Document:

exv10w2

 

EMPLOYEE MATTERS AGREEMENT

by and between

BELO CORP.

and

A. H. BELO CORPORATION

Dated as of February 8, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 Definitions and Interpretation
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 General Interpretive Principles
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 General Principles
	 	 	4	 
	 
	 	 	 	 
	2.1 Employment After the Distribution
	 	 	4	 
	2.2 Compliance with Employment Laws
	 	 	5	 
	2.3 Employee Records
	 	 	6	 
	2.4 Assumption and Retention of Liabilities
	 	 	6	 
	2.5 Newspaper Holdco Participation in Belo Benefit Plans
	 	 	7	 
	2.6 Service Credit
	 	 	8	 
	2.7 Participant Elections and Beneficiary Designations
	 	 	8	 
	2.8 Cooperation
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 3 Retirement Plans
	 	 	9	 
	 
	 	 	 	 
	3.1 The G. B. Dealey Retirement Pension Plan
	 	 	9	 
	3.2 Savings Plans
	 	 	9	 
	3.3 Pension Transition Supplement Plan
	 	 	10	 
	3.4 Nonqualified Deferred Compensation Plans
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4 Welfare Benefit Plans
	 	 	11	 
	 
	 	 	 	 
	4.1 Establishment of Newspaper Holdco Welfare Benefit Plans
	 	 	11	 
	4.2 Treatment of Claims Incurred
	 	 	11	 
	4.3 Credit for Co-Pays and Deductibles
	 	 	11	 
	4.4 COBRA
	 	 	12	 
	4.5 Third Party Contracts
	 	 	12	 
	4.6 Flexible Spending Account Benefit Plan
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5 Incentive Awards
	 	 	13	 
	 
	 	 	 	 
	5.1 Stock Options
	 	 	13	 
	5.2 Restricted Stock Units
	 	 	13	 
	5.3 Responsibility for Tax Withholding and Reporting
	 	 	14	 
	5.4 Approval and Terms of New Newspaper Holdco Awards
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6 Miscellaneous
	 	 	14	 
	 
	 	 	 	 
	6.1 Amendment and Termination of Benefit Plans
	 	 	14	 
	6.2 Complete Agreement; Representations
	 	 	15	 
	6.3 Costs and Expenses
	 	 	15	 
	6.4 Governing Law
	 	 	15	 
	6.5 Notices
	 	 	15	 
	6.6 Amendment, Modification or Waiver
	 	 	16	 
	6.7 No Assignment; Binding Effect; No Third-Party Beneficiaries
	 	 	16	 
	6.8 Counterparts
	 	 	17	 
	6.9 Negotiation
	 	 	17	 
	6.10 Specific Performance
	 	 	17	 

 

 

	 	 	 	 	 
	 	 	Page
	6.11 Texas Forum
	 	 	17	 
	6.12 Interpretation; Conflict With Distribution Agreement
	 	 	18	 
	6.13 Severability
	 	 	18	 
	6.14 Effectiveness of the Agreement
	 	 	18	 

ii

 

EMPLOYEE MATTERS AGREEMENT

     This Employee Matters Agreement (this “Agreement”), dated as of February 8, 2008, is
entered into by and between Belo Corp., a Delaware corporation (“Belo”), and A. H. Belo
Corporation, a Delaware corporation (“Newspaper Holdco”).

RECITALS

     WHEREAS, Belo and Newspaper Holdco have entered into a Separation and Distribution Agreement
dated as of the date hereof (the “Distribution Agreement”) providing for, among other
things, the distribution by Belo to its shareholders of all of the outstanding shares of Series A
common stock and Series B common stock of Newspaper Holdco; and

     WHEREAS, Belo and Newspaper Holdco wish to set forth their agreement as to certain employee,
benefit and compensation matters in connection with the transactions contemplated by the
Distribution Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and the
Distribution Agreement, Belo and Newspaper Holdco agree as follows:

ARTICLE 1

DEFINITIONS AND INTERPRETATION

     1.1 Definitions. Unless otherwise defined in this Agreement, capitalized words and phrases
used in this Agreement have the meanings set forth below. Capitalized terms used in this Agreement
and not otherwise defined will have the meanings set forth in the Distribution Agreement.

     Action has the meaning given that term in the Distribution Agreement.

     Affiliate has the meaning given that term in the Distribution Agreement.

     Agreement means this Employee Matters Agreement.

     Ancillary Agreement has the meaning given that term in the Distribution Agreement.

     Belo has the meaning set forth in the preamble to this Agreement.

     Belo Employee has the meaning set forth in Section 2.1(a).

     Belo Group has the meaning given that term in the Distribution Agreement.

     Belo Post-Distribution Stock Value means (i) if the Series A Belo Common Stock is trading in
the “ex-distribution” market on the NYSE on the Distribution Date, the per share closing price of
the Series A Belo Common Stock in such market on the Distribution Date; and (ii) if the Series A
Belo Common Stock is not trading in the “ex-distribution” market on the NYSE on the Distribution
Date, the per share opening price of the Series A Belo Common Stock on the NYSE on the first
trading day following the Distribution Date.

 

 

     Belo Pre-Distribution Stock Value means the per share closing price of Series A Belo Common
Stock in the “regular way” market on the NYSE on the Distribution Date.

     Belo Stock Option means an option issued by Belo to purchase shares of Series B Belo Common
Stock.

     Benefit Plan means (i) each “employee welfare benefit plan” as defined in Section 3(1) of
ERISA, (ii) each “employee pension benefit plan” as defined in Section 3(2) of ERISA and (iii) each
other employee benefit plan, arrangement, policy or payroll practice (including sick leave,
vacation pay, salary continuation, disability, retirement, deferred compensation, bonus, stock
option or other equity-based compensation, hospitalization, medical insurance or life insurance).
The term Belo Benefit Plan means a Benefit Plan sponsored, maintained, contributed to or required
to be contributed to by Belo or a member of the Belo Group, and the term Newspaper Holdco Benefit
Plan means a Benefit Plan (other than a Belo Benefit Plan) sponsored, maintained, contributed to or
required to be contributed to by Newspaper Holdco or a member of the Newspaper Holdco Group.

     COBRA means the continuation coverage requirements for “group health plans” as set forth in
Section 4980B of the Code and Sections 601 through 608 of ERISA.

     Code means the Internal Revenue Code of 1986, as amended, or any successor federal tax law.
Reference to a specific Code provision also includes any proposed, temporary or final regulation in
force under that provision.

     Distribution Agreement has the meaning set forth in the recitals to this Agreement.

     Distribution Date has the meaning given that term in the Distribution Agreement.

     Effective Time has the meaning given that term in the Distribution Agreement.

     Equity Adjustment Ratio means 0.20.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended. Reference to a
specific provision of ERISA also includes any proposed, temporary or final regulation in force
under that provision.

     Former Belo Employee means any individual who as of the Effective Time is a former employee of
a member of the Belo Group or a member of the Newspaper Holdco Group and whose last employment with
the Belo Group or the Newspaper Holdco Group was with a member of the Belo Group. For the
avoidance of doubt, the corporate employees of Belo prior to the Effective Time who are named or
described in Section 2.1(b) are, for purposes of this Agreement, Newspaper Holdco Employees and not
Former Belo Employees.

     Former Newspaper Holdco Employee means any individual who as of the Effective Time is a former
employee of a member of the Belo Group or a member of the Newspaper Holdco Group and whose last
employment with the Belo Group or the Newspaper Holdco Group was with a member of the Newspaper
Holdco Group.

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     Law has the meaning given that term in the Distribution Agreement.

     Liabilities has the meaning given that term in the Distribution Agreement.

     Loss has the meaning given that term in the Distribution Agreement.

     Newspaper Holdco has the meaning set forth in the preamble to this Agreement.

     Newspaper Holdco Employee has the meaning set forth in Section 2.1(b).

     Newspaper Holdco Group has the meaning given that term in the Distribution Agreement.

     Newspaper Holdco Stock Option means an option issued by Newspaper Holdco pursuant to
Section 5.1(b).

     Newspaper Holdco Stock Value means (i) if the Series A Newspaper Holdco Common Stock is
trading in the “when-issued” market on the NYSE on the Distribution Date, the per share closing
price of the Series A Newspaper Holdco Common Stock in such market on the Distribution Date; and
(ii) if the Series A Newspaper Holdco Common Stock is not trading in the “when-issued” market on
the NYSE on the Distribution Date, the per share opening price of the Series A Newspaper Holdco
Common Stock on the NYSE on the first trading day following the Distribution Date.

     NYSE has the meaning given that term in the Distribution Agreement.

     Option Conversion Ratio means with respect to each Belo Stock Option outstanding on the
Distribution Date the quotient determined by dividing (i) the exercise price of such Belo Stock
Option by (ii) the Belo Pre-Distribution Stock Value.

     Parties has the meaning given that term in the Distribution Agreement.

     Person has the meaning given that term in the Distribution Agreement.

     Restricted Stock Unit means a right issued by Belo or Newspaper Holdco representing a
contractual entitlement to one share of Series A common stock of the issuer.

     Series A Belo Common Stock has the meaning given that term in the Distribution Agreement.

     Series A Newspaper Holdco Common Stock has the meaning given that term in the Distribution
Agreement.

     Series B Belo Common Stock has the meaning given that term in the Distribution Agreement.

     Series B Newspaper Holdco Common Stock has the meaning given that term in the Distribution
Agreement.

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     Subsidiary has the meaning given that term in the Distribution Agreement.

     Transferred Belo Employee has the meaning set forth in Section 2.6(b)(i).

     Transferred Newspaper Holdco Employee has the meaning set forth in Section 2.6(b)(ii).

     1.2 General Interpretive Principles. In this Agreement, unless the context clearly indicates
otherwise:

          (i) words used in the singular include the plural and words used in the plural include
the singular;

          (ii) references to any Person include such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by this Agreement, and a
reference to such Person’s Affiliates or Subsidiaries will be deemed to mean such Person’s
Affiliates or Subsidiaries following the Distribution;

          (iii) references to any gender include the other gender;

          (iv) the words “include,” “includes” and “including” will be deemed to be followed by
the words “without limitation”;

          (v) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import
will be deemed references to this Agreement as a whole and not to any particular Section or
other provision of this Agreement;

          (vi) references to any Law mean such Law (including all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part,
and in effect at the time of determining compliance or applicability;

          (vii) any portion of this Agreement obligating a Party to take any action or refrain
from taking any action, as the case may be, will mean that such Party will also be obligated
to cause its relevant Affiliates to take such action or refrain from taking such action, as
the case may be; and

          (viii) unless the context requires otherwise, references in this Agreement to “Belo”
will be deemed to refer to the applicable member of the Belo Group and to “Newspaper Holdco”
will be deemed to refer to the applicable member of the Newspaper Holdco Group.

ARTICLE 2

GENERAL PRINCIPLES

     2.1 Employment After the Distribution.

          (a) Belo Employees. Each individual who, immediately prior to the Effective Time, is
actively employed by a member of the Belo Group (a “Belo Employee”) will

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continue to be an employee of such Belo Group member immediately after the Effective Time.
Belo will honor any legal right of any Belo Employee or Former Belo Employee in a leave or other
non-working status to return to work by providing such employee or former employee employment on
terms that comply with such right.

          (b) Newspaper Holdco Employees. Each individual who, immediately prior to the Effective
Time, is actively employed by a member of the Newspaper Holdco Group (a “Newspaper Holdco
Employee”) will continue to be an employee of such Newspaper Holdco Group member immediately
after the Effective Time. For the avoidance of doubt, the term “Newspaper Holdco Employee”
includes the following corporate employees of Belo and any other corporate employee of Belo who
transfers employment to Newspaper Holdco or another member of the Newspaper Holdco Group at or
prior to the Effective Time in connection with the Distribution: Robert W. Decherd, Donald F.
Cass, Jr., Alison K. Engel and Daniel J. Blizzard. Newspaper Holdco will honor any legal right of
any Newspaper Holdco Employee or Former Newspaper Holdco Employee in a leave or other non-working
status to return to work by providing such employee or former employee employment on terms that
comply with such right.

          (c) Paid Time Off; Leave of Absence Policies. Newspaper Holdco will recognize and assume all
Liability for all vacation, holiday, sick leave, flex days, personal days and other paid time off
accrued by Newspaper Holdco Employees as of the Distribution Date, and Newspaper Holdco will
credit each Newspaper Holdco Employee with such accruals. In addition, Newspaper Holdco will
continue to apply the leave of absence policies maintained by Belo to inactive Newspaper Holdco
Employees who are on an approved leave of absence as of the Distribution Date.

          (d) At Will Status. Notwithstanding the provisions of Section 2.1(a) or Section 2.1(b) or
any other provision of this Agreement, nothing in this Agreement will create any obligation on the
part of any member of the Belo Group or any member of the Newspaper Holdco Group to continue the
employment of any employee for any definite period following the Distribution Date or will change
the employment status of any employee from “at will.”

          (e) Separation from Service; Change in Control. Neither the Distribution nor any of the
transactions contemplated by the Distribution Agreement and the Ancillary Agreements will be
deemed to be a separation from service or other termination or severance of employment of any Belo
Employee or Newspaper Holdco Employee, or a change in control of Belo or any of its Subsidiaries
for purposes of any Belo Benefit Plan or of any Newspaper Holdco Benefit Plan, except as otherwise
expressly provided in this Agreement.

     2.2 Compliance with Employment Laws. As of the Effective Time (i) Belo will be responsible
for adopting and maintaining any policies or practices and for all other actions necessary to
comply with employment-related Laws and requirements relating to the employment of Belo Employees
and the treatment of Former Belo Employees with respect to their former employment with a member of
the Belo Group and (ii) Newspaper Holdco will be responsible for adopting and maintaining any
policies or practices and for all other actions necessary to comply with employment-related Laws
and requirements relating to the employment of Newspaper Holdco Employees and the treatment of
Former Newspaper Holdco

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Employees with respect to their former employment with a member of the Newspaper Holdco Group.

     2.3 Employee Records.

          (a) Records Relating to Belo Employees and Former Belo Employees. All records and data in
any form relating to Belo Employees and Former Belo Employees will be the property of Belo, except
that data pertaining to such employees and relating to any period that such employees were
employed by a member of the Newspaper Holdco Group will be jointly owned by Belo and Newspaper
Holdco.

          (b) Records Relating to Newspaper Holdco Employees and Former Newspaper Holdco Employees.
All records and data in any form relating to Newspaper Holdco Employees and Former Newspaper
Holdco Employees will be the property of Newspaper Holdco, except that data pertaining to such
employees and relating to any period that such employees were employed by a member of the Belo
Group will be jointly owned by Newspaper Holdco and Belo.

          (c) Sharing of Records. The Parties will provide each other such records and information
only as necessary or appropriate to carry out their obligations under Law, this Agreement, the
Distribution Agreement or any Ancillary Agreement or for the purposes of administering their
respective employee benefit plans and policies. Records and data described in this Section 2.3
which are reasonably requested by a Party will be provided to the other Party as soon as
reasonably practicable upon such request, provided that the Party requesting
records and data will reimburse the Party providing the records and data for the reasonable costs
and expenses associated with the provision of such records and data (including a reasonable
allocable share of any compensation and overhead expense of personnel assigned to assist in the
provision of such records and data, except to the extent that such cost is insignificant). All
information and records regarding employment and personnel matters of employees and former
employees of the Parties will be accessed, retained, held, used, copied and transmitted in
accordance with all Laws and policies relating to the collection, storage, retention, use,
transmittal, disclosure and destruction of such records.

          (d) Maintenance of Records. Belo and Newspaper Holdco each will comply with all applicable
Laws and their respective internal policies in effect from time to time with respect to retaining,
destroying, transferring, sharing, copying and permitting access to all records and data described
in this Section 2.3.

     2.4 Assumption and Retention of Liabilities.

          (a) Belo Liabilities. As of the Effective Time, except as expressly provided in this
Agreement, Belo will assume or retain (i) all Liabilities under all Belo Benefit Plans (other than
funded benefit Liabilities), (ii) all Liabilities with respect to the employment or termination of
employment of all Belo Employees and Former Belo Employees, in each case to the extent arising in
connection with or as a result of employment with or the performance of services to (A) any member
of the Belo Group before, on or after the Distribution Date or (B) any member of the Newspaper
Holdco Group before the Distribution Date, (iii) all

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Liabilities with respect to any other service provider (including any individual who is, or
was, an independent contractor, temporary employee, agency employee or leased employee) to the
extent such Liabilities relate to, arise out of or result from the Belo Business (as such term is
defined in the Distribution Agreement), and (iv) any other Liabilities expressly assigned to Belo
under this Agreement.

          (b) Newspaper Holdco Liabilities. As of the Effective Time, except as expressly provided in
this Agreement or in the Distribution Agreement, Newspaper Holdco will assume or retain (i) all
Liabilities under all Newspaper Holdco Benefit Plans (other than funded benefit Liabilities),
(ii) all Liabilities with respect to the employment or termination of employment of all Newspaper
Holdco Employees and Former Newspaper Holdco Employees, in each case to the extent arising in
connection with or as a result of employment with or the performance of services to (A) any member
of the Newspaper Holdco Group before, on or after the Distribution Date or (B) any member of the
Belo Group before the Distribution Date, (iii) all Liabilities with respect to any other service
provider (including any individual who is, or was, an independent contractor, temporary employee,
agency employee or leased employee) to the extent such Liabilities relate to, arise out of or
result from the Newspaper Holdco Business (as such term is defined in the Distribution Agreement),
and (iv) any other Liabilities expressly assigned to Newspaper Holdco under this Agreement.

          (c) Employee Claims. As of the Effective Time, except as expressly provided in this
Agreement or the Distribution Agreement, Newspaper Holdco will assume, and be solely responsible
for, the administration, investigation and defense of claims, including ERISA, occupational safety
and health, employment standards, union grievances, wrongful dismissal, discrimination or human
rights and unemployment compensation claims, asserted at any time against Belo or Newspaper Holdco
or their respective Affiliates by any Newspaper Holdco Employee or Former Newspaper Holdco
Employee to the extent such claims arise out of or relate to employment to a member of the
Newspaper Holdco Group or to a member of the Belo Group prior to the Distribution Date. To the
extent that any Action relates to a putative or certified class of plaintiffs, which includes both
Belo Employees (or Former Belo Employees) and Newspaper Holdco Employees (or Former Newspaper
Holdco Employees) and such Action involves employment or benefit plan claims, the reasonable costs
and expenses incurred by the Parties in responding to such Action will be allocated among the
Parties equitably in proportion to a reasonable assessment of the relative proportion of Belo
Employees (or Former Belo Employees) and Newspaper Holdco Employees (or Former Newspaper Holdco
Employees) included in or represented by the putative or certified plaintiff class. Any
procedures contained in the indemnification and dispute resolution provisions of the Distribution
Agreement will apply with respect to each Party’s obligations under this Section 2.4(c), to the
extent such procedures are not inconsistent with the provisions of Section 6.9.

     2.5 Newspaper Holdco Participation in Belo Benefit Plans. As of the Effective Time or such
earlier time as provided in Section 3.2, Newspaper Holdco and each other member of the Newspaper
Holdco Group will cease to participate as an employer in all Belo Benefit Plans, and Belo and
Newspaper Holdco each will take all necessary action before the Distribution Date to cause
Newspaper Holdco and each other member of the Newspaper Holdco Group to cease such participation.

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     2.6 Service Credit.

          (a) Newspaper Holdco Employees. Except as otherwise provided in this Agreement, for purposes
of eligibility, vesting and level of benefits under the Newspaper Holdco Benefit Plans (other than
a defined benefit pension plan), Newspaper Holdco will give to each Newspaper Holdco Employee and,
if applicable, each Former Newspaper Holdco Employee service credit for any employment with a
member of the Belo Group prior to the Distribution Date to the extent that such employment is
taken into account under the comparable Belo Benefit Plan.

          (b) Transferred Employees.

          (i) With respect to a Belo Employee who transfers employment directly to a member of
the Newspaper Holdco Group after the Distribution Date and without any intervening
employment by an employer unrelated to the Belo Group or the Newspaper Holdco Group (a
“Transferred Belo Employee”), Newspaper Holdco will grant to the Transferred Belo
Employee service credit for employment with the Belo Group after the Distribution Date for
purposes of eligibility, vesting and, except with respect to a defined benefit pension plan,
level of benefits under the Newspaper Holdco Benefit Plans to the extent that such
employment was taken into account under the comparable Belo Benefit Plan. In addition, a
Transferred Belo Employee will retain all equity awards issued pursuant to a Belo equity
plan, and (A) all performance-based equity awards will continue to be earned on the basis of
Belo performance as contemplated by such equity award and (B) to the extent the provisions
of such equity award relate to the continued employment of the Transferred Employee,
employment with the Newspaper Holdco Group will be treated as employment with the Belo Group
for purposes of satisfying such provisions.

          (ii) With respect to a Newspaper Holdco Employee who transfers employment directly to a
member of the Belo Group after the Distribution Date and without any intervening employment
by an employer unrelated to the Newspaper Holdco Group or the Belo Group (a “Transferred
Newspaper Holdco Employee”), Belo will grant to the Transferred Newspaper Holdco
Employee service credit for employment with the Newspaper Holdco Group after the
Distribution Date for purposes of eligibility, vesting and, except with respect to a defined
benefit pension plan, level of benefits under the Belo Benefit Plans to the extent that such
employment was taken into account under the comparable Newspaper Holdco Benefit Plan. In
addition, a Transferred Newspaper Holdco Employee will retain all equity awards issued
pursuant to a Newspaper Holdco equity plan, and (A) all performance-based equity awards will
continue to be earned on the basis of Newspaper Holdco performance as contemplated by such
equity award and (B) to the extent the provisions of such equity award relate to the
continued employment of the Transferred Employee, employment with the Belo Group will be
treated as employment with the Newspaper Holdco Group for purposes of satisfying such
provisions.

     2.7 Participant Elections and Beneficiary Designations. All participant elections and
beneficiary designations made under any Belo Benefit Plan will continue in effect under the

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comparable Newspaper Holdco Benefit Plan until such time as the participant changes his or her
elections or beneficiary designations in accordance with the procedures of the relevant plan.

     2.8 Cooperation. Each of the Parties will cooperate with the other Party and will use its
commercially reasonable efforts to promptly take, or cause to be taken, all actions necessary or
appropriate to consummate the transactions contemplated by this Agreement.

ARTICLE 3

RETIREMENT PLANS

     3.1 The G. B. Dealey Retirement Pension Plan. Belo will retain sponsorship of The G. B.
Dealey Retirement Pension Plan (the “Pension Plan”), a frozen defined benefit plan, and
will administer benefits for Newspaper Holdco Employees and Former Newspaper Holdco Employees who
participate in the Pension Plan in accordance with the terms of the Pension Plan. The Distribution
will cause each Newspaper Holdco Employee to have a separation from service for purposes of
commencing benefits under the Pension Plan at or after age 55. Newspaper Holdco will have the
right to appoint one or more members of the committees established by Belo from time to time to
manage the assets of the Pension Plan. As sponsor of the Pension Plan, Belo will be solely
responsible for satisfying the funding obligations with respect to the Pension Plan in accordance
with applicable provisions of ERISA and the Code and retains the sole discretion to determine the
amount and timing of any contributions required to satisfy such funding obligations. Belo also
retains the right, in its sole discretion, to terminate the Pension Plan and to provide for the
payment of accrued Pension Plan benefits through insurance contracts or otherwise. Newspaper
Holdco will reimburse Belo in advance for 60 percent of each contribution Belo makes to the Pension
Plan in accordance with the provisions of this Section 3.1, including without limitation any
contribution made to fully fund and terminate the Pension Plan. Belo will notify Newspaper Holdco
at least 30 days in advance of the amount of any contribution it will make to the Pension Plan and
the date on which such contribution will be made. Newspaper Holdco will remit its share of the
contribution by wire transfer to an account designated by Belo no later than one business day prior
to the date of the contribution as indicated in such notice. Notwithstanding the foregoing
provisions of this Section 3.1, without the prior written consent of Newspaper Holdco, Belo will
not adopt any amendment to the Pension Plan that could reasonably be anticipated to increase the
funding cost of the Pension Plan except for any amendment required to comply with applicable Law
and except for any amendment adopted in connection with Belo’s decision to terminate the Pension
Plan.

     3.2 Savings Plans. Prior to the Distribution Date, Newspaper Holdco will establish the
Newspaper Holdco Savings Plan, a defined contribution plan intended to qualify under Section 401(a)
and Section 401(k) of the Code, with provisions that are substantially identical to the provisions
of the Belo Savings Plan then in effect. Prior to the Distribution Date, Belo will cause the
vested and nonvested account balances of Newspaper Holdco Employees and Former Newspaper Holdco
Employees to be transferred in kind (including participant loan balances and loan documentation)
from the Belo Savings Plan to the Newspaper Holdco Savings Plan, and Newspaper Holdco will cause
the Newspaper Holdco Savings Plan to assume and be solely responsible for all Liabilities of the
Belo Savings Plan with respect to Newspaper Holdco Employees and Former Newspaper Holdco Employees.
Upon the transfer of such account

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balances, Newspaper Holdco and each member of the Newspaper Holdco Group will cease to be a
participating employer in the Belo Savings Plan.

     3.3 Pension Transition Supplement Plan.

          (a) Establishment of the Newspaper Holdco Group Pension Transition Supplement Plan. Prior to
the Distribution Date, Newspaper Holdco will establish the Newspaper Holdco Pension Transition
Supplement Plan, a defined contribution plan intended to qualify under Section 401(a) of the Code,
with provisions that are substantially identical to the provisions of the Belo Pension Transition
Supplement Plan then in effect. As soon as practicable after the later of the Distribution Date
or the date on which Belo makes its contribution to the Belo Pension Transition Supplement Plan
for the 2007 plan year, Belo will cause the vested and nonvested account balances of Newspaper
Holdco Employees and Former Newspaper Holdco Employees to be transferred in kind from the Belo
Pension Transition Supplement Plan to the Newspaper Holdco Pension Transition Supplement Plan, and
Newspaper Holdco will cause the Newspaper Holdco Pension Transition Supplement Plan to assume and
be solely responsible for all Liabilities for plan benefits of the Belo Pension Transition
Supplement Plan with respect to Newspaper Holdco Employees and Former Newspaper Holdco Employees.
Promptly after the transfer of assets to the Newspaper Holdco Pension Transition Supplement Plan,
Newspaper Holdco will reimburse Belo for the aggregate contribution made by Belo to its Pension
Transition Supplement Plan for the 2007 plan year for the account of Newspaper Holdco Employees
and Former Newspaper Holdco Employees.

          (b) Transferred Employees. A Transferred Belo Employee who, immediately prior to
transferring employment, was eligible to participate in the Belo Transition Supplement Plan and
who is an employee of the Newspaper Holdco Group on December 31 of the plan year in which the
transfer of employment occurred will be a participant in the Newspaper Holdco Pension Transition
Supplement Plan for the entire plan year, and Newspaper Holdco will be responsible for making the
pension transition supplement contribution to its plan for the benefit of such employee for such
plan year. Conversely, a Transferred Newspaper Holdco Employee who, immediately prior to
transferring employment, was eligible to participate in the Newspaper Holdco Transition Supplement
Plan and who is an employee of the Belo Group on December 31 of the plan year in which the
transfer of employment occurred will be a participant in the Belo Pension Transition Supplement
Plan for the entire plan year, and Belo will be responsible for making the pension transition
supplement contribution to its plan for the benefit of such employee for such plan year.

     3.4 Nonqualified Deferred Compensation Plans.

          (a) Pension Transition Supplement Restoration Plan. Prior to the Distribution Date,
Newspaper Holdco will also establish the Newspaper Holdco Pension Transition Supplement
Restoration Plan, a nonqualified deferred compensation plan, with provisions that are
substantially identical to the provisions of the Belo Pension Transition Supplement Restoration
Plan then in effect. Newspaper Holdco will assume and discharge all Liabilities of Belo under the
Belo Pension Transition Supplement Restoration Plan with respect to Newspaper Holdco Employees and
Former Newspaper Holdco Employees for the 2007 plan year. No assets will be transferred to
Newspaper Holdco in connection with such assumption of

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Liabilities. A transferred employee described in Section 3.3(b) who is eligible to
participate in the Pension Transition Supplement Plan of Belo or Newspaper Holdco for the plan
year in which the transfer of employment occurred will also be eligible to participate in the
Pension Transition Supplement Restoration Plan of Belo or Newspaper Holdco, as applicable, for
such plan year.

          (b) Other Nonqualified Plans. Except as provided in Section 3.4(a), (i) Belo will retain all
nonqualified deferred compensation Liabilities with respect to Belo Employees and Former Belo
Employees, and (ii) Newspaper Holdco will assume or retain all nonqualified deferred compensation
Liabilities with respect to Newspaper Holdco Employees and Former Newspaper Holdco Employees.

ARTICLE 4

WELFARE BENEFIT PLANS

     4.1 Establishment of Newspaper Holdco Welfare Benefit Plans. Prior to the Distribution Date,
Newspaper Holdco will adopt welfare benefit plans that contain substantially the same benefit
provisions as in effect for Newspaper Holdco Employees and Former Newspaper Holdco Employees under
the Belo welfare benefit plans immediately prior to the Distribution Date, including such plans
providing for retiree benefits. Effective as of the Effective Time, Newspaper Holdco Employees and
Former Newspaper Holdco Employees will cease to participate in the Belo welfare benefit plans and
will be eligible to participate in the Newspaper Holdco welfare benefit plans in accordance with
the terms of such plans. Except as provided in Section 4.6, no assets will be transferred on
account of any such plans. Welfare benefit plans include plans providing medical, dental,
prescription drug and vision benefits, life insurance, accidental death and disability insurance,
business travel accident insurance, long-term and short-term disability benefits, long term care,
flexible spending accounts, Employee Assistance Plan, wellness and similar types of plans.

     4.2 Treatment of Claims Incurred. The Belo welfare benefit plans will retain liability for
payment of all covered claims incurred on or before the Distribution Date by Newspaper Holdco
Employees and Former Newspaper Holdco Employees and their covered dependents and beneficiaries, and
the Newspaper Holdco welfare benefit plans will assume the liability for payment of all covered
claims incurred after the Distribution Date by Newspaper Holdco Employees and Former Newspaper
Holdco Employees and their covered dependents and beneficiaries.

     4.3 Credit for Co-Pays and Deductibles. The Newspaper Holdco welfare benefit plans will give
credit in the plan year of the Distribution Date for any amount paid by Newspaper Holdco Employees
and Former Newspaper Holdco Employees and their covered dependents or beneficiaries in such year
under the Belo welfare benefit plans toward deductibles, co-payments, out-of-pocket maximums or
other similar limitations under the Belo welfare benefit plan. Except as otherwise provided in the
next sentence, for purposes of any life-time maximum limit on benefits paid with respect to a
covered participant, the Newspaper Holdco welfare plans will recognize any benefits paid with
respect to a Newspaper Holdco Employee or Former Newspaper Holdco Employee prior to the
Distribution Date to the same extent such benefits would be recognized in respect of a participant
under the Belo welfare benefit plans. With

11

 

respect to any Newspaper Holdco self-funded medical plan, the full lifetime maximum limit with
respect to Newspaper Holdco Employees who are plan participants at the Effective Time will be
available to such Newspaper Holdco Employees, and no amount of the lifetime maximum limit used by
such Newspaper Holdco Employees under any Belo self-funded medical plan will be credited against
their lifetime maximum limit under the Newspaper Holdco self-funded medical plan.

     4.4 COBRA. Effective as of the Effective Time, Newspaper Holdco will assume and satisfy all
requirements under COBRA with respect to claims incurred by all Newspaper Holdco Employees and
Former Newspaper Holdco Employees and their qualified beneficiaries after the Distribution Date,
including such individuals who are receiving COBRA benefits as of the Distribution Date.

     4.5 Third Party Contracts. Belo and Newspaper Holdco will use commercially reasonable efforts
to obligate each third party administrator of the Belo welfare benefit plans, each insurer under a
group insurance policy that relates to any of the Belo welfare benefit plans and each Health
Maintenance Organization that provides medical services under the Belo welfare benefit plans to
enter into a separate contract or policy, as applicable, with Newspaper Holdco providing for
substantially similar terms and conditions as are contained in the contracts and policies to which
Belo is a party. Such terms and conditions will include the financial and termination provisions,
performance standards, methodology, auditing policies, quality measures and reporting requirements.
In addition, Belo and Newspaper Holdco will use commercially reasonable efforts to cause each of
the insurance companies and third party administrators providing services and benefits under the
Belo welfare benefit plans and the Newspaper Holdco welfare benefit plans to maintain the premium
and/or administrative rates based on the aggregate number of participants in both the Belo welfare
benefit plans and the Newspaper Holdco welfare benefit plans as in effect immediately prior to the
Distribution Date through the end of the year in which the Distribution Date occurs. To the extent
such efforts are not successful, Belo and Newspaper Holdco each will bear the revised premium or
administrative rates attributable to the individuals covered by their respective welfare benefit
plans.

     4.6 Flexible Spending Account Benefit Plan. Effective as of the Effective Time, Newspaper
Holdco will establish the Newspaper Holdco Flexible Spending Account Benefit Plan containing
provisions that are substantially identical to those of the Belo Flexible Spending Account Benefit
Plan then in effect. Prior to the Distribution Date, Belo and Newspaper Holdco will take all
actions necessary or appropriate so that, as of the Effective Time, (i) the account balances
(whether positive or negative) under the Belo Flexible Spending Account Benefit Plan of Newspaper
Holdco Employees and Former Newspaper Holdco Employees who are participants in the Belo Flexible
Spending Account Benefit Plan will be transferred to the Newspaper Holdco Flexible Spending Account
Benefit Plan and (ii) to the extent not reimbursed by the Belo Flexible Spending Account Benefit
Plan as of the Effective Time, Newspaper Holdco Employees will be reimbursed from the Newspaper
Holdco Flexible Spending Account Benefit Plan for claims incurred at any time during the plan year
of the Belo Flexible Spending Account Benefit Plan in which the Distribution Date occurs on the
same basis and the same terms and conditions as under the Belo Flexible Spending Account Benefit
Plan. In addition, Belo will transfer to Newspaper Holdco an amount in cash equal to (A) the
aggregate payroll deductions credited as of the Effective Time to the accounts of Newspaper Holdco
Employees

12

 

and Former Newspaper Holdco Employees under the Belo Flexible Spending Account Benefit Plan,
reduced by (B) the aggregate claims paid as of the Effective Time by the Belo Flexible Spending
Account Benefit Plan on behalf of Newspaper Holdco Employees and Former Newspaper Holdco Employees;
provided that if the amount of claims described in clause (B) of this sentence
exceeds the aggregate payroll deductions described in clause (A), Newspaper Holdco will pay to Belo
an amount in cash equal to the difference.

ARTICLE 5

INCENTIVE AWARDS

     5.1 Stock Options. Immediately prior to the Effective Time, each Belo Stock Option that is
outstanding at such time will be converted into both an adjusted Belo Stock Option and a new
Newspaper Holdco Stock Option, each of which will, except as otherwise provided in this
Section 5.1, be subject to the same terms and conditions applicable to the Belo Stock Option
immediately prior to such adjustment and conversion. The adjustments to the Belo Stock Options and
the issuance of the new Newspaper Holdco Stock Options will be effected in a manner intended to
satisfy the requirements of Section 424 of the Code and to avoid treatment of such stock options as
nonqualified deferred compensation subject to Section 409A of the Code. The adjusted Belo Stock
Options and the new Newspaper Holdco Stock Options together will, in the sole and absolute judgment
of the Compensation Committee of the Board of Directors of Belo, preserve the intrinsic value of
the original Belo Stock Options.

          (a) Adjusted
Belo Stock Option. Each adjusted Belo Stock Option will cover a number of shares of Series B Belo Common Stock equal to the number of such shares subject to the Belo Stock
Option immediately prior to its adjustment, and the per share exercise price of the adjusted Belo
Stock Option, rounded up to the nearest 1/100th of a cent, will be determined by
multiplying the Belo Post-Distribution Stock Value by the Option Conversion Ratio.

          (b) New Newspaper Holdco Stock Option. Each new Newspaper Holdco Stock Option will cover a
number of shares of Series B Newspaper Holdco Common Stock, rounded down to the nearest whole
share, equal to the number of shares of Series B Belo Common Stock subject to the corresponding
Belo Stock Option multiplied by the Equity Adjustment Ratio, and the per share exercise price of
such new stock option, rounded up to the nearest 1/100th of a cent, will be determined
by multiplying the Newspaper Holdco Stock Value by the Option Conversion Ratio.

          (c) Vesting. The adjusted Belo Stock Option and the new Newspaper Holdco Stock Option will
take into account all employment (including employment described in Section 2.6(b)) with both the
Belo Group and the Newspaper Holdco Group for all purposes, including the determination of when
such stock options will vest, become exercisable and expire.

     5.2 Restricted Stock Units. Each holder of Belo Restricted Stock Units outstanding
immediately prior to the Effective Time will retain such Restricted Stock Units and, in addition,
at such time will receive a number of new Newspaper Holdco Restricted Stock Units equal to the
number of Belo Restricted Stock Units multiplied by the Equity Adjustment Ratio, rounded

13

 

down to the nearest whole unit. The Newspaper Holdco Restricted Stock Units will otherwise
have substantially the same terms and conditions as the Belo Restricted Stock Units. The Belo
Restricted Stock Units outstanding immediately prior to the Effective Time and the Newspaper Holdco
Restricted Stock Units issued pursuant to this Section 5.2 will take into account all employment
(including employment described in Section 2.6(b)) with both the Belo Group and the Newspaper
Holdco Group for purposes of determining when such Restricted Stock Units will vest and be paid.
The issuance of the new Newspaper Holdco Restricted Stock Units will be effected in a manner
intended not to modify the treatment of such Restricted Stock Units under Section 409A of the Code
that applies to the corresponding Belo Restricted Stock Units. The new Newspaper Holdco Restricted
Stock Units together with the original Belo Restricted Stock Units will, in the sole and absolute
judgment of the Compensation Committee of the Board of Directors of Belo, preserve the intrinsic
value of the original Belo Restricted Stock Units.

     5.3 Responsibility for Tax Withholding and Reporting. Belo and Newspaper Holdco agree that,
unless prohibited by applicable Law, Newspaper Holdco will be responsible for all tax withholding
and reporting obligations and will pay the employer’s share of any employment tax obligations that
arise in connection with the grant, vesting, exercise, transfer or other settlement of the adjusted
or new equity awards described in Section 5.1 and Section 5.2 held by Newspaper Holdco Employees
and Former Newspaper Holdco Employees. Belo and Newspaper Holdco further agree that, unless
prohibited by applicable Law, Belo will be responsible for all tax withholding and reporting
obligations and will pay the employer’s share of any employment tax obligations that arise in
connection with the grant, vesting, exercise, transfer or other settlement of the equity awards
held by Belo Employees and Former Belo Employees. If the withholding provisions described above
are not permitted by applicable Law, the Parties will make an equitable adjustment to reflect the
proper payor.

     5.4 Approval and Terms of New Newspaper Holdco Awards. The Newspaper Holdco awards to be
granted pursuant to Section 5.1 and Section 5.2 will be granted under a Newspaper Holdco equity
incentive plan effective as of the Effective Time, the terms of which will be substantially similar
to the terms of the Belo 2004 Executive Compensation Plan in effect immediately prior to the
Effective Time. Prior to the Effective Time, Belo will cause Newspaper Holdco to take such actions
and obtain such approvals as are necessary or desirable to ensure that the issuance of the new
Newspaper Holdco awards on the Effective Time will comply with all applicable tax and securities
Laws and stock exchange requirements. Newspaper Holdco will be responsible for any such actions or
approvals after the Effective Time, including any required approval by the public shareholders of
Newspaper Holdco.

ARTICLE 6

MISCELLANEOUS

     6.1 Amendment and Termination of Benefit Plans. The Parties do not intend this Agreement to
be an amendment to any Benefit Plan. However, except as otherwise expressly provided herein,
nothing in this Agreement will limit the ability of either Party to amend or terminate a Benefit
Plan after the Distribution Date.

14

 

     6.2 Complete Agreement; Representations.

          (a) Entire Agreement. This Agreement constitutes the entire agreement between the Parties
with respect to the subject matter hereof and supersedes all previous negotiations, commitments
and writings with respect to such subject matter.

          (b) Representations. Belo represents on behalf of itself and each other member of the Belo
Group, and Newspaper Holdco represents on behalf of itself and each other member of the Newspaper
Holdco Group as follows:

          (i) each such Person has the requisite corporate or other power and authority and has
taken all corporate or other action necessary in order to execute, deliver and perform this
Agreement and to consummate the transactions contemplated by this Agreement; and

          (ii) this Agreement has been duly executed and delivered by such Person (if such Person
is a Party) and constitutes its valid and binding agreement enforceable in accordance with
the terms hereof (assuming the due execution and delivery thereof by the other Party),
except as such enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium and other Laws relating to creditors’ rights
generally and by general equitable principles.

     6.3 Costs and Expenses. Except as expressly provided in this Agreement, Belo will bear all
direct and indirect costs and expenses incurred in connection with the negotiation, preparation and
execution of this Agreement and the transactions contemplated hereby; provided that
from and after the Distribution, each Party will bear its own direct and indirect costs and
expenses related to its performance of this Agreement or any Ancillary Agreement, and any such
expense that constitutes a Reimbursable Expense within the meaning of the Distribution Agreement
will be subject to the reimbursement provisions of the Distribution Agreement.

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

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

          (a) if to Belo or any member of the Belo Group:

Belo Corp.

400 South Record Street

Dallas, Texas 75202

Attention: Chief Executive Officer

Facsimile No.: (214) 977-8209

With a copy to: Chief Financial Officer

Facsimile No.: (214) 977-8209

15

 

          (b) if to Newspaper Holdco or any member of the Newspaper Holdco Group:

A. H. Belo Corporation

400 South Record Street

Dallas, Texas 75202

Attention: Chief Executive Officer

Facsimile No.: (214) 977-8209

With a copy to: Chief Financial Officer

Facsimile No.: (214) 977-6899

All such notices, requests and other communications will (i) if delivered personally to the address
as provided in this Section 6.5, be deemed given upon delivery, (ii) if delivered by facsimile
transmission to the facsimile number as provided in this Section 6.5, be deemed given upon receipt
and (iii) if delivered by mail in the manner described above to the address as provided in this
Section 6.5, be deemed given upon receipt (in each case regardless of whether such notice, request
or other communication is received by any other Person to whom a copy of such notice, request or
other communication is to be delivered pursuant to this section). Any Party from time to time may
change its address, facsimile number or other information for the purpose of notices to that Party
by giving notice specifying such change to the other Party.

     6.6 Amendment, Modification or Waiver.

          (a) Amendment. Prior to the Effective Time, this Agreement may be amended, modified, waived,
supplemented or superseded, in whole or in part, by Belo in its sole discretion by execution of a
written document delivered to Newspaper Holdco. Subsequent to the Effective Time, this Agreement
may be amended, modified, waived, supplemented or superseded, in whole or in part, only by a
written document signed by duly authorized signatories of the Parties.

          (b) Waiver. Any term or condition of this Agreement may be waived at any time by the Party
that is entitled to the benefit thereof, but no such waiver will be effective unless set forth in
a written instrument duly executed by or on behalf of the Party waiving such term or condition.
No waiver by any Party of any term or condition of this Agreement, in any one or more instances,
will be deemed or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion. All remedies, either under this Agreement or by Law or
otherwise afforded, will be cumulative and not alternative.

     6.7 No Assignment; Binding Effect; No Third-Party Beneficiaries.

          (a) Assignment and Successors. Neither this Agreement nor any right, interest or obligation
hereunder may be assigned by either Party without the prior written consent of the other Party,
and any attempt to do so will be void, except that each Party may assign any or all of its rights,
interests and obligations hereunder to an Affiliate, provided that any such
Affiliate agrees in writing to be bound by all of the terms, conditions and provisions contained
herein; provided further that no assignment will relieve the assigning Party of
any of its obligations under this Agreement, unless expressly so provided. Subject to the
preceding

16

 

sentence, this Agreement is binding upon, inures to the benefit of and is enforceable by the
Parties hereto and their respective successors and permitted assigns.

          (b) No Third-Party Beneficiaries. The terms and provisions of this Agreement are intended
solely for the benefit of each Party and its respective Affiliates, successors or permitted
assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon
any other Person.

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

     6.9 Negotiation. In the event that any dispute arises between the Parties that cannot be
resolved, either Party will have the right to refer the dispute for resolution to the chief
financial officers of the Parties by delivering to the other Party a written notice of such
referral (a “Dispute Notice”). Following receipt of a Dispute Notice, the chief financial
officers of the Parties will negotiate in good faith to resolve such dispute. In the event that
the chief financial officers of the Parties are unable to resolve such dispute within 15 business
days after the date of the Dispute Notice, either Party will have the right to refer the dispute to
the chief executive officers of the Parties, who will negotiate in good faith to resolve such
dispute. In the event that the chief executive officers of the Parties are unable to resolve such
dispute within 30 business days after the date of the Dispute Notice, either Party will have the
right to commence litigation in accordance with the provisions of the Distribution Agreement. The
Parties agree that all discussions, negotiations and other Information exchanged between the
Parties during the foregoing dispute resolution proceedings will be without prejudice to the legal
position of a Party in any subsequent Action.

     6.10 Specific Performance. From and after the Distribution, in the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement,
the Parties agree that the Party or Parties to this Agreement who are or are to be thereby
aggrieved will have the right to specific performance and injunctive or other equitable relief of
its or their rights under this Agreement, in addition to any and all other rights and remedies at
law or in equity, and all such rights and remedies will be cumulative. The Parties agree that,
from and after the Distribution, the remedies at law for any breach or threatened breach of this
Agreement, including monetary damages, are inadequate compensation for any Loss, that any defense
in any Action for specific performance that a remedy at law would be adequate is hereby waived, and
that any requirements for the securing or posting of any bond with such remedy are hereby waived.

     6.11 Texas Forum. Subject to the prior exhaustion of the procedures set forth in Section 6.9
and to the fullest extent permitted by applicable Law, each Party hereto (i) agrees that all
Actions arising out of, relating to or in connection with this Agreement or for recognition and
enforcement of any judgment arising out of or in connection with this Agreement, or the
transactions contemplated hereby, will be brought only in the United States District Court for the
Northern District of Texas or any Texas State court, in each case, located in Dallas County and not
in any other State or Federal court in the United States of America or any court in any other
country, (ii) agrees to submit to the exclusive jurisdiction of such courts located in Dallas
County

17

 

for purposes of all legal proceedings arising out of, or in connection with, this Agreement
and the transactions contemplated hereby, (iii) waives and agrees not to assert any objection that
it may now or hereafter have to the laying of the venue of any such action brought in such a court
or any claim that any such action brought in such a court has been brought in an inconvenient
forum, (iv) agrees that mailing of process or other papers in connection with any such action or
proceeding in the manner provided in Section 6.5 or any other manner as may be permitted by Law
will be valid and sufficient service thereof and (v) agrees that a final judgment in any such
action or proceeding will be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by applicable Law.

     6.12 Interpretation; Conflict With Distribution Agreement. The Article and Section headings
contained in this Agreement are solely for the purpose of reference, are not part of the agreement
of the Parties and will not in any way affect the meaning or interpretation of this Agreement.
Except as specifically set forth in this Agreement, the provisions of this Agreement will govern in
the event of any conflict between any provision of this Agreement and that of the Distribution
Agreement or any Ancillary Agreement.

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

     6.14 Effectiveness of the Agreement. Except as provided in Section 3.2, Section 5.1 and
Section 5.2, this Agreement will be effective as of the Effective Time.

     IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be duly
executed as of the day and year first written above.

	 	 	 	 	 
	 	BELO CORP.

 	 
	 	By  	/s/ Dennis A. Williamson
 	 
	 	 	Name:  	Dennis A. Williamson 	 
	 	 	Title:  	Executive Vice President/Chief

Financial Officer 	 
	 
	 	A. H. BELO CORPORATION

 	 
	 	By  	/s Alison K. Engel
 	 
	 	 	Name:  	Alison K. Engel 	 
	 	 	Title:  	Senior Vice President/Chief Financial

Officer 	 
	 

18exv10w3

 

Execution Version

SERVICES AGREEMENT

By and Between

BELO CORP.

and

A. H. BELO CORPORATION

Dated as of February 8, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	2	 
	Section 1.02 General Interpretive Principles
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II SERVICES
	 	 	5	 
	 
	 	 	 	 
	Section 2.01 Belo Services
	 	 	5	 
	Section 2.02 Newspaper Holdco Services
	 	 	5	 
	Section 2.03 Standard of Performance for Belo Services
	 	 	5	 
	Section 2.04 Standard of Performance for Newspaper Holdco Services
	 	 	6	 
	Section 2.05 Omitted Belo Services
	 	 	7	 
	Section 2.06 Omitted Newspaper Holdco Services
	 	 	7	 
	Section 2.07 Interruption of Services
	 	 	7	 
	Section 2.08 Access
	 	 	8	 
	Section 2.09 Transition of Responsibilities
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III FEES AND EXPENSES
	 	 	9	 
	 
	 	 	 	 
	Section 3.01 Fees and Expenses
	 	 	9	 
	Section 3.02 Billing and Payment; No Set-off
	 	 	9	 
	Section 3.03 Additional Costs
	 	 	9	 
	Section 3.04 Late Payments
	 	 	10	 
	Section 3.05 Taxes
	 	 	10	 
	 
	 	 	 	 
	ARTICLE IV CONFIDENTIALITY
	 	 	13	 
	 
	 	 	 	 
	Section 4.01 Confidentiality Obligations
	 	 	13	 
	 
	 	 	 	 
	ARTICLE V NO WARRANTY; LIMITATION OF LIABILITY; INDEMNIFICATION; ESCALATION
	 	 	15	 
	 
	 	 	 	 
	Section 5.01 Warranties and Disclaimer of Warranty by Belo
	 	 	15	 
	Section 5.02 Warranties and Disclaimer of Warranty by Newspaper Holdco
	 	 	15	 
	Section 5.03 Third Parties and Belo Services
	 	 	16	 
	Section 5.04 Third Parties and Newspaper Holdco Services
	 	 	16	 
	Section 5.05 Obligation to Re-perform Belo Services
	 	 	17	 
	Section 5.06 Obligation to Re-perform Newspaper Holdco Services
	 	 	17	 
	Section 5.07 Limitation of Liability
	 	 	17	 
	Section 5.08 Belo Indemnity
	 	 	18	 
	Section 5.09 Newspaper Holdco Indemnity
	 	 	19	 
	Section 5.10 Negotiation
	 	 	19	 
	Section 5.11 Indemnification Rights
	 	 	19	 
	 
	 	 	 	 
	ARTICLE VI ACCESS TO INFORMATION
	 	 	20	 
	 
	 	 	 	 
	Section 6.01 Access to Belo Records
	 	 	20	 
	Section 6.02 Access to Newspaper Holdco Records
	 	 	20	 
	Section 6.03 Cooperation and Procedures
	 	 	20	 

i 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE VII TERM; TERMINATION
	 	 	22	 
	 
	 	 	 	 
	Section 7.01 Term
	 	 	22	 
	Section 7.02 Early Termination
	 	 	22	 
	Section 7.03 Breach of Agreement
	 	 	22	 
	Section 7.04 Sums Due
	 	 	22	 
	Section 7.05 Effect of Termination
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	Section 8.01 Notices
	 	 	23	 
	Section 8.02 Entire Agreement
	 	 	24	 
	Section 8.03 Waiver
	 	 	24	 
	Section 8.04 Amendment
	 	 	24	 
	Section 8.05 Independent Contractors
	 	 	24	 
	Section 8.06 No Third Party Beneficiary
	 	 	24	 
	Section 8.07 No Assignment; Binding Effect
	 	 	24	 
	Section 8.08 Headings
	 	 	25	 
	Section 8.09 Submission to Jurisdiction; Waivers
	 	 	25	 
	Section 8.10 Severability
	 	 	25	 
	Section 8.11 Governing Law
	 	 	25	 
	Section 8.12 Counterparts
	 	 	25	 
	Section 8.13 Order of Precedence
	 	 	26	 
	Section 8.14 Ownership of and License to Data
	 	 	26	 
	 
	 	 	 	 
	Exhibit A            Belo Services and Newspaper Holdco Services
	 	 	 	 

ii 

 

SERVICES AGREEMENT

     This SERVICES AGREEMENT (this “Agreement”), dated as of February 8, 2008, by and between Belo
Corp., a Delaware corporation (“Belo”), and A. H. Belo Corporation, a Delaware corporation
(“Newspaper Holdco,” and, together with Belo, each a “Party” and collectively the “Parties”).

RECITALS

     WHEREAS, the Board of Directors of Belo has determined that it is in the best interests of
Belo and its shareholders to separate the Newspaper Holdco Business (as defined below) and the Belo
Business (as defined below) into two separate public companies, on the terms and subject to the
conditions set forth in the Separation and Distribution Agreement (as defined below), in order to,
among other things, (i) create more focused organizations better able to respond to different
industry dynamics and therefore better able to tailor strategic initiatives and priorities; (ii)
allow the investment community to evaluate Belo and Newspaper Holdco separately relative to the
performance of their peers; (iii) allow Newspaper Holdco greater flexibility to create a capital
structure and deploy capital more closely aligned with its strategic priorities; and (iv) allow
Newspaper Holdco to provide its management and employees incentive compensation more directly
linked to its individual financial performance;

     WHEREAS, in order to effectuate the foregoing, Belo and Newspaper Holdco have entered into a
Separation and Distribution Agreement, dated as of February 8, 2008 (the “Separation and
Distribution Agreement”), pursuant to which and subject to the terms and conditions set forth
therein, on the Distribution Date (as defined in the Separation and Distribution Agreement) the
Newspaper Holdco Business shall be separated from the Belo Business and the Newspaper Holdco Common
Stock shall be distributed on a pro rata basis to the shareholders of Belo; and

     WHEREAS, in connection therewith and in order to ensure an orderly transition under the
Separation and Distribution Agreement, following the Effective Time (as defined in the Separation
and Distribution Agreement), Belo desires to provide, through the Belo Service Providers (as
defined below), to Newspaper Holdco and its Affiliates, as applicable, certain services (the “Belo
Services”) with respect to the operations of Newspaper Holdco and its Affiliates, and Newspaper
Holdco desires to provide, through the Newspaper Holdco Service Providers (as defined below), to
Belo and its Affiliates, as applicable, certain services (the “Newspaper Holdco Services”) with
respect to the operations of Belo and its Affiliates, as such Belo Services and Newspaper Holdco
Services are more fully described in (i) separate service schedules to be agreed to and delivered
by the Parties hereto on the date hereof or from time to time thereafter (all such service
schedules, including any appendices, exhibits or other attachments thereto, the “Schedules,” and
each, a “Schedule”), or (ii) separate agreements to be entered into by the Parties or their
respective Service Providers on the date hereof or from time to time thereafter (all such separate
agreements, including any appendices, exhibits or other attachments thereto, the “Additional
Agreements,” and each, an “Additional Agreement”). The general categories of Belo Services and
Newspaper Holdco Services initially to be provided pursuant to the Schedules or Additional
Agreements are reflected on Exhibit A attached hereto.

1

 

     NOW, THEREFORE, in consideration of the promises and covenants set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Belo
and Newspaper Holdco hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein, but not defined herein shall
have the meanings assigned to such terms in the Separation and Distribution Agreement, as it may be
amended from time to time in accordance with the terms thereof, and the following terms shall have
the meanings set forth below:

     “Additional Agreements” shall have the meaning assigned to it in the recitals.

     “Additional Belo Service” shall have the meaning assigned to it in Section 2.05.

     “Additional Newspaper Holdco Service” shall have the meaning assigned to it in Section 2.06.

     “Affiliate” means, with respect to any specified Person (as defined in the Separation and
Distribution Agreement), any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with, such specified Person;
provided, however, that for purposes of this Agreement, no member of either Group
(as defined in the Separation and Distribution Agreement) shall be deemed to be an Affiliate of any
member of the other Group. As used herein, “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such entity,
whether through ownership of voting securities or other interests, by contract or otherwise.

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

     “Auditing Standard No. 2” shall have the meaning assigned to it in Section 6.01.

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

     “Belo Business” means all businesses and operations of the Belo Group, other than the
Newspaper Holdco Business.

     “Belo Data” means all data relating primarily to the Belo Business (including all files,
records and other Information relating primarily to the Belo Business that have been uploaded to
Software at any time since Belo or Newspaper Holdco began using such Software (as defined in the
Separation and Distribution Agreement), whether uploaded prior to, on or after the Effective Time).

     “Belo Service Providers” means Belo, its Affiliates and any third party, in each case, to the
extent such Person is providing the Belo Services on behalf of Belo pursuant to any Schedule or
Additional Agreement.

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

     “Belo Transition Plan” shall have the meaning assigned to it in Section 2.09(c).

     “Dispute Notice” shall have the meaning assigned to it in Section 5.10.

     “Employee Costs” means for each employee of a Service Provider, to the extent such employee is
providing a service to a Service Recipient pursuant to this Agreement, the gross compensation
expense, including any benefit and/or administrative costs, applicable to such employee, based on
the ratio of the Service Provider’s estimate of the time spent by the employee on behalf of the
Service Recipient divided by the total time worked by the employee.

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

     “Loss” shall have the meaning assigned to it in Section 5.08.

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

     “Newspaper Holdco Business” means the business and operations conducted by the Newspaper
Holdco Group from time to time, whether at or after the Effective Time (as defined in the
Separation and Distribution Agreement), including the business and operations conducted by the
Newspaper Holdco Group, as more fully described in the Information Statement (as defined in the
Separation and Distribution Agreement), including, without limitation, the assets, operations,
personnel and related activities connected with the “Belo Interactive Media” and “Belo Technology”
organizations, at or after the Effective Time.

     “Newspaper Holdco Data” means all data relating primarily to the Newspaper Holdco Business
(including all files, records and other Information (as defined in the Separation and Distribution
Agreement) relating primarily to the Newspaper Holdco Business that have been uploaded to Software
at any time since Belo or Newspaper Holdco began using such Software, whether uploaded prior to, on
or after the Effective Time).

     “Newspaper Holdco Service Providers” means Newspaper Holdco, its Affiliates and any third
party, in each case, to the extent such Person is providing the Newspaper Holdco Services on behalf
of Newspaper Holdco pursuant to any Schedule or Additional Agreement.

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

     “Newspaper Holdco Transition Plan” shall have the meaning assigned to it in Section 2.09(b).

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

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

     “SAS 70 Audit” shall have the meaning assigned to it in Section 6.01.

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

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

     “Service Provider” means the Belo Service Providers and/or the Newspaper Holdco Service
Providers, as the context requires.

     “Service Recipient” means either Belo or its Affiliates, to the extent Belo is receiving a
service from a Newspaper Holdco Service Provider, or Newspaper Holdco or its Affiliates, to the
extent Newspaper Holdco is receiving a service from a Belo Service Provider, as the context
requires.

     “Services” means the Belo Services and/or the Newspaper Holdco Services, as the context
requires.

     “Services Tax” shall have the meaning assigned to it in Section 3.05(a)(i).

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

     “Taxing Authority” shall have the meaning assigned to it in Section 3.05(a)(ii).

     “Withheld Tax” shall have the meaning assigned to it in Section 3.05(e).

     Section 1.02 General Interpretive Principles. (a)  Words in the singular shall
include the plural and vice versa, and words of one gender shall include the other gender, in each
case, as the context requires, (b) the term “hereof,” “herein,” “hereunder” and “herewith” and
words of similar import shall, unless otherwise stated, be construed to refer to this Agreement and
not to any particular provision of this Agreement, and references to Article, Section, paragraph,
exhibit and Schedule are references to the Articles, Sections, paragraphs, exhibits and Schedules
to or delivered in connection with this Agreement unless otherwise specified, (c) the word
“including” and words of similar import when used in this Agreement shall mean “including, without
limitation,” unless otherwise specified and (d) any reference to any federal, state, local or
non-U.S. statute or Law shall be deemed to also refer to all rules and regulations promulgated
thereunder, unless the context otherwise requires. Unless the context requires otherwise,
references in this Agreement to “Belo” shall also be deemed to refer to the applicable member of
the Belo Group and to “Newspaper Holdco” shall also be deemed to refer to the applicable member of
the Newspaper Holdco Group.

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ARTICLE II

SERVICES

     Section 2.01 Belo Services. During the term of this Agreement, Belo shall provide, or
shall cause one or more Belo Service Providers to provide, the Belo Services to Newspaper Holdco
and its applicable Affiliates, as such Belo Services are more particularly described in the
applicable Schedules or Additional Agreements, upon the terms and subject to the conditions of this
Agreement, such Schedules or such Additional Agreements.

     Section 2.02 Newspaper Holdco Services. During the term of this Agreement, Newspaper
Holdco shall provide, or shall cause one or more Newspaper Holdco Service Providers to provide, the
Newspaper Holdco Services to Belo and its applicable Affiliates, as such Newspaper Holdco Services
are more particularly described in the applicable Schedules or Additional Agreements, upon the
terms and subject to the conditions of this Agreement, such Schedules or such Additional
Agreements.

     Section 2.03 Standard of Performance for Belo Services.  (a) Belo shall provide, or
shall cause to be provided, the Belo Services in a manner and at a level that is substantially
similar in all material respects to the typical manner and average level at which such Belo
Services were provided to Newspaper Holdco or its Affiliates during the 12 month period prior to
the Effective Time, except to the extent that (i) a different manner or level of a Belo Service is
set forth in a Schedule or an Additional Agreement, in which case such Belo Service shall be
provided in the manner and level as set forth in each such applicable Schedule or Additional
Agreement or (ii) such Belo Service has not been provided during the 12 month period prior to the
Effective Time and the applicable Schedule or Additional Agreement does not set forth a manner or
level at which such Belo Service is to be provided, in which case, such Belo Service shall be
provided in a commercially reasonable manner.

     (b) Notwithstanding Section 2.03(a), Belo may change from time to time the manner and level at
which any Belo Service is provided to Newspaper Holdco, including, but not limited to,
discontinuing such Belo Service, to the extent that Belo is making a similar change in performing a
substantially similar service for itself or its Affiliates and if Belo provides Newspaper Holdco
substantially the same notice (in content and timing) as Belo provides itself and its Affiliates
with respect to such change (but not less than 90 days prior notice in any case); provided, that,
Belo may not make any change to the manner and level at which any Belo Service is provided to
Newspaper Holdco or its Affiliates if such change would result in a violation, or cause Newspaper
Holdco or its Affiliates to be in violation, of applicable Law; provided, further, if Newspaper
Holdco can demonstrate, in accordance with the terms of this Agreement, that such change is not
commercially reasonable and Newspaper Holdco has suffered a material financial harm as a result of
such change, Belo shall be required to restore the manner and level at which such Belo Service is
provided to Newspaper Holdco to the manner and level required by Section 2.03(a). In the event
Belo shall change the manner and level at which any Belo Service is provided to Newspaper Holdco,
the Parties shall mutually agree to any necessary adjustments to the applicable Schedule or
Additional Agreement and the applicable fees and expenses for the applicable Belo Service.

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     (c) Subject to Section 5.05, in no event shall Belo or a Belo Service Provider be liable or
accountable, in damages or otherwise, for any error of judgment or any mistake of fact or Law or
for any action or omission in connection with the provision of the Belo Services by Belo or any
Belo Service Provider that Belo or such Belo Service Provider took or refrained from taking in good
faith hereunder, except in the case of Belo’s or such Belo Service Provider’s intentional breach or
gross negligence.

     Section 2.04 Standard of Performance for Newspaper Holdco Services.  (a) Newspaper
Holdco shall provide, or shall cause to be provided, the Newspaper Holdco Services in a manner and
at a level that is substantially similar in all material respects to the typical manner and average
level at which such Newspaper Holdco Services were provided to Belo or its Affiliates during the 12
month period prior to the Effective Time, except to the extent that (i) a different manner or level
of a Newspaper Holdco Service is set forth in a Schedule or Additional Agreement, in which case
such Newspaper Holdco Service shall be provided in the manner and level as set forth in each such
applicable Schedule or Additional Agreement or (ii) such Newspaper Holdco Service has not been
provided during the 12 month period prior to the Effective Time and the applicable Schedule or
Additional Agreement does not set forth a manner or level at which such Newspaper Holdco Service is
to be provided, in which case, such Newspaper Holdco Service shall be provided in a commercially
reasonable manner.

     (b) Notwithstanding Section 2.04(a), Newspaper Holdco may change from time to time the manner
and level at which any Newspaper Holdco Service is provided to Belo, including, but not limited to,
discontinuing such Newspaper Holdco Service, to the extent that Newspaper Holdco is making a
similar change in performing a substantially similar service for itself and its Affiliates or if
Newspaper Holdco provides Belo substantially the same notice (in content and timing) as Newspaper
Holdco provides itself and its Affiliates with respect to such change (but not less than 90 days
prior notice in any case); provided, that, Newspaper Holdco may not make any change to the manner
and level at which any Newspaper Holdco Service is provided to Belo or its Affiliates if such
change would result in a violation, or cause Belo or its Affiliates to be in violation, of
applicable Law; provided, further, if Belo can demonstrate, in accordance with the terms of this
Agreement, that such change is not commercially reasonable and Belo has suffered a material
financial harm as a result of such change, Newspaper Holdco shall be required to restore the manner
and level at which such Newspaper Holdco Service is provided to Belo to the manner and level
required by Section 2.04(a). In the event Newspaper Holdco shall change the manner and level at
which any Newspaper Holdco Service is provided to Belo, the Parties shall mutually agree to any
necessary adjustments to the applicable Schedule or Additional Agreement and the applicable fees
and expenses for the applicable Newspaper Holdco Service.

     (c) Subject to Section 5.06, in no event shall Newspaper Holdco or a Newspaper Holdco Service
Provider be liable or accountable, in damages or otherwise, for any error of judgment or any
mistake of fact or Law or for any action or omission in connection with the provision of the
Newspaper Holdco Services by Newspaper Holdco or any Newspaper Holdco Service Provider that
Newspaper Holdco or such Newspaper Holdco Service Provider took or refrained from taking in good
faith hereunder, except in the case of Newspaper Holdco’s or such Newspaper Holdco Service
Provider’s intentional breach or gross negligence.

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     Section 2.05 Omitted Belo Services.  If, from time to time during the term of this
Agreement, Newspaper Holdco determines that the provision of an additional service is reasonably
necessary to enable Newspaper Holdco and its Affiliates to operate on a stand-alone basis, and such
service (whether or not then currently being provided) is not included in a Schedule or an
Additional Agreement (such service, including, without limitation the right to use, or the use of,
any Asset (as defined in the Separation and Distribution Agreement) in connection with such
service, hereinafter referred to as an “Additional Belo Service”), then Newspaper Holdco may give
written notice thereof to Belo in accordance with Section 8.01 hereof. Upon receipt of such notice
by Belo, if Belo is willing to provide such Additional Belo Service (and it shall be under no
obligation to do so), the Parties will negotiate in good faith a new Schedule or Additional
Agreement setting forth the Additional Belo Service, the terms and conditions (including any
service level requirements) for the provision of such Additional Belo Service and the fees payable
by Newspaper Holdco for such Additional Belo Service, such fees to be consistent with the business
purposes of the Parties.

     Section 2.06 Omitted Newspaper Holdco Services.  If, from time to time during the term
of this Agreement, Belo determines that the provision of an additional service is reasonably
necessary to enable Belo and its Affiliates to operate on a stand-alone basis, and such service
(whether or not then currently being provided) is not included in a Schedule or an Additional
Agreement (such service, including, without limitation, the right to use, or the use of, any Asset
in connection with such service, herein after referred to as an “Additional Newspaper Holdco
Service”), then Belo may give written notice thereof to Newspaper Holdco in accordance with
Section 8.01 hereof. Upon receipt of such notice by Newspaper Holdco, if Newspaper Holdco is
willing to provide the Additional Newspaper Holdco Service (and it shall be under no obligation to
do so), the Parties will negotiate in good faith a new Schedule or Additional Agreement setting
forth the Additional Newspaper Holdco Service, the terms and conditions (including any service
level requirements) for the provision of such Additional Newspaper Holdco Service and the fees
payable by Belo for such Additional Newspaper Holdco Service, such fees to be consistent with the
business purposes of the Parties.

     Section 2.07 Interruption of Services.  (a) If, due to a Force Majeure Event, Belo or
a Belo Service Provider is unable, wholly or partially, to perform its obligations hereunder or
under any Additional Agreement, then Belo shall be relieved of liability and shall suffer no
prejudice for failing to perform or comply during the continuance and to the extent of such whole
or partial inability to perform its obligations hereunder or thereunder so caused by such Force
Majeure Event; provided, that, (i) Belo gives Newspaper Holdco prompt notice, written or oral (but
if oral, promptly confirmed in writing) of such whole or partial inability to perform its
obligations hereunder or thereunder and a reasonably detailed description of the cause thereof and
(ii) in the event such whole or partial inability to perform its obligations hereunder or
thereunder is a result of Belo’s or such Belo Service Provider’s capacity or similar limitations,
with respect to the allocation of such limited resources, where feasible, Newspaper Holdco and its
Affiliates shall be treated no less favorably by Belo or such Belo Service Provider than Belo or
any Affiliate of Belo. If Belo fails to promptly give notice of such Force Majeure Event, then Belo
shall only be relieved from such performance or compliance from and after the giving of such
notice. Belo shall, or shall cause the applicable Belo Service Provider to, use its commercially
reasonable efforts to remedy the situation caused by such Force Majeure Event and remove, so far as
possible and with reasonable timeliness, the cause of its inability to

7

 

perform or comply. Belo shall give Newspaper Holdco prompt notice of the cessation of the
Force Majeure Event.

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

     Section 2.08 Access.  (a) Newspaper Holdco shall, and shall cause its applicable
Affiliates to, make available on a timely basis to each Belo Service Provider such Information
reasonably requested by such Belo Service Provider to enable such Belo Service Provider to provide
the Belo Services. Newspaper Holdco shall, and shall cause its applicable Affiliates to, provide to
the Belo Service Providers reasonable access to the premises of Newspaper Holdco and such
Affiliates and the systems, Software and networks located therein, to the extent necessary for the
purpose of providing the Belo Services. In connection with such availability and access, Belo shall
ensure that it and the other Belo Service Providers comply with applicable Law and Newspaper
Holdco’s security, confidentiality and other policies and procedures, as may be provided to Belo by
Newspaper Holdco in writing from time to time.

     (b) Belo shall, and shall cause its applicable Affiliates to, make available on a timely basis
to each Newspaper Holdco Service Provider such Information reasonably requested by such Newspaper
Holdco Service Provider to enable such Newspaper Holdco Service Provider to provide the Newspaper
Holdco Services. Belo shall, and shall cause its applicable Affiliates to, provide to the Newspaper
Holdco Service Providers reasonable access to the premises of Belo and such Affiliates and the
systems, Software and networks located therein, to the extent necessary for the purpose of
providing the Newspaper Holdco Services. In connection with such availability and access, Newspaper
Holdco shall ensure that it and the other Newspaper Holdco Service Providers comply with applicable
Law and Belo’s security, confidentiality and other policies and procedures, as may be provided to
Newspaper Holdco by Belo in writing from time to time.

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     Section 2.09 Transition of Responsibilities.  (a) Unless otherwise agreed with
respect to specific services, each Party agrees to use its commercially reasonable efforts to
reduce or eliminate its and its Affiliates’ dependency on each Service as soon as is reasonably
practicable. Belo agrees to cooperate with Newspaper Holdco to facilitate the smooth transition of
responsibility for the Belo Services to Newspaper Holdco or any third party. Newspaper Holdco
agrees to cooperate with Belo to facilitate the smooth transition of responsibility for the
Newspaper Holdco Services to Belo or any third party.

     (b) In furtherance of Section 2.09(a), Belo and Newspaper Holdco will work in good faith to
prepare a plan for Newspaper Holdco to assume responsibility or eliminate the need for the
provision of any particular Belo Service that is intended to be provided on only a short-term basis
(the “Newspaper Holdco Transition Plan”).

     (c) In furtherance of Section 2.09(a), Belo and Newspaper Holdco will work in good faith to
prepare a plan for Belo to assume responsibility or eliminate the need for the provision of any
particular Newspaper Holdco Service that is intended to be provided on only a short-term basis (the
“Belo Transition Plan”).

ARTICLE III

FEES AND EXPENSES

     Section 3.01 Fees and Expenses.  The fees and expenses for each of the Services to be
provided hereunder are set forth in each Schedule or Additional Agreement.

     Section 3.02 Billing and Payment; No Set-off.  Amounts payable in respect of Services
under this Agreement shall be invoiced to the Party receiving such Services monthly in arrears and
paid to the Party providing such Services, as directed by such providing Party, which amounts shall
be due within 45 days after the date of invoice. All amounts due and payable hereunder shall be
invoiced and, except as set forth in any Schedule or in any Additional Agreement, paid in U.S.
dollars without offset, set-off, deduction or counterclaim, however arising, unless the Parties
agree otherwise.

     Section 3.03 Additional Costs.  (a) Newspaper Holdco shall reimburse Belo for the
costs designated in each Schedule and Additional Agreement as reimbursable by Newspaper Holdco. If
it is necessary for Belo or any Belo Service Provider to incur any additional costs in connection
with the provision of the Belo Services, Belo shall inform Newspaper Holdco of such need before any
such additional cost is incurred. Upon mutual written agreement of Newspaper Holdco and Belo, as to
the necessity of any such increase, Newspaper Holdco shall advance, or shall cause to be advanced,
to Belo an amount equal to the estimated costs and expenses to be reasonably incurred in connection
therewith. If the actual costs and expenses incurred by Belo or such Belo Service Provider are
greater than the estimated costs, the necessity of increased costs shall again be subject to the
mutual written agreement of the Parties, and if the Parties cannot agree, Belo shall return the
advance of estimated costs to the extent not previously expended by Belo in connection with the
provision of such Belo Service. If the actual costs and expenses incurred by Belo or such Belo
Service Provider are less than the estimated costs and expenses,

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Belo shall repay, to Newspaper Holdco, the difference between the actual and estimated costs
and expenses.

     (b) Belo shall reimburse Newspaper Holdco for the costs designated in each Schedule and
Additional Agreement as reimbursable by Belo. If it is necessary for Newspaper Holdco or any
Newspaper Holdco Service Provider to incur any additional costs in connection with the provision of
the Newspaper Holdco Services, Newspaper Holdco shall inform Belo of such need before any such
additional cost is incurred. Upon mutual written agreement of Belo and Newspaper Holdco, as to the
necessity of any such increase, Belo shall advance, or shall cause to be advanced, to Newspaper
Holdco an amount equal to the estimated costs and expenses to be reasonably incurred in connection
therewith. If the actual costs and expenses incurred by Newspaper or such Newspaper Service
Provider are greater than the estimated costs, the necessity of increased costs shall again be
subject to the mutual written agreement of the Parties, and if the Parties cannot agree, Newspaper
Holdco shall return the advance of estimated costs to the extent not previously expended by
Newspaper Holdco in connection with the provision of such Newspaper Holdco Service. If the actual
costs and expenses incurred by Newspaper or such Newspaper Service Provider are less than the
estimated costs and expenses, Newspaper Holdco shall repay, to Belo, the difference between the
actual and estimated costs and expenses.

     Section 3.04 Late Payments.  Late payments shall bear interest at a rate per annum
equal to the Prime Rate plus 2%; provided, however, no amount due under this Agreement shall be
considered late unless such amount remains unpaid 90 days following the date of invoice.

     Section 3.05 Taxes. 

     (a) Separate Statement.

     (i) The fees and expenses set forth in the Schedules or Additional Agreements and to be
paid for the services provided pursuant to this Agreement or any Additional Agreement do not
include any amount of sales, use, excise, gross receipts, value added, goods and services,
or any other transaction or revenue based taxes applicable to the provision of the Services
(each such tax, together with any applicable interest, penalties, or additions to tax
imposed with respect to such tax, a “Services Tax”).

     (ii) The Service Provider shall separately state and identify in the invoices, usage
reports, and/or descriptive materials provided (electronically or otherwise) to the Service
Recipient any amount of Services Taxes that the Service Provider undertakes to collect from
the Service Recipient and remit the Services Taxes collected to the appropriate Governmental
Authority or other authority responsible for the collection of such Services Taxes (each a
“Taxing Authority”).

     (b) Good Faith Collection and Identification.

     (i) The Service Provider shall act in good faith to collect from the Service Recipient
and remit to the appropriate Taxing Authority those Services Taxes imposed by the
jurisdictions in which the Service Provider is subject to taxation based on the Services
provided; provided, however, that the delivery by the Service Recipient to the Service

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Provider of a resale certificate, exemption certificate, or self-pay permit shall be
deemed to be the equivalent of good faith collection and remission.

     (ii) The Service Provider shall act in good faith to describe the services rendered
pursuant to this Agreement or any Additional Agreement in the invoices, usage reports,
and/or descriptive materials provided (electronically or otherwise) to the Service Recipient
with specificity sufficient to determine the applicability of Services Taxes.

     (iii) The Service Recipient, pursuant to this Agreement or any Additional Agreement,
shall act in good faith to identify the physical location and taxing jurisdictions in which
its receives the benefit of the Services provided in the purchase orders, usage reports,
and/or descriptive materials provided (electronically or otherwise) to the Service Provider
to determine the applicability of Services Taxes.

     (c) Indemnification.

     (i) The Service Recipient, pursuant to this Agreement or any Additional Agreement,
shall be solely liable for the payment of any Services Tax applicable to such receipt,
without regard to the identity of the Party on whom the Liability for the Services Tax is
imposed by statute, regulation, or otherwise, unless the payment of such Services Tax by the
Service Recipient is prohibited by Law.

     (A) It is the sole responsibility of the Service Recipient pursuant to this
Agreement, to provide the Service Provider with all geographic and jurisdictional
Information necessary to determine the Services Taxes applicable to the provision of
Services under this Agreement, and any failure to provide such Information shall
relieve the Service Provider from responsibility for any act or failure to act
resulting in the imposition of an incorrect amount of Services Tax or otherwise
avoidable multiple impositions of Services Tax.

     (B) The failure of the Service Provider to separately state, collect, and/or
remit any applicable Services Tax shall not relieve the Service Recipient, pursuant
to this Agreement or any Additional Agreement, from Liability for the payment of any
applicable Services Tax.

     (ii) Except to the extent of the Service Provider’s intentional breach or gross
negligence, the Service Recipient shall indemnify and hold the Service Provider harmless
from any Liability arising from any failure to separately state, collect, and/or remit any
applicable Services Tax, plus any reasonable costs, fees, and expenses incurred by the
Service Provider in the defense of such Liability.

     (iii) The Service Provider shall have no Liability for any over-collection of Services
Taxes from the Service Recipient, pursuant to this Agreement, that are remitted to a Taxing
Authority as long as such over-collection was made in good faith; provided, however, that if
the Service Provider is a necessary party to the filing of a claim for the refund of any
over-collected Services Taxes, then the Service Provider shall reasonably cooperate with the
Service Recipient pursuant to this Agreement in the preparation and filing of the such
refund claim.

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     (iv) No Limitation on Liability.

     (A) Any other provision of this Agreement or any Additional Agreement to the
contrary notwithstanding, the indemnification provided pursuant to this
Section 3.05(c) shall not be subject to or included in the computation of the
maximum liability limitation set forth in either Section 5.07(a) or Section 5.07(b)
of this Agreement.

     (B) Any other provision of this Agreement or any Additional Agreement to the
contrary notwithstanding, the indemnification provided pursuant to this
Section 3.05(c) shall not be subject to the restriction on incidental,
consequential, and punitive damages set forth in Section 5.07(c) of this Agreement
to the extent that such damages are imposed by or arise as a result of the
collection of a Services Tax by a Taxing Authority.

     (d) This Agreement contemplates that the legal relationship between the Service Provider and
the Service Recipient may vary with the services being provided and that a Service Provider may be
simultaneously acting in one or more of the following capacities: (i) purchasing agent,
(ii) reseller and/or (iii) provider of services.

     (i) In the event the Service Provider purchases services from a third-party provider
for use and consumption by the Service Recipient “as acquired” and the contractual
relationship with the third-party provider allows for the purchase of the services by both
Parties, the Service Provider shall be the appointed purchasing agent of the Service
Recipient and the administration of the Services Taxes shall reflect such agency
relationship.

     (ii) In the event the Service Provider purchases services from a third-party provider
for use and consumption by the Service Recipient “as acquired” and the contractual
relationship with the third-party provider does not allow for the purchase of the services
by both of the Parties, the Service Provider shall resell the services to the Service
Recipient and the administration of the Services Taxes shall reflect such reseller
relationship.

     (iii) In the event the Service Provider either (i) modifies services acquired from a
third-party provider for delivery of Services to the Service Recipient, (ii) incorporates
services acquired from a third-party provider into Services for delivery to the Service
Recipient, or (iii) provides Services to the Service Recipient without the purchase of
services acquired from a third-party provider, the Service Provider shall be deemed to be
the provider of the services and the administration of the Services Taxes shall reflect such
provision of services by the Service Provider.

     (e) Each Party shall withhold and pay over to the Governmental Authority responsible for the
collection of any amount of income tax or other assessment, charge, regulatory fee or other amount
required by Law to be withheld from payments made to the other Party pursuant to this Agreement or
any Additional Agreement (the “Withheld Tax” ), and the

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Withheld Tax shall be credited to the account of the Party from whose payment the Withheld Tax
was withheld.

     (f) Any other provision of this Agreement or any Additional Agreement to the contrary
notwithstanding, no Party shall be responsible for any taxes imposed on the other Party measured by
income, capital, or resulting from the existence or general Business operations of the other Party
other than those resulting from an indemnified Loss including, but not limited to, any amount of
Withheld Tax.

     (g) It is hereby acknowledged that a Service Provider may pay Services Taxes to a Taxing
Authority or a third-party vendor and such Service Provider may not be capable of identifying or
communicating Information regarding such payment to the Service Recipient. The Parties shall
cooperate to identify purchases on which Services Taxes have been previously paid or remitted to
reduce the occurrence of any over-collection of such Services Taxes.

     (h) Subject to Sections 5.10 and 8.09, the Parties agree to and shall, from time to time, do
and perform such other and further acts, and execute and deliver any and all such other and further
instruments as may be required by Law or reasonably requested by the other Party to establish,
maintain, and protect the respective rights and remedies of the other Party as provided in this
Agreement with respect to Services Taxes and Withheld Taxes.

ARTICLE IV

CONFIDENTIALITY

     Section 4.01 Confidentiality Obligations.  (a) Each Party acknowledges (i) that such
Party has in its possession and in connection with the provision of Services hereunder, such Party
will receive Information of the other Party that is not available to the general public, and
(ii) that such Information may constitute, contain or include material non-public Information of
the other Party. Subject to Section 4.01(c), Belo, on behalf of itself and each of its Affiliates,
and Newspaper Holdco, on behalf of itself and each of its Affiliates, agrees to hold, and to cause
its respective directors, officers, employees, agents, third party contractors, vendors, Service
Providers, accountants, counsel and other advisors and representatives to hold, in strict
confidence, with at least the same degree of care that such Party applies to its own confidential
and proprietary Information pursuant to its applicable policies and procedures in effect as of the
Effective Time, all Information concerning the other Party (or its Business) and such other Party’s
Affiliates (or their respective Businesses) that is either in its possession (including Information
in its possession prior to the Effective Time) or furnished by the other Party or the other Party’s
Affiliates or their respective directors, officers, employees, agents, third party contractors,
vendors, Service Providers, accountants, counsel and other advisors and representatives at any time
pursuant to this Agreement or any Additional Agreement, and will not use such Information other
than for such purposes as may be expressly permitted hereunder or thereunder, except, in each case,
to the extent that such Information: (i) is or becomes available to the general public, other than
as a result of a disclosure by such Party or its Affiliates or any of their respective directors,
officers, employees, agents, third party contractors, vendors, Service Providers, accountants,
counsel and other advisors and representatives in breach of this Agreement or any Additional
Agreement; (ii) was available to such Party or its Affiliates or

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becomes available to such Party or its Affiliates, on a non-confidential basis from a source
other than the other Party hereto; provided, that, the source of such Information was not bound by
a confidentiality obligation with respect to such Information, or otherwise prohibited from
transmitting the Information to such Party or its Affiliates by a contractual, legal or fiduciary
obligation; or (iii) is independently generated by such Party without use of or reference to any
proprietary or confidential Information of the other Party.

     (b) No Release, Compliance with Law, Return or Destruction.  Each Party agrees not to
release or disclose, or permit to be released or disclosed, any such Information to any other
Person, except its directors, officers, employees, agents, third party contractors, vendors,
Service Providers, accountants, counsel, lenders, investors and other advisors and representatives
who need to know such Information in order to provide the Services pursuant to this Agreement, and
except in compliance with Section 4.01(c). Notwithstanding anything herein to the contrary, each
Party shall advise its directors, officers, employees, agents, third party contractors, vendors,
Service Providers, accountants, counsel, lenders, investors and other advisors and representatives
who have been provided with such Information of such Party’s confidentiality obligations hereunder
and that such Information may constitute, contain or include material non-public Information of the
other Party. Each Party shall, and shall cause, its directors, officers, employees, agents, third
party contractors, vendors, Service Providers, accountants, counsel, lenders, investors and other
advisors and representatives who have been provided with such Information to use such Information
only in accordance with (i) the terms of this Agreement or any Additional Agreement and
(ii) applicable Law (including federal and state securities Laws). Each Party shall promptly, after
receiving a written request of the other Party, return to the other Party all such Information in a
tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or
certify to the other Party that it has destroyed such Information (and such copies thereof and such
notes, extracts or summaries based thereon), as directed by the other Party.

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

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ARTICLE V

NO WARRANTY; LIMITATION OF LIABILITY; INDEMNIFICATION;

ESCALATION

     Section 5.01 Warranties and Disclaimer of Warranty by Belo.  (a) Belo represents and
warrants to Newspaper Holdco as of the date hereof and at all times during which the Belo Services
are provided to Newspaper Holdco, that:

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

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

     (b) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY ADDITIONAL AGREEMENT, THE BELO
SERVICES TO BE PURCHASED UNDER THIS AGREEMENT OR IN ANY ADDITIONAL AGREEMENT ARE PROVIDED AS IS,
WHERE IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OR CONDITION OF ANY KIND, EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR ANY OTHER
WARRANTY WHATSOEVER.

     Section 5.02 Warranties and Disclaimer of Warranty by Newspaper Holdco. (a) Newspaper
Holdco represents and warrants to Belo as of the date hereof and at all times during which the
Newspaper Holdco Services are provided to Belo, that:

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

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

     (b) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY ADDITIONAL AGREEMENT, THE
NEWSPAPER HOLDCO SERVICES TO BE PURCHASED UNDER THIS AGREEMENT OR IN ANY ADDITIONAL AGREEMENT ARE
PROVIDED AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OR CONDITION OF ANY KIND, EXPRESS
OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR ANY
OTHER WARRANTY WHATSOEVER.

     Section 5.03 Third Parties and Belo Services.  (a) Belo and Newspaper Holdco shall
cooperate to obtain all required Consents sufficient to enable the Belo Service Providers to
perform the Belo Services in accordance with this Agreement or any Additional Agreement for any
third party Software or other Intellectual Property related to the provision of the Belo Services;
provided, that, Belo shall not be required to incur any out-of-pocket costs in connection
therewith. Newspaper Holdco will cooperate with Belo in obtaining all such required Consents
related to the provision of the Belo Services and Newspaper Holdco shall bear any out-of-pocket
costs incurred in connection therewith, provided, further, that Newspaper Holdco shall only be
required to reimburse Belo for those expenses incurred by Belo that Newspaper Holdco has previously
approved in writing. In the event that any such Consent is not obtained, then, unless and until
such Consent is obtained, during the term of the applicable Schedule or as specified in an
Additional Agreement, the Parties shall cooperate with each other in achieving a reasonable
alternative arrangement with respect to such third party Software or Intellectual Property for
Newspaper Holdco to continue to process its work and for the Belo Service Providers to perform the
Belo Services.

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

     Section 5.04 Third Parties and Newspaper Holdco Services.  (a) Belo and Newspaper
Holdco shall cooperate to obtain all required Consents sufficient to enable the Newspaper Holdco
Service Providers to perform the Newspaper Holdco Services in accordance with this Agreement or any
Additional Agreement for any third party Software or other Intellectual Property related to the
provision of the Newspaper Holdco Services; provided, that, Newspaper Holdco shall not be required
to incur any out-of-pocket costs in connection therewith. Belo will cooperate with Newspaper
Holdco in obtaining all such required Consents related to the provision of the Newspaper Holdco
Services and shall bear any out-of-pocket costs in connection therewith; provided, further, that
Belo shall only be required to reimburse Newspaper Holdco for those expenses incurred by Newspaper
Holdco that Belo has previously approved in writing. In the event that any such Consent is not
obtained, then, unless and until such Consent

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is obtained, during the term of the applicable Schedule or as specified in an Additional
Agreement, the Parties shall cooperate with each other in achieving a reasonable alternative
arrangement with respect to such third party Software or Intellectual Property for Belo to continue
to process its work and for the Newspaper Holdco Service Providers to perform the Newspaper Holdco
Services.

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

     Section 5.05 Obligation to Re-perform Belo Services.  In the event of any breach of
this Agreement or any Additional Agreement by Belo or any other Belo Service Provider with respect
to any failure by Belo or a Belo Service Provider, as applicable, to provide any Belo Service in
accordance with the terms of this Agreement or any Additional Agreement, Belo shall, or shall cause
the applicable Belo Service Provider to, correct in all material respects such failure, error or
defect or re-perform in all material respects such Belo Service at the request of Newspaper Holdco
and at the expense of Belo. To be effective, any such request by Newspaper Holdco must (i) specify
in reasonable detail the particular failure, error or defect and (ii) be made no more than 90 days
from the date such error or defect was discovered by Newspaper Holdco or should have been
discovered by Newspaper Holdco after reasonable inquiry.

     Section 5.06 Obligation to Re-perform Newspaper Holdco Services.  In the event of any
breach of this Agreement or any Additional Agreement by Newspaper Holdco or any other Newspaper
Holdco Service Provider with respect to any failure by Newspaper Holdco or a Newspaper Holdco
Service Provider, as applicable, to provide any Newspaper Holdco Service in accordance with the
terms of this Agreement or any Additional Agreement, Newspaper Holdco shall, or shall cause the
applicable Newspaper Holdco Service Provider to, correct in all material respects such failure,
error or defect or re-perform in all material respects such Newspaper Holdco Service at the request
of Belo and at the expense of Newspaper Holdco. To be effective, any such request by Belo must
(i) specify in reasonable detail the particular failure, error or defect and (ii) be made no more
than 90 days from the date such error or defect was discovered by Belo or should have been
discovered by Belo after reasonable inquiry.

     Section 5.07 Limitation of Liability.  NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY:

     (a) EXCEPT FOR ANY LIABILITIES THAT MAY BE INCURRED UNDER SECTION 3.05(c), THE MAXIMUM
LIABILITY OF BELO TO, AND (EXCEPT AS SET FORTH IN SECTION 5.05) THE SOLE REMEDY OF, NEWSPAPER
HOLDCO AND ITS AFFILIATES (AND THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS, VENDORS, NEWSPAPER
HOLDCO SERVICE PROVIDERS AND EMPLOYEES) WITH RESPECT TO ANY AND ALL CLAIMS ARISING IN CONNECTION
WITH THE PROVISION OF THE BELO SERVICES BY BELO OR ANY BELO SERVICE PROVIDER, REGARDLESS OF THE
THEORY UPON WHICH THE LIABILITY IS PREMISED, SHALL NOT EXCEED THE GROSS FEES RECEIVED BY BELO OR
THE BELO SERVICE PROVIDER WITH RESPECT TO THE PROVISION OF THE BELO SERVICES TO WHICH SUCH CLAIM

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RELATES IN THE MONTHLY PERIODS IN WHICH THE ACTION OR OMISSION OF BELO THAT GAVE RISE TO SUCH
CLAIM OCCURRED OR WAS PENDING;

     (b) EXCEPT FOR ANY LIABILITIES THAT MAY BE INCURRED UNDER SECTION 3.05(c), THE MAXIMUM
LIABILITY OF NEWSPAPER HOLDCO TO, AND (EXCEPT AS SET FORTH IN SECTION 5.06) THE SOLE REMEDY OF,
BELO AND ITS AFFILIATES (AND THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS, VENDORS, BELO SERVICE
PROVIDERS AND EMPLOYEES) WITH RESPECT TO ANY AND ALL CLAIMS ARISING IN CONNECTION WITH THE
PROVISION OF THE NEWSPAPER HOLDCO SERVICES BY NEWSPAPER HOLDCO OR ANY OTHER NEWSPAPER HOLDCO
SERVICE PROVIDER, REGARDLESS OF THE THEORY UPON WHICH THE LIABILITY IS PREMISED, SHALL NOT EXCEED
THE GROSS FEES RECEIVED BY NEWSPAPER HOLDCO OR THE NEWSPAPER HOLDCO SERVICE PROVIDER WITH RESPECT
TO THE PROVISION OF THE NEWSPAPER HOLDCO SERVICES TO WHICH SUCH CLAIM RELATES IN THE MONTHLY
PERIODS IN WHICH THE ACTION OR OMISSION OF NEWSPAPER HOLDCO THAT GAVE RISE TO SUCH CLAIM OCCURRED
OR WAS PENDING;

     (c) EXCEPT FOR ANY LIABILITIES THAT MAY BE INCURRED UNDER SECTION 3.05(c), IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES (OR THEIR RESPECTIVE DIRECTORS,
OFFICERS, AGENTS, SERVICE PROVIDERS OR EMPLOYEES) FOR INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, ITS AFFILIATES AND
THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS, SERVICE PROVIDERS AND EMPLOYEES ANY CLAIM FOR SUCH
DAMAGES INCLUDING ANY CLAIM FOR PROPERTY DAMAGE OR LOST PROFITS, WHETHER ARISING IN CONTRACT, TORT
OR OTHERWISE;

     (d) IN NO EVENT SHALL BELO BE LIABLE FOR THE ACTS OR OMISSIONS OF THIRD PARTY BELO SERVICE
PROVIDERS TO THE EXTENT THAT BELO HAS EMPLOYED COMMERCIALLY REASONABLE EFFORTS TO INDUCE OR CAUSE
SUCH THIRD PARTY BELO SERVICE PROVIDERS TO PROVIDE THE BELO SERVICES IN ACCORDANCE WITH THE MANNER
AND LEVELS AGREED TO HEREUNDER; AND

     (e) IN NO EVENT SHALL NEWSPAPER HOLDCO BE LIABLE FOR THE ACTS OR OMISSIONS OF THIRD PARTY
NEWSPAPER HOLDCO SERVICE PROVIDERS TO THE EXTENT THAT NEWSPAPER HOLDCO HAS EMPLOYED COMMERCIALLY
REASONABLE EFFORTS TO INDUCE OR CAUSE SUCH THIRD PARTY NEWSPAPER HOLDCO SERVICE PROVIDERS TO
PROVIDE THE NEWSPAPER HOLDCO SERVICES IN ACCORDANCE WITH THE MANNER AND LEVELS AGREED TO HEREUNDER.

     Section 5.08 Belo Indemnity.  Subject to the limitations set forth in Section 5.07,
Belo shall indemnify and hold harmless Newspaper Holdco and its Affiliates (and their respective
directors, officers, agents, Newspaper Holdco Service Providers and employees) from and against any
and all claims, demands, complaints, damages, losses, liabilities, costs or expenses

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(each of the foregoing, a “Loss”) arising out of, relating to or in connection with (i) any
Action that determined that the provision by any Belo Service Provider and/or the receipt by
Newspaper Holdco or its Affiliates of any Belo Service infringes upon or misappropriates the
Intellectual Property of any third party, to the extent that any such Loss is determined to have
resulted from Belo’s or such Belo Service Provider’s intentional breach or gross negligence, or
(ii) any action or omission by Newspaper Holdco or a Newspaper Holdco Service Provider in providing
the Newspaper Holdco Services hereunder, except to the extent any such Loss arises from Newspaper
Holdco’s or such Newspaper Holdco Service Provider’s intentional breach or gross negligence.

     Section 5.09 Newspaper Holdco Indemnity.  Subject to the limitations set forth in
Section 5.07, Newspaper Holdco shall indemnify and hold harmless Belo and its Affiliates (and their
respective directors, officers, agents, Belo Service Providers and employees) from and against any
and all Losses arising out of, relating to or in connection with (i) any Action that determined
that the provision by any Newspaper Holdco Service Provider and/or the receipt by Belo or its
Affiliates of any Newspaper Holdco Service infringes upon or misappropriates the Intellectual
Property of any third party, to the extent that any such Loss is determined to have resulted from
Newspaper Holdco’s or such Newspaper Holdco Service Provider’s intentional breach or gross
negligence, or (ii) any action or omission by Belo or a Belo Service Provider in providing the Belo
Services hereunder, except to the extent any such Loss arises from Belo’s or such Belo Service
Provider’s intentional breach or gross negligence.

     Section 5.10 Negotiation.  In the event that any dispute arises between the Parties
that cannot be resolved pursuant to any escalation path set forth in a Schedule or any Additional
Agreement, either Party shall have the right to refer the dispute for resolution to the chief
financial officers of each Party by delivering to the other Party a written notice of such referral
(a “Dispute Notice”). Following receipt of a Dispute Notice, the chief financial officers shall
negotiate in good faith to resolve such dispute. In the event that the chief financial officers are
unable to resolve such dispute within 30 days after the date of the Dispute Notice, either Party
shall have the right to refer the dispute to the chief executive officers of the Parties, who shall
negotiate in good faith to resolve such dispute. In the event that the chief executive officers of
the Parties are unable to resolve such dispute within 60 days after the date of the Dispute Notice,
either Party shall have the right to commence litigation in accordance with Section 8.09 hereof.
The Parties agree that all discussions, negotiations and other Information exchanged between the
Parties during the foregoing escalation proceedings shall be without prejudice to the legal
position of a Party in any subsequent Action.

     Section 5.11 Indemnification Rights. Except to the extent otherwise expressly
provided herein to the contrary, the indemnification rights set forth in this Article V, as well as
in any other provision of this Agreement or any Additional Agreement, shall be applicable
notwithstanding the negligence, whether simple, contributory or gross, of the particular
indemnified party.

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ARTICLE VI

ACCESS TO INFORMATION

     Section 6.01 Access to Belo Records.  If requested by Newspaper Holdco, Belo shall and
shall cause each Belo Service Provider to permit Newspaper Holdco reasonable access (in addition to
the access required by Section 2.08(b)) to its respective books, records, accountants, accountants’
work papers, personnel and facilities for the purpose of Newspaper Holdco’s testing and
verification of the effectiveness of each Belo Service Provider’s controls with respect to Belo
Services as is reasonably necessary to enable the management of Newspaper Holdco to comply with its
obligations under SOX § 404 and to enable Newspaper Holdco’s independent public accounting firm to
attest to and report on the assessment of the management of Newspaper Holdco in accordance with SOX
§ 404 and Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed
in Conjunction with an Audit of Financial Statements (“Auditing Standard No. 2”), as amended, or as
otherwise required by Newspaper Holdco’s external auditors; provided, however, that in lieu of
providing such access, Belo may, in its sole discretion, instead furnish Newspaper Holdco with a
Statement on Auditing Standards (SAS) No. 70, Service Organizations, Type II audit (“SAS 70 Audit”)
report; and provided, further, that Belo shall not be required to furnish Newspaper Holdco access
to any Information other than Information that relates specifically to Belo Services.

     Section 6.02 Access to Newspaper Holdco Records.  If requested by Belo, Newspaper
Holdco shall and shall cause each Newspaper Holdco Service Provider to permit Belo reasonable
access (in addition to the access required by Section 2.08(a)) to its respective books, records,
accountants and accountants’ work papers, personnel and facilities for the purpose of Belo’s
testing and verification of the effectiveness of each Newspaper Holdco Service Provider’s controls
with respect to Newspaper Holdco Services as is reasonably necessary to enable the management of
Belo to comply with its obligations under SOX §404 and Belo’s independent public accounting firm to
attest to and report on the assessment of the management of Belo in accordance with SOX §404 and
Auditing Standard No. 2, as amended, or as otherwise required by Belo’s external auditors;
provided, however, that in lieu of providing such access, Newspaper Holdco may, in its sole
discretion, instead furnish Belo with a SAS 70 Audit report; and provided, further, that Newspaper
Holdco shall not be required to furnish Belo access to any Information other than Information that
relates specifically to Newspaper Holdco Services.

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

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

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

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     (c) each Party as Service Provider shall provide to the other Party, its auditors and any
third party that such other Party has retained to assist it with its SOX §404 compliance (subject
to such third party’s having signed an appropriate confidentiality agreement with the Party that is
providing the relevant Information), no later than the 30th day of the last month of each fiscal
quarter ending in March, June, September and December during which the Service Provider provided a
Service comprising a significant process to the other Party, adequate documentation with respect to
the testing of its controls over the significant processes;

     (d) in the event any deficiencies are found as a result of the testing, the Service Provider
and the Service Recipient shall cooperate in good faith to develop and implement commercially
reasonable action plans and timetables to remedy such deficiencies and/or implement adequate
compensating controls; provided, however, that if a Party as Service Provider provides a
substantially similar service for itself or its Affiliates, then such Party as Service Provider
shall not be required to take any actions that are different from the actions that such Party is
taking with respect to such services that it provides for itself or its Affiliates, unless the
control deficiency is or could reasonably be expected to be a material weakness in the Service
Recipient’s internal control over financial reporting (and the Service Recipient shall share its
analysis in this regard with the Service Provider), in which case the Service Provider shall
cooperate in good faith with the Service Recipient to develop and implement in a timely fashion
commercially reasonable action plans and timetables to remedy the deficiency and/or implement
adequate compensating controls such that the deficiency will not rise to the level of a material
weakness; provided further, that, if, as a result of such remedy and/or implementation, the Service
Provider is required to take actions that are materially different than the actions that the
Service Provider is taking with respect to the substantially similar services that it provides for
itself or its Affiliates, the Service Recipient shall be obligated to fund the incremental costs
incurred by the Service Provider, including all out-of-pocket incremental costs, plus a reasonable
allocation of costs of employees who are diverted from providing services that such employees would
otherwise be providing to the Service Provider during the period of such remedy and/or
implementation;

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

     (f) in the event that Sections 6.03(a)-(e) hereof do not reasonably enable the Service
Recipient to comply with its obligations under SOX §404 and to enable the Service Recipient’s
registered public accounting firm to attest to and report on the assessment by the management of
the Service Recipient in accordance with SOX §404 and Auditing Standard No. 2, then upon reasonable
notice, the Service Recipient shall be permitted to conduct, at its own expense, an independent
audit of the Service Provider’s controls with respect to the Services solely to the extent
necessary to accomplish such purpose or purposes.

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ARTICLE VII

TERM; TERMINATION

     Section 7.01 Term.  This Agreement shall commence at the Effective Time and, unless
terminated earlier in accordance with this Article VII, will terminate on the last date on which
all Schedules and Additional Agreements have expired or been terminated.

     Section 7.02 Early Termination.  (a) A Service Recipient may terminate any Service
upon 90 days prior notice to the other Party for any or for no reason.

     (b) In the event that pursuant to Section 2.07, a Service Provider reduces or suspends the
provision of any Service due to a Force Majeure Event and such reduction or suspension continues
for 15 days, the other Party may immediately terminate the applicable Schedule or Additional
Agreement, upon written notice and without any reimbursement obligation, except as provided in
Section 7.04.

     Section 7.03 Breach of Agreement.  Subject to Article V, if either Party shall cause
or suffer to exist any material breach of any of its obligations under this Agreement or any
Additional Agreement, including any failure to make payments when due, and that Party does not cure
such default in all material respects within 30 days after receiving written notice thereof from
the non-breaching Party, the non-breaching Party may terminate each affected Schedule or Additional
Agreement, including the provision of Services pursuant thereto, immediately by providing written
notice of termination.

     Section 7.04 Sums Due.  (a) In the event of a termination (including any termination
pursuant to Section 7.02) or expiration of this Agreement or any Additional Agreement (or Services
under one or more Schedules or Additional Agreements), Belo shall be entitled to the payment or
reimbursement of, and Newspaper Holdco shall, or shall cause its applicable Affiliates to, pay and
reimburse Belo, on the date of such termination or expiration (i) all amounts due to Belo or any
Belo Service Provider under this Agreement or any Additional Agreement and (ii) all amounts accrued
in connection with the provision of Belo Services through the date of such termination or
expiration that are not yet due and payable to Belo or any Belo Service Provider under this
Agreement or any Additional Agreement, as if such amounts were due and payable on the date of such
termination or expiration.

     (b) In the event of a termination (including any termination pursuant to Section 7.02) or
expiration of this Agreement or any Additional Agreement (or Services under one or more Schedules
or any Additional Agreement), Newspaper Holdco shall be entitled to the payment or reimbursement
of, and Belo shall, or shall cause its applicable Affiliates to, pay and reimburse Newspaper
Holdco, on the date of such termination or expiration (i) all amounts due to Newspaper Holdco or
any Newspaper Holdco Service Provider under this Agreement or any Additional Agreement and (ii) all
amounts accrued in connection with the provision of the Newspaper Holdco Services through the date
of such termination or expiration that are not yet due and payable to Newspaper Holdco or any
Newspaper Holdco Service Provider under this Agreement or any Additional Agreement, as if such
amounts were due and payable on the date of such termination or expiration.

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     Section 7.05 Effect of Termination.  Articles I, III, IV, VI and VIII and Sections
5.01(a)(i), 5.01(b), 5.02(a)(i), 5.02(b), 5.07, 5.08, 5.09, 5.10, 7.04 and this 7.05 shall survive
any termination of this Agreement.

ARTICLE VIII

MISCELLANEOUS

     Section 8.01 Notices.  All notices, requests and other communications hereunder
(except for routine communications contemplated by certain Schedules) must be in writing and will
be deemed to have been duly given only if delivered personally or by facsimile transmission or
mailed (first class postage prepaid) to the Parties at the following addresses or facsimile
numbers:

If to Belo, to:

Belo Corp.

400 South Record Street

Dallas, Texas 75202

Attn: Chief Executive Officer

Fax No.: (214) 977-8209

with a copy to:

Belo Corp.

400 South Record Street

Dallas, Texas 75202

Attn: Chief Financial Officer

Fax No.: (214) 977-8209

If to Newspaper Holdco, to:

A. H. Belo Corporation

400 South Record Street

Dallas, Texas 75202

Attn: Chief Executive Officer

Fax No.: (214) 977-8209

with a copy to:

A. H. Belo Corporation

400 South Record Street

Dallas, Texas 75202

Attn: Chief Financial Officer

Fax No.: (214) 977-6899

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

     Section 8.02 Entire Agreement.  This Agreement, together with all exhibits and
Schedules, any Additional Agreements, the Separation and Distribution Agreement and the other
Ancillary Agreements, constitutes the entire agreement of the parties with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and writings with respect
to such subject matter.

     Section 8.03 Waiver.  Any term or condition of this Agreement or any Additional
Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no
such waiver shall be effective unless set forth in a written instrument duly executed by or on
behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition
of this Agreement or any Additional Agreement, in any one or more instances, shall be deemed or
construed as a waiver of the same or any other term or condition of this Agreement or any
Additional Agreement on any future occasion. All remedies, either under this Agreement or any
Additional Agreement or by Law or otherwise afforded, will be cumulative and not alternative.

     Section 8.04 Amendment.  This Agreement and any Additional Agreement may be amended,
supplemented, modified or superseded only by a written instrument signed by duly authorized
signatories of the Parties hereto or thereto.

     Section 8.05 Independent Contractors.  In performing the Services, each Service
Provider shall operate as and have the status of an independent contractor. No Service Provider’s
employees shall be considered employees or agents of the other Party, nor shall the employees of
any Party be eligible or entitled to any benefits, perquisites or privileges given or extended to
any of the other Party’s employees in connection with the provision of Services. Nothing contained
in this Agreement or any Additional Agreement shall be deemed or construed to create a joint
venture or partnership between the Parties. No Party shall have any power to control the activities
and/or operations of the other Party. No Party shall have any power or authority to bind or commit
any other Party.

     Section 8.06 No Third Party Beneficiary.  The terms and provisions of this Agreement
and any Additional Agreement are intended solely for the benefit of each Party hereto and thereto
and their respective Affiliates, successors or permitted assigns, and it is not the intention of
the Parties to confer third party beneficiary rights upon any other Person.

     Section 8.07 No Assignment; Binding Effect.  Neither this Agreement (nor any
Additional Agreement) nor any right, interest or obligation hereunder (or thereunder) may be

24

 

assigned by any Party hereto (or thereto) without the prior written consent of the other Party
hereto (or thereto) and any attempt to do so will be void, except that each Party may assign any or
all of its rights, interests and obligations hereunder or under any Additional Agreement to an
Affiliate, provided, that, any such Affiliate agrees in writing to be bound by all of the terms,
conditions and provisions contained herein and that no assignment by a Party shall relieve such
Party of any of its obligations under this Agreement unless agreed to by the non-assigning Party.
Subject to the preceding sentence, this Agreement is binding upon, inures to the benefit of and is
enforceable by the Parties hereto and their respective successors and permitted assigns.

     Section 8.08 Headings.  The headings used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions hereof.

     Section 8.09 Submission to Jurisdiction; Waivers.  Subject to the prior exhaustion of
the negotiation procedures set forth in Section 5.10 and to the fullest extent permitted by
applicable Law, each Party hereto (i) agrees that any claim, action or proceeding by such party
seeking any relief whatsoever arising out of, relating to or in connection with, this Agreement or
any Additional Agreement or the transactions contemplated hereby or thereby shall be brought only
in the United States District Court for the Northern District of Texas or any Texas State court, in
each case, located in Dallas County and not in any other State or Federal court in the United
States of America or any court in any other country, (ii) agrees to submit to the exclusive
jurisdiction of such courts located in Dallas County for purposes of all legal proceedings arising
out of, or in connection with, this Agreement and the transactions contemplated hereby,
(iii) waives and agrees not to assert any objection that it may now or hereafter have to the laying
of the venue of any such action brought in such a court or any claim that any such action brought
in such a court has been brought in an inconvenient forum, (iv) agrees that mailing of process or
other papers in connection with any such action or proceeding in the manner provided in
Section 8.01 or any other manner as may be permitted by Law shall be valid and sufficient service
thereof and (v) agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by applicable Law.

     Section 8.10 Severability.  If any provision of this Agreement or any Additional
Agreement is held to be illegal, invalid or unenforceable under any present or future Law, the
remaining provisions of this Agreement or any Additional Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable provision or by its
severance herefrom or therefrom.

     Section 8.11 Governing Law.  This Agreement and any Additional Agreement and any
dispute arising out of, in connection with or relating to this Agreement or any Additional
Agreement shall be governed by and construed in accordance with the Laws of the State of Texas,
without giving effect to the conflicts of laws principles thereof.

     Section 8.12 Counterparts.  This Agreement and any Additional Agreement may be
executed in any number of counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

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     Section 8.13 Order of Precedence.  In the event of an inconsistency or conflict
between this Agreement, a Schedule and any Additional Agreement, the Additional Agreement or
Schedule shall prevail over this Agreement, and the Additional Agreement shall prevail over a
Schedule. In the event of an inconsistency or conflict between any Additional Agreement and an
attachment or exhibit thereto, the Additional Agreement shall prevail over the attachment or
exhibit thereto.

     Section 8.14 Ownership of and License to Data.  (a) It is acknowledged and agreed
that (i) Belo retains all right, title and interest in and to all Belo Data and nothing herein
shall create or vest in Newspaper Holdco any right, title or interest in or to the Belo Data and
(ii) Newspaper Holdco retains all right, title and interest in and to all Newspaper Holdco Data and
nothing herein shall create or vest in Belo any right, title or interest in or to the Newspaper
Holdco Data: and

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

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

26

 

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

	 	 	 	 	 
	 	BELO CORP.

 	 
	 	By:  	/s Dennis A. Williamson
 	 
	 	 	Name:  	Dennis A. Williamson 	 
	 	 	Title:  	Executive Vice President/Chief
Financial Officer 	 
	 

	 	 	 	 	 
	 	A. H. BELO CORPORATION

 	 
	 	By:  	/s/ Alison K. Engel
 	 
	 	 	Name:  	Alison K. Engel 	 
	 	 	Title:  	Senior Vice President/Chief
Financial Officer and Treasurer 	 

27

 

	 	 	 	 	 

Exhibit A

Belo Services and Newspaper Holdco Services

Information Technology Services

Interactive Media Services

Real Estate Management Services

Internal Audit Services

Media Content and Cross Promotion Services

Web Site Maintenance Services

Legal Services

Employee Benefit Plan Administration Services

Payroll and Other Financial Management Services

28

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