Document:

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                                                                    EXHIBIT 10.1

                                                                [EXECUTION COPY]

                    SEPARATION AGREEMENT AND GENERAL RELEASE

            This Separation Agreement and General Release ("Agreement") is
entered into by and between LIN Television Corporation ("Company") and Deborah
R. Jacobson ("Executive").

                                  WITNESSETH:

            WHEREAS, Executive is presently employed by Company as its Vice
President Corporate Development and Treasurer and serves as an officer of LIN TV
Corp. ("Parent Company") and all of its subsidiaries. For purposes of this
Agreement, Executive's separation from employment with Company shall constitute
an automatic termination of all positions held by Executive with Company, Parent
Company and any and all affiliated companies;

            WHEREAS, Company and Executive entered into that certain Separation
Agreement and General Release, dated February 9, 2004 (the "First Separation
Agreement") and, by mutual written agreement, dated March 31, 2004, the parties
terminated the First Separation Agreement; and

            WHEREAS, Company and Executive wish to set forth their respective
obligations concerning Executive's separation from Company;

            NOW, THEREFORE, in consideration of the premises and conditions set
forth herein, the sufficiency of which is hereby acknowledged, Company and
Executive agree as follows:

1. Employment. Executive is an employee at will. Executive or Company may
terminate Executive's employment with Company at any time, for any reason or no
reason at all. In the event that Executive's employment is not terminated by
either party prior to August 13, 2004, Executive's employment with the Company
shall automatically terminate on and as of August 13, 2004. For purposes of this
Agreement, the term "Separation Date" shall mean the last day of Executive's
employment with the Company. In the event that, the Parent Company shall have
executed and delivered a Sale Agreement (as hereinafter defined) on or before
the Separation Date, Executive covenants and agrees that following the
Separation Date, Executive shall make herself available to the Company from time
to time as the Company may reasonably request to confer and provide advice and
reasonable assistance to the Company in connection with matters relating to the
consummation of the Sale Agreement (as hereinafter defined) and such other
matters incidental thereto.

2. Position. Executive shall continue as Company's Vice President Corporate
Development and Treasurer through the Separation Date. Executive understands and
agrees that Executive shall continue to perform Executive's duties in a manner
consistent with her past performance during this time and, in the event that the
Company shall have hired a new Chief Financial Officer prior to the Separation
Date, Executive shall cooperate with Company in good faith to assist with the
transition ("Transition") of such new Chief Financial Officer of the Company.

3. Severance.

   a. In the event that the Separation Date is August 13, 2004 or the Company
chooses to terminate Executive's employment prior to August 13, 2004, then
Executive (or her estate, in the event of Executive's death) shall be paid a
lump sum severance payment in the amount of Eight Hundred Forty Thousand Dollars
($840,000), plus Executive shall be entitled to a 2004 bonus (based upon
Company's policies following past practice, which includes Executive's
performance), with an annual target of $134,000, which shall be prorated based
upon the Separation Date (hereinafter the severance payment plus pro-rated bonus
(if applicable) are referred to as the "Severance Payments"). Subject to the

<PAGE>

provisions of the General Release attached hereto as Exhibit A, such Severance
Payments shall be made within fourteen (14) days of the Separation Date, in
accordance with Company's normal payroll practices and subject to all
withholdings required by law.

      b. If Executive chooses to terminate Executive's employment and, at her
election, the Separation Date is a date prior to August 13, 2004, Executive
shall receive no Severance Payments and no prorated bonus. Executive shall
receive Executive's base salary through the last day of employment and shall be
entitled to no other payments or remuneration, except for the stock options (if
entitled to in accordance with the Equity Plans, as defined below), or other
vested employee benefit to which Executive may be entitled pursuant to the
Equity Plans or the Company's or the Parent Company's benefit plans in which
Executive is a participant.

      c. Solely in the event that (i) on or before the Separation Date, the
Parent Company shall have executed and delivered a binding definitive agreement
(or series of related definitive agreements) providing for a transaction (or
series of related transactions) the consummation of which would result in a
Change in Control (as defined in the 2002 Stock Plan) (collectively, a "Sale
Agreement") and (ii) such Sale Agreement provides for the acquisition of the
capital stock of Parent Company (whether by merger or otherwise) for a per share
price equal to an amount referenced on Schedule 3(c) hereto, then, subject to
the consummation of the transactions contemplated by such Sale Agreement (the
"Sale Agreement Closing"), Executive shall be entitled to a bonus in the amount
set forth opposite such price per share on such Schedule 3(c), which amount
shall be due and payable by the Company within thirty (30) days of the date of
the Sale Agreement Closing. By way of illustration and not of limitation or
modification of the foregoing, in the event that the Separation Date is a date
prior to the date on which the Company executes and delivers a Sale Agreement,
Executive shall have no right to compensation under this paragraph.

      d. Solely in the event that (i) on or before the Separation Date, the
Parent Company shall have executed and delivered a Sale Agreement, (ii) such
Sale Agreement provides for the acquisition of the capital stock of Parent
Company (whether by merger or otherwise) for a per share price equal to an
amount less than $30.00, and (iii) the board of directors of the Parent Company
(or the Compensation Committee thereof, as applicable) determines to issue bonus
awards to any of the officers of the Parent Company in respect of the service of
such officers on behalf of the Parent Company in connection with such Sale
Agreement, then, subject to the occurrence of the Sale Agreement Closing,
Executive shall be eligible to be considered by the board of directors of the
Parent Company (or the Compensation Committee thereof, as applicable), in its
sole discretion, for a bonus award. By way of illustration and not of limitation
or modification of the foregoing, in the event that the Separation Date is a
date prior to the date on which the Company executes and delivers a Sale
Agreement, Executive shall have no right to be considered for a bonus award
under this paragraph.

      e. Solely in the event that on or before the Separation Date, the Parent
Company shall have executed and delivered a Sale Agreement, then, subject to the
occurrence of the Sale Agreement Closing, Executive shall be paid a lump sum
payment in an amount equal to Four Hundred Twenty Thousand Dollars ($420,000),
which amount shall be due and payable within thirty (30) days of the date of the
Sale Agreement Closing. By way of illustration and not of limitation or
modification of the foregoing, in the event that the Separation Date is a date
prior to the date on which the Company executes and delivers a Sale Agreement,
Executive shall have no right to compensation under this paragraph.

      f. Notwithstanding the foregoing paragraphs (a) through (e) and any other
provisions to the contrary set forth in this Agreement, the Severance Payments
and any and all other consideration due and payable hereunder are expressly
conditioned upon (i) Executive's performance of her covenants and obligations
hereunder and (ii) execution by Executive of a General Release and a
Resignation, which shall be presented to Executive by the Company on the
Separation Date, in the forms attached hereto as Exhibit A and Exhibit B,
respectively. Executive understands and agrees that the said Severance Payments
are

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good and valuable consideration for the General Release and Resignation and that
Executive shall only be entitled to receive the Severance Payments and any other
consideration contemplated hereby upon execution of said General Release and
Resignation. Executive shall be entitled to no other payments or remuneration
except as expressly provided in this Section 3 and Section 4(g), if applicable,
pursuant to the terms and conditions thereof.

4. Stock Options. Executive agrees to the following with respect to Executive's
participation in the Parent Company's stock plans (1998 Stock Option Plan, the
1998 Phantom Stock Plan and the 2002 Stock Plan (collectively the "Equity
Plans")) and agrees that Parent Company and the Company, as applicable, have
fully satisfied all of their respective obligations to Executive under the
Equity Plans:

      a. Executive shall have the right to exercise 28,095 options issued March
3, 1998 at an exercise price of $21.00 per share, which options must be
exercised on or before sixty (60) days following the Separation Date, or if such
60th day falls on a non-business day, then the last immediately preceding
business day before such 60th day ("Exercise Date"). (By way of illustration and
not of limitation or modification of the foregoing, if the Separation Date is
August 13, 2004, then the Exercise Date will be October 12, 2004.) Prior to such
date, such amounts may be exercised on dates and in share amounts selected by
Executive in one or more transactions.

      b. Executive shall have the right to exercise 30,890 options issued
September 30, 1998 at an exercise price of $21.00 per share, which options must
be exercised on or before the Exercise Date. Prior to such date, such amounts
may be exercised on dates and in share amounts selected by Executive in one or
more transactions.

      c. As of each date set forth on Schedule 4(c) attached hereto, Executive
shall have the right to exercise that certain number of options set forth
opposite such date, which options were issued May 2, 2002 at an exercise price
of $22.00 per share, which options must be exercised on or before the Exercise
Date. Prior to such Exercise Date, such amounts may be exercised on dates and in
share amounts selected by Executive in one or more transactions. With respect to
any options set forth on Schedule 4(c) that are not exercisable on and as of the
Separation Date (collectively, "2002 Unvested Options"), such 2002 Unvested
Options shall be deemed not vested and shall be canceled upon and as of the
Separation Date.

      d. As of each date set forth on Schedule 4(d) attached hereto, Executive
shall have the right to exercise that certain number of options set forth
opposite such date on Schedule 4(d), which options were issued May 2, 2003 at an
exercise price of $23.60 per share, which options must be exercised on or before
the Exercise Date. With respect to any options set forth on Schedule 4(d) that
are not exercisable on and as of the Separation Date (collectively, "2003
Unvested Options," and, together with the 2002 Unvested Options, the "Unvested
Options")), such 2003 Unvested Options shall be deemed not vested and shall be
canceled upon and as of the Separation Date.

      e. Executive shall have the right to exercise 30,952 units issued March 3,
1998 under the Parent Company's 1998 Phantom Stock Plan (47,619 original units
less 16,667 units exercised by Executive on 8/5/2003, 11/04/2003, and 3/5/2004)
at an exercise price of $0.00 per share, which units must be exercised as soon
as practicable after the Separation Date but in no event later than thirty (30)
days following the Separation Date. Prior to such date, such amounts may be
exercised on dates and in share amounts selected by Executive in one or more
transactions.

      f. In the event the Parent Company shall have executed and delivered a
Sale Agreement on or before the Separation Date, the right of Executive to
exercise all options that are not otherwise exercisable on or as of the
Separation Date pursuant to Sections 4(c) and 4(d) hereof, shall be accelerated
and such options shall be deemed vested and exercisable on and as of the
Separation Date, provided that such

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options must be exercised on or before the Exercise Date.

      g. In the event that the Parent Company shall have not executed and
delivered a Sale Agreement on or before the Separation Date, Executive shall
have the right to receive, in addition to all other amounts due and payable
pursuant to the terms and subject to the conditions of Section 3 hereof, an
amount equal to the Unvested Option True-Up Payment (as defined below), which
right shall be exercisable only by written notice from Executive (the "True-Up
Notice") and received by the Company at any time on or before the Exercise Date.
For purposes hereof, the "Unvested Option True-Up Payment" means an amount equal
to (i) the product of (A) total number of Unvested Options and (B) the Market
Value of the Unvested Options, minus (ii) the total of the exercise price for
all Unvested Options. For purposes of this Agreement, the term "Market Value"
means an amount equal to the average of the highest and lowest trading prices of
the publicly traded stock of LIN TV Corp. as reported by the New York Stock
Exchange ("NYSE") for the date on which the Company shall have received the
True-Up Notice, provided that such True-Up Notice is received by the Company
prior to the close of trading on the NYSE for such date and, in the event that
such True-Up Notice is received after the close of trading on the NYSE, the
Market Value shall be determined as of the trading day immediately following the
receipt of the True-Up Notice.

      h. All option amounts and phantom units are calculated as of June 1, 2004.
Any changes made by Executive after this date will change the vested option
numbers stated above or set forth on the schedules attached hereto. All other
options shall be cancelled. All of the options referred to herein, if not
exercised in a timely fashion as set forth herein, shall expire and be void.
References to Executive in this Paragraph 4 shall include Executive's estate, if
applicable, and will be governed by the terms of the Equity Plans. Except as may
be set forth herein, Executive's options and phantom units shall be governed by
the terms of the Equity Plans.

5. Assistance With Compliance Requirements. For up to one (1) year from the
Separation Date, Company shall provide Executive with all reasonable assistance
necessary for Executive to comply with Executive's reporting obligations under
Section 16 of the Securities Exchange Act of 1934 to the same degree that the
Company may assist other executives and officers of the Company.

6. Severance Compensation Agreement. Reference is hereby made to the Severance
Compensation Agreement dated September 5, 1996, as amended on October 1, 1999
and further amended on August 30, 2000 and further amended on October 1, 2002,
by and between Executive and Company (hereinafter "Severance Compensation
Agreement"), a copy of which is attached hereto as Exhibit C. Executive
acknowledges and agrees that the Company has fully satisfied all of its
obligations to Executive under the Severance Compensation Agreement. By signing
this Agreement, the parties understand and agree that the Severance Compensation
Agreement is hereby terminated and of no further force or effect.

7. Confidentiality of this Agreement. Company and Executive hereby agree that
the terms and existence of this Agreement are confidential and shall not be
disclosed to anyone by Executive, except as required by law or if necessary in
order to enforce this Agreement. In addition, Executive agrees to keep
confidential all non-public information concerning Company or any of its
affiliates. Company and Executive agree that except as may be required by law,
neither of them will make any statement or disclosure that is intended to, or
will be reasonably likely to, disparage the other in any way. The Company's
obligations pursuant to the previous sentence shall be limited to the actions of
the executive officers of the Parent Company only. In the event that Executive
breaches this paragraph, all payments hereunder shall immediately cease and
Company shall be entitled to recover any payments previously made.

8. Return of Materials. Executive covenants and agrees that, on or before the
Separation Date, Executive will return all Company property in Executive's
possession or control, including without

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limiting the generality of the foregoing, credit cards, keys, telephones,
computer equipment and discs, and Company documents. Notwithstanding the
foregoing and as soon as is administratively feasible following the Separation
Date, (i) Company will transfer title to the Company car that has been assigned
to Executive, and Executive will be responsible for all registration fees,
insurance and taxes, including sales tax, if applicable; and (ii) Company will
change Executive's cell phone service to Executive's name, which cell phone
Executive shall retain. The parties agree that the value of the automobile that
will be taxable to Executive will be the value of the automobile as of the
Separation Date as determined based upon the applicable value reflected in
Kelley Blue Book or such other reasonably similar, reputable third-party
valuation publication.

9. Voluntary Assent. Executive affirms that no other promises or agreements of
any kind have been made to or with Executive by any person or entity whatsoever
to cause Executive to sign this Agreement, and that Executive fully understands
the meaning and intent of this Agreement. Executive further states and
represents that Executive has carefully read this Agreement, understands the
contents hereof, has consulted with Executive's counsel of choice, Robert P.
Brooks, of the law firm of Adler Pollack & Sheehan, freely and voluntarily
assents to all of the terms and conditions hereof, and is signing this Agreement
as Executive's own free act. The execution of this Agreement shall not be
construed as an admission of a violation of any statute or law or breach of any
duty or obligation by either the Company or the Executive.

10. Waiver. No waiver of any provision of this Agreement shall be enforceable
unless in writing and signed by the waiving party. No waiver of any provision of
this Agreement shall affect the validity or enforceability or constitute a
waiver of future enforcement of that provision or of any other provision of this
Agreement by that party or any other party.

11. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not in any way affect the validity or enforceability of any
other provision of this Agreement. Whenever possible, this Agreement shall be
construed in a manner to permit the full enforcement of each provision hereof
and any declaration of invalidity or unenforceability of any provision hereof
shall be construed to minimize the effect of such declaration.

12. Notice. Any and all notices required or permitted herein shall be in writing
and shall be deemed to have been duly given if delivered personally or if mailed
by registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

            (a)   If to Company:

                        LIN TV Corp.
                        Attn: Denise M. Parent
                        Four Richmond Square, Suite 200
                        Providence, Rhode Island 02906

            (b)   If to Executive:

                        Ms. Deborah R. Jacobson
                        166 Arlington Avenue
                        Providence, Rhode Island 02906

                                       5
<PAGE>

                  With a copy to:

                        Robert P. Brooks, Esq.
                        Adler Pollock & Sheehan
                        2300 Financial Plaza
                        Providence, Rhode Island 02903

      Any party hereto may by notice in writing change the address to which
notices are to be addressed hereunder. Notice hereunder shall be deemed to have
been received on the date delivered to or received at the premises of the
addressee if delivered personally, and in the case of mail three (3) days
following the depositing of the same in the United States Mail as above stated.

13. Binding Effect; Assignment; Executive's Beneficiary. This Agreement,
together with any amendments hereto, shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors, assigns,
heirs and personal representatives, including, without limitation, any successor
corporation. Upon the death of Executive, any amount otherwise payable to
Executive hereunder shall be paid to Executive's beneficiary or estate.

14. Amendments. This Agreement may only be amended by the written mutual consent
of the parties hereto.

15. Entire Agreement. This Agreement contains the entire agreement and
understanding by and between Company and Executive and supercedes all prior
agreements between Company and Executive with respect to the subject matter
hereof, and no representations, promises, agreements, or understandings, written
or oral, relating to the employment of Executive by Company not contained herein
shall be of any force or effect.

16. Headings. The various headings in this Agreement are inserted for
convenience only.

17. Governing Law. This Agreement shall in all respects be subject to and
governed by the laws of the State of Rhode Island.

18. Arbitration. The paragraph entitled Arbitration contained in that certain
Nonqualified Stock Option Letter Agreement, dated as of May 2, 2002, by and
between Executive and Company, a copy of which is attached hereto as Exhibit D
shall remain in full force and effect and apply to this Agreement and is fully
incorporated herein by this reference.

19. Expenses. Each party shall pay all costs and expenses that it incurs with
respect to the negotiations, execution and delivery and performance of this
Agreement except that the Company shall pay the reasonable fees and expenses of
Adler Pollock & Sheehan, counsel to Executive in connection with this Agreement,
such payment by the Company not to exceed Five Thousand Dollars ($5,000).

        [Remainder of page intentionally blank; signature page follows.]

                                       6
<PAGE>

            IN WITNESS WHEREOF, the parties have set their respective hands and
seals to this Agreement as of the dates indicated below.

LIN TELEVISION CORPORATION                      Witness

By:
   -----------------------------                --------------------------

Its:
    ----------------------------

Date: July 19, 2004

/s/ Deborah R. Jacobson
--------------------------------                --------------------------
DEBORAH R. JACOBSON                             Witness
Date: July 20, 2004

For purposes of Section 4 of this
Separation Agreement and General Release:

LIN TV CORP.                                    Witness

By:
   -----------------------------                --------------------------

Its:
    ----------------------------

Date: July 19, 2004

                                       7
<PAGE>

                                                                [EXECUTION COPY]

                                    EXHIBIT A

                                 GENERAL RELEASE

            In consideration of the payments and benefits being provided
pursuant to that certain Separation Agreement and General Release ("Separation
Agreement") entered into by and between LIN Television Corporation ("Company")
and the undersigned Executive ("Executive"), which Executive acknowledges are
payments and benefits that Executive would not be entitled to but for this
General Release, Executive, for Executive and for Executive's heirs, executors,
administrators and assigns, does hereby fully, forever, irrevocably and
unconditionally release, remise and discharge Company, and its parent company,
LIN TV Corp., subsidiary corporations and all affiliates in existence from time
to time, and its and their respective officers, directors, employees, and agents
(collectively, the "Released Parties"), from and against any and all claims,
charges, complaints, demands, actions, causes of action, suits, rights, debts,
sums of money, costs, accounts, covenants, contracts, agreements, promises,
doings, omissions, damages, executions, obligations, liabilities, and expenses
(including attorneys' fees and costs), of every kind and nature whatsoever,
whether known or unknown, which Executive ever had, now has, or may in the
future have against any Released Party and arising out of the state of things
from the beginning of time to the date of Executive's execution of this General
Release, including, but not limited to, all claims arising out of Executive's
employment with, and separation from employment with, Company, all
discrimination claims under the Americans with Disabilities Act of 1990 (42
U.S.C. Section 12112), Title VII of the Civil Rights Act of 1964 (42 U.S.C.
Section 2000e et seq.), the Age Discrimination in Employment Act of 1967, as
amended (29 U.S.C. Section 621 et seq.), the Employee Retirement Income Security
Act of 1974 (29 U.S.C. Section 1001 et seq.), the Federal False Claims Act, the
Rhode Island Fair Employment Practices Act (R.I. Gen. Laws Section 28-5-1 et
seq.), the Rhode Island Civil Rights of People with Disabilities Act (R.I. Gen.
Laws Section 42-87-1 et seq.), the Rhode Island Civil Rights Act (R.I. Gen. Laws
Section 42-112-1 et seq.), and all wrongful discharge claims or other common law
and statutory tort and contract claims; provided, however, that Executive does
not release Company from any claims arising out of Company's failure to perform
its obligations under the Separation Agreement and General Release between
Executive and Company, dated as of [date to be inserted,], 2004.

            Executive represents and warrants that Executive has not filed any
complaint, charge, or claim for relief against any Released Party (as defined
herein) with any local, state or federal court or administrative agency.
Executive further covenants and agrees not to file any complaints, charges, or
claims against any Released Party with respect to any matters arising out of
Executive's employment with or separation from Company, except such complaints,
charges or claims as may arise out of the breach by Company of its obligations
under the Separation Agreement.

            Executive is voluntarily and knowingly executing this General
Release. Executive acknowledges that Executive has been given at least
twenty-one (21) days to consider this General Release and that Company has
advised Executive in writing, by the Separation Agreement, to consult with an
attorney of Executive's own choosing prior to signing this General Release.
Executive may revoke this General Release at any time during the seven (7) day
period following Executive's execution of this General Release. Executive
acknowledges and agrees that Company shall have no responsibilities under the
Separation Agreement until the expiration of this seven (7) day revocation
period. If Executive exercises this right to revoke, this General Release shall
become null and void and all sums paid or provided under the said Separation
Agreement shall be immediately returned to Company. Executive agrees that if
Executive fails to return all such sums paid or provided, Executive shall be
responsible for all costs, including reasonable attorneys' fees, incurred by
Company in retrieving such sums.

                                                /s/ Deborah R. Jocobson
-------------------------------                 -----------------------
Witness                                         Deborah R. Jacobson

                                                Dated: July 20, 2004

<PAGE>

                                                                [EXECUTION COPY]

                                    EXHIBIT B

                             RESIGNATION OF OFFICER

I, Deborah R. Jacobson, hereby resign as Vice President-Corporate Development
and Treasurer of LIN TV Corp. and all of its subsidiaries, and as Treasurer and
Assistant Secretary of Banks Broadcasting, Inc. and Banks-Boise, Inc., effective
as of _____________ __, 2004.

                                                /s/ Deborah R. Jacobson
                                                -----------------------
                                                Deborah R. Jacobson

<PAGE>

                                                                [EXECUTION COPY]

                                    EXHIBIT C

                    COPY OF SEVERANCE COMPENSATION AGREEMENT
           (PER SECTION 6 OF SEPARATION AGREEMENT AND GENERAL RELEASE)

<PAGE>

                                                                [EXECUTION COPY]

                                    EXHIBIT D

              EXTRACT OF NONQUALIFIED STOCK OPTION LETTER AGREEMENT
                        CONCERNING ARBITRATION PROCEDURES
          (PER SECTION 18 OF SEPARATION AGREEMENT AND GENERAL RELEASE)

<PAGE>

                                                                [EXECUTION COPY]

                                  SCHEDULE 3(c)

<TABLE>
<CAPTION>
 PRICE PER SHARE              BONUS AMOUNT
------------------            ------------
<S>                           <C>
$30.00 - $30.99               $  750,000
$31.00 - $31.99               $  887,500
$32.00 - $32.99               $1,037,500
$33.00 - $33.99               $1,200,000
$34.00 - $34.99               $1,375,000
$35.00 - $35.99               $1,562,500
$36.00 - $36.99               $1,812,500
$37.00 - $37.99               $2,062,500
$38.00 - $38.99               $2,312,500
$39.00 - $39.99               $2,562,500
$40.00 and greater            $2,812,500
</TABLE>

<PAGE>

                                                                [EXECUTION COPY]

                                  SCHEDULE 4(c)

<TABLE>
<CAPTION>
DATE ON OR AFTER:          NUMBER OF OPTIONS:
-----------------          ------------------
<S>                        <C>
   May 3, 2003                  10,125
   May 3, 2004                  10,125
   May 3, 2005                  10,125
   May 3, 2006                  10,125
</TABLE>

<PAGE>

                                                                [EXECUTION COPY]

                                  SCHEDULE 4(d)

<TABLE>
<CAPTION>
DATE ON OR AFTER:          NUMBER OF OPTIONS:
-----------------          ------------------
<S>                        <C>
   May 2, 2004                   5,063
   May 2, 2005                   5,063
   May 2, 2006                   5,062
   May 2, 2007                   5,062
</TABLE><PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT, dated as of August 16, 2004 (this "Agreement"),
by and between SOLA International Inc., a Delaware corporation (the "Company"),
and Jamie Wade (the "Executive").

      WHEREAS, the Executive possesses skills and experience that are of value
to the Company; and

      WHEREAS, the Company has determined that it is in its best interest to
secure the continued services and employment of the Executive on behalf of the
Company in accordance with the terms of this Agreement and the Executive is
willing to render such services on the terms and conditions set forth herein.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto agree as follows:

      1. Employment Term. Subject to the terms and provisions of this Agreement,
the Company hereby agrees to employ the Executive, and the Executive hereby
agrees to be employed exclusively by the Company, for the period commencing on
the date hereof and ending on the first anniversary of the date hereof (the
"Initial Term"), unless terminated sooner or extended as hereinafter provided
(the "Employment Term"). The Executive will not be permitted to be employed by
or retain a partnership in any other commercial business enterprise.

      Unless the Company or the Executive shall have given the other party
written notice not less than 90 days prior to the expiration of the Initial Term
that the Initial Term shall not be extended, the Initial Term shall
automatically be extended for successive one-year periods (each one-year period
an "Additional Term") until either party shall have given the other party
written notice not less than 90 days prior to the expiration of any Additional
Term that such Additional Term shall not be extended. If either party shall have
elected not to extend the Initial Term or any Additional Term, this Agreement
shall terminate upon expiration of such term, unless terminated sooner as
hereinafter provided.

      2. Duties. During the Employment Term, the Executive shall serve as Senior
Vice President, General Counsel and Corporate Secretary of the Company, and such
other position(s) as the Chief Executive Officer of the Company (the "CEO") may
reasonably designate. During the Employment Term, the Executive shall be
responsible for the management and control of the day-to-day legal and Corporate
Secretary operations of the Company. The Executive shall also perform such other
duties, services and responsibilities as are determined from time to time by the
CEO consistent with the duties of a General Counsel or Corporate Secretary. In
performing such duties, the Executive will report directly to the CEO.

<PAGE>

      The Executive shall devote all of his business time and attention and
ability to the performance of such duties, services and responsibilities, and
will use his best efforts to promote the interests of the Company. The Executive
will not, directly or indirectly, render services of a business, commercial or
professional nature to any other person or organization, whether for
compensation or otherwise, without the prior consent of the CEO.

      3. Compensation. In full consideration of the performance by the Executive
of the Executive's obligations during the Employment Term (including any
services by the Executive as an officer, director, employee or member of any
committee of any subsidiary or affiliate of the Company, or otherwise on behalf
of Company), the Executive shall be compensated as follows:

      (a) The Executive shall receive a base salary (the "Base Salary") at an
annual rate of $240,000 per year during the Employment Term, payable in
accordance with the normal payroll practices of the Company then in effect. The
Executive will be eligible to receive annual increases in the Base Salary as
determined in the sole discretion of the CEO and approved by the Board of
Directors.

      (b) The Executive shall be eligible for a 40% bonus pursuant to the terms
and conditions of the Company's "Management Incentive Plan" or successor
thereto.

      (c) The Executive shall receive a car allowance equal to $5,000 toward a
lease down payment and reimbursement of up to $600/month for the lease costs,
including taxes. In addition, all reasonable expenses for insurance,
maintenance, and fuel will be reimbursed up to $4,400 per year for the
employee-provided vehicle only.

      The Executive shall be solely responsible for taxes imposed on the
Executive by reason of any compensation and benefits provided under this
Agreement and all such compensation and benefits shall be subject to applicable
withholding taxes.

      4. Benefits. In addition to the payments and awards described in Section 3
of this Agreement, during the Employment Term, the Executive shall be entitled
to participate in any and all employee benefit plans the Company regularly
provides its other executives or employees including, but not limited to,
health, dental, vision, pension or other retirement plans.

      5. Termination. The Executive's employment with the Company and the
Employment Term shall terminate upon the expiration of the Initial Term or any
Additional Term or upon the earlier occurrence of any of the following events
(the date of termination, the "Termination Date"):

      (a) The death or disability of the Executive.

      (b) The termination of employment by the Company for Cause. As used
herein, "Cause" shall mean Executive's: (i) willful misconduct, neglect of
duties, or any act or omission any or all of which materially adversely affect
the Company's business after receipt from the Company of a detailed statement of
the cause for termination, or (ii) conviction of, or plea of guilty or nolo
contendere to, a felony.

      (c) The termination of employment by the Company other than for Cause.

      (d) Resignation by the Executive for Good Reason. As used herein, "Good
Reason"

                                       2
<PAGE>

shall mean (i) regular assignment by the Company to the Executive of duties and
responsibilities that materially diminish his position as Senior Vice President,
General Counsel and Corporate Secretary of the Company; or (ii) reduction of the
Executive's Base Salary or a material reduction in his employee benefits (other
than incentive compensation) that is not part of, or is disproportionate to a
general reduction by the Company of executive compensation.

      6. Termination Payments. If the Executive's employment with the Company
terminates or the Initial Term or any Additional Term expires, the Company's,
its subsidiaries' and its affiliates' sole obligation hereunder, except as
otherwise provided in this Section 6, shall be to pay the Executive (a) any
accrued and unpaid Base Salary as of the Termination Date and (b) an amount
equal to such reasonable and necessary business expenses incurred by the
Executive in connection with the Executive's employment on behalf of the Company
on or prior to the Termination Date but not previously paid to the Executive
(the "Accrued Compensation"). In addition, if the Executive's employment with
the Company terminates pursuant to either Section 5(c) or Section 5(d) hereof,
or if the Company elects not to extend the Initial Term or any Additional Term
for any reason other than Cause (each, a "Severance Event"), the Company's, its
subsidiaries' and its affiliates' sole obligation hereunder shall be to (a) pay
the Accrued Compensation, (b) continue to pay the Executive the Base Salary (at
the rate in effect at the time of termination of employment) for a period of six
months, commencing with the first of the month following the month in which
termination takes place, (c) pay the Executive pro-rated bonus based upon the
average Management Incentive Plan compensation (or successor thereto) paid or
payable to him for the three completed fiscal years immediately prior to the
date of such termination (including the year of termination if the Termination
Date occurs on the last day of a fiscal year). If the Executive has not received
three years of bonus payments at the time of termination, the pro-rated bonus
payment will be based upon the average of all bonus compensation paid prior to
the date of such termination, (the "MIP Severance"), (d) continue to provide the
Executive with the benefits described in Section 4 of this Agreement for a
period of six months after the date of such termination and (e) pay up to
$25,000 for outplacement assistance on behalf of the Executive in the form of
professional consultation during the twelve months after the date of such
termination, in the latter case, subject to the Company's approval which may not
be unreasonably withheld. All monies due under (b), (c) and (d) above will be
reduced by an amount equivalent to any and all compensation, in whatever form
received or promised, that is paid to the executive for services or advice of
any kind provided to another organization or individual during the six month
period following termination. The executive recognizes and agrees to promptly
and accurately report all such compensation to the company.

      The Company shall have no obligation to the Executive for any payments or
benefits other than the Accrued Compensation if the Executive (i) elects not to
extend the Initial Term or any Additional Term or (ii) terminates his employment
with the Company other than for Good Reason.

      7. Executive Covenants.

      (a) Unauthorized Disclosure. The Executive recognizes that the services to
be performed during the Employment Term by the Company are special, unique, and
extraordinary and that by reason of the Executive's employment with the Company
the Executive has acquired and will acquire confidential information and trade
secrets concerning the Company's operations ("Company Confidential Information")
and the operations of its affiliates ("Affiliate Confidential Information").
Accordingly, it is agreed that:

                                       3
<PAGE>

            (i) The Executive shall not divulge to any entity or person, other
      than the Company or its affiliates, or, in the event of an assignment of
      this Agreement pursuant to Section 14 hereof, the assignee and its
      affiliates, if any, whether during the Employment Term or after a
      Severance Event, any Company Confidential Information concerning the
      Company's customer lists, research or development programs or plans,
      processes, methods or any other of its trade secrets, except information
      that is then available to the public in published literature and became
      publicly available through no fault of the Executive.

            (ii) The Executive shall not divulge to any person or entity,
      including an assignee of this Agreement and its affiliates, but excepting
      the Company and its affiliates, whether during the Employment Term or
      after a Severance Event, any Affiliate Confidential Information acquired
      by the Executive concerning the customer lists, research or development
      programs or plans, processes, methods or any other trade secrets of the
      Company or any affiliate, except information which is then available to
      the public in published literature and became publicly available through
      no fault of the Executive.

            (iii) The Executive acknowledges that all information the disclosure
      of which is prohibited hereby is of a confidential and proprietary
      character and of great value to the Company and its affiliates. Upon a
      Severance Event, the Executive shall forthwith deliver up to the Company
      all records, memoranda, data and documents of any description which refer
      or relate in any way to Company Confidential Information or Affiliate
      Confidential Information and return to the Company any of its equipment
      and property which may then be in the Executive's possession or under the
      Executive's personal control. Upon the assignment of this Agreement,
      pursuant to Section 14, the Executive shall forthwith deliver up to the
      Company all records, memoranda, data and documents of any description
      which refer or relate in any way to Affiliate Confidential Information and
      return to the Company any of its equipment and property which may then be
      in the Executive's possession or under the Executive's personal control.

      (b) Non-competition. By and in consideration of the Company's entering
into this Agreement and the payments to be made and benefits to be provided by
the Company hereunder, and in further consideration of the Executive's exposure
to the Company Confidential Information and Affiliate Confidential Information,
it is agreed that during the Employment Term, and for twelve months following a
Severance Event, the Executive will not, directly or indirectly, as an officer,
director, stockholder, partner, associate, owner, employee, consultant or
otherwise, become or be interested in or associated with any other corporation,
firm or business engaged in the same or a similar or competitive business with
the Company or any of its affiliates in any geographical area in which the
Company or any of its affiliates are then engaged in business, provided that the
Executive's ownership, directly or indirectly, of not more than one percent of
the issued and outstanding stock of a corporation the shares of which are
regularly traded on a national securities exchange or in the over-the-counter
market shall not, in any event, be deemed to be a violation of this Subsection.

      (c) Non-solicitation. The Executive agrees not to solicit any person
employed by the Company or its affiliates. As used herein, "solicit" or
"soliciting" means any direct or indirect approach or appeals to such an
employee to leave the Company. Indirect solicitation includes but is not limited
to, acting through a third party or parties or characterizing job advertisements
or opportunities in such a fashion so as to entice any employee. The Executive
agrees that, if approached by a Company employee, the Executive will:

                                       4
<PAGE>

            (i) Inform the employee of the Executive's obligations set forth in
      this subparagraph;

            (ii) Refer the employee to the relevant Company Human Resources
      personnel; and

            (iii) Request that the employee confirms in writing to the Company
      that he has approached the Executive and confirms that request in a
      memorandum to such Human Resources organization.

      (d) Remedies. The Company shall be entitled, in addition to any other
right or remedy that it may have at law or in equity with respect to a breach of
this Agreement by the Executive (including the right to terminate payments
pursuant to Section 6 hereof), to an injunction, without the posting of a bond
or other security, enjoining or restraining the Executive from any violation or
threatened violation of this Section 7 and Sections 8 and 9 hereof and the
Executive hereby consents to the issuance of such an injunction.

      8. Proprietary Rights. The Executive agrees that any invention made by the
Executive during the Employment Term shall belong to the Company if (a) it was
made in the normal course of the duties of the Executive or in the course of
duties falling outside the Executive's normal duties but specifically assigned
to the Executive, and the circumstances in either case were such that an
invention might reasonably be expected to result from the carrying out of such
duties, or (b) the invention was made in the course of the duties of the
Executive and, at the time of making the invention, because of the nature of the
Executive's duties and the particular responsibilities arising from the nature
of the Executive's duties, the Executive had a special obligation to further the
interests of the Company. In addition, if (a) the Executive during the
Employment Term shall make any improvement or develop any know-how,
copyrightable work or design, (b) such improvement, know-how, copyrightable work
or design is relevant to the business of the Company or any of its subsidiaries,
and (c) such improvement, know-how, copyrightable work or design arose directly
out of any work carried out during the Employment Term, or out of Confidential
Company Information or Confidential Affiliate Information to which the Executive
had access while in the employ of the Company, then such improvement, know-how,
copyrightable work or design shall belong to the Company, whether or not it was
disclosed to the Company during the Employment Term by the Company.

      In the event that the Executive makes any invention or develops any
improvement, know-how, copyrightable design or work which belongs to the
Company, the Executive shall fully, freely and immediately communicate the same
to the Company and the Executive shall, if and as desired by the Company execute
all documents and do all acts and things at the Company's cost which may be
necessary or desirable to obtain letters patent or other adequate protection in
any part of the world for such invention, improvement, know-how, copyrightable
work or design and to vest the same in the Company for the Company's benefit.
The Executive hereby irrevocably appoints the Company as the Executive's
attorney in the Executive's name and on the Executive's behalf to execute all
such deeds and documents and to do all such acts and things as may be necessary
to give effect to this Subsection in the event that the Executive fails to
comply within seven days with the written directions given by the Company
pursuant to this Subsection.

      The Executive has been notified and understands that the provisions of the
two immediately preceding paragraphs of this Section 8 do not apply to any
invention that qualifies fully under the provisions of Section 2870 of the
California Labor Code, which states as follows:

                                       5
<PAGE>

      (a) Any provision in an employment agreement which provides that an
      employee shall assign, or offer to assign, any of his or her rights in an
      invention to his or her employer shall not apply to an invention that the
      employee developed entirely on his or her own time without using the
      employer's equipment, supplies, facilities, or trade secret information
      except for those inventions that either:

      (i) Relate at the time of conception or reduction to practice of the
      invention to the employer's business, or actual or demonstrably
      anticipated research or development of the employer, or

      (ii) Result from any work performed by the employee for the employer.

      (b) To the extent a provision in an employment agreement purports to
      require an employee to assign an invention otherwise excluded from being
      required to be assigned under subdivision (a), the provision is against
      the public policy of this state and is unenforceable.

      9. Non-Disparagement. In the event of a Severance Event both the Executive
and the Company agree that neither of them will disparage the other in any
manner.

      10. Moral Rights Waiver. As used herein, "Moral Rights" shall mean any
right to claim authorship of a work, any right to object to any distortion, or
other modification of a work, and any similar right, existing under the law of
any country in the world, or under any treaty. Executive hereby irrevocably
transfers and assigns to the Company any and all Moral Rights that Executive may
have in any services or materials. Executive also hereby forever waives and
agrees never to assert against the Company, its successors or assigns any and
all Moral Rights Executive may have in any services or materials, even after
termination of this Agreement.

      11. Release. In consideration of the payments and covenants under this
Agreement, the Executive hereby releases the Company, its employees, officers,
directors, subsidiaries, affiliates, successors and assigns and the Company, its
subsidiaries, affiliates, successors and assigns hereby release the Executive
from any and all claims for relief or causes of action relating to any matters
of any kind arising out of his employment (or its termination) with the Company
arising prior to the date hereof.

      The Executive expressly waives all rights and remedies under Section 1542
of the Civil Code of the State of California, which provides as follows:

      A general release does not extend to claims which the creditor does not
      know or suspect to exist in his favor at the time of executing the
      release, which if known by him must have materially affected his
      settlement with the debtor.

      The Executive understands that if the facts with respect to which this
Agreement is executed are found hereafter to be different from the facts that he
now believes to be true, the Executive expressly accepts and assumes the risk of
such possible differences in facts and agrees that this Agreement shall be and
remain effective notwithstanding such differences in facts.

                                       6
<PAGE>

      12. Notices. All notices, consents, waivers or demands of any kind which
either party to this Agreement may be required or may desire to serve on the
other party in connection with this Agreement shall be in writing and may be
delivered by personal service or sent by telegraph or cable or sent by
registered or certified mail, return receipt requested with postage thereon
fully prepaid. All such communications shall be addressed as follows:

                 The Company:              SOLA International Inc.
                                           Torrey View Corporate Centre
                                           Suite 300
                                           10590 West Ocean Air Drive
                                           San Diego, California 92130
                                           Attn: Jeremy C Bishop

                 The Executive:            Jamie A. Wade
                                           3318 Ridgetop Road
                                           Ames, Iowa 50014

      If sent by telegraph or cable, a confirmed copy of such telegraphic or
cable notice shall be promptly sent by mail (in the manner provided above) to
the addressees. Service of any such communication made only by mail shall be
deemed complete on the date of actual delivery as shown by the addressee's
registry or certification receipt or at the expiration of the third (3rd)
business day after the date of mailing whichever is later in time. Either party
hereto may from time to time, by notice in writing served upon the other as
aforesaid, designate a different mailing address or a different person to which
such notices or demands are thereafter to be addressed or delivered. Nothing
contained in this Agreement shall excuse either party from giving oral notice to
the other when prompt notification is appropriate, but any oral notice given
shall not satisfy the requirement of written notice as provided in this
paragraph.

      13. Governing Law. This Agreement shall be governed and construed and
enforced in accordance with the laws of the State of California (regardless of
that jurisdiction or any other jurisdictions' choice of law principles).

      14. Assignment. The Company may assign this Agreement to any affiliate of
the Company or to any non-affiliate of the Company that shall succeed to the
business and assets of the Company. In the event of such assignment, the Company
shall cause such affiliate or non-affiliate as the case may be, to assume the
obligations of the Company hereunder by written agreement addressed to the
Executive concurrently with any assignment with the same effect as if such
assignee were the Company hereunder. This Agreement is personal to the Executive
and the Executive may not assign any rights or delegate any responsibilities
hereunder without the prior approval of the Company.

      15. Entire Agreement. This Agreement is the entire Agreement between the
Company and the Executive with respect to the subject matter hereof and cancels
and supersedes any and all other agreements regarding the subject matter hereof
between the parties. This Agreement may not be altered, modified, changed, or
discharged except in writing signed by both of the parties.

      16. Severability. If any one or more of the provisions (or any part
thereof) of this Agreement, or any application thereof to the circumstances,
shall be held to be invalid, illegal or unenforceable in any respect the
remaining provisions (or any part thereof) shall not in any way be affected or
impaired thereby.

                                       7
<PAGE>

      17. Arbitration. Except as otherwise provided in Section 7(d) hereof, with
respect to any controversy arising out of or relating to this Agreement, or the
subject matter thereof, such controversy shall be settled by final and binding
arbitration in San Diego, California or such other location as the company may
determine, in accordance with the then existing rules ("the Rules") of the
American Arbitration Association ("AAA") and judgment upon the award rendered by
the arbitrators may be entered in any court having jurisdiction thereof;
provided, however, that the law applicable to any controversy shall be the law
of California, regardless of its or any jurisdiction's choice of law principle.
Arbitration shall be the sole and exclusive remedy for the resolution of the
disputes described above. In any such arbitration, the award or decision shall
be rendered by a majority of the members of a board of arbitration consisting of
three members, one of whom shall be appointed by each party and the third of
whom shall be the chairman of the panel and be appointed by mutual agreement of
said two party appointed arbitrators. In the event of the failure of said two
arbitrators to agree, within five working days after the commencement of the
arbitration, upon appointment of the third arbitrator, the third arbitrator
shall be appointed by the AAA in accordance with the Rules. In the event that
either party shall fail to appoint an arbitrator within five days after the
commencement of the arbitration proceeding, such arbitrator and the third
arbitrator shall be appointed by the AAA in accordance with the Rules. The
arbitrators are empowered but not limited in making an award in favor of the
Executive to require any act or acts that they believe necessary to effectuate
the intent of this Agreement. The Company agrees that any costs of any
arbitration borne by the Executive, including the Executive's reasonable
attorneys' fees and expenses and the costs, fees and expenses of the Executive's
appointed arbitrator, shall be borne by the Company to the extent attributable
to issues on which the Executive prevails on the merits.

      18. Excise Tax Limitation.

      (a) Notwithstanding anything contained in this Agreement to the contrary,
to the extent that the payments and benefits provided under this Agreement and
benefits provided to, or for the benefit of, the Executive under any other
Company plan or agreement (such payments or benefits are collectively referred
to as the "Payments") would be subject to the excise tax (the "Excise Tax")
imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code"), the Payments shall be reduced (but not below zero) if and to the extent
necessary so that no Payment to be made or benefit to be provided to the
Executive shall be subject to the Excise Tax (such reduced amount is hereinafter
referred to as the "Limited Payment Amount"). Unless the Executive shall have
given prior written notice specifying a different order to the Company to
effectuate the foregoing, the Company shall reduce or eliminate the Payments, by
first reducing or eliminating the portion of the Payments which are not payable
in cash and then by reducing or eliminating cash payments, in each case in
reverse order beginning with payments or benefits which are to be paid the
farthest in time from the Determination (as hereinafter defined). Any notice
given by the Executive pursuant to the preceding sentence shall take precedence
over the provisions of any other plan, arrangement or agreement governing the
Executive's rights and entitlements to any benefits or compensation.

      (b) The determination of whether the Payments shall be reduced to the
Limited Payment Amount pursuant to this Agreement and the amount of such Limited
Payment Amount shall be made, at the Company's expense, by an accounting firm
selected by the Executive which is one of the five largest accounting firms in
the United States (the "Accounting Firm"). The Accounting Firm shall provide its
determination (the "Determination"), together with detailed supporting
calculations and documentation to the Company and the Executive within ten (10)
days of the date of termination, if applicable, or such other time as requested
by the Company

                                       8
<PAGE>

or by the Executive (provided the Executive reasonably believes that any of the
Payments may be subject to the Excise Tax) and if the Accounting Firm determines
that no Excise Tax is payable by the Executive with respect to the Payments, it
shall furnish the Executive and the Company with an opinion reasonably
acceptable to the Executive that no Excise Tax will be imposed with respect to
any such Payments. The Determination shall be binding, final and conclusive upon
the Company and the Executive.

      19. Non-Waiver of Rights. The failure to enforce at any time the
provisions of this Agreement or to require at any time performance by any other
party of any provisions hereof shall in no way be construed to be a waiver of
such provisions or to affect either the validity of this Agreement or any part
hereof, or the right of any party to enforce each and every provision in
accordance with its terms. No waiver by any party hereto of any breach by any
other party hereto of any provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions at the
time or at any prior or subsequent time.

      20. Headings. The headings contained herein are solely for the purposes of
reference, are not part of this Agreement and shall not in any way affect the
meaning or interpretation of this Agreement.

      21. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

      22. THE EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD THE OPPORTUNITY TO CONSULT
WITH THE ADVISOR OF HIS CHOICE AND THAT HE HAS FREELY AND VOLUNTARILY ENTERED
INTO THIS AGREEMENT.

      IN WITNESS WHEREOF, the Company has caused this Employment Agreement to be
executed by authority of its Board of Directors, and the Executive has hereunto
set the Executive's hand, on the day and year first above written.

                                      SOLA International Inc.:

                                      By: /s/ Jeremy Bishop
                                          -----------------------------------
                                          Jeremy Bishop
                                          Chief Executive Officer

                                          Executive:

                                      /s/ Jamie A. Wade
                                      ---------------------------------------
                                      Jamie A. Wade

                                       9

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