Document:

EX-10.1

Exhibit
10.1

Execution Version

TRANSITION SERVICES AGREEMENT

by and between

THE E. W. SCRIPPS COMPANY

and

SCRIPPS NETWORKS INTERACTIVE, INC.

Dated as of July 1, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.02. General Interpretive Principles
	 	 	6	 
	 
	 	 	 	 
	ARTICLE II TRANSITION SERVICES
	 	 	6	 
	 
	 	 	 	 
	SECTION 2.01. EWS Scheduled Services
	 	 	6	 
	 
	 	 	 	 
	SECTION 2.02. SNI Scheduled Services
	 	 	6	 
	 
	 	 	 	 
	SECTION 2.03. Additional EWS Scheduled Services
	 	 	6	 
	 
	 	 	 	 
	SECTION 2.04. Additional SNI Scheduled Services
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.05. Scope of EWS Services; Standard of Performance for EWS Services
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.06. Scope of SNI Services; Standard of Performance for SNI Services
	 	 	8	 
	 
	 	 	 	 
	SECTION 2.07. Personnel Providing Services; Subcontracting
	 	 	9	 
	 
	 	 	 	 
	SECTION 2.08. Interruption of Services
	 	 	9	 
	 
	 	 	 	 
	SECTION 2.09. Disaster Recovery and Business Continuity
	 	 	10	 
	 
	 	 	 	 
	SECTION 2.10. Transition of Responsibilities
	 	 	11	 
	 
	 	 	 	 
	SECTION 2.11. Insurance
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III FEES AND EXPENSES
	 	 	12	 
	 
	 	 	 	 
	SECTION 3.01. Fees and Expenses
	 	 	12	 
	 
	 	 	 	 
	SECTION 3.02. Billing and Payment; No Set-off
	 	 	12	 
	 
	 	 	 	 
	SECTION 3.03. Third Party Vendor Costs
	 	 	12	 
	 
	 	 	 	 
	SECTION 3.04. Additional Costs
	 	 	13	 
	 
	 	 	 	 
	SECTION 3.05. Late Payments
	 	 	13	 
	 
	 	 	 	 
	SECTION 3.06. Tax Matters
	 	 	13	 
	 
	 	 	 	 
	ARTICLE IV TERM; TERMINATION
	 	 	14	 
	 
	 	 	 	 
	SECTION 4.01. Term
	 	 	14	 
	 
	 	 	 	 
	SECTION 4.02. Force Majeure Event Early Termination of Services
	 	 	14	 
	 
	 	 	 	 
	SECTION 4.03. Early Termination of this Agreement
	 	 	14	 
	 
	 	 	 	 
	SECTION 4.04. Sums Due
	 	 	14	 
	 
	 	 	 	 
	SECTION 4.05. Effect of Termination
	 	 	15	 
	 
	 	 	 	 
	ARTICLE V THIRD PARTY RIGHTS
	 	 	15	 
	 
	 	 	 	 
	SECTION 5.01. Third Parties and EWS Services
	 	 	15	 
	 
	 	 	 	 
	SECTION 5.02. Third Parties and SNI Services
	 	 	16	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VI INTERNAL CONTROLS
	 	 	16	 
	 
	 	 	 	 
	SECTION 6.01. Access Rights of SNI
	 	 	16	 
	 
	 	 	 	 
	SECTION 6.02. Access Rights of EWS
	 	 	16	 
	 
	 	 	 	 
	SECTION 6.03. Procedures
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VII TRANSITION TEAMS/SINGLE POINT OF CONTACT
	 	 	18	 
	 
	 	 	 	 
	SECTION 7.01. Appointment of Transition Teams
	 	 	18	 
	 
	 	 	 	 
	SECTION 7.02. Transition Team Actions
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VIII CONFIDENTIALITY; NON-SOLICITATION; RECORDS; ACCESS
	 	 	18	 
	 
	 	 	 	 
	SECTION 8.01. Confidentiality Obligations
	 	 	18	 
	 
	 	 	 	 
	SECTION 8.02. Non-Solicitation
	 	 	20	 
	 
	 	 	 	 
	SECTION 8.03. Records
	 	 	21	 
	 
	 	 	 	 
	SECTION 8.04. Access
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IX NO WARRANTY; LIMITATION OF LIABILITY;
	 	 	22	 
	 
	 	 	 	 
	SECTION 9.01. Warranties and Disclaimer of Warranty by EWS
	 	 	22	 
	 
	 	 	 	 
	SECTION 9.02. Warranties and Disclaimer of Warranty by SNI
	 	 	22	 
	 
	 	 	 	 
	SECTION 9.03. Obligation to Re-perform EWS Services
	 	 	23	 
	 
	 	 	 	 
	SECTION 9.04. Obligation to Re-perform SNI Services
	 	 	23	 
	 
	 	 	 	 
	SECTION 9.05. Limitation of Liability
	 	 	23	 
	 
	 	 	 	 
	SECTION 9.06. EWS Indemnity
	 	 	23	 
	 
	 	 	 	 
	SECTION 9.07. SNI Indemnity
	 	 	24	 
	 
	 	 	 	 
	ARTICLE X DISPUTE RESOLUTION
	 	 	24	 
	 
	 	 	 	 
	SECTION 10.01. General
	 	 	24	 
	 
	 	 	 	 
	SECTION 10.02. Initiation
	 	 	24	 
	 
	 	 	 	 
	SECTION 10.03. Arbitration Request
	 	 	24	 
	 
	 	 	 	 
	SECTION 10.04. Injunctive Relief
	 	 	25	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	25	 
	 
	 	 	 	 
	SECTION 11.01. Notices
	 	 	25	 
	 
	 	 	 	 
	SECTION 11.02. Entire Agreement
	 	 	26	 
	 
	 	 	 	 
	SECTION 11.03. Waiver
	 	 	26	 
	 
	 	 	 	 
	SECTION 11.04. Amendment
	 	 	26	 
	 
	 	 	 	 
	SECTION 11.05. Independent Contractors
	 	 	26	 
	 
	 	 	 	 
	SECTION 11.06. No Third Party Beneficiary
	 	 	26	 
	 
	 	 	 	 
	SECTION 11.07. No Assignment; Binding Effect
	 	 	26	 

-ii-

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 11.08. Headings
	 	 	27	 
	 
	 	 	 	 
	SECTION 11.09. Submission to Jurisdiction; Waivers
	 	 	27	 
	 
	 	 	 	 
	SECTION 11.10. Severability
	 	 	28	 
	 
	 	 	 	 
	SECTION 11.11. Governing Law
	 	 	28	 
	 
	 	 	 	 
	SECTION 11.12. Counterparts
	 	 	28	 
	 
	 	 	 	 
	SECTION 11.13. Order of Precedence
	 	 	28	 
	 
	 	 	 	 
	SECTION 11.14. Ownership of and License to Data
	 	 	28	 

-iii-

 

Exhibits

	 	 	 
	EWS Subsidiaries

	 	Exhibit 1.01(a)
	SNI Subsidiaries

	 	Exhibit 1.01(b)
	EWS Services Required Consents

	 	Exhibit 5.01
	SNI Services Required Consents

	 	Exhibit 5.02
	Transition Teams and Team Leaders

	 	Exhibit 7.01

Schedules

	 	 	 
	Rate Card

	 	Schedule 3.01

-iv-

 

TRANSITION SERVICES AGREEMENT

     THIS TRANSITION SERVICES AGREEMENT (this “Agreement”) is entered into this 1st day of
July, 2008, by and between The E. W. Scripps Company, an Ohio corporation (“EWS”), and
Scripps Networks Interactive, Inc., an Ohio corporation and, prior to the Distribution Date, an
indirect subsidiary of EWS (“SNI” and, together with EWS, each, a “Party” and
collectively, the “Parties”). Capitalized terms used in this Agreement 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 June 12, 2008 (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
beneficially owned by EWS shall be distributed 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 (the “Distribution”); and

     WHEREAS, in connection therewith and in order to ensure an orderly transition under the
Separation Agreement, EWS desires to provide, through the EWS Service Providers, to the SNI Group
certain transition services (the “EWS Services”) with respect to the operation of the SNI
Group following the Distribution Date, and SNI desires to provide, through the SNI Service
Providers, to the EWS Group certain transition services (the “SNI Services”) with respect
to the operation of the EWS Group following the Distribution Date, as such EWS Services and SNI
Services are more fully described in separate schedules (all such schedules, including any
appendices, exhibits or other attachments thereto, the “Schedules,” and each, a
“Schedule”) to this Agreement and pursuant to Section 2.10.

     NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby,
the Parties hereby 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.

     “Additional EWS Scheduled Service” shall have the meaning assigned to it in Section 2.03.

 - 1 - 

 

     “Additional SNI Scheduled Service” shall have the meaning assigned to it in Section 2.04.

     “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. As used herein, “control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such entity, whether through
ownership of voting securities or other interests, by contract or otherwise.

     “Agreement” shall have the meaning assigned to it in the preamble.

     “Ancillary Agreements” means the Employee Matters Agreement, the Trademark License Agreement,
the Transition Services Agreement, the Tax Allocation Agreement, the Software License Agreement and
the Retransmission 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.

     “Best Efforts” means with respect to either Party, the efforts that such Party would use on
behalf of itself to enforce its rights against a third party or cause such third party to honor its
obligations to such Party under any agreement with such third party.

     “Consents” means any consents, waivers, notices, reports or other filings to be made, or any
registrations, licenses, permits, authorizations to be obtained from, or approvals from, or
notification requirements to, any third parties, including any Governmental Authority.

     “Defaulting Party” shall have the meaning assigned to it in Section 4.03(a)(i).

     “Distribution” shall have the meaning assigned to it in the preamble.

     “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.

     “EWS” shall have the meaning assigned to it in the preamble.

     “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 Data” means all data relating primarily to the EWS Business (including all files, records
and other Information relating primarily to the EWS Business that have been uploaded to Software at
any time since EWS or SNI began using such Software, whether uploaded prior to, on, or after the
Distribution Date).

     “EWS Group” means, as of the Distribution Date, EWS and each of its Subsidiaries, including
those Subsidiaries set forth on Exhibit 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.

 - 2 - 

 

     “EWS Service Providers” means the EWS Group members and any Third Party Service Provider, in
each case, to the extent such Person is providing the EWS Services on behalf of EWS pursuant to any
Schedule.

     “EWS Services” shall have the meaning assigned to it in the recitals.

     “EWS Transition Plan” shall have the meaning assigned to it in Section 2.10(c).

     “Force Majeure Event” means any act of God, fire, flood, storm or explosion; any strike,
lockout or other labor disturbance; any material shortage of facilities, labor, materials or
equipment; any delay in transportation, breakdown or accident; any Law; any riot, war, act of
terror, rebellion or insurrection; any embargo or fuel or energy shortage; any interruption in
telecommunications or utilities services; or any other event, in each case beyond the control of a
Party and that actually prevents, hinders or delays such Party from performing its obligations
under this Agreement.

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

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

     “Information” means all information, whether or not patentable or copyrightable, 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, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications,
drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data,
disks, diskettes, tapes, computer programs or other Software, marketing plans, customer 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 technical, financial, legal,
employee or business information or data.

     “Intellectual Property” means all intellectual property and other similar proprietary rights
in any jurisdiction, whether owned or held for use under license, whether registered or
unregistered, including such rights in and to: (i) trademarks, trade dress, service marks,
certification marks, logos, trade names and the goodwill associated with the foregoing; (ii)
patents and patent applications and any and all divisions, continuations, continuations-in-part,
reissues, continuing patent applications, reexaminations and extensions thereof, any counterparts
claiming priority therefrom, utility models, patents of importation/confirmation, certificates of
invention, certificates of registration, design registrations or patents and like rights; (iii)
inventions, invention disclosures, discoveries and improvements, whether or not patentable; (iv)
writings and other works of authorship; (v) trade secrets (including, those trade secrets defined
in the Uniform Trade Secrets Act and under corresponding foreign statutory Law and common law),
Information, business, technical and know-how information, business processes, non-public
information, proprietary information and confidential information and rights to limit the use or
disclosure thereof by any Person; (vi) software, including data files, source code, object code,
application programming interfaces, databases and other software-related specifications and
documentation (collectively, “Software”); (vii) domain names and uniform resource locators; (viii)
moral rights; (ix) privacy and publicity rights; (x) advertising and promotional materials, whether
or not copyrightable; and (xi) claims, causes of action and defenses relating to the enforcement of
any of the foregoing; in each case, including any registrations of, applications to register, and
renewals and extensions of, any of the foregoing with or by any Governmental Authority in any
jurisdiction.

 - 3 - 

 

     “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, 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” shall have the meaning assigned to it in Section 9.06.

     “Non Defaulting Party” shall have the meaning assigned to it in Section 4.03(a).

     “Party” or “Parties” shall have the meaning assigned to such terms in the preamble.

     “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.

     “Prime Rate” means the “prime rate” published in the “Money Rates” section of The Wall Street
Journal. If The Wall Street Journal ceases to publish the “prime rate,” then the Parties shall
mutually agree to an equivalent publication that publishes such “prime rate,” and if such “prime
rate” is no longer generally published or is limited, regulated or administered by a Governmental
Authority, then a comparable interest rate index mutually agreed to by the Parties.

     “Registration Statement” means the Registration Statement on Form 10 of SNI as declared
effective by the United States Securities and Exchange Commission relating to the registration
under the United States Exchange Act of 1934, as amended, of the Class A Common Shares, par value
$0.01 per share, of SNI, including any post-effective amendments thereto and all exhibits
(including the SNI Information Statement) and other documents incorporated therein by reference.

     “Schedule” or “Schedules” shall have the meaning assigned to such terms in the recitals.

     “Separation Agreement” shall have the meaning assigned to it in the recitals.

     “Service Provider” means the EWS Service Providers and/or the SNI Service Providers, as the
context requires.

     “Service Recipient” means either any member of the EWS Group , to the extent such member of
the EWS Group is receiving a Service from an SNI Service Provider, or any member of the SNI Group ,
to the extent such member of the SNI Group is receiving a Service from an EWS Service Provider, as
the context requires.

 - 4 - 

 

     “Service Taxes” shall have the meaning assigned to it in Section 3.06.

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

     “SNI” shall have the meaning assigned to it in the preamble.

     “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 Data” means all data relating primarily to the SNI Business (including all files, records
and other Information relating primarily to the SNI Business that have been uploaded to Software at
any time since EWS or SNI began using such Software, whether uploaded prior to, on, or after the
Distribution Date).

     “SNI Group” means, as of the Distribution Date, SNI and each of its Subsidiaries, including
those Subsidiaries set forth on Exhibit 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 Information Statement” means the definitive information statement distributed to the
holders of EWS Common Voting Shares in connection with the Distribution and filed with the United
States Securities and Exchange Commission as Exhibit 99.1 to the Registration Statement or as an
exhibit to a Form 8-K of SNI.

     “SNI Service Providers” means the SNI Group members and any Third Party Service Provider, in
each case, to the extent such Person is providing the SNI Services on behalf of SNI pursuant to any
Schedule.

     “SNI Services” shall have the meaning assigned to it in the recitals.

     “SNI Transition Plan” shall have the meaning assigned to it in Section 2.10(b).

     “Software” shall have the meaning assigned to it in Section 1.01.

     “Subsidiary” means, with respect to any specified Person, any other Person of which the
specified Person (either alone or through or together with any other Subsidiary of such Person)
owns, directly or indirectly, a majority of the stock or other equity interests the holders of
which are generally entitled to vote for the election of the board of directors or other governing
body of such corporation or other legal entity and, solely for purposes of determining whether an
entity is within the EWS Group or the SNI Group, any other Person that directly, or indirectly
through one or more intermediaries, is controlled by such specified Person, with “control” meaning
the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such entity, whether through ownership of voting securities or other
interests, by contract or otherwise.

     “SOX” means the Sarbanes-Oxley Act of 2002, as amended from time to time.

     “Taxes” means any federal, state, local or foreign income, gross receipts, property, sales,
use, license, excise, franchise, employment, payroll, premium, withholding, alternative or added
minimum, ad valorem, transfer or excise tax or any other tax, custom, duty, governmental fee or
other like assessment

 - 5 - 

 

or charge or any kind whatsoever, together with any interest or penalty or addition thereto,
whether disputed or not, imposed by any Governmental Authority.

     “Tax Return” means any return, report or similar statement required to be filed with respect
to any Tax (including any attached Schedules), including any information return, claim for refund,
amended return or declaration of estimated Tax.

     “Team Leader” shall have the meaning assigned to it in Section 7.01.

     “Third Party Service Provider” means any third party that is providing Services on behalf of
EWS or SNI pursuant to any Schedule.

     “Third Party Vendor Costs” shall have the meaning assigned to it in Section 3.03.

     “Transition Plans” means the EWS Transition Plan and/or the SNI Transition Plan, as the
context requires.

     “Transition Team” shall have the meaning assigned to it in Section 7.01.

     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

TRANSITION SERVICES

     SECTION 2.01. EWS Scheduled Services. During the term of this Agreement, EWS shall
provide, or shall cause one or more EWS Service Providers to provide, to the applicable member or
members of the SNI Group (such member or members of the SNI Group as determined by SNI in its sole
discretion), the EWS Services, as such EWS Services are more particularly described in the
applicable Schedules attached hereto, upon the terms and subject to the conditions of this
Agreement and such applicable Schedules, including such EWS Services as shall be specified in the
Schedules as contemplated by Section 2.10.

     SECTION 2.02. SNI Scheduled Services. During the term of this Agreement, SNI shall
provide, or shall cause one or more SNI Service Providers to provide, to the applicable member or
members of the EWS Group (such member or members of the EWS Group as determined by EWS in its sole
discretion), the SNI Services, as such SNI Services are more particularly described in the
applicable Schedules attached hereto, upon the terms and subject to the conditions of this
Agreement and such applicable Schedules, including such SNI Services as shall be specified in the
Schedules as contemplated by Section 2.10.

     SECTION 2.03. Additional EWS Scheduled Services. If, from time to time during the
term of this Agreement, SNI determines that the provision of a service by the EWS Group that is not
described on

 - 6 - 

 

the Schedules is reasonably necessary to enable the SNI Group to operate the SNI Business,
including any Services contemplated by Section 2.10, and such service (whether or not then
currently being provided) is not included in a Schedule (such service, including the right to use,
or the use of, any Asset in connection with such service, hereinafter referred to as an
“Additional EWS Scheduled Service”), then SNI may give written notice thereof to EWS in
accordance with Section 11.01 hereof. Upon receipt of such notice by EWS, if EWS is reasonably
able to provide, or cause to be provided, such Additional EWS Scheduled Service, the Parties will
negotiate in good faith, on an arms’-length basis, to attempt to agree on a Schedule setting forth
the Additional EWS Scheduled Service, the terms and conditions (including any service level
requirements) for the provision of such Additional EWS Scheduled Service and the fees and expenses
payable by SNI for such Additional EWS Scheduled Service.

     SECTION 2.04. Additional SNI Scheduled Services. If, from time to time during the
term of this Agreement, EWS determines that the provision of a service by the SNI Group that is not
described on the Schedules is reasonably necessary to enable the EWS Group to operate the EWS
Business, including any Services contemplated by Section 2.10, and such service (whether or not
then currently being provided) is not included in a Schedule (such service, including the right to
use, or the use of, any Asset in connection with such service, herein after referred to as an
“Additional SNI Scheduled Service”), then EWS may give written notice thereof to SNI in
accordance with Section 11.01 hereof. Upon receipt of such notice by SNI, if SNI is reasonably
able to provide, or cause to be provided, the Additional SNI Scheduled Service, the Parties will
negotiate in good faith, on an arms’-length basis, to attempt to agree on a Schedule setting forth
the Additional SNI Scheduled Service, the terms and conditions (including any service level
requirements) for the provision of such Additional SNI Scheduled Service and the fees and expenses
payable by EWS for such Additional SNI Scheduled Service.

     SECTION 2.05. Scope of EWS Services; Standard of Performance for EWS Services.

          (a) EWS shall provide, or shall cause to be provided, the EWS Services in a manner and at a
level that is substantially similar in all material respects to the typical manner and average
level at which such EWS Services were provided to the applicable member or members of the SNI Group
during the six-month period prior to the Distribution Date, except to the extent that (i) a
different manner or level of an EWS Service is set forth in a Schedule, in which case such EWS
Service shall be provided in the manner and level as set forth in each such applicable Schedule or
(ii) such EWS Service has not been provided during the six-month period prior to the Distribution
Date and the applicable Schedule does not set forth a manner or level at which such EWS Service is
to be provided, in which case, such EWS Service shall be provided in the same manner and at the
same level at which such EWS Service was provided to the applicable member or members of the SNI
Group on the last occasion (or during the six-month period prior to the last occasion) such EWS
Service was provided to any member of the SNI Group.

          (b) Notwithstanding Section 2.05(a), EWS may change from time to time the manner in which any
EWS Service is provided to the SNI Group, to the extent that EWS is making a similar change in
performing a substantially similar service for itself or its Subsidiaries and if EWS provides SNI
substantially the same notice (in content and timing) as EWS provides itself and its Subsidiaries
with respect to such change; provided, that, EWS may not make any change to the manner in which any
EWS Service is provided to the SNI Group if such change would result in a violation, or cause any
member of the SNI Group to be in violation, of applicable Law; provided, further, if SNI can
demonstrate, in accordance with the terms of this Agreement, that such change is not commercially
reasonable and the SNI Group has suffered a material financial harm as a result of such change, EWS
shall be required to restore, or cause to be restored, the manner in which such EWS Service is
provided to the SNI Group to the manner required by Section 2.05(a). No such change shall affect
the fees and expenses for, or materially diminish the quality of, the applicable EWS Service.

 - 7 - 

 

          (c) Notwithstanding anything contained herein, EWS may decline to provide all or any part of
any particular Service, if EWS reasonably believes that the performance of any EWS Service
Provider’s obligations relating thereto would violate any applicable Law applicable to such EWS
Service Provider’s business, but only (i) to the extent reasonably necessary for such EWS Service
Provider to ensure compliance therewith, (ii) after such EWS Service Provider has applied
commercially reasonable efforts to reduce the amount and/or effect of any such restrictions and
(iii) after EWS has delivered written notice to SNI specifying in reasonable detail the nature of
the applicable restrictions and of any proposed resulting modification in such EWS Service
Provider’s obligations.

          (d) Subject to Section 9.03, in no event shall EWS be liable or accountable, in damages or
otherwise, for any error of judgment or any mistake of fact or Law or for any action or omission in
connection with the provision of the EWS Services by any EWS Service Provider that such EWS Service
Provider took or refrained from taking in good faith hereunder, except in the case of such EWS
Service Provider’s intentional breach, fraud, gross negligence or willful misconduct.

     SECTION 2.06. Scope of SNI Services; Standard of Performance for SNI Services.

          (a) SNI shall provide, or shall cause to be provided, the SNI Services in a manner and at a
level that is substantially similar in all material respects to the typical manner and average
level at which such SNI Services were provided to the applicable member or members of the EWS Group
during the six-month period prior to the Distribution Date, except to the extent that (i) a
different manner or level of an SNI Service is set forth in a Schedule, in which case such SNI
Service shall be provided in the manner and level as set forth in each such applicable Schedule or
(ii) such SNI Service has not been provided during the six-month period prior to the Distribution
Date and the applicable Schedule does not set forth a manner or level at which such SNI Service is
to be provided, in which case, such SNI Service shall be provided in the same manner and at the
same level at which such SNI Service was provided to the applicable member or members of the EWS
Group on the last occasion (or during the six-month period prior to the last occasion) such SNI
Service was provided to any member of the EWS Group.

          (b) Notwithstanding Section 2.06(a), SNI may change from time to time the manner in which any
SNI Service is provided to the EWS Group, to the extent that SNI is making a similar change in
performing a substantially similar service for itself or its Subsidiaries and if SNI provides EWS
substantially the same notice (in content and timing) as SNI provides itself and its Subsidiaries
with respect to such change; provided, that, SNI may not make any change to the manner in which any
SNI Service is provided to the EWS Group if such change would result in a violation, or cause any
member of the EWS Group to be in violation, of applicable Law; provided, further, if EWS can
demonstrate, in accordance with the terms of this Agreement, that such change is not commercially
reasonable and the EWS Group has suffered a material financial harm as a result of such change, SNI
shall be required to restore, or cause to be restored, the manner in which such SNI Service is
provided to the EWS Group to the manner required by Section 2.06(a). No such change shall affect
the fees and expenses for, or materially diminish the quality of, the applicable SNI Service.

          (c) Notwithstanding anything contained herein, SNI may decline to provide all or any part of
any particular Service, if SNI reasonably believes that the performance of any SNI Service
Provider’s obligations relating thereto would violate any applicable Law applicable to such SNI
Service Provider’s business, but only (i) to the extent reasonably necessary for such SNI Service
Provider to ensure compliance therewith, (ii) after such SNI Service Provider has applied
commercially reasonable efforts to reduce the amount and/or effect of any such restrictions and
(iii) after SNI has delivered written notice to EWS specifying in reasonable detail the nature of
the applicable restrictions and of any proposed resulting modification in such SNI Service
Provider’s obligations.

 - 8 - 

 

          (d) Subject to Section 9.04, in no event shall SNI be liable or accountable, in damages or
otherwise, for any error of judgment or any mistake of fact or Law or for any action or omission in
connection with the provision of the SNI Services by any SNI Service Provider that such SNI Service
Provider took or refrained from taking in good faith hereunder, except in the case of such SNI
Service Provider’s intentional breach, fraud, gross negligence or willful misconduct.

     SECTION 2.07. Personnel Providing Services; Subcontracting.

          (a) Each Service Provider shall have the sole and exclusive responsibility for selecting and
managing their personnel who provide the applicable Services and shall supervise them in connection
with the performance of the applicable Services. Such personnel shall be qualified, in the
reasonable opinion of such Service Provider, for the tasks to which they are assigned. Such
Service Provider shall pay and be responsible for all wages, salary or other compensation, taxes,
insurance and, except as expressly specified herein or in any Schedule or separate agreement, other
costs and expenses with respect to such personnel.

          (b) To the extent that any Service Provider determines that it is desirable for any reason in
its sole discretion, such Service Provider may, without revising the fees otherwise charged to the
Service Recipient, contract with reasonably qualified third parties to provide any or all Services
to the applicable Service Recipient for all or part of the remainder of the term of this Agreement.
No such Third Party Service Provider shall be provided access to any Information of Service
Recipient or the applicable member of its Group unless such Third Party Service Provider is bound
by non-disclosure obligations at least as restrictive as those contained herein.

          (c) Each Service Provider shall remain fully responsible for its performance of the applicable
Services in accordance with the terms hereof, including any obligations it performs through Third
Party Service Providers, and each Service Provider shall be solely responsible for all payments due
to Third Party Service Providers. Notwithstanding anything contained herein to the contrary,
amounts due from any Service Provider to its subcontractors shall not be included in, or be deemed
to be, Third Party Vendor Costs to the extent such amounts are for services that are duplicative of
any Services for which any Service Provider is charging a fee hereunder.

          (d) In the event any Liability arises from the performance of the Services hereunder by a
Third Party Service Provider, the Service Provider shall not be released from its responsibilities
under this Agreement and all applicable Service Recipients shall be subrogated to such rights, if
any, as the applicable Service Provider may have against such Third Party Service Provider with
respect to the Services provided by such Third Party Service Provider to or on behalf of the
Service Recipient.

     SECTION 2.08. Interruption of Services.

          (a) If, due to a Force Majeure Event, an EWS Service Provider is unable, wholly or partially,
to perform its obligations hereunder, then EWS shall be relieved of liability and shall suffer no
prejudice for failing to perform or comply during the continuance and to the extent of such whole
or partial inability to perform its obligations hereunder so caused by such Force Majeure Event;
provided, that, (i) EWS gives SNI prompt notice, written or oral (but if oral, promptly confirmed
in writing) of such whole or partial inability to perform the obligations hereunder and a
reasonably detailed description of the cause thereof and (ii) in the event such whole or partial
inability to perform its obligations hereunder is a result of such EWS Service Provider’s capacity
or similar limitations, with respect to the allocation of such limited resources, the SNI Group
shall be treated no less favorably by such EWS Service Provider than EWS or any Subsidiary of EWS.
If EWS fails to promptly give notice of such Force Majeure Event, then EWS shall only be relieved
from such performance or compliance from and after the giving of such

 - 9 - 

 

notice. EWS shall or shall cause the applicable EWS Service Provider(s) to use its
commercially reasonable efforts to remedy the situation caused by such Force Majeure Event and
remove, so far as possible and with reasonable timeliness, the cause of its inability to perform or
comply. EWS shall give SNI prompt notice of the cessation of the Force Majeure Event.

          (b) If, due to a Force Majeure Event, an SNI Service Provider is unable, wholly or partially,
to perform its obligations hereunder, then SNI shall be relieved of liability and shall suffer no
prejudice for failing to perform or comply during the continuance and to the extent of such whole
or partial inability to perform its obligations hereunder so caused by such Force Majeure Event;
provided, that, (i) SNI gives EWS prompt notice, written or oral (but if oral, promptly confirmed
in writing) of such whole or partial inability to perform the obligations hereunder and a
reasonably detailed description of the cause thereof and (ii) in the event such whole or partial
inability to perform its obligations hereunder is a result of such SNI Service Provider’s capacity
or similar limitations, with respect to the allocation of such limited resources, the EWS Group
shall be treated no less favorably by such SNI Service Provider than SNI or any Subsidiary of SNI.
If SNI fails to promptly give notice of such Force Majeure Event, then SNI shall only be relieved
from such performance or compliance from and after the giving of such notice. SNI shall or shall
cause the applicable SNI Service Provider(s) to use its commercially reasonable efforts to remedy
the situation caused by such Force Majeure Event and remove, so far as possible and with reasonable
timeliness, the cause of its inability to perform or comply. SNI shall give EWS prompt notice of
the cessation of the Force Majeure Event.

     SECTION 2.09. Disaster Recovery and Business Continuity.

          (a) The EWS Service Providers will document the process for recovering and maintaining
operations and services in the event of a disruption of normal operations, a disaster, a Force
Majeure Event or other unforeseen circumstance, which documentation will include procedures for an
orderly restoration of the computing environment, applications and network services. The intent of
such documentation is to document steps to remedy the impact or disruption of services within an
acceptable recovery time period. The EWS Service Providers will periodically review and maintain
such documentation throughout the term of this Agreement. The EWS Service Providers will notify
SNI of any material change or modification in such documentation.

          (b) The EWS Service Providers will back-up all system software, applications and data as
frequently and in such manner as shall be substantially comparable to the frequency and manner that
was practiced by the Parties during the six-month period prior to the Distribution Date. Each EWS
Service Provider will perform all such back-ups in accordance with such EWS Service Provider’s
internal policies and procedures. Without limiting the foregoing, the EWS Service Providers will
(i) properly store offsite all back-up tapes, disks and other media, (ii) maintain a log of all
back-ups to ensure proper rotation of back-up tapes, disks and other media and (iii) perform
back-ups at least weekly and send back-up tapes, disks and other media offsite within 48 hours.

          (c) The SNI Service Providers will document the process for recovering and maintaining
operations and services in the event of a disruption of normal operations, a disaster, a Force
Majeure Event or other unforeseen circumstance, which documentation will include procedures for an
orderly restoration of the computing environment, applications and network services. The intent of
such documentation is to document steps to remedy the impact or disruption of services within an
acceptable recovery time period. The SNI Service Providers will periodically review and maintain
such documentation throughout the term of this Agreement. The SNI Service Providers will notify
EWS of any material change or modification in such documentation.

 - 10 - 

 

          (d) The SNI Service Providers will back-up all system software, applications and data as
frequently and in such manner as shall be substantially comparable to the frequency and manner that
was practiced by the Parties during the six-month period prior to the Distribution Date. Each SNI
Service Provider will perform all such back-ups in accordance with such SNI Service Provider’s
internal policies and procedures. Without limiting the foregoing, the SNI Service Providers will
(i) properly store offsite all back-up tapes, disks and other media, (ii) maintain a log of all
back-ups to ensure proper rotation of back-up tapes, disks and other media and (iii) perform
back-ups at least weekly and send back-up tapes, disks and other media offsite within 48 hours.

     SECTION 2.10. Transition of Responsibilities.

          (a) Each Party agrees to use its good faith efforts to reduce or eliminate its and the other
members of its Group’s dependency on each Service provided by the other Party and members of its
Group as soon as is reasonably practicable and, in any event, at the times or upon the occurrence
of any events described in the SNI Transition Plan or EWS Transition Plan, as the case may be.
Each Party further agrees, for itself and each Service Provider within its Group, to cooperate with
the other Party and the Service Recipients within its Group, to facilitate the orderly transition
of responsibility for each Service to the Service Recipient or any third party designated by the
Service Recipient, including by providing the transition and termination services described in the
SNI Transition Plan or EWS Transition Plan, as the case may be.

          (b) As promptly as practicable, EWS and SNI will agree in good faith to a plan for SNI to
assume responsibility or eliminate the need for the provision of each EWS Service including such
matters as shall be set forth in the Schedules (the “SNI Transition Plan”). The SNI
Transition Plan will contain a schedule of transition events, including the expected date by which
the SNI Transition Plan for each EWS Service will be completed, any training (including the
transfer of knowledge and expertise) or other services that will be needed by the SNI Group members
(or their third party designees) and the estimated costs and expenses, if any, to be paid by SNI to
EWS with respect to such training and other services that EWS agrees to provide to the SNI Group
members in order to facilitate the completion of the SNI Transition Plan. The SNI Transition Plan
shall incorporate, without duplication of fees or expenses payable by the Service Recipient, all
agreements with respect to such matters as shall be set forth in the Schedules.

          (c) As promptly as practicable, EWS and SNI will agree in good faith to a plan for EWS to
assume responsibility or eliminate the need for the provision of each SNI Service including such
matters as shall be set forth in the Schedules (the “EWS Transition Plan”). The EWS
Transition Plan will contain a schedule of transition events, including the expected date by which
the EWS Transition Plan for each SNI Service will be completed, any training (including the
transfer of knowledge and expertise) or other services that will be needed by the EWS Group members
(or their third party designees) and the estimated costs and expenses, if any, to be paid by EWS to
SNI with respect to such training and other services that SNI agrees to provide to the EWS Group
members in order to facilitate the completion of the EWS Transition Plan. The EWS Transition Plan
shall incorporate, without duplication of fees or expenses payable by the Service Recipient, all
agreements with respect to such matters as shall be set forth in the Schedules.

          (d) If either Party from time to time determines that a modification to the SNI Transition
Plan or EWS Transition Plan is reasonably necessary, then such Party may give written notice
thereof to the other Party in accordance with Section 11.01 hereof and the Parties will negotiate
in good faith, on an arms’-length basis, to attempt to agree on terms and conditions in respect of
such requested modification, including any fees or expenses payable in connection therewith. Any
modification within the subject matter of a request for Additional EWS Scheduled Services pursuant
to Section 2.03 shall be

 - 11 - 

 

governed exclusively by Section 2.03. Any modification within the subject matter of a request
for Additional SNI Scheduled Services pursuant to Section 2.04 shall be governed exclusively by
Section 2.04.

     SECTION 2.11. Insurance.

          (a) During the term of this Agreement, each Party shall obtain and maintain the following
insurance: (i) Commercial General Liability with combined single limit of not less than $1,000,000
each occurrence for bodily injury and property damage; (ii) Worker’s Compensation in amounts
required by applicable law and Employer’s Liability with a limit of at least $1,000,000 each
accident; and (iii) Automobile Liability including coverage for owned/leased, non-owned or hired
automobiles with combined single limit of not less than $1,000,000 each accident.

          (b) All insurance policies obtained from U.S. insurers shall be maintained with companies
rated A or better by Best’s Key Rating Guide, and each party shall, upon request, provide the other
party with an insurance certificate confirming compliance with the requirements of this
Section 2.11(b).

          (c) Each Party shall exercise its commercially reasonable efforts to obtain from the insurance
companies providing the coverage required by this Agreement waivers of their rights to subrogation
against the other Party, its Subsidiaries, assignees, officers, directors and employees.

ARTICLE III

FEES AND EXPENSES

     SECTION 3.01. Fees and Expenses. The fees and expenses for each of the Services to be
provided hereunder shall be as set forth in the Schedules and Transition Plans; provided that the
applicable fees shall be as set forth on the Rate Card attached hereto as Schedule 3.01 in
the event not otherwise specified in a Schedule. The amount of each fee for Services set forth in
the Schedules shall increase automatically by an amount equal to 3.5% of such fee on January 1,
2009 and each January 1st thereafter until this Agreement or the applicable Service is terminated
in accordance with the terms hereof.

     SECTION 3.02. Billing and Payment; No Set-off. Amounts payable in respect of
Services under this Agreement shall be invoiced to the Party receiving such Services monthly in
arrears and paid to the Party providing such Services, as directed by such providing Party, which
amounts shall be due within 30 days after the date of invoice. All amounts due and payable
hereunder shall be invoiced and, except as set forth in any Schedule or Transition Plan, paid in
U.S. dollars without offset, set-off, deduction or counterclaim, however arising.

     SECTION 3.03. Third Party Vendor Costs. In order to provide the Services, the Parties
acknowledge and agree that it may be necessary for a Service Provider to pay third party suppliers
or vendors incremental or other costs and expenses or new costs or expenses, other than and in
addition to the costs and expenses payable to third party suppliers or vendors expressly described
in Schedules or Transition Plans, incidental to providing the Services, including programming fees,
maintenance fees, initiation and set up costs and license fees and costs associated with any third
party intellectual property (all such costs and expenses, the “Third Party Vendor Costs”).
Unless specified otherwise in the applicable Schedule(s), all such amounts shall be included in the
amounts payable by the Party receiving the applicable Services pursuant to Section 3.02.

 - 12 - 

 

     SECTION 3.04. Additional Costs.

          (a) SNI shall reimburse EWS for the costs designated in each Schedule or Transition Plan as
reimbursable by SNI. If it is necessary for any EWS Service Provider to incur any additional costs
in connection with the provision of the EWS Services, other than any Third Party Vendor Costs
(which Third Party Vendor Costs are governed by Section 3.03), EWS shall inform SNI of such need
before any such additional cost is incurred. Upon mutual written agreement of SNI and EWS, as to
the necessity of any such increase, subject to the remainder of this Section 3.04(a), SNI shall pay
to EWS, upon completion of the related EWS Services, an amount equal to the estimated costs and
expenses to be reasonably incurred in connection therewith. If the actual costs and expenses
incurred by such EWS Service Provider are greater than the estimated costs, the necessity of
increased costs shall again be subject to the mutual written agreement of the Parties, and if the
Parties cannot agree, (i) SNI shall pay to EWS an amount equal to the estimated costs and expenses
and (ii) EWS shall not receive payment or reimbursement for any such increased costs in connection
with the provision of such EWS Service to the extent not previously agreed upon by the Parties. If
the actual costs and expenses incurred by such EWS Service Provider are less than the estimated
costs and expenses, SNI shall pay to EWS an amount equal to the actual costs and expenses.

          (b) EWS shall reimburse SNI for the costs designated in each Schedule or Transition Plan as
reimbursable by EWS. If it is necessary for any SNI Service Provider to incur any additional costs
in connection with the provision of the SNI Services, other than any Third Party Vendor Costs
(which Third Party Vendor Costs are governed by Section 3.03), SNI shall inform EWS of such need
before any such additional cost is incurred. Upon mutual written agreement of EWS and SNI, as to
the necessity of any such increase, subject to the remainder of this Section 3.04(a), EWS shall pay
to SNI, upon completion of the related SNI Services, an amount equal to the estimated costs and
expenses to be reasonably incurred in connection therewith. If the actual costs and expenses
incurred by such SNI Service Provider are greater than the estimated costs, the necessity of
increased costs shall again be subject to the mutual written agreement of the Parties, and if the
Parties cannot agree, (i) EWS shall pay to SNI an amount equal to the estimated costs and expenses
and (ii) SNI shall not receive payment or reimbursement for any such increased costs in connection
with the provision of such SNI Service to the extent not previously agreed upon by the Parties. If
the actual costs and expenses incurred by such SNI Service Provider are less than the estimated
costs and expenses, EWS shall pay to SNI an amount equal to the actual costs and expenses.

     SECTION 3.05. Late Payments. Late payments shall bear interest at a rate per annum
equal to the Prime Rate plus 2%.

     SECTION 3.06. Tax Matters.

          (a) Each Party in its capacity as Service Recipient shall pay or cause to be paid all sales,
service, valued added, use, excise, occupation and other similar taxes and duties (together in each
case with all interest, penalties, fines and additions thereto) that are assessed against either
Party on the provision of Services as a whole, or any particular Service (including with respect to
amounts paid by the Service Provider to third parties), including Additional EWS Scheduled Services
or Additional SNI Scheduled Services, as applicable, received by any applicable Service Recipient
or any members of its Group from any Service Provider or any members of its Group pursuant to the
terms of this Agreement (collectively, “Service Taxes”). If required under applicable Law
(or in the case of Service Taxes relating to amounts paid by the Service Provider to third
parties), each Service Provider shall invoice the Service Recipient for the full amount of all
Service Taxes, and such Service Recipient shall pay, in addition to the other amounts required to
be paid pursuant to the terms of this Agreement, such Service Taxes to such Service Provider.

 - 13 - 

 

          (b) Notwithstanding anything to the contrary contained herein, each Service Provider shall not
be liable for any claim in respect of Services relating to Taxes or Tax Returns of the Service
Recipient or any other member of its Group, except to the extent that such claim arises from the
willful misconduct or gross negligence of such Service Provider.

ARTICLE IV

TERM; TERMINATION

     SECTION 4.01. Term. This Agreement shall commence on the Distribution Date and unless
terminated earlier in accordance with this Article IV, will terminate on the earlier to occur of
(a) the second anniversary of the Distribution Date and (b) the date on which the terms of all the
Schedules have expired or been terminated.

     SECTION 4.02. Force Majeure Event Early Termination of Services. In the event that
pursuant to Section 2.08, a Service Provider reduces or suspends the provision of any Service due
to a Force Majeure Event and such reduction or suspension continues for 15 days, the other Party
may immediately terminate the applicable Service, upon written notice and without any reimbursement
obligation.

     SECTION 4.03. Early Termination of this Agreement.

          (a) This Agreement may be terminated by (x) the mutual written consent of each Party, (y) as
may be set forth in the applicable Schedule or (z) by a Party (a “Non Defaulting Party”)
upon written notice to the other Party if:

          (i) the other Party fails in any material respect to perform its obligations under or
breaches in any material respect this Agreement (the “Defaulting Party”) and such
failure to perform or breach of an obligation is not cured within 30 days of the date on
which written notice is received by the Defaulting Party setting forth in reasonable detail
the manner in which the Defaulting Party failed to perform its obligations hereunder and
stating that the Non-Defaulting Party intends to terminate this Agreement with respect to
the Defaulting Party if such failure or breach is not cured within 30 days of such notice;
or

          (ii) the other Party makes a general assignment for the benefit of creditors, becomes
insolvent, or has a receiver appointed or reorganization or arrangement proceedings approved
by a court.

          (b) Any Service or Services provided hereunder may be terminated by a Service Recipient upon
30 days’ prior written notice (or such period of time set forth in the applicable Schedule, if
different) to the relevant Service Provider(s) of such Service or Services for any or no reason;
provided, that such termination does not materially adversely affect the Service Provider or the
members of its Group.

          (c) Any termination notice delivered by any Party shall specify the effective date of
termination and, where applicable, in detail the Service or Services to be terminated.

     SECTION 4.04. Sums Due.

          (a) In the event of a termination (including any termination pursuant to Section 4.02) or
expiration of this Agreement (or Services under one or more Schedules), EWS shall be entitled to
the payment or reimbursement of, and SNI shall, or shall cause the other applicable member(s) of
its Group to, pay and reimburse EWS, on the date of such termination or expiration (i) any amounts
due to any

 - 14 - 

 

EWS Service Provider under this Agreement with respect to the applicable terminated or expired
EWS Service(s) and (ii) any amounts accrued in connection with the provision of the applicable
terminated or expired EWS Service(s) through the date of such termination or expiration but not yet
invoiced by any EWS Service Provider under this Agreement, as if such amounts were invoiced on the
date of such termination or expiration.

          (b) In the event of a termination (including any termination pursuant to Section 4.02) or
expiration of this Agreement (or Services under one or more Schedules), SNI shall be entitled to
the payment or reimbursement of, and EWS shall, or shall cause the other applicable member(s) of
its Group to, pay and reimburse SNI, on the date of such termination or expiration (i) any amounts
due to any SNI Service Provider under this Agreement with respect to the applicable terminated or
expired SNI Service(s) and (ii) any amounts accrued in connection with the provision of the
applicable terminated or expired SNI Service(s) through the date of such termination or expiration
but not yet invoiced by any SNI Service Provider under this Agreement, as if such amounts were
invoiced on the date of such termination or expiration.

     SECTION 4.05. Effect of Termination. Articles I, III, VI, VIII, IX, X and XI and
Sections 4.04 and 4.05 shall survive any termination of this Agreement.

ARTICLE V

THIRD PARTY RIGHTS

     SECTION 5.01. Third Parties and EWS Services.

          (a) EWS and SNI shall cooperate to attempt to obtain all Consents (including those set forth
on Exhibits 5.01 and 5.02) sufficient to enable the EWS Service Providers to
perform the EWS Services in accordance with this Agreement for any third party Software or other
Intellectual Property related to the provision of the EWS Services; provided, that, EWS shall not
be required to incur any costs in connection therewith. SNI shall cooperate with EWS in obtaining
all such required Consents related to the provision of the EWS Services and SNI shall bear any
costs incurred in connection therewith, provided, further, that SNI shall only be required to
reimburse EWS for those expenses incurred by EWS that SNI has previously approved in writing.
Attached hereto as Exhibit 5.01 is a list of required Consents for any third party Software
or other Intellectual Property known to be related to, and necessary for, the provision of the EWS
Services and an estimate of charges to be imposed by third party software providers. In the event
that any such Consent is not obtained, then, unless and until such Consent is obtained, during the
term of the applicable Schedule, the Parties shall cooperate with each other in attempting to
achieve a reasonable alternative arrangement with respect to such third party Software or
Intellectual Property for SNI to continue to process its work and for the EWS Service Providers to
perform the EWS Services. Notwithstanding anything contained in this Agreement, EWS’ obligations
hereunder to provide the EWS Services that require third party Intellectual Property are subject to
such third party granting the applicable members of the EWS Group a valid and enforceable license
(or waiving the requirement to obtain a license) to use its Intellectual Property for the purposes
described herein.

          (b) Nothing contained in this Agreement shall preclude SNI from enforcing any rights or
benefits available to it or EWS, or availing itself of any rights or defenses available to it or
EWS under any third party agreement pursuant to which EWS Services are being provided to SNI.

 - 15 - 

 

     SECTION 5.02. Third Parties and SNI Services.

          (a) EWS and SNI shall cooperate to attempt to obtain all Consents (including those set forth
on Exhibits 5.01 and 5.02) sufficient to enable the SNI Service Providers to
perform the SNI Services in accordance with this Agreement for any third party Software or other
Intellectual Property related to the provision of the SNI Services; provided, that, SNI shall not
be required to incur any costs in connection therewith. EWS shall cooperate with SNI in obtaining
all such required Consents related to the provision of the SNI Services and EWS shall bear any
costs in connection therewith; provided, further, that EWS shall only be required to reimburse SNI
for those expenses incurred by SNI that EWS has previously approved in writing. Attached hereto as
Exhibit 5.02 is a list of required Consents for any third party Software or other
Intellectual Property known to be related to, and necessary for, the provision of the SNI Services
and an estimate of charges to be imposed by third party Software providers. In the event that any
such Consent is not obtained, then, unless and until such Consent is obtained, during the term of
the applicable Schedule, the Parties shall cooperate with each other in attempting to achieve a
reasonable alternative arrangement with respect to such third party Software or Intellectual
Property for EWS to continue to process its work and for the SNI Service Providers to perform the
SNI Services. Notwithstanding anything contained in this Agreement, SNI’s obligations hereunder to
provide the SNI Services that require third party Intellectual Property are subject to such third
party granting the applicable members of the SNI Group a valid and enforceable license (or waiving
the requirement to obtain a license) to use its Intellectual Property for the purposes described
herein.

          (b) Nothing contained in this Agreement shall preclude EWS from enforcing any rights or
benefits available to it or SNI, or availing itself of any rights or defenses available to it or
SNI under any third party agreement pursuant to which SNI Services are being provided to EWS.

ARTICLE VI

INTERNAL CONTROLS

     SECTION 6.01. Access Rights of SNI. If requested by SNI, EWS shall and shall cause
each EWS Service Provider to permit the SNI Group members reasonable access (in addition to the
access required by Section 8.04) to its respective books, records, accountants (and EWS shall
exercise commercially reasonable efforts to provide such access to its accountants’ work papers),
personnel and facilities for the purpose of SNI’s testing and verification of the effectiveness of
each EWS Service Provider’s controls with respect to EWS Services as is reasonably necessary to
enable the management of SNI to comply with its obligations under SOX §404 and to enable SNI’s
independent public accounting firm to attest to and report on the assessment of the management of
SNI in accordance with SOX §404 and Accounting Standard No. 5, as amended, or as required by SNI’s
external auditors; provided, however, that, except as set forth in Section 8.04, EWS shall not be
required to furnish SNI access to any information other than information that relates specifically
to EWS Services.

     SECTION 6.02. Access Rights of EWS. If requested by EWS, SNI shall and shall cause
each SNI Service Provider to permit the EWS Group members reasonable access (in addition to the
access required by Section 8.04) to its respective books, records, accountants (and SNI shall
exercise commercially reasonable efforts to provide such access to its accountants’ work papers),
personnel and facilities for the purpose of EWS’ testing and verification of the effectiveness of
each SNI Service Provider’s controls with respect to SNI Services as is reasonably necessary to
enable the management of EWS to comply with its obligations under SOX §404 and to enable EWS’
independent public accounting firm to attest to and report on the assessment of the management of
EWS in accordance with SOX §404 and Accounting Standard No. 5, as amended, or as required by EWS’
external auditors; provided, however, that, except as set forth in Section 8.04, SNI shall not be
required to furnish EWS access to any information other than Information that relates specifically
to SNI Services.

 - 16 - 

 

     SECTION 6.03. Procedures. Without limiting the generality of, and in order to give
effect to, the foregoing provisions of Article VI:

          (a) the Parties shall cooperate from time to time to identify the significant processes
provided by each Party to the other Party in connection with the provision of the Services
hereunder;

          (b) each Party shall develop and maintain comprehensive procedures to adequately test,
evaluate and document the design and effectiveness of its controls over such significant processes;

          (c) each Party as Service Provider shall provide to the other Party, its auditors and any
third party that such other Party has retained to assist it with its SOX §404 compliance (subject
to such third party’s having signed an appropriate confidentiality agreement with the Party that is
providing the relevant Information), as soon as practical but no later than the 15th day of the
month following each fiscal quarter end during which the Service Provider provided a Service
comprising a significant process to the other Party, adequate documentation with respect to the
testing of its controls over the significant processes;

          (d) in the event any deficiencies are found as a result of the testing, the Service Provider
will notify the Service Recipient of such deficiencies as soon as practical but no later than the
15th day of the month following each fiscal quarter end, and the Service Provider and the Service
Recipient shall cooperate in good faith to develop and implement commercially reasonable action
plans and timetables to remedy such deficiencies and/or implement adequate compensating controls;
provided, however, that if a Party as Service Provider provides a substantially similar service for
itself or its Subsidiaries, then such Party as Service Provider shall not be required to take any
actions that are different from the actions that such Party is taking with respect to such services
that it provides for itself or its Subsidiaries, unless the control deficiency is or could
reasonably be expected to be a material weakness in the Service Recipients’ internal control over
financial reporting (and the Service Recipient shall share its analysis in this regard with the
Service Provider), in which case the Service Provider shall cooperate in good faith with the
Service Recipient to develop and implement in a timely fashion commercially reasonable action plans
and timetables to remedy the deficiency and/or implement adequate compensating controls such that
the deficiency will not rise to the level of a material weakness; provided further, that, if, as a
result of such remedy and/or implementation, the Service Provider is required to take actions that
are different than the actions that the Service Provider is taking with respect to the
substantially similar services that it provides for itself or its Subsidiaries, the Service
Recipient shall be obligated to fund the incremental costs incurred by the Service Provider,
including all out of pocket incremental costs, plus a reasonable allocation of costs of employees
who are diverted from providing services that such employees would otherwise be providing to the
Service Provider during the period of such remedy and/or implementation;

          (e) the Service Provider shall, if requested by the Service Recipient, make its personnel and
testing and documentation available to the auditors of the Service Recipient to enable such
auditors to attest to and report on the assessment of internal control over financial reporting of
the management of the Service Recipient, and the Service Provider shall cooperate and assist the
Service Recipient’s auditors in performing any process walkthroughs and process testing that such
auditor may request of the significant processes; and

          (f) each Party as Service Provider shall provide written notice to the other Party, as soon as
practical but no later than the 15th day of the month following each fiscal quarter end, of any
significant change in control design by such Party or any of its other Group members during any
fiscal quarter during the term of this Agreement.

 - 17 - 

 

ARTICLE VII

TRANSITION TEAMS/SINGLE POINT OF CONTACT

     SECTION 7.01. Appointment of Transition Teams. Each Party shall designate one or more
individuals who have practical knowledge and experience in each area of such Party’s operations
that relate to the Services and are authorized to make decisions with respect to the Services (each
a “Transition Team”). Without limiting the generality of the foregoing, and subject to the
foregoing provision, each Transition Team will include individuals from such Party and its
Subsidiaries whose experience includes, as applicable, the following areas: (i) information
technology systems, (ii) human resources, (iii) accounting and finance, (iv) risk management and
insurance, (v) tax, (vi) corporate development, (vii) financial services center, (viii) treasury,
(ix) payroll, (x) real estate and facilities, (xi) product supplies and (xii) SEC and financial
reporting. Each Party shall designate a member of its Transition Team as the leader of its
respective Transition Team (each a “Team Leader”). The initial members of the Transition
Team and the Team Leader for each of EWS and SNI are set forth on Exhibit 7.01, including
each such person’s title, areas of expertise and relevant telephone, fax and email information.
Each Team Leader shall coordinate the assignment of persons to its Transition Team and shall assess
and monitor the performance of the Transition Services. The Transition Teams will be responsible
for overseeing the completion of the Services in accordance with the terms and conditions hereof.

     SECTION 7.02. Transition Team Actions. The Transition Teams shall convene meetings on
a mutually agreed upon periodic basis as required. It is the expectation of the Parties that the
Transition Team members shall communicate directly with one another and work directly with one
another to ensure that all Transition Services are completed on a timely and complete basis;
provided that, (i) except for EWS’ Team Leader, the members of EWS’ Transition Team shall not have
the legal authority to make or to modify any obligation or to waive any right on behalf of any EWS
Service Provider and (ii) except for a SNI’s Team Leader, the members of SNI’s Transition Team
shall not have the legal authority to make or to modify any obligation or to waive any right on
behalf of any SNI Service Provider. The Team Leaders shall meet on such mutually agreed upon
periodic basis as required, to discuss the status of the Transition Services, as well as to answer
questions, gather information and resolve disputes that may occur from time to time. All meetings
pursuant to this Section 7.02 may be face-to-face, video or telephonic meetings as may be agreed
upon by the individuals participating is such meeting. Each Party shall bear all costs and
expenses of such Party’s Transition Team related to attending or participating in Transition Team
meetings.

ARTICLE VIII

CONFIDENTIALITY; NON-SOLICITATION; RECORDS; ACCESS

     SECTION 8.01. Confidentiality Obligations.

          (a) General. Each Party acknowledges that such Party has in its possession, and in
connection with this Agreement such Party will receive, Information of the other Party that is not
available to the general public and may constitute, contain or include material non-public
Information of the other Party. Subject to Section 8.01(c) and Section 8.01(d), as of the
Distribution Date, each Party, on behalf of itself and each other member of its Group, agrees to
hold, and to cause its respective directors, officers, employees, agents, third-party contractors,
vendors, accountants, counsel and other advisors and representatives to hold, in strict confidence,
with at least the same degree of care that such Party applies to its own confidential and
proprietary Information pursuant to its applicable policies and procedures in effect as of the
Distribution Date, all Information concerning the other Party (or its Business) and the other
members of such other Party’s Group (or their respective Business) that is either in its possession
(including Information in its possession prior to the Distribution Date) or furnished by the other
Party or

 - 18 - 

 

the other members of such other Party’s Group or their respective directors, officers,
employees, agents, third-party contractors, vendors, accountants, counsel and other advisors and
representatives at any time pursuant to this Agreement, and will not use such Information other
than for such purposes as may be expressly permitted hereunder, except, in each case, to the extent
that such Information: (i) is or becomes available to the general public, other than as a result of
a disclosure by such Party or the other members of such Party’s Group or any of their respective
directors, officers, employees, agents, third-party contractors, vendors, accountants, counsel and
other advisors and representatives in breach of this Agreement; (ii) was or becomes available to
such Party or the other members of such Party’s Group on a non-confidential basis from a source
other than the other Party or the other members of such other Party’s Group, provided, that, the
source of such Information was not bound by a confidentiality obligation with respect to such
Information, or otherwise prohibited from transmitting the Information to such Party or the other
members of such Party’s Group by a contractual, legal or fiduciary obligation; or (iii) is
independently generated by such Party or the other members of such Party’s Group without use of or
reference to any proprietary or confidential Information of the other Party.

          (b) No Release, Compliance with Law, Return or Destruction. Following the
Distribution Date, each Party agrees not to release or disclose, or permit to be released or
disclosed, any Information of the other Party to any other Person, except its directors, officers,
employees, agents, third-party contractors, vendors, accountants, counsel, lenders, investors and
other advisors and representatives who need to know such Information pursuant to this Agreement,
and except in compliance with Section 8.01(c). Each Party shall advise its directors, officers,
employees, agents, third-party contractors, vendors, accountants, counsel, lenders, investors and
other advisors and representatives who have been provided with such Information of such Party’s
confidentiality obligations hereunder and that such Information may constitute, contain or include
material non-public Information of the other Party. Following the Distribution Date, each Party
shall, and shall cause, its directors, officers, employees, agents, third-party contractors,
vendors, accountants, counsel, lenders, investors and other advisors and representatives who have
been provided with such Information to use such Information only in accordance with (i) the terms
of this Agreement and (ii) applicable Law (including federal and state securities Laws). Following
the Distribution Date, each Party shall promptly, after receiving a written request of the other
Party, return to the other Party all such Information in a tangible form (including all copies
thereof and all notes, extracts or summaries based thereon) or certify to the other Party that it
has destroyed such Information (and such copies thereof and such notes, extracts or summaries based
thereon), as directed by the other Party.

          (c) Protective Arrangements. Notwithstanding anything herein to the contrary, in the
event that, following the Distribution Date, either Party or any of its directors, officers,
employees, agents, third-party contractors, vendors, accountants, counsel, lenders, investors and
other advisors and representatives either determines on the advice of its counsel that it is
required to disclose any Information of the other Party pursuant to applicable Law or the rules or
regulations of a Governmental Authority or receives any demand under lawful process or from any
Governmental Authority to disclose or provide Information of the other Party that is subject to the
confidentiality provisions hereof, such Party shall, if possible, notify the other Party prior to
disclosing or providing such Information and shall cooperate at the expense of the requesting Party
in seeking any reasonable protective arrangements requested by such other Party. In the event that
a protective arrangement is not obtained, the Person that received such request (i) may thereafter
disclose or provide such Information to the extent required by such Law (as so advised by counsel)
or by lawful process or such Governmental Authority, without liability therefor and (ii) shall
exercise its commercially reasonable efforts to have confidential treatment accorded any such
Information so furnished.

 - 19 - 

 

          (d) Certain Standards and Exceptions.

          (i) Nothing in this Agreement shall be construed to limit or prohibit either Party from
independently creating or developing (or having created or developed for it), or from
acquiring from third parties (or from thereafter using or disclosing as such Party sees
fit), any Information similar to or competitive with the Information contemplated by or
embodied in the other Party’s confidential, non-public and proprietary Information, provided
that in connection with such creation, development, or acquisition such Party does not
violate any of its obligations under this Agreement or any other agreement with the other
Party. Notwithstanding the foregoing, neither Party shall, nor shall it assist others to,
disassemble, decompile, reverse engineer, or otherwise attempt to recreate, the other
Party’s confidential, non-public and proprietary Information.

          (ii) Nothing in this Agreement shall limit either Party’s ability to market, develop
and provide products or services to others that are functionally comparable to those of the
other Party, whether or not based on the same general business practices, concepts,
techniques and routines contemplated by or embodied in the other Party’s confidential,
non-public and proprietary Information.

          (iii) “Residuals” means Information retained in the memory of an employee of one Party
pertaining to or resulting from the performance of services for the other Party, excluding,
however, Information deliberately memorized to classify it as Residuals. Notwithstanding
anything to the contrary in this Section 8.01, either Party shall be free to use for any
purpose Residuals of its employees resulting from their access to or work with Information
of the other Party if such Party otherwise complies with its obligations not to disclose
Information of the other Party to third parties in violation of this Section 8.01; provided,
that this provision does not grant either Party a license to use the other Party’s
Intellectual Property.

     SECTION 8.02. Non-Solicitation.

          (a) For a period of two years from the Distribution Date, neither SNI nor any other member of
the SNI Group shall, without the prior written approval of EWS, directly or indirectly, solicit any
employees of any EWS Service Provider who are engaged in or were engaged in providing Services
during the term of this Agreement, to terminate their relationship with any of the EWS Service
Providers. The foregoing shall not apply to any solicitation of any employee or employment of any
employee of any EWS Service Provider who (i) initially contacted any member of the SNI Group or
their representatives on his or her own initiative without any solicitation by any member of the
SNI Group or their representatives, (ii) responded to a solicitation directed at the public in
general through advertisement or similar means not targeted specifically at such employee or the
business of the EWS Service Provider or (iii) was referred to any member of the SNI Group or their
representatives, as applicable, by search firms, employment agencies or other similar entities
provided that such entities have not been specifically instructed by any member of the SNI Group or
their representatives to solicit such employee.

          (b) For a period of two years from the Distribution Date, neither EWS nor any other member of
the EWS Group shall, without the prior written approval of SNI, directly or indirectly, solicit any
employees of any SNI Service Provider who are engaged in or were engaged in providing Services
during the term of this Agreement, to terminate their relationship with any of the SNI Service
Providers. The foregoing shall not apply to any solicitation of any employee or employment of any
employee of any SNI Service Provider who (i) initially contacted any member of the EWS Group or
their representatives on his or her own initiative without any solicitation by any member of the
EWS Group or their representatives, (ii) responded to a solicitation directed at the public in
general through advertisement or

 - 20 - 

 

similar means not targeted specifically at such employee or the business of the SNI Service
Provider or (iii) was referred to any member of the EWS Group or their representatives, as
applicable, by search firms, employment agencies or other similar entities provided that such
entities have not been specifically instructed by any member of the EWS Group or their
representatives to solicit such employee.

     SECTION 8.03. Records. Each Party shall maintain records with respect to the Services
provided by such Party that are in a form and contain a level of detail similar to records, if any,
that are maintained in providing similar services for itself or for such Party’s Subsidiaries for a
period of the longer of one year after the termination of this Agreement or the applicable period
for maintaining such records set forth in the EWS Record Retention Policy in effect as of the
Distribution Date, or such longer period as required by applicable Law. During the period in which
such Party is required to maintain such records, upon prior written request to such Party, the
other Party and its Subsidiaries shall have reasonable access to such records during normal
business hours of such Party or its applicable Subsidiary at the place where such records are
normally maintained.

     SECTION 8.04. Access.

          (a) SNI shall, and shall cause the other applicable members of the SNI Group to, make
available on a timely basis to each EWS Service Provider such Information reasonably requested by
such EWS Service Provider to enable such EWS Service Provider to provide the EWS Services. SNI
shall, and shall cause the other applicable members of the SNI Group to, provide to the EWS Service
Providers reasonable access to the premises of the SNI Group members and the systems, software and
networks located therein, to the extent necessary for the purpose of providing the EWS Services.
EWS shall ensure that it and the other EWS Service Providers comply with applicable Law and SNI’s
security and other policies and procedures, as may be provided to EWS by SNI in writing from time
to time. At EWS’ request, SNI agrees to, or to cause the applicable SNI Service Provider to: (i)
maintain logs of activity of its employees and contractors when providing Services that are billed
to the Service Recipient on a hourly basis with respect to any of such SNI Service Provider’s
systems or databases and (ii) if there is a dispute between the Parties regarding any such
Services, allow EWS to audit such SNI Service Provider’s usage by employees and contractors with
respect to such systems and databases.

          (b) EWS shall, and shall cause the other applicable members of the EWS Group to, make
available on a timely basis to each SNI Service Provider such Information reasonably requested by
such SNI Service Provider to enable such SNI Service Provider to provide the SNI Services. EWS
shall, and shall cause the other applicable members of the EWS Group to, provide to the SNI Service
Providers reasonable access to the premises of the EWS Group members and the systems, software and
networks located therein, to the extent necessary for the purpose of providing the SNI Services.
SNI shall ensure that it and the other SNI Service Providers comply with applicable Law and EWS’
security and other policies and procedures, as may be provided to SNI by EWS in writing from time
to time. At SNI’s request, EWS agrees to, or to cause the applicable EWS Service Provider to: (i)
maintain logs of activity of its employees and contractors when providing Services that are billed
to the Service Recipient on a hourly basis with respect to any of such EWS Service Provider’s
systems or databases and (ii) if there is a dispute between the Parties regarding any such
Services, allow SNI to audit such EWS Service Provider’s usage by employees and contractors with
respect to such systems and databases.

 - 21 - 

 

ARTICLE IX

NO WARRANTY; LIMITATION OF LIABILITY;

INDEMNIFICATION

     SECTION 9.01. Warranties and Disclaimer of Warranty by EWS.

          (a) EWS represents and warrants to SNI as of the date hereof and at all times during which the
EWS Services are provided to SNI, that:

          (i) Subject to the receipt of the Consents set forth on Exhibit 5.01 hereof,
neither the provision of the EWS Services by any EWS Service Provider, nor the receipt or
use thereof by SNI in accordance with the terms and conditions hereof, shall breach,
violate, infringe upon or constitute misappropriation of any Intellectual Property right of
any Person. Subject to the terms and conditions hereof, of the Separation Agreement and of
the other Ancillary Agreements, the provision of the EWS Services will not confer on SNI any
Intellectual Property rights, except as explicitly provided herein or therein.

          (ii) The EWS Services will be performed in a timely manner consistent with this
Agreement, as each individual Schedule may require, by qualified individuals with
appropriate subject matter expertise, in a professional and workmanlike manner, conforming
to generally accepted industry standards and practices applicable to each individual
Schedule and in strict accordance with all applicable Laws.

          (b) Except as expressly set forth in this Agreement, the EWS Services to be purchased under
this Agreement are provided as is, where is, with all faults, and without warranty or condition of
any kind, express or implied, including any warranty of merchantability or fitness for any
particular purpose or any other warranty whatsoever.

     SECTION 9.02. Warranties and Disclaimer of Warranty by SNI.

          (a) SNI represents and warrants to EWS as of the date hereof and at all times during which the
SNI Services are provided to EWS, that:

          (i) Subject to the receipt of the Consents set forth on Exhibit 5.02 hereof,
neither the provision of the SNI Services by any SNI Service Provider, nor the receipt or
use thereof by EWS in accordance with the terms and conditions hereof, shall breach,
violate, infringe upon or constitute misappropriation of any Intellectual Property right of
any Person. Subject to the terms and conditions hereof, of the Separation Agreement and of
the other Ancillary Agreements, the provision of the SNI Services will not confer on EWS any
Intellectual Property rights, except as explicitly provided herein or therein.

          (ii) The SNI Services will be performed in a timely manner consistent with this
Agreement, as each individual Schedule may require, by qualified individuals with
appropriate subject matter expertise, in a professional and workmanlike manner, conforming
to generally accepted industry standards and practices applicable to each individual
Schedule and in strict accordance with all applicable Laws.

          (b) Except as expressly set forth in this Agreement, the SNI Services to be purchased under
this Agreement are provided as is, where is, with all faults, and without warranty or condition of
any kind, express or implied, including any warranty of merchantability or fitness for any
particular purpose or any other warranty whatsoever.

 - 22 - 

 

     SECTION 9.03. Obligation to Re-perform EWS Services. In the event of any breach of
this Agreement by any EWS Service Provider with respect to any failure by an EWS Service Provider
to provide any EWS Service in accordance with the terms of this Agreement, EWS shall, or shall
cause the applicable EWS Service Provider to, correct in all material respects such error or defect
or re-perform in all material respects such EWS Service at the request of SNI and at the expense of
EWS. To be effective, any such request by SNI must (i) specify in reasonable detail the particular
error or defect and (ii) be made no more than 90 days from the date such error or defect was
discovered by SNI or should have been discovered by SNI after reasonable inquiry.

     SECTION 9.04. Obligation to Re-perform SNI Services. In the event of any breach of
this Agreement by any SNI Service Provider with respect to any failure by an SNI Service Provider
to provide any SNI Service in accordance with the terms of this Agreement, SNI shall, or shall
cause the applicable SNI Service Provider to, correct in all material respects such error or defect
or re-perform in all material respects such SNI Service at the request of EWS and at the expense of
SNI. To be effective, any such request by EWS must (i) specify in reasonable detail the particular
error or defect and (ii) be made no more than 90 days from the date such error or defect was
discovered by EWS or should have been discovered by EWS after reasonable inquiry.

     SECTION 9.05. Limitation of Liability. Notwithstanding anything contained herein to
the contrary:

          (a) In no event shall either Party be liable to the other Party or its Group (or their
respective directors, officers, agents, Service Providers or employees) for incidental,
consequential or punitive damages in connection with this Agreement, even if the Party has been
advised of the possibility of such damages, and each Party hereby waives on behalf of itself, its
Affiliates, and Service Providers and their respective directors, officers, agents, Service
Providers or employees any claim for such damages including any claim for lost profits, whether
arising in contract, tort or otherwise;

          (b) EWS will exercise commercially reasonable due diligence in its choice of such Third Party
Service Provider and EWS will employ Best Efforts to induce or cause such Third Party Service
Provider to provide the EWS Services in accordance with the manner and levels agreed to hereunder;
and

          (c) SNI will exercise commercially reasonable due diligence in its choice of such Third Party
Service Provider and SNI will employ Best Efforts to induce or cause such Third Party Service
Provider to provide the SNI Services in accordance with the manner and levels agreed to hereunder.

     SECTION 9.06. EWS Indemnity. EWS shall indemnify and hold harmless SNI and the other
members of the SNI Group (and their respective directors, officers, agents, Third Party Service
Providers and employees) from and against any and all claims, demands, complaints, damages,
payments, losses, liabilities, costs or expenses (each of the foregoing, a “Loss”) arising
out of, relating to or in connection with (i) any Action pursuant to which it has been determined
that the provision by any EWS Service Provider and/or the receipt by any member of the SNI Group of
any EWS Service infringes upon or misappropriates the Intellectual Property of any third party, to
the extent that any such Loss is determined to have resulted from such EWS Service Provider’s
intentional breach, fraud, gross negligence or willful misconduct, (ii) any breach by EWS of its
obligations under this Agreement or (iii) any action or omission by an EWS Service Provider in
providing the EWS Services hereunder, except to the extent any such Loss arises from the acts or
omissions of a member of the SNI Group.

 - 23 - 

 

     SECTION 9.07. SNI Indemnity. SNI shall indemnify and hold harmless EWS and the other
members of the EWS Group (and their respective directors, officers, agents, Third Party Service
Providers and employees) from and against any and all Losses arising out of, relating to or in
connection with (i) any Action pursuant to which it has been determined that the provision by any
SNI Service Provider and/or the receipt by any member of the EWS Group of any SNI Service infringes
upon or misappropriates the Intellectual Property of any third party, to the extent that any such
Loss is determined to have resulted from such SNI Service Provider’s intentional breach, fraud,
gross negligence or willful misconduct, (ii) any breach by SNI of its obligations under this
Agreement or (iii) any action or omission by an SNI Service Provider in providing the SNI Services
hereunder, except to the extent any such Loss arises from the acts or omissions of a member of the
EWS Group.

ARTICLE X

DISPUTE RESOLUTION

     SECTION 10.01. 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 10.02. Initiation. A Party that wishes to initiate the dispute resolution
process shall send written notice to the other Party, in accordance with Section 11.01, 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 8.01 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 10.03. 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 8.01, 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

 - 24 - 

 

Parties. Each Party to the dispute shall bear its own expenses arising out of the
arbitration, except that the Parties shall share the expenses of the facilities to conduct the
arbitration and the fees of the arbitrator equally.

     SECTION 10.04. 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.

ARTICLE XI

MISCELLANEOUS

     SECTION 11.01. Notices. All notices, requests, claims, demands and other
communications hereunder (except for routine communications contemplated by certain Schedules) 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

Cincinnati, Ohio 45202

Facsimile: (513) 977-3884

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

with a copy to:

The E.W. Scripps Company

312 Walnut Street

Cincinnati, Ohio 45202

Facsimile: (513) 977-3042

Attention: William Appleton, Senior Vice President and General Counsel

If to SNI, to:

Scripps Networks Interactive, Inc.

312 Walnut Street

Cincinnati, Ohio 45202

Facsimile: (513) 977-3922

Attention: Patrick Browning, Executive Director of Vendor and Program Management

with a copy to:

Scripps Networks Interactive, Inc.

312 Walnut Street

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

 - 25 - 

 

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 11.02. Entire Agreement. This Agreement, together with all exhibits and
Schedules hereto, the Separation and Distribution Agreement and the other Ancillary Agreements,
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 11.03. 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 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 11.04. 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 11.05. Independent Contractors. In performing the Services hereunder, each
Service Provider shall operate as and have the status of an independent contractor. No Service
Provider’s employees shall be considered employees or agents of the other Party, nor shall the
employees of any Party be eligible or entitled to any benefits, perquisites or privileges given or
extended to any of the other Party’s employees in connection with the provision of Services.
Nothing contained in this Agreement shall be deemed or construed to create a joint venture or
partnership between the Parties. No Party shall have any power to control the activities and/or
operations of the other Party. No Party shall have any power or authority to bind or commit any
other Party.

     SECTION 11.06. No Third Party Beneficiary. The terms and provisions of this Agreement
are intended solely for the benefit of each Party hereto and their respective Affiliates,
successors or permitted assigns, and it is not the intention of the Parties to confer third party
beneficiary rights upon any other Person except as provided in Sections 9.06 and 9.07 of this
Agreement.

     SECTION 11.07. 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) Either Party’s obligation to provide, or right to receive, any Service (or portions
thereof) may be assigned, sublicensed, delegated, allocated or contributed, in whole or in part, to
one or more Affiliates of such Party within its Group and, to the extent so assigned, sublicensed,
delegated, allocated or contributed, the relevant Affiliate shall be deemed the relevant Service
Provider or Service Recipient, as applicable, with respect to the relevant portion of such
Services; provided that no such assignment, allocation or contribution shall relieve such Party of
any of its obligations hereunder. No prior written consent shall be required with respect to any
such permitted assignment, sublicense, delegation, allocation or contribution.

 - 26 - 

 

          (b) 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 Separation (as defined in the Separation
Agreement) and, to the extent that any such transfer or allocation results in a change of the Party
or member of its Group which reasonably should be a Service Provider or Service Recipient with
respect to any Service then the Parties shall make such amendments, revisions or modifications to
the Schedules as are reasonably necessary to reflect the appropriate Service Provider or Service
Recipient, as the case may be.

          (c) 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 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 Service Provider or Service Recipient shall
be obligated to materially change the nature, scope or volume of the Services it provides or
receives, respectively, under this Agreement as a result of any such assignment.

          (d) If either Party assigns, delegates, sublicenses, allocates or contributes all or any
portion of its rights and obligations under this Agreement to any other member of its Group, then
prior to such Party consummating any sale or transfer of a controlling interest in, or all or
substantially all of the properties and assets of, such other Group member to a non-Affiliate of
such Party, such Party shall cause all such rights or obligations to be reallocated among one or
more of the continuing members of its Group by appropriate assignment or assumption transactions
such that the Group member to be sold shall no longer be a Service Provider or Service Recipient
upon consummation of such sale transaction. The other Party shall have the right to prior review
of such re-allocations and the Parties shall cooperate in good faith to resolve any reasonable
objections that the other Party may have to such re-allocations and to take such further actions as
may be reasonably required to assure that the rights and obligations under this Agreement are
preserved, in the aggregate.

          (e) Nothing in this Section 11.07 shall affect the ability of either Party to terminate any of
the Services in accordance with the provisions of this Agreement.

     SECTION 11.08. 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 11.09. Submission to Jurisdiction; Waivers. Subject to the prior exhaustion
of the escalation procedures set forth in Article X and to the fullest extent permitted by
applicable Law, each Party hereto (i) 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, (ii) 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, (iii) 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, (iv) agrees that mailing of process or other papers in connection with any such
action or proceeding in the manner provided in Section 11.01 or any other manner as may be
permitted by Law shall be valid and sufficient service thereof and (v) agrees that a final judgment
in any such action or

 - 27 - 

 

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 11.10. 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.

     SECTION 11.11. 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 11.12. 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 11.13. Order of Precedence. In the event of an inconsistency or conflict
between this Agreement and a Schedule or an attachment or exhibit thereto, the Schedule (or the
attachment or exhibit thereto) shall prevail.

     SECTION 11.14. Ownership of and License to Data.

          (a) It is acknowledged and agreed that (i) EWS retains all right, title and interest in and to
all EWS Data and nothing herein shall create or vest in SNI any right, title or interest in or to
the EWS Data and (ii) SNI retains all right, title and interest in and to all SNI Data and nothing
herein shall create or vest in EWS any right, title or interest in or to the SNI Data.

          (b) EWS hereby grants to SNI a non-exclusive, royalty free, fully paid-up, non-transferable,
worldwide license to use EWS Data solely (i) to provide the SNI Services and (ii) to comply with
SNI’s obligations under applicable Law with respect to such EWS Data.

          (c) SNI hereby grants to EWS a non-exclusive, royalty free, fully paid-up, non-transferable,
worldwide license to use SNI Data solely (i) to provide the EWS Services and (ii) to comply with
EWS’ obligations under applicable Law with respect to such SNI Data.

[signature page follows]

 - 28 - 

 

     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:  	/s/ Richard A. Boehne
 	 
	 	 	Richard A. Boehne, President and Chief Executive Officer 	 

	 	 	 	 	 
	 	SCRIPPS NETWORKS INTERACTIVE, INC.

 	 
	 	By:  	/s/ Joseph G. NeCastro
 	 
	 	 	Joseph G. NeCastro, Executive Vice President and 

Chief Financial Officer 	 
	 	 	 	 
	 

 - 29 -EX-10.2

Exhibit
10.2

Execution Version

EMPLOYEE MATTERS AGREEMENT

by and between

THE E.W. SCRIPPS COMPANY

and

SCRIPPS NETWORKS INTERACTIVE, INC.

Dated as of July 1, 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
	 	 	11	 
	 
	 	 
	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	 
	 
	 	 
	SECTION 4.03. 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
	 	 	18	 
	 
	 	 
	SECTION 5.04. COBRA and HIPAA
	 	 	18	 
	 
	 	 
	SECTION 5.05. Liabilities
	 	 	18	 
	 
	 	 
	SECTION 5.06. Disposition of VEBA Assets
	 	 	20	 
	 
	 	 
	SECTION 5.07. Time-Off Benefits
	 	 	20	 
	 
	 	 
	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
	 	 	22	 
	 
	 	 
	SECTION 7.01. Long-Term Incentive Awards
	 	 	22	 
	 
	 	 
	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
	 	 	25	 
	 
	 	 
	SECTION 7.06. Cooperation
	 	 	25	 
	 
	 	 
	SECTION 7.07. SEC Registration
	 	 	25	 
	 
	 	 
	SECTION 7.08. Savings Clause
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VIII ADDITIONAL COMPENSATION MATTERS
	 	 	26	 
	 
	 	 
	SECTION 8.01. Incentive Awards
	 	 	26	 
	 
	 	 
	SECTION 8.02. Change in Control Plan
	 	 	26	 
	 
	 	 
	SECTION 8.03. Individual Arrangements
	 	 	27	 
	 
	 	 
	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
	 	 	28	 
	 
	 	 
	SECTION 9.01. Pre-Distribution Date Claims
	 	 	28	 
	 
	 	 
	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
	 	 	29	 
	 
	 	 
	SECTION 10.04. Additional Matters
	 	 	30	 
	 
	 	 
	SECTION 10.05. Contribution
	 	 	30	 
	 
	 	 
	SECTION 10.06. Survival of Indemnities
	 	 	30	 
	 
	 	 
	SECTION 10.07. Remedies Cumulative
	 	 	30	 
	 
	 	 	 	 
	ARTICLE XI GENERAL AND ADMINISTRATIVE
	 	 	31	 
	 
	 	 
	SECTION 11.01. Sharing Of Information
	 	 	31	 
	 
	 	 
	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
	 	 	32	 
	 
	 	 
	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
	 	 	33	 
	 
	 	 
	SECTION 12.03. Affiliates
	 	 	33	 
	 
	 	 
	SECTION 12.04. Notices
	 	 	33	 
	 
	 	 
	SECTION 12.05. Entire Agreement
	 	 	34	 
	 
	 	 
	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 July 1, 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 June 12, 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, beginning on 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, beginning on 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

3

 

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.

     “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 beginning on 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

4

 

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.”

     “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

5

 

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, 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.

6

 

     “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 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, beginning on 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.

7

 

     “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.

     “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, beginning on 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 beginning on 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.

8

 

     “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.

     “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

9

 

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 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.

10

 

     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 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

11

 

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 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).

12

 

          (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 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

13

 

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 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

14

 

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 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.

15

 

          (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 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

16

 

“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 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.

17

 

     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.

     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

18

 

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.

          (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.

19

 

     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 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

20

 

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 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

21

 

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 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

22

 

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:

               (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

23

 

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.

          (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

24

 

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 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

25

 

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.

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.

26

 

          (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 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

27

 

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 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.

28

 

     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 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).

29

 

     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 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.

30

 

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 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

31

 

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.

     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

32

 

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.

     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

33

 

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 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

34

 

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 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

35

 

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, 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:  	/s/ Richard A. Boehne
 	 
	 	 	Richard A. Boehne, President and
Chief Executive Officer	 

	 	 	 	 	 
	 	SCRIPPS NETWORKS INTERACTIVE, INC.

 	 
	 	By:  	/s/ Joseph G. NeCastro
 	 
	 	 	Joseph G. NeCastro, Executive Vice President and	 
	 	 	Chief Financial Officer 	 
	 

37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]