Document:

exv10wy

Exhibit 10Y

VF CORPORATION

2004 Mid-Term Incentive Plan, as amended February 8, 2010

     1. Purposes. This 2004 Mid-Term Incentive Plan (the “Plan”) of VF Corporation (the
“Company”), as amended February 8, 2010, is implemented under the Company’s 1996 Stock Compensation
Plan (the “1996 Plan”). The Plan is intended to provide an additional means to attract and retain
talented executives, to link a significant element of executives’ compensation opportunity to the
Company’s performance over more than one year, thereby providing an incentive for successful
long-term strategic management of the Company, and otherwise to further the purposes of the 1996
Plan.

     2. Status as Subplan Under the 1996 Plan; Administration. This Plan is a subplan implemented
under the 1996 Plan, and will be administered by the Compensation Committee of the Board of
Directors in accordance with the terms of the 1996 Plan. All of the terms and conditions of the
1996 Plan are hereby incorporated by reference in this Plan, and if any provision of this Plan or
an agreement evidencing an award hereunder conflicts with a provision of the 1996 Plan, the
provision of the 1996 Plan shall govern. Capitalized terms used in this Plan but not defined
herein shall have the same meanings as defined in the 1996 Plan.

     3. Certain Definitions. In addition to terms defined above and in the 1996 Plan, the
following are defined terms under this Plan:

     (a) “Account” means the account established for a Participant under Section 7(a).

     (b) “Administrator” means the officers and employees of the Company responsible for the
day-to-day administration of the Plan and to which other authority may be delegated under Section
10(b). Unless otherwise specified by the Committee, the Administrator shall be the VF Corporation
Pension Plan Committee.

     (c) “Cause” means (i), if the Participant has an Employment Agreement defining “Cause,” the
definition under such Employment Agreement, or (ii), if the Participant has no Employment Agreement
defining “Cause,” the Participant’s gross misconduct, meaning (A) the Participant’s willful and
continued refusal substantially to perform his or her duties with the Company (other than any such
refusal resulting from his or her incapacity due to physical or mental illness), after a demand for
substantial performance is delivered to the Participant by the Board of Directors which
specifically identifies the manner in which the Board believes that the Participant has refused to
perform his or her duties, or (B) the willful engaging by the Participant in gross misconduct
materially and demonstrably injurious to the Company. For purposes of this definition, no act or
failure to act on the Participant’s part shall be considered “willful” unless done, or omitted to
be done, by the Participant not in good faith and without reasonable belief that his or her action
or omission was in the best interest of the Company.

 

 

     (d) “Covered Employee” means a Participant determined by the Committee to be likely to be a
named executive officer of the Company in the year compensation under the Plan will become payable
and whose compensation in that year likely could be non-deductible under Section 162(m) of the
Internal Revenue Code, such that the Committee has determined that compensation to such Participant
under the Plan should qualify as “performance-based compensation” for purposes of Section 162(m).

     (e) “Disability” means (i), if the Participant has an Employment Agreement defining
“Disability,” the definition under such Employment Agreement, or (ii), if the Participant has no
Employment Agreement defining “Disability,” the Participant’s incapacity due to physical or mental
illness resulting in the Participant’s absence from his or her duties with the Company on a
full-time basis for 26 consecutive weeks, and, within 30 days after written notice of termination
has been given by the Company, the Participant has not returned to the full-time performance of his
or her duties.

     (f) “Dividend Equivalents” means credits in respect of each PRSU representing an amount equal
to the dividends or distributions declared and paid on a share of Common Stock, subject to Section
7(b).

     (g) “Employment Agreement” means a written agreement between the Company and a Participant
securing the Participant’s services as an employee for a period of time and in effect at the later
of the time of the Participant’s Designation of Participation (as defined below) or December 31,
2008 or, if no such agreement is then in effect, an agreement providing severance benefits to the
Participant upon termination of employment in effect at the later of the time of the Participant’s
Designation of Participation or December 31, 2008 (including for this purpose an agreement
providing such benefits only during a period following a defined change in control, whether or not
a change in control in fact has occurred prior to the Participant’s Termination of Employment).

     (h) “Good Reason” means “Good Reason” as defined in the Participant’s Employment Agreement.
If the Participant has no such Employment Agreement, no circumstance will constitute “Good Reason”
for purpose of this Plan.

     (i) “Participant” means an Employee participating in this Plan.

     (j) “Performance Cycle” means the period specified by the Committee over which a designated
amount of PRSUs potentially may be earned. Performance Cycles generally will be periods comprising
three consecutive fiscal years of the Company.

     (k) “Performance Goal” means the performance required to be achieved as a condition of earning
of PRSUs under the Plan. As specified in Section 6(a), for each Participant who is a Covered
Employee in a given Performance Cycle, the Performance Goal will include at least two components, a
“Pre-Set Goal” which must be met in order for any amount to be earned and one or more “Challenge
Goals” which will then determine the amount of PRSUs such Participant will earn for the Performance
Cycle, and for each Participant who is not a Covered Employee in a given Performance Cycle, the
Performance Goal may but is not required to

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include the Pre-Set Goal and will include one or more Challenge Goals which will then
determine the amount of PRSUs such Participant will earn for the Performance Cycle.

     (l) “PRSU” or “Performance Restricted Stock Unit” means a Stock Unit which is potentially
earnable by a Participant hereunder upon achievement of the Performance Goal. PRSUs that have been
earned but deferred at the election of the Participant continue to be referred to as PRSUs under
the Plan, with the understanding that such PRSUs are no longer forfeitable upon Termination of
Employment or based on performance.

     (m) “Pro Rata Portion” means a portion of a specified number of PRSUs potentially earnable in
a given Performance Cycle determined by multiplying such number of PRSUs by a fraction the
numerator of which is the number of calendar days from the beginning of the Performance Cycle until
a specified Proration Date and the denominator of which is the number of calendar days in the
Performance Cycle.

     (n) “Stock Unit” means a bookkeeping unit which represents a right to receive one share of
Common Stock upon settlement, together with a right to accrual of additional Stock Units as a
result of Dividend Equivalents as specified in Section 7(b), subject to the terms and conditions of
this Plan. Stock Units, which constitute an award under Article VIII of the 1996 Plan (including
Section 8.6 thereof), are arbitrary accounting measures created and used solely for purposes of
this Plan, and do not represent ownership rights in the Company, shares of Common Stock, or any
asset of the Company.

     (o) “Target PRSUs” means a number of PRSUs designated as a target number that potentially may
be earned by a Participant in a given Performance Cycle.

     (p) “Termination of Employment” means the Participant’s termination of employment with the
Company or any of its subsidiaries or affiliates in circumstances in which, immediately thereafter,
the Participant is not employed by the Company or any of its subsidiaries or affiliates; provided,
however, that in the case of any PRSUs that constitute a deferral of compensation, Termination of
Employment shall mean a “separation from service” as defined in Treasury Regulation § 1.409A-1(h).
The date of Termination of Employment will be determined without giving effect to any period during
which severance payments may be made to a Participant, unless otherwise specifically stated herein.

     4. Shares Available Under the Plan. Shares issuable or deliverable in settlement of PRSUs
shall be drawn from the 1996 Plan. The Committee will monitor share usage under this Plan and the
1996 Plan to ensure that shares are available for settlement of PRSUs in compliance with the
requirements of the 1996 Plan.

     5. Eligibility. Employees who are eligible to participate in the 1996 Plan may be selected by
the Committee to participate in this Plan.

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     6. Designation and Earning of PRSUs.

     (a) Designation of PRSUs, Pre-Set Goals, Challenge Goals and Related Terms. Not later than 90
days after the beginning of a Performance Cycle (except that this time limitation will not apply in
the case of a Participant other than a Covered Employee), the Committee shall (i) select Employees
to participate in the Performance Cycle, (ii) designate the Pre-Set Goal (to the extent applicable)
for the Performance Cycle, and (iii) designate for each Participant the number of Target PRSUs and
the range of PRSUs the Participant shall have the opportunity to earn in such Performance Cycle.
The time at which these terms have been designated for a given Participant shall be the
Participant’s “Designation of Participation” for the specified Performance Cycle, except that with
respect to any designation made not later than 90 days after the beginning of a Performance Cycle,
the Designation of Participation shall be the commencement date of the Performance Cycle. The
number of PRSUs potentially earnable by each Participant shall range from 0% to a maximum
percentage of a specified number of Target PRSUs, subject to the following provisions:

	 	(A)	 	In no event may the number of PRSUs that may be potentially earnable by any one
Participant in all Performance Cycles that begin in any one calendar year exceed the
applicable annual per-person limitation set forth in Section 5.3 of the 1996 Plan; and
	 
	 	(B)	 	The maximum percentage of the number of Target PRSUs that may be earned shall
be 200% of the number of Target PRSUs, unless the Committee specifies a lesser
percentage.

The Pre-Set Goal is intended to be a “Performance Objective” within the meaning of Section 8.3 of
the 1996 Plan, in order to qualify PRSUs as “performance-based compensation” under Section 162(m)
of the Code. Accordingly, the Pre-Set Goal shall be based on one or more of the performance
criteria specified in Section 8.3 of the 1996 Plan. If the Pre-Set Goal applicable to a
Participant who is a Covered Employee (or if so specified for a Participant who is not a Covered
Employee) for a Performance Cycle is not achieved, no PRSUs may be earned by the Participant for
such Performance Cycle. In addition, the Committee may at any time, in its discretion, specify the
Challenge Goals applicable to one or more years of the Performance Cycle. Challenge Goals may be
specified as a table, grid, or formula that sets forth the amount of PRSUs that will be earned upon
achievement of a specified level of performance during all or part of the Performance Cycle
(subject to the requirement that the Pre-Set Goal has been achieved, in the case of a Participant
who is a Covered Employee or if so specified by the Committee for other Participants). For
purposes of Section 162(m) of the Code, the Committee is authorized to treat the maximum percentage
of PRSUs as earned upon achievement of the Pre-Set Goal, so specification of the Challenge Goals
and related terms represents an exercise of negative discretion by the Committee.

     (b) Adjustments to Performance Goal. The Committee may provide for adjustments to the
Performance Goal, to reflect changes in accounting rules, corporate structure or other
circumstances of the Company, for the purpose of preventing dilution or enlargement of
Participants’ opportunity to earn PRSUs hereunder; provided, however, that no adjustment shall

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be authorized if and to the extent that such authorization or adjustment would cause the
Pre-Set Goal applicable to a Participant who is a Covered Employee not to meet the “performance
goal requirement” set forth in Treasury Regulation § 1.162-27(e)(2) under the Code.

     (c) Determination of Number of Earned PRSUs. Not later than the March 15 following the end of
each Performance Cycle, the Committee shall determine the extent to which the Performance Goal for
the earning of PRSUs was achieved during such Performance Cycle and the number of PRSUs earned by
each Participant for the Performance Cycle. The Committee shall make written determinations that
any Pre-Set Goal and Challenge Goals and any other material terms relating to the earning of PRSUs
were in fact satisfied. The date at which the Committee makes a final determination of PRSUs
earned with respect to a given Performance Cycle will be the “Determination Date” for such
Performance Cycle. The Committee may adjust upward or downward the number of PRSUs earned, in its
discretion, in light of such considerations as the Committee may deem relevant (but subject to
applicable limitations of the 1996 Plan, as referenced in Section 6(a) of this Plan), provided
that, with respect to a Participant who is a Covered Employee, no upward adjustment may be made if
the Pre-Set Goal has not been achieved and adjustments otherwise shall comply with applicable
requirements of Treasury Regulation § 1.162-27(e) under the Code.

     7. Certain Terms of PRSUs.

     (a) Accounts. The Company shall maintain a bookkeeping account for each Participant
reflecting the number of PRSUs then credited to the Participant hereunder. The Account may include
subaccounts or other designations showing, with respect to separate Performance Cycles, PRSUs that
remain potentially earnable, PRSUs that have been earned but deferred, and other relevant
information. Fractional PRSUs shall be credited to at least three decimal places for purposes of
this Plan, unless otherwise determined by the Administrator.

     (b) Dividend Equivalents and Adjustments. Unless otherwise determined by the Administrator,
Dividend Equivalents shall be paid or credited on PRSUs that have been earned as follows:

	 	(i)	 	Regular Cash Dividends. At the time of settlement of PRSUs under Section 8 or
9, the Administrator shall determine the aggregate amount of regular cash dividends
that would have been payable to the Participant, based on record dates for dividends
since the beginning of the Performance Cycle (or, if later, the date of the
Participant’s Designation of Participation), if the earned PRSUs then to be settled had
been outstanding shares of Common Stock at such record date (without compounding of
dividends but adjusted to account for splits and other extraordinary corporate
transactions). Such aggregate cash amount will be converted to a number of shares by
dividing the amount by the Fair Market Value of a share of Common Stock at the
settlement date.
	 
	 	(ii)	 	Common Stock Dividends and Splits. If the Company declares and pays a
dividend or distribution on Common Stock in the form of additional shares of Common
Stock, or there occurs a forward split of Common Stock, then the

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	 	 	 	number of PRSUs credited to each Participant’s Account and potentially earnable
hereunder as of the payment date for such dividend or distribution or forward split
shall be automatically adjusted by multiplying the number of PRSUs credited to the
Account or potentially earnable as of the record date for such dividend or
distribution or split by the number of additional shares of Common Stock actually
paid as a dividend or distribution or issued in such split in respect of each
outstanding share of Common Stock.

	 	(iii)	 	Adjustments. If the Company declares and pays a dividend or distribution on
Common Stock that is not a regular cash dividend and not in the form of additional
shares of Common Stock, of if there occurs any other event referred to in Article XI of
the 1996 Plan, the Committee may determine to adjust the number of PRSUs credited to
each Participant’s Account and potentially earnable hereunder, in order to prevent
dilution or enlargement of Participants’ rights with respect to PRSUs.

     (c) Statements. An individual statement relating to a Participant’s Account will be issued to
the Participant not less frequently than annually. Such statement shall report the amount of PRSUs
potentially earnable and the number of PRSUs earned and remaining credited to Participant’s Account
(i.e., not yet settled), transactions therein during the period covered by the statement, and other
information deemed relevant by the Administrator. Such statement may be combined with or include
information regarding other plans and compensatory arrangements affecting the Participant. A
Participant’s statements may evidence the Company’s obligations in respect of PRSUs without the
need for the Company to enter into a separate agreement relating to such obligations; provided,
however, that any statement containing an error shall not represent a binding obligation to the
extent of such error.

     8. Effect of Termination of Employment.

     (a) Termination Prior to End of a Performance Cycle. Except to the extent set forth in
subsections (i) through (v) of this Section 8(a), upon a Participant’s Termination of Employment
prior to the end of a given Performance Cycle all unearned PRSUs relating to such Performance
Cycle shall cease to be earnable and shall be canceled and forfeited, and Participant shall have no
further rights or opportunities hereunder:

	 	(i)	 	Retirement.
	 
	 	 	 	(A) With respect to Performance Cycles for the years 2008-2010 and 2009-2011, if
Termination of Employment is due to the Retirement (as defined in the 1996 Plan) of
the Participant, the Participant shall be entitled to receive settlement of a Pro
Rata Portion of the total number of PRSUs the Participant is deemed to have earned
in accordance with this Section 8(a)(i)(A), with the Proration Date (used to
calculate the Pro Rata Portion) being the date of Retirement, except that PRSUs
relating to any Performance Cycle beginning in 2009 that has not completed one full
year as of the date of Termination of Employment will not be earnable and will be
cancelled as of the date of Termination of Employment. The settlement of

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	 	 	 	such PRSUs shall occur promptly (and in any event not later than March 15) following
completion of the fiscal year of the Company in which the Termination of Employment
occurs. Performance for any open Performance Cycle shall be deemed to be the
average performance achieved for the fiscal year(s) completed prior to the date of
settlement. Any deferral election filed by the Participant shall be effective and
apply to the settlement of the PRSUs.

	 	 	 	(B) For any Performance Cycle commencing in 2010 or thereafter, if Termination of
Employment is due to the Retirement of the Participant, the Participant shall be
entitled to receive settlement of the total number of PRSUs the Participant is
deemed to have earned for the full Performance Cycle in accordance with Section
6(c), except that PRSUs relating to any Performance Cycle that has not completed one
full year as of the date of Termination of Employment will not be earnable and will
be cancelled as of the date of Termination of Employment. The settlement of PRSUs
for any such Performance Cycle shall occur promptly (and in any event not later than
March 15) following completion of that Performance Cycle. Any deferral election
filed by the Participant shall be effective and apply to the settlement of the
PRSUs.
	 
	 	(ii)	 	Death or Disability. If Termination of Employment is due to the Participant’s
death or Disability, the Participant in the case of Disability or the Participant’s
Beneficiary in the case of death shall be entitled to receive settlement of a Pro Rata
Portion of the total number of PRSUs the Participant is deemed to have earned in
accordance with this Section 8(a)(ii), with the Proration Date (used to calculate the
Pro Rata Portion) being the date of death or Termination due to Disability. The
settlement of such PRSUs shall occur promptly (and in any event not later than March
15) following completion of the fiscal year of the Company in which the date of death
or Termination due to Disability occurs. Performance for any open Performance Cycle
shall be deemed to be the average performance achieved for the fiscal year(s) completed
prior to the date of settlement. Any deferral election filed by the Participant shall
have no effect on the settlement of the PRSUs.
	 
	 	(iii)	 	Involuntary Termination By the Company Not for Cause Prior to a Change in
Control. If Termination of Employment is an involuntary separation by the Company not
for Cause prior to a Change in Control, the Participant shall be entitled to receive
settlement of a Pro Rata Portion of the total number of PRSUs the Participant is
deemed to have earned in accordance with this Section 8(a)(iii), with the Proration
Date (used to calculate the Pro Rata Portion) being the earlier of (A) the last day of
the payroll period with respect to which a severance payment in the nature of salary
continuation has been made and (B) the last day of the Performance Cycle. If no
severance payments are to be made, the applicable Proration Date shall be the date of
Termination of Employment. In all cases under this Section 8(a)(iii), PRSUs relating
to any Performance Cycle beginning in 2009 or later or, with respect to the 2008-2010
Performance Cycle, as to which the Participant has been designated a participant after
July 1, 2008, in which the

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	 	 	 	Participant has not participated for twelve months as of the date of Termination of
Employment (i.e., Termination occurs within 12 months after the Participant’s
Designation of Participation) will not be earnable and will be cancelled as of the
date of Termination of Employment. The settlement of PRSUs shall occur promptly (and
in any event not later than March 15) following completion of the fiscal year of the
Company in which the Proration date occurs. Performance for any open Performance
Cycle shall be deemed to be the average performance achieved for the fiscal year(s)
completed prior to the date of settlement. Any deferral election filed by the
Participant shall have no effect on the settlement of the PRSUs.
	 
	 	(iv)	 	At or Following a Change in Control, Involuntary Termination By the Company Not
for Cause or by Participant for Good Reason. If Termination of Employment occurs at or
after a Change in Control and is an involuntary separation by the Company not for Cause
or a Termination by the Participant for Good Reason, the Participant shall be entitled
to receive settlement of the total number of PRSUs the Participant is deemed to have
earned in accordance with this Section 8(a)(iv), promptly (and in any event within 30
days) following the date of Termination of Employment. The amount of the settlement
shall assume that the Participant has remained with the Company through the completion
of each open Performance Cycle and that the performance achieved by the Company for
each such Performance Cycle is the average of the performance achieved for the
completed year(s) in such Performance Cycle if greater than 100% (i.e., the performance
required to earn at least the Target PRSUs), or, if such average is less than 100%, the
performance achieved shall be deemed to be the average of the actual performance for
the completed year(s) in such Performance Cycle (if any) together with performance for
years not yet complete being deemed to be 100% of target performance. Any deferral
election filed by the Participant shall have no effect on the settlement of the PRSUs.
	 
	 	(v)	 	Termination by the Company for Cause or Voluntary Termination by the
Participant. If Termination of Employment is either by the Company for Cause or
voluntary by the Participant (excluding a Termination for Good Reason following a
Change in Control and excluding a Retirement), PRSUs relating to each Performance Cycle
which has not yet ended will cease to be earnable and will be canceled.

The foregoing provisions notwithstanding, if any PRSUs constitute a deferral of compensation for
purposes of Code Section 409A, and (i) such PRSUs would be settled at a date related to a
Termination of Employment under this Section 8(a) (or in connection with a permitted elective
deferral of the PRSUs), (ii) such settlement date would be within six months after the Termination
of Employment, (iii) the Company at the date of Termination has any class of securities traded in a
public trading market, and (iv) the Participant is a “Specified Employee” at the date of
Termination of Employment under Code Section 409A, then the settlement date will be delayed until
the date six months after Termination of Employment. PRSUs for a given Performance Cycle each will
be deemed a separate payment for purposes of Code Section 409A.

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It is intended that PRSUs that are not electively deferred hereunder constitute short-term
deferrals under Treasury Regulation § 1.409A-1(b)(4), unless otherwise specifically designated by
the Company in the case of a specified Participant.

     (b) Termination After Performance Cycle. Upon a Participant’s Termination of Employment at or
after the end of a Performance Cycle, all PRSUs resulting from such Performance Cycle shall be
settled in accordance with Section 9(a) as promptly as practicable after the Determination Date
with respect to such Performance Cycle, except that, if the Participant has timely filed an
irrevocable election to defer settlement of PRSUs following a Termination of Employment due to
Retirement, such PRSUs shall be settled in accordance with such deferral election.

     (c) Release. Any settlement of PRSUs following Termination of Employment may be delayed by
the Committee if the Participant’s Employment Agreement or any policy of the Committee then in
effect conditions such settlement or severance payments upon the Company receiving a full and valid
release of claims against the Company. In such case, the Company shall supply the form of release
to the Participant by the date of Termination of Employment, and Participant must sign the release
and not revoke it by such date as may be specified by the Company but in no event later than 52
days after Termination of Employment.

     9. Settlement of PRSUs.

     (a) Settlement If PRSUs Not Deferred. Not later than the March 15 following the end of each
Performance Cycle, the Committee shall settle all PRSUs earned in respect of such Performance
Cycle, other than PRSUs deferred under Section 9(b) or settled as specified in Section 8, by
issuing and/or delivering to the Participant one share of Common Stock for each PRSU being settled.
Such issuance or delivery shall occur as promptly as practicable after the Determination Date for
the Performance Cycle.

     (b) Deferral of PRSUs. If and to the extent authorized by the Committee, at any time on or
before such date as may be specified by the Administrator, the Participant may elect to defer
settlement of PRSUs to a date (i) later than the Determination Date for the Performance Cycle to
which the PRSUs relate or (ii) later than Termination of Employment due to Retirement, as specified
by the Participant; provided, however, that an optional deferral shall be subject to such
additional restrictions and limitations as the Committee or Administrator may from time to time
specify, including for purposes of ensuring that the Participant will not be deemed to have
constructively received compensation in connection with such deferral. Dividend equivalents shall
accrue on deferred PRSUs and shall be paid in cash annually to the Participant at an annual payment
date set by the Administrator, without interest or compounding. Other provisions of the Plan
notwithstanding, if any legislation or regulation imposes requirements on elective non-qualified
deferred compensation that are inconsistent with the Plan and procedures hereunder, if Participants
are not afforded an opportunity under such legislation or regulation to withdraw or modify their
prior elections or deferred compensation resulting therefrom, then (i) if the prior deferrals can
be automatically modified to conform to the requirements of the legislation or regulation with the
Participant being deemed not to be in constructive receipt of the deferred compensation, then such
modification automatically shall be in effect, and (ii) if not, then such

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deferral will immediately end and the deferred PRSUs shall be promptly settled in accordance
with the Plan; provided, however, that if a Participant would be deemed to be in constructive
receipt of any deferred amounts solely because of this provision, the provision shall be void and
of no effect.

     (c) Creation of Rabbi Trust. If and to the extent authorized by the Committee, the Company
may create one or more trusts and deposit therein Common Stock or other property for delivery to
the Participant in satisfaction of the Company’s obligations hereunder. Any such trust shall be a
“rabbi” trust that shall not jeopardize the status of the Participant’s rights hereunder as
“unfunded” deferred compensation for federal income tax purposes. If so provided by the Committee,
upon the deposit by the Committee of Common Stock in such a trust, there shall be substituted for
the rights of the Participant to receive settlement by issuance and/or delivery of Common Stock
under this Agreement a right to receive property of the same type as and equal in value to the
assets of the trust (to the extent that such assets represent the full amount of the Company’s
obligation at the date of deposit). The trustee of the trust shall not be permitted to diversify
trust assets by voluntarily disposing of shares of Common Stock in the trust and reinvesting
proceeds, but such trustee may be authorized to dispose of other trust assets and reinvest the
proceeds in alternative investments, subject to such terms, conditions, and limitations as the
Committee may specify, including for the purpose of avoiding adverse accounting consequences to the
Company, and in accordance with applicable law.

     (d) Settlement of PRSUs at the End of the Deferral Period. Not later than 15 days after the
end of any elective period of deferral or immediately in the case of a deferral period ending upon
a Change in Control, the Company will settle all PRSUs then credited to a Participant’s Account by
issuing and/or delivering to the Participant one share of Common Stock for each PRSU being settled.
Any deferral period will end on an accelerated basis immediately prior to a Change in Control,
except as limited under Section 9(b).

     (e) Manner of Settlement. The Committee or Administrator may, in its or his or her sole
discretion, determine the manner in which shares of Common Stock shall be delivered by the Company,
including the manner in which fractional shares shall be dealt with; provided, however, that no
certificate shall be issued representing a fractional share. In furtherance of this authority,
PRSUs may be settled by the Company issuing and delivering the requisite number of shares of Common
Stock to a member firm of the New York Stock Exchange which is also a member of the National
Association of Securities Dealers, as selected by the Company from time to time, which shares shall
be deposited by such member firm in separate brokerage accounts for each Participant. If there
occurs any delay between the settlement date and the date shares are issued or delivered to the
Participant, a cash amount equal to any dividends or distributions the record date for which fell
between the settlement date and the date of issuance or delivery of the shares shall be paid to the
Participant together with the delivery of the shares.

     (f) Settlement of PRSUs Held by Non-US Residents. Other provisions of the Plan (including
Section 9(e)) notwithstanding, PRSUs credited to the Account of a Participant who resides in or is
subject to income tax laws of a country other than the United States may be settled in cash, in the
discretion of the Committee. The cash amount payable in settlement of each PRSU shall equal the
Fair Market Value of a share at the date of not more than five business

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days before the date of settlement. The Committee is authorized to vary the terms of
participation of such foreign Participants in any other respect (including in ways not consistent
with the express provisions of the Plan) in order to conform to the laws, regulations, and business
customs of a foreign jurisdiction.

     (g) Tax Withholding. The Company shall deduct from any settlement of a Participant’s PRSUs
and cash dividends paid in respect of any deferred PRSUs any Federal, state, or local withholding
or other tax or charge which the Company is then required to deduct under applicable law. In
furtherance of this requirement, the Company shall withhold from the shares of Common Stock
issuable or deliverable in settlement of a Participant’s PRSUs the number of shares having an
aggregate Fair Market Value equal to any Federal, state, and local withholding or other tax or
charge which the Company is required to withhold under applicable law, unless the Participant has
otherwise elected and has made other arrangements satisfactory to the Company to pay such
withholding amounts or unless otherwise determined by the Committee.

     (h) Non-Transferability. Unless otherwise determined by the Committee, neither a Participant
nor any beneficiary shall have the right to, directly or indirectly, alienate, assign, transfer,
pledge, anticipate, or encumber (except by reason of death) any PRSU, Account or Account balance,
or other right hereunder, nor shall any such PRSU, Account or Account balance, or other right be
subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment,
or garnishment by creditors of the Participant or any beneficiary, or to the debts, contracts,
liabilities, engagements, or torts of the Participant or any Beneficiary or transfer by operation
of law in the event of bankruptcy or insolvency of the Participant or any beneficiary, or any legal
process.

     10. General Provisions.

     (a) Changes to this Plan. The Committee may at any time amend, alter, suspend, discontinue,
or terminate this Plan, and such action shall not be subject to the approval of the Company’s
shareholders; provided, however, that, without the consent of an affected Participant, no such
action may materially impair the rights of such Participant under this Plan. The foregoing
notwithstanding, the Committee may, in its discretion, accelerate the termination of any
Performance Cycle or any deferral period and the resulting settlement of PRSUs with respect to an
individual Participant or all Participants, except that any accelerated settlement of PRSUs that
constitute a deferral of compensation under Code Section 409A may occur only in compliance with
applicable Regulations and interpretations of Section 409A.

     (b) Delegation of Administrative Authority. The Committee may, in writing, delegate some or
all of its power and responsibilities under the Plan to the Administrator or any other officer of
the Company or committee of officers and employees, except such delegation may not include (i)
authority to amend the Plan under Section 10(a), (ii), with respect to any executive officer of the
Company, authority under Section 6 or other authority required to be exercised by the Committee in
order that compensation under the Plan will qualify as performance-based compensation under Section
162(m) of the Code, or (iii) authority that otherwise may not be delegated under the terms of the
1996 Plan, this Plan, or applicable law. In furtherance of this authority, the Committee hereby
delegates to the Administrator, as from time

11

 

to time designated, authority to administer the Plan and act on behalf of the Committee to the
fullest extent permitted under this Section 10(b). This delegation of authority to the
Administrator shall remain in effect until terminated or modified by resolution of the Committee
(without a requirement that the Plan be amended further). The authority delegated to the
Administrator hereunder shall include:

	 	(i)	 	Authority to adopt such rules for the administration of the Plan as the
Administrator considers desirable, provided they do not conflict with the Plan; and
	 
	 	(ii)	 	Authority under Section 9(b) to impose restrictions or limitations on
Participant deferrals under the Plan, including in order to promote cost-effective
administration of the Plan; no restriction or limitation on deferrals shall be deemed
to conflict with the Plan.

No individual acting as Administrator (including any member of the committee serving as
Administrator) shall participate in a decision directly affecting his or her own rights or
obligations under the Plan, although participation in a decision affecting all Participants shall
not be prohibited by this provision.

     (c) Nonexclusivity of the Plan. The adoption of this Plan shall not be construed as creating
any limitations on the power of the Board or Committee to adopt such other compensation
arrangements as it may deem desirable for any Participant.

     (d) Effective Date and Plan Termination. This Plan became effective on January 1, 2004,
following its approval by the Committee. This Plan was most recently amended by the Committee on
February 8, 2010. This Plan will remain in effect until such time as the Company and Participants
have no further rights or obligations under this Plan in respect of PRSUs not yet settled or the
Committee otherwise terminates this Plan.

12Exhibit 10.1

	 	 	 	 	 

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (“Agreement”) is effective as of March 1, 2010, by and between EMMIS
OPERATING COMPANY, an Indiana company (“Employer”), and RICHARD F. CUMMINGS, a California resident
(“Executive”).

RECITALS

WHEREAS, Employer and its affiliates are engaged in the ownership and operation of certain
radio stations, magazines, and related operations (together, the “Emmis Group”); and

WHEREAS, Employer desires to employ Executive and Executive desires to be so employed.

NOW, THEREFORE, in consideration of the foregoing, the mutual promises and covenants set forth
in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

AGREEMENT

1. Employment Status and Duties. Upon the terms and subject to the conditions set
forth in this Agreement, Employer hereby employs Executive, and Executive hereby accepts exclusive
employment with Employer. During the Term (as defined herein), Executive shall serve as President,
Emmis Radio Programming. Executive shall have such duties, functions, authority and
responsibilities as are commensurate with such position. Executive’s services hereunder shall be
performed on an exclusive, full-time basis in a professional, diligent and competent manner to the
best of Executive’s abilities. Executive shall not undertake any outside employment or business
activities without the prior written consent of Employer. Executive shall be permitted to serve on
the board of charitable or civic organizations so long as such services: (i) are approved in
writing in advance by Employer; and (ii) do not interfere with Executive’s duties and obligations
under this Agreement. It is understood and agreed that the location for the performance of
Executive’s duties and services pursuant to this Agreement shall be the offices located at 3500
West Olive Avenue, Burbank, California, or if Employer no longer maintains possession of those
premises, then such offices as may be designated by Employer in Los Angeles, California. If
Executive is elected as a Director of Emmis Communications Corporation, he shall serve in such
position without additional remuneration (unless Employer elects to remunerate “inside directors”)
but shall be entitled to the benefit of indemnification pursuant to the terms of Section
14.12. Executive shall also serve without additional remuneration as a director and/or
officer of one (1) or more of Employer’s subsidiaries or affiliates if appointed to such
position(s) by Employer and shall also be entitled to the benefit of indemnification pursuant to
the terms of Section 14.12.

 

 

 

2. Term. The term of this Agreement shall be for a period of one (1) year commencing
on March 1, 2010, and continuing until February 28, 2011, unless earlier
terminated in accordance with the provisions set forth in this Agreement (the “Term”). Unless
Executive or Employer provides the other written notice prior to December 31 of the then-current
Contract Year (as defined below) of such party’s election not to allow the Agreement to
automatically renew, the Agreement shall automatically renew for successive one year periods. Each
year commencing on March 1 and ending on the last day of February during the Term shall be a
“Contract Year.” Upon failure of either party to make the foregoing election by December 31, the
Term of this Agreement shall be deemed renewed for the Contract Year commencing the following March
1 and, as used throughout this Agreement, “Term” shall include such additional Contract Year.

3. Base Salary; Auto Allowance. Upon the terms and subject to the conditions set
forth in this Agreement, Employer shall pay or cause to be paid to Executive during the Term an
annualized base salary (the “Base Salary”) of $446,500, payable pursuant to Employer’s customary
payroll practices and subject to applicable taxes and withholdings as required by law.
Notwithstanding anything to the contrary contained herein, the Base Salary may be reduced, from
time to time, by Employer without notice, provided that the annualized Base Salary cannot at any
time be less than $423,000.

Except as otherwise set forth herein, Employer shall have no obligation to pay Executive the
Base Salary for any periods during which Executive fails or refuses to render services pursuant to
this Agreement or for any period following the expiration or termination of this Agreement. In
addition, it is understood and agreed that Employer may, at its sole election, pay up to ten
percent (10%) of Executive’s Base Salary in shares of Class A Common Stock of Emmis Communications
Corporation (the “Shares”); provided that: (i) the Shares are registered with the U.S. Securities
and Exchange Commission (the “SEC”) on a then-effective Form S-8 or other applicable registration
statement and are issued without restriction on resale (and further provided that the Shares are
listed on a securities exchange or over-the-counter market, which does not include listing on the
“pink sheets,” at the time of issuance), subject to any restrictions on resale under Employer’s
insider trading policy or applicable federal and state law; and (ii) the percentage of Executive’s
Base Salary payable in Shares shall be consistent with, and the exact number of Shares to be
awarded to Executive shall be determined in the same manner as, that utilized for other senior
management level employees.

During the Term, Executive shall receive a monthly auto allowance in the amount of One
Thousand Dollars ($1,000) (subject to withholding and applicable taxes as required by law)
consistent with Employer’s policy or practices regarding such allowances, as such policy or
practices may be amended from time to time during the Term in Employer’s sole and absolute
discretion; provided, however, that in no event shall the auto allowance amount paid to Executive
pursuant to this provision be reduced.

 

2

 

4. Incentive Compensation.

4.1 Bonus Amounts. Upon the terms and subject to the conditions set forth in
this Section 4, Executive shall be eligible to receive one (1) performance bonus in
a target amount equivalent to sixty percent (60%) of Executive’s Base
Salary for each Contract Year, and the exact amount of such performance bonus, if any,
shall be determined on the basis of Executive’s attainment of certain performance and
financial goals to be determined by Employer in its sole and absolute discretion.

4.2 Payment of Bonus Amounts. Employer shall pay or cause to be paid to
Executive the foregoing bonus amounts if earned according to the terms and conditions set
forth in Section 4.1; provided, that, at the end of the relevant
measuring period: (i) this Agreement is in full force and effect and has not been
terminated for any reason (other than due to a material breach of this Agreement by
Employer); and (ii) Executive is fully performing all of Executive’s duties and obligations
pursuant to this Agreement and is not in breach of any of the material terms and conditions
of this Agreement. In addition, it is understood and agreed that Employer may, at its sole
election, pay any bonus amounts earned by Executive pursuant to this Section 4 in
cash or Shares; provided that: (i) the Shares are registered with the SEC on a
then-effective Form S-8 or other applicable registration statement and are issued without
restriction on resale (and further provided that the Shares are listed on a securities
exchange or over-the-counter market, which does not include listing on the “pink sheets,”
at the time of issuance), subject to any restrictions on resale under Employer’s insider
trading policy or applicable federal and state law; and (ii) the percentage of Executive’s
Base Salary payable in Shares shall be consistent with, and the exact number of Shares to
be awarded to Executive shall be determined in the same manner as, that utilized for other
senior management level employees. Any bonus amounts earned by Executive pursuant to the
terms and conditions of this Section 4 shall be paid after the end of the relevant
measuring period (but in no event later than ninety (90) days after the end of the relevant
measuring period). Any and all bonus amounts payable by Employer to Executive pursuant to
this Section 4 shall be subject to applicable taxes and withholdings as required by
law.

5. Expenses; Travel. Employer shall pay or reimburse Executive for all reasonable
expenses actually incurred or paid by Executive during the Term in connection with the performance
of Executive’s services hereunder upon presentation of expense statements, vouchers or other
supporting documentation as Employer may require of Executive; provided such expenses are otherwise
in accordance with Employer’s policies. Executive shall undertake such travel as may be required
in the performance of Executive’s duties pursuant to this Agreement. Under no circumstances shall
the Employer’s reimbursement for expenses incurred in a calendar year be made later than the end of
the next following calendar year; provided, however, this requirement shall not alter the
Employer’s obligation to reimburse Executive for eligible expenses on a current basis.

 

3

 

6. Fringe Benefits.

6.1 Vacation and Other Benefits. During each Contract Year, Executive shall
be entitled to four (4) weeks of paid vacation in accordance with Employer’s applicable
policies and procedures for executive-level employees.
Executive shall also be eligible to participate in and receive the fringe benefits
generally made available to other executive-level employees of Employer in accordance with
and to the extent that Executive is eligible under, the general provisions of Employer’s
fringe benefit plans or programs; provided, however, Executive understands that these
benefits may be increased, changed, eliminated or added from time to time during the Term
as determined in Employer’s sole and absolute discretion.

6.2 Life and Disability Insurance. During each Contract Year, Employer agrees
to reimburse Executive in an amount not to exceed Five Thousand Dollars ($5,000) for the
annual premium associated with Executive’s purchase or maintenance of a life or disability
insurance policy or other insurance policies on the life, or related to the care, of
Executive. Executive shall be entitled to freely select and change the beneficiary or
beneficiaries under such policy or policies. Notwithstanding anything to the contrary
contained in this Agreement, Employer’s obligations under this Section 6.2 are
expressly contingent upon Executive providing required information and taking all necessary
actions required of Executive in order to obtain and maintain the subject policy or
policies, including without limitation, passing any required physical examinations.

7. Confidential Information.

7.1 Non-Disclosure. Executive acknowledges that certain information
concerning the business of the Emmis Group and its members (including but not limited to
trade secrets and other proprietary information) is of a highly confidential nature, and
that, as a result of Executive’s employment with Employer prior to and during the Term,
Executive shall receive and develop, proprietary and confidential information concerning
the business of Employer and/or other members of the Emmis Group which, if known to
Employer’s competitors, would damage Employer, other members of the Emmis Group and their
respective businesses. Accordingly, Executive hereby agrees that during the Term and
thereafter, Executive shall not divulge or appropriate for Executive’s own use, or for the
use or benefit of any third party (other than Employer and its representatives, or as
directed in writing by Employer), any information or knowledge concerning the business of
Employer or any other member of the Emmis Group which is not generally available to the
public other than through the activities of Executive. Executive further agrees that,
immediately upon termination of Executive’s employment for any reason, Executive shall
promptly surrender to Employer all documents, brochures, plans, strategies, writings,
illustrations, client lists, price lists, sales, financial or marketing plans, budgets and
any and all other materials (regardless of form or character) which Executive received from
or developed on behalf of Employer or any member of the Emmis Group in connection with
Executive’s employment prior to or during the Term. Executive acknowledges that all such
materials shall remain at all times during the Term and thereafter the sole and exclusive
property of Employer and that
nothing in this Agreement shall be deemed to grant Executive any right, title or
interest in such material.

 

4

 

7.2 Ownership of Materials. Employer shall solely and exclusively own all
rights of every kind and nature in perpetuity and throughout the universe in: (i) the
programs and broadcasts on which Executive appears or for which Executive renders services
to Employer in any capacity; (ii) the results and proceeds of Executive’s services pursuant
to this Agreement including, without limitation, those results and proceeds provided in
connection with the creation, development, preparation, writing, editing or production by
Executive or any employee of any member of the Emmis Group of any and all materials,
properties or elements of any and all kinds for the programs on which Executive appears or
for which Executive renders services (whether directly or indirectly); and (iii) any
business, financial, sales or marketing plans and strategies, documents, presentations, or
other similar materials, regardless of kind or character, each of which Executive
acknowledges is a work specially ordered by Employer which shall be considered to be a
“work made for hire” for Employer. Therefore, Employer shall be the author and copyright
owner of the programs on which Executive appears or for which Executive renders services
pursuant to this Agreement, the broadcasts and tapes or recordings thereof for all purposes
without limitation of any kind, and all materials described in the immediately preceding
sentence. All characters developed for the programs and broadcasts during the Term shall
be solely and exclusively owned by Employer, including all right, title and interest
thereto. The exclusive legal title to all of the aforesaid works and matters, programs,
broadcasts, and materials and all secondary and derivative rights therein, shall belong, at
all times, to Employer which shall have the right to copyright the same and apply for
copyright registrations and copyright renewal registrations and to make whatever use
thereof that Employer, in its sole and absolute discretion, deems advisable, including but
not limited to rebroadcasts of programs or use of any portions of any program in the
production or broadcast of other programs at any time, notwithstanding expiration of the
Term or termination of this Agreement for any reason.

7.3 Injunctive Relief. Executive acknowledges that Executive’s breach of this
Section 7 will cause irreparable harm and damage to Employer, the exact amount of
which will be difficult to ascertain; that the remedies at law for any such breach would be
inadequate; and that the provisions of this Section 7 have been specifically
negotiated and carefully written to prevent such irreparable harm and damage. Accordingly,
if Executive breaches this Section 7, Employer shall be entitled to injunctive
relief (including attorneys’ fees and costs) enforcing this Section 7 to the extent
reasonably necessary to protect Employer’s legitimate interests, without posting bond or
other security.

 

5

 

8. Non-Interference; Injunctive Relief.

8.1 Non-Interference. During the Term, and for a period of two (2) years
immediately following the expiration or early termination of the Term for
any reason, and during the Post Term Period if Executive elects part-time employment
pursuant to Section 13, Executive shall not, directly or indirectly, take any
action (or permit any action to be taken by an entity with which Executive is associated)
which has the effect of interfering with Employer’s relationship (contractual or otherwise)
with: (i) on-air talent of any member of the Emmis Group; or (ii) any other employee of any
member of the Emmis Group. Without limiting the generality of the foregoing, Executive
specifically agrees that during such time period, neither Executive nor any entity with
which Executive is associated shall solicit, hire or engage any on-air talent or other
employee of any member of the Emmis Group or any other employee of any member of the Emmis
Group to provide services for Executive’s benefit or for the benefit of any other business
or entity, or solicit or encourage them to cease their employment with any member of the
Emmis Group for any reason.

8.2 Injunctive Relief. Executive acknowledges and agrees that the provisions
of this Section 8 have been specifically negotiated and carefully worded in
recognition of the opportunities which will be afforded to Executive by Employer by virtue
of Executive’s continued association with Employer during the Term, and the influence that
Executive has and will continue to have over Employer’s employees, customers and suppliers.
Executive further acknowledges that Executive’s breach of Section 8.1 herein will
cause irreparable harm and damage to Employer, the exact amount of which will be difficult
to ascertain; that the remedies at law for any such breach would be inadequate; and that
the provisions of this Section 8 have been specifically negotiated and carefully
written to prevent such irreparable harm and damage. Accordingly, if Executive breaches
Section 8.1, Employer shall be entitled to injunctive relief (including attorneys’
fees and costs) enforcing Section 8.1, to the extent reasonably necessary to
protect Employer’s legitimate interests, without posting bond or other security.
Notwithstanding anything to the contrary contained in this Agreement, if Executive violates
Section 8.1, and Employer brings legal action for injunctive or other relief,
Employer shall not, as a result of the time involved in obtaining such relief, be deprived
of the benefit of the full period of noninterference set forth therein. Accordingly, the
obligations set forth in Section 8.1 shall have the duration set forth therein,
computed from the date such relief is granted but reduced by the time expired between the
date the restrictive period began to run and the date of the first violation of the
obligation(s) by Executive.

8.3 Construction. Despite the express agreement herein between the parties,
in the event that any provisions set forth in this Section 8 shall be determined by
any court or other tribunal of competent jurisdiction to be unenforceable for any reason
whatsoever, the parties agree that this Section 8 shall be interpreted to extend
only to the maximum extent as to which it may be enforceable, and that this Section
8 shall be severable into its component parts, all as determined by such court or
tribunal.

 

6

 

9. Termination of Agreement by Employer for Cause.

9.1 Termination. Employer may terminate this Agreement and Executive’s
employment hereunder for Cause (as defined in Section 9.3 below) in accordance with
the terms and conditions of this Section 9. Following a determination by Employer
that Executive should be terminated for Cause, Employer shall give written notice (the
“Preliminary Notice”) to Executive specifying the grounds for such termination, and
Executive shall have ten (10) days after receipt of the Preliminary Notice to respond to
Employer in writing. If following the expiration of such ten (10) day period Employer
reaffirms its determination that Executive should be terminated for Cause, such termination
shall be effective upon delivery by Employer to Executive of a final notice of termination
(the “Final Notice”).

9.2 Effect of Termination. In the
event of termination for Cause as provided in Section 9.1 above:

(i) Executive shall have no further obligations or liabilities hereunder
except Executive’s obligations under Sections 7 and 8, which shall
survive the termination of this Agreement, and except for any obligations arising
in connection with any conduct of Executive described in Section 9.3;

(ii) Employer shall have no further obligations or liabilities hereunder,
except that Employer shall, not later than two (2) weeks after the termination
date:

(a) Pay to Executive all earned but unpaid Base Salary with respect
to any applicable pay period ending on or before the termination date; and

(b) Pay to Executive any bonus amounts which have been earned on or
prior to the termination date pursuant to Section 4, if any, but
which remain unpaid as of the termination date.

9.3 Definition of Cause. For purposes of this Agreement, “Cause” shall be
defined to mean any of the following: (i) Executive’s failure, refusal or neglect to
perform any of Executive’s material duties or obligations under this Agreement (or any
material duties assigned to Executive consistent with the terms of this Agreement) or abide
by any applicable policy of Employer, or Executive’s breach of any material term or
condition of this Agreement, and continuation of such failure, refusal, neglect, or breach
after written notice and the expiration of a ten (10) day cure period; provided,
however, that it is not the parties’ intention that the Employer shall be required
to provide successive such notices, and in the event Employer has provided Executive with a
notice and opportunity to cure pursuant to this Section 9.3, Employer may terminate
this Agreement for a

 

7

 

subsequent breach similar or related to the breach for which notice
was previously given or for a continuing series or pattern of breaches (whether or not similar or
related) without providing notice and an opportunity to cure; (ii) commission of any felony
or any other crime involving an act of moral turpitude which is harmful to Employer’s
business or reputation; (iii) Executive’s action or omission, or knowing allowance of
actions or omissions, which are in violation of any law or any of the rules or regulations
of the Federal Communications Commission (the “FCC”), or which otherwise jeopardize any of
the licenses granted to Employer or any member of the Emmis Group in connection with the
ownership or operation of any radio or television station; (iv) theft in any amount; (v)
actual or threatened violence against another employee or individual; (vi) sexual or other
prohibited harassment of others; (vii) unauthorized disclosure or use of trade secrets or
proprietary or confidential information, as described more fully in Section 7.1;
(viii) any action which brings Employer or member of the Emmis Group into public disrepute,
contempt, scandal or ridicule, and which is harmful to Employer’s business or reputation;
and (ix) any matter constituting cause or misconduct under applicable laws.

10. Termination of Agreement by Employer for Incapacity.

10.1 Termination. If Executive shall become incapacitated (as defined in the
Employer’s employee handbook or, if that is not applicable, as reasonably determined by
Employer), Employer shall continue to compensate Executive under the terms of this
Agreement without diminution and otherwise without regard to such incapacity or
nonperformance of duties until Executive has been incapacitated for a cumulative period of
six (6) months, at which time Employer may, in its sole discretion, elect to terminate
Executive’s employment. The date that Executive’s employment terminates pursuant to this
section is referred to herein as the “Incapacity Termination Date.”

10.2 Obligations after Termination. Executive shall have no further
obligations or liabilities hereunder after an Incapacity Termination Date except
Executive’s obligations under Section 7 and 8 that shall survive the
termination or expiration of this Agreement. After an Incapacity Termination Date,
Employer shall have no further obligations or liabilities hereunder except that Employer
shall, not later than two (2) weeks after an Incapacity Termination Date, pay to Executive
those amounts described in Section 9.2(ii). Nothing in this Section 10 or
in Section 11 shall affect the amount of any benefits which may be payable to
Executive under any insurance plan or policy maintained by Employer or Executive or
pursuant to any Employer company practice, plan or program applicable to other senior
management level employees of the Emmis Group.

11. Death of Executive. This Agreement shall terminate immediately upon Executive’s
death. In the event of such termination, Employer shall have no further obligations or liabilities
hereunder except that Employer shall, not later than two (2) weeks after Executive’s date of death,
pay or grant to Executive’s estate or designated beneficiary those amounts described in Section
9.2(ii).

 

8

 

12. Severance. Subject to the conditions set forth in this Section 12 and
Exhibit A, in the event that Employer elects not to allow this Agreement to automatically
renew pursuant to Section 2, does not offer Executive employment upon expiration of the
Term on terms substantially similar to those contained herein (which shall include without
limitation a Base Salary that is at least ninety-five percent (95%) of the Base Salary in effect at
expiration of the Term) and Executive’s employment is terminated by Executive or Employer, Employer
shall make a lump sum severance payment to Executive in the amount of $470,000, subject to
applicable taxes and withholdings (the “Severance Payment”) not later than the later of (a) the
fourteenth day of March immediately following Executive’s termination of employment or (b) the date
which is sixty (60) days following Executive’s termination of employment. As a material condition
upon which Executive shall be entitled to receive the Severance Payment, and as an inducement to
Employer’s agreement to pay Executive the Severance Payment, Executive agrees to execute a general
release in a form acceptable to Employer upon the termination of Executive’s full-time employment.
Executive shall not be entitled to any additional severance compensation upon the termination or
expiration of this Agreement other than the Severance Payment. Executive shall not be entitled to
the Severance Payment as otherwise specified in this Agreement or if Executive’s employment is
terminated either (i) by Employer under Section 9, (ii) by reason of Executive’s incapacity
or death under Sections 10 or 11, or (iii) by Executive for any reason other than a
material breach of this Agreement by Employer. In addition, subject to the terms and conditions of
Section 13, upon Executive’s termination of employment pursuant to this Section 12,
Executive shall be entitled to continue his employment with Employer as a part-time employee during
the Post Term Period.

13. Part-Time Employment. If Executive is entitled to the Severance Payment pursuant
to Section 12, Executive shall be entitled to continue his employment with Employer as a
part-time employee, pursuant to the terms and conditions set forth in this Section 13.
Such part-time employment shall commence upon the last day of Executive’s employment upon
termination pursuant to Section 12 and shall end on the earliest of: (i) the fourth (4th)
anniversary of its commencement, (ii) the date Executive secures full-time employment other than
with Employer or any of its “Affiliates” (as defined in Exhibit A), (iii) Executive’s
death, (iv) the date Executive becomes unable to perform the services required by Section
13.3 because of ill health or physical or mental disability as reasonably determined by a
physician selected by Employer, (v) the date thirty (30) days after Executive gives notice to
Employer of his decision to terminate his part-time employment, or (vi) the date Executive ceases
to comply with the provisions of Section 13.3, as reasonably determined by the Board of
Directors of Employer. The term of part-time employment described in the preceding sentence shall
be referred to herein as the “Post Term Period”. In the event Executive elects to continue his
employment as a part-time employee pursuant to this Section 13, the Change in Control
Agreement (Exhibit A hereto) shall become null, void and of no further force and effect as
of the date Executive commences such part-time employment. 

 

9

 

13.1 During each year of the Post Term Period, Employer shall pay to Executive total
annual compensation equal to $132,500 (“Part-Time Compensation”). Part-Time Compensation
shall be paid by Employer in
accordance with Employer’s customary payroll practices. In addition, during the Post
Term Period, Executive and his dependents (as such term is defined in the applicable health
plan of Employer) may continue to participate in Employer’s health plan, to the extent
permitted under the terms of such plan and at the expense of Employer, except for any
premium co-payment or other similar amounts for which Executive would have otherwise been
responsible pursuant to the terms of such plan. In the event that the terms of Employer’s
health plan do not at any time during the Post Term Period permit Executive and/or his
dependents to continue to participate in such plan, Employer shall reimburse Executive for
the cost of securing substantially comparable health care coverage for Executive and his
dependents. During the Post Term Period, no other compensation or benefits shall be
payable or provided by Employer other than those described in this Section 13.

13.2 Any option granted to Executive prior to the Post Term Period under the Plan
(other than any plan intended to qualify under Section 423(b) of the Code and provided that
no provision hereof may supersede the terms of any plan of Employer) shall continue to vest
and become exercisable during the Post Term Period to the extent not already exercisable as
of the first day of the Post Term Period in accordance with the applicable vesting schedule
of each such option, and shall remain outstanding through the earlier of: (a) 30 days
following the last day of the Post Term Period or (b) the last day of the applicable option
term provided under the applicable award agreement pursuant to which each such option was
awarded. Ownership of any Shares granted to Executive (pursuant to Section 4.3 of
this Agreement or otherwise) prior to the Post Term Period shall continue to vest during
the Post Term Period (to the extent not already fully vested as of the first day of the
Post Term Period) in accordance with the vesting schedule applicable to each grant in the
same manner as if Executive remained a full-time employee with Employer continuously
through the expiration of the Post Term Period.

13.3 During the Post Term Period, Executive shall make himself available to Employer
to complete such reasonable projects and assignments as may be assigned to him by the Chief
Executive Officer or Chief Financial Officer/Chief Operating Officer of Employer and/or
Emmis Communications Corporation or any successor in interest thereto. Without limiting
the generality of the foregoing, Executive shall provide consulting services relative to
operations, programming, ratings, personnel and budget. The parties intend that the
transition from full-time to part-time employment shall constitute a “separation from
service” within the meaning of Internal Revenue Code Section 409A(a)(2)(B)(i). Therefore,
notwithstanding anything to the contrary contained herein, in no event will Executive be
required or permitted to provide more than twenty (20) hours of service during any calendar
month pursuant to this Section 13. Subject to the terms and conditions of this
Section 13, Employer shall have no obligation to pay Executive the Part-Time
Compensation for any periods during which Executive fails or refuses to render services
pursuant to this Section 13. Employer shall reimburse Executive for all
reasonable expenses actually

 

10

 

incurred by Executive directly related to the performance of the services contemplated
by this Section 13 upon presentation of expense statements, vouchers or similar
documentation, or such other supporting information as Employer may require of Executive.
In addition, no later than ten (10) days following the first day of the Post Term Period,
Executive shall resign as a director of Employer and each of its Affiliates, as applicable.

13.4 Notwithstanding anything in the Agreement to the contrary, Employer and Executive
hereby agree and acknowledge that solely for purposes of Sections 7 and 8
(Confidential Information; Non-Interference), the Term shall include the Post Term Period.

14. Miscellaneous.

14.1 Governing Law. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the State of Indiana without regard to its conflict
of law principles.

14.2 Section 409A. This Agreement is intended to comply with Internal Revenue
Code Section 409A(a)(2)(B)(i) and the regulations thereunder (collectively, “Section
409A”), and it is intended that no amounts payable hereunder shall be subject to tax under
Section 409A. Employer shall use commercially reasonable efforts to comply with Section
409A with respect to payments of benefits hereunder. To the extent required by Section
409A, if Executive is a “specified employee” for purposes of Section 409A, payments on
account of Executive’s separation from service shall be delayed to the earliest date
permissible under Section 409A. For purposes of this Agreement, “termination of
employment”, “terminates employment”, or any variation of such term shall mean “separation
from service” within the meaning of Section 409A.

14.3 Captions. The section headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of any of the
terms and conditions of this Agreement.

14.4 Entire Agreement. This Agreement shall supersede and replace, in all
respects, any prior employment agreement entered into between the parties, and any such
agreements shall immediately terminate and be of no further force or effect. For purposes
of the preceding sentence, any change in control, restricted stock, option, and other
benefits-related agreement shall not constitute a “prior employment agreement.”

14.5 Assignment. This Agreement, and Executive’s rights and obligations
hereunder, may not be assigned by Executive to any third party; provided,
however, that Executive may designate pursuant to Section 14.7 one (1) or
more beneficiaries to receive any amounts that would otherwise be payable hereunder to
Executive’s estate. Employer may assign all or any portion of its rights and obligations
hereunder to any other member of the Emmis Group or to
any successor or assignee of Employer pursuant to a reorganization, recapitalization,
merger, consolidation, sale of substantially all of the assets or stock of Employer, or
otherwise.

 

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14.6 Amendments; Waivers. Except as expressly provided in the following
sentence, this Agreement cannot be changed, modified or amended, and no provision or
requirement hereof may be waived, without the written consent of Executive and Employer.
Employer may amend this Agreement to the extent that Employer reasonably determines that
such change is necessary to comply with Section 409A and further guidance thereunder,
provided that such change does not reduce the amounts payable to Executive hereunder. The
failure of a party at any time to require performance of any provision hereof shall in no
manner affect the right of such party at a later time to enforce such provision. No waiver
by a party of the breach of any term or covenant contained in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as,
a further or continuing waiver of any such breach or a waiver of the breach of any other
term or covenant contained in this Agreement.

14.7 Beneficiaries. Whenever this Agreement provides for any payment to
Executive’s estate, such payment may be made instead to such beneficiary as Executive may
have designated in a writing filed with Employer. Executive shall have the right to revoke
any such designation and to re-designate a beneficiary by written notice to Employer (or to
any applicable insurance company).

14.8 All notices, requests, consents and other communications, required or permitted
to be given hereunder, shall be made in writing and shall be deemed to have been made as
of: (a) the date that is the next date upon which an overnight delivery service (Federal
Express, UPS or DHL only) will make such delivery, if sent via such overnight delivery
service, first-class, postage prepaid, (b) the date such delivery is made, if delivered in
person to the notice party specified below, or (c) the date such delivery is made, if
delivered via email. Such notice shall be delivered as follows (or to such other or
additional address as either party shall designate by notice in writing to the other in
accordance herewith):

(i) If to Employer:

Emmis Communications Corporation

40 Monument Circle, Suite 700

Indianapolis, Indiana 46204

Attn: Legal Department

With a copy to:

Emmis Communications Corporation

40 Monument Circle, Suite 700

Indianapolis, Indiana 46204

Attn: COO/CFO

 

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(ii) If to Executive, to Executive at Executive’s address in the personnel
records of Employer.

14.9 Change in Fiscal Year. If, at any time during the Term, Employer changes
its fiscal year, Employer shall make such adjustments to the various dates and target
amounts included herein as are necessary or appropriate, provided that no such change shall
affect the date on which any amount is payable hereunder.

14.10 Executive’s Warranty and Indemnity. Executive hereby represents and
warrants that Executive: (i) has the full and unqualified right to enter into and fully
perform this Agreement according to each and every term and condition contained herein;
(ii) has not made any agreement, contractual obligation, or commitment in contravention of
any of the terms and conditions of this Agreement or which would prevent Executive from
performing according to any of the terms and conditions contained herein; and (iii) has not
entered into any agreement with any prior employer or other person, corporation or entity
which would in any way adversely affect Executive’s or Employer’s right to enter into this
Agreement. Furthermore, Executive hereby agrees to fully indemnify and hold harmless
Employer and each of its subsidiaries, affiliates and related entities, and each of their
respective officers, directors, employees, agents, attorneys, shareholders, insurers and
representatives from and against any and all losses, costs, damages, expenses (including
attorneys’ fees and expenses), liabilities and claims, arising from, in connection with, or
in any way related to Executive’s breach of any of the representations or warranties
contained in this Section 14.10.

14.11 Venue. Any action to enforce, challenge or construe the terms or making
of this Agreement or to recover for its breach shall be litigated exclusively in a state
court located in Marion County, Indiana, except that the Employer may elect, at its sole
and absolute discretion, to litigate the action in the county or state where any breach by
Executive occurred or where Executive can be found. Executive acknowledges and agrees that
this venue provision is an essential provision of this Agreement and Executive hereby
waives any defense of lack of personal jurisdiction or improper venue.

14.12 Indemnification. Executive shall be entitled to the benefit of the
indemnification provisions set forth in Employer’s Amended and Restated Articles of
Incorporation and/or By-Laws, or any applicable corporate resolution, as the same may be
amended from time to time during the Term (not including any limiting amendments or
additions, but including any amendments or additions that add to or broaden the protection
afforded to Executive at the time of execution of this Agreement) to the fullest extent
permitted by applicable law. Additionally, Employer shall cause Executive to be
indemnified in accordance with Chapter 37 of the Indiana Business Corporation Law (the
“IBCL”), as the same may be amended from time to time during the Term, to the fullest
extent permitted by the IBCL as required to make Executive whole in connection with

 

13

 

any indemnifiable loss, cost or expense incurred in Executive’s performance of
Executive’s duties and obligations pursuant to this Agreement. Employer shall also
maintain during the Term an insurance policy providing directors’ and officers’ liability
coverage in a commercially reasonable amount. It is understood that the foregoing
indemnification obligations shall survive the expiration or termination of the Term.

14.13 Change in Control. Effective as of January 1, 2008, Executive and Emmis
Communications Corporation have entered into that certain Emmis Communications Corporation
Change in Control Severance Agreement (the “CIC Agreement”) attached hereto as Exhibit
A. In the event of a “Change in Control” (as defined in the CIC Agreement), the rights
and obligations of Executive and Employer shall be set forth in the CIC Agreement.
Notwithstanding the preceding provisions or any provision of Exhibit A, Employer
shall have the right to amend the CIC Agreement to the extent that it reasonably deems such
amendment necessary to comply with the requirements of Section 409A.

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

	 	 	 	 	 
	 	EMMIS OPERATING COMPANY (“Employer”)

 	 
	 	By:  	/s/ Jeffrey H. Smulyan
 	 
	 	 	Jeffrey H. Smulyan 	 
	 	 	Chief Executive Officer 	 
	 
	 	RICHARD F. CUMMINGS

(“Executive”)

 	 
	 	/s/ Richard F. Cummings
 	 
	 	Richard F. Cummings 	 
	 	 	 

 

14

 

	 	 	 	 	 

Exhibit A

Change in Control Agreement

The Emmis Communications Corporation Change in Control Severance Agreement between Emmis
Communications Corporation and Richard F. Cummings effective January 1, 2008 is hereby incorporated
by reference.

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