Document:

Form of Employee Matters Agreement

 Exhibit 10.4 
  
  
 EMPLOYEE MATTERS AGREEMENT 
 by and between 
 BELO CORP. 
 and 
 A. H. BELO CORPORATION 

Dated as of February         , 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     , 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. 
  

 2 

 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. 
  

 3 

 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 

  

 4 

 
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 

  

 5 

 
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 

  

 6 

 
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. 
  

 7 

 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 

  

 8 

 
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 

  

 9 

 
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 

  

 10 

 
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.: [intentionally left blank] 
 With a copy to: Chief Financial Officer

 Facsimile No.: [intentionally left blank] 
  

 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.: [intentionally left blank] 
 With a copy to: Chief Financial Officer

 Facsimile No.: [intentionally left blank] 
 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	 	 
		 	Name:
		 	Title:
	
	A. H. BELO CORPORATION
		
	By	 	 
		 	Name:
		 	Title:

  

 18Form of A.H. Belo Corporation 2008 Incentive Compensation Plan

 Exhibit 10.5 
 A. H. BELO 
 2008 INCENTIVE COMPENSATION PLAN 

 A. H. BELO 
 2008 INCENTIVE COMPENSATION PLAN 
  

					
	SECTION	  		  	PAGE
			
	1.	  	Purpose	  	1
			
	2.	  	Term	  	1
			
	3.	  	Definitions	  	1
			
	4.	  	Shares Available Under Plan	  	6
			
	5.	  	Limitations on Awards	  	6
			
	6.	  	Stock Options	  	7
			
	7.	  	Appreciation Rights	  	8
			
	8.	  	Restricted Shares	  	10
			
	9.	  	Restricted Stock Units	  	11
			
	10.	  	Performance Shares and Performance Units	  	11
			
	11.	  	Incentive Compensation Plan Bonuses	  	12
			
	12.	  	Awards for Directors	  	13
			
	13.	  	Transferability	  	15
			
	14.	  	Adjustments	  	15
			
	15.	  	Fractional Shares	  	15
			
	16.	  	Withholding Taxes	  	15
			
	17.	  	Administration of the Plan	  	15
			
	18.	  	Amendments and Other Matters	  	16
			
	19.	  	Governing Law	  	17

 A. H. BELO 
 2008 INCENTIVE COMPENSATION PLAN 
 A. H. Belo Corporation, a Delaware corporation
(“A. H. Belo”), establishes the A. H. Belo 2008 Incentive Compensation Plan (the “Plan”), effective as of the date on which Belo Corp. distributes to its shareholders all of the common stock of A. H. Belo (the
“Distribution Date”). 
 1. Purpose. The purpose of the Plan is to attract and retain the best available talent and
encourage the highest level of performance by directors, executive officers and selected employees, and to provide them incentives to put forth maximum efforts for the success of A. H. Belo’s business, in order to serve the best interests
of A. H. Belo and its shareholders. 
 2. Term. The Plan will expire on the tenth anniversary of the Distribution Date.

 3. Definitions. The following terms, when used in the Plan with initial capital letters, will have the following meanings:

 (a) Appreciation Right means a right granted pursuant to Section 7. 
 (b) Award means the award of an Incentive Compensation Plan Bonus; the grant of Appreciation Rights, Stock Options, Performance
Shares or Performance Units; or the grant or sale of Restricted Shares or Restricted Stock Units. 
 (c) Board means
the Board of Directors of A. H. Belo. 
 (d) Change in Control means the occurrence of any of the following:

 (i) individuals who, as of the effective date of the Plan, were members of the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director after the effective date of the Plan whose election, or nomination for election, by
the Company’s shareholders was approved by a vote of at least a majority of the Incumbent Directors will be considered as though such individual were an Incumbent Director, other than any such individual whose assumption of office after
the effective date of the Plan occurs as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as
such term is used in Section 13(d) of the Exchange Act) (each, a “Person”), other than the Board; 
 (ii) the consummation of (A) a merger, consolidation or similar form of corporate transaction involving the Company (each of the events referred to in this clause (A) being hereinafter referred to as a
“Reorganization”) or (B) a sale or other disposition of all or substantially all the assets of the Company (a “Sale”), unless, immediately following such Reorganization or Sale, (1) all or substantially
all the individuals and entities who were the “beneficial owners” (as such term is 

 
defined in Rule 13d-3 under the Exchange Act (or a successor rule thereto)) of shares of the Company’s common stock or other securities eligible to vote
for the election of the Board outstanding immediately prior to the consummation of such Reorganization or Sale (such securities, the “Company Voting Securities”) beneficially own, directly or indirectly, more than 60% of the
combined voting power of the then outstanding voting securities of the corporation or other entity resulting from such Reorganization or Sale (including a corporation or other entity that, as a result of such transaction, owns the Company or all or
substantially all the Company’s assets either directly or through one or more subsidiaries) (the “Continuing Entity”) in substantially the same proportions as their ownership, immediately prior to the consummation of such
Reorganization or Sale, of the outstanding Company Voting Securities (excluding any outstanding voting securities of the Continuing Entity that such beneficial owners hold immediately following the consummation of the Reorganization or Sale as a
result of their ownership prior to such consummation of voting securities of any corporation or other entity involved in or forming part of such Reorganization or Sale other than the Company or a Subsidiary), (2) no Person (excluding any
employee benefit plan (or related trust) sponsored or maintained by the Continuing Entity or any corporation or other entity controlled by the Continuing Entity) beneficially owns, directly or indirectly, 30% or more of the combined voting power of
the then outstanding voting securities of the Continuing Entity and (3) at least a majority of the members of the board of directors or other governing body of the Continuing Entity were Incumbent Directors at the time of the execution of the
definitive agreement providing for such Reorganization or Sale or, in the absence of such an agreement, at the time at which approval of the Board was obtained for such Reorganization or Sale; 
 (iii) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company; or 
 (iv) any Person, corporation or other entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company Voting Securities; provided, however, that for purposes of this subparagraph (iv),
the following acquisitions will not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company or any Subsidiary, (C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Subsidiary, (D) any acquisition by an underwriter temporarily holding such Company Voting Securities pursuant to an offering of such securities or (E) any acquisition pursuant to a
Reorganization or Sale that does not constitute a Change in Control for purposes of Section 3(d)(ii). 
 For purposes of
applying the provisions of Section 3(d)(ii)(B)(2) and Section 3(d)(iv) at any time on or after the Effective Date, neither Robert W. Decherd nor any Person holding voting securities of the Continuing Entity or Company Voting
Securities, as applicable, over which Robert W. Decherd has sole or shared voting power 

  

 2 

 
will be considered to be the beneficial owner of 30% or more of such voting securities or Company Voting Securities. 
 (e) Code means the Internal Revenue Code of 1986, as in effect from time to time. 
 (f) Committee means the Compensation Committee of the Board and, to the extent the administration of the Plan has been assumed by
the Board pursuant to Section 17, the Board. 
 (g) Common Stock means the Series A Common Stock, par value
$.01 per share, and the Series B Common Stock, par value $.01 per share, of A. H. Belo or any security into which such Common Stock may be changed by reason of any transaction or event of the type described in Section 14. Shares of
Common Stock issued or transferred pursuant to the Plan will be shares of Series A Common Stock or Series B Common Stock, as determined by the Committee in its discretion. Notwithstanding the foregoing, the Committee will not authorize the
issuance or transfer of Series B Common Stock if the Committee determines that such issuance or transfer would cause the Series A Common Stock to be excluded from trading in the principal market in which the Common Stock is then traded.

 (h) Date of Grant means (i) with respect to Participants, the date specified by the Committee on which an
Award will become effective and (ii) with respect to Directors, the date specified in Section 12. 
 (i)
Director means a member of the Board who is not a regular full-time employee of A. H. Belo or any Subsidiary. 
 (j) Evidence of Award means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee which sets forth the terms and conditions of an Award. An Evidence of Award may be in any
electronic medium, may be limited to a notation on the books and records of A. H. Belo and need not be signed by a representative of A. H. Belo or a Participant or a Director. 
 (k) Exchange Act means the Securities Exchange Act of 1934, as amended. 
 (l) Grant Price means the price per share of Common Stock at which an Appreciation Right not granted in tandem with a Stock Option
is granted. 
 (m) Incentive Compensation Plan Bonus means an award of annual incentive compensation made pursuant to
and subject to the conditions set forth in Section 11. 
 (n) Management Objectives means the measurable
performance objectives, if any, established by the Committee for a Performance Period that are to be achieved with respect to an Award. Management Objectives may be described in terms of company-wide objectives (i.e., the performance of
A. H. Belo and all of its Subsidiaries) or in terms of objectives that are related to the performance of the individual Participant 

  

 3 

 
or of the division, Subsidiary, department, region or function within A. H. Belo or a Subsidiary in which the Participant receiving the Award is
employed or on which the Participant’s efforts have the most influence. The achievement of the Management Objectives established by the Committee for any Performance Period will be determined without regard to the effect on such Management
Objectives of any acquisition or disposition by A. H. Belo of a trade or business, or of substantially all of the assets of a trade or business, during the Performance Period and without regard to any change in accounting standards by the
Financial Accounting Standards Board or any successor entity and without regard to changes in applicable tax laws. 
 The
Management Objectives applicable to any Award to a Participant who is, or is determined by the Committee to be likely to become, a “covered employee” within the meaning of Section 162(m) of the Code (or any successor provision) will
be limited to specified levels of, growth in, or performance relative to performance standards set by the Compensation Committee relating to or peer company performance in, one or more of the following performance measures (excluding the effect of
extraordinary or nonrecurring items): 
  

	 	(i)	earnings per share; 

  

	 	(ii)	earnings before interest, taxes, depreciation and amortization (EBITDA); 

  

	 	(iii)	net income; 

  

	 	(iv)	net operating profit; 

  

	 	(v)	revenue; 

  

	 	(vi)	operating margins; 

  

	 	(vii)	share price; 

  

	 	(viii)	total shareholder return (measured as the total of the appreciation of and dividends declared on the Common Stock); 

  

	 	(ix)	return on invested capital; 

  

	 	(x)	return on shareholder equity; 

  

	 	(xi)	return on assets; 

  

	 	(xii)	working capital targets; 

  

	 	(xiii)	cost reduction; 

  

	 	(xiv)	debt reduction; and 

  

	 	(xv)	industry specific measures of audience or revenue share. 

  

 4 

         If the Committee determines that, as a result of a change
in the business, operations, corporate structure or capital structure of A. H. Belo (other than an acquisition or disposition described in the first paragraph of this Section 3(n) or the manner in which A. H. Belo conducts its
business, or any other events or circumstances, the Management Objectives are no longer suitable, the Committee may in its discretion modify such Management Objectives or the related minimum acceptable level of achievement, in whole or in part, with
respect to a Performance Period as the Committee deems appropriate and equitable, except where such action would result in the loss of the otherwise available exemption of the Award under Section 162(m) of the Code. In such case, the Committee
will not make any modification of the Management Objectives or minimum acceptable level of achievement. 
 (o) Market
Value per Share means, at any date, the closing sale price of the Common Stock on that date (or, if there are no sales on that date, the last preceding date on which there was a sale) in the principal market in which the Common Stock is traded.

 (p) Option Price means the purchase price per share payable on exercise of a Stock Option. 
 (q) Participant means a person who is selected by the Committee to receive benefits under the Plan and who is at that time
(i) an executive officer or other key employee of A. H. Belo or any Subsidiary or (ii) the holder of a stock option or restricted stock units issued by Belo Corp. to whom A. H. Belo is obligated to issue a Stock Option and/or
Restricted Stock Units pursuant to the terms of that certain Employee Matters Agreement dated as of the Distribution Date by and between Belo Corp. and A. H. Belo. 
 (r) Performance Share means a bookkeeping entry that records the equivalent of one share of Common Stock awarded pursuant to
Section 10. 
 (s) Performance Period means, with respect to an Award, a period of time within which the
Management Objectives relating to such Award are to be measured. The Performance Period for an Incentive Compensation Plan Bonus will be a period of 12 months, and, unless otherwise expressly provided in the Plan, the Performance Period for all
other Awards will be established by the Committee at the time of the Award. 
 (t) Performance Unit means a unit
equivalent to $100 (or such other value as the Committee determines) granted pursuant to Section 10. 
 (u)
Restricted Shares means shares of Common Stock granted or sold pursuant to Section 8 as to which neither the ownership restrictions nor the restrictions on transfer have expired. 
 (v) Restricted Stock Units means an award pursuant to Section 9 of the right to receive shares of Common Stock at the end of
a specified deferral period, subject to the satisfaction of certain conditions. 
 (w) Rule 16b-3 means Rule 16b-3
under Section 16 of the Exchange Act (or any successor rule to the same effect), as in effect from time to time. 
  

 5 

 (x) Spread means the excess of the Market Value per Share on the date an
Appreciation Right is exercised over (i) the Option Price provided for in the Stock Option granted in tandem with the Appreciation Right or (ii) if there is no tandem Stock Option, the Grant Price provided for in the Appreciation Right, in
either case multiplied by the number of shares of Common Stock in respect of which the Appreciation Right is exercised. 
 (y) Stock Option means the right to purchase shares of Common Stock upon exercise of an option granted pursuant to Section 6. 
 (z) Subsidiary means (i) any corporation of which at least 50% of the total combined voting power of all outstanding shares of stock is owned directly or indirectly by A. H. Belo, (ii) any
partnership of which at least 50% of the profits interest or capital interest is owned directly or indirectly by A. H. Belo and (iii) any other entity of which at least 50% of the total equity interest is owned directly or indirectly by
A. H. Belo. 
 4. Shares Available Under Plan. The number of shares of Common Stock that may be issued or transferred
(i) upon the exercise of Appreciation Rights or Stock Options, (ii) as Restricted Shares and released from all restrictions, (iii) as Restricted Stock Units, (iv) in payment of Performance Shares, Performance Units or Incentive
Compensation Plan Bonuses will not exceed in the aggregate 8 million shares. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing. The number of shares of Common Stock available under this
Section 4 will be subject to adjustment as provided in Section 14 and will be further adjusted to include shares that (i) relate to Awards that expire or are forfeited or (ii) are transferred, surrendered or relinquished to or
withheld by A. H. Belo in satisfaction of any Option Price or in satisfaction of any tax withholding amount. Upon payment in cash of the benefit provided by any Award, any shares that were covered by that Award will again be available for issue
or transfer under the Plan. 
 5. Limitations on Awards. Awards under the Plan will be subject to the following limitations:

 (a) No more than an aggregate of 4 million shares of Common Stock, subject to adjustment as provided in
Section 4, will be issued or transferred as Restricted Shares and Restricted Stock Units (excluding the award of any Restricted Shares or Restricted Stock Units to Directors pursuant to Section 12). 
 (b) No more than 8 million shares of Common Stock, subject to adjustment only as provided in Section 14, will be issued
pursuant to Stock Options that are intended to qualify as incentive stock options under Section 422 of the Code. 
 (c)
The maximum aggregate number of shares of Common Stock that may be subject to Stock Options, Appreciation Rights, Restricted Stock Units, Performance Shares or Restricted Shares granted or sold to a Participant during any calendar year will not
exceed 800,000 shares, subject to adjustment only as provided in Section 14. The foregoing limitation will apply without regard to whether the applicable Award is settled in cash or in shares of Common Stock. 
  

 6 

 (d) The maximum aggregate cash value of payments to any Participant for any Performance
Period pursuant to an award of Performance Units will not exceed $5 million. 
 (e) The payment of an Incentive
Compensation Plan Bonus to any Participant will not exceed $5 million. 
 6. Stock Options. The Committee may from time to time
authorize grants to any Participant and, subject to Section 12, to any Director of options to purchase shares of Common Stock upon such terms and conditions as it may determine in accordance with this Section 6. Each grant of Stock Options may
utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions: 
 (a) Each grant will specify the number of shares of Common Stock to which it relates. 
 (b) Each grant will specify
the Option Price, which will not be less than 100% of the Market Value per Share on the Date of Grant. 
 (c) Each grant will
specify whether the Option Price will be payable (i) in cash or by check acceptable to A. H. Belo, (ii) by the actual or constructive transfer to A. H. Belo of shares of Common Stock owned by the Participant or Director for at
least six months (or, with the consent of the Committee, for less than six months) having an aggregate Market Value per Share at the date of exercise equal to the aggregate Option Price, (iii) with the consent of the Committee, by authorizing
A. H. Belo to withhold a number of shares of Common Stock otherwise issuable to the Participant or Director having an aggregate Market Value per Share on the date of exercise equal to the aggregate Option Price or (iv) by a combination of
such methods of payment; provided, however, that the payment methods described in clauses (ii) and (iii) will not be available at any time that A. H. Belo is prohibited from purchasing or acquiring such shares of Common Stock.

 (d) To the extent permitted by law, any grant may provide for deferred payment of the Option Price from the proceeds of
sale through a bank or broker of some or all of the shares to which such exercise relates. 
 (e) Successive grants may be
made to the same Participant or Director whether or not any Stock Options or other Awards previously granted to such Participant or Director remain unexercised or outstanding. 
 (f) Each grant will specify the required period or periods of continuous service by the Participant or Director with A. H. Belo or
any Subsidiary that are necessary before the Stock Options or installments thereof will become exercisable. 
 (g) Any grant
may specify the Management Objectives that must be achieved as a condition to the exercise of the Stock Options. 
  

 7 

 (h) Any grant may provide for the earlier exercise of the Stock Options in the event of a
Change in Control or other similar transaction or event. 
 (i) Stock Options may be (i) options which are intended to
qualify under particular provisions of the Code, (ii) options which are not intended to so qualify or (iii) combinations of the foregoing. 
 (j) On or after the Date of Grant, the Committee may provide for the payment to the Participant or Director of dividend equivalents thereon in cash or Common Stock on a current, deferred or contingent basis.

 (k) No Stock Option will be exercisable more than ten years from the Date of Grant. 
 (l) The Committee will have the right to substitute Appreciation Rights for outstanding Options granted to one or more Participants or
Directors, provided the terms and the economic benefit of the substituted Appreciation Rights are at least equivalent to the terms and economic benefit of such Options, as determined by the Committee in its discretion. 
 (m) Any grant may provide for the effect on the Stock Options or any shares of Common Stock issued, or other payment made, with respect
to the Stock Options of any conduct of the Participant determined by the Committee to be injurious, detrimental or prejudicial to any significant interest of A. H. Belo or any Subsidiary. 
 (n) Each grant will be evidenced by an Evidence of Award, which may contain such terms and provisions, consistent with the Plan, as the
Committee may approve, including without limitation provisions relating to the Participant’s termination of employment or Director’s termination of service by reason of retirement, death, disability or otherwise. 
 7. Appreciation Rights. The Committee may also from time to time authorize grants to any Participant and, subject to Section 12, to any
Director of Appreciation Rights upon such terms and conditions as it may determine in accordance with this Section 7. Appreciation Rights may be granted in tandem with Stock Options or separate and apart from a grant of Stock Options. An
Appreciation Right will be a right of the Participant or Director to receive from A. H. Belo upon exercise an amount which will be determined by the Committee at the Date of Grant and will be expressed as a percentage of the Spread (not
exceeding 100%) at the time of exercise. An Appreciation Right granted in tandem with a Stock Option may be exercised only by surrender of the related Stock Option. Each grant of an Appreciation Right may utilize any or all of the authorizations,
and will be subject to all of the requirements, contained in the following provisions: 
 (a) Each grant will state whether
it is made in tandem with Stock Options and, if not made in tandem with any Stock Options, will specify the number of shares of Common Stock in respect of which it is made. 
  

 8 

 (b) Each grant made in tandem with Stock Options will specify the Option Price and each
grant not made in tandem with Stock Options will specify the Grant Price, which in either case will not be less than 100% of the Market Value per Share on the Date of Grant. 
 (c) Any grant may provide that the amount payable on exercise of an Appreciation Right may be paid (i) in cash, (ii) in shares
of Common Stock having an aggregate Market Value per Share equal to the Spread or (iii) in a combination thereof, as determined by the Committee in its discretion. 
 (d) Any grant may specify that the amount payable to the Participant or Director on exercise of an Appreciation Right may not exceed a
maximum amount specified by the Committee at the Date of Grant (valuing shares of Common Stock for this purpose at their Market Value per Share at the date of exercise). 
 (e) Successive grants may be made to the same Participant or Director whether or not any Appreciation Rights or other Awards previously
granted to such Participant or Director remain unexercised or outstanding. 
 (f) Each grant will specify the required period
or periods of continuous service by the Participant or Director with A. H. Belo or any Subsidiary that are necessary before the Appreciation Rights or installments thereof will become exercisable, and will provide that no Appreciation Rights
may be exercised except at a time when the Spread is positive and, with respect to any grant made in tandem with Stock Options, when the related Stock Options are also exercisable. 
 (g) Any grant may specify the Management Objectives that must be achieved as a condition to the exercise of the Appreciation Rights.

 (h) Any grant may provide for the earlier exercise of the Appreciation Rights in the event of a Change in Control or other
similar transaction or event. 
 (i) On or after the Date of Grant, the Committee may provide for the payment to the
Participant or Director of dividend equivalents thereon in cash or Common Stock on a current, deferred or contingent basis. 
 (j) No Appreciation Right will be exercisable more than ten years from the Date of Grant. 
 (k) Any grant may
provide for the effect on the Appreciation Rights or any shares of Common Stock issued, or other payment made, with respect to the Appreciation Rights of any conduct of the Participant determined by the Committee to be injurious, detrimental or
prejudicial to any significant interest of A. H. Belo or any Subsidiary. 
 (l) Each grant will be evidenced by an
Evidence of Award, which may contain such terms and provisions, consistent with the Plan, as the Committee may approve, including without limitation provisions relating to the Participant’s termination 

  

 9 

 
of employment or Director’s termination of service by reason of retirement, death, disability or otherwise. 
 8. Restricted Shares. The Committee may also from time to time authorize grants or sales to any Participant and, subject to Section 12, to
any Director of Restricted Shares upon such terms and conditions as it may determine in accordance with this Section 8. Each grant or sale will constitute an immediate transfer of the ownership of shares of Common Stock to the Participant or
Director in consideration of the performance of services, entitling such Participant or Director to voting and other ownership rights, but subject to the restrictions set forth in this Section 8. Each such grant or sale may utilize any or all
of the authorizations, and will be subject to all of the requirements, contained in the following provisions: 
 (a) Each
grant or sale may be made without additional consideration or in consideration of a payment by the Participant or Director that is less than the Market Value per Share at the Date of Grant, except as may otherwise be required by the Delaware General
Corporation Law. 
 (b) Each grant or sale may limit the Participant’s or Director’s dividend rights during the
period in which the shares of Restricted Shares are subject to any such restrictions. 
 (c) Each grant or sale will provide
that the Restricted Shares will be subject, for a period to be determined by the Committee at the Date of Grant, to one or more restrictions, including without limitation a restriction that constitutes a “substantial risk of forfeiture”
within the meaning of Section 83 of the Code and the regulations of the Internal Revenue Service under such section. 
 (d) Any grant or sale may specify the Management Objectives that, if achieved, will result in the termination or early termination of the restrictions applicable to the shares. 
 (e) Any grant or sale may provide for the early termination of any such restrictions in the event of a Change in Control or other similar
transaction or event. 
 (f) Each grant or sale will provide that during the period for which such restriction or
restrictions are to continue, the transferability of the Restricted Shares will be prohibited or restricted in a manner and to the extent prescribed by the Committee at the Date of Grant (which restrictions may include without limitation rights of
repurchase or first refusal in favor of A. H. Belo or provisions subjecting the Restricted Shares to continuing restrictions in the hands of any transferee). 
 (g) Any grant or sale may provide for the effect on the Restricted Shares or any shares of Common Stock issued free of restrictions, or
other payment made, with respect to the Restricted Shares of any conduct of the Participant determined by the Committee to be injurious, detrimental or prejudicial to any significant interest of A. H. Belo or any Subsidiary. 
  

 10 

 (h) Each grant or sale will be evidenced by an Evidence of Award, which may contain such
terms and provisions, consistent with the Plan, as the Committee may approve, including without limitation provisions relating to the Participant’s termination of employment or Director’s termination of service by reason of retirement,
death, disability or otherwise. 
 9. Restricted Stock Units. The Committee may also from time to time authorize grants or sales to
any Participant and, subject to Section 12, to any Director of Restricted Stock Units upon such terms and conditions as it may determine in accordance with this Section 9. Each grant or sale will constitute the agreement by A. H. Belo
to issue or transfer shares of Common Stock to the Participant or Director in the future in consideration of the performance of services, subject to the fulfillment of such conditions as the Committee may specify. Each such grant or sale may utilize
any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions: 
 (a) Each grant or sale may be made without additional consideration from the Participant or Director or in consideration of a payment by the Participant or Director that is less than the Market Value per Share on the Date of Grant, except
as may otherwise be required by the Delaware General Corporation Law. 
 (b) Each grant or sale will provide that the
Restricted Stock Units will be subject to a deferral period, which will be fixed by the Committee on the Date of Grant, and any grant or sale may provide for the earlier termination of such period in the event of a Change in Control or other similar
transaction or event. 
 (c) During the deferral period, the Participant or Director will not have any right to transfer any
rights under the Restricted Stock Units, will not have any rights of ownership in the Restricted Stock Units and will not have any right to vote the Restricted Stock Units, but the Committee may on or after the Date of Grant authorize the payment of
dividend equivalents on such shares in cash or Common Stock on a current, deferred or contingent basis. 
 (d) Any grant or
sale may provide for the effect on the Restricted Stock Units or any shares of Common Stock issued free of restrictions, or other payment made, with respect to the Restricted Stock Units of any conduct of the Participant determined by the Committee
to be injurious, detrimental or prejudicial to any significant interest of A. H. Belo or any Subsidiary. 
 (e) Each
grant or sale will be evidenced by an Evidence of Award, which will contain such terms and provisions as the Committee may determine consistent with the Plan, including without limitation provisions relating to the Participant’s termination of
employment or Director’s termination of service by reason of retirement, death, disability or otherwise. 
 10. Performance Shares
and Performance Units. The Committee may also from time to time authorize grants to any Participant and, subject to Section 12, to any Director of Performance Shares and Performance Units, which will become payable upon achievement of

  

 11 

 
specified Management Objectives, upon such terms and conditions as it may determine in accordance with this Section 10. Each such grant may utilize any
or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions: 
 (a)
Each grant will specify the number of Performance Shares or Performance Units to which it relates. 
 (b) The Performance
Period with respect to each Performance Share and Performance Unit will be determined by the Committee at the time of grant. 
 (c) Each grant will specify the Management Objectives that, if achieved, will result in the payment of the Performance Shares or Performance Units. 
 (d) Each grant will specify the time and manner of payment of Performance Shares or Performance Units which have become payable, which
payment may be made in (i) cash, (ii) shares of Common Stock having an aggregate Market Value per Share equal to the aggregate value of the Performance Shares or Performance Units which have become payable or (iii) any combination
thereof, as determined by the Committee in its discretion at the time of payment. 
 (e) Any grant of Performance Shares may
specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee on the Date of Grant. Any grant of Performance Units may specify that the amount payable, or the number of shares of Common Stock issued, with
respect to the Performance Units may not exceed maximums specified by the Committee on the Date of Grant. 
 (f) On or after
the Date of Grant, the Committee may provide for the payment to the Participant or Director of dividend equivalents on Performance Shares in cash or Common Stock on a current, deferred or contingent basis. 
 (g) Any grant may provide for the effect on the Performance Shares or Performance Units or any shares of Common Stock issued, or other
payment made, with respect to the Performance Shares or Performance Units of any conduct of the Participant determined by the Committee to be injurious, detrimental or prejudicial to any significant interest of A. H. Belo or any Subsidiary.

 (h) Each grant will be evidenced by an Evidence of Award, which will contain such terms and provisions as the Committee
may determine consistent with the Plan, including without limitation provisions relating to the payment of the Performance Shares or Performance Units in the event of a Change in Control or other similar transaction or event and provisions relating
to the Participant’s termination of employment or Director’s termination of service by reason of retirement, death, disability or otherwise. 
 11. Incentive Compensation Plan Bonuses. The Committee may from time to time authorize payment of annual incentive compensation in the form of an Incentive Compensation Plan Bonus to a Participant, which will
become payable upon achievement of specified 

  

 12 

 
Management Objectives. Incentive Compensation Plan Bonuses will be payable upon such terms and conditions as the Committee may determine, subject to the
following provisions: 
 (a) The Committee will specify the Management Objectives that, if achieved, will result in the
payment of the Incentive Compensation Plan Bonus. 
 (b) The amount of
the Incentive Compensation Plan Bonus will be determined by the Committee based on the level of achievement of the specified Management Objectives. The Incentive Compensation Plan Bonus will be paid to the Participant following the close of the
calendar year in which the Performance Period relating to the Incentive Compensation Plan Bonus ends, but not later than the 15th day of the third month
following the end of such calendar year, provided the Participant continues to be employed by A. H. Belo or a Subsidiary on the Incentive Compensation Plan Bonus payment date (unless such employment condition is waived by the Company). 

 (c) Payment of the Incentive Compensation Plan Bonus may be made in (i) cash, (ii) shares of Common Stock having
an aggregate Market Value per Share equal to the aggregate value of the Incentive Compensation Plan Bonus which has become payable or (iii) any combination thereof, as determined by the Committee in its discretion at the time of payment.

 (d) If a Change in Control occurs during a Performance Period, the Incentive Compensation Plan Bonus payable to each
Participant for the Performance Period will be determined at the target level of achievement of the Management Objectives, without regard to actual performance, or, if greater, at the actual level of achievement at the time of the closing of the
Change in Control, in both instances without proration for less than a full Performance Period. The Incentive Compensation Bonus will be paid not later than 60 days after the closing of the Change in Control. 
 (e) Each grant may be evidenced by an Evidence of Award, which will contain such terms and provisions as the Committee may determine
consistent with the Plan, including without limitation provisions relating to the Participant’s termination of employment by reason of retirement, death, disability or otherwise. 
 12. Awards for Directors. 
 (a) On the date of (i) the 2008 annual meeting of Belo Corp. shareholders and (ii) each annual meeting of A. H. Belo shareholders occurring after 2008, or such other time as the Compensation Committee determines and approves,
each Director will be granted (i) an Award that has a fair market value (as hereinafter determined) on the Date of Grant equal to 50% of the Director’s annual compensation from A. H. Belo and (ii) if the Director so elects, an
Award that has a fair market value on the Date of Grant equal to all or any portion of the Director’s remaining annual compensation from A. H. Belo. Any such election will be irrevocable when made and, to the extent the Director’s
election will result in a deferral of compensation subject to Section 409A of the Code, must be made by the Director in writing no later than the last day of the calendar year immediately preceding the calendar year in which the date of the
annual shareholders 

  

 13 

 
meeting occurs. The form of the Award will be determined by the Committee in its discretion; provided, however, that unless the Committee determines and
approves otherwise, Awards made to Directors will be in the form of Stock Options. For purposes of this Section 12, the date of an annual meeting of shareholders of A. H. Belo is the date on which the meeting is convened. 
 (b) An Award granted to a Director pursuant to this Section 12 will constitute payment of all or a portion of the Director’s
annual compensation for services to be performed by the Director for the 12-month period beginning on the date of the annual meeting of shareholders on which the Award is granted. If, however, a Director is elected to the Board as of a date other
than the date of an annual meeting of A. H. Belo shareholders, (i) the Director’s annual compensation will be prorated based on the number of days remaining in the year in which the Director is elected to the Board (for this purpose
the year will begin on the date of the annual meeting of shareholders immediately preceding the date of the Director’s election to the Board) and (ii) 50% of the Director’s prorated annual compensation will be paid in the form of an
Award valued on the date of the Director’s election to the Board, subject to the Director’s election to receive up to 100% of his or her prorated annual compensation in the form of an Award valued on such date. Any such election will be
irrevocable when made; and to the extent the Director’s election will result in a deferral of compensation subject to Section 409A of the Code, must be made no later than 30 days after the date of the Director’s election to the Board
and will apply only to compensation paid for services to be performed by the Director after the date of his written election. Any portion of a Director’s compensation from A. H. Belo that is not paid to the Director in the form of an Award
will be paid in cash on the date of the annual meeting of shareholders or the date of the Director’s election to the Board, as applicable. 
 (c) For purposes of this Section 12: 
 (i) the fair market value of a Stock Option or
an Appreciation Right awarded to a Director will be determined by the Committee using the Black-Scholes Option Pricing Model; a generally accepted binomial pricing model that takes into account as of the Date of Grant (A) the Option Price or
Grant Price, as applicable, (B) the expected term of the Stock Option or Appreciation Right, (C) the Market Value per Share of the Common Stock on the Date of Grant, (D) the volatility of the Common Stock, (E) the expected
dividends on the Common Stock and (F) the risk-free interest rate for the expected term of the Stock Option or Appreciation Right; or any other pricing model used by A. H. Belo to value Stock Options for financial reporting purposes;

 (ii) the fair market value of a Restricted Stock Unit, a Restricted Share or a Performance Share awarded to a Director
will be equal to the Market Value per Share of the Common Stock on the Date of Grant without regard to any restrictions, limitations or conditions with respect to such Award; and 
 (iii) the fair market value of a Performance Unit awarded to a Director will be its stated value. 
  

 14 

 13. Transferability. Unless the Committee determines otherwise on or after the Date of Grant,
(i) no Award will be transferable by a Participant or Director other than by will or the laws of descent and distribution, and (ii) no Stock Option or Appreciation Right granted to a Participant or Director will be exercisable during the
Participant’s or Director’s lifetime by any person other than the Participant or Director, or such person’s guardian or legal representative. 
 14. Adjustments. The Committee will make or provide for such adjustments in (i) the maximum number of shares of Common Stock specified in Section 4 and Section 5, (ii) the number of
shares of Common Stock covered by outstanding Stock Options, Appreciation Rights, Performance Shares and Restricted Stock Units granted under the Plan, (iii) the Option Price or Grant Price applicable to any Stock Options and Appreciation
Rights, and (iv) the kind of shares covered by any such Awards (including shares of another issuer) as is equitably required to prevent dilution or enlargement of the rights of Participants and Directors that otherwise would result from
(x) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of A. H. Belo, or (y) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or
complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (z) any other corporate transaction, equity restructuring or other event having an effect similar to any of the foregoing. In the
event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding Awards such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may
require in connection with such substitution the surrender of all Awards so replaced. 
 15. Fractional Shares. A. H. Belo will
not be required to issue any fractional share of Common Stock pursuant to the Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash. 
 16. Withholding Taxes. To the extent that A. H. Belo is required to withhold federal, state, local or foreign taxes in connection with any
payment made or benefit realized by a Participant or other person under the Plan, and the amounts available to A. H. Belo for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such
benefit that the Participant or such other person make arrangements satisfactory to A. H. Belo for payment of the balance of such taxes required to be withheld. In addition, if permitted by the Committee, the Participant or such other person
may elect to have any withholding obligation of A. H. Belo satisfied with shares of Common Stock that would otherwise be transferred to the Participant or such other person in payment of the Participant’s Award. However, without the
consent of the Committee, shares of Common Stock will not be withheld in excess of the minimum number of shares required to satisfy A. H. Belo’s withholding obligation. 
 17. Administration of the Plan. 
 (a) Unless the administration of the Plan has been expressly assumed by the Board pursuant to a resolution of the Board, the Plan will be administered by the Committee, which at all times will consist of two or more
Directors appointed by the Board, all of whom (i) will meet all applicable independence requirements of the New York Stock Exchange or the principal national securities exchange on which the 

  

 15 

 
Common Stock is traded and (ii) will qualify as “non-employee directors” as defined in Rule 16b-3 and as “outside directors” as
defined in regulations adopted under Section 162(m) of the Code, as such terms may be amended from time to time. A majority of the Committee will constitute a quorum, and the action of the members of the Committee present at any meeting at
which a quorum is present, or acts unanimously approved in writing, will be the acts of the Committee. 
 (b) The Committee
has the full authority and discretion to administer the Plan and to take any action that is necessary or advisable in connection with the administration of the Plan, including without limitation the authority and discretion to interpret and construe
any provision of the Plan or of any agreement, notification or document evidencing an Award. The interpretation and construction by the Committee of any such provision and any determination by the Committee pursuant to any provision of the Plan or
of any such agreement, notification or document will be final and conclusive. No member of the Committee will be liable for any such action or determination made in good faith. 
 18. Amendments and Other Matters. 
 (a) The Plan may be amended from time to time by the Committee or the Board but may not be amended without further approval by the shareholders of A. H. Belo if such amendment would result in the Plan no longer
satisfying any applicable requirements of the New York Stock Exchange (or the principal national securities exchange on which the Common Stock is traded), Rule 16b-3 or Section 162(m) of the Code. 
 (b) Neither the Committee nor the Board will authorize the amendment of any outstanding Stock Option to reduce the Option Price without
the further approval of the shareholders of A. H. Belo. Furthermore, no Stock Option will be cancelled and replaced with Stock Options having a lower Option Price without further approval of the shareholders of A. H. Belo. This
Section 18(b) is intended to prohibit the repricing of “underwater” Stock Options and will not be construed to prohibit the adjustments provided for in Section 14. 
 (c) The Committee may also permit Participants and Directors to elect to defer the issuance of Common Stock or the settlement of Awards
in cash under the Plan pursuant to such rules, procedures or programs as it may establish for purposes of the Plan. The Committee also may provide that deferred issuances and settlements include the payment or crediting of dividend equivalents or
interest on the deferral amounts. 
 (d) The Plan may be terminated at any time by action of the Board. The termination of
the Plan will not adversely affect the terms of any outstanding Award. 
 (e) The Plan does not confer upon any Participant
any right with respect to continuance of employment or other service with A. H. Belo or any Subsidiary, nor will it interfere in any way with any right A. H. Belo or any Subsidiary would otherwise have to terminate such Participant’s
employment or other service at any time. 
  

 16 

 (f) If the Committee determines, with the advice of legal counsel, that any provision of
the Plan would prevent the payment of any Award intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code from so qualifying, such Plan provision will be invalid and cease to have any effect without
affecting the validity or effectiveness of any other provision of the Plan. 
 19. Governing Law. The Plan, all Awards and all actions
taken under the Plan and the Awards will be governed in all respects in accordance with the laws of the State of Delaware, including without limitation, the Delaware statute of limitations, but without giving effect to the principles of conflicts of
laws of such State. 
  

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]