Document:

exv10w1

 

2005 STOCK COMPENSATION PROGRAM

UNDER THE

EMMIS COMMUNICATIONS CORPORATION

2004 EQUITY COMPENSATION PLAN

	 	 	 
	Section 1.

	 	Introduction and Purpose. To address business conditions, to
further align our employees’ interests with those of our
shareholders and to award stock bonuses to employees, Emmis
Communications Corporation is instituting this 2005 Stock
Compensation Program (the “Program”) under the Emmis
Communications Corporation 2004 Equity Compensation Plan (the
“Plan”).
	 
	 	 
	Section 2.

	 	Award. Pursuant to the authority under the Plan, the
Compensation Committee hereby authorizes and awards, effective
on the first day of the Award Year, Payroll Stock and
Restricted Stock to Participants in accordance with the terms
set forth below (sometimes referred to as the “Award” or
“Awards”).
	 
	 	 
	Section 3.

	 	Definitions.
	 
	 	 
	

	 	“Award Year” means January 1, 2005 through December 31, 2005,
and each calendar year thereafter.
	 
	 	 
	

	 	“Base Restricted Stock Amount” means the dollar amount of the Participant’s
Restricted Stock Participation Percentage equal to or below the Excess Threshold.
	 
	 	 
	

	 	“Board of Directors” means the Board of Directors of Emmis Communications
Corporation.
	 
	 	 
	

	 	“Broker” means NatCity Investments, Inc., or such other organization designated by the
Compensation Committee.
	 
	 	 
	

	 	“Company” means Emmis Communications Corporation.
	 
	 	 
	

	 	“Compensation Committee” means the Compensation Committee of the Board of Directors,
or its designee.
	 
	 	 
	

	 	“Eligible Employee” means (i) each Emmis employee whose estimated Program
Compensation is expected by the Company to equal or exceed $180,000 other than (A)
employees who are subject to an agreement that prohibits the Company from
unilaterally changing the terms of their compensation and employees whose
participation in the Program would violate federal, state or local law and (B)
employees who do not incur a 10% pay cut, and (ii) to the extent the employee agrees
to reduce the cash portion of the employee’s Program Compensation by the value of
any Restricted Stock the employee elects to receive under this Program, (A) each
employee who is subject to an agreement that prohibits the Company

 

 

	 	 	 
	

	 	from unilaterally changing the terms of the employee’s compensation and (B) each
employee who is subject to a collective bargaining agreement that permits
participation in this Program.
	 
	 	 
	

	 	“Emmis” means Emmis Communications Corporation and its Subsidiaries, as defined by
the Plan, that are generally included in its United States’ payroll system.
	 
	 	 
	

	 	“Emmis Stock”, “Share” or “Stock” means the Class A Common Stock of Emmis
Communications Corporation, except in the case of grants to Jeffrey H. Smulyan,
“Emmis Stock” means the Class B Common Stock of Emmis Communications Corporation.
	 
	 	 
	

	 	“Enrollment Period” means (A) for Restricted Stock Awards, the period ending
December 1, 2004 or such later date before the beginning of the Award Year as shall
be determined by the Company’s officers and (B) for Payroll Stock Awards, any date
before the end of the Award Year.
	 
	 	 
	

	 	“Estimated Sale Proceeds” means the estimated sales proceeds of Payroll Stock
determined by Emmis using the VWAP on the date of issuance.
	 
	 	 
	

	 	“Excess Restricted Stock Amount” means the dollar amount of the Participant’s
Restricted Stock Participation Percentage in excess of the Excess Threshold.
	 
	 	 
	

	 	“Excess Threshold” means 5% of a Participant’s Program Compensation for such Award
Year.
	 
	 	 
	

	 	“Initial Value” means the lower of (i) the VWAP on November 1, 2004 and (ii) the
VWAP on the first trading day immediately preceding the beginning of the Award Year
or (iii) the average VWAP during the first 45 days of that Award Year.
	 
	 	 
	

	 	“Participant” means an Eligible Employee that receives an Award under this Program.
	 
	 	 
	

	 	“Pay Period Compensation” means a Participant’s Program Compensation attributable to
a particular pay period.
	 
	 	 
	

	 	“Payroll Stock” or “Payroll Share” means the award of Emmis Stock issued pursuant to
Section 5.
	 
	 	 
	

	 	“Payroll Stock Percentage” means (i) for an Eligible Employee specified in item (i)
of the definition of Eligible Employee, 10% of Participant’s Program Compensation
plus any additional amount of Program Compensation the Participant has elected to
receive as Payroll Stock, less the amount of any Program Compensation that the
Participant has elected to receive as Restricted

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	 	Stock, and (ii) for an Eligible Employee specified in item (ii) of the definition of
Eligible Employee, the amount of Program Compensation the Participant elects to
receive as Payroll Stock.
	 
	 	 
	

	 	“Plan” means the 2004 Equity Compensation Plan sponsored by the Company.
	 
	 	 
	

	 	“Program” means this 2005 Stock Compensation Program.
	 
	 	 
	

	 	“Program Compensation” means for each Participant the amount determined by Emmis
based on the Participant’s cash compensation, the value of Payroll Stock and
Restricted Stock awarded under this Program during the Award Year or payroll period
by a Participant, and any amount deferred under a deferred compensation plan or
cafeteria plan. Program Compensation shall exclude auto allowances and bonuses or
other amounts that Emmis excludes from regular bi-weekly payroll.
	 
	 	 
	

	 	“Restricted Stock” means the award of Stock issued under Section 7.
	 
	 	 
	

	 	“Restricted Stock Participation Percentage” means the Program Compensation amount
that a Participant elects to forego for the Award Year under Section 7. If the
Enrollment Period for Restricted Stock Awards in the Award Year ends in the middle
of a pay period, the Restricted Stock Participation Percentage for such pay period
shall only apply to the Program Compensation for such pay period attributable to the
period after the expiration of the Enrollment Period, but shall be appropriately
increased so that the dollar amount that the Restricted Stock Participation
Percentage yields, when multiplied by such Program Compensation, the dollar amount
that the unadjusted Restricted Stock Participation Percentage would have yielded
when multiplied by the Program Compensation for the full payroll period.
	 
	 	 
	

	 	“Salaried Participants” means Payroll Stock Participants whose bi-weekly Program
Compensation typically remains the same from pay period to pay period.
	 
	 	 
	

	 	“Securities Trading Policy” means the policy established by the Board of Directors
of the Company from time to time that specifies, among other things, the times when
an Emmis employee may buy or sell Emmis Stock.
	 
	 	 
	

	 	“VWAP” means the Volume Weighted Average Price per share of Emmis Stock as of the
end of a trading day as calculated by Bloomberg, L.P. or such other organization
designated by the Company; provided, however, that if there are no shares of Emmis
Stock traded on the NASDAQ/NMS on such date, the VWAP shall mean the volume weighted
average price per share of Emmis Stock as of the end of the previous trading day on
which shares of Emmis Stock were traded on the NASDAQ/NMS.

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	Section 4.

	 	Participation and Enrollment.

	 	(a)	 	Participation. Each Eligible Employee that
participates in this Program may elect to receive Emmis Stock in the form of
Payroll Stock or Restricted Stock; provided, however, that approval of the
Participant’s Division President (or the Company’s CFO in the case of Corporate
Participants) is required before a Participant who is employed by Emmis prior
to December 1, 2004 is permitted to receive Payroll Stock. Notwithstanding the
foregoing, officers of the Company who have been designated “Section 16
Officers” by the Board of Directors may only elect to receive Restricted Stock.
	 
	 	(b)	 	Enrollment. If an Eligible Employee completes the
enrollment process within the Enrollment Period, that employee shall become a
Participant in the Program on the later of the first day of the Award Year or
the first payroll period following timely completion of the enrollment process.
An Eligible Employee shall only become a Participant upon the completion of
any forms or actions required by the Compensation Committee, including, but
not limited to:

	 	(i)	 	Enrollment Form (required for participation in
the Program);
	 
	 	(ii)	 	Broker Account Forms (required for
participation in the Program);
	 
	 	(iii)	 	W-9 Form (required for participation in the
Program);
	 
	 	(iv)	 	Restricted Stock Agreement (required for
Restricted Stock Awards).

All forms required for participation in the Program, together with this
Program, shall constitute an “Award Agreement” under the Plan.

	 	(c)	 	Designated Broker. Notwithstanding anything to the
contrary contained in the Program, a Participant must use the Broker designated
by the Company to receive Payroll Stock under this Program.
	 
	 	(d)	 	Maximum Participation Amount. At no point may the cash
compensation portion of a Participant’s Pay Period Compensation be less than
the minimum wage established by any governmental entity from time to time. In
addition, the Company may establish other maximum participation amounts from
time to time and will generally require that the cash compensation of each
Participant’s Pay Period Compensation not be less than the amount necessary to
fund all tax, garnishment or other required withholdings, 401(k), Section 125,
health insurance and other employee benefit plan contributions elected by or
required of the Participant, and any other items withheld by the Company from a
participant’s paycheck.

	 	 	 
	Section 5.

	 	Payroll Stock.

	 	(a)	 	Payroll Stock Award. Each Participant shall be awarded
at the beginning of each pay period a number of Payroll Shares equal to:

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          (A x B) / C, where

A equals Pay Period Compensation,

B equals Payroll Stock Percentage; and

C equals the VWAP on the day the Participant’s Payroll Stock is issued.

	 	 	 	Pursuant to the authority under the Plan, (i) the purchase price for Payroll
Stock under this Program shall be zero ($0), (ii) while Awards of Payroll
Stock are made at the beginning of each pay period, they will vest ratably
over the pay period and all Payroll Stock will be subject to forfeiture
until vested, (iii) after vesting, the Payroll Stock shall be issued without
restriction as to resale, and (iv) no Participant may use Payroll Stock for
“Share Withholding” under Section 17 of the Plan.
	 
	 	(b)	 	Issuance of Shares.

	 	(i)	 	Payroll Stock shall be issued to Participants
on one or more days selected by officers of the Company during the week
paychecks are issued.
	 
	 	(ii)	 	Emmis may change the issuance date for any
person or groups of persons without prior notice at any time for any
reason. Additionally, if the Program Compensation for a Salaried
Participant changes in any pay period, Emmis reserves the right to
issue Payroll Stock for that pay period based upon the Participant’s
typical Program Compensation and to issue more or less Payroll Stock,
as appropriate, during one or more following pay periods.

	 	(c)	 	Receipt of Shares. Each Participant will have any
Payroll Stock issued to the Participant for each pay period deposited into an
individual brokerage account with the Broker. Emmis will withhold from any
cash portion of the Participant’s paycheck for such pay period any taxes
attributable to such Payroll Stock and required to be withheld by Emmis. So
long as a Participant is not in possession of material non-public information
and the Securities Trading Policy does not prohibit the Participant from buying
or selling Emmis Stock, the Participant may sell the Payroll Shares at any
time.
	 
	 	(c)	 	Example. Assume a Participant has Program Compensation
of $30,000 and has a Payroll Stock Percentage of 10%, the Participant’s
annualized cash compensation would be $27,000 and the Participant would also
receive $3,000 in Payroll Stock over the course of the Award Year.

	 	 	 
	Section 6.

	 	Intentionally Omitted.
	 
	 	 
	Section 7.

	 	Restricted Stock.

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	 	(a)	 	Restricted Stock Agreement. During the Enrollment
Period, a Participant may elect to enter into a Restricted Stock Agreement
providing for the issuance of Restricted Stock to the Participant after the
Award Year. Subject to the terms of the Restricted Stock Agreement, the number
of shares of Restricted Stock to be issued to the Participant will equal the
sum of Shares determined under Subsection 7(b) and, if applicable, Subsection
7(c). Such Restricted Stock will be issued in one or more lots or in another
manner designed by the Company to minimize an adverse impact of such issuance
on the trading price of the stock, as soon as administratively practicable
after the end of the Award Year. So long as a Participant is not in possession
of material non-public information and the Securities Trading Policy does not
prohibit the Participant from buying or selling Emmis Stock, the Participant
may sell the Restricted Stock upon receiving a certificate for the stock or
having the stock deposited in Participant’s account with the Broker after the
end of the Award Year. Pursuant to the authority under the Plan, the purchase
price for Restricted Stock under this Program shall be zero ($0) and the
Restricted Stock shall be issued without restriction as to resale.

	 	(b)	 	Base. The number of Shares of Restricted Stock awarded
under this Subsection shall equal the Base Restricted Stock Amount divided by
90% of the Initial Value. The actual number of Shares will be rounded up to
the nearest full share.

	 	(c)	 	Excess. The number of Shares of Restricted Stock
awarded under this Subsection shall equal the Excess Restricted Stock Amount
divided by 80% of the Initial Value. The actual number of Shares will be
rounded up to the nearest full share.

	 	(d)	 	Example. Assume a Participant has Program Compensation
of $30,000 and has elected a Restricted Stock Participation Percentage of 10%
(i.e., $3,000). The Participant’s Base Restricted Stock Amount would be $1,500
(5% of $30,000) and the Excess Restricted Stock Amount would be $1,500 (all
amounts over 5% of $30,000) for a total of $3,000. Now assume the Initial
Value is $20. The Participant would receive the following Shares after the
end of the Award Year:

	 	 	 
	Base

	 	$1,500/(90% X $20) = 83.33 Shares
	Excess

	 	$1,500/(80% X $20) = 93.75 Shares

	 	 	 	Because the Base Shares are rounded to 84 and 94 Shares, the Participant
would receive a total of 188 Shares after the end of the Award Year.
	 
	 	(e)	 	Forfeiture.

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	 	(i)	 	A Participant shall forfeit any and all rights
under this Section 7 and the Company shall not issue any Restricted
Stock hereunder if the Participant voluntarily terminates employment
with Emmis or is terminated by Emmis for Cause (as defined below) prior
to the last day of the Award Year. In all other terminations of
employment, the number of Shares of Restricted Stock that Emmis will
issue to the Participant will be prorated for the portion of the Award
Year that Emmis employed the Participant. If a Participant ceases to
be employed by Emmis for any reason other than voluntary termination or
Cause, Emmis will deliver to the Participant or, in the event of death,
the Participant’s estate, a certificate for the prorated Shares of
Emmis Stock promptly after the Participant or estate pays Emmis any
applicable taxes and other withholdings as required by law.
	 
	 	(ii)	 	Solely for purposes of grants of Restricted
Stock under this Program, “Cause” means the conviction of the
Participant of (or the admission by the Participant of the commission
of ) any felony or other crime involving dishonesty, fraud or moral
turpitude, or the Participant’s habitual neglect of duties; provided
that in either event, the action involved must have had a detrimental
effect on Emmis.
	 
	 	(iii)	 	During the Enrollment Period, a Participant
who has elected to receive Restricted Stock may further elect the “Tax
Vesting Option” as set forth in this paragraph. If a Participant
elects the Tax Vesting Option, such Participant shall be issued, within
60 business days from the commencement of the Award Year, Restricted
Stock in accordance with Subsection 7(b) and 7(c) above based upon the
Participant’s estimated Program Compensation for the Award Year,
subject to the following:

     A. On the first day of each pay period for which a paycheck is
issued during the Award Year, a portion of the Participant’s
Restricted Stock shall vest and not be subject to the forfeiture
provisions set forth in 7(e)(i). The amount of Restricted Stock that
vests each pay period shall equal the Participant’s Pay Period
Compensation divided by the Initial Value. If a Participant’s actual
Program Compensation for the Award Year exceeds the estimated Program
Compensation, Emmis will issue additional Restricted Stock to the
Participant in accordance with Subsection 7(b) and 7(c) within 30
days after the end of the Award Year. If a Participant’s actual
Program Compensation for the Award Year is less than the estimated
Program Compensation, the Participant will forfeit any Restricted
Stock not previously vested under this Subsection.

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     B. The Company shall hold all Restricted Stock issued to the
Participant during the Award Year and the Participant may not offer
any vested Restricted Stock for sale until after the end of the Award
Year or termination of employment.

     C. The Participant must execute a stock power authorizing the
Company to transfer all unvested Restricted Shares to the Company
upon termination of employment.

     D. Notwithstanding the foregoing, in the event the Participant
is terminated for Cause, all Restricted Shares shall be forfeited.

     E. For purposes of determining the amount of Restricted Stock in
which a Participant is vested upon a termination of employment (other
than for Cause) within the first 44 business days of an Award Year,
the Company shall use only the VWAP on the applicable date under
clause (i) of the definition of Initial Value.

     F. Each pay period Emmis will include the portion of the
Participant’s Restricted Stock that vested as non-cash compensation
and will withhold taxes on that amount from the cash portion of the
Participant’s paycheck. To the extent that these withholdings are
less than required by law, Emmis may from time to time withhold
additional amounts to meet its legal obligations.

     G. Emmis will deliver to the Participant or, in the event of
death, the Participant’s estate, a certificate for the vested
Restricted Stock promptly after the Participant or estate pays Emmis
any additional applicable taxes and other withholdings as required by
law.

	 	 	 
	Section 8.

	 	Incorporation of Equity Compensation Plan by Reference. The
adoption of this Program is not an amendment to the Plan.
Instead, it represents the exercise of discretionary authority
of the Compensation Committee to make “Awards” of “Restricted
Stock” under the Plan by setting forth in advance the terms and
conditions under which certain “Awards” will be made under the
Plan. All of the terms and conditions of the Plan are
incorporated by reference in this Program and each Award
hereunder
	 
	 	 
	Section 9.

	 	Miscellaneous.

	 	(a)	 	Administration. The Compensation Committee and its
designee have the express authority under this Program to:

	 	(i)	 	carry out the general administration of the Program;
	 
	 	(ii)	 	cause to be prepared all forms necessary or appropriate for the administration of
the Program;
	 
	 	(iii)	 	keep appropriate books and records;
	 
	 	(iv)	 	determine amounts to be disbursed to
Participants and others under the provisions of the Program;

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	 	(v)	 	determine, consistent with the provisions of
this instrument and the Plan, all questions of eligibility, rights, and
status of Participants and others under this Program; and
	 
	 	(vi)	 	interpret, with discretionary authority, the
provisions of this Program and to resolve, with discretionary
authority, all disputed questions of Program interpretation and benefit
eligibility, consistent with the terms of the applicable Plan;

	 	(b)	 	Relationship. Notwithstanding any other provision of
this Program, this Program and action taken pursuant to it shall not be deemed
or construed to establish a trust or fiduciary relationship of any kind between
or among Emmis, the Participant, or any other persons.
	 
	 	(c)	 	Tax Withholding. The Company may withhold from any
payment due hereunder any taxes required to be withheld under applicable
federal, state, or local tax laws or regulations.
	 
	 	(d)	 	Tax Liability. The Company does not expressly or
impliedly guarantee any federal, state or local tax consequences of
participation in the Program.
	 
	 	(e)	 	Amendment. The Compensation Committee reserves the
right to amend the Program at any time as it deems appropriate in its sole
discretion. No amendment shall reduce any benefits accrued under the Program
prior to the date the amendment was duly authorized.
	 
	 	(f)	 	Termination. The Compensation Committee reserves the
right to terminate the Program at any time as it deems appropriate in its sole
discretion.

9exv10w2

 

2005 OUTSIDE DIRECTOR STOCK COMPENSATION PROGRAM

UNDER THE

EMMIS COMMUNICATIONS CORPORATION

2004 EQUITY COMPENSATION PLAN

	 	 	 
	Section 1.

	 	Introduction and Purpose. To address business conditions and
to further align our directors’ interests with those of our
shareholders Emmis Communications Corporation is instituting
this 2005 Outside Director Stock Compensation Program (the
“Program”) under the Emmis Communications Corporation 2004
Equity Compensation Plan (the “Plan”).
	 
	 	 
	Section 2.

	 	Award. Pursuant to the authority under the Plan, the Board of
Directors hereby authorizes and awards, effective on the first
business day after the end of the Award Year, Restricted Stock
to Participants in accordance with the terms set forth below
(sometimes referred to as the “Award” or “Awards”).
	 
	 	 
	Section 3.

	 	Definitions.
	 
	 	 
	

	 	“Award Year” means January 1, 2005 through December 31, 2005,
and each calendar year thereafter.
	 
	 	 
	

	 	“Board of Directors” means the Board of Directors of Emmis Communications
Corporation.
	 
	 	 
	

	 	“Company” means Emmis Communications Corporation.
	 
	 	 
	

	 	“Director” means a person who is a member of the Board of Directors.
	 
	 	 
	

	 	“Emmis” means Emmis Communications Corporation and its Subsidiaries, as defined by
the Plan, that are generally included in its United States’ payroll system.
	 
	 	 
	

	 	“Emmis Stock”, “Share” or “Stock” means the Class A Common Stock of Emmis
Communications Corporation.
	 
	 	 
	

	 	“Initial Value” means the lower of (i) the VWAP on November 1, 2004 and (ii) the
VWAP on the first trading day immediately preceding the beginning of the Award Year
or (iii) the average VWAP during the first 45 days of that Award Year.
	 
	 	 
	

	 	“Participant” means a Director who is not an employee of the Company or its
subsidiaries.
	 
	 	 
	

	 	“Plan” means the 2004 Equity Compensation Plan sponsored by the Company.
	 
	 	 
	

	 	“Program” means this 2005 Outside Director Stock Compensation Program.

 

 

	 	 	 
	

	 	“Program Compensation” means the sum of all directors fees payable to each
Participant during the Award Year in accordance with outside director compensation
policies in effect from time to time.
	 
	 	 
	

	 	“Restricted Stock” means the award of Stock issued under this Program.
	 
	 	 
	

	 	“Securities Trading Policy” means the policy established by the Board of Directors
of the Company from time to time that specifies, among other things, the times when
an Emmis employee may buy or sell Emmis Stock.
	 
	 	 
	

	 	“VWAP” means the Volume Weighted Average Price per share of Emmis Stock as of the
end of a trading day as calculated by Bloomberg, L.P. or such other organization
designated by the Company; provided, however, that if there are no shares of Emmis
Stock traded on the NASDAQ/NMS on such date, the VWAP shall mean the volume weighted
average price per share of Emmis Stock as of the end of the previous trading day on
which shares of Emmis Stock were traded on the NASDAQ/NMS.
	 
	 	 
	Section 4.

	 	Restricted Stock.

	 	(a)	 	Restricted Stock Agreement. Each Participant will
receive a Restricted Stock Agreement providing for the issuance of Restricted
Stock to the Participant after the end of the Award Year. Subject to the terms
of the Restricted Stock Agreement, the number of shares of Restricted Stock to
be issued to the Participant will equal the sum of Shares determined under
Subsection 4(b). Such Restricted Stock will be issued as soon as
administratively practicable after the end of the Award Year. So long as a
Participant is not in possession of material non-public information and the
Securities Trading Policy does not prohibit the Participant from buying or
selling Emmis Stock, the Participant may sell the Restricted Stock upon
issuance after the end of the Award Year. Pursuant to the authority under the
Plan, the purchase price for Restricted Stock under this Program shall be zero
($0) and the Restricted Stock shall be issued with the restriction that the
Restricted Stock may not be used for “Share Withholding” under Section 17(a) of
the Plan, and without restriction as to resale.
	 
	 	(b)	 	Number of Shares. The number of Shares of Restricted
Stock awarded to a Participant under this Section shall equal the Participant’s
Program Compensation for the Award Year divided by the Initial Value, provided
that if the Participant has attended, in person or by phone, at least 75% of
all of the meetings of the Board of Directors and of any Board of Directors’
Committees on which the Participant serves, the Participant’s Program
Compensation shall be divided by 80% of the Initial Value. The actual number
of Shares will be rounded up to the nearest full share.

2

 

	 	(c)	 	Forfeiture.

	 	(i)	 	A Participant shall forfeit any and all rights
under this Section and the Company shall not issue any Restricted Stock
hereunder if the Participant is removed for Cause from the Board of
Directors prior to the last day of the applicable Award Year. In all
other cases in which the Participant ceases to be a Director, the
number of Shares of Restricted Stock that Emmis will issue to the
Participant will be prorated based on the number of meetings during the
Award Year attended prior to the date the Participant ceased to be a
Director. If a Participant ceases to be a Director for any reason
other than removal for Cause, Emmis will deliver to the Participant or,
in the event of death, the Participant’s estate, a certificate for the
prorated Shares of Emmis Stock promptly after the Participant, or the
Participant’s estate, pays Emmis any applicable taxes and other
withholdings as required by law.
	 
	 	(ii)	 	Solely for purposes of grants of Restricted
Stock under this Program, “Cause” means the conviction of the
Participant of (or the admission by the Participant of the commission
of ) any felony or other crime involving dishonesty, fraud or moral
turpitude, or the Participant’s habitual neglect of duties; provided
that in either event, the action involved must have had a detrimental
effect on Emmis.

	 	 	 
	Section 5.

	 	Incorporation of Equity Incentive Plan by Reference. The
adoption of this Program is not an amendment to the Plan.
Instead, it represents the exercise of discretionary authority
of the Board of Directors to make “Awards” of “Restricted
Stock” under Section 8 of the Plan by setting forth the terms
and conditions under which certain “Awards” are made under the
Plan. All of the terms and conditions of the Plan are
incorporated by reference in this Program and each Award
hereunder
	 
	 	 
	Section 6.

	 	Miscellaneous.

	 	(a)	 	Administration. The Compensation Committee of the
Board of Directors or its designee have the express authority under this
Program to:

	 	(i)	 	carry out the general administration of the Program;
	 
	 	(ii)	 	cause to be prepared all forms necessary or appropriate for the administration of
the Program;
	 
	 	(iii)	 	keep appropriate books and records;
	 
	 	(iv)	 	determine amounts to be disbursed to
Participants and others under the provisions of the Program;
	 
	 	(v)	 	determine, consistent with the provisions of
this instrument and the Plan, all questions of eligibility, rights, and
status of Participants and others under this Program; and

3

 

	 	(vi)	 	interpret, with discretionary authority, the
provisions of this Program and to resolve, with discretionary
authority, all disputed questions of Program interpretation and benefit
eligibility, consistent with the terms of the applicable Plan;

	 	(b)	 	Relationship. Notwithstanding any other provision of
this Program, this Program and action taken pursuant to it shall not be deemed
or construed to establish a trust or fiduciary relationship of any kind between
or among Emmis, the Participant, or any other persons.
	 
	 	(c)	 	Tax Withholding. The Company may withhold from any
payment due hereunder any taxes required to be withheld under applicable
federal, state, or local tax laws or regulations.
	 
	 	(d)	 	Tax Liability. The Company does not expressly or
impliedly guarantee any federal, state or local tax consequences of
participation in the Program.
	 
	 	(e)	 	Amendment. The Board of Directors reserves to itself
and the Compensation Committee thereof, singly, the right to amend the Program
at any time as it deems appropriate in its sole discretion. No amendment shall
reduce any benefits accrued under the Program prior to the date the amendment
was duly authorized.
	 
	 	(f)	 	Termination. The Board of Directors reserves to itself
and the Compensation Committee thereof, singly, the right to terminate the
Program at any time as it deems appropriate in its sole discretion.

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