EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the "Agreement") is effective as of March 1,
2003, by and between EMMIS OPERATING COMPANY, an Indiana corporation ("Employer"
or "Emmis"), and XXXX X. XXXX, an Indiana resident ("Executive").
RECITALS
WHEREAS, Employer and its subsidiaries are engaged in the ownership and
operation of certain radio and television stations, magazines, and related
operations; and
WHEREAS, Employer desires to employ Executive as an 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. 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.
2. Term. The term of Executive's employment shall commence on March 1,
2003, and continue until February 28, 2006 (the "Term"). This Agreement shall
expire at the end of the Term unless earlier terminated in accordance with the
terms of this Agreement. For purposes of this Agreement, the term "Contract
Year" shall be defined to mean each twelve (12) month period commencing on March
1, 2003, and on each anniversary thereof during the Term. The term "First
Contract Year" shall refer to the period commencing on March 1, 2003, and ending
on February 29, 2004; "Second Contract Year" shall refer to the period
commencing on March 1, 2004, and ending on February 28, 2005; "Third Contract
Year" shall refer to the period commencing on March 1, 2005, and ending on
February 28, 2006.
3. Executive's Position, Duties and Authority.
3.1 Position. Employer shall employ Executive, and Executive shall
serve as an executive of Employer, and of any successor of Employer by
merger, acquisition of substantially all of the assets or stock of
Employer, or otherwise. Executive shall serve as President - Publishing
Division or shall serve in such other senior management positions to which
Employer may appoint Executive.
3.2 Duties and Authority. Executive shall have such duties, functions,
authority and responsibilities as are commensurate with the office(s)
Executive holds with the Employer during the Term.
3.3 Directorships and Other Offices. If Executive is elected as a
Director of Emmis Communications Corporation, Executive shall serve in such
position without additional remuneration but shall be entitled to the
benefit of indemnification pursuant to the terms of Section 15.11.
Executive shall also serve without remuneration as a director and/or
officer of one or more of Employer's subsidiaries or affiliates if
appointed to such position(s) by Employer.
4. Full-Time Services. Executive's services pursuant to this Agreement
shall be performed on a full-time and exclusive basis in a professional,
diligent and competent manner to the best of Executive's abilities. Executive
shall not undertake any outside employment or outside business activity without
the prior written consent of Employer; provided, however, that Executive shall
be permitted to serve on the board of charitable or other civic organizations so
long as such services do not interfere with Executive's duties and obligations
pursuant to this Agreement.
5. Location of Employment; Travel. The location for performance of
Executive's services hereunder shall be the Employer's headquarters offices in
Indianapolis, Indiana. Executive shall undertake such travel as the performance
of Executive's duties pursuant to this Agreement may require.
6. Compensation.
6.1 Base Salary. Employer shall pay or cause to be paid to Executive a base
salary in the amount of Two Hundred Fifty Five Thousand Dollars ($255,000)
(subject to withholding for applicable taxes and as otherwise required by law)
(the "Base Salary") each Contract Year during the Term. Employer shall pay
Executive the Base Salary according to Employer's customary payroll practices.
Executive acknowledges and agrees that: (i) Employer may pay a portion of
Executive's Base Salary (not to exceed ten percent (10%) without Executive's
prior written consent) in Shares (as defined below) pursuant to a plan adopted
for Emmis employees or for other executive-level officers of Employer; and (ii)
ten percent (10%) of any Base Salary paid pursuant to this Agreement is being
paid in consideration of Employer's exclusive rights set forth in Section 10 of
this Agreement.
6.2 Annual Incentive Compensation. For each Contract Year during the
Term, Executive shall be eligible to receive one (1) annual performance
bonus up to a target amount of One Hundred Thousand Dollars ($100,000)
(subject to withholding for applicable taxes and as otherwise required by
law) (each, a "Contract Year Bonus"), the exact amount of which shall be
determined by means of Executive's attainment of certain performance goals
as determined each Contract Year by the Compensation Committee of the
Employer's Board of Directors (the "Compensation Committee"). Executive
acknowledges and agrees that, as a material condition to receiving a
Contract Year Bonus, as of the end of each respective Contract Year: (i)
this Agreement must be in effect and not previously terminated for any
reason (other than a breach of this Agreement by Employer); and (ii)
Executive must be fully performing Executive's duties and obligations as
required hereunder and shall not be in breach of any of the material terms
and conditions of this Agreement. It is understood and agreed that Emmis
may, at its sole election, pay any Contract Year Bonus, if any, in cash or
Shares. In the event Emmis elects pursuant to this Section 6.2 to pay a
Contract Year Bonus in Shares, the exact number of Shares to be awarded to
Executive shall be determined by dividing the total dollar amount of the
applicable Contract Year Bonus by the average of the reported high and low
Share price on a valuation date to be used by Employer in determining
similar cash incentive compensation awards for other members of Employer's
senior management team (the "Valuation Formula"). Any Contract Year Bonus
amounts earned by Executive pursuant to the terms and conditions of this
Section 6.2 shall be awarded promptly following Employer's fiscal year end
earnings release or at such other time as annual incentive compensation
awards are made to other members of Employer's senior management team (but
in no event later than ninety (90) days after the expiration of the
applicable Contract Year).
6.3 Equity Incentive Compensation. On or about the commencement of
each Contract Year during the Term, or at any other time or times during
each Contract Year when Employer generally awards Options (as defined
below) to members of Employer's senior management team, Executive shall
receive an option to acquire Fifteen Thousand (15,000) shares of Class A
Common Stock of Emmis Communications Corporation (the "Shares") pursuant to
the terms and subject to the conditions of the applicable Equity Incentive
Plan of Employer (each, an "Option"). It is understood and agreed that in
the event of any change in the outstanding Shares by reason of any
reorganization, recapitalization, stock split, reverse stock split, stock
dividend, share combination, consolidation or similar event, including
without limitation a Separation Event (as defined below), the number and
class of Shares awarded pursuant to this Agreement or covered by an Option
granted pursuant to this Section 6.3 and any applicable Option exercise
price shall be adjusted by the Compensation Committee in its sole
discretion and in accordance with the terms of the applicable Equity
Incentive Plan of Employer and the Option agreement evidencing the grant of
the Option. The determination of the Compensation Committee shall be
conclusive and binding.
6.4. Auto Allowance. During the Term, Executive shall receive a
monthly auto allowance in the amount of One Thousand Dollars ($1,000)
(subject to withholding for applicable taxes and as otherwise required by
law) consistent with Employer's policy or practice regarding such
allowances, as such policy or practice may be changed or eliminated from
time to time during the Term in Employer's sole discretion; provided,
however, that in no event shall the amount paid to Executive under this
Section 6.4 be reduced.
7. Business Expenses. Employer shall pay or reimburse Executive for all
reasonable expenses actually incurred by Executive during the Term directly
related to the performance of Executive's services hereunder upon presentation
of expense statements, vouchers or similar documentation, or such other
supporting information as Employer may require of Executive.
8. Fringe Benefits and Vacation. During the Term, Executive shall be
entitled to four (4) weeks of paid vacation in accordance with Employer's
applicable policies and procedures for executive-level employees. Executive
shall also be eligible to participate in and receive the fringe benefits
generally made available to other executive-level employees of Employer in
accordance with the general provisions of Employer's fringe benefit plans or
programs; provided, however that 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.
9. Confidential Information.
9.1 Non-Disclosure. Executive acknowledges that certain information
concerning the business of Employer is of a proprietary and highly
confidential nature, and that as a result of Executive's employment with
Employer, Executive has received and developed, and will hereafter receive
and continue to develop, proprietary and other confidential information
concerning the business of Employer and its subsidiaries which, if known to
competitors of Employer, would damage Employer, its subsidiaries, and their
respective businesses. Accordingly, Executive 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
or its representatives or as specifically directed in writing by Employer)
any information or knowledge concerning the business of Employer or any of
its subsidiaries which is not generally available to the public other than
through the activities of Executive. Executive further agrees that upon
termination of Executive's employment for any reason, Executive shall
promptly surrender to Employer all documents, brochures, writings,
illustrations, price lists, marketing plans, budgets and any other such
materials (regardless of form or character) that Executive received from or
developed on behalf of Employer in connection with Executive's employment
prior to or during the Term. Executive acknowledges that all such materials
shall remain at all times during and after the expiration or termination of
the Term for any reason 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.
9.2 Injunctive Relief. Executive acknowledges that: Executive's breach
of Section 9.1 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 9 have been specifically negotiated and carefully written to
prevent such irreparable harm and damage. Accordingly, if Executive
breaches Section 9.1, Employer shall be entitled to injunctive relief
enforcing Section 9.1 to the extent reasonably necessary to protect
Employer's legitimate interests, without posting bond or other security.
10. Non-Interference and Non-Competition; Injunctive Relief.
10.1 Non-Interference. During the Term and for a period of two (2)
years immediately thereafter (the "Restrictive Period"), Executive shall
not, directly or indirectly, take any action (or permit any action to be
taken by an entity with which Executive is associated in a management role)
which has the effect of interfering with Employer's relationship
(contractual or otherwise) with any employee of Employer or any of its
subsidiaries, affiliates or related entities. Without limiting the
generality of the foregoing, during the Restrictive Period, Executive shall
refrain from, either directly or indirectly, soliciting, inducing,
recruiting or encouraging any of Employer's employees to leave their
employment with Employer or any of Employer's subsidiaries either for
Executive's benefit or on behalf of or for the benefit of any other person
or entity.
10.2 Exclusive Employment and Non-Competition. Executive acknowledges
the special and unique nature of Executive's employment with Employer as a
member of Employer's senior management team, and understands that, as a
result of Executive's employment with Employer prior to and during the
Term, Executive has gained and will continue to gain knowledge of and have
access to highly sensitive and valuable information regarding the
operations of Employer and its subsidiaries and affiliated entities,
including but not limited to the proprietary and other confidential
information described more fully in Section 9.1. Accordingly, Executive
acknowledges Employer's special interest in preventing the disclosure of
such information through the engagement of Executive's services by any of
Employer's competitors following the expiration or early termination of the
Term for any reason. Therefore, Executive agrees that, during the Term and
for a period of twelve (12) months immediately following the expiration or
early termination of the Term for any reason, Executive shall not, without
the prior written approval of Employer, engage directly or indirectly in
services for, or become employed by, serve as an agent or consultant to, or
become an officer, director, partner, principal or shareholder of, any
corporation, partnership or other entity which is engaged in the magazine
publishing business in any city in which Employer operates or has an
interest in any magazine. So long as Executive does not engage in any other
activity prohibited by the immediately preceding sentence, Executive's
ownership of less than five percent (5%) of the issued and outstanding
stock of any corporation whose stock is traded on an established securities
market shall not constitute competition with Employer for the purpose of
this Section 10.2.
10.3 Injunctive Relief. Executive acknowledges and agrees that the
provisions of this Section 10 have been specifically negotiated and
carefully worded in recognition of the opportunities which shall be
afforded to Executive by Employer by virtue of Executive's continued
association with Employer and the influence that Executive has and will
continue to have over Employer's employees, customers and vendors.
Executive further acknowledges that: Executive's breach of Section 10.1 or
10.2 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 10
have been specifically negotiated and carefully written to prevent such
irreparable injury and damage. Accordingly, if Executive breaches Section
10.1 or 10.2, Employer shall be entitled to injunctive relief enforcing
Section 10.1 or 10.2 to the extent reasonably necessary to protect
Employer's legitimate interests, without posting bond or other security. If
Executive violates Section 10.1 or 10.2 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 non-interference and/or non-competition set forth herein.
Accordingly, the obligations set forth in Section 10.1 and 10.2 shall be
deemed to 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
obligations by Executive.
10.4 Construction. Despite the express agreement herein between
Employer and Executive, in the event that any of the provisions set forth
in this Section 10 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 10 shall be interpreted to extend only to
the maximum extent as to which it may be enforceable, and that this Section
10 shall be severable into its component parts, all as determined by such
court or tribunal.
11. Termination of Agreement.
11.1 Termination of Agreement by Employer for Cause. Employer may
terminate this Agreement and Executive's employment hereunder for Cause (as
defined in Section 11.3 below) in accordance with the terms and conditions
of this Section 11. Following a determination by Employer that Executive
should be terminated for Cause, Employer shall give written notice to
Executive specifying the grounds for such termination (the "Preliminary
Notice"), and Executive shall have five (5) days after receipt of the
Preliminary Notice to respond in writing. If following the expiration of
such five (5) 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").
11.2 Effect of Termination by Employer for Cause. In the event of
termination for Cause as provided in Section 11.1 above:
(i) Executive shall have no further obligations or liabilities
hereunder, except Executive's obligations under Section 9 and 10,
which shall survive the termination of this Agreement.
(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 unpaid Base Salary with respect to
any applicable pay period ending on or before the termination
date; and
(b) Pay to Executive any Contract Year Bonus, if any, which
Executive earned for a Contract Year ending on or prior to the
termination date pursuant to Section 6.2 but which is unpaid as
of the termination date.
11.3 Definition of Cause. For purposes of this Agreement, "Cause"
shall be defined to mean any of the following: (i) any action or omission
by Executive involving willful or repeated failure, neglect or refusal to
perform any of Executive's duties or obligations under this Agreement (or
any duties assigned to Executive consistent with the terms of this
Agreement) or abide by any applicable policy of Employer, and continuation
of such breach after written notice and the expiration of a ten (10) day
cure period; provided, however, that it is not the parties' intention that
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 11.3, 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 or an opportunity to
cure; (ii) Executive's commission of any felony or any other crime
involving an act of moral turpitude; (iii) Executive's action or omission,
or knowing allowance of actions or omissions, which are in violation of any
law or the rules and regulations of the Federal Communications Commission
(the "FCC"), or which otherwise jeopardize the licenses granted to Employer
or any of Employer's subsidiaries or affiliates 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;
(vi) sexual or other prohibited harassment of others; (vii) unauthorized
disclosure or use of proprietary or confidential information, as described
more fully in Section 9.1; (viii) any action which brings Employer or any
of Employer's subsidiaries or affiliates into public disrepute, contempt,
scandal or ridicule; and (ix) any matter constituting cause or gross
misconduct under applicable laws.
11.4 Change in Control. In the event of a "Change in Control", the
rights and obligations of Executive and Employer shall be set forth in a
separate Change of Control Agreement to be executed by the parties in a
form acceptable to Employer and thereafter attached to this Agreement as
Exhibit A. "Change in Control" shall have the meaning ascribed to it in
Exhibit A. Notwithstanding anything to the contrary contained herein or in
Exhibit A, a Change in Control shall be deemed not to have occurred if,
immediately following a Separation Event or the transaction or transactions
described in the definition of Change of Control in Exhibit A: (i) Xxxxxxx
X. Xxxxxxx ("Xxxxxxx") is Chairman or Chief Executive Officer of Employer
or any successor thereto, including without limitation, the Publishing
Division or any entity established as a result of a Separation Event
(collectively, "Successor"); or (ii) Smulyan retains the ability to vote at
least fifty percent (50%) of all classes of stock of the Employer or any
Successor; or (iii) Smulyan retains the ability to elect a majority of the
Board of Directors of Employer or any Successor. For purposes of this
Section 11.4, "Separation Event" shall be defined to mean any endeavor by
Employer to separate or bifurcate its radio, television and publishing
divisions by means of merger, corporate reorganization, sale or disposition
of assets, spin off, tax-free reorganization, or otherwise
12. Disability.
12.1 Termination of Employment. If Executive shall become Disabled (as
defined in Section 12.2), Employer shall continue to compensate Executive
under the terms of this Agreement without diminution and otherwise without
regard to such disability or nonperformance of duties until Executive has
been disabled for a cumulative period of six (6) months, at which time
Employer may, in its sole discretion, elect to terminate Executive's
employment. If Employer elects to terminate Executive's employment pursuant
to this Section 12.1, the date that Executive's employment terminates shall
be referred to herein as the "Disability Termination Date."
12.2 Definition of Disability. Executive shall be deemed to have
become "Disabled" for purposes of this Agreement if, during the Term,
because of ill health, physical or mental disability, or for other causes
beyond Executive's reasonable control, Executive shall have been unable to
perform Executive's duties hereunder as reasonably determined by a
reputable physician selected by Employer.
12.3 Obligations after Termination. Unless Employer exercises its
option under Section 12.5 below to reinstate Executive to Executive's full
compensation, duties, functions, responsibilities and authority hereunder
for the balance of the original Term, Executive shall have no further
obligations or liabilities hereunder after a Disability Termination Date
except Executive's obligations under Sections 9 and 10 which shall survive
the termination of the Term. After a Disability Termination Date, Employer
shall have no further obligations or liabilities hereunder except its
obligations under Section 12.4 which shall also survive the termination of
the Term.
12.4 Payment of Unpaid Amounts after Termination. Employer shall, not
later than two (2) weeks after a Disability Termination Date, pay to
Executive: (i) all unpaid Base Salary with respect to any pay period ending
on or before the Disability Termination Date; plus (ii) any Contract Year
Bonus, if any, earned by Executive for a Contract Year ending on or prior
to the Disability Termination Date pursuant to Section 6.2 but which is
unpaid as of the Disability Termination Date; provided, however, in the
event a Disability 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 Contract Year Bonus for the Contract
Year during which the Disability Termination Date occurs, such amount to be
determined in the sole discretion of Employer, so long as Executive is not
reinstated during such Contract Year pursuant to Section 12.5.
12.5 Reinstatement. If during the original Term and subsequent to a
Disability Termination Date, Executive shall fully recover from a
disability, Employer shall have the right (exercisable within sixty (60)
days after written notice from Executive of such recovery), but not the
obligation, to reinstate Executive to employment hereunder for the balance
of the original Term. In the event of such reinstatement, Employer shall
pay Executive at Executive's full level of compensation hereunder and
otherwise employ Executive in accordance with the terms and provisions of
this Agreement.
12.6 No Reduction. Amounts payable pursuant to this Section 12 shall
not be reduced by the value of any benefits payable to Executive under any
disability insurance plan or policy.
13. Death of Executive.
13.1 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 13.2 below which shall survive such
termination.
13.2 Compensation. Employer shall, not later than two (2) weeks after
Executive's date of death, pay to Executive's estate or designated
beneficiary: (i) all unpaid Base Salary with respect to any pay period
ending on or before Executive's date of death; plus (ii) any Contract Year
Bonus, if any, earned by Executive for a Contract Year ending on or prior
to Executive's date of death pursuant to Section 6.2 but which is unpaid as
of Executive's date of death; provided, however, 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 Contract Year Bonus for
the Contract Year during which Executive's death occurs, such amount to be
determined in the sole discretion of Employer.
13.3 No Reduction. Amounts payable pursuant to this Section 13 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.
13.4 Death after Termination. In the event that Executive dies after
termination of this Agreement pursuant to Section 11, 12 or 13, 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.
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 duly given if delivered personally or sent by prepaid
telegram, or mailed first-class, postage prepaid, by registered or certified
mail, 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
00 Xxxxxxxx Xxxxxx
Xxxxx 000
Xxxxxxxxxxxx, Xxxxxxx 00000
Attn.: Xxxxx X. Xxxxxxx, Esq.
With a copy to:
Xxxx X. Xxxxxx, Esq.
00000 Xxxxxxx Xxxx.
Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000
(ii) If to Executive, to Executive's address on the personnel records
of Employer.
15. Miscellaneous.
15.1 Governing Law. This Agreement shall be deemed to have been
entered into in the State of Indiana and shall be governed by, and
construed and enforced in accordance with, the laws of the State of Indiana
without regard to its choice of law provisions.
15.2 Arbitration. The parties agree that any controversy or claim of
either party hereto arising out of or in any way relating to this
Agreement, or breach thereof, shall be settled by final and binding
arbitration in Indianapolis, Indiana in accordance with the applicable
rules of the American Arbitration Association (AAA), and that judgment upon
any award rendered may be entered by the prevailing party in any court
having jurisdiction thereof. The parties agree to share equally all costs
associated with the arbitration; provided, however, that each party shall
be solely responsible for its own attorneys' fees and expenses in
connection with any such arbitration.
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 or conditions of this Agreement.
15.4 Entire Agreement; Merger. This Agreement (including all exhibits
referenced in this Agreement) sets forth the entire agreement and
understanding of the parties relating to the subject matter herein, and
supersedes all prior agreements, arrangements and understandings, written
or oral, between the parties, which are merged herein.
15.5 Successors and Assigns. This Agreement, and Executive's rights
and obligations hereunder, may not be assigned by Executive without the
prior written consent of Employer, which consent may be granted or withheld
in Employer's sole and absolute discretion; provided, however, that
Executive may designate pursuant to Section 15.7 one 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 subsidiary, affiliate or related entity,
or any third party by way of merger, corporate reorganization (including
without limitation a Separation Event), acquisition of substantially all of
the assets or stock of Employer, or otherwise.
15.6 Amendments; Waivers. 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. The failure of either party
at any time or times 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.
15.7 Beneficiaries. Whenever this Agreement provides for any payment
to Executive's estate, such payment may be made instead to such beneficiary
or beneficiaries 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 or beneficiaries by written notice to
Employer (and to any applicable insurance company).
15.8 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; and (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.
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,
insurers and representatives (the "Emmis Group") from and against any and
all losses, costs, damages, expenses (including attorneys' fees and
expenses), liabilities and claims, arising out of, in connection with, or
in any way related to Executive's breach of any of the representations or
warranties contained in this Section 15.8 or Executive's breach of any of
the material terms or conditions contained in this Agreement.
15.9 No Obligation to Utilize Services. Employer shall not be
obligated to utilize Executive's services nor use the results or products
of such services even if Executive is not in default hereunder. Employer
may at any time during the Term, for any reason, elect not to use
Executive's services or have any further obligations to Executive under
this Agreement except as provided in the next sentence. If Employer elects
not to use Executive's services as permitted herein, Executive shall be
paid Executive's full compensation as described more fully in Section 6 at
the times and in the installments as provided herein as if Executive had
fulfilled Executive's obligations hereunder through the Term.
15.10 Change in Fiscal Year. If Employer changes its fiscal year,
Employer shall make such adjustments to the various dates and amounts
included herein or in any plan or program referenced herein as are
necessary or appropriate; provided, however, that the end of the Term shall
in no event be extended beyond the expiration of the Term without the
written consent of the parties.
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.
IN WITNESS WHEREOF, the parties, intending to be legally bound, have duly
executed this Agreement as of the date first written above.
EMMIS OPERATING COMPANY
("Employer")
By: /s/ Xxxxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxxxx
Chairman of the Board and Chief Executive Officer
XXXX X. XXXX
("Executive")
/s/ Xxxx X. Xxxx
Xxxx X. Xxxx
EXHIBIT A
[TO BE PROVIDED]
