Document:

exv4w4

Exhibit 4.4

AGREEMENT

     This Agreement (“Agreement”), dated April 7, 2010 but effective as provided in this Agreement,
is made and entered into by and between Michael L. Rose (“Consultant”) and Furmanite Corporation
(the “Company”):

     WHEREAS, Consultant has resigned as a director, Chairman of the Board and Chief Executive
Officer of the Company;

     WHEREAS, Consultant and the Company (the “Parties”) wish to terminate the employment
relationship between them on the terms set forth in this Agreement;

     WHEREAS, the Company wishes to retain Consultant as a consultant to the Company on the terms
set forth in this Agreement;

     WHEREAS, the Parties wish to mutually release each other from certain claims on the terms set
forth in this Agreement;

     WHEREAS, both Parties have read and understand the terms and provisions of this Agreement and
desire and intend to be bound by the terms and provisions of this Agreement.

     NOW, THEREFORE, in consideration of the covenants and mutual promises and agreements contained
in this Agreement and other valuable consideration, the sufficiency of which is acknowledged, the
Parties agree as follows:

1. Release and Waiver Agreement. The Parties acknowledge and understand that this
Agreement is a release and waiver contract and that this document is legally binding. Each Party
understands that by signing this Agreement, he or it has read and understood each provision and is
agreeing to all of the provisions set forth in this Agreement.

2. Cessation Of Employment. On March 8, 2010, Consultant resigned from all positions as an
officer, director and manager that he held with the Company and any subsidiary or affiliate of the
Company, including but not limited to his positions as Chairman of the Board of Directors of the
Company, a director of the Company and as Chief Executive Officer of the Company. Consultant’s
employment with the Company is terminated effective April 7, 2010 (the “Separation Date”).

3. Compensation. In exchange for the promises and covenants of Consultant contained in
this Agreement and subject to the provisions contained in this Agreement, as compensation, the
Company covenants and agrees to:

     (a) On or before the Separation Date, the Compensation Committee of the Board of Directors of
the Company shall (i) accelerate the vesting of all unvested stock options granted by the Company
to Consultant (the “Unvested Options”), (ii) extend the period of exercisability of the stock
option granted by the Company to Consultant on October 6, 2005 until 5 p.m. on

 

 

November 30, 2010 and (iii) extend the period of exercisability of the stock option granted by
the Company to Consultant on December 10, 2008 until 5 p.m. on December 10, 2013. However, in no
event will Consultant be permitted to exercise the Unvested Options before the expiration of seven
days after Consultant signs this Agreement without revocation (the “Effective Date”).

     (b) On or before the Separation Date, the Compensation Committee of the Board of Directors of
the Company shall accelerate the vesting of the restricted stock award granted by the Company to
Consultant on December 6, 2006 so that on or before the Separation Date all substantial risk of
forfeiture restrictions applicable to the restricted stock award shall lapse and Consultant shall
have a fully nonforfeitable interest in the shares of the Company’s common stock subject to the
restricted stock award.

     (c) The Company shall pay Consultant a fee of $33,333 per month commencing with the Separation
Date (assuming the Effective Date occurs) and ending December 31, 2010, unless terminated sooner as
provided herein (the “Consulting Period”), said fee to be prorated for partial months.
Consultant’s fees earned during the six-month period commencing on the date of Consultant’s
separation from service will be accumulated and paid to Consultant on the date that is six months
following the date of Consultant’s separation from service, together with interest on such
accumulated amounts calculated using an interest rate equal to the lesser of (i) the six-month
Interbank Offered Rate in effect on the date of Consultant’s separation from service and (ii) the
interest rate generally paid by the Company under its credit facility on the date of Consultant’s
separation from service. Thereafter, Consultant’s consulting fees earned during the remainder of
the Consulting Period will be paid on a monthly basis. For purposes of this Agreement the term
“separation from service” has the meaning ascribed to that term in Section 409A of the Internal
Revenue Code of 1986, as amended.

     (d) The Company shall pay Consultant for all earned but unused vacation he is entitled to as
of the Separation Date, to be paid to him within five (5) business days after the Effective Date.

The Company’s payment of the compensation described in clauses (a), (b), and (d) of this Section 3
is subject to applicable federal, state and local taxes and withholding. Consultant shall have no
right to any further payments or benefits, however calculated or paid, including bonuses,
commissions, or incentive compensation.

4. Consultation With Attorney, Review Period and Revocation Period.

     (a) Consultant is advised, and acknowledges that he has been advised, to consult with an
attorney before executing this Agreement concerning the meaning, import, and legal significance of
this Agreement. Consultant acknowledges that he has read this Agreement, as signified by his
signature hereto, and is voluntarily executing the same after advice of counsel for the purposes
and consideration expressed in this Agreement.

     (b) Consultant acknowledges that he has been provided with a period of at least 21 days within
which to consider, review, and reflect on the terms of this Agreement. In the event that he
executes this Agreement prior to the expiration of the 21-day period, he hereby waives the balance
of said period.

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     (c) Consultant has seven days in which he may revoke this Agreement after he signs it. This
Agreement shall not be effective until the expiration of seven days after Consultant signs it
without revocation. Any amounts payable under this Agreement shall be paid no sooner than the
expiration of seven days after Consultant signs it. Any revocation of this Agreement must be
delivered to the Company, Attention: Greg Fata, at 2435 N. Central Expressway, Richardson, Texas
75080, before the expiration of seven days after Consultant signs this Agreement.

5. Releases. In exchange for the promises and covenants contained in this Agreement, the
Parties covenant and agree as follows:

     (a) Release And Waiver By Consultant. For and in consideration of the compensation
described in Section 3, as well as the covenants and promises contained in this Agreement, the
receipt and sufficiency of which are acknowledged, Consultant, on behalf of himself and his family,
assigns, representatives, agents, heirs and attorneys, if any, fully, finally, and forever
releases, acquits and discharges the Company, along with its former and present parents,
subsidiaries, and affiliates, and its and their respective predecessors, successors and assigns, if
any, as well as its and their respective former and present officers, administrators, directors,
shareholders, general or limited partners, representatives, agents, employees and attorneys, if
any, jointly and severally (collectively, the “Released Parties”), from any and all claims,
demands, actions, liabilities, obligations and causes of action of whatever kind or character,
whether known or unknown, that Consultant or anyone on his behalf or for his benefit has or might
claim to have against the Released Parties for any and all injuries, harm, damages (actual and
punitive), penalties, costs, losses, expenses, attorneys fees and liability or other detriment, if
any, whatsoever and whenever incurred or suffered by Consultant arising out of, relating to, or in
connection with any transaction, occurrence or omission that transpired before the execution of
this Agreement, including, without limitation:

          (i) any claim under federal, state, or local law that provides civil remedies for the
enforcement of rights arising out of the employment relationship, including, without limitation,
discrimination and retaliation claims, such as claims or causes of action under Title VII of the
Civil Rights Act of 1964. as amended, 42 U.S.C. § 2000 et seq.; The Civil Rights Act of 1866, as
amended, 42 U.S.C. § 1981; The Civil Rights Act of 1991. as amended, 42 U.S.C. § 1981a; Age
Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq.; Americans With Disabilities
Act, as amended, 42 U.S.C. § 12101 et seq.; Fair Labor Standards Act, as amended, 29 U.S.C. § 201,
et seq.; Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1000 et seq.; Family and
Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; the Texas Commission on Human Rights Act,
as amended, Texas Labor Code § 21.001, et seq.; or any other statute prohibiting discrimination or
retaliation in employment under any federal, state, or local law; and

          (ii) except as set forth in the proviso to this Section 5(a), claims for unpaid or withheld
wages, relocation allowances or benefits, other benefits, commissions, stock options, bonuses or
profit-sharing, wrongful discharge, breach of contract, breach of fiduciary duty, promissory
estoppel, fraud, breach of any implied covenants, assault, battery, negligence, defamation,
invasion of privacy, slander, intentional infliction of emotional distress, or any other contract,
tort, or statutory claim;

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provided that nothing in this Agreement shall be construed as a release by Consultant of any (i)
salary earned through the Separation Date, (ii) outstanding expense reimbursement claims as of the
Separation Date in accordance with the Company’s policies, (iii) rights under the Company’s 401(k)
Plan earned through the Separation Date, (iv) rights under the Company’s medical and dental
insurance plan to which Consultant is entitled through the Separation Date, (v) rights of
Consultant to indemnification and advance of expenses pursuant to the Company’s bylaws and pursuant
to the indemnification assurance agreement dated as of April 21, 2006, and amended December 31,
2008, between the Parties (the “Indemnification Documents”), (vi) rights of the Consultant under
any insurance policies maintained by the Company and (vii) rights of Consultant under this
Agreement;

Consultant covenants and agrees that he will not initiate, or cause to be initiated, any action or
cause of action against the Company or any of the other Released Parties in the future asserting
any claim covered by the release contained in this Agreement. Consultant further agrees to
indemnify the Company and all other Released Parties for (i) any additional sum of money that any
of them may be compelled to pay Consultant as a result of a claim covered by this release, and (ii)
any of the associated legal fees, costs and expenses of the Company or any other Released Party on
account of Consultant bringing or allowing to be brought on his behalf any legal action based
directly or indirectly on the claims covered by the release.

     (b) Release and Waiver by the Company. The Company covenants and agrees that it will
not initiate, or cause to be initiated, any action or cause of action against Consultant asserting
a claim associated with Consultant’s duties and responsibilities as an employee of the Company, if
acting within the scope of his employment and not illegally. The Company further agrees to
indemnify Consultant for any sum of money that Consultant may be compelled to pay, together with
associated legal fees, costs and expenses, as a result of any action or claim brought by the
Company or any Released Party that the Company has agreed not to initiate pursuant to the
immediately preceding sentence. Notwithstanding the foregoing, nothing in this Agreement shall be
construed as a release by the Company of any (i) rights of the Company under the Xanser Corporation
Proprietary Information, Inventions and Non-Solicitation Agreement dated July 5, 2005, between
Consultant and the Company (the “Proprietary Information Agreement”) and (ii) rights of the Company
under this Agreement. The Company shall pay Consultant the indemnification and reimbursement
amounts described in this Section 5(b) within ten business days after the delivery of Consultant’s
written request for the payment accompanied by such evidence of costs and expenses as the Company
may reasonably require. The parties intend and agree that such ten business day deadline is not to
be extended as a result of the following sentence which is included solely for the purpose of
complying with Section 409A. The Company shall pay Consultant the indemnification and reimbursement
amount described in this Section 5(b) by the last day of the Consultant’s taxable year following
the taxable year in which Consultant incurred such costs and expenses. The costs and expenses that
are subject to reimbursement pursuant to this Section 5(b) shall not be limited as a result of when
the costs and expenses are incurred. The amount of costs and expenses eligible for reimbursement
pursuant to this Section 5(b) during a given taxable year of Consultant shall not affect the amount
of costs and expenses eligible for reimbursement in any other taxable year of Consultant. The right
to reimbursement pursuant to this Section 5(b) is not subject to liquidation or exchange for
another benefit.

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     (c) The Parties acknowledge and agree that although Section 5(a) prohibits Consultant from
filing a lawsuit concerning claims covered by the release, it does not prohibit Consultant from
lodging a complaint with or participating in a proceeding before any governmental agency or
challenging whether this Agreement was entered into on a knowing and voluntary basis.

     (d) Consultant acknowledges and agrees that the payment of monies under this Agreement
constitutes monies to which Consultant was not previously entitled and, further, that the payment
of monies under this Agreement constitutes fair and adequate consideration for the execution of
this Agreement.

6. Consulting Services. The Company shall retain Consultant as a consultant to the Company
during the Consulting Period. Consultant accepts this appointment and agrees to perform the
services described in this Agreement with all due skill and care. Consultant’s services shall be
provided in connection with such assignments as the Company may make from time to time within the
area of Consultant’s expertise. Consultant shall report to the Chief Executive Officer of the
Company (the “Company Representative”), or to the Company Representative’s designees. Consultant
shall be an independent contractor. Subject to Consultant’s other existing commitments, Consultant
shall devote sufficient time, attention and energies to the business and interests of the Company,
shall diligently and to the best of his ability perform such duties incident to the provisions of
this Agreement, and shall perform such other duties as requested by the Company commensurate with
the terms of this Agreement. All reasonable expenses, including but not limited to lodging, meals
and plane fare incurred by Consultant in accordance with existing policies of the Company and
relating to the performance by Consultant of his duties pursuant to this Section 6 will be
reimbursed by the Company in accordance with the Company’s existing policies. Reimbursement shall
be made on the basis of itemized statements submitted by Consultant, including, whenever possible,
actual bills, original receipts, ledgers or other evidence of expenditures as requested by the
Company and its accountants. The parties intend and agree that any deadlines for reimbursing such
expenses that are specified in the Company’s reimbursement policies are not to be extended as a
result of the following sentence which is included solely for the purpose of complying with Section
409A. The Company shall pay Consultant the amount of such expenses by the last day of the
Consultant’s taxable year following the taxable year in which Consultant incurred such expenses.
The expenses that are subject to reimbursement pursuant to this Section 6 shall not be limited as a
result of when the expenses are incurred. The amount of expenses eligible for reimbursement
pursuant to this Section 6 during a given taxable year of Consultant shall not affect the amount of
expenses eligible for reimbursement in any other taxable year of Consultant. The right to
reimbursement pursuant to this Section 6 is not subject to liquidation or exchange for another
benefit. Consultant represents that he is familiar with the safety, confidentiality and other
policies, codes and rules of the Company and shall comply with them. In performing his duties
under this Agreement, Consultant shall also comply with all governmental laws, regulations, rules
and orders applicable to the Company. Consultant shall promptly report to the Company
Representative any violation or suspected violation or any governmental laws, regulations, rules or
orders applicable to the Company or any violation of any policies, codes or rules of the Company.
Consultant shall have no authority to obligate the Company in any manner whatsoever, including
without limitation incurring expenses or entering into contracts, in the absence of specific prior
written authority from the Company Representative permitting Consultant to do so. Consultant
acknowledges that his services as a consultant under this Section

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6 shall not entitle him to any rights or benefits afforded to employees of the Company or any of
its subsidiaries, including such benefits as worker’s compensation insurance, health insurance,
sick leave, retirement benefits or any other employment benefit. Consultant agrees that he is
solely responsible for paying when due all income taxes, including estimate taxes, as a result of
or in connection with the compensation paid by the Company to Consultant for services rendered
under this Section 6. The consulting arrangements described in this Section 6 may be terminated by
the Company at any time for material breach by the Consultant on ten days’ written notice, if the
Consultant has failed to remedy the breach leading to the termination during that period, and if
there is such a termination, the Consulting Period shall also terminate for the purposes of Section
3(c).

The Consultant agrees that any business opportunity involving industrial maintenance services that
comes to the Consultant’s attention during the Consulting Period will be disclosed to the Company,
unless such business opportunity is subject to an agreement with a third party which exists on the
effective date of this Agreement. The Company will promptly determine whether it wishes to pursue
and participate in any such business opportunity. If the Company declines to participate in any
such business opportunity, the Consultant shall be free to pursue such business opportunity
himself.

7. Nondisparagement; Cooperation. Each Party agrees to refrain from engaging in any
conduct, verbal or otherwise, that would disparage or harm the reputation of the other. Such
conduct shall include, but not be limited to, any negative statements made verbally or in writing
by Consultant about the Company or any of the Released Parties, or by the Company or any of the
Released Parties about Consultant. During and after the Consulting Period, the Consultant agrees
to cooperate with the Company and its advisors in connection with business matters in which the
Consultant was involved or any claims, investigations, administrative proceedings or lawsuits which
relate to his employment with the Company and of which the Consultant has knowledge. Any request
for cooperation will be upon reasonable advance notice. The Company shall pay Consultant’s
reasonable out of pocket expenses in connection with such cooperation.

8. Property and Confidential Information.

     (a) Consultant acknowledges that the Company has furnished, and may continue to furnish, him
with information (the “Confidential Information”) that is secret, non-public or otherwise
confidential, including without limitation: the Company’s technical and business information,
whether patentable or not, which is of a confidential, trade secret, or proprietary character, and
which was either developed by the Company, with others or by others; lists of customers; identity
of customers; identity of prospective customers; contract terms; bidding information and
strategies; pricing methods or information; computer software; computer software methods and
documentation; hardware; the Company’s methods of operation; the procedures, forms and techniques
used in servicing the Company’s customers; claims or potential claims by or against the Company or
any other Released Party, strategies and future plans, and corporate governance matters. In
consideration of receiving and retaining payments or benefits under this Agreement, Consultant
shall not disclose to anyone, including without limitation, any person, firm, corporation or other
entity, or publish, or use for any purpose, any Confidential Information, except as explicitly
authorized in writing by the Company. Consultant agrees that if it appears that Consultant will be
compelled by law or judicial process to disclose any Confidential Information to avoid potential
liability, Consultant will notify the Company in

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writing immediately upon Consultant’s receipt of a subpoena or other legal process and will
cooperate with the Company to minimize publication of the subject Confidential Information. The
agreements contained in the foregoing two sentences shall terminate on the third anniversary of the
Effective Date.

     (b) Notwithstanding the provisions of Section 8(a), Consultant is authorized to use the
Confidential Information as necessary for the performance of services as a consultant for the
Company under Section 6 of this Agreement. Upon termination of the Consulting Term, Consultant
will promptly return to the Company all originals and copies of all documents and information in
any form relating to the business of the Company or any of the other Released Parties.

9. Choice Of Law And Venue. The Parties agree that the Agreement shall be performed in
Dallas County, Texas and that the laws of the State of Texas shall govern the enforceability,
interpretation and legal effect of this Agreement. The Parties also agree that venue of any action
to enforce the provisions of this Agreement, or any document executed in connection with this
Agreement, shall be in Dallas County, Texas.

10. Entire Agreement. This Agreement constitutes the entire understanding and agreement of
the Parties, and supersedes prior understandings and agreements, if any, among or between the
Parties with respect to the subject matter of this Agreement. There are no representations,
agreements, arrangements or understandings, oral or written, concerning the subject matter of this
Agreement between the Parties that are not fully expressed or incorporated by reference in this
Agreement. Notwithstanding the foregoing two sentences of this Section 10, any existing agreements
between Consultant and the Company or any of its subsidiaries or affiliates with respect to
proprietary information, inventions, non-competition or non-solicitation, including without
limitation the Proprietary Information Agreement, shall remain in full force and effect.

11. Amendments. Any modification of this Agreement or additional obligation assumed by
either Party in connection with this Agreement shall be binding only if evidenced in writing signed
by each Party. This Agreement cannot be changed or terminated orally, but may be changed only
through a written document executed by both Parties.

12. Severability. If any term of this Agreement shall be determined by a court of
competent jurisdiction to be illegal, invalid, unconscionable or unenforceable, the remaining
provisions will remain effective and legally binding, and the illegal, invalid, unconscionable or
unenforceable term shall be deemed not to be a part of this Agreement.

13. Binding Effect. This Agreement and the terms, covenants, conditions, provisions,
obligations, undertakings, rights and benefits of this Agreement shall be binding on, and shall
inure to the benefit of, the Parties and their respective heirs, executors, administrators,
representatives, officers, directors, shareholders, predecessors, successors, parents,
subsidiaries, affiliated entities, spouses, agents, attorneys, servants, consultants, principals,
partners, whether limited or general, and assigns, if any. Each of the Parties represents and
warrants that he or it has the authority to act on his or its behalf and to bind him or it to this
Agreement.

14. Disputes Relating to Agreement. If any action at law or in equity, including without
limitation an action for declaratory relief, is brought to enforce or interpret the provisions of
this

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Agreement, the party prevailing in the action shall recover from the adverse party his or its
actual damages and reasonable costs and expenses, including without limitation reasonable
attorneys’ fees incurred in connection with the action. In the event of the violation or threatened
violation of any of the covenants or promises in this Agreement, the non-breaching party shall be
entitled to injunctive relief, both preliminary and final, enjoining and restraining the violation
or threatened violation, which injunctive relief shall be in addition to all other remedies
available to the non-breaching party, at law or in equity.

15. Free Will. Each Party acknowledges that he or it has had an opportunity to consult
with his or its attorneys concerning the meaning, import, and legal significance of this Agreement,
and each has read this Agreement, as signified by their signatures on this Agreement, and are
voluntarily executing same after advice of counsel for the purposes and consideration herein
expressed. Each of Consultant and the individual executing this Agreement on behalf of the Company
acknowledges that he is under no duress or legal infirmity of any kind that would affect his
ability to understand and execute this Agreement.

     IN WITNESS WHEREOF, the Parties have executed this Agreement, to be effective as set forth in
this Agreement.

	 	 	 	 	 
	 	COMPANY:

FURMANITE CORPORATION

 	 
	 	By  	/s/ CHARLES R. COX
 	 
	 	 	Charles R. Cox 	 
	 	 	Chief Executive Officer 	 
	 

Date: April 7, 2010

	 	 	 	 	 
	 	CONSULTANT:

 	 
	 	/s/ MICHAEL L. ROSE
 	 
	 	Michael L. Rose 	 

Date: April 7, 2010

8Exhibit 10.8

Exhibit 10.8

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (“Agreement”) is effective as of the date of execution, by and
between EMMIS OPERATING COMPANY, an Indiana company (“Employer”), and JEFFREY H. SMULYAN, an
Indiana resident (“Executive”).

RECITALS

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

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

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

AGREEMENT

1. Employment Status and Duties. Upon the terms and subject to the conditions set
forth in this Agreement, Employer hereby employs Executive, and Executive hereby accepts exclusive
employment with Employer. During the Term (as defined herein), Executive shall serve as Chairman
of the Board and Chief Executive Officer. Executive shall have such duties, functions, authority
and responsibilities as are commensurate with such position and as are assigned by the Board of
Directors (the “Board”) of Emmis Communications Corporation (“ECC”). Executive’s services
hereunder shall be performed on an exclusive, full-time basis in a professional, diligent and
competent manner to the best of Executive’s abilities. Executive shall not undertake any outside
employment or business activities without the prior written consent of Employer. Executive shall
be permitted to serve on the board of charitable or civic organizations so long as such services:
(i) are approved in writing in advance by Employer; and (ii) do not interfere with Executive’s
duties and obligations under this Agreement. It is understood and agreed that the location for the
performance of Executive’s duties and services pursuant to this Agreement shall be the offices
designated by Employer in Indianapolis, Indiana. Employer shall use its best efforts to cause
Executive to be a member of the Board (a “Director”) throughout the Term and shall include
Executive in the management slate for election as a Director at every annual shareholders’ meeting
during the Term at which Executive’s term as a Director would otherwise expire. Executive shall
serve as a Director without additional remuneration (unless Employer elects to remunerate “inside
directors”) but shall be entitled to the benefit of indemnification pursuant to the terms of
Section 15.11. Executive shall also serve without additional remuneration as a director
and/or officer of one (1) or more of Employer’s subsidiaries or affiliates if appointed to such
position(s) by the Board and
shall also be entitled to the benefit of indemnification pursuant to the terms of Section
15.11.

 

 

 

2. Term. The term of this Agreement shall be for a three (3) year period commencing
on March 1, 2010, unless earlier terminated or extended in accordance with the provisions set forth
in this Agreement (the “Term”). Unless Executive or Employer provides the other written notice
prior to December 31, 2012 (or any December 31 thereafter) of such party’s election not to allow
the Agreement to automatically renew, the Agreement shall automatically renew for successive one
(1) year periods following the initial Term. Each year commencing on March 1 and ending on the
last day of February during the Term shall be a “Contract Year.” Upon failure of either party to
make the foregoing election by December 31, the Term of this Agreement shall be deemed renewed for
the Contract Year commencing the following March 1 and, as used throughout this Agreement, “Term”
shall include such additional Contract Year.

3. Base Salary; Signing Bonus; Auto Allowance. Upon the terms and subject to the
conditions set forth in this Agreement, Employer shall pay or cause to be paid to Executive an
annualized base salary (the “Base Salary”), payable pursuant to Employer’s customary payroll
practices and subject to applicable taxes and withholdings as required by law, for each Contract
Year, as set forth below:

	 	 	 	 	 
	First Contract Year:
	 	$	792,259	 
	 
	 	 	 	 
	Second Contract Year:
	 	$	825,000	 
	 
	 	 	 	 
	Third Contract Year:
	 	$	850,000	 

In the event that the Term automatically extends by additional one (1) year periods
pursuant to Section 2 above, the Base Salary for each such period shall be the
previous Contract Year’s Base Salary plus Twenty-Five Thousand Dollars ($25,000). For
purposes of clarity only, there will be no additional signing bonus or Performance Units
(defined below) in connection with any such automatic extension.

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

 

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In addition to the foregoing, on or about the date of execution of this Agreement, Executive
shall receive a one-time, lump sum signing bonus in the amount of Two Hundred Thousand Dollars
($200,000), subject to withholding for applicable taxes and as otherwise required by law (the
“Signing Bonus”); provided, however, in the event of a termination of Executive’s employment by
Employer for Cause (defined below) or termination of Executive’s employment by Executive without
Good Reason (defined below), Executive shall immediately repay the Signing Bonus to Employer.

During the Term, Executive shall receive a monthly auto allowance in the amount of Two
Thousand Dollars ($2,000) (subject to withholding and applicable taxes as required by law)
consistent with Employer’s policy or practices regarding such allowances, as such policy or
practices may be amended from time to time during the Term in Employer’s sole and absolute
discretion; provided, however, that in no event shall the auto allowance amount
paid to Executive pursuant to this provision be reduced.

4. Incentive Compensation.

4.1 Bonus Amounts. Upon the terms and subject to the conditions set forth in
this Section 4, each Contract Year Executive shall be eligible to receive one (1)
performance bonus in a target amount equivalent to One Hundred Twenty-Five percent (125%)
of Executive’s Base Salary, and the exact amount of such performance bonus, if any, shall
be determined on the basis of Executive’s attainment of certain performance and financial
goals to be determined by Employer, from time to time, in its sole and absolute discretion.

4.2 Payment of Bonus Amounts. Employer shall pay or cause to be paid to
Executive the bonus amounts, if earned according to the terms and conditions set forth in
Section 4.1; provided that, on the final day of the applicable measuring period for
such bonus: (i) this Agreement is in full force and effect and has not been terminated for
any reason (other than due to a material breach of this Agreement by Employer); and
(ii) Executive is fully performing all of Executive’s material duties and obligations
pursuant to this Agreement and is not in breach of any of the material terms and conditions
of this Agreement (provided that Executive’s failure or inability to perform his duties and
obligations because of his incapacity or death (pursuant to Section 10 or
11), including during leaves of absence, shall not be considered a breach of this
Agreement or non-performance under this provision). In addition, it is understood and
agreed that Employer may, at its sole election, pay any bonus amounts earned by Executive
pursuant to Section 4.1 in cash, loan foregiveness or Shares; provided that the

 

3

 

Shares evidencing any portion thereof are registered with the SEC on a
then-effective Form S-8 or other applicable registration statement and are issued without
restriction on resale (and further provided that the Shares are listed on a securities
exchange or over-the-counter market, which does not include listing on the “pink sheets,”
at the time of issuance), subject to any restrictions on resale under Employer’s insider
trading policy and applicable federal and state law. In the event that Employer elects
pursuant to this Section 4.2 to pay any bonus amounts in Shares, the percentage of
such bonus amounts payable in Shares shall be consistent with, and the exact number of
Shares to be awarded to Executive shall be determined in the same manner as, that utilized
for other senior management level employees. Any bonus amounts earned by Executive pursuant
to the terms and conditions of Section 4.1 shall be paid after the end of the
fiscal year for which the bonus is earned (but in no event later than ninety (90) days
after the end of such fiscal year). Any and all bonus amounts payable by Employer to
Executive pursuant to this Section 4 shall be subject to applicable taxes and
withholdings as required by law. Notwithstanding any other provisions of this Agreement,
any bonus pursuant to Section 4.1 shall be paid to Executive by the earlier of the
date specified herein or the date that is no later than two-and-a-half months after the end
of either Employer’s or Executive’s first taxable year (whichever period is longer) in
which any such bonus is no longer subject to a substantial risk of forfeiture for purposes
of Section 409A.

4.3 Equity Incentive Compensation. At such time or times following each
Contract Year when Employer grants equity incentive compensation to its senior management
level employees (but in no event later than ninety (90) days after the previous Contract
Year), Executive shall be granted an option (“Option”) to acquire One Hundred Fifty
Thousand (150,000) shares of Class A Common Stock of ECC (the “Shares”). For purposes of
clarity only, the first Option granted hereunder shall be granted within ninety (90) days
following February 28, 2011; and Executive shall not be entitled to any Option grant during
the first Contract Year.

Each Option granted pursuant to this Section 4.3 shall: (i) have an exercise
price per share equal to the Fair Market Value of the stock on the date of grant (as Fair
Market Value is defined in the applicable Equity Compensation Plan, or any subsequent
equity compensation or similar plan adopted by ECC and generally used to make equity-based
awards to senior management level employees of the Emmis Group (the “Plan”));
(ii) notwithstanding any other provisions in this Agreement, be granted according to the
terms and subject to the conditions of the Plan; (iii) be evidenced by a written grant
agreement containing such terms and conditions as are generally provided for other senior
management level employees of the Emmis Group; and (iv) be exercisable for Shares with such
restrictive legends on the certificates in accordance with the Plan and applicable
securities laws. Employer shall use reasonable efforts to register the Shares subject to
the award on a Form S-8 or other applicable registration statement at such time as the
Shares are issued to Executive. Each Option granted pursuant to this Section 4.3
is intended to satisfy the regulatory exemption from the application of Section
409A for certain options for service recipient shares, and it shall be administered
accordingly.

 

4

 

4.4 Performance Units. Employer will grant to Executive Performance Units
under the Emmis Communications Corporation 2004 Equity Compensation Plan, as amended (the
“Performance Units”), fully intending that the Performance Units qualify as
performance-based compensation under Section 162(m) of the Internal Revenue Code to the
maximum extent permitted by applicable law. The Performance Units will be granted on the
date of execution of this Agreement, March 1, 2010 and June 1, 2010 in an amount (on each
grant date) equal to Two Hundred Thirty-Three Thousand Three Hundred Thirty-Three Dollars
and Thirty-Three Cents ($233,333.33) divided by the Fair Market Value of a Share on the
relevant grant date (each, “Quarterly Performance Units”). Any fractional Performance
Units shall be rounded up to the nearest full share. The measurement periods for each of
the Quarterly Performance Units shall be each of the fiscal quarters ended February 28,
2010, May 31, 2010 and August 31, 2010 (each, a “Measurement Period”). If, upon completion
of a Measurement Period, the Performance Goal (defined below) has been met for that
Measurement Period, Executive shall be paid in respect of the Quarterly Performance Units
on the day following delivery of Employer’s compliance statement to its senior lender under
the Credit Agreement (defined below) for the relevant Measurement Period (each, a
“Quarterly Performance Unit Payment”). The Performance Goal for each Measurement Period is
whether or not Employer’s Consolidated EBITDA as of the end of such Measurement Period
exceeds the minimum amount required for continued compliance under the Credit Agreement
(defined below) as of the end of such Measurement Period (each, a “Performance Goal”). The
Quarterly Performance Unit Payment for each Measurement Period shall be one hundred percent
(100%) if the Performance Goal is attained and zero percent (0%) if the Performance Goal is
not attained.

The Compensation Committee of the Board (the “Comp Committee”) shall determine whether
or not the Performance Goal is attained using “Consolidated EBITDA” as defined in
Employer’s Amended and Restated Revolving Credit and Term Loan Agreement, as amended
through the date hereof (the “Credit Agreement”) for the relevant Measurement Period. If
the Performance Goal is achieved, the Comp Committee may elect, in its sole discretion, to
make the Quarterly Performance Unit Payment in cash, Shares or any combination of cash and
Shares. In the event that the Comp Committee elects to pay some or all of any Quarterly
Performance Unit Payment in Shares, the number of Shares to be awarded shall be Two Hundred
Thirty-Three Thousand Three Hundred Thirty-Three Dollars and Thirty-Three Cents
($233,333.33) less any amount paid in cash, the result of which shall be divided by the
Fair Market Value of a Share on the relevant payment date. Notwithstanding anything to the
contrary in this Section 4.4, Employer shall only be required to make each
Quarterly Performance Unit Payment to the extent permitted under the Credit Agreement. In
the event that any Quarterly Performance Unit Payment (whether in cash, Shares or any
combination of cash
and Shares) would cause a default under the Credit Agreement, Employer shall pay
Executive the maximum amount possible under the Credit Agreement without causing a default
thereunder; and Executive shall have no further right to any unpaid amounts attributable to
such Quarterly Performance Unit Payment.

 

5

 

In the event of a termination of Executive’s employment by Employer for Cause or
termination of Executive’s employment by Executive without Good Reason, Executive shall
immediately repay any and all Quarterly Performance Unit Payments previously paid to
Executive by Employer.

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

6. Fringe Benefits.

6.1 Vacation and Other Benefits. Each Contract Year, Executive shall be
entitled to Twenty-Five (25) business days of paid vacation in accordance with Employer’s
applicable policies and procedures for senior management level employees. Executive shall
also be eligible to participate in and receive the fringe benefits generally made available
to other senior management level employees of Employer in accordance with and to the extent
that Executive is eligible under, the general provisions of Employer’s fringe benefit plans
or programs; provided, however, Executive understands that these benefits may be increased,
changed, eliminated or added from time to time during the Term as determined in Employer’s
sole and absolute discretion.

6.2 Life and Disability Insurance. Each Contract Year, Employer agrees to
reimburse Executive in an amount not to exceed Ten Thousand Dollars ($10,000) for the
annual premium associated with Executive’s purchase or maintenance of a life or disability
insurance policy or other insurance policies on the life, or related to the care, of
Executive. Executive shall be entitled to freely select and change the beneficiary or
beneficiaries under such policy or policies. Notwithstanding anything to the contrary
contained in this Agreement, Employer’s obligations under this Section 6.2 are
expressly contingent upon Executive providing required information and taking all necessary
actions required of Executive in order to obtain and maintain the subject policy or
policies, including without limitation, passing any required physical examinations.
Additionally, with respect to that certain life insurance policy
issued by Pruco Life Insurance Company (number V1001742) and held by the Jeffrey H.
Smulyan Irrevocable Trust (the “Policy”), Executive represents and warrants that the Policy
is self-sustaining. Executive acknowledges that neither Employer nor any member of the
Emmis Group has any obligation to make any premium or other payments in connection with the
Policy and that Employer will not make any such additional premium payments other than as
specifically set forth in this Agreement. The parties acknowledge that the Split Dollar
Life Insurance Agreement (dated November 2, 1997) and corresponding Limited Collateral
Assignment (dated November 2, 1997), and all of the parties’ respective rights and
obligations pursuant to such agreements, shall remain unaffected and in full force and
effect.

 

6

 

7. Confidential Information.

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

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

 

7

 

8. Non-Interference; Injunctive Relief.

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

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

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

 

8

 

9. Termination of Agreement by Employer for Cause.

9.1 Termination. Employer may terminate this Agreement and Executive’s
employment hereunder for Cause (as defined in Section 9.3 below) in accordance with
the terms and conditions of this Section 9. Following a determination by Employer
that Executive should be terminated for Cause, Employer shall give written notice (the
“Preliminary Notice”) to Executive specifying the grounds for such termination, and
Executive shall have thirty (30) days after receipt of the Preliminary Notice to respond to
Employer in writing. If following the expiration of such thirty (30) day period Employer
reaffirms its determination that Executive should be terminated for Cause, such termination
shall be effective upon delivery by Employer to Executive of a final notice of termination
(the “Final Notice”). Notwithstanding Section 9.5, a termination by Executive
pursuant to Section 9.5 shall be deemed a termination by Employer for Cause to
which this Section 9.1 shall apply if such termination by Executive occurs after
delivery of a Preliminary Notice and Executive is thereafter terminated for Cause as
specified in such Preliminary Notice.

9.2 Effect of Termination. In the event of termination for Cause

as provided in Section 9.1 above:

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

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

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

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

 

9

 

9.3 Definition of Cause. For purposes of this Agreement, “Cause” shall be
defined to mean any of the following: (i) Executive’s failure, refusal or neglect to
perform any of Executive’s material duties or obligations under this Agreement (or any
material duties assigned to Executive consistent with the terms
of this Agreement) or abide by any applicable policy of Employer, or Executive’s
breach of any material term or condition of this Agreement, and continuation of such
failure, refusal, neglect, or breach after written notice and the expiration of a ninety
(90) day cure period; provided, however, that it is not the parties’
intention that the Employer shall be required to provide successive such notices, and in
the event Employer has provided Executive with a notice and opportunity to cure pursuant to
this Section 9.3, Employer may terminate this Agreement for a subsequent breach
similar or related to the breach for which notice was previously given or for a continuing
series or pattern of breaches (whether or not similar or related) without providing notice
and an opportunity to cure; (ii) commission of any felony or any other crime involving an
act of moral turpitude which is harmful to Employer’s business or reputation;
(iii) Executive’s action or omission, or knowing allowance of actions or omissions, which
are in violation of any law or any of the rules or regulations of the Federal
Communications Commission (the “FCC”), or which otherwise jeopardize any of the licenses
granted to Employer or any member of the Emmis Group in connection with the ownership or
operation of any radio or television station; (iv) theft in any amount; (v) actual or
threatened violence against another employee or individual; (vi) sexual or other prohibited
harassment of others; (vii) unauthorized disclosure or use of trade secrets or proprietary
or confidential information, as described more fully in Section 7.1; (viii) any
action which brings Employer or member of the Emmis Group into public disrepute, contempt,
scandal or ridicule, and which is harmful to Employer’s business or reputation; and (ix)
any matter constituting cause under applicable laws. For purposes of clarity, neither
disability nor death (as set forth in Sections 10 and 11) shall qualify as
“Cause” hereunder.

9.4 Termination by Employer Without Cause. Notwithstanding anything to the
contrary contained in this Agreement, Employer may, by action of the Board, terminate this
Agreement and Executive’s employment hereunder at any time during the Term for any reason.
In the event the Board elects to terminate Executive’s employment pursuant to this
provision: (i) such termination shall be effective immediately upon delivery of written
notice of such termination to Executive; (ii) Executive shall have no further obligations
or liabilities hereunder, except Executive’s obligations under Sections 7 and
8, which shall survive the termination of this Agreement; and (iii) Employer shall
have no further obligations or liabilities except to pay to Executive those amounts and
benefits that would otherwise be payable to Executive in the event of a “Qualifying
Termination” (as that term is defined in the CIC Agreement (defined below)), except the
amounts calculated pursuant to Section 4(a)(ii) of the CIC Agreement shall be one
and one-half (1.5) times (i) Executive’s highest annual rate of Base Salary during the
36-month period immediately prior to Executive’s date of termination and (ii) Executive’s
highest annual incentive bonus earned from Employer (and/or its affiliates) during the last
three (3) fiscal years of Employer immediately preceding Executive’s date of termination
(collectively, the “Severance Payment”), rather than the three (3) times multiple provided
in Section 4(a)(ii) of the CIC Agreement.

 

10

 

9.5 Termination by Executive for Good Reason. Executive may terminate this
Agreement and Executive’s employment hereunder at any time during the Term for “Good
Reason”, such termination to be effective sixty (60) days after Executive provides written
notice thereof to the Board. For purposes of this provision, “Good Reason” shall be
defined to mean either: (a) Employer’s breach of any of the material terms of this
Agreement (after written notice of such breach from Executive and a reasonable opportunity
to cure); or (b) any diminution in Executive’s duties or authority by the Board without
Executive’s consent, including without limitation the assignment to Executive of any
duties, functions or responsibilities inferior to the duties, functions, authority or
responsibilities contemplated in Section 1 above. In the event of a termination
for Good Reason by Executive, on the effective date of such termination: (i) Executive
shall have no further obligations or liabilities hereunder, except Executive’s obligations
under Sections 7 and 8, which shall survive the termination of this
Agreement; and (ii) Employer shall have no further obligations or liabilities except to pay
to Executive the Severance Payment.

9.6 Employer Election not to Renew. Notwithstanding anything to the contrary
contained herein, in the event that, subject to its obligations under the CIC Agreement,
Employer elects not to renew this Agreement according to its terms for any Contract Year
after February 28, 2013 and does not offer Executive employment pursuant to a written
employment agreement on substantially similar to those contained herein (which shall
include without limitation the same title, duties, Base Salary, incentive, equity and other
compensation (not including signing bonus or Performance Units) in effect at expiration of
the Term), and Executive terminates employment, such election shall be considered a
termination by Employer other than for Cause for all purposes under the CIC Agreement and
hereunder, including without limitation Section 9.4 hereof. If Employer elects not
to renew this Agreement according to its terms for any Contract Year after February 28,
2013, any offer of subsequent employment made by Employer to Executive shall be made in the
form of a proposed written agreement and shall be made no later than thirty (30) days after
the election not to renew is given.

10. Termination of Agreement by Employer for Incapacity.

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

 

11

 

10.2 Obligations after Termination. Executive shall have no further
obligations or liabilities hereunder after an Incapacity Termination Date except
Executive’s obligations under Sections 7 and 8 that shall survive the
termination or expiration of this Agreement. Employer shall, not later than two (2) weeks
after an Incapacity Termination Date, pay to Executive those amounts described in
Section 9.2(ii); provided, however, that in the event an Incapacity Termination
Date occurs at least six (6) months after the commencement of a Contract Year during the
Term, Employer shall pay to Executive a pro-rated portion of the bonus amount for the
Contract Year during which the Incapacity Termination Date occurs, such amount to be
determined in the sole discretion of Employer. Employer shall have no further obligations
or liabilities hereunder following an Incapacity Termination Date except those set forth in
the next sentence. For a period of five (5) years following an Incapacity Termination
Date, Employer shall pay to Executive, according to Employer’s customary payroll practices,
an amount equal to seventy five percent (75%) of Executive’s then-current Base Salary
(subject to withholding for applicable taxes and as otherwise required by law). It is
understood and agreed that (i) the foregoing payment obligation shall be inclusive of any
benefits received by Executive pursuant to any applicable group disability or similar
policy maintained by Employer for the benefit of its employees; (ii) Employer may elect
(but shall not be obligated) to insure its payment obligations hereunder; (iii) Employer
shall not be entitled to an offset as a result of any disability benefits received by
Executive in connection with any private disability insurance policy purchased by
Executive; and (iv) Employer’s payment obligation hereunder shall terminate in the event
that Executive fully recovers from such Incapacity.

11. Death of Executive.

11.1 Termination of Agreement. This Agreement shall terminate immediately
upon Executive’s death. In the event of such termination, Employer shall have no further
obligations or liabilities hereunder except its obligations under Section 11.2
below which shall survive such termination.

11.2 Compensation. Employer shall, not later than two (2) weeks after
Executive’s date of death, pay to Executive’s estate or designated beneficiary or
beneficiaries those amounts described in Section 9.2(ii); provided, however, that
in the event Executive’s date of death occurs at least six (6) months after the
commencement of a Contract Year during the Term, Employer shall pay to Executive’s estate
or designated beneficiary a pro-rated portion of the bonus amount for the Contract Year
during which Executive’s death occurs, such amount to be determined in the sole discretion
of Employer. Additionally, Employer shall make a one-time, lump sum payment in an amount
equal to one (1) year of Executive’s then-current Base Salary (subject to withholding for
applicable taxes and as otherwise required by law). Amounts payable pursuant to this
Section 11 shall not be reduced by the value of any benefits payable to Executive’s
estate or designated beneficiaries under any applicable life insurance plan or policy,
including without limitation, any policy contemplated by Section 6.2 of this
Agreement. In the event that Executive dies after termination of this Agreement pursuant
to Section 9 or 10, all amounts required to be paid by
Employer prior to Executive’s death in connection with such termination that remain
unpaid as of Executive’s date of death shall be paid to Executive’s estate or designated
beneficiary.

 

12

 

12. Section 409A. This Agreement is intended to comply with Internal Revenue Code
Section 409A(a)(2)(B)(i) and the regulations thereunder (collectively, “Section 409A”), and it is
intended that no amounts payable hereunder shall be subject to tax under Section 409A. Employer
shall use commercially reasonable efforts to comply with Section 409A with respect to payment of
benefits hereunder. For purposes of the Agreement, “termination of employment,” “terminates
employment,” or any variation of such term shall mean “separation from service” within the meaning
of Section 409A.

13. Adjustments for Changes in Capitalization of Employer. In the event of any change
in Employer’s outstanding Shares during the Term by reason of any reorganization, recapitalization,
reclassification, merger, stock split, reverse stock split, stock dividend, asset spin-off, share
combination, consolidation, or other event, the number and class of Shares and/or Options awarded
pursuant to Section 4 (and any applicable Option exercise price) shall be adjusted by the
Comp Committee in its sole and absolute discretion and, if applicable, in accordance with the terms
of the Plan and the Option agreement evidencing the grant of the Option. The determination of the
Comp Committee shall be conclusive and binding. All adjustments pursuant to this Section shall be
made in a manner that does not result in taxation to the Executive under Section 409A.

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

	 	(i)	 	If to Employer:

Emmis Communications Corporation

40 Monument Circle, Suite 700

Indianapolis, Indiana 46204

Attn: Legal Department

With a copy to:

Emmis Communications Corporation

40 Monument Circle, Suite 700

Indianapolis, Indiana 46204

Attn: CFO and/or COO

 

13

 

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

15. Miscellaneous.

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

15.2 Payment Delays Required by Section 409A. To the extent required by
Section 409A, if Executive is a “specified employee” for purposes of such Section, payments
on account of Executive’s separation from service shall be delayed to the earliest date
permissible under Section 409A.

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

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

15.5 Assignment. This Agreement, and Executive’s rights and obligations
hereunder, may not be assigned by Executive to any third party; provided,
however, that Executive may designate pursuant to Section 15.7 one (1) or
more beneficiaries to receive any amounts that would otherwise be payable hereunder to
Executive’s estate. Employer may assign all or any portion of its rights and obligations
hereunder to any other member of the Emmis Group or to any successor or assignee of
Employer pursuant to a reorganization, recapitalization, merger, consolidation, sale of
substantially all of the assets or stock of Employer, or otherwise.

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

 

14

 

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

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

15.9 Executive’s Warranty and Indemnity. Executive hereby represents and
warrants that Executive: (i) has the full and unqualified right to enter into and fully
perform this Agreement according to each and every term and condition contained herein;
(ii) has not made any agreement, contractual obligation, or commitment in contravention of
any of the terms and conditions of this Agreement or which would prevent Executive from
performing according to any of the terms and conditions contained herein; and (iii) has not
entered into any agreement with any prior employer or other person, corporation or entity
which would in any way adversely affect Executive’s or Employer’s right to enter into this
Agreement. Furthermore, Executive hereby agrees to fully indemnify and hold harmless
Employer and each of its subsidiaries, affiliates and related entities, and each of their
respective officers, directors, employees, agents, attorneys, shareholders, insurers and
representatives from and against any and all losses, costs, damages, expenses (including
attorneys’ fees and expenses), liabilities and claims, arising from, in connection with, or
in any way related to Executive’s breach of any of the representations or warranties
contained in this Section 15.9.

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

 

15

 

15.11 Indemnification. Executive shall be entitled to the benefit of the
indemnification provisions set forth in Employer’s Amended and Restated Articles of
Incorporation and/or By-Laws, or any applicable corporate resolution, as the same may be
amended from time to time during the Term (not including any limiting amendments or
additions, but including any amendments or additions that add to or broaden the protection
afforded to Executive at the time of
execution of this Agreement) to the fullest extent permitted by applicable law.
Additionally, Employer shall cause Executive to be indemnified in accordance with Chapter
37 of the Indiana Business Corporation Law (the “IBCL”), as the same may be amended from
time to time during the Term, to the fullest extent permitted by the IBCL as required to
make Executive whole in connection with any indemnifiable loss, cost or expense incurred in
Executive’s performance of Executive’s duties and obligations pursuant to this Agreement.
Employer shall also maintain during the Term an insurance policy providing directors’ and
officers’ liability coverage in a commercially reasonable amount. It is understood that
the foregoing indemnification obligations shall survive the expiration or termination of
the Term.

15.12 Change in Control. Effective as of January 1, 2008, Executive and ECC
have entered into that certain Emmis Communications Corporation Change in Control Severance
Agreement (the “CIC Agreement”). In the event of a “Change in Control” (as defined in the
CIC Agreement), the rights and obligations of Executive and Employer shall be set forth in
the CIC Agreement. Notwithstanding anything to the contrary contained in this Agreement or
the CIC Agreement, a Change in Control shall be deemed not to have occurred if, immediately
following the transaction or transactions described in the definition of Change in Control
in the CIC Agreement: (i) Executive is Chairman of the Board or Chief Executive Officer of
Employer or any successor thereto, including without limitation any entity established as a
result of a separation of the radio and publishing divisions of Employer (collectively,
“Successor”); or (ii) Executive retains the ability to vote at least fifty percent (50%) of
all classes of stock of ECC or any Successor; or (iii) Executive retains the ability to
elect a majority of the Board or any Successor.

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

	 	 	 	 	 
	 	EMMIS OPERATING COMPANY (“Employer”)

 	 
	 	By:  	/s/ J. Scott Enright
 	 
	 	 	J. Scott Enright 	 
	 	 	Executive Vice President and
General Counsel 	 
	 
	 	JEFFREY H. SMULYAN

(“Executive”)

 	 
	 	/s/ Jeffrey H. Smulyan
 	 
	 	Jeffrey H. Smulyan 	 
	 	 	 

 

16

 

	 	 	 	 	 

Exhibit A

Change in Control Agreement

The Emmis Communications Corporation Change in Control Severance Agreement between Emmis
Communications Corporation and Jeffrey H. Smulyan effective January 1, 2008 is hereby incorporated
by reference.

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