Document:

EX-10.3

Exhibit 10.3

EMPLOYEE MATTERS AGREEMENT

by and between

THE E.W. SCRIPPS COMPANY

and

SCRIPPS NETWORKS INTERACTIVE, INC.

Dated as of                                         , 2008

 

 

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	SECTION 1.01.
	 	Definitions	 	 	1	 
	SECTION 1.02.
	 	General Interpretive Principles	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE II GENERAL PRINCIPLES	 	 	9	 
	SECTION 2.01.
	 	Assumption And Retention Of Liabilities; Related Assets	 	 	9	 
	SECTION 2.02.
	 	SNI Participation In EWS Benefit Plans	 	 	10	 
	SECTION 2.03.
	 	Comparable Compensation And Benefits	 	 	10	 
	SECTION 2.04.
	 	Service Recognition	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE III U.S. QUALIFIED DEFINED BENEFIT PLAN	 	 	12	 
	SECTION 3.01.
	 	Establishment of SNI Retirement Plan	 	 	12	 
	SECTION 3.02.
	 	SNI Participants	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IV U.S. QUALIFIED DEFINED CONTRIBUTION PLANS	 	 	15	 
	SECTION 4.01.
	 	The SNI 401(k) Plan	 	 	15	 
	SECTION 4.02.
	 	Contributions as of the Distribution Date	 	 	16	 
	 
	 	 Defined Contribution Plan Maintained
by the SNI Group Prior to the Distribution Date	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE V U.S. HEALTH AND WELFARE PLANS	 	 	16	 
	SECTION 5.01.
	 	Health And Welfare Plans Maintained by the SNI Group Prior to the Distribution Date	 	 	16	 
	SECTION 5.02.
	 	Health and Welfare Plans Maintained by EWS Prior to the Distribution Date	 	 	16	 
	SECTION 5.03.
	 	Reimbursement Account Plans	 	 	17	 
	SECTION 5.04.
	 	COBRA and HIPAA	 	 	18	 
	SECTION 5.05.
	 	Liabilities	 	 	18	 
	SECTION 5.06.
	 	Disposition of VEBA Assets	 	 	19	 
	SECTION 5.07.
	 	Time-Off Benefits	 	 	19	 
	SECTION 5.08.
	 	Disposition of Disability Plan Trust Assets	 	 	20	 
	SECTION 5.09.
	 	Health Savings Accounts	 	 	20	 
	SECTION 5.10.
	 	Severance Pay Plans	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE VI NONQUALIFIED RETIREMENT PLANS	 	 	20	 
	SECTION 6.01.
	 	Deferred Compensation Plans	 	 	20	 
	SECTION 6.02.
	 	Supplemental Executive Retirement Plan	 	 	21	 
	SECTION 6.03.
	 	Selected Officers Retirement Program	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VII LONG-TERM INCENTIVE AWARDS	 	 	21	 
	SECTION 7.01.
	 	Long-Term Incentive Awards	 	 	21	 
	SECTION 7.02.
	 	Treatment of Outstanding EWS Options	 	 	22	 

i

 

	 	 	 	 	 	 	 
	SECTION 7.03.
	 	Treatment of Outstanding EWS Restricted Shares	 	 	23	 
	SECTION 7.04.
	 	Treatment of Outstanding EWS Restricted Share Units	 	 	24	 
	SECTION 7.05.
	 	Treatment of EWS Phantom Stock Units	 	 	24	 
	SECTION 7.06.
	 	Cooperation	 	 	25	 
	SECTION 7.07.
	 	SEC Registration	 	 	25	 
	SECTION 7.08.
	 	Savings Clause	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE VIII ADDITIONAL COMPENSATION MATTERS	 	 	25	 
	SECTION 8.01.
	 	Incentive Awards	 	 	25	 
	SECTION 8.02.
	 	Change in Control Plan	 	 	26	 
	SECTION 8.03.
	 	Individual Arrangements	 	 	26	 
	SECTION 8.04.
	 	Employee Stock Purchase Plan	 	 	27	 
	SECTION 8.05.
	 	Director Programs	 	 	27	 
	SECTION 8.06.
	 	Sections 162(m)/409A	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE IX WORKERS’ COMPENSATION LIABILITIES	 	 	27	 
	SECTION 9.01.
	 	Pre-Distribution Date Claims	 	 	27	 
	SECTION 9.02.
	 	Post-Distribution Date Claims	 	 	28	 
	SECTION 9.03.
	 	General	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE X INDEMNIFICATION	 	 	28	 
	SECTION 10.01.
	 	Indemnification by SNI	 	 	28	 
	SECTION 10.02.
	 	Indemnification by EWS	 	 	28	 
	SECTION 10.03.
	 	Procedures for Indemnification of Third-Party Claims	 	 	28	 
	SECTION 10.04.
	 	Additional Matters	 	 	29	 
	SECTION 10.05.
	 	Contribution	 	 	30	 
	SECTION 10.06.
	 	Survival of Indemnities	 	 	30	 
	SECTION 10.07.
	 	Remedies Cumulative	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE XI GENERAL AND ADMINISTRATIVE	 	 	30	 
	SECTION 11.01.
	 	Sharing Of Information	 	 	30	 
	SECTION 11.02.
	 	Reasonable Efforts/Cooperation	 	 	31	 
	SECTION 11.03.
	 	Employer Rights	 	 	31	 
	SECTION 11.04.
	 	Non-Termination of Employment; No Third-Party Beneficiaries	 	 	31	 
	SECTION 11.05.
	 	Consent of Third Parties	 	 	31	 
	SECTION 11.06.
	 	Access to Employees	 	 	32	 
	SECTION 11.07.
	 	Beneficiary Designation/Release of Information/Right to Reimbursement	 	 	32	 
	SECTION 11.08.
	 	Not a Change in Control	 	 	32	 

ii

 

	 	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	32	 
	SECTION 12.01.
	 	Effect if Distribution Does Not Occur	 	 	32	 
	SECTION 12.02.
	 	Relationship of Parties	 	 	32	 
	SECTION 12.03.
	 	Affiliates	 	 	32	 
	SECTION 12.04.
	 	Notices	 	 	33	 
	SECTION 12.05.
	 	Entire Agreement	 	 	33	 
	SECTION 12.06.
	 	Waiver	 	 	34	 
	SECTION 12.07.
	 	Amendment	 	 	34	 
	SECTION 12.08.
	 	Governing Law	 	 	34	 
	SECTION 12.09.
	 	Submission to Jurisdiction; Waivers	 	 	34	 
	SECTION 12.10.
	 	Headings	 	 	34	 
	SECTION 12.11.
	 	Counterparts	 	 	34	 
	SECTION 12.12.
	 	No Assignment; Binding Effect	 	 	34	 
	SECTION 12.13.
	 	Severability	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE XIII DISPUTE RESOLUTION	 	 	35	 
	SECTION 13.01.
	 	General	 	 	35	 
	SECTION 13.02.
	 	Initiation	 	 	35	 
	SECTION 13.03.
	 	Arbitration Request	 	 	35	 
	SECTION 13.04.
	 	Injunctive Relief	 	 	36	 

iii

 

	 	 	 
	Exhibits
	Valuation Methodologies

	 	Exhibit A
	Form of Other Enrolled Actuary Agreement

	 	Exhibit A-1
	SNI Retained Welfare Plans

	 	Exhibit B
	EWS Welfare Plans

	 	Exhibit C
	EWS Retiree Medical Program

	 	Exhibit D

	 	 	 
	Schedules
	EWS Subsidiaries

	 	Schedule 1.01(a)
	SNI Subsidiaries

	 	Schedule 1.01(b)

iv

 

EMPLOYEE MATTERS AGREEMENT

     THIS EMPLOYEE MATTERS AGREEMENT (the “Agreement”), dated as of ____________,
2008, by and between The E.W. Scripps Company, an Ohio corporation (“EWS”), and Scripps
Networks Interactive, Inc., an Ohio corporation and an indirect subsidiary of EWS (“SNI”,
and, together with EWS, each, a “Party” and collectively, the “Parties”).
Capitalized terms used in this Agreement (other than the formal names of the EWS Benefit Plans (as
defined below), the SNI Benefit Plans (as defined below) and other agreements) and not otherwise
defined, are defined as set forth in Section 1.01.

RECITALS

     WHEREAS, the Board of Directors of EWS has determined that it is in the best interests of EWS
to separate the SNI Business and the EWS Business into two independent public companies, on the
terms and subject to the conditions set forth in the Separation Agreement (as defined below), in
order to separate businesses with differing strategic directions, eliminate existing constraints
regarding capital allocation, concentrate management focus, allow more tailored management
incentives, and accommodate differing shareholder bases;

     WHEREAS, in order to effectuate the foregoing, EWS and SNI have entered into a Separation and
Distribution Agreement, dated as of ____________, 2008, as amended (the “Separation
Agreement”), pursuant to which and subject to the terms and conditions set forth therein, the
SNI Business shall be separated from the EWS Business, and all of the issued and outstanding Class
A Common Shares, par value $0.01 per share, of SNI and Common Voting Shares, par value $0.01 per
share, of SNI (collectively, the “SNI Common Shares”) beneficially owned by EWS shall be
distributed (the “Distribution”) on a pro rata basis to the holders of the issued and
outstanding Class A Common Shares, par value $0.01 per share, of EWS and Common Voting Shares, par
value $0.01 per share, of EWS (collectively, the “EWS Common Shares”); and

     WHEREAS, pursuant to the Separation Agreement, EWS and SNI have agreed to enter into this
Agreement for the purpose of allocating Assets, Liabilities and responsibilities with respect to
certain employee compensation and benefit plans, programs and arrangements, and certain employment
matters between and among them.

     NOW, THEREFORE, in consideration of the premises and of the respective agreements and
covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:

     “Action” means any claim, demand, complaint, charge, action, cause of action, suit,
countersuit, arbitration, litigation, inquiry, proceeding or investigation.

     “Affiliate” means, with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, Controls, is Controlled by or is under common
Control with, such specified Person; provided, however, that for purposes of this
Agreement, no member of either Group shall be deemed to be an Affiliate of any member of the other
Group.

 

 

     “Agreement” shall have the meaning ascribed thereto in the preamble to this Agreement,
including all the exhibits and schedules hereto, and all amendments made hereto from time to time.

     “Ancillary Agreements” has the same meaning as provided in the Separation Agreement.

     “Asset” means any right, property or asset, whether real, personal or mixed, tangible or
intangible, of any kind, nature and description, whether accrued, contingent or otherwise, and
wheresoever situated and whether or not carried or reflected, or required to be carried or
reflected, on the books of any Person.

     “Benefit Plan” means, with respect to an entity, each plan, program, arrangement, agreement or
commitment that is an employment, consulting, non-competition or deferred compensation agreement,
or an executive compensation, incentive bonus or other bonus, employee pension, profit-sharing,
savings, retirement, supplemental retirement, stock option, stock purchase, stock appreciation
rights, restricted stock, other equity-based compensation, severance pay, salary continuation,
life, health, hospitalization, sick leave, vacation pay, disability or accident insurance plan,
corporate-owned or key-man life insurance or other employee benefit plan, program, arrangement,
agreement or commitment, including any “employee benefit plan” (as defined in Section 3(3) of
ERISA), sponsored or maintained by such entity (or to which such entity contributes or is required
to contribute).

     “COBRA” means the continuation coverage requirements for “group health plans” under Title X of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code
Section 4980B and Sections 601 through 608 of ERISA, and any similar state group health plan
continuation Law, together with all regulations and proposed regulations promulgated thereunder.

     “Code” means the United States Internal Revenue Code of 1986, as amended.

     “Combined Company Share Value” means the average of the volume weighted average of the trading
price per share of EWS Common Shares trading on a “regular way” basis as reported on the NYSE for
the ten full NYSE trading days immediately preceding the Distribution Date.”

     “Control” means, as to any Person, the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities or other interests, by contract or otherwise. The term
“Controlled” shall have a correlative meaning.

     “Distribution” shall have the meaning ascribed thereto in the recitals to this Agreement, as
the same is further described in the Separation Agreement.

     “Distribution Date” means the date on which the Distribution shall be effected, such date to
be determined by, or under the authority of, the Board of Directors of EWS in its sole and absolute
discretion.

     “DOL” means the United States Department of Labor.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means with respect to any Person, each business or entity that is a member
of a “controlled group of corporations,” under “common control” or a member of an “affiliated
service group” with such Person within the meaning of Sections 414(b), (c) or (m) of the Code, or
required to be aggregated with such Person under Section 414(o) of the Code, or under “common
control” with such Person within the meaning of Section 4001(a)(14) of ERISA.

2

 

     “Estimated Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(ii) of this Agreement.

     “EWS” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “EWS Actuary” means Towers, Perrin, Forster & Crosby, Inc. (New York), or any other
independent actuary appointed by EWS.

     “EWS Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by EWS or
any of its Subsidiaries or Affiliates including the EWS Retirement Plan, the EWS RIP, the EWS
Reimbursement Account Plan, the EWS Deferred Compensation Plans, the EWS Retiree Medical Program
and the EWS Welfare Plans.

     “EWS Business” means all businesses and operations conducted by the EWS Group from time to
time, whether prior to, at or after the Distribution Date, other than the SNI Business.

     “EWS Committee” means the Compensation Committee of the Board of Directors of EWS, or
sub-committee thereof.

     “EWS Common Shares” shall have the meaning ascribed thereto in the recitals to this Agreement.

     “EWS Deferred Compensation Plans” means, collectively, the Scripps Executive Deferred
Compensation Plan and The E. W. Scripps Company 1997 Deferred Compensation and Stock Plan for Directors.

     “EWS
Director” means any individual who is a current or former
director of EWS as of the Distribution Date and who is not a Joint
EWS/SNI Director or a SNI Director.

     “EWS Employee” means any individual who, immediately following the Distribution Date, will be
employed by EWS or any member of the EWS Group in a capacity considered by EWS to be common law
employment, including active employees and employees on vacation and approved leave of absence
(including maternity, paternity, family, sick, short-term or long-term disability leave, qualified
military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act and other approved leaves).

     “EWS Group” means, as of the Distribution Date, EWS and each of its Subsidiaries (or any
predecessor organization thereof), including those Subsidiaries set
forth on Schedule 1.01(a), and
any corporation or entity that may become part of such Group from time to time thereafter. The EWS
Group shall not include any member of the SNI Group.

     “EWS Indemnified Parties” shall have the meaning ascribed thereto in Section 10.1 of this
Agreement.

     “EWS Liabilities” means all Liabilities assumed or retained by any member of the EWS Group
pursuant to this Agreement.

     “EWS Participant” means any individual who, immediately following the Distribution Date, is an
EWS Employee, a Former EWS Employee or a beneficiary, dependent or alternate payee of any of the
foregoing.

     “EWS Phantom Stock Unit” shall mean a unit credited under The E. W. Scripps Company 1997 Deferred
Compensation and Stock Plan for Directors representing a general unsecured promise by EWS or one of
its Subsidiaries or Affiliates to deliver EWS Common Shares or dividend equivalents, if applicable
(or the cash equivalent of either), at the time set forth in The E. W. Scripps Company 1997 Deferred
Compensation and Stock Plan for Directors.

3

 

     “EWS Post-Distribution Share Value” means the average of the volume weighted average of the
trading price per share of EWS Common Shares trading on a “regular way” basis as reported on the
NYSE for the ten full NYSE trading days immediately following the Distribution Date.

     “EWS Ratio” means the quotient obtained by dividing (i) the EWS Post-Distribution Share Value,
by (ii) the Combined Company Share Value.

     “EWS Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.03 of
this Agreement.

     “EWS Retained Claim” shall have the meaning ascribed thereto in Section 9.01 of this
Agreement.

     “EWS Retiree Medical Program” shall have the meaning ascribed thereto in Section 5.02(c)(i) of
this Agreement.

     “EWS Retirement Plan” means the Scripps Pension Plan (including the Scripps Group Pension
Plan).

     “EWS RIP” means the Scripps Retirement and Investment Plan, (including the Scripps Group
Retirement and Investment Plan With Match, and the Scripps Group Retirement and Investment Plan
Without Match).

     “EWS Service Plans” means, collectively, the EWS Retirement Plan, and the EWS RIP.

     “EWS Share Plans” means, collectively, The E. W. Scripps Company Amended and Restated 1997
Long-Term Incentive Plan, the 1994 Non-Employee Directors’ Stock Option Plan, The E. W. Scripps
1997 Deferred Compensation and Stock Plan for Directors, and any other stock option or stock
incentive compensation plan or arrangement maintained before the Distribution Date for employees,
officers, non-employee directors or other independent contractors of EWS or its Subsidiaries or
Affiliates, as amended (exclusive of the SNI Share Plan, The E. W. Scripps Company Employee Stock
Purchase Plan, and the Scripps Networks Interactive, Inc. Employee Stock Purchase Plan).

     “EWS Supplemental Executive Retirement Plan” means the Scripps Supplemental Executive
Retirement Plan.

     “EWS Welfare Plans” shall have the meaning ascribed thereto in Section 5.02(a) of this
Agreement.

     “Final Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(iv) of this Agreement.

     “Final Transfer Date” shall have the meaning ascribed thereto in Section 3.02(b)(v) of this
Agreement.

     “Former EWS Employee” means, (i) as of the Distribution Date, any former employee of EWS, SNI
or a Subsidiary or Affiliate of EWS or SNI, including retired, deferred vested, non-vested and
other inactive terminated individuals, now, or in the future, whose most recent active employment
with EWS or a Subsidiary or Affiliate was with a member of the EWS Group and (ii) after the
Distribution Date, any employee of a member of the EWS Group, whose employment with a member of the
EWS Group terminates after the Distribution Date for any reason. Any individual who is an employee
of any member of the SNI Group on the Distribution Date shall not be a “Former EWS Employee.”

4

 

     “Former SNI Employee” means, (i) as of the Distribution Date, any former employee of any
member of the SNI Group, including retired, deferred vested, non-vested and other inactive
terminated individuals, whose most recent active employment with EWS or a Subsidiary or Affiliate
was with a member of the SNI Group and such active employment has ended on or before the
Distribution Date and (ii) after the Distribution Date, any employee of a member of the SNI Group,
including retired, deferred vested, non-vested and other inactive terminated individuals, whose
employment with a member of the SNI Group terminates after the Distribution Date for any reason.

     “Governmental Authority” means any federal, state, local, foreign or international court,
government, department, commission, board, bureau, agency or official, or any other regulatory,
self-regulatory, administrative or governmental organization or authority, including the NYSE.

     “Group” means the EWS Group and/or the SNI Group, as the context requires.

     “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended.

     “HSA” shall have the meaning ascribed thereto in Section 5.09 of this Agreement.

     “Indemnified Parties” shall have the meaning ascribed thereto in Section 4.03 of this
Agreement.

     “Information” shall mean all information, whether in written, oral, electronic or other
tangible or intangible forms, stored in any medium, including non-public financial information,
studies, reports, records, books, accountants’ work papers, contracts, instruments, flow charts,
data, communications by or to attorneys, memos and other materials prepared by attorneys and
accountants or under their direction (including attorney work product) and other financial, legal,
employee or business information or data.

     “Initial Asset Transfer” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “Initial Transfer Amount” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “Initial Transfer Date” shall have the meaning ascribed thereto in Section 3.02(b)(iii) of
this Agreement.

     “IRS” means the United States Internal Revenue Service.

     “Joint EWS/SNI Director” means any individual who is a director of both EWS and SNI as of the Distribution Date.

     “Law” means any applicable foreign, federal, national, state, provincial or local law
(including common law), statute, ordinance, rule, regulation, code or other requirement enacted,
promulgated, issued or entered into, or act taken, by a Governmental Authority.

     “Liabilities” means all debts, liabilities, obligations, responsibilities, response actions,
Losses, damages (whether compensatory, punitive, consequential, treble or other), fines, penalties
and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen
or unforeseen, on-or off-balance sheet, joint, several or individual, asserted or unasserted,
accrued or unaccrued, known or unknown, whenever arising, including those arising under or in
connection with any Law, or other pronouncements of Governmental Authorities constituting an
Action, order or consent decree of any Governmental Authority or any award of any arbitration
tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether
sought to be imposed by a Governmental Authority, private party, or a Party, whether based in
contract, tort, implied or express warranty, strict liability, criminal or civil statute, or
otherwise, and including any costs, expenses, interest, attorneys’ fees,

5

 

disbursements and expense of counsel, expert and consulting fees, fees of third party
administrators and costs related thereto or to the investigation or defense thereof.

     “Loss” means any claim, demand, complaint, damages (whether compensatory, punitive,
consequential, treble or other), fines, penalties, loss, liability, payment, cost or expense
arising out of, relating to or in connection with any Action.

     “Lost Participant” or “Lost Participants” means any individual who, as of the Distribution
Date, is a participant under the EWS Retirement Plan or the EWS RIP, whose accrued benefit (in the
case of the EWS Retirement Plan) or whose account balance (in the case of the EWS RIP) is not
transferred to the SNI 401(k) or the SNI Retirement Plan, and whose current address is unknown on
the Distribution Date.

     “NYSE” means the New York Stock Exchange, Inc.

     “Option,” (a) when immediately preceded by “Old EWS,” means an option to purchase EWS Common
Shares that is outstanding immediately prior to the Distribution Date pursuant to an EWS Share
Plan, (b) when immediately preceded by “New EWS,” means an option to purchase EWS Common Shares
that is outstanding following the Distribution Date pursuant to an EWS Share Plan (“New EWS
Options,” together with “Old EWS Options,” “EWS Options”) and (c) when immediately preceded by
“SNI,” means an option to purchase SNI Common Shares pursuant to the SNI Share Plan.

     “Participating Company” means EWS and any Person (other than an individual) participating in
an EWS Benefit Plan.

     “Parties” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “Person” means any natural person, corporation, general or limited partnership, limited
liability company or partnership, joint stock company, joint venture, association, trust, bank,
trust company, land trust, business trust or other organization, whether or not a legal entity, and
any Governmental Authority.

     “Pre-Transition Claim Period” shall have the meaning ascribed thereto in Section 5.05(b) of
this Agreement.

     “Pre-Transition Claims” shall have the meaning ascribed thereto in Section 5.05(b) of this
Agreement.

     “Record Date” shall have the meaning ascribed thereto in the Separation Agreement.

     “Restricted Shares,” (a) when immediately preceded by “Old EWS,” means EWS Common Shares that
are subject to forfeiture in the event that certain terms and conditions are not satisfied and that
are outstanding immediately prior to the Distribution Date pursuant to an EWS Share Plan, (b) when
immediately preceded by “New EWS,” means EWS Common Shares that are subject to forfeiture in the
event that certain terms and conditions are not satisfied and that are outstanding following the
Distribution Date pursuant to an EWS Share Plan (“New EWS Restricted Shares,” together with “Old
EWS Restricted Shares,” “EWS Restricted Shares”) and (c) when immediately preceded by “SNI,” means
SNI Common Shares that are subject to forfeiture in the event that certain terms and conditions are
not satisfied pursuant to the SNI Share Plan.

     “Restricted Share Units,” (a) when immediately preceded by “Old EWS,” means the general
unsecured promise by EWS or one of its Subsidiaries or Affiliates to deliver a certain number of
EWS Common Shares in the future that are outstanding prior to the Distribution Date pursuant to an
EWS Share Plan, and (b) when immediately preceded by “SNI,” means the general unsecured promise by
SNI

6

 

or one of its Subsidiaries or Affiliates to deliver a certain number of SNI Common Shares in
the future pursuant to the SNI Share Plan.

     “Revised Retirement Plan Transfer Amount” shall have the meaning ascribed thereto in Section
3.02(b)(iv) hereof.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Separation Agreement” shall have the meaning ascribed thereto in the recitals to this
Agreement.

     “Service Crediting Date” shall have the meaning ascribed thereto in Section 2.04(b)(i) of this
Agreement.

     “SNI” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “SNI 401(k)” shall have the meaning ascribed thereto in Section 4.01(a) of this Agreement.

     “SNI Actuary” means Towers, Perrin, Forster & Crosby, Inc. (New York), or any other
independent actuary appointed by SNI.

     “SNI Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by any
member of the SNI Group including the SNI Retirement Plan, the SNI 401(k), the SNI Reimbursement
Account Plan, the SNI Deferred Compensation Plans, the SNI Retiree Medical Program, the SNI
Retained Welfare Plans, the SNI Retained Retirement Plans, and the SNI Welfare Plans.

     “SNI Business” means all businesses and operations conducted by the SNI Group from time to
time, whether prior to, at or after the Distribution Date, including the businesses and operations
conducted by the SNI Group as more fully described in the SNI Information Statement and excluding
the EWS Business.

     “SNI Common Shares” shall have the meaning ascribed thereto in the recitals to this Agreement.

     “SNI Deferred Compensation Plans” shall have the meaning given that term in Section 6.01.

     “SNI Director” means any individual who is a director of SNI as of the Distribution Date and who is not a Joint EWS/SNI Director or an EWS Director.

     “SNI Employee” means any individual who, immediately following the Distribution Date, will be
employed by SNI or any member of the SNI Group in a capacity considered by SNI to be common law
employment, including active employees and employees on vacation and approved leave of absence
(including maternity, paternity, family, sick, short-term or long-term disability leave, qualified
military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act and other approved leaves).

     “SNI Group” means, as of the Distribution Date, SNI and each of its Subsidiaries, including
those Subsidiaries set forth on Schedule 1.01(b), and any corporation or entity that may become
part of such Group from time to time thereafter. The SNI Group shall not include any member of the
EWS Group.

     “SNI Indemnified Parties” shall have the meaning ascribed thereto in Section 10.2 of this
Agreement.

     “SNI Information Statement” means the definitive information statement distributed to holders
of EWS Common Shares in connection with the Distribution and filed with the SEC as Exhibit 99.1 to
the Registration Statement or as an exhibit to a Form 8-K of SNI.

7

 

     “SNI Liabilities” means all Liabilities assumed or retained by any member of the SNI Group
pursuant to this Agreement.

     “SNI Participant” means any individual who, immediately following the Distribution Date, is a
SNI Employee, a Former SNI Employee or a beneficiary, dependent or alternate payee of any of the
foregoing.

     “SNI Phantom Stock Unit” shall mean a unit credited under an SNI Deferred Compensation Plan
representing a general unsecured promise by SNI or one of its Subsidiaries or Affiliates to deliver
SNI Common Shares or dividend equivalents, if applicable (or the cash equivalent of either), at the
times set forth in the applicable SNI Deferred Compensation Plan.

     “SNI Plan Participants” shall have the meaning ascribed thereto in Section 3.01 of this
Agreement.

     “SNI Post-Distribution Share Value” means the average of the volume weighted average of the
trading price per share of SNI Common Shares trading on a “regular way” basis as reported on the
NYSE for the ten full NYSE trading days immediately following the Distribution Date.

     “SNI Ratio” means the quotient obtained by dividing (i) the SNI Post-Distribution Share Value,
by (ii) the Combined Company Share Value.

     “SNI Reimbursement Account Plan” shall have the meaning ascribed thereto in Section 5.03 of
this Agreement.

     “SNI Retiree Medical Program” shall have the meaning ascribed thereto in Section 5.02(c)(ii)
of this Agreement.

     “SNI Retained Retirement Plan” shall have the meaning ascribed thereto in Section 4.03 of this
Agreement.

     “SNI Retained Welfare Plans” shall have the meaning ascribed thereto in Section 5.01 of this
Agreement.

     “SNI Retirement Plan” shall have the meaning ascribed thereto in Section 3.01 of this
Agreement.

     “SNI Service Plans” means, collectively, the SNI Retirement Plan and the SNI 401(k).

     “SNI
Share Plan” means the Scripps Networks Interactive, Inc. 2008 Long-Term Incentive Plan.

     “SNI Supplemental Executive Retirement Plan” shall have the meaning given that term in Section
6.02.

     “SNI Welfare Plans” shall have the meaning ascribed thereto in Section 5.02(a) of this
Agreement.

     “Subsidiary” has the same meaning as provided in the Separation Agreement.

     “Third-Party Claim” shall have the meaning ascribed thereto in Section 10.03(a) of this
Agreement.

8

 

     “Transition Period” means, with respect to each EWS Benefit Plan in which any SNI Group member
is a Participating Company, the period of time beginning on the Distribution Date and ending on
December 31, 2008.

     “Transition Period End Date” means the last day of the Transition Period.

     “True-Up Amount” shall have the meaning ascribed thereto in Section 3.02(b)(v) of this
Agreement.

     “Unvested Old EWS Option” means an Old EWS Option held by a SNI Participant as of the
Distribution Date that is not a Vested Old EWS Option.

     “U.S.” means the United States of America.

     “Vested Old EWS Option” means an Old EWS Option held by a SNI Participant as of the
Distribution Date that is vested or exercisable in accordance with its terms (and with respect to
any EWS Employees, without regard to any provision that provides for accelerated vesting upon
retirement pursuant to the applicable retirement practices and policies of EWS).

     SECTION 1.02. General Interpretive Principles. Words in the singular shall include
the plural and vice versa, and words of one gender shall include the other gender, in each case, as
the context requires. The words “hereof,” “herein,” “hereunder,” and “herewith” and words of
similar import shall, unless otherwise stated, be construed to refer to this Agreement and not to
any particular provision of this Agreement, and references to Article, Section, paragraph, exhibit
and schedule are references to the Articles, Sections, paragraphs, exhibits and schedules to this
Agreement unless otherwise specified. The word “including” and words of similar import when used
in this Agreement shall mean “including, without limitation,” unless otherwise specified. Any
reference to any federal, state, local or non-U.S. statute or Law shall be deemed to also refer to
all rules and regulations promulgated thereunder, unless the context otherwise requires.

ARTICLE II

GENERAL PRINCIPLES

     SECTION 2.01. Assumption And Retention Of Liabilities; Related Assets.

          (a) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
EWS shall, or shall cause one or more members of the EWS Group to, assume or retain and EWS hereby
agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all
EWS Benefit Plans (provided, that as between EWS and SNI, SNI shall be responsible for certain of
those Liabilities pursuant to Section 2.01(b) of this Agreement), (ii) all Liabilities with respect
to the employment, retirement, service, termination of employment or termination of service of all
EWS Employees, Former EWS Employees, their dependents and beneficiaries and other service providers
(including any individual who is, or was, an independent contractor, temporary employee, temporary
service worker, consultant, freelancer, agency employee, leased employee, on-call worker,
incidental worker, or nonpayroll worker of any member of the EWS Group or in any other employment,
non-employment, or retainer arrangement or relationship with any member of the EWS Group), in each
case to the extent arising in connection with or as a result of employment with or the performance
of services for any member of the EWS Group, and (iii) any other Liabilities expressly assumed by
or retained by EWS or any of its Subsidiaries or Affiliates under this Agreement. For purposes of
clarification and the avoidance of doubt, (x) the Liabilities assumed or retained by the EWS Group
as provided for in this Section 2.01(a) are intended to be EWS Liabilities as such term is defined
in the Separation Agreement, and (y) the Parties intend that such Liabilities assumed or retained
by the EWS Group include the retirement benefits and health and welfare plan benefits under the EWS
Benefit Plans for all EWS

9

 

Employees, Former EWS Employees, their dependants, beneficiaries, alternate payees and
surviving spouses.

          (b) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
SNI shall, or shall cause one or more members of the SNI Group to, assume or retain for each EWS
Benefit Plan, and SNI hereby agrees to pay, perform, fulfill and discharge, in due course in full
(i) all Liabilities in respect of SNI Participants under all EWS Benefit Plans arising prior to and
during the Transition Period for each EWS Benefit Plan, (ii) all Liabilities under all SNI Benefit
Plans, (iii) all Liabilities with respect to the employment, service, retirement, termination of
employment or termination of service of all SNI Employees, Former SNI Employees, their dependents
and beneficiaries and other service providers (including any individual who is, or was, an
independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or nonpayroll worker of any
member of the SNI Group or in any other employment, non-employment, or retainer arrangement or
relationship with any member of the SNI Group), and (iv) any other Liabilities expressly assumed or
retained by SNI or any of its Subsidiaries or Affiliates under this Agreement. For purposes of
clarification and the avoidance of doubt, (x) the Liabilities assumed or retained by the SNI Group
as provided for in this Section 2.01(b) are intended to be SNI Liabilities as such term is defined
in the Separation Agreement, and (y) the Parties intend such Liabilities assumed or retained by the
SNI Group include retirement benefits and health and welfare plan benefits under the SNI Benefit
Plans for all SNI Employees, Former SNI Employees, their dependents, beneficiaries, alternate
payees and surviving spouses.

          (c) From time to time after the Distribution, SNI shall promptly reimburse EWS, upon EWS’
presentation of such substantiating documentation as SNI shall reasonably request, for the cost of
any Liabilities satisfied by EWS or its Subsidiaries or Affiliates that are, or that have been made
pursuant to this Agreement, the responsibility of SNI or any of its Subsidiaries or Affiliates.

          (d) From time to time after the Distribution, EWS shall promptly reimburse SNI, upon SNI’s
presentation of such substantiating documentation as EWS shall reasonably request, for the cost of
any Liabilities satisfied by SNI or its Subsidiaries or Affiliates that are, or that have been made
pursuant to this Agreement, the responsibility of EWS or any of its Subsidiaries or Affiliates.

     SECTION 2.02. SNI Participation In EWS Benefit Plans.

          (a) During the Transition Period. Except as otherwise expressly provided for in this
Agreement, and except for the EWS Benefit Plans described in Articles VI, VII, and VIII herein,
until the Transition Period End Date, SNI and each member of the SNI Group that presently
participates in a particular EWS Benefit Plan may continue to be a Participating Company in such
EWS Benefit Plan, and EWS and SNI shall take all necessary action to effectuate each such
continuation.

          (b) After the Transition Period. Except as otherwise expressly provided for in this
Agreement, effective as of the Transition Period End Date, SNI and each member of the SNI Group
shall cease to be a Participating Company in the corresponding EWS Benefit Plan, and EWS and SNI
shall take all necessary action to effectuate each such cessation.

     SECTION 2.03. Comparable Compensation And Benefits.

          (a) In General. With respect to a SNI Employee and with respect to each Benefit Plan,
for the period commencing on the Distribution Date and ending on the Transition Period End Date,
SNI (acting directly or through its Subsidiaries or Affiliates) intends to provide such SNI
Employees with compensation opportunities (including salary, wages, commissions and bonus
opportunities) and employee benefits that are substantially comparable, in the aggregate, to the
compensation opportunities

10

 

and employee benefits to which such SNI Employees were entitled to immediately prior to the
Distribution Date.

          (b) Amendment and Termination of SNI Benefit Plans. The terms of each SNI Benefit
Plan shall be reflected solely in the terms of written documents duly adopted by SNI, and SNI shall
retain the right to amend, modify or terminate any such plan effective as of any date on or after
the establishment of the SNI Benefit Plan, to the extent permitted by law.

     SECTION 2.04. Service Recognition.

          (a) Pre-Distribution Service Credit. SNI shall give each SNI Participant full credit
for purposes of eligibility, vesting, determination of level of benefits, and, to the extent
applicable, benefit accruals under any SNI Benefit Plan for such SNI Participant’s service with any
member of the EWS Group prior to the Distribution Date to the same extent such service was
recognized by the corresponding EWS Benefit Plans immediately prior to the Distribution Date;
provided, however, that such service shall not be recognized to the extent that
such recognition would result in the duplication of benefits.

          (b) Post-Distribution Reciprocal Service Crediting. Each of EWS and SNI (acting
directly or through their respective Subsidiaries or Affiliates) shall cause each of the EWS
Service Plans and the SNI Service Plans, respectively, to provide the following service crediting
rules effective as of the Distribution Date:

          (i) If an EWS Employee who participates in any of the EWS Service Plans becomes
employed by a member of the SNI Group on or after the Distribution Date, but on or before
the Transition Period End Date for any corresponding SNI Service Plans (the “Service
Crediting Date”) and such EWS Employee has been continuously employed by the EWS Group
through the date such EWS Employee commences active employment with a member of the SNI
Group, then such EWS Employee’s service with the EWS Group following the Distribution Date
shall be recognized for purposes of eligibility, vesting and level of benefits under the
corresponding SNI Service Plans, in each case to the same extent as such EWS Employee’s
service with the EWS Group was recognized under the corresponding EWS Service Plans.

          (ii) If an EWS Employee who participates in any of the EWS Service Plans becomes
employed by a member of the SNI Group either (A) on or after the date that the SNI Group
ceases to be an ERISA Affiliate with the EWS Group, or (B) without having been continuously
employed by the EWS Group from the Distribution Date through the date such EWS Employee
commences active employment with a member of the SNI Group, then the corresponding SNI
Service Plans will take into consideration such individual’s service with the EWS Group and
the SNI Group, in each case, prior to the Distribution Date, only to the extent required by
applicable Law.

          (iii) If a SNI Employee becomes employed by a member of the EWS Group prior to the
Service Crediting Date and such SNI Employee is continuously employed by the SNI Group from
the Distribution Date through the date such SNI Employee commences active employment with a
member of the EWS Group, then such SNI Employee’s service with the SNI Group following the
Distribution Date shall be recognized for purposes of eligibility, vesting and level of
benefits under the corresponding EWS Service Plans.

          (iv) If a SNI Employee who participates in any of the SNI Service Plans becomes
employed by a member of the EWS Group either (A) on or after the date that the SNI Group
ceases to be an ERISA Affiliate with the EWS Group, or (B) without having been continuously
employed by the SNI Group from the Distribution Date through the date such SNI Employee
commences active employment with a member of the EWS Group, then the

11

 

corresponding EWS Service Plans will take into consideration such individual’s service
with the EWS Group and the SNI Group, in each case, prior to the Distribution Date, only to
the extent required by applicable Law.

          (v) Notwithstanding anything in this Agreement to the contrary, for the one year period
commencing on the Distribution Date the EWS Service Plans and the SNI Service Plans shall
provide that no break in service occurs with respect to any EWS Employee or SNI Employee who
is hired or rehired by any member of the SNI Group or the EWS Group after the termination of
such EWS Employee’s or SNI Employee’s employment with either the EWS Group or the SNI Group
within such one year period.

          (vi) Notwithstanding anything in this Agreement to the contrary, the employment service
with the EWS Group or the SNI Group shall not be double counted or result in duplicative
benefits or service crediting under any EWS or SNI Service Plan.

ARTICLE III

U.S. QUALIFIED DEFINED BENEFIT PLAN

     SECTION 3.01. Establishment of SNI Retirement Plan. Effective as of the day
following the Transition Period End Date for the EWS Retirement Plan, SNI shall, or shall have
caused one or more members of the SNI Group to, establish a defined benefit pension plan and
related trust to provide retirement benefits to SNI Participants (including Former SNI Employees)
who on the Transition Period End Date were participants in, or entitled to present or future
benefits (whether or not vested) under, the EWS Retirement Plan (such defined benefit pension plan,
the “SNI Retirement Plan” and such SNI Participants, the “SNI Plan Participants”).
SNI shall be responsible for taking all necessary, reasonable, and appropriate action to establish,
maintain and administer the SNI Retirement Plan so that it is qualified under Section 401(a) of the
Code and that the related trust thereunder is exempt under Section 501(a) of the Code.
Notwithstanding the above, until the Transition Period End Date, all benefits payable to SNI Plan
Participants shall be paid from the EWS Retirement Plan. SNI (acting directly or through its
Subsidiaries or Affiliates) shall be responsible for any and all Liabilities (including Liability
for funding) accrued under the SNI Retirement Plan during the Transition Period.

     SECTION 3.02. SNI Participants.

          (a) Assumption of EWS Retirement Plan Liabilities. Effective as of the Initial
Transfer Date, SNI (acting directly or through its Subsidiaries or Affiliates) hereby agrees to
cause the SNI Retirement Plan to assume, and to fully perform, pay and discharge, all accrued
benefits under the EWS Retirement Plan relating to all SNI Plan Participants as of the Distribution
Date (inclusive of benefits paid by the EWS Retirement Plan to SNI Plan Participants following the
Distribution Date, but prior to the Initial Transfer Date in accordance with Section 3.01 above,
but excluding benefits attributable to Lost Participants).

          (b) Transfer of EWS Retirement Plan Assets.

          (i) The Parties intend that the portion of the EWS Retirement Plan covering SNI Plan
Participants (excluding forfeitures attributable to Lost Participants) shall be transferred
to the SNI Retirement Plan in accordance with Sections 401(a)(12) and 414(l) of the Code,
Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA. No later than 30 days
prior to the Transition Period End Date, EWS and SNI (acting directly or through their
respective Subsidiaries or Affiliates) shall, to the extent necessary, file an IRS Form
5310-A regarding the transfer of Assets and Liabilities from the EWS Retirement Plan to the
SNI Retirement Plan. EWS (acting directly or through its respective Subsidiaries or
Affiliates) shall, to the extent necessary, timely file one or more notices (PBGC Form 10
series) regarding the reportable event

12

 

or events (within the meaning of section 4043 of ERISA) occurring as a result of the
transactions contemplated by this Agreement and the Separation Agreement.

          (ii) As soon as reasonably practicable following the Distribution Date, EWS shall cause
the EWS Actuary to determine the estimated value, as of the Distribution Date, of the Assets
to be transferred to the SNI Retirement Plan in accordance with the assumptions and
valuation methodology set forth on Exhibit A attached hereto (the “Estimated Retirement
Plan Transfer Amount”).

          (iii) On or before the Transition Period End Date, EWS shall cause a transfer to the
SNI Retirement Plan of an amount of Assets, in the form of cash, securities or other
property or a combination thereof, from the trust under the EWS Retirement Plan, at least
sufficient to fund benefit payments reasonably projected to be required under the SNI
Retirement Plan prior to the Initial Transfer Date (the “Initial Asset Transfer”).
Within 180 days (or such later time as mutually agreed to by the Parties) following the
determination of the Estimated Retirement Plan Transfer Amount, EWS and SNI (each acting
directly or through their respective Subsidiaries or Affiliates) shall cooperate in good
faith to cause an initial transfer of Assets (the date of such transfer, the “Initial
Transfer Date”) from the EWS Retirement Plan to the SNI Retirement Plan in an amount not
less than 75% of the Estimated Retirement Plan Transfer Amount minus the Initial Asset
Transfer, adjusted to reflect earnings or losses during the period from the Distribution
Date to the Initial Transfer Date (such amount, the “Initial Transfer Amount”).
Such earnings or losses shall be determined based on the actual rate of return of the EWS
Retirement Plan for the period commencing on the Distribution Date and ending on the last
calendar day of the month ending immediately prior to the Initial Transfer Date. Earnings
or losses for the period from such last day of the month to the Initial Transfer Date shall
be based on a blended index of the benchmarks utilized by Russell Investment Group to
monitor and measure performance of the assets of the EWS Retirement Plan, in proportion to
the amounts actually invested as of the date that is as close as administratively
practicable to the Initial Transfer Date, but in no event more than five business days prior
to the Initial Transfer Date. EWS shall satisfy its obligation pursuant to this Section
3.02(b)(iii) by transferring Assets, in the form of cash, securities or other property or a
combination thereof, equal to the Initial Transfer Amount consisting of a pro rata
percentage rounded up or down to the nearest whole lot or distributable unit, of all
investments (to the extent practicable), under the EWS Retirement Plan.

          (iv) Within 180 days following the Initial Transfer Date, EWS shall cause the EWS
Actuary to provide SNI with a revised calculation of the value, as of the Distribution Date,
of the Assets to be transferred to the SNI Retirement Plan determined in accordance with the
assumptions and valuation methodology set forth on Exhibit A attached hereto (the
“Revised Retirement Plan Transfer Amount”). SNI may submit, at its sole cost and
expense, the Revised Retirement Plan Transfer Amount to the SNI Actuary for verification;
provided, that, such verification process and any calculation performed by
the SNI Actuary in connection therewith shall be performed solely on the basis of the
assumptions and valuation methodology set forth on Exhibit A attached hereto. Furthermore,
the EWS Actuary and SNI Actuary shall cooperate in good faith to ensure that any such
verification process is performed in a timely manner. In the event the SNI Actuary
determines that the value, as of the Distribution Date, of the Assets to be transferred to
the SNI Retirement Plan differs from the Revised Retirement Plan Transfer Amount, the SNI
Actuary and EWS Actuary shall use good faith efforts to reconcile any such difference. If
the SNI Actuary and the EWS Actuary fail to reconcile such difference and (A) the SNI
Actuary’s calculation is within 2% of the Revised Retirement Plan Transfer Amount, the
average of the Revised Retirement Plan Transfer Amount and the SNI Actuary’s calculation
shall be used; or (B) the difference between the SNI Actuary’s calculation and the Revised
Retirement Plan Transfer Amount exceeds 2%, the parties shall enter into a letter agreement
in substantially

13

 

the form provided in Exhibit A-1 under which the parties shall jointly designate
another independent actuary whose calculation of the value, as of the Distribution Date, of
the Assets to be transferred to the SNI Retirement Plan shall be final and binding;
provided, that, such calculation must be performed in accordance with the
assumptions and valuation methodology set forth on Exhibit A attached hereto; and,
provided, further, that such value shall be between the value determined by
the SNI Actuary and the Revised Retirement Plan Transfer Amount or equal to either such
value. EWS and SNI shall each pay one-half of the costs incurred in connection with the
retention of such other independent actuary. The final, verified value, as of the
Distribution Date, of the Assets to be transferred to the SNI Retirement Plan as determined
in accordance with this Section 3.02(b)(iv) shall be referred to herein as the “Final
Retirement Plan Transfer Amount.” EWS shall satisfy its obligation pursuant to this
Section 3.02(b)(iv) by transferring Assets, in the form of cash, securities or other
property or a combination thereof, equal to the Final Retirement Plan Transfer Amount
consisting of a pro rata percentage rounded up or down to the nearest whole lot or
distributable unit of all investments (to the extent practicable), under the EWS Retirement
Plan.

          (v) Within 45 days of the determination of the Final Retirement Plan Transfer Amount,
EWS shall cause the EWS Retirement Plan to transfer to the SNI Retirement Plan (the date of
such transfer, the “Final Transfer Date”) an amount, in the form of cash, securities
or other property or a combination thereof, equal to (A) the Final Retirement Plan Transfer
Amount minus (B) the sum of (1) the Initial Transfer Amount, (2) the Initial Asset Transfer,
and (3) the aggregate amount of payments made from the EWS Retirement Plan to SNI Plan
Participants in order to satisfy any benefit Liability with respect to such SNI Plan
Participants during the period commencing on the Distribution Date and ending on the date of
the Initial Asset Transfer (the “True-Up Amount”); provided, that,
the True-Up Amount shall be adjusted to reflect earnings or losses as described below; and
provided, further, that in the event the sum of clauses (1), (2) and (3)
above is greater than the Final Retirement Plan Transfer Amount (determined after the
adjustment to reflect earnings), EWS shall not be required to cause any such additional
transfer and instead SNI shall be required to cause a transfer of cash, securities or other
property or a combination thereof, from the SNI Retirement Plan to the EWS Retirement Plan
in amount equal to the amount by which the sum of clauses (1), (2) and (3) above exceeds the
Final Retirement Plan Transfer Amount (determined after the adjustment to reflect earnings).
The parties hereto acknowledge that the EWS Retirement Plan’s transfer of the True-Up
Amount to the SNI Retirement Plan shall be in full settlement and satisfaction of the
obligations of EWS and EWS Retirement Plan to transfer Assets to the SNI Retirement Plan
pursuant to this Section 3.02(b).

     The True-Up Amount shall be paid from the EWS Retirement Plan to the SNI Retirement Plan, in
the form of cash, securities or other property or a combination thereof, and adjusted to reflect
earnings or losses during the period from the Distribution Date to the Final Transfer Date. Such
earnings or losses shall be determined based on the actual rate of return of the EWS Retirement
Plan for the period commencing on the Distribution Date and ending on the last calendar day of the
month ending immediately prior to the Final Transfer Date. Earnings or losses for the period from
such last day of the month to the Final Transfer Date shall be based on a blended index of the
benchmarks utilized by Russell Investment Group to monitor and measure performance of the assets of
the EWS Retirement Plan, in proportion to the amounts actually invested as of the date that is as
close as administratively practicable to the Final Transfer Date, but in no event more than five
business days prior to the Final Transfer Date.

          (c) Continuation of Elections. As of the effective date of the SNI Retirement Plan,
SNI (acting directly or through its Subsidiaries or Affiliates) shall cause the SNI Retirement Plan
to recognize and maintain all existing elections, including beneficiary designations, payment form
elections

14

 

and rights of alternate payees under qualified domestic relations orders with respect to SNI
Plan Participants under the EWS Retirement Plan.

          (d) Terminated Non-Vested Employees. Notwithstanding anything herein to the contrary
and except for benefits attributable to Lost Participants described in Section 3.02(e), for a
period of at least one year from the Distribution Date, SNI shall cause the SNI Retirement Plan to
restore the accrued benefit of any individual who becomes employed by any member of the SNI Group
following the Distribution Date and whose employment with the EWS Group terminated on or before the
Distribution Date with no vested benefit under the EWS Retirement Plan; provided,
that, pursuant to EWS’ existing practices and policies, such individual would have been
entitled to restoration of such individual’s accrued benefit under the EWS Retirement Plan had such
individual been re-employed by a member of the EWS Group rather than by a member of the SNI Group.

          (e) Lost Participants. EWS hereby acknowledges and agrees that it shall cause the EWS
Retirement Plan to retain responsibility for, and fully perform, pay and discharge, all
Liabilities, when such Liabilities become due, relating to benefits attributable to any Lost
Participant in the EWS Retirement Plan as of the Distribution Date.

          (f) Returning Employees. The assets of the EWS Retirement Plan to fund the accrued
benefits of EWS Employees who become SNI Employees, and who leave the employ of the SNI Group and
become reemployed with the EWS Group prior to the Final Transfer Date, shall be subtracted from the
Final Retirement Plan Transfer Amount and remain assets of the trust for the EWS Retirement Plan;
provided, that EWS causes the EWS Retirement Plan to assume, and to fully perform, pay and
discharge, all accrued benefits under the SNI Retirement Plan relating to such SNI Plan
Participants as of the date of reemployment with the EWS Group.

ARTICLE IV

U.S. QUALIFIED DEFINED CONTRIBUTION PLANS

     SECTION 4.01. The SNI 401(k) Plan.

          (a) Establishment of the SNI 401(k). Effective as of the day following the Transition
Period End Date for the EWS RIP, SNI shall, or shall have caused one of its Subsidiaries or
Affiliates to, establish a defined contribution plan and trust for the benefit of SNI Participants
(the “SNI 401(k)”) who immediately prior to the day following such Transition Period End
Date were participants in, or entitled to, future benefits under the EWS RIP. SNI shall be
responsible for taking all necessary, reasonable and appropriate action to establish, maintain and
administer the SNI 401(k) so that it is qualified under Section 401(a) of the Code and that the
related trust thereunder is exempt under Section 501(a) of the Code. Notwithstanding the above,
until the Transition Period End Date, all benefits payable to SNI Participants shall be paid from
the EWS RIP. SNI (acting directly or through its Subsidiaries or Affiliates) shall be responsible
for any and all Liabilities (including Liability for funding) with respect to the SNI 401(k) and
with respect to benefits accrued during the Transition Period.

          (b) Transfer of EWS RIP Assets. As soon as reasonably practicable (but not later than
30 days) following the Transition Period End Date, EWS shall cause the accounts (including any
outstanding loan balances and forfeitures, but excluding forfeitures attributable to Lost
Participants) in the EWS RIP attributable to SNI Participants and all of the Assets in the EWS RIP
related thereto to be transferred in kind to the SNI 401(k), and SNI shall cause the SNI 401(k) to
accept such transfer of accounts and underlying Assets and, effective as of the date of such
transfer, to assume and to fully perform, pay and discharge, all Liabilities of the EWS RIP
relating to the accounts of SNI Participants (to the extent the Assets related to those accounts
are actually transferred from the EWS RIP to the SNI 401(k)) as of the day following such
Transition Period End Date. The transfer of Assets shall be

15

 

conducted in accordance with Sections 401(a)(12) and 414(l) of the Code, Treasury Regulation
Section 1.414(1)-1 and Section 208 of ERISA.

          (c) Continuation of Elections. As of the effective date of the SNI 401(k), SNI
(acting directly or through its Subsidiaries or Affiliates) shall cause the SNI 401(k) to recognize
and maintain all elections, including deferral and payment form elections, beneficiary
designations, and the rights of alternate payees under qualified domestic relations orders with
respect to SNI Participants under the EWS RIP for the remainder of the period or periods for which
such elections or designations are by their original terms applicable, to the extent such election
or designation is available under the SNI 401(k) Plan.

          (d) Form 5310-A. No later than 30 days prior to the Transition Period End Date, EWS
and SNI (each acting directly or through their respective Subsidiaries or Affiliates) shall, to the
extent necessary, file IRS Form 5310-A regarding the transfer of Assets and Liabilities from the
EWS RIP to the SNI 401(k) as discussed in this Article IV.

          (e) Lost Participants. EWS hereby acknowledges and agrees that it shall cause the EWS
RIP to retain responsibility for, and fully perform, pay and discharge, all Liabilities, when such
Liabilities become due, relating to benefits attributable to any Lost Participant in the EWS RIP as
of the Distribution Date.

     SECTION 4.02. Contributions as of the Distribution Date. All contributions payable
to the EWS RIP with respect to employee deferrals and matching contributions for SNI Participants
through the Distribution Date shall be paid by EWS to the EWS RIP prior to the date of the Asset
transfer described in Sections 4.01(b) above.

     SECTION 4.03. Defined Contribution Plan Maintained by the SNI Group Prior to the
Distribution Date. Following the Distribution Date, SNI (acting directly or through its
Subsidiaries or Affiliates) shall retain, and EWS shall have no obligation whatsoever with regard
to, all Liabilities under, or with respect to, the Shopzilla 401(k) Plan (the “SNI Retained
Retirement Plan”).

ARTICLE V

U.S. HEALTH AND WELFARE PLANS

     SECTION 5.01. Health And Welfare Plans Maintained by the SNI Group Prior to the
Distribution Date. Following the Distribution Date, SNI (acting directly or through its
Subsidiaries or Affiliates) shall retain, and EWS shall have no obligation whatsoever with regard
to, all Liabilities under, or with respect to, the health and welfare plans maintained by SNI or
any of its Subsidiaries or Affiliates that are listed on Exhibit B attached hereto (the “SNI
Retained Welfare Plans”).

     SECTION 5.02. Health and Welfare Plans Maintained by EWS Prior to the Distribution
Date.

          (a) Establishment of the SNI Welfare Plans. EWS or one or more of its Subsidiaries or
Affiliates maintain each of the health and welfare plans set forth on Exhibit C attached hereto
(the “EWS Welfare Plans”) for the benefit of eligible EWS Participants and SNI
Participants. Effective as of the day following the Transition Period End Date for the EWS Welfare
Plans, SNI shall, or shall cause one of its Subsidiaries or Affiliates, to adopt health and welfare
plans for the benefit of eligible SNI Participants (collectively, the “SNI Welfare Plans”).

          (b) Terms of Participation in SNI Welfare Plans. SNI (acting directly or through its
Subsidiaries or Affiliates) shall cause all SNI Welfare Plans to (i) waive all limitations as to
pre-existing conditions, exclusions, and service conditions with respect to participation and
coverage requirements applicable to SNI Participants, other than limitations that were in effect
with respect to SNI Participants

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as of the Transition Period End Date, (ii) provide credit for any deductible, out-of-pocket
maximum, and co-payment incurred by SNI Participants under the EWS Welfare Plans in which they
participated immediately prior to the day following the Transition Period End Date, in satisfying
any applicable deductible or out-of-pocket requirements under any SNI Welfare Plans during the same
plan year in which such deductible, out-of-pocket maximums and co-payments were made, (iii) waive
any waiting period limitation or evidence of insurability requirement that would otherwise be
applicable to a SNI Participant following the Transition Period End Date to the extent such SNI
Participant had satisfied any similar limitation under the analogous EWS Welfare Plan, and (iv)
provide credit for all benefits paid to SNI Participants under the EWS Welfare Plans for purposes
of determining when such persons have reached their annual and lifetime maximums under the SNI
Welfare Plan. Notwithstanding the foregoing, in the event that any SNI Participant, Former SNI
Employee, or dependent thereof, is confined to a facility for treatment at the Transition Period
End Date, such persons nevertheless shall become covered under SNI Welfare Plans as of such date,
and shall cease being covered under EWS Welfare Plans as of such date.

          (c) Retiree Medical Eligibility.

          (i) EWS Retiree Medical Program. Notwithstanding anything herein to the
contrary, for so long as it maintains the EWS Retiree Medical Program described in Exhibit D
attached hereto (or any successor thereto), as it may be amended from time to time, provided
that SNI Participants shall be treated consistently with other similarly situated
participants in the event of any amendment and/or termination of the EWS Retirement Medical
Program (the “EWS Retiree Medical Program”), EWS shall cause the EWS Retiree Medical
Program to contain provisions regarding eligibility and service crediting that ensure that
SNI Participants who, as of the Distribution Date, were eligible to immediately commence
benefits under the EWS Retiree Medical Program under the cost of coverage provisions
applicable to retirees, remain eligible for benefits under the EWS Retiree Medical Program
after the Transition Period End Date.

          (ii) SNI Retiree Medical Program. Notwithstanding anything herein to the
contrary, for so long as it maintains a retiree medical program established pursuant to
Section 5.02(a) above (the “SNI Retiree Medical Program”), as may be amended from
time to time, SNI shall cause the SNI Retiree Medical Program to contain provisions
regarding eligibility and service crediting that ensure that EWS Participants who, as of the
Distribution Date, were eligible to immediately commence benefits under the EWS Retiree
Medical Program under the cost of coverage provisions applicable to retirees and SNI
Employees who become members of the EWS Group prior to the Transition Period End Date (or
such later date as mutually agreed to by the Parties) who, as of such transfer date were
eligible to immediately commence benefits under the SNI Retiree Medical Program, are
eligible for benefits under the SNI Retiree Medical Program as of the Transition Period End
Date. This Section 5.02(c)(ii) is not intended to create any obligation to provide benefits
to any retiree, but rather, is intended merely to credit service to the extent such an
obligation may exist.

     SECTION 5.03. Reimbursement Account Plans. Effective as of the day following the
Transition Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates) shall
establish a health and dependent care reimbursement account plan (the “SNI Reimbursement
Account Plan”) with features that are comparable to those contained in the health and dependent
care reimbursement account plan maintained by EWS for the benefit of SNI Participants immediately
prior to the Transition Period End Date (the “EWS Reimbursement Account Plan”). With
respect to SNI Participants, effective as of the Transition Period End Date, SNI (acting directly
or through its Subsidiaries or Affiliates) shall assume responsibility for administering all
reimbursement claims of SNI Participants with respect to calendar year 2009 under the SNI
Reimbursement Account Plan.

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     SECTION 5.04. COBRA and HIPAA. Effective as of the day following the Transition
Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates) shall assume, or
shall have caused the SNI Welfare Plans to assume, responsibility for compliance with the health
care continuation coverage requirements of COBRA with respect to SNI Participants who, as of the
day prior to the Transition Period End Date were covered under an EWS Welfare Plan pursuant to
COBRA. As soon as administratively practicable after the Transition Period End Date, EWS shall
provide SNI (through hard copy, electronic format, or such other mechanism as is appropriate under
the circumstances), with a list of all qualified beneficiaries (as such term is defined under
COBRA) that relate to the SNI Group and relevant information pertaining to their coverage elections
and remaining COBRA time periods. EWS (acting directly or through its Subsidiaries or Affiliates)
shall be responsible for administering compliance with the certificate of creditable coverage
requirements of HIPAA applicable to the EWS Welfare Plans with respect to SNI Participants. The
Parties hereto agree that neither the Distribution Date, nor the Transition Period End Date, shall
constitute a COBRA qualifying event for any purposes of COBRA.

     SECTION 5.05. Liabilities.

          (a) Insured Benefits. With respect to employee welfare and fringe benefits that are
provided through the purchase of insurance, EWS shall cause the EWS Welfare Plans to fully perform,
pay and discharge all claims of SNI Participants that are incurred prior to the Transition Period
End Date for the EWS Welfare Plans, and SNI shall cause the SNI Welfare Plans to fully perform, pay
and discharge all claims of SNI Participants that are incurred after the Transition Period End
Date.

          (b) Self-Insured Benefits. With respect to employee welfare and fringe benefits that
are provided on a self-insured basis, except as otherwise provided herein, SNI (acting directly or
through its Subsidiaries or Affiliates) shall cause the SNI Welfare Plans to fully perform, pay and
discharge all claims of SNI Participants after the Transition Period End Date that are incurred
after such Transition Period End Date. Except as provided otherwise herein, from and after the
Distribution Date, through such Transition Period End Date, SNI shall reimburse EWS for all
self-insured benefit claims paid by the EWS Welfare Plans or EWS that were claims of SNI
Participants incurred on or after the Distribution Date, through such Transition Period End Date
(whether reported or unreported by such Transition Period End Date). EWS shall submit a monthly
written invoice to SNI detailing SNI’s Liability for such claims. Notwithstanding the above, after
the Transition Period End Date, SNI (acting directly or through its Subsidiaries or Affiliates)
shall reimburse EWS for its proportionate share of the Liability, with respect to self-insured
benefits under the EWS Welfare Plans that were incurred prior to such Transition Period End Date
(whether reported or unreported by such Transition Period End Date), but submitted to, or paid by,
the EWS Welfare Plans or EWS during the period beginning on such Transition Period End Date and
ending on December 31, 2009 (the “Pre-Transition Claim Period”, and such claims, the
“Pre-Transition Claims”). SNI’s share of the Pre-Transition Claims shall be determined
separately on a monthly basis for each of the self-insured plan coverages. EWS shall submit a
monthly written invoice to SNI detailing SNI’s portion of the Pre-Transition Claims. Any SNI
Employee, SNI Participant, or Former SNI Employee who is on long term disability leave and
receiving long term disability benefits under the Scripps Managed Disability Plan, shall cease
being eligible for such benefits at the Distribution Date and instead become covered under SNI’s
long term disability plan at such time. Any SNI Participant, SNI Employee, or Former SNI Employee
who is on a short term disability leave at the Distribution Date, and who but for the transactions
contemplated under the Separation Agreement would have become eligible for long term disability
benefits under the Scripps Managed Disability Plan, will no longer be eligible for such benefits
but rather will become eligible for long term disability benefits under SNI’s long term disability
plan. In the event that SNI pays EWS or any other vendor or provider costs, expenses, or
reimbursements for medical expenses of an SNI Participant which were incurred prior to the
Distribution Date, EWS shall pay or reimburse SNI for such expenses upon SNI providing evidence of
such payment.

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          (c) Retiree Medical. From and after the Transition Period End Date, SNI (acting
directly or through its Subsidiaries or Affiliates) shall cause the SNI Retiree Medical Program to
fully perform, pay and discharge all claims of SNI Participants under the SNI Retiree Medical
Program that are incurred on or after the Transition Period End Date. From and after the
Transition Period End Date, SNI shall reimburse EWS for all claims paid by the EWS Retiree Medical
Plan or EWS that were claims of SNI Participants incurred but not paid prior to such Transition
Period End Date. EWS shall submit a monthly written invoice to SNI detailing SNI’s Liability for
such claims. For purposes of this Section 5.05(c), and also for purposes of Section 2.01(b),
Liability for retiree medical shall be calculated as the excess of aggregate claims paid over
aggregate premiums collected in a particular month. If aggregate premiums collected in a
particular month exceed aggregate claims paid in such month, the excess shall be used and carried
forward as a credit to the succeeding month and used to offset SNI’s Liability in such succeeding
months.

          (d) Incurred Claim Definition. For purposes of this Section 5.05, a claim or
Liability is deemed to be incurred (A) with respect to medical, dental, vision and/or prescription
drug benefits, upon the rendering of health services or provision of supplies giving rise to such
claim or Liability; (B) with respect to life insurance, accidental death and dismemberment and
business travel accident insurance, upon the occurrence of the event giving rise to such claim or
Liability; (C) with respect to disability benefits, upon the date of an individual’s disability, as
determined by the disability benefit insurance carrier or claim administrator, giving rise to such
claim or Liability and (D) with respect to a period of continuous hospitalization (or any medical
or other service or supply performed or provided during the period of continuous hospitalization),
upon the date of admission to the hospital.

          (e) Treatment of Other Liabilities, Recoveries and Adjustments. For purposes of
applying the claim Liability provisions of paragraphs (b) and (c) above: (A) recoveries made by
the EWS Welfare Plans or EWS prior to the expiration of the Pre-Transition Claim Period with
respect to claims incurred prior to the Transition Period End Date, including
subrogation/reimbursement recoveries, claim adjustment recoveries and demutualization proceeds,
shall be taken into account as positive claim adjustments; and (B) other non-routine claim
Liabilities paid by the EWS Welfare Plans or EWS with respect to claims incurred prior to such
Transition Period End Date, including Medicare Secondary Payer Liability, shall be taken into
account as claim Liabilities.

          (f) Claim Experience. Notwithstanding the foregoing, SNI (acting directly or through
its Subsidiaries or Affiliates) shall use its commercially reasonable best efforts to ensure that
any claims experience under the EWS Welfare Plans attributable to SNI Participants is taken into
account when determining premium rates for the SNI Welfare Plans.

          (g) Audit Rights. SNI shall have the right, at its own expense, to audit, or to cause
an inspection body selected by SNI and composed of members with appropriate professional
qualifications to audit any invoices for the payment of self insured medical claims or retiree
medical claims, under Sections 5.05(b) and (c), respectively, in a commercially reasonable manner
during normal EWS business hours. EWS shall have identical rights with respect to any
reimbursements requested by SNI for pre-Distribution Date payments as described under Section
5.05(b) above.

     SECTION 5.06. Disposition of VEBA Assets. Following the Distribution Date, EWS and
SNI hereby agree to cooperate in good faith to ensure that EWS and its Subsidiaries and Affiliates
shall retain all Voluntary Employee Beneficiary Association Assets (of the Scripps Choice Plan) and
any related trusts, and in no event will any such Assets or such related trusts transfer to SNI or
one of its Subsidiaries or Affiliates.

     SECTION 5.07. Time-Off Benefits. SNI shall credit each SNI Participant with the
amount of accrued but unused vacation time, sick time and other time-off benefits as such SNI
Participant had with

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the EWS Group as of the Distribution Date. Notwithstanding the above, SNI shall not be
required to credit any SNI Participant with any accrual to the extent that a benefit attributable
to such accrual is provided by the EWS Group.

     SECTION 5.08. Disposition of Disability Plan Trust Assets. Following the
Distribution Date, EWS and SNI hereby agree to cooperate in good faith to ensure that EWS and its
Subsidiaries and Affiliates shall divide the assets in the trust for the EWS Managed Disability
Plan and any related trusts. To divide the assets, EWS and SNI shall use the accounting for the
most recent year available to determine the relative expenses for such year for disability plan
payments for each of the EWS Group and the SNI Group and use such proportions to divide the assets
at the Transition Period End Date for the EWS Managed Disability Plan.

     SECTION 5.09. Health Savings Accounts. With respect to any contributions made to a
Health Savings Account (“HSA”) on behalf of SNI Employees between the Distribution Date and
the Transition Period End Date for an HSA account, SNI will reimburse EWS for any amounts
contributed by EWS to HSA accounts of such individuals. EWS will submit a monthly invoice to SNI
detailing SNI’s portion of the contributions. In the event that SNI sponsors health plans that
will permit SNI Participants to participate in an HSA after such Transition Period End Date, SNI
will make HSA contributions on behalf of SNI Participants, as necessary. Notwithstanding any of
the above, each HSA account is an individual account that is controlled by each individual account
holder. The Parties agree that an individual’s HSA account is not subject to ERISA, and neither
EWS nor SNI will administer any HSA account of an individual.

     SECTION 5.10. Severance Pay Plans. To the extent not otherwise addressed in this
Agreement, (i) EWS shall retain and assume any Liabilities for severance or termination pay under
any plan, program, policy, or practice, applicable to, or sponsored by, any member of the EWS
Group, covering any EWS Participant, as of the Distribution Date, and (ii) SNI shall retain and
assume any Liabilities for severance or termination pay under any program, policy, or practice
applicable to, or sponsored by any member of the SNI Group, covering any SNI Participant, as of the
Distribution Date.

ARTICLE VI

NONQUALIFIED RETIREMENT PLANS

     SECTION 6.01. Deferred Compensation Plans.

          (a) SNI Deferred Compensation Plan. Effective as of the Distribution Date, SNI shall,
or shall cause one of its Subsidiaries or Affiliates to, establish a non-qualified deferred
compensation plan or plans to benefit SNI Participants who have accrued, or were eligible to
accrue, benefits under the EWS Deferred Compensation Plans immediately prior to the Distribution
Date, the terms of which are substantially comparable, in the aggregate, to the terms of the EWS
Deferred Compensation Plans as in effect immediately prior to the Distribution Date (the “SNI
Deferred Compensation Plans”). Effective as of the Distribution Date, SNI hereby agrees to
cause the SNI Deferred Compensation Plans to assume, and to fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of the EWS Deferred Compensation Plans with respect
to all SNI Participants therein. SNI (acting directly or through its Affiliates) shall be
responsible for any and all Liabilities and other obligations with respect to the SNI Deferred
Compensation Plans.

          (b) Continuation of Elections. As of the Distribution Date, SNI (acting directly or
through a Subsidiary or Affiliate) shall cause the SNI Deferred Compensation Plans to recognize and
maintain all elections (including deferral, distribution and investment elections) and beneficiary
designations with respect to SNI Participants under the EWS Deferred Compensation Plans for the
remainder of the period or periods for which such elections or designations are by their original
terms

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applicable, to the extent such election or designation is available under the SNI Deferred
Compensation Plans.

          (c) Treatment of Non-Employee Directors. For purposes of this Section 6.01, the term
SNI Participant shall be deemed to include each SNI Director and each Joint EWS/SNI Director (but
only with respect to one-half of his or her deferred compensation account).

     SECTION 6.02. Supplemental Executive Retirement Plan.

          (a) SNI Participation in EWS Supplemental Executive Retirement Plan. SNI Participants
who have accrued, or were eligible to accrue, benefits under the EWS Supplemental Executive
Retirement Plan immediately prior to the Distribution Date shall continue to accrue, or be eligible
to accrue, benefits under the EWS Supplemental Executive Retirement Plan for the Transition Period.
During the Transition Period, all benefits payable to SNI Participants under the EWS Supplemental
Executive Retirement Plan shall be paid by EWS. However, SNI (acting directly or through its
Subsidiaries or Affiliates) shall be responsible for any and all Liabilities and other obligations
with respect to SNI Participants under the EWS Supplemental Executive Retirement Plan during the
Transition Period, and shall reimburse EWS for all such amounts paid by it to SNI Participants
during the Transition Period.

          (b) Establishment of SNI Supplemental Executive Retirement Plan. Effective as of the
day immediately following the Transition Period End Date for the EWS Supplemental Executive
Retirement Plan, SNI shall, or shall cause one of its Subsidiaries or Affiliates to, establish a
defined benefit excess pension plan or plans to benefit SNI Participants who have accrued, or were
eligible to accrue, benefits under, the EWS Supplemental Executive Retirement Plan on the
Transition Period End Date for the EWS Supplemental Executive Retirement Plan, the terms of which
are substantially comparable, in the aggregate, to the terms of the EWS Supplemental Executive
Retirement Plan as in effect on the Transition Period End Date (the “SNI Supplemental Executive
Retirement Plan”). Effective as of the day immediately following the Transition Period End
Date for the EWS Supplemental Executive Retirement Plan, SNI hereby agrees to cause the SNI
Supplemental Executive Retirement Plan to assume, and fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of the EWS Supplemental Executive Retirement Plan
with respect to all SNI Participants therein. SNI (acting directly or through its Affiliates)
shall be responsible for any and all Liabilities and other obligations with respect to the SNI
Supplemental Executive Retirement Plan.

          (c) Continuation of Elections. Effective as of the day immediately following the
Transition Period End Date for the EWS Supplemental Executive Retirement Plan, SNI (acting directly
or through a Subsidiary or Affiliate) shall cause the SNI Supplemental Executive Retirement Plan to
recognize and maintain all distribution elections and beneficiary designations with respect to SNI
Participants under the EWS Supplemental Executive Retirement Plan for the remainder of the period
or periods for which such elections or designations are by their original terms applicable, to the
extent such election or designation is available under the SNI Supplemental Executive Retirement
Plan.

     SECTION 6.03. Selected Officers Retirement Program. Effective as of the Distribution
Date, EWS shall retain sponsorship of The E. W. Scripps Company Selected Officers Retirement Program and
shall retain responsibility for all Liabilities and fully perform, pay and discharge all
Liabilities, when such Liabilities become due, of The E. W. Scripps
Company Selected Officers Retirement
Program with respect to any individual.

ARTICLE VII

LONG-TERM INCENTIVE AWARDS

     SECTION 7.01. Long-Term Incentive Awards. The Parties shall use commercially
reasonable efforts to take all actions necessary or appropriate so each outstanding long-term
incentive award held by

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EWS Participants and SNI Participants under the EWS Share Plans shall be adjusted as provided
in this Article VII.

     SECTION 7.02. Treatment of Outstanding EWS Options.

          (a) Unvested Old EWS Options Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each Unvested Old EWS Option
held by an EWS Participant as of the Distribution Date shall be converted to a New EWS Option;
provided, however, that from and after the Distribution Date (i) the number of EWS
Common Shares subject to such New EWS Option shall be equal to the quotient obtained by dividing
(x) the number of EWS Common Shares subject to the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the EWS Ratio, with fractional shares rounded down to the nearest
whole share; and (ii) the per share exercise price of such New EWS Option shall be equal to the
product obtained by multiplying (x) the per share exercise price of the corresponding Old EWS
Option immediately prior to the Distribution Date, by (y) the EWS Ratio, rounded up to the nearest
whole cent.

          (b) Vested Old EWS Options Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each Vested Old EWS Option
held by an EWS Participant as of the Distribution Date shall be shall be converted into both a SNI
Option and a New EWS Option; provided, however, that from and after the
Distribution Date (i) the number of SNI Common Shares subject to the SNI Option shall be equal to
the quotient obtained by dividing (x) 80% of the number of EWS Common Shares subject to the
corresponding Old EWS Option immediately prior to the Distribution Date, by (y) the SNI Ratio, with
fractional shares rounded down to the nearest whole share; (ii) the number of EWS Common Shares
subject to the New EWS Option shall be equal to the quotient obtained by dividing (x) 20% of the
number of EWS Common Shares subject to the corresponding Old EWS Option immediately prior to the
Distribution Date, by (y) the EWS Ratio, with fractional shares rounded down to the nearest whole
share; (iii) the per share exercise price of the SNI Option shall be equal to the product obtained
by multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately
prior to the Distribution Date, by (y) the SNI Ratio, rounded up to the nearest whole cent; and
(iv) the per share exercise price of such New EWS Option shall be equal to the product obtained by
multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the EWS Ratio, rounded up to the nearest whole cent.

          (c) Old EWS Options Held by SNI Participants. As determined by the EWS Committee in
its sole discretion pursuant to its authority under the applicable EWS Share Plan and subject to
the specific provisions of the governing award agreement, each Old EWS Option held by a SNI
Participant as of the Distribution Date shall be converted into an SNI Option; provided,
however, that from and after the Distribution Date (i) the number of SNI Common Shares
subject to the SNI Option shall be equal to the quotient obtained by dividing (x) the number of EWS
Common Shares subject to the corresponding Old EWS Option immediately prior to the Distribution
Date, by (y) the SNI Ratio, with fractional shares rounded down to the nearest whole share; (ii)
the per share exercise price of the SNI Option shall be equal to the product obtained by
multiplying (x) the per share exercise price of the corresponding Old EWS Option immediately prior
to the Distribution Date, by (y) the SNI Ratio, rounded up to the nearest whole cent.

          (d) Non-Employee Directors’ Stock Options. As determined by the EWS Committee in its
sole discretion pursuant to its authority under the applicable EWS Share Plan and subject to the
specific provisions of the governing award agreement, each Old EWS Option held by individuals who
are or were serving as non-employee directors of EWS shall be treated as follows:

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               (i) Each Old EWS Option held by an EWS Director as of the Distribution Date shall be adjusted
as provided in Section 7.02(b).

               (ii) Each Old EWS Option held by a SNI Director as of the Distribution Date shall be converted
as provided in Section 7.02(c).

               (iii) Each Old EWS Option held by a Joint EWS/SNI Director as of the Distribution Date shall
be adjusted or converted as follows: (A) one-half of the Old EWS Option shall be adjusted as
provided in Section 7.02(b), and (B) one-half of the Old EWS Option shall be converted as provided
in Section 7.02(c).

          (e) Option Terms and Conditions. Except as provided above, the terms and conditions
applicable to the New EWS Options and the SNI Options shall be substantially similar to the terms
and conditions applicable to the corresponding Old EWS Option, including the terms and conditions
relating to vesting, the post-termination exercise period, and the applicable exercise and tax
withholding methods (as set forth in the applicable plan, award agreement or in the holder’s then
applicable employment agreement). The SNI Options shall be issued under and governed by the terms
of the SNI Share Plan. The SNI Share Plan shall provide that for purposes of the SNI Options held
by EWS Employees, continued service with the EWS Group from and after the Distribution Date shall
be deemed to constitute service with SNI.

          (f) Exercise of Options. Upon the exercise of a SNI Option, regardless of the holder
thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) SNI in
accordance with the terms of the SNI Option, and SNI shall be solely responsible for the issuance
of the SNI Common Shares, for ensuring the withholding of all applicable tax on behalf of the
employing entity of such holder, and for ensuring the remittance of such withholding taxes to the
employing entity of such holder. Upon the exercise of a New EWS Option, regardless of the holder
thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of EWS)
EWS in accordance with the terms of the New EWS Option, and EWS shall be solely responsible for the
issuance of EWS Common Shares, for ensuring the withholding of all applicable tax on behalf of the
employing entity of such holder and for ensuring the remittance of such withholding taxes to the
employing entity of such holder.

          (g) Waiting Period for Exercisability of Options. The EWS Options and SNI Options
shall not be exercisable during a period beginning on a date prior to the Distribution Date
determined by EWS in its sole discretion, and continuing until the EWS Ratio and the SNI Ratio are
determined after the Distribution, or such longer period as EWS determines is necessary
to implement the provisions of this Section.

     SECTION 7.03. Treatment of Outstanding EWS Restricted Shares.

          (a) Old EWS Restricted Shares Held by EWS Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each EWS Participant that
holds Old EWS Restricted Shares as of the Record Date that remain outstanding immediately prior to
the Distribution Date shall receive such number of SNI Restricted Shares as equals the number of
SNI Common Shares to which all other holders of EWS Common Shares shall be entitled to receive upon
the Distribution. Thereafter, the Old EWS Restricted Shares shall be treated as New EWS Restricted
Shares for purposes of this Agreement.

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          (b) Old EWS Restricted Shares held by SNI Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each SNI Participant that
holds Old EWS Restricted Shares as of the Record Date that remain outstanding immediately prior to
the Distribution Date shall receive such number of SNI Restricted Shares as equals the number of
SNI Common Shares to which all other holders of EWS Common Shares shall be entitled to receive upon
the Distribution. Thereafter, the Old EWS Restricted Shares shall be converted into New SNI
Restricted Shares; provided, however, that from and after the Distribution Date the
number of SNI Restricted Shares held by the participant as a result of the conversion shall equal
the product obtained by multiplying (i) the number of Old EWS Restricted Shares outstanding
immediately prior to the Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS
Ratio, by (y) the SNI Ratio, with fractional shares rounded down to the nearest whole share.

          (c) Restricted Shares Terms and Conditions. Except as provided above, the terms and
conditions applicable to each New EWS Restricted Share and SNI Restricted Share shall be
substantially similar to the terms and conditions applicable to the corresponding Old EWS
Restricted Share, including the restrictions and the terms and conditions relating to vesting and
methods of tax withholding (as set forth in the applicable plan, award agreement or in the holder’s
then applicable employment agreement). The SNI Restricted Shares shall be issued under and
governed by the terms of the SNI Share Plan. The SNI Share Plan shall provide that for purposes of
the SNI Restricted Shares held by EWS Employees, continued service with the EWS Group from and
after the Distribution Date shall be deemed to constitute service with SNI.

          (d) Settlement of Restricted Shares. Upon the vesting of the SNI Restricted Shares,
SNI shall be solely responsible for the settlement of all SNI Restricted Shares, regardless of the
holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on
behalf of the employing entity of such holder and for ensuring the remittance of such withholding
taxes to the employing entity of such holder. Upon the vesting of the EWS Restricted Shares, EWS
shall be solely responsible for the settlement of all EWS Restricted Shares, regardless of the
holder thereof, and for ensuring the satisfaction of all applicable tax withholding requirements on
behalf of the employing entity of such holder and for ensuring the remittance of such withholding
taxes to the employing entity of such holder.

     SECTION 7.04. Treatment of Outstanding EWS Restricted Share Units.

          (a) Old EWS Restricted Share Units held by SNI Participants. As determined by the EWS
Committee in its sole discretion pursuant to its authority under the applicable EWS Share Plan and
subject to the specific provisions of the governing award agreement, each SNI Participant that
holds Old EWS Restricted Share Units as of the Distribution Date shall receive such number of SNI
Restricted Share Units as equals the number of SNI Common Shares to which the individual would be
entitled had the EWS Restricted Share Units represented actual EWS Common Shares as of the Record
Date. Thereafter, the Old EWS Restricted Share Units held as of the Distribution Date by SNI
Participants shall be converted into New SNI Restricted Share Units; provided,
however, that from and after the Distribution Date the number of SNI Restricted Share Units
held by the participant as a result of the conversion shall equal the product obtained by
multiplying (i) the number of Old EWS Restricted Share Units outstanding immediately prior to the
Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS Ratio, by (y) the SNI
Ratio.

          (b) Restricted Share Units Terms and Conditions. Except as provided above, the terms
and conditions applicable to each SNI Restricted Share Unit shall be substantially similar to the
terms and conditions applicable to the corresponding Old EWS Restricted Share Unit, including the
restrictions and the terms and conditions relating to vesting, payment and methods of tax
withholding (as

24

 

set forth in the applicable plan, award agreement or in the holder’s then applicable
employment agreement). The SNI Restricted Share Units shall be issued under and governed by the
terms of the SNI Share Plan.

     SECTION 7.05. Treatment of EWS Phantom Stock Units.

          (a) EWS Phantom Stock Units Held by EWS Directors. Each EWS Director that holds EWS
Phantom Stock Units as of the Distribution Date shall receive such number of SNI Phantom Stock
Units as equals the number of SNI Common Shares to which the individual would be entitled had the
EWS Phantom Stock Units represented actual EWS Common Shares as of the Record Date.

          (b) EWS Phantom Stock Units held by SNI Directors. Each SNI Director that holds EWS
Phantom Stock Units as of the Distribution Date shall receive such number of SNI Phantom Stock
Units as equals the number of SNI Common Shares to which the individual would be entitled had the
EWS Phantom Stock Units represented actual EWS Common Shares as of the Record Date. Thereafter,
the EWS Phantom Stock Units held by a SNI Director shall be converted into SNI Phantom Stock Units;
provided, however, that from and after the Distribution Date the number of SNI Phantom Stock Units
held by the individual as a result of the conversion shall equal the product obtained by
multiplying (i) the number of EWS Phantom Stock Units held by a SNI Director immediately prior to
the Distribution Date, by (ii) the quotient obtained by dividing (x) the EWS Ratio, by (y) the SNI
Ratio.

          (c) EWS Phantom Stock Units held by Joint EWS/SNI Directors. The EWS Phantom Stock
Units held by a Joint EWS/SNI Director as of the Distribution Date shall be treated as follows: (i)
one-half of the EWS Phantom Stock Units shall be adjusted as provided in Section 7.05(a), and (ii)
one-half of the EWS Phantom Stock Units shall be converted as provided in Section 7.05(b).

          (d) Settlement of Units. The Phantom Stock Units shall be governed by and paid in
accordance with the terms of the applicable EWS Deferred Compensation Plan or SNI Deferred
Compensation Plan. Notwithstanding the foregoing and Section 6.01(b), any SNI Phantom Stock Units
credited under an EWS Deferred Compensation Plan on behalf of any individual shall be paid in cash
in lieu of SNI Common Shares (notwithstanding any distribution election to the contrary).

     SECTION 7.06. Cooperation. Each of the Parties shall establish an appropriate
administration system in order to handle in an orderly manner exercises of New EWS Options and SNI
Options and the settlement of EWS Restricted Shares, SNI Restricted Shares, EWS Restricted Share
Units, SNI Restricted Share Units, EWS Phantom Stock Units and the SNI Phantom Stock Units. Each of
the Parties will work together to unify and consolidate all indicative data and payroll and
employment information on regular timetables and make certain that each applicable entity’s data
and records in respect of such awards are correct and updated on a timely basis. The foregoing
shall include employment status and information required for tax withholding/remittance, compliance
with trading windows and compliance with the requirements of the Securities Exchange Act of 1934
and other applicable Laws.

     SECTION 7.07. SEC Registration. The Parties mutually agree to use commercially
reasonable efforts to maintain effective registration statements with the Securities and Exchange
Commission with respect to the long-term incentive awards described in this Article VII and the
employee stock purchase plans described in Section 8.04, to the extent any such registration
statement is required by applicable Law.

     SECTION 7.08. Savings Clause. The Parties hereby acknowledge that the provisions of
this Article VII are intended to achieve certain tax, legal and accounting objectives and, in the
event such objectives are not achieved, the Parties agree to negotiate in good faith regarding such
other actions that may be necessary or appropriate to achieve such objectives.

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ARTICLE VIII

ADDITIONAL COMPENSATION MATTERS

     SECTION 8.01. Incentive Awards.

          (a) EWS Incentive Awards. Except as otherwise provided in Section 6.01, effective as
of the Distribution Date, EWS shall assume or retain, as applicable, responsibilities for all
Liabilities, and fully perform, pay and discharge, all Liabilities, when such Liabilities become
due, relating to any incentive awards established under The E. W. Scripps Company Executive Bonus
Plan (or the comparable non-executive annual incentive plan maintained by EWS) that any EWS
Participant or SNI Participant is eligible to receive with respect to any performance period that
ends on or before the Distribution Date and, effective as of the Distribution Date, SNI shall have
no obligations with respect to any such annual incentive awards; provided that with respect to SNI Participants: (i) EWS shall determine the amount of such annual
incentive awards earned by the SNI Participants, which awards shall be determined without regard to
any discretionary adjustments that have the effect of reducing the amount of the incentive award
(other than discretionary adjustments applicable to all similarly-situated EWS Participants), and
(ii) such annual incentive awards shall be paid by EWS to the SNI Participants within 75 days after
the Distribution Date. Moreover, EWS acknowledges and
agrees that, except as otherwise provided herein, it shall have full responsibility with respect to
any Liabilities and the payment or performance of any obligations arising out of or relating to any
incentive, commission or other similar compensatory arrangement previously provided by any member
of the EWS Group or SNI Group to any EWS Participant.

          (b) SNI Incentive Awards. SNI acknowledges and agrees that, except as otherwise
provided herein, it shall have full responsibility with respect to any Liabilities and the payment
or performance of any obligations arising out of or relating to any incentive, commission or other
similar compensatory arrangement previously provided by any member of the EWS Group or SNI Group to
any SNI Participant.

          (c) Establishment of SNI Annual Incentive Plan. Effective as of the Distribution
Date, SNI shall have adopted or cause to be adopted an annual incentive plan that shall permit the
issuance of annual incentive awards for performance periods commencing after the Distribution Date
on terms and conditions substantially comparable to those under The E. W. Scripps Company Executive
Bonus Plan as in effect on the Distribution Date, provided that the incentive opportunities and
performance criteria shall be established in the sole discretion of the SNI Board of Directors or
appropriate committee thereof. SNI shall have full responsibility with respect to any Liabilities
and the payment or performance of any obligations arising out of or relating to its annual
incentive plan.

     SECTION 8.02. Change in Control Plan.

          (a) Establishment of SNI Executive Change in Control Plan. Effective as of the
Distribution Date, SNI shall have adopted or cause to be adopted an Executive Change in Control
Plan that provides benefits substantially comparable to the benefits provided under the Scripps
Senior Executive Change in Control Plan, as in effect on February 1, 2008.

          (b) Participation. As of the Distribution Date, SNI Employees shall cease to be
eligible to participate in the Scripps Senior Executive Change in Control Plan and SNI shall cause
such employees to commence participation in the Scripps Networks Interactive, Inc. Executive Change
in Control Plan on terms and conditions substantially comparable to those under the Scripps Senior
Executive Change in Control Plan as in effect on February 1, 2008, provided that the termination
pay multiples shall be established in the sole discretion of the SNI Board of Directors or
appropriate committee thereof. SNI shall have no obligations with respect to the Scripps Senior
Executive Change in Control Plan, as it may be amended from time to time.

     SECTION 8.03. Individual Arrangements.

          (a) EWS Individual Arrangements. EWS acknowledges and agrees that, except as
otherwise provided herein, it shall have full responsibility with respect to any Liabilities and
the payment

26

 

or performance of any obligations arising out of or relating to any employment, consulting,
non-competition, retention or other compensatory arrangement previously provided by any member of
the EWS Group or SNI Group to any EWS Participant.

          (b) SNI Individual Arrangements. SNI acknowledges and agrees that, except as otherwise
provided herein, it shall have full responsibility with respect to any Liabilities and the payment
or performance of any obligations arising out of or relating to any employment, consulting,
non-competition, retention or other compensatory arrangement previously provided by any member of
the EWS Group or SNI Group to any SNI Participant.

          (c) Effect of the Separation on Severance. The Parties acknowledge and agree that the
transactions contemplated by the Separation Agreement will not constitute a termination of
employment of any SNI Participant for purposes of any policy, plan, program or agreement of EWS or
SNI or any member of the EWS Group or SNI Group that provides for the payment of severance,
separation pay, salary continuation or similar benefits in the event of a termination of
employment.

     SECTION 8.04. Employee Stock Purchase Plan. As of the Distribution Date, SNI
Employees shall cease to be eligible to participate in The E. W. Scripps Company Employee Stock
Purchase Plan. SNI has established the Scripps Networks Interactive, Inc. Employee Stock Purchase
Plan, the terms and conditions of which may be amended from time to time. The Scripps Networks
Interactive, Inc. Employee Stock Purchase Plan shall not be considered a “mirror” or a successor
plan to The E. W. Scripps Company Employee Stock Purchase Plan. Participation in the Scripps
Networks Interactive, Inc. Employee Stock Purchase Plan shall be subject to the terms and
conditions of such plan and any new elections made with respect to such plan. Participants’
elections and other terms of participation in The E. W. Scripps Company Employee Stock Purchase
Plan shall not be transferred or carried over to the Scripps Networks Interactive, Inc. Employee
Stock Purchase Plan. Notwithstanding the foregoing, the accounts of the SNI Employees under The E.
W. Scripps Company Employee Stock Purchase Plan as of the Distribution Date shall remain under The
E. W. Scripps Company Employee Stock Purchase Plan and shall not be transferred to the Scripps
Networks Interactive, Inc. Employee Stock Purchase Plan.

     SECTION 8.05. Director Programs. Except as otherwise provided in Section 6.01, EWS
shall retain responsibility for the payment of any fees payable in respect of service on the EWS
Board of Directors that are payable but not yet paid as of the Distribution Date, and SNI shall
have no responsibility for any such payments (to an individual who is a member of the SNI Board of
Directors as of the Distribution Date or otherwise).

     SECTION 8.06. Sections 162(m)/409A. Notwithstanding anything in this Agreement to
the contrary (including the treatment of supplemental and deferred compensation plans, outstanding
long-term incentive awards and annual incentive awards as described herein), the Parties agree to
negotiate in good faith regarding the need for any treatment different from that otherwise provided
herein to ensure that (i) a federal income Tax deduction for the payment of such supplemental or
deferred compensation or long-term incentive award, annual incentive award or other compensation is
not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or
deferred compensation or long-term incentive award, annual incentive award or other compensation
does not cause the imposition of a tax under Section 409A of the Code.

ARTICLE IX

WORKERS’ COMPENSATION LIABILITIES

     SECTION 9.01. Pre-Distribution Date Claims. SNI shall not assume or retain any
workers’ compensation Liability relating to, arising out of, or resulting from any claim by a SNI
Employee that

27

 

results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, while such SNI Employee was employed by any member of the EWS Group (such a
claim, an “EWS Retained Claim”). All workers’ compensation Liabilities relating to,
arising out of, or resulting from (i) any EWS Retained Claim or (ii) any claim by an EWS Employee
or Former EWS Employee that results from an accident, incident, or event occurring, or from an
occupational disease which becomes manifest before the Distribution Date shall be retained by EWS.

     SECTION 9.02. Post-Distribution Date Claims. All workers’ compensation Liabilities
relating to, arising out of, or resulting from any claim by a SNI Employee or Former SNI Employee
that result from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, on or after the Distribution Date shall be retained by SNI. All workers’
compensation Liabilities relating to, arising out of, or resulting from any claim by an EWS
Employee or Former EWS Employee that results from an accident, incident or event occurring, or from
an occupational disease which becomes manifest, on or after the Distribution Date shall be retained
by EWS.

     SECTION 9.03. General. For purposes of this Section 9.03, a compensable injury shall
be deemed to be sustained upon the occurrence of the event giving rise to eligibility for workers’
compensation benefits or an occupation disease becomes manifest, as the case may be. EWS and SNI
shall cooperate in good faith with respect to the notification to appropriate Governmental
Authorities of the Distribution and the issuance of new, or the transfer of existing, workers’
compensation insurance policies and claims handling contracts.

ARTICLE X

INDEMNIFICATION

     SECTION 10.01. Indemnification by SNI. SNI shall indemnify, defend, release and hold
harmless EWS, each member of the EWS Group and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the “EWS Indemnified Parties”), from and against any and all Liabilities of
the EWS Indemnified Parties relating to, arising out of or resulting from (i) any breach by SNI or
any member of the SNI Group of this Agreement or (ii) any SNI Liabilities.

     SECTION 10.02. Indemnification by EWS. EWS shall indemnify, defend, release and hold
harmless SNI, each member of the SNI Group and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the “SNI Indemnified Parties,” and, together with EWS Indemnified Parties,
the “Indemnified Parties”), from and against any and all Liabilities of the SNI Indemnified
Parties relating to, arising out of or resulting from any (i) breach by EWS or any member of the
EWS Group of this Agreement or (ii) any EWS Liabilities.

     SECTION 10.03. Procedures for Indemnification of Third-Party Claims.

          (a) If an Indemnified Party shall receive notice of the assertion by any Person who is not a
member of the EWS Group or the SNI Group of any claim, or of the commencement by any such Person of
any Action, with respect to which an Indemnifying Party may be obligated to provide indemnification
to such Indemnified Party pursuant to Section 10.01 or Section 10.02, or any other Section of this
Agreement or any Ancillary Agreement (collectively, a “Third-Party Claim”), such
Indemnified Party shall give such Indemnifying Party written notice thereof within 30 days after
such Indemnified Party received notice of such Third-Party Claim. Any such notice shall describe
the Third-Party Claim in reasonable detail, including, if known, the amount of the Liability for
which indemnification may be available. Notwithstanding the foregoing, the failure of any
Indemnified Party or other Person to give notice as provided in this Section 10.03(a) shall not
relieve the related Indemnifying

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Party of its obligations under this Article X, except to the extent that such Indemnifying
Party is actually prejudiced by such failure to give notice.

          (b) An Indemnifying Party may elect (but is not required) to assume the defense of and defend,
at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any
Third-Party Claim. Within 30 days after the receipt of notice from an Indemnified Party in
accordance with Section 10.03(a) (or sooner, if the nature of such Third-Party Claim so requires),
the Indemnifying Party shall notify the Indemnified Party of its election whether the Indemnifying
Party will assume responsibility for defending such Third-Party Claim, which election shall specify
any reservations or exceptions. If, in such notice, the Indemnifying Party elects to assume the
defense of a Third-Party Claim, the Indemnified Party shall have the right to employ separate
counsel and to participate in (but not control) the defense, compromise, or settlement thereof, but
the fees and expenses of such counsel shall be the expense solely of such Indemnified Party.

          (c) If an Indemnifying Party elects not to assume responsibility for defending a Third-Party
Claim, or fails to notify an Indemnified Party of its election as provided in Section 10.03(b),
such Indemnified Party may defend such Third-Party Claim at the cost and expense of the
Indemnifying Party; provided, that in the event of any such failure to notify, the
Indemnifying Party may thereafter assume the defense of such Third-Party Claim upon notice to the
Indemnified Party (but the cost and expense of such Indemnified Party in defending such Third-Party
Claim incurred from the last day of the notice period under Section 10.03(b) until such date as the
Indemnifying Party shall assume the defense of such Third-Party Claim shall be paid by the
Indemnifying Party).

          (d) Unless the Indemnifying Party has failed to assume the defense of the Third-Party Claim in
accordance with the terms of this Agreement, no Indemnified Party may settle or compromise any
Third-Party Claim without the consent of the Indemnifying Party.

          (e) The Indemnifying Party shall have the right to compromise or settle a Third-Party Claim
the defense of which it shall have assumed pursuant to Section 10.03(b) or Section 10.03(c) and any
such settlement or compromise made or caused to be made of a Third-Party Claim in accordance with
this Article X shall be binding on the Indemnified Party, in the same manner as if a final judgment
or decree had been entered by a court of competent jurisdiction in the amount of such settlement or
compromise. Notwithstanding the foregoing sentence, the Indemnifying Party shall not have the
right to admit culpability on behalf of the Indemnified Party and shall not compromise or settle a
Third-Party Claim unless the compromise or settlement includes, as a part thereof, an unconditional
release of the Indemnified Party from Liability with respect to such Third-Party Claim and does not
require the Indemnified Party to make any payment that is not fully indemnified under this
Agreement or to be subject to any non-monetary remedy, in each case without the express prior
consent of the Indemnified Party (not to be unreasonably withheld or delayed).

     SECTION 10.04. Additional Matters.

          (a) Any claim with respect to a Liability that does not result from a Third-Party Claim shall
be asserted by written notice given by the Indemnified Party to the related Indemnifying Party.
Such Indemnifying Party shall have a period of 30 days after the receipt of such notice within
which to respond thereto. If such Indemnifying Party does not respond in writing within such
30-day period, such Indemnifying Party shall be deemed to have agreed to accept responsibility to
make payment. If such Indemnifying Party does not respond within such 30-day period or rejects
such claim in whole or in part, such Indemnified Party shall be free to pursue such remedies as may
be available to such Party as contemplated by this Agreement.

          (b) In the event of payment by or on behalf of any Indemnifying Party to any Indemnified Party
in connection with any Third-Party Claim, such Indemnifying Party shall be

29

 

subrogated to and shall stand in the place of such Indemnified Party as to any events or
circumstances in respect of which such Indemnified Party may have any right, defense or claim
relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party
Claim or against any other Person. Such Indemnified Party shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

          (c) In the event of an Action in which the Indemnifying Party is not a named defendant, if
either the Indemnified Party or Indemnifying Party shall so request, the Parties shall endeavor to
substitute the Indemnifying Party for the named defendant, if at all practicable. If such
substitution or addition cannot be achieved for any reason or is not requested, the named defendant
shall allow the Indemnifying Party to manage the Action as set forth in this Article X.

     SECTION 10.05. Contribution. In the event that the foregoing indemnity is
unenforceable under applicable laws, the Party from whom such indemnity is sought agrees to
contribute, in accordance with this Section 10.05, to cover any Liabilities for which such
indemnity is sought. For such Liabilities referred to in Section 10.01 or Section 10.02, as the
case may be, the Party from which indemnity is sought shall contribute in such proportion as is
appropriate to reflect the relative benefits received (or anticipated to be received) by the
respective Parties. For any other Liabilities, and if the allocation provided by the immediately
preceding sentence is unavailable for any reason, the Party from which indemnity is sought shall
contribute in such proportion as is appropriate to reflect not only such relative benefit but also
the relative fault of the Party from which indemnity is sought in connection with the conduct which
resulted in such Liabilities, as well as any other relevant equitable considerations. The Parties
agree that it would not be just and equitable if contribution were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to above.

     SECTION 10.06. Survival of Indemnities. The rights and obligations of each of EWS
and SNI and their respective Indemnified Parties under this Article X shall survive the sale or
other transfer by any Party of any Assets or the assignment by it of any Liabilities.

     SECTION 10.07. Remedies Cumulative. The remedies provided in this Article X shall be
cumulative and shall not preclude assertion by any Indemnified Party of any other rights or the
seeking of any and all other remedies against any Indemnifying Party; provided, that the
procedures set forth in this Article X shall be the exclusive procedures governing any indemnity
action brought under this Agreement.

ARTICLE XI

GENERAL AND ADMINISTRATIVE

     SECTION 11.01. Sharing Of Information. EWS and SNI (acting directly or through their
respective Subsidiaries or Affiliates) shall provide to the other and their respective agents and
vendors all Information as the other may reasonably request to enable the requesting Party to
administer efficiently and accurately each of its Benefit Plans, to assist SNI in obtaining its own
insurance policies to provide benefits under SNI Benefit Plans, and to determine the scope of, as
well as fulfill, its obligations under this Agreement; provided, however, that in the event that
any Party reasonably determines that any such provision of Information could be commercially
detrimental to such Party or any member of its Group, violate any Law or agreement to which such
Party or member of its Group is a party, or waive any attorney-client privilege applicable to such
Party or member of its Group, the Parties shall provide any such Information and the Parties shall
take all reasonable measures to comply with the obligations pursuant to this Section 11.01 in a
manner that mitigates any such harm or consequence to the extent practicable, and the Parties agree
to cooperate with each other and take such commercially reasonable

30

 

steps as may be practicable to preserve the attorney-client privilege with respect to the
disclosure of any such Information. Such Information shall, to the extent reasonably practicable,
be provided in the format and at the times and places requested, but in no event shall the Party
providing such Information be obligated to incur any out-of-pocket expenses not reimbursed by the
Party making such request or make such Information available outside of its normal business hours
and premises. Any Information shared or exchanged pursuant to this Agreement shall be subject to
the same confidentiality requirements set forth in Section 7.08 of the Separation Agreement. The
Parties also hereby agree to enter into any business associate agreements that may be required for
the sharing of any Information pursuant to this Agreement to comply with the requirements of HIPAA.

     SECTION 11.02. Reasonable Efforts/Cooperation. Each of the Parties hereto will use
its commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable under applicable Laws and
regulations to consummate the transactions contemplated by this Agreement, including adopting plans
or plan amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the
transactions contemplated by this Agreement for which the other Party seeks a determination letter
or private letter ruling from the IRS, an advisory opinion from the DOL or any other filing,
consent or approval with respect to or by a Governmental Authority.

     SECTION 11.03. Employer Rights. Subject to SNI’s obligations pursuant to Section
2.03 of this Agreement, nothing in this Agreement shall prohibit SNI or any of its Subsidiaries or
Affiliates from amending, modifying or terminating any SNI Benefit Plan at any time within its sole
discretion. In addition, nothing in this Agreement shall prohibit EWS or any of its Subsidiaries
or Affiliates from amending, modifying or terminating any EWS Benefit Plan at any time within its
sole discretion.

     SECTION 11.04.Non-Termination of Employment; No Third-Party Beneficiaries. No
provision of this Agreement or the Separation Agreement shall be construed to create any right, or
accelerate entitlement, to any compensation or benefit whatsoever on the part of any EWS Employee
or SNI Employee or other future, present, or former employee of any member of the EWS Group or SNI
Group under any EWS Benefit Plan or SNI Benefit Plan or otherwise. Without limiting the generality
of the foregoing, except as expressly provided in this Agreement, the occurrence of the
Distribution alone shall not cause any employee to be deemed to have incurred a termination of
employment that entitles such individual to the commencement of benefits under any of the EWS
Benefit Plans. Furthermore, this Agreement is solely for the benefit of the Parties hereto and
their respective successors and permitted assigns. Nothing in this Agreement, express or implied,
is intended to or shall confer upon any other person or persons (including any employee or former
employee of EWS or SNI or either of their respective Subsidiaries or Affiliates or any beneficiary
or dependent thereof) any rights, benefits or remedies of any nature whatsoever under or by reason
of this Agreement. No provision in this Agreement shall modify or amend any other agreement, plan,
program, or document unless this Agreement explicitly states that the provision “amends” that other
agreement, plan, program, or document. This shall not prevent the Parties entitled to enforce this
Agreement from enforcing any provision in this Agreement, but no other person shall be entitled to
enforce any provision in this Agreement on the grounds that it is an amendment to another
agreement, plan, program, or document unless the provision is explicitly designated as such in this
Agreement, and the person is otherwise entitled to enforce the other agreement, plan, program, or
document. If a person not entitled to enforce this Agreement brings a lawsuit or other action to
enforce any provision in this Agreement as an amendment to another agreement, plan, program, or
document, and that provision is construed to be such an amendment despite not being explicitly
designated as one in this Agreement, that provision in this Agreement shall be void ad initio,
thereby precluding it from having any amendatory effect. Furthermore, nothing in this Agreement is
intended to confer upon any employee or former employee of EWS, SNI or either of their respective
Subsidiaries or Affiliates any right to continued employment, or any recall or similar rights to an
individual on layoff or any type of approved leave.

31

 

     SECTION 11.05. Consent of Third Parties. If any provision of this Agreement is
dependent on the consent of any third party and such consent is withheld, the Parties hereto shall
use their reasonable best efforts to implement the applicable provisions of this Agreement to the
fullest extent practicable. If any provision of this Agreement cannot be implemented due to the
failure of such third party to consent, the Parties hereto shall negotiate in good faith to
implement the provision in a mutually satisfactory manner.

     SECTION 11.06. Access to Employees. Following the Distribution Date, EWS and SNI
shall, or shall cause each of their respective Subsidiaries or Affiliates to, make available to
each other those of their employees who may reasonably be needed in order to defend or prosecute
any legal or administrative action (other than a legal action between any EWS Group Member and any
SNI Group Member) to which any employee, director or Benefit Plan of the EWS Group or SNI Group is
a party and which relates to their respective Benefit Plans prior to the Distribution Date. The
Party to whom an employee is made available in accordance with this Section 11.06 shall pay or
reimburse the other Party for all reasonable expenses that may be incurred by such employee in
connection therewith, including all reasonable travel, lodging, and meal expenses, but excluding
any amount for such employee’s time spent in connection herewith.

     SECTION 11.07. Beneficiary Designation/Release of Information/Right to Reimbursement.
To the extent permitted by applicable Law and except as otherwise provided for in this Agreement,
all beneficiary designations, authorizations for the release of information and rights to
reimbursement made by or relating to SNI Participants under EWS Benefit Plans shall be transferred
to and be in full force and effect under the corresponding SNI Benefit Plans until such beneficiary
designations, authorizations or rights are replaced or revoked by, or no longer apply, to the
relevant SNI Participant.

     SECTION 11.08. Not a Change in Control. The Parties hereto acknowledge and agree
that the transactions contemplated by the Separation Agreement and this Agreement do not constitute
a “change in control” for purposes of any EWS Benefit Plan or SNI Benefit Plan.

ARTICLE XII

MISCELLANEOUS

     SECTION 12.01. Effect if Distribution Does Not Occur. Notwithstanding anything in
this Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution
Date, then all actions and events that are, under this Agreement, to be taken or occur effective
immediately prior to or as of the Distribution Date, or otherwise in connection with the
Distribution, shall not be taken or occur except to the extent specifically agreed to in writing by
EWS and SNI and neither Party shall have any Liability to the other Party under this Agreement.

     SECTION 12.02. Relationship of Parties. Nothing in this Agreement shall be deemed or
construed by the Parties or any third party as creating the relationship of principal and agent,
partnership or joint venture between the Parties, it being understood and agreed that no provision
contained herein, and no act of the Parties, shall be deemed to create any relationship between the
Parties other than the relationship set forth herein.

     SECTION 12.03. Affiliates. Each of EWS and SNI shall cause to be performed, and
hereby guarantees the performance of, all actions, agreements and obligations set forth in this
Agreement to be performed by each of their Subsidiaries or Affiliates, respectively.

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     SECTION 12.04. Notices. All notices, requests, claims, demands and other
communications hereunder must be in writing and will be deemed to have been duly given only if
delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the
Parties at the following addresses or facsimile numbers:

If to EWS, to:

The E.W. Scripps Company

312 Walnut Street, 28th Floor

Cincinnati, Ohio 45202

Facsimile: (513) 977-3720

Attention: Lisa A. Knutson, Senior Vice President, Human Resources

with a copy to:

The E.W. Scripps Company

312 Walnut Street, 28th Floor

Cincinnati, Ohio 45202

Facsimile: (513) 977-3042

Attention: William Appleton, Senior Vice President, General Counsel

If to SNI, to:

Scripps Networks Interactive, Inc.

312 Walnut Street, 28th Floor

Cincinnati, Ohio 45202

Facsimile: (513) 977-3921

Attention: Jennifer L. Weber, Senior Vice President, Human Resources

with a copy to:

Scripps Networks Interactive, Inc.

312 Walnut Street, 28th Floor

Cincinnati, Ohio 45202

Facsimile: (513) 977-5166

Attention: Anatolio B. Cruz III, Executive Vice President, Chief Legal Officer and

Corporate Secretary

     All such notices, requests and other communications will (i) if delivered personally to the
address as provided in this section, be deemed given upon delivery, (ii) if delivered by facsimile
transmission to the facsimile number as provided in this section, be deemed given upon receipt and
(iii) if delivered by mail in the manner described above to the address as provided in this
section, be deemed given upon receipt (in each case regardless of whether such notice, request or
other communication is received by any other Person to whom a copy of such notice, request or other
communication is to be delivered pursuant to this section). Any party from time to time may change
its address, facsimile number or other information for the purpose of notices to that party by
giving notice specifying such change to the other party.

     SECTION 12.05. Entire Agreement. This Agreement, together with all exhibits and
schedules hereto, constitute the entire agreement of the parties with respect to the subject matter
hereof and shall supersede all previous negotiations, commitments and writings with respect to such
subject matter.

     SECTION 12.06. Waiver. Any term or condition of this Agreement may be waived at any
time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a

33

 

written instrument duly executed by or on behalf of the Party waiving such term or condition.
No waiver by any Party of any term or condition of this Agreement, in any one or more instances,
shall be deemed or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion. All remedies, either under this Agreement or by Law or otherwise
afforded, will be cumulative and not alternative.

     SECTION 12.07. Amendment. This Agreement may be amended, modified, waived,
supplemented or superseded, in whole or in part, only by a written instrument signed by duly
authorized signatories of the Parties.

     SECTION 12.08. Governing Law. This Agreement and any dispute arising out of, in
connection with or relating to this Agreement shall be governed by and construed in accordance with
the Laws of the State of Ohio, without giving effect to the conflicts of laws principles thereof.

     SECTION 12.09. Submission to Jurisdiction; Waivers. To the fullest extent permitted
by applicable Law, each Party hereto (a) agrees that any claim, action or proceeding by such Party
seeking any relief whatsoever arising out of, relating to or in connection with, this Agreement or
the transactions contemplated hereby shall be brought only in the United States District Court for
the Southern District of Ohio or any Ohio State court, in each case, located in the County of
Hamilton and not in any other State or Federal court in the United States of America or any court
in any other country, (b) agrees to submit to the exclusive jurisdiction of such courts located in
the County of Hamilton for purposes of all legal proceedings arising out of, or in connection with,
this Agreement or the transactions contemplated hereby, (c) waives and agrees not to assert any
objection that it may now or hereafter have to the laying of the venue of any such action brought
in such a court or any claim that any such action brought in such a court has been brought in an
inconvenient forum, (d) agrees that mailing of process or other papers in connection with any such
action or proceeding in the manner provided in Section 12.04 or any other manner as may be
permitted by Law shall be valid and sufficient service thereof and (e) agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by applicable Law.

     SECTION 12.10. Headings. The headings used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions hereof.

     SECTION 12.11. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which together will constitute
one and the same instrument.

     SECTION 12.12. No Assignment; Binding Effect. Neither Party shall be permitted to
assign, in whole or in part, directly or indirectly, by operation of law or otherwise, any of its
rights or obligations under this Agreement without the prior written consent of the other Party and
any unauthorized assignment shall be null and void. Notwithstanding such prohibition on
assignment:

          (a) Nothing herein shall prohibit, modify or limit the ability of the Parties to transfer or
allocate Assets and Liabilities, as the case may be, to any entity within the EWS Group or the SNI
Group in connection with, or in furtherance of, the Distribution and, to the extent that any such
transfer or allocation results in an assignment of this Agreement or any rights or obligations
hereunder, then the Parties shall make such amendments, revisions or modifications to this
Agreement as are reasonably necessary to reflect the affect of such assignment.

          (b) Either Party may assign all, but not less than all, of its rights or obligations under
this Agreement in connection with a consolidation or merger transaction in which such Party is not
the continuing or surviving entity or the sale by such Party of all or substantially all of its
properties and assets, provided that: (i) prior to such transaction becoming effective, the
continuing, surviving or

34

 

acquiring entity shall have executed and delivered to the other Party a written agreement, in
form and substance reasonably satisfactory to the other Party, pursuant to which such entity agrees
to be bound by all of the terms, conditions and provisions of this Agreement as if named as a
“Party” hereto and (ii) no Party shall be obligated to materially change the nature, scope or
volume of its rights or obligations under this Agreement as a result of any such assignment.

     SECTION 12.13. Severability. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future Law, the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom.

ARTICLE XIII

DISPUTE RESOLUTION

     SECTION 13.01. General. Except with respect to injunctive relief described below, any
controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall
attempt to be settled first, by good faith efforts of the Parties to reach mutual agreement, and
second, if mutual agreement is not reached to resolve the dispute, by final, binding arbitration as
set out below.

     SECTION 13.02. Initiation. A Party that wishes to initiate the dispute resolution
process shall send written notice to the other Party, in accordance with Section 12.04, with a
summary of the controversy and a request to initiate these dispute resolution procedures. Each
Party shall appoint a knowledgeable, responsible representative who has the authority to settle the
dispute, to meet and to negotiate in good faith to resolve the dispute. The discussions shall be
left to the discretion of the representatives who may utilize other alternative dispute resolution
procedures such as mediation to assist in the negotiations. Discussions and correspondence among
the representatives for purposes of these negotiations (a) shall be treated as Information subject
to the provisions of Section 7.08 of the Separation Agreement developed for purposes of settlement,
(b) shall be exempt from discovery and production and (c) shall not be admissible in the
arbitration described above or in any lawsuit pursuant to Rule 408 of the Federal Rules of
Evidence. Documents identified in or provided with such communications that are not prepared for
purposes of the negotiations are not so exempted and may, if otherwise admissible, be admitted in
evidence in the arbitration or lawsuit. The Parties agree to pursue resolution under this
subsection for a minimum of 30 calendar days before requesting arbitration.

     SECTION 13.03. Arbitration Request. If the dispute is not resolved under the
preceding subsection within 30 calendar days of the initial written notice, either Party may demand
arbitration by sending written notice to the other Party. The Parties shall promptly submit the
dispute to the American Arbitration Association for resolution by a single neutral arbitrator
acceptable to both Parties, as selected under the rules of the American Arbitration Association.
The dispute shall then be administered according to the American Arbitration Association’s
Commercial Arbitration Rules, with the following modifications: (i) the arbitration shall be held
in a location mutually acceptable to the Parties, and, if the Parties do not agree, the location
shall be Cincinnati, Ohio; (ii) the arbitrator shall be licensed to practice law; (iii) the
arbitrator shall conduct the arbitration as if it were a bench trial and shall use, apply and
enforce the Federal Rules of Evidence and Federal Rules of Civil Procedure; (iv) except for
breaches related to Information subject to Section 11.01, the arbitrator shall have no power or
authority to make any award that provides for consequential, punitive or exemplary damages or
extend the term hereof; (v) the arbitrator shall control the scheduling so that the hearing is
completed no later than 30 calendar days after the date of the demand for arbitration; and (vi) the
arbitrator’s decision shall be given within five calendar days thereafter in summary form that
states the award, without written decision, which decision shall follow the plain meaning of this
Agreement, and in the event of any ambiguity, the intent of the Parties. Judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction over the Parties. Each
Party to the dispute shall bear its own expenses arising out of the arbitration,

35

 

except that the Parties shall share the expenses of the facilities to conduct the arbitration
and the fees of the arbitrator equally.

     SECTION 13.04. Injunctive Relief. The foregoing notwithstanding, each Party shall
have the right to seek injunctive relief in an applicable court of law or equity to preserve the
status quo pending resolution of the dispute and enforce any decision relating to the resolution of
the dispute.

[signature page follows]

36

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	THE E.W. SCRIPPS COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SCRIPPS NETWORKS INTERACTIVE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

37EX-10.4

Exhibit 10.4

SCRIPPS NETWORKS INTERACTIVE, INC.

2008 LONG-TERM INCENTIVE PLAN

1. Purpose; Effective Date.

The plan shall be known as the Scripps Networks Interactive, Inc. 2008 Long-Term Incentive Plan
(the “Plan”). The purpose of the Plan is to promote the long-term growth and profitability of
Scripps Networks Interactive, Inc. (the “Company”) and its subsidiaries by (i) providing directors
of the Company and officers and key employees of the Company and its subsidiaries with incentives
to improve stockholder values and contribute to the success of the Company and (ii) enabling the
Company to attract, retain and reward the best available persons for positions of substantial
responsibility. Grants of incentive or nonqualified stock options, stock appreciation rights in
tandem with or independent of options (“SARs”), restricted or nonrestricted share awards,
performance units, or any combination of the foregoing may be made under the Plan. In addition, the
Plan permits the grant of awards in substitution of awards issued under The E. W. Scripps Company
1997 Long-Term Incentive Plan, as amended, in accordance with the terms of the Employee Matters
Agreement by and between The E. W. Scripps Company and the Company (the “Employee Matters
Agreement”).

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

2. Definitions.

     (a) “Affiliate” means any Person controlling or under common control with the Company or any
Person of which the Company directly or indirectly has Beneficial Ownership of securities having a
majority of the voting power.

     (b) “Beneficial Ownership” and “Beneficial Owner” have the meanings provided in Rule 13d-3
promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”).

     (c) “Cause” means:

     (i) commission of a felony or an act or series of acts that results in material injury to
the business or reputation of the Company or any subsidiary;

     (ii) willful failure to perform duties of employment, if such failure has not been cured in
all material respects within twenty (20) days after the Company or any subsidiary, as applicable,
gives notice thereof; or

     (iii) breach of any material term, provision or condition of employment, which breach has
not been cured in all material respects within twenty (20) days after the Company or any
subsidiary, as applicable, gives notice thereof.

     (d) “Change in Control” shall occur with respect to all participants in the Plan when after
the Distribution Date (except as may be otherwise prescribed by the Committee in an award
agreement):

     (i) any Person becomes a “Beneficial Owner” of a majority of the outstanding Common Voting
Shares, $.01 par value, of the Company (or shares of capital stock of the Company with comparable
or unlimited voting rights), excluding, however, The Edward W. Scripps Trust (the “Trust”) and
the trustees thereof, and any person that is or becomes a party to the Scripps Family Agreement,
dated October 15, 1992, as amended currently and as it may be amended from time to time in the
future (the “Family Agreement”);

1

 

     (ii) the majority of the Board of Directors of the Company (the “Board”) consists of
individuals other than Incumbent Directors; or

     (iii) assets of the Company accounting for 90% or more of the Company’s revenues
(hereinafter referred to as “substantially all of the Company’s assets”) are disposed of pursuant
to a merger, consolidation, sale, or plan of liquidation and dissolution (unless the Trust or the
parties to the Family Agreement have Beneficial Ownership of, directly or indirectly, a
controlling interest (defined as owning a majority of the voting power) in the entity surviving
such merger or consolidation or acquiring such assets upon such sale or in connection with such
plan of liquidation and dissolution).

     (e) “Change in Control” shall occur with respect to a particular participant in the Plan
employed by a particular subsidiary or division of a subsidiary when after the Distribution Date
(except as may be otherwise prescribed by the Committee in an award agreement):

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

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

     (f) “Closing Price” of Class A Common Shares of the Company means, with respect to the date in
question, the closing sales price of such shares on the New York Stock Exchange, or if the
Company’s Class A Common Shares are not traded on such exchange, or otherwise traded publicly, the
value determined, in good faith, by the Committee.

     (g) “Conversion Awards” means awards that are issued in substitution of, or in connection
with, stock options, restricted shares or restricted share units that were granted under The E. W.
Scripps Company 1997 Long-Term Incentive Plan, as amended, to employees of The E. W. Scripps
Company and its Subsidiaries in accordance with the terms of the Employee Matters Agreement.

     (h) “Disability” means a permanent disability deemed to have occurred under any Company-wide
employee long-term disability plan.

     (i) “Distribution Date” has the meaning given that term in Section 1.

     (j) “Effective Date” has the meaning given that term in Section 1.

     (k) “Employee Matters Agreement” has the meaning given that term in Section 1.

     (l) “Incentive Stock Option” means an option conforming to the requirements of Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”).

     (m) “Incumbent Director” means a member of the Board on the Distribution Date, provided that
any person becoming a director subsequent to the Distribution Date, whose election or nomination
for election was supported by a majority of the directors who then comprised the Incumbent
Directors shall be considered to be an Incumbent Director.

     (n) “Nonqualified Stock Option” means any stock option other than an Incentive Stock Option.

     (o) “Person” has the meaning provided in Section 3(a)(9) of the Exchange Act, and as used in
Sections 13(d) and 14(d)

2

 

thereof, including a “group” (as defined in Section 13(d) of such Act).

     (p) “Retirement” means retirement as defined under the Pension Plan, or as otherwise
determined by the Board of Directors of the Company.

     (q) “SARs” means stock appreciation rights.

     (r) “Pension Plan” means the Scripps Pension Plan, or its successor in which the Company
participates.

     (s) “Subsidiary” means a corporation or other entity of which outstanding shares or interests
representing 50% or more of the combined voting power of such corporation or entity are owned
directly or indirectly by the Company. For purposes of determining whether any person may be a
participant with respect to any grant of Nonqualified Stock Options or SARs that are intended to be
exempt from Section 409A of the Code, the term “Subsidiary” means any corporation or other entity
as to which the Company is an “eligible issuer of service recipient stock” (within the meaning of
409A of the Code).

3. Administration.

The Plan shall be administered by a committee consisting of at least three directors of the Company
(the “Committee”). Subject to the provisions of the Plan, the Committee shall be authorized to
determine the form and substance of grants made under the Plan to each participant; establish the
conditions and restrictions, if any, subject to which such grants will be made or will vest;
interpret the Plan; and adopt, amend, or rescind such rules and regulations for carrying out the
Plan as it may deem appropriate. Decisions of the Committee on all matters relating to the Plan
shall be conclusive and binding on all parties, including the Company, its shareholders, and the
participants in the Plan. The Committee may appoint a subcommittee of its members as permitted or
appropriate under applicable laws and regulations. Such subcommittee may exercise such powers of
the Committee as the Committee designates. All actions of the subcommittee shall be reported to the
Committee.

4. Shares Available for the Plan.

Subject to adjustments as provided in Section 16, an aggregate of 19,000,000 shares of Class A
Common Shares of the Company (hereinafter referred to from time to time as “shares”) may be issued
pursuant to the Plan. Such shares may be unissued or treasury shares. If any grant under the Plan
expires or terminates unvested or unexercised, becomes unexercisable or is forfeited as to any
shares, such unpurchased or forfeited shares shall thereafter be available for further grants under
the Plan unless, in the case of options granted under the Plan, SARs in tandem therewith are
exercised. The Company shall not be required to deliver any fractional shares pursuant to this
Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions
in cash.

5. Participation.

Except with respect to Conversion Awards, participation in the Plan shall be limited to directors
of the Company and officers and key employees of the Company and its subsidiaries, all as approved
by the Committee.

Nothing in the Plan or in any grant thereunder shall confer any right on an employee to continue in
the employ of the Company or shall interfere in any way with the right of the Company to terminate
an employee at any time.

Incentive or nonqualified stock options, SARs, restricted or nonrestricted stock or stock unit
awards, performance units, or any combination thereof, may be granted for such number of shares as
the Committee shall determine (such individuals to whom grants are made being herein referred to
from time to time as “grantees”). A grant of any type made hereunder in any one year to an eligible
participant shall neither guarantee nor preclude a further grant of that or any other type to such

3

 

employee in that year or subsequent years.

The maximum number of shares with respect to which incentive or nonqualified options, SARs,
restricted or nonrestricted stock, restricted share units or performance units, or any combination
of the foregoing may be granted to any single individual in any one calendar year shall not exceed
1,000,000 shares. The maximum number of shares for which incentive stock options may be granted
under the Plan shall not exceed 5,000,000 shares.

6. Incentive and Nonqualified Option Grants.

The Committee may grant from time to time to eligible participants Incentive Stock Options,
Nonqualified Stock Options, or any combination thereof. The options granted shall take such form as
the Committee shall determine, subject to the following terms and conditions.

     (a) Price. The price per share deliverable upon the exercise of each option (“exercise price”)
shall not be less than 100% of the Closing Price of the shares on the date the option is granted.
In the case of the grant of any Incentive Stock Option to a participant who, at the time of the
grant, owns more than 10% of the total combined voting power of all classes of stock of the Company
or any of its subsidiaries, such price per share, if required by the Code at the time of grant,
shall not be less than 110% of the Closing Price of the shares on the date the option is granted.

     (b) Cash Exercise. Options may be exercised in whole or in part upon payment of the exercise
price of the shares to be acquired. Payment shall be made in cash or, in the discretion of the
Committee, in shares previously acquired by the participant or a combination of cash and shares.
The Closing Price of shares tendered on exercise of options shall be determined on the date of
exercise.

     (c) Cashless Exercise. Options may be exercised in whole or in part upon delivery of an
irrevocable written notice of exercise pursuant to any cashless exercise program that the Company
offers from time to time.

     (d) Terms of Options. The term during which each option may be exercised shall be determined
by the Committee, but in no event shall a Nonqualified Stock Option be exercisable more than ten
years and one day from the date it is granted or an Incentive Stock Option, more than ten years
from the date it is granted; and, in the case of the grant of an Incentive Stock Option to an
employee who at the time of the grant owns more than 10% of the total combined voting power of all
classes of stock of the Company or any of its subsidiaries, in no event shall such option be
exercisable, if required by the Code at the time of grant, more than five years from the date of
the grant. All rights to purchase shares pursuant to an option shall, unless sooner terminated,
expire at the date designated by the Committee. The Committee shall determine the date on which
each option shall become exercisable and may provide that an option shall become exercisable in
installments. The shares constituting each installment may be purchased in whole or in part at any
time after such installment becomes exercisable, subject to such minimum exercise requirement as is
designated by the Committee. The Committee may accelerate the time at which any option may be
exercised in whole or in part. Unless otherwise provided herein, a grantee who is an employee of
the Company or a subsidiary may exercise an option only if he or she is, and has continuously been
since the date the option was granted, an employee of the Company or a subsidiary. Prior to the
exercise of the option and delivery of the stock represented thereby, the grantee shall have no
rights to any dividends or be entitled to any voting rights on any stock represented by outstanding
options.

     (e) Limitations on Grants. If required by the Code at the time of grant of an Incentive Stock
Option, the aggregate Closing Price (determined as of the grant date) of shares for which such
option is exercisable for the first time during any calendar year may not exceed $100,000.

     (f) Automatic Cashless Exercise. Except with respect to Conversion Awards granted
prior to February 22, 2007, the plan administrator will automatically order the cashless exercise
of in-the-money Nonqualified Stock Options that have

4

 

vested but not been exercised on the expiration date of the grant. Plan participants who are
subject to the preclearance section of the Company’s Insider Trading Policy are excluded from this
automatic exercise provision.

     (g) Conversion Awards. Notwithstanding anything contained herein to the contrary, each
Conversion Award for an option granted under The E. W. Scripps Company 1997 Long-Term Incentive
Plan, as amended, shall reflect the conversion formula and other equitable adjustments and terms
and conditions provided for in the Employee Matters Agreement, all as determined by the Committee
in its sole discretion.

7. Stock Appreciation Right Grants.

     (a) Tandem SARs. The Committee shall have the authority to grant SARs in tandem with an option
(“tandem SAR”) under this Plan to any grantee, either at the time of grant of an option or
thereafter by amendment to an option. The exercise of an option shall result in an immediate
forfeiture of its corresponding tandem SAR, and the exercise of a tandem SAR shall cause an
immediate forfeiture of its corresponding option. Tandem SARs shall be subject to such other terms
and conditions as the Committee may specify. A tandem SAR shall expire at the same time as the
related option expires and shall be transferable only when, and under the same conditions as, the
related option is transferable.

     Tandem SARs shall be exercisable only when, to the extent and on the conditions that the
related option is exercisable. No tandem SAR may be exercised unless the Closing Price of a share
on the date of exercise exceeds the exercise price of the option to which the SAR corresponds.

     Upon the exercise of a tandem SAR, the grantee shall be entitled to a distribution in an
amount equal to the difference between the Closing Price of a share on the date of exercise and the
exercise price of the option to which the SAR corresponds. The Committee shall decide whether such
distribution shall be in cash, in shares, or in a combination thereof.

     All tandem SARs will be exercised automatically on the last day prior to the expiration date
of the related option, so long as the Closing Price of a share on that date exceeds the exercise
price of the related option.

     (b) Independent SARs. SARs may be granted by the Committee independently of options
(“Independent SARs”). An Independent SAR will entitle a participant to receive, with respect to
each share as to which the SAR is exercised, the excess of the Closing Price of a share on the date
of exercise over its Closing Price on the date the Independent SAR was granted.

     Any exercise of an Independent SAR must be in writing, signed by the participant and delivered
or mailed to the Company, accompanied by any other documents required by the Committee.

     Each Independent SAR will be exercised automatically on the last day prior to the expiration
date established by the Committee at the time of the award of such SAR.

     Payment of the amount to which a participant is entitled upon the exercise of an Independent
SAR shall be made in cash or shares, or in a combination thereof, as the Committee shall determine.
To the extent that payment is made in shares, the shares shall be valued at their Closing Price on
the date of exercise of such SAR.

8. Performance Units for Employees.

Performance units may be granted on a contingent basis to participants at any time and from time to
time as determined by the Committee. The Committee shall have complete discretion in determining
the number of performance units so granted to a participant and the appropriate period over which
performance is to be measured (“performance cycle”). Each performance unit shall have a dollar
value determined by the Committee at the time of grant. The value of each unit may be

5

 

fixed or it may be permitted to fluctuate based on a performance factor (e.g., return on equity)
selected by the Committee. The Committee shall establish performance goals that, depending on the
extent to which they are met, will determine the ultimate value of the performance unit or the
number of performance units earned by participants, or both.

The Committee shall establish performance goals and objectives for each performance cycle on the
basis of such criteria and objectives as the Committee may select from time to time. During any
performance cycle, the Committee shall have the authority to adjust the performance goals and
objectives for such cycle for such reasons as it deems equitable.

The Committee shall determine the number of performance units that have been earned by a
participant on the basis of the Company’s performance over the performance cycle in relation to the
performance goals for such cycle. Earned performance units may be paid out in restricted or
nonrestricted shares, cash, or a combination of both, as the Committee shall determine at the time
of grant or payment.

A participant must be an employee of the Company at the end of the performance cycle in order to be
entitled to payment of a performance unit granted in respect of such cycle; provided, however,
that, except as otherwise provided by the Committee, if a participant ceases to be an employee of
the Company upon the occurrence of his or her death, Retirement, or Disability prior to the end of
the performance cycle, the participant shall earn a proportionate number of performance units based
upon the elapsed portion of the performance cycle and the Company’s performance over that portion
of such cycle in accordance with terms and conditions established by the Committee upon grant of a
performance unit.

9. Restricted and Nonrestricted Share Grants; Performance-Based Grants; Restricted Share Unit
Grants.

The Committee may grant shares or share units under the Plan to such participants and in such
amounts as it determines. Each grant shall specify the applicable restrictions, if any, the
duration of such restrictions, the time or times at which such restrictions shall lapse with
respect to all or a specified number of shares or units that are part of the grant, and the terms
and conditions under which a participant can earn a proportionate number of restricted shares or
units in the event of his or her death, Retirement or Disability. The Committee may grant shares or
units the vesting of which is based on the attainment of written performance goals approved by the
Committee for a performance period established by the Committee (i) while the outcome for such
performance period is substantially uncertain and (ii) no more than 90 days after the commencement
of such performance period to which the performance goal relates. The performance goals, which must
be objective, shall be based solely upon specified levels of or growth in one or more of the
following criteria:

1. Earnings per share;

2. Segment profit;

3. Gross margin;

4. Operating or other expenses;

5. Earnings before interest and taxes (“EBIT”);

6. Earnings before interest, taxes, depreciation and amortization;

7. Free cash flow;

8. Net income;

9. Return on investment (determined with reference to one or more
categories of income or cash flow and one or more categories of assets, capital or equity);

10. Stock price appreciation;

11. Viewer ratings or impressions;

12. Online revenue;

13. Online segment profit;

14. Website traffic;

15. Market share; and

16. Revenue.

The foregoing criteria may relate to the Company, one or more of its Subsidiaries or one or more of
its divisions, units, partnerships, joint ventures or minority investments, product lines or
products or any combination of the foregoing, and

6

 

may be applied on an absolute basis or be relative to the Company’s annual budget, one or more peer
group companies or indices, or any combination thereof, all as the Committee shall determine. In
addition, to the degree consistent with Section 162(m) of the Code (or any successor section
thereto), the performance goals may be calculated without regard to extraordinary items or adjusted
for unusual or unplanned items.

Notwithstanding the foregoing, the Committee may reduce or shorten the duration of any restriction
applicable to any participant under the Plan to the degree consistent with Section 162(m) of the
Code (or any successor section thereto). With respect to an award of restricted shares, the
participant will be required to deposit shares with the Company during the period of any
restriction thereon and to execute a blank stock power therefor.

The Committee may grant restricted shares that are convertible into restricted share units at the
election of the participant to defer receipt of such shares. To the extent permitted by Section
409A of the Code, the Committee may permit participants holding restricted shares granted under the
Plan heretofore or hereafter to convert such shares into restricted share units if the participant
elects to defer receipt of such shares. The terms and conditions of any conversion shall be
approved by the Committee. Each participant who receives a grant of restricted share units (whether
by conversion of restricted shares or otherwise) shall be eligible to receive, at the expiration of
the applicable deferral period, one share for each restricted share unit, and the Company shall
issue to and register in the name of each such participant a certificate for that number of shares.
Participants who receive restricted share units shall have no rights as shareholders with respect
to such restricted share units until such time as share certificates are issued to the
participants; provided, however, that quarterly during the applicable restricted period for all
restricted share units so received, the Company shall pay to each such participant an amount equal
to the sum of all dividends and other distributions paid by the Company during the prior quarter on
that equivalent number of shares.

Notwithstanding anything contained herein to the contrary, each Conversion Award for a restricted
share or restricted share unit granted under The E. W. Scripps Company 1997 Long-Term Incentive
Plan, as amended, shall reflect the conversion formula and other equitable adjustments and terms
and conditions provided for in the Employee Matters Agreement, all as determined by the Committee
in its sole discretion.

10. Change in Control.

     (a) Change in Control of the Company. Upon a Change in Control of the Company, all grants made
under the Plan shall become fully vested and, in the case of options, be exercisable until their
respective expiration dates.

     (b) Change in Control of Subsidiary or Division Employing a Participant. Upon a Change in
Control of a subsidiary or division by which a participant is employed, all of such participant’s
grants shall become fully vested and, in the case of options, be exercisable until their respective
expiration dates.

11. Termination of Employment.

     (a) Employees. If a participant ceases to be an employee of the Company or any subsidiary due
to death, Disability or Retirement, each of the participant’s grants shall become fully vested and,
in the case of an option, be exercisable until its expiration date. Notwithstanding the foregoing,
in the event of such death, Disability or Retirement, any restricted share grant or restricted
share unit grant contingent on the achievement of performance measures shall vest proportionately
in accordance with the terms and conditions established by the Committee upon grant of such share
or unit.

     If a participant ceases to be an employee of the Company or any subsidiary due to Cause, all
of his or her grants, whether or not vested, shall be forfeited, other than restricted and
nonrestricted share grants that vested prior to such participant’s ceasing to be such an employee
due to Cause and options or other grants that were exercised prior to such cessation.

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     If a participant ceases to be an employee of the Company or any subsidiary for any reason
other than as set forth in the first two paragraphs of this Section 11(a), each of his or her
grants that had vested on or before the date of termination shall remain vested and, in the case of
an option, be exercisable for, and shall otherwise terminate at the end of, a period of 90 days
after the date of termination of employment, but in no event after its expiration date; and each of
a participant’s grants that had not vested on or before the date of such termination shall be
forfeited.

     Notwithstanding anything to the contrary herein, if a participant ceases to be an employee of
the Company or any subsidiary for any reason other than Cause, the Committee at its sole discretion
may accelerate the vesting of any grant, so that it will become fully vested as of the date of such
participant’s termination of employment and in the case of an option may extend the exercise period
to a date that is no more than ten years from the date of grant.

     (b) Directors. If a participant is a director and not an officer or employee of the Company or
a subsidiary, each of his or her grants shall be nonforfeitable and shall vest and, if applicable,
be exercisable until its expiration date, regardless of whether or not such director continues to
be a director of the Company, unless such director has been removed for cause as a director in
accordance with applicable law (in which event such director shall forfeit all outstanding grants,
whether vested or not, at the date of his or her removal, other than restricted or nonrestricted
share grants that vested prior to such removal and options or other grants that were exercised
prior to such removal).

     (c) Conversion Awards. For purposes of applying this Section 11 to Conversion Awards held by
EWS Employees (as defined in the Employee Matters Agreement), or any other vesting schedule or
expiration date related those Conversion Awards, continued service with the EWS Group (as defined
in the Employee Matters Agreement) from and after the Effective Date shall be deemed to constitute
continued service with the Company or any subsidiary.

12. Withholding of Taxes.

The Company may require, as a condition to any grant under the Plan or to the delivery of
certificates for shares issued hereunder, that the grantee pay to the Company, in cash, any
federal, state or local taxes of any kind required by law to be withheld with respect to any grant
or any delivery of shares. The Committee may permit participants to pay such taxes through the
withholding of shares otherwise deliverable to such participant in connection with such grant or
the delivery to the Company of shares otherwise acquired by the participant. The Closing Price of
shares withheld by the Company or tendered to the Company for the satisfaction of tax withholding
obligations under this section shall be determined on the date such shares are withheld or
tendered. The Company, to the extent permitted or required by law, shall have the right to deduct
from any payment of any kind (including salary or bonus) otherwise due to a grantee any federal,
state or local taxes of any kind required by law to be withheld with respect to any grant or to the
delivery of shares under the Plan, or to retain or sell without notice a sufficient number of the
shares to be issued to such grantee to cover any such taxes, provided that the Company shall not
sell any such shares if such sale would be considered a sale by such grantee for purposes of
Section 16 of the Exchange Act.

13. Written Agreement.

Each participant to whom a grant is made under the Plan shall enter into a written agreement with
the Company that shall contain such provisions, consistent with the provisions of the Plan, as may
be established by the Committee.

14. Listing and Registration.

If the Committee determines that the listing, registration, or qualification upon any securities
exchange or under any law of shares subject to any option, SAR, performance unit, or share or share
unit award is necessary or desirable as a condition of, or in connection with, the granting of same
or the issue or purchase of shares thereunder, no such option or SAR may be

8

 

exercised in whole or in part, no such performance unit paid out, or no shares issued unless such
listing, registration or qualification is effected free of any conditions not acceptable to the
Committee.

15. Transfer of Employee.

Transfer of an employee from the Company to a subsidiary, from a subsidiary to the Company, and
from one subsidiary to another shall not be considered a termination of employment. Nor shall it be
considered a termination of employment if an employee is placed on military or sick leave or such
other leave of absence which is considered as continuing intact the employment relationship; in
such a case, the employment relationship shall be continued until the date when an employee’s right
to reemployment shall no longer be guaranteed either by law or by contract.

16. Adjustments.

In the event of a reorganization, recapitalization, stock split, stock dividend, combination of
shares, merger, consolidation, distribution of assets, or any other change in the corporate
structure or shares of the Company that occurs after the Distribution Date, the Committee shall
make such adjustments as it deems appropriate in the number and kind of shares reserved for
issuance under the Plan, in the number and kind of shares covered by grants made under the Plan,
and in the exercise price of outstanding options. In the event of any merger, consolidation or
other reorganization in which the Company is not the surviving or continuing corporation, all
grants outstanding on the date of such event shall be assumed by the surviving or continuing
corporation. In no event shall any adjustment be required under this Section 16 if the Committee
determines that such action could cause an award to fail to satisfy the conditions of an applicable
exception from the requirements of Section 409A of the Code or otherwise could subject a
participant to the additional tax imposed under Section 409A of the Code in respect of an
outstanding award.

17. Termination and Modification of the Plan.

The Board of Directors, with such approval of the shareholders as may be required, may modify or
terminate the Plan and from time to time may suspend, and if suspended, may reinstate any or all of
the provisions of the Plan, except that no modification, suspension or termination of the Plan may,
without the consent of the grantee affected, alter or impair any grant previously made under the
Plan.

To the extent permitted by Section 409A of the Code, and with the consent of the grantee affected
thereby, and with such approval of the shareholders as may be required, the Committee may amend or
modify a grant in any manner to the extent that the Committee would have had the authority to make
such grant as so modified or amended, including without limitation to change the date or dates as
of which (i) an option becomes exercisable, (ii) a performance unit is to be determined or paid, or
(iii) restrictions on shares or share units are to be removed.

The Committee shall be authorized to make minor or administrative modifications to the Plan as well
as modifications to the Plan that may be dictated by requirements of federal or state laws
applicable to the Company or that may be authorized or made desirable by such laws.

18. Termination Date.

The Plan shall terminate at the close of business on the tenth anniversary of the Effective Date.

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19. Cash Awards.

To the extent permitted by Section 409A of the Code, the Committee may authorize cash awards to any
participant receiving shares under the Plan in order to assist such participant in meeting his or
her tax obligations with respect to such shares.

20. Transferability.

No option, SAR, or performance unit, restricted share or restricted share unit award granted
hereunder may be transferred by a participant except by will or the laws of descent and
distribution, pursuant to a qualified domestic relations order (as defined in the Code or the
Employee Retirement Income Security Act of 1974, as amended) or, during his or her lifetime, to one
or more members of his or her family, to one or more trusts for the benefit of one or more members
of his or her family, or to a partnership or partnerships of members of his or her family, provided
that no consideration is paid for the transfer and that such transfer would not result in the loss
of any exemption under Rule 16b-3 with respect to any grant hereunder. A transferee shall be
subject to all restrictions, terms and conditions applicable to the transferor-participant and
shall not be entitled to transfer the particular option, SAR, performance unit or restricted share
or restricted share unit award during his or her life.

21. Non-U.S. Participants.

In order to facilitate the making of any grant or combination of grants under this Plan, the
Committee may provide for such special terms for awards to participants who are foreign nationals
or who are employed by the Company or any Subsidiary outside of the United States of America or who
provide services to the Company or any Subsidiary under an agreement with a foreign nation or
agency, as the Committee may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments,
restatements or alternative versions of the Plan (including, without limitation, sub-plans) as it
may consider necessary or appropriate for such purposes, without thereby affecting the terms of the
Plan as in effect for any other purpose, and the Secretary of the Board or other appropriate
officer of the Company may certify any such document as having been approved and adopted in the
same manner as this Plan. No such special terms, supplements, amendments or restatements, however,
will include any provisions that are inconsistent with the terms of the Plan as then in effect
unless this Plan could have been amended to eliminate such inconsistency without further approval
by the shareholders of the Company.

22. Compliance with Section 409A of the Code.

Awards granted under this Plan shall be designed and administered in such a manner that they are
either exempt from the application of, or comply with, the requirements of Section 409A of the
Code. To the extent that the Committee determines that any award granted under the Plan is subject
to Section 409A of the Code, the award agreement shall incorporate the terms and conditions
necessary to avoid the imposition of an additional tax under Section 409A of the Code upon a
participant. Notwithstanding any other provision of the Plan or any award agreement (unless the
award agreement provides otherwise with specific reference to this Section): (i) an award shall not
be granted, deferred, accelerated, extended, paid out, settled, substituted or modified under this
Plan in a manner that would result in the imposition of an additional tax under Section 409A of the
Code upon a participant; and (ii) if an award is subject to Section 409A of the Code, and if the
participant holding the award is a “specified employee” (as defined in Section 409A of the Code,
with such classification to be determined in accordance with the methodology established by the
Company), no distribution or payment of any amount shall be made before a date that is six (6)
months following the date of such participant’s “separation from service” (as defined in Section
409A of the Code) or, if earlier, the date of the participant’s death. Although the Company intends
to administer the Plan so that awards will be exempt from, or will comply with, the requirements of
Section 409A of the Code, the Company does not warrant that any award under the Plan will qualify
for favorable tax treatment under Section 409A of the Code or any other provision of federal,
state, local, or non-United States law. Neither the Company, its affiliates, its

10

 

subsidiaries, nor their respective directors, officers, employees or advisers shall be liable to
any participant or any other person for any tax, interest, or penalties the participant might owe
as a result of the grant, holding, vesting, exercise, or payment of any award under the Plan. Any
reference in this Plan to Section 409A of the Code will also include the applicable proposed,
temporary or final regulations, or any other guidance, issued with respect to such Section by the
U.S. Department of the Treasury or the Internal Revenue Service.

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