications Corporation

3500 W. Olive Avenue, Suite 1450

Burbank, California 91505

     Re: Amendment to Employment Agreement

Dear Gary:

     This letter shall confirm our agreement to amend your employment agreement with Emmis
Operating Company dated March 1, 2003 (the “Agreement”), upon the terms and subject to the
conditions set forth in this letter (the “Amendment”).

     Except as otherwise provided below, this Amendment is effective upon execution by you. Any
capitalized words or phrases used and not defined in this Amendment shall have the meanings
ascribed to them in the Agreement. This shall confirm that the parties have agreed as follows:

1. The Term of the Agreement has been extended through February 29, 2008. After February 28, 2005,
“Contract Year” shall mean the twelve (12) month period commencing on March 1, 2005 and on each
anniversary thereof during the Term.

2. The Base Salary shall be increased to Four Hundred Twenty Four Thousand Dollars ($424,000) for
the Contract Year beginning March 1, 2005 (“FYE 06”), Four Hundred Thirty Seven Thousand Five
Hundred Dollars ($437,500) for the Contract Year beginning March 1, 2006 and Four Hundred Fifty
Thousand Dollars ($450,000) for the Contract Year beginning March 1, 2007.

3. After payment of any Contract Year Bonus earned for the period ending February 28, 2005, Section
6.2 shall be modified to reflect the following: The target amounts of the Contract Year Bonuses
shall be increased to Two Hundred Thirty Nine Thousand Dollars ($239,000) for FYE 06, Two Hundred
Forty Six Thousand Dollars ($246,000) for the Contract Year beginning March 1, 2006 and Two Hundred
Fifty Three Thousand Dollars ($253,000) for the Contract Year beginning March 1, 2007. Commencing
with FYE 06, Exhibit A to the Agreement shall be deleted and shall be of no further force and
effect, and the third and fourth sentences of Section 6.2 shall be deleted and replaced with the
following language:

     “Employer may pay all or a portion of any Contract Year Bonus in Shares in the same manner
utilized for other senior management level employees.”

 

 

Unless subsequently changed by the Compensation Committee, the performance goals for FYE 06 shall
be:

	 	 	 	 	 	 	 
	Target Bonus	 	Performance Goal
	1.

	 	$	95,600	 	 	Domestic Radio Station Operating Income Target

	2.

	 	$	71,700	 	 	Other Emmis Operating Income Target
	3.

	 	$	71,700	 	 	Individual Performance (Discretionary)

Domestic Radio Station Operating Income and Other Emmis Operating Income, or any other applicable
performance targets or goals, shall be defined and determined by the Compensation Committee each
Contract Year. The Compensation Committee reserves the right to amend the performance goals to the
extent it deems appropriate in order to take into account any material acquisition, disposition,
reorganization, recapitalization or other material transaction involving Employer or its
properties. Executive shall earn a certain percentage of each Contract Year Bonus in accordance
with the applicable bonus scale adopted by the Employer for the subject Contract Year.

4. Section 6.3 shall be deleted in its entirety and replaced with the following language:

     “6.3 Equity Incentive Compensation. Each Contract Year during the Term, beginning with
FYE 06, at such time as Employer generally awards equity incentive compensation to members of
Employer’s senior management team, Executive shall receive Seven Thousand Five Hundred (7,500)
Shares (as defined below) and an option (“Option”) to acquire Twenty Five Thousand (25,000) Shares.
As used herein, “Shares” shall mean shares of Class A Common Stock of Emmis Communications
Corporation. The grants of Options and Shares shall be pursuant to the terms and subject to the
conditions of the applicable Equity Incentive Plan of Employer, the Option agreements evidencing
the Option grants and the restricted stock agreements evidencing the grants of Shares. In the
event of any change in the outstanding Shares by reason of any reorganization, recapitalization,
reclassification, merger, stock split, reverse stock split, stock dividend, asset spinoff, share
combination, consolidation, or similar event, including without limitation a Separation Event, the
number and class of all Shares awarded pursuant to this Agreement or covered by an Option granted
pursuant to this Agreement (and any applicable Option exercise price) shall be adjusted by the
Compensation Committee in its sole discretion and in accordance with the terms of the applicable
Equity Incentive Plan of Employer, the Option agreement evidencing the grant of the Option and the
restricted stock agreement evidencing the grant of Shares. The determination of the Compensation
Committee shall be conclusive and binding.”

5. After the delivery of any Bonus Shares earned for the period ending February 28, 2005 pursuant
to Section 6.4, Section 6.4 shall be deleted in its entirety and replaced with the following
language:

     “6.4 Completion Bonus. On or about February 29, 2008, Executive shall receive Twenty
Eight Thousand Two Hundred Fifty (28,250) Shares (the “Completion Shares”); provided, that (i) this
Agreement is in effect on February 29, 2008 and has not been

2

 

terminated for any reason (other than a breach of this Agreement by Employer); and (ii) Executive has fully performed all of Executive’s
duties and obligations under this Agreement throughout the Term and is not in breach of any of the
material terms and conditions of this Agreement. The Completion Shares shall be freely
transferable when delivered to Executive subject to Employer’s securities trading policy and
applicable federal and state law. Employer shall have the right, in its sole and absolute
discretion, to pay to Executive the value of the Completion Shares (in the same manner applied to
other senior management level employees) in cash in lieu of granting Executive the Completion
Shares. This Section 6.4 is expressly subject to the provisions of Sections 11.4 and 11.6 which
provide for, in the situations described therein, Executive’s receipt of the Completion Shares
prior to February 29, 2008.”

6. Effective March 1, 2005, the amount of Two Hundred Twenty Five Thousand Dollars ($225,000) set
forth in Sections 11.4 and 11.6 shall be increased to Two Hundred Forty Six Thousand Dollars
($246,000) in each Section.

7. Effective March 1, 2005, the last parenthetical phrase in the fourth sentence of Section 11.4
and the last parenthetical phrase in the first sentence of Section 11.6 shall be deleted and
replaced with the following language:

     “(except the Options described in Section 6.3, which compensation shall not be included in the
calculation of the lump sum payment).”

8. In the third sentence of Section 11.5, the following language shall be deleted and shall be of
no further force and effect:

     “or the transaction or transactions described in the definition of Change of Control in
Exhibit B”

9. The following language shall be added to Section 11.7.2:

     “Ownership of any Shares granted to Executive (pursuant to Section 6.3 of this Agreement or
otherwise) prior to or during the Post Term Period shall continue to vest during the Post Term
Period (to the extent not already fully vested as of the first day of the Post Term Period) in
accordance with the vesting schedule applicable to each grant in the same manner as if Executive
remained a full-time employee with Employer continuously through the expiration of the Post Term
Period.”

All of the terms and conditions set forth in the Agreement shall remain unchanged and in full force
and effect unless specifically modified in this Amendment. All references to the Term or its
expiration or termination shall be adjusted to properly reflect the language set forth above. This
Amendment shall be incorporated by reference into the Agreement and made a part thereof. In the
event of any conflict between any provision of this Amendment and any provision of the Agreement,
this Amendment shall govern and control.

3

 

Please sign below where indicated to signify your acceptance of the terms and conditions set forth
in this Amendment. Should you have any questions about this Amendment, please let me know. I look
forward to much continued success together.

Sincerely,

	 	 	 
	/S/ Jeffrey H. Smulyan

	 	 
	 
	 	 
	Jeffrey H. Smulyan
	 	 
	Chairman and Chief Executive
	 	 
	Officer, Emmis Operating Company
	 	 

ACCEPTED AND AGREED:

	 	 	 
	/S/ Gary Kaseff

	 	 
	 
	 	 
	Gary Kaseff
	 	 

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