EMMIS COMMUNICATIONS CORP
EMPLOYMENT AGREEMENT FOR GARY L. KASEFF
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<TYPE>EX-10.3
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<FILENAME>c24617exv10w3.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT FOR GARY L. KASEFF
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 10.3</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EMPLOYMENT AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This EMPLOYMENT AGREEMENT (&#147;Agreement&#148;) is effective as of March&nbsp;1, 2008, by and between <B>EMMIS
OPERATING COMPANY</B>, an Indiana company (&#147;Employer&#148;), and <B>GARY L. KASEFF</B>, a California resident
(&#147;Executive&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>RECITALS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Employer and its affiliates are engaged in the ownership and operation of certain
radio and television stations, magazines, and related operations (together, the &#147;Emmis Group&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Employer desires to employ Executive and Executive desires to be so employed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Employment Status and Duties</U>. Upon the terms and subject to the conditions set
forth in this Agreement, Employer hereby employs Executive, and Executive hereby accepts exclusive
employment with Employer. During the Term (as defined herein), Executive shall serve as Executive
Vice President and General Counsel, reporting directly to Jeffrey H. Smulyan. Executive shall have
such duties, functions, authority and responsibilities as are commensurate with such position.
Executive&#146;s services hereunder shall be performed on an exclusive, full-time basis in a
professional, diligent and competent manner to the best of Executive&#146;s abilities. Executive shall
not undertake any outside employment or business activities without the prior written consent of
Employer. Executive shall be permitted to serve on the board of charitable or civic organizations
so long as such services: (i)&nbsp;are approved in writing in advance by Employer; and (ii)&nbsp;do not
interfere with Executive&#146;s duties and obligations under this Agreement. It is understood and
agreed that the location for the performance of Executive&#146;s duties and services pursuant to this
Agreement shall be the offices located at 3500 W. Olive Avenue, Burbank, California, or if Employer
no longer maintains possession of those premises, then such other offices as may be designated by
Employer in Los Angeles, California. If Executive is elected as a Director of Emmis Communications
Corporation, he shall serve in such position without additional remuneration (unless Employer
elects to remunerate &#147;inside directors&#148;) but shall be entitled to the benefit of indemnification
pursuant to the terms of <U>Section&nbsp;16.11</U>. Executive shall also serve without additional
remuneration as a director and/or officer of one (1)&nbsp;or more of Employer&#146;s subsidiaries or
affiliates if appointed to such position(s) by Employer and shall also be entitled to the benefit
of indemnification pursuant to the terms of <U>Section&nbsp;16.11</U>.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Term</U>. The term of this Agreement shall be for a period of one (1)&nbsp;year commencing
on March&nbsp;1, 2008, and continuing until February&nbsp;28, 2009, unless earlier terminated or extended in
accordance with the provisions set forth in this Agreement (the &#147;Term&#148;). Unless Executive or
Employer provides the other written notice prior to December&nbsp;31 of the then-current Contract Year
(as defined below) of such party&#146;s election not to allow the Agreement to automatically renew, the
Agreement shall automatically renew for successive one year periods. Each year commencing on March
1 and ending on the last day of February during the Term shall be a &#147;Contract Year.&#148; Upon failure
of either party to make the foregoing election by December&nbsp;31, the Term of this Agreement shall be
deemed renewed for the Contract Year commencing the following March 1 and, as used throughout this
Agreement, &#147;Term&#148; shall include such additional Contract Year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Base Salary; Auto Allowance</U>. Upon the terms and subject to the conditions set
forth in this Agreement, Employer shall pay or cause to be paid to Executive an annualized base
salary (the &#147;Base Salary&#148;), payable pursuant to Employer&#146;s customary payroll practices and subject
to applicable taxes and withholdings as required by law, for each Contract Year, as set forth
below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Contract Year commencing March&nbsp;1, 2008: $450,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Each additional Contract Year: Executive&#146;s Base Salary for the previous Contract Year, plus
an amount that is equal to the greater of: (a)&nbsp;three percent (3%) of the Executive&#146;s Base
Salary for the previous Contract Year; (b)&nbsp;the percentage increase in the Revised Consumer
Price Index for All Urban Consumers&#151;U.S. Cities Average, all items (base 1982/84 = 100) as
published by the Bureau of Labor Statistics, U.S. Department of Labor (the &#147;CPI&#148;) which
shall be determined by comparing the CPI for October in the calendar year prior to the year
in which the Base Salary is to be adjusted to the calendar year preceding the
latter-described year; or (c)&nbsp;the percentage increase in the Executive&#146;s Base Salary as
specified in writing by the Compensation Committee of the Board of Directors of Emmis
Communications Corporation (the &#147;Compensation Committee&#148;). For example and by way of
illustration of subsection (b)&nbsp;above, in regard to the adjustment to be made for the
Contract Year commencing March&nbsp;1, 2009, the parties would calculate the percentage increase
in the CPI from October of 2007 to October&nbsp;2008. In the event the CPI shall be
discontinued, changed, or otherwise becomes unavailable, the parties will convert to the
then-published index of the Bureau of Labor Statistics so as to continue to calculate
adjustments on the same basis as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set forth herein, Employer shall have no obligation to pay Executive the
Base Salary for any periods during which Executive fails or refuses to render services pursuant to
this Agreement or for any period following the expiration or termination of this Agreement. In
addition, it is understood and agreed that Employer may, at its sole election, pay up to ten
percent (10%) of Executive&#146;s Base Salary in Shares (as defined below in <U>Section&nbsp;4.3</U>);
provided that: (i)&nbsp;Executive is able to sell those Shares
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">on substantially the same terms and
conditions applicable to Employer&#146;s stock compensation plan in effect through 2005; and (ii)&nbsp;the
percentage of Executive&#146;s Base Salary payable in Shares shall be consistent with, and the exact
number of Shares to be awarded to Executive shall be determined in the same manner as that utilized
for other senior management level employees.&nbsp; &nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the Term, Executive shall receive a monthly auto allowance in the amount of One
Thousand Dollars ($1,000) (subject to withholding and applicable taxes as required by law)
consistent with Employer&#146;s policy or practices regarding such allowances, as such policy or
practices may be amended from time to time during the Term in Employer&#146;s sole and absolute
discretion; <U>provided</U>, <U>however</U>, that in no event shall the auto allowance amount
paid to Executive pursuant to this provision be reduced (the &#147;Auto Allowance&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Incentive Compensation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U>Bonus Amounts</U>. Upon the terms and subject to the conditions set forth in
this <U>Section&nbsp;4</U>, each Contract Year Executive shall be eligible to receive one (1)
performance bonus in a target amount equivalent to Fifty-Six and 22/100&nbsp;percent (56.22%) of
Executive&#146;s Base Salary, and the exact amount of such performance bonus, if any, shall be
determined on the basis of Executive&#146;s attainment of certain performance and financial
goals to be determined by Employer, from time to time, in its sole and absolute discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Payment of Bonus Amounts</U>. Employer shall pay or cause to be paid to
Executive the foregoing bonus amounts if earned according to the terms and conditions set
forth in <U>Section&nbsp;4.1</U>; <U>provided</U>, <U>that</U>, at the end of each applicable
Contract Year: (i)&nbsp;this Agreement is in full force and effect and has not been terminated
for any reason (other than due to a material breach of this Agreement by Employer); and
(ii)&nbsp;Executive is fully performing all of Executive&#146;s duties and obligations pursuant to
this Agreement and is not in breach of any of the material terms and conditions of this
Agreement. In addition, it is understood and agreed that Employer may, at its sole
election, pay any bonus amounts earned by Executive pursuant to this <U>Section&nbsp;4</U> in
cash or Shares; provided that the Shares evidencing any portion thereof shall be freely
transferable when delivered to Executive, subject to Employer&#146;s securities trading policy
and applicable federal and state law. In the event that Employer elects pursuant to this
<U>Section&nbsp;4.2</U> to pay any bonus amounts in Shares, the percentage of bonus amounts
payable in Shares shall be consistent with, and the exact number of Shares to be awarded to
Executive shall be determined in the same manner as that utilized for senior management
level employees. Any bonus amounts earned by Executive pursuant to the terms and conditions
of this <U>Section&nbsp;4</U> shall be paid after the end of the Contract Year for which the
bonus is paid (but in no event later than ninety&nbsp;(90) days after the end of such Contract
Year). Any and all bonus amounts payable by Employer to Executive pursuant to this
<U>Section&nbsp;4</U> shall be subject to applicable taxes and withholdings as required by law.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>Equity Incentive Compensation</U>. At such time or times each Contract Year
when Employer grants equity incentive compensation to its senior management level employees
(but in no event later than ninety (90)&nbsp;days after February&nbsp;29, 2008 or, if this Agreement
is renewed, in no event later than ninety (90)&nbsp;days after the expiration of the previous
Contract Year), Executive shall be granted options and restricted shares as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;an option (&#147;Option&#148;) to acquire Thirty-Six Thousand Five Hundred Eighty-Seven
(36,587) shares of Class&nbsp;A Common Stock of Emmis Communications Corporation (the
&#147;Shares&#148;); and (ii)&nbsp;Ten Thousand Nine Hundred Seventy-Six (10,976) restricted
Shares (the &#147;Restricted Shares&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Option granted pursuant to this <U>Section&nbsp;4.3</U> shall: (i)&nbsp;have an exercise
price per share equal to its Fair Market Value (as defined in the applicable Equity
Compensation Plan, or any subsequent equity compensation or similar plan adopted by Emmis
Communications Corporation and generally used to make equity-based awards to
management-level employees of the Emmis Group (the &#147;Plan&#148;)); (ii)&nbsp;notwithstanding any other
provisions in this Agreement, be granted according to the terms and subject to the
conditions of the Plan; (iii)&nbsp;be evidenced by a written grant agreement containing such
terms and conditions as are generally provided for other management-level employees of the
Emmis Group (including vesting requirements); and (iv)&nbsp;be exercisable for Shares with such
restrictive legends on the certificates in accordance with the Plan and applicable
securities laws. Options granted pursuant to this <U>Section&nbsp;4.3</U> are intended to
satisfy the regulatory exemption from the application of Code Section&nbsp;409A for certain
options for service recipient shares, and they shall be administered accordingly. Any
Restricted Shares granted pursuant to this <U>Section&nbsp;4.3</U> shall be granted according
to the terms and subject to the conditions of the Plan and shall include a restrictive
legend as provided for by the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>Completion Bonus</U>. On the condition that Executive remains employed by
Employer, on a full-time, continuous basis, through February&nbsp;28, 2011, Employer shall make
a cash payment to Executive in an amount equal to the average annual Base Salary paid to
Executive during the Term (&#147;Completion Bonus&#148;), subject to applicable taxes and
withholdings as required by law. The Completion Bonus shall be paid to Executive within
ten (10)&nbsp;days after February&nbsp;28, 2011 (&#147;Completion Bonus Payment Date&#148;). Notwithstanding
the foregoing, Employer shall pay a pro-rated portion of the Completion Bonus to Executive
within two (2)&nbsp;weeks after termination of Executive&#146;s employment if the effective date of
such termination is prior to March&nbsp;1, 2011 and such termination is: (i)&nbsp;due to Executive&#146;s
death, or (ii)&nbsp;on account of Executive&#146;s incapacity pursuant to <U>Section&nbsp;11</U>, or
(iii)&nbsp;by Employer other than for Cause (as defined below), or (iv)&nbsp;due to Employer&#146;s
election not to renew this Agreement according to its terms for any Contract Year after
February&nbsp;28, 2009. Such pro-rated portion shall be based upon the number of calendar days
elapsed between March&nbsp;1, 2008 and the date of termination divided by the total number of
calendar days between March&nbsp;1, 2008 and February&nbsp;28, 2011.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Expenses; Travel</U>. Employer shall pay or reimburse Executive for all reasonable
expenses actually incurred or paid by Executive during the Term in connection with the performance
of Executive&#146;s services hereunder upon presentation of expense statements, vouchers or other
supporting documentation as Employer may require of Executive; provided such expenses are otherwise
in accordance with Employer&#146;s policies. Executive shall undertake such travel as may be required
in the performance of Executive&#146;s duties pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Fringe Benefits</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <U>Vacation and Other Benefits</U>. Each Contract Year, Executive shall be
entitled to four (4)&nbsp;weeks of paid vacation in accordance with Employer&#146;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 and to the extent that Executive
is eligible under, the general provisions of Employer&#146;s fringe benefit plans or programs;
provided, however, Executive understands that these benefits may be increased, changed,
eliminated or added from time to time during the Term as determined in Employer&#146;s sole and
absolute discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Life and Disability Insurance</U>. Each Contract Year, Employer agrees to
reimburse Executive in an amount not to exceed Five Thousand Dollars ($5,000) for the
annual premium associated with Executive&#146;s purchase or maintenance of a life or disability
insurance policy or other insurance policies on the life, or related to the care, of
Executive (the &#147;Life and Disability Insurance Premium&#148;). Executive shall be entitled to
freely select and change the beneficiary or beneficiaries under such policy or policies.
Notwithstanding anything to the contrary contained in this Agreement, Employer&#146;s
obligations under this <U>Section&nbsp;6.2</U> are expressly contingent upon Executive
providing required information and taking all necessary actions required of Executive in
order to obtain and maintain the subject policy or policies, including without limitation,
passing any required physical examinations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Confidential Information</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Non-Disclosure</U>. Executive acknowledges that certain information
concerning the business of the Emmis Group and its members (including but not limited to
trade secrets and other proprietary information) is of a highly confidential nature, and
that, as a result of Executive&#146;s employment with Employer prior to and during the Term,
Executive shall receive and develop, proprietary and confidential information concerning
the business of Employer and/or other members of the Emmis Group which, if known to
Employer&#146;s competitors, would damage Employer, other members of the Emmis Group and their
respective businesses. Accordingly, Executive hereby agrees that during the Term and
thereafter, Executive shall not divulge or appropriate for Executive&#146;s own use, or for the
use or benefit of any third party (other than Employer and its representatives, or as
directed in writing by Employer), any information or
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">knowledge concerning the business of
Employer or any other member of the Emmis Group which is not generally available to the
public other than through the activities of Executive. Executive further agrees that,
immediately upon termination of Executive&#146;s employment for any reason, Executive shall
promptly surrender to Employer all documents, brochures, plans, strategies, writings,
illustrations, client lists, price lists, sales, financial or marketing plans, budgets and
any and all other materials (regardless of form or character) which Executive received from
or developed on behalf of Employer or any member of the Emmis Group in connection with
Executive&#146;s employment prior to or during the Term. Executive acknowledges that all such
materials shall remain at all times during the Term and thereafter the sole and exclusive
property of Employer and that nothing in this Agreement shall be deemed to grant Executive
any right, title or interest in such material.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>Ownership of Materials</U>. Employer shall solely and exclusively own all
rights of every kind and nature in perpetuity and throughout the universe in: (i)&nbsp;the
programs and broadcasts on which Executive appears or for which Executive renders services
to Employer in any capacity; (ii)&nbsp;the results and proceeds of Executive&#146;s services pursuant
to this Agreement including, without limitation, those results and proceeds provided in
connection with the creation, development, preparation, writing, editing or production by
Executive or any employee of any member of the Emmis Group of any and all materials,
properties or elements of any and all kinds for the programs on which Executive appears or
for which Executive renders services (whether directly or indirectly); and (iii)&nbsp;any
business, financial, sales or marketing plans and strategies, documents, presentations, or
other similar materials, regardless of kind or character, each of which Executive
acknowledges is a work specially ordered by Employer which shall be considered to be a
&#147;work made for hire&#148; for Employer. Therefore, Employer shall be the author and copyright
owner of the programs on which Executive appears or for which Executive renders services
pursuant to this Agreement, the broadcasts and tapes or recordings thereof for all purposes
without limitation of any kind, and all materials described in the immediately preceding
sentence. All characters developed for the programs and broadcasts during the Term shall
be solely and exclusively owned by Employer, including all right, title and interest
thereto. The exclusive legal title to all of the aforesaid works and matters, programs,
broadcasts, and materials and all secondary and derivative rights therein, shall belong, at
all times, to Employer which shall have the right to copyright the same and apply for
copyright registrations and copyright renewal registrations and to make whatever use
thereof that Employer, in its sole and absolute discretion, deems advisable, including but
not limited to rebroadcasts of programs or use of any portions of any program in the
production or broadcast of other programs at any time, notwithstanding expiration of the
Term or termination of this Agreement for any reason.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Injunctive Relief</U>. Executive acknowledges that Executive&#146;s breach of this
<U>Section&nbsp;7</U> 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
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such breach would be
inadequate; and that the provisions of this <U>Section&nbsp;7</U> have been specifically
negotiated and carefully written to prevent such irreparable harm and damage. Accordingly,
if Executive breaches this <U>Section&nbsp;7</U>, Employer shall be entitled to injunctive
relief (including attorneys&#146; fees and costs) enforcing this <U>Section&nbsp;7</U> to the extent
reasonably necessary to protect Employer&#146;s legitimate interests, without posting bond or
other security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Non-Interference; Injunctive Relief</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <U>Non-Interference</U>. During the Term, and for a period of two&nbsp;(2) years
immediately following the expiration or early termination of the Term for any reason,
Executive shall not, directly or indirectly, take any action (or permit any action to be
taken by an entity with which Executive is associated) which has the effect of interfering
with Employer&#146;s relationship (contractual or otherwise) with: (i)&nbsp;on-air talent of any
member of the Emmis Group; or (ii)&nbsp;any other employee of any member of the Emmis Group.
Without limiting the generality of the foregoing, Executive specifically agrees that during
such time period, neither Executive nor any entity with which Executive is associated shall
solicit, hire or engage any on-air talent or other employee of any member of the Emmis
Group or any other employee of any member of the Emmis Group to provide services for
Executive&#146;s benefit or for the benefit of any other business or entity, or solicit or
encourage them to cease their employment with any member of the Emmis Group for any reason.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U>Injunctive Relief</U>. Executive acknowledges and agrees that the provisions
of this <U>Section&nbsp;8</U> have been specifically negotiated and carefully worded in
recognition of the opportunities which will be afforded to Executive by Employer by virtue
of Executive&#146;s continued association with Employer during the Term, and the influence that
Executive has and will continue to have over Employer&#146;s employees, customers and suppliers.
Executive further acknowledges that Executive&#146;s breach of <U>Section&nbsp;8.1</U> herein will
cause irreparable harm and damage to Employer, the exact amount of which will be difficult
to ascertain; that the remedies at law for any such breach would be inadequate; and that
the provisions of this <U>Section&nbsp;8</U> have been specifically negotiated and carefully
written to prevent such irreparable harm and damage. Accordingly, if Executive breaches
<U>Section&nbsp;8.1</U>, Employer shall be entitled to injunctive relief (including attorneys&#146;
fees and costs) enforcing <U>Section&nbsp;8.1</U>, to the extent reasonably necessary to
protect Employer&#146;s legitimate interests, without posting bond or other security.
Notwithstanding anything to the contrary contained in this Agreement, if Executive violates
<U>Section&nbsp;8.1</U>, and Employer brings legal action for injunctive or other relief,
Employer shall not, as a result of the time involved in obtaining such relief, be deprived
of the benefit of the full period of noninterference set forth therein. Accordingly, the
obligations set forth in <U>Section&nbsp;8.1</U> shall have the duration set forth therein,
computed from the date such relief is granted but reduced by the time expired between the
date the restrictive period began to run and the date of the first violation of the
obligation(s) by Executive.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U>Construction</U>. Despite the express agreement herein between the parties,
in the event that any provisions set forth in this <U>Section&nbsp;8</U> shall be determined by
any court or other tribunal of competent jurisdiction to be unenforceable for any reason
whatsoever, the parties agree that this <U>Section&nbsp;8 </U>shall be interpreted to extend
only to the maximum extent as to which it may be enforceable, and that this <U>Section
8</U> shall be severable into its component parts, all as determined by such court or
tribunal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Termination of Agreement by Employer for Cause</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <U>Termination</U>. Employer may terminate this Agreement and Executive&#146;s
employment hereunder for Cause (as defined in <U>Section&nbsp;9.3</U> below) in accordance with
the terms and conditions of this <U>Section&nbsp;9</U>. Following a determination by Employer
that Executive should be terminated for Cause, Employer shall give written notice (the
&#147;Preliminary Notice&#148;) to Executive specifying the grounds for such termination, and
Executive shall have ten (10)&nbsp;days after receipt of the Preliminary Notice to respond to
Employer in writing. If following the expiration of such ten (10)&nbsp;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 &#147;Final Notice&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2
<U>Effect of Termination</U>. In the event of termination for Cause as provided in <U>Section&nbsp;9.1</U> above:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive shall have no further obligations or liabilities hereunder
except Executive&#146;s obligations under <U>Sections&nbsp;7</U> and <U>8</U>, which shall
survive the termination of this Agreement, and except for any obligations arising
in connection with any conduct of Executive described in <U>Section&nbsp;9.3</U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Employer shall have no further obligations or liabilities hereunder,
except that Employer shall, not later than two&nbsp;(2) weeks after the termination
date:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 7%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pay to Executive all earned but unpaid Base Salary with respect
to any applicable pay period ending on or before the termination date; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 7%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pay to Executive any bonus amounts which have been earned on or
prior to the termination date pursuant to <U>Section&nbsp;4</U>, if any, but
which remain unpaid as of the termination date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <U>Definition of Cause</U>. For purposes of this Agreement, &#147;Cause&#148; shall be
defined to mean any of the following: (i)&nbsp;Executive&#146;s failure, refusal or neglect to
perform any of Executive&#146;s material duties or obligations under this Agreement (or any
material duties assigned to Executive consistent with the terms
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">of this Agreement) or abide
by any applicable policy of Employer, or Executive&#146;s breach of any material term or
condition of this Agreement, and continuation of such failure, refusal, neglect, or breach
after written notice and the expiration of a ten (10)&nbsp;day cure period; <U>provided</U>,
<U>however</U>, that it is not the parties&#146; intention that the Employer shall be required
to provide successive such notices, and in the event Employer has provided Executive with a
notice and opportunity to cure pursuant to this <U>Section&nbsp;9.3</U>, Employer may terminate
this Agreement for a subsequent breach similar or related to the breach for which notice
was previously given or for a continuing series or pattern of breaches (whether or not
similar or related) without providing notice and an opportunity to cure; (ii)&nbsp;commission of
any felony or any other crime involving an act of moral turpitude which is harmful to
Employer&#146;s business or reputation; (iii)&nbsp;Executive&#146;s action or omission, or knowing
allowance of actions or omissions, which are in violation of any law or any of the rules or
regulations of the Federal Communications Commission (the &#147;FCC&#148;), or which otherwise
jeopardize any of the licenses granted to Employer or any member of the Emmis Group in
connection with the ownership or operation of any radio or television station; (iv)&nbsp;theft
in any amount; (v)&nbsp;actual or threatened violence against another employee or individual;
(vi)&nbsp;sexual or other prohibited harassment of others; (vii)&nbsp;unauthorized disclosure or use
of trade secrets or proprietary or confidential information, as described more fully in
<U>Section&nbsp;7.1</U>; (viii)&nbsp;any action which brings Employer or member of the Emmis Group
into public disrepute, contempt, scandal or ridicule, and which is harmful to Employer&#146;s
business or reputation; and (ix)&nbsp;any matter constituting cause or misconduct under
applicable laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <U>Termination Without Cause</U>. In the event that prior to the Post Term
Period (as defined below), Employer terminates Executive&#146;s employment hereunder prior to
the expiration of the Term (other than for Cause, on account of Executive&#146;s incapacity
pursuant to <U>Section&nbsp;11</U>, or on account of Executive&#146;s death), Employer shall pay to
Executive not later than two (2)&nbsp;weeks following such termination (in addition to any
amounts payable pursuant to <U>Section&nbsp;10</U>, the pro-rated Completion Bonus payable
pursuant to <U>Section&nbsp;4.4</U> and any other amounts earned by Executive, but unpaid as of
the termination date, including any amounts set aside pursuant to the Plan), a one-time,
lump sum cash payment equal to the present cash value of all unpaid compensation and Shares
payable or owing to Executive for the remainder of the Term pursuant to <U>Sections&nbsp;3</U>,
<U>4</U> and <U>6.2</U> (except the Options described in <U>Section&nbsp;4.3</U>, which
compensation shall not be included in the calculation of the lump sum payment). For
purposes of calculating the lump sum payment described in the immediately preceding
sentence, the annual incentive compensation payable pursuant to <U>Section&nbsp;4.1</U> shall
be determined to be Two Hundred Fifty-Three Thousand Dollars ($253,000) for each applicable
Contract Year or portion thereof remaining in the Term. In addition, Executive shall also
be granted with respect to each Contract Year remaining in the Term, at the time and in the
manner specified in <U>Section&nbsp;4.3</U>, any Option to which he would be entitled pursuant
to <U>Section&nbsp;4.3</U> during the Term (absent termination of his employment pursuant to
this <U>Section&nbsp;9.4</U>) which Option shall be subject to the terms and conditions
provided in <U>Section&nbsp;4.3</U>. In addition,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">subject to the terms and conditions of
<U>Section&nbsp;10</U>, upon Executive&#146;s termination of employment pursuant to this <U>Section
9.4</U>, Executive shall be entitled upon written notice to Employer to elect to continue
his employment with Employer as a part-time employee during the Post Term Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Part-Time Employment</U>. Notwithstanding <U>Section&nbsp;1</U> above, Executive shall
have the right to elect prior to the expiration of the Term and no later than the fifth day
following his termination of employment pursuant to <U>Section&nbsp;9.4</U> to provide Employer with
written notice of his election to continue his employment with Employer as a part-time employee,
pursuant to the terms and conditions set forth in this <U>Section&nbsp;10</U>. Such part-time
employment shall commence upon (a)&nbsp;the last day of the Term or (b)&nbsp;the last day of Executive&#146;s
employment upon termination pursuant to <U>Section&nbsp;9.4</U> (provided that such part-time
employment shall be deemed to have commenced on such day even if the election is received
thereafter but still within the time limit described above), and shall end on the earliest of: (i)
the fifth (5th) anniversary of its commencement, (ii)&nbsp;the date Executive secures full-time
employment other than with Employer or any of its &#147;Affiliates&#148; (as defined in <U>Exhibit&nbsp;A</U>),
(iii)&nbsp;Executive&#146;s death, (iv)&nbsp;the date Executive becomes unable to perform the services required by
<U>Section&nbsp;10.3</U> because of ill health or physical or mental disability as reasonably
determined by a physician selected by Employer or (v)&nbsp;the date Executive ceases to comply with the
provisions of <U>Section&nbsp;10.3</U>, as reasonably determined by the Board of Directors of Employer
(the &#147;Post Term Period&#148;). In the event Executive makes the election to continue his employment as
a part-time employee pursuant to this <U>Section&nbsp;10</U>, the Change in Control Agreement
(<U>Exhibit&nbsp;A</U> hereto) shall become null, void and of no further force and effect as of the
date Executive commences such part-time employment.<U> </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 During the Post Term Period, Employer shall pay to Executive annual compensation
equal to twenty percent (20%) of the sum of Executive&#146;s (a)&nbsp;Base Salary, at the rate in
effect immediately prior to the first day of the Post Term Period, (b)&nbsp;the Auto Allowance
and (c)&nbsp;the Life and Disability Insurance Premium (&#147;Part-Time Compensation&#148;). Part-Time
Compensation shall be paid by Employer in accordance with Employer&#146;s customary payroll
practices. In addition, during the Post Term Period, Executive and his dependents (as such
term is defined in the applicable health plan of Employer) may continue to participate in
Employer&#146;s health plan, to the extent permitted under the terms of such plan and at the
expense of Employer, except for any premium co-payment or other similar amounts for which
Executive would have otherwise been responsible pursuant to the terms of such plan. In the
event that the terms of Employer&#146;s health plan do not at any time during the Post Term
Period permit Executive and/or his dependents to continue to participate in such plan,
Employer shall reimburse Executive for the cost of securing comparable health care coverage
for Executive and his dependents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Any option granted to Executive prior to or during the Post Term Period under the
Plan (other than any plan intended to qualify under Section 423(b) of the Code and provided
that no provision hereof may supersede the terms of any plan of Employer) shall continue to
vest and become exercisable
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">during the Post Term Period to the extent not already
exercisable as of the first day of the Post Term Period in accordance with the applicable
vesting schedule of each such option, and shall remain outstanding through the earlier of:
(a)&nbsp;30&nbsp;days following the last day of the Post Term Period or (b)&nbsp;the last day of the
applicable option term provided under the applicable award agreement pursuant to which each
such option was awarded. Ownership of any Shares granted to Executive (pursuant to
<U>Section&nbsp;4.3</U> of this Agreement or otherwise) prior to or during the Post Term Period
shall continue to vest during the Post Term Period (to the extent not already fully vested
as of the first day of the Post Term Period) in accordance with the vesting schedule
applicable to each grant in the same manner as if Executive remained a full-time employee
with Employer continuously through the expiration of the Post Term Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 During the Post Term Period, Executive shall make himself available to Employer
to complete such reasonable projects and assignments as may be assigned to him by the Chief
Executive Officer of Employer and/or Emmis Communications Corporation or any successor in
interest thereto; provided; however that in no event will Executive be required to provide
more than twenty (20)&nbsp;hours of service during any calendar month pursuant to this
<U>Section&nbsp;10</U>. Employer shall reimburse Executive for all reasonable expenses
actually incurred by Executive directly related to the performance of the services
contemplated by this <U>Section&nbsp;10</U> upon presentation of expense statements, vouchers
or similar documentation, or such other supporting information as Employer may require of
Executive. In addition, no later than ten (10)&nbsp;days following the first day of the Post
Term Period, Executive shall resign as a director of Employer and each of its Affiliates,
as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Notwithstanding anything in the Agreement to the contrary, Employer and Executive
hereby agree and acknowledge that solely for purposes of <U>Sections&nbsp;7</U> and <U>8</U>
(Confidential Information; Non-Interference), the Term shall include the Post Term Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Termination of Agreement by Employer for Incapacity</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <U>Termination</U>. If Executive shall become incapacitated (as defined in the
Employer&#146;s employee handbook or, if that is not applicable, as reasonably determined by
Employer), Employer shall continue to compensate Executive under the terms of this
Agreement without diminution and otherwise without regard to such incapacity or
nonperformance of duties until Executive has been incapacitated for a cumulative period of
six (6)&nbsp;months, at which time Employer may, in its sole discretion, elect to terminate
Executive&#146;s employment. The date that Executive&#146;s employment terminates pursuant to this
section is referred to herein as the &#147;Incapacity Termination Date.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <U>Obligations after Termination</U>. Executive shall have no further
obligations or liabilities hereunder after an Incapacity Termination Date except
Executive&#146;s obligations under <U>Section&nbsp;7</U> and <U>8</U> that shall survive the
termination or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">expiration of this Agreement. After an Incapacity Termination Date,
Employer shall have no further obligations or liabilities hereunder except that Employer
shall, not later than two (2)&nbsp;weeks after an Incapacity Termination Date, pay to Executive
those amounts described in <U>Sections&nbsp;4.4</U> and <U>9.2(ii)</U>. Nothing in this
<U>Section&nbsp;11</U> or in <U>Section&nbsp;12</U> shall affect the amount of any benefits which
may be payable to Executive under any insurance plan or policy maintained by Employer or
Executive or pursuant to any Employer company practice, plan or program applicable to other
senior management level employees of the Emmis Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>Death of Executive</U>. This Agreement shall terminate immediately upon Executive&#146;s
death. In the event of such termination, Employer shall have no further obligations or liabilities
hereunder except that Employer shall, not later than two&nbsp;(2) weeks after Executive&#146;s date of death,
pay or grant to Executive&#146;s estate or designated beneficiary those amounts described in
<U>Sections&nbsp;4.4</U> and <U>9.2(ii)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Gross Up for Taxes Imposed Under Code Section&nbsp;409A</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <U>Employer&#146;s Gross-Up Obligation</U>. This Agreement is intended to comply
with Code Section&nbsp;409A, and it is intended that no amounts payable hereunder shall be
subject to tax under Section&nbsp;409A. If, however, Executive pays taxes imposed pursuant to
Code Section&nbsp;409A, Employer shall reimburse Executive to the extent provided in <U>Section
13.2</U> or <U>13.3</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <U>Reimbursement by Agreement</U>. If, before Executive&#146;s tax return due date
for the year in which an amount is paid hereunder, (i)&nbsp;Employer reasonably determines that
part or all of the amounts payable pursuant to this Agreement during the year was subject
to taxes under Code Section&nbsp;409A, or (ii)&nbsp;Executive reasonably determines that part or all
of such amounts was subject to taxes under Code Section&nbsp;409A, and Employer agrees with
Executive&#146;s determination (such agreement not to be unreasonably withheld, conditioned or
delayed), Employer shall reimburse Executive for any taxes under Code Section&nbsp;409A with
respect to such payment and any additional federal, state, or local income or employment
taxes imposed on Executive due to the foregoing reimbursement, so that the after-tax
payment to Executive is equal to the after-tax amount that Executive would have received if
Code Section&nbsp;409A had not applied. Employer shall pay the reimbursement required by the
preceding sentence only if Executive provides acceptable proof of payment within sixty (60)
days after having paid the taxes subject to reimbursement. If Executive provides
acceptable proof to Employer within such period, Employer shall pay the reimbursement
required by this <U>Section&nbsp;13.2</U> as soon as administratively feasible (and under no
circumstances more than one hundred twenty (120)&nbsp;days) after receiving such proof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <U>Reimbursement following Audit</U>. If Employer does not report any portion
of the amounts payable to Executive hereunder as subject to taxes under Code Section&nbsp;409A,
and as a result of a later tax audit by the Internal Revenue Service, Executive is required
to pay taxes under Code Section&nbsp;409A, Employer
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">shall reimburse Executive for any taxes
under Code Section&nbsp;409A with respect to such payment, any interest and penalties imposed on
Executive for the failure to make timely payment of such taxes (with respect to any period
before the end of the audit), and any additional federal, state, or local income or
employment taxes imposed on Executive due to the foregoing reimbursement, so that the
after-tax payment to Executive is equal to the after-tax amount that Executive would have
received if Code Section&nbsp;409A had not applied. Employer shall pay the reimbursement
required by the preceding sentence only if Executive provides acceptable proof of payment
within sixty (60)&nbsp;days after having paid the taxes subject to reimbursement. If Executive
provides acceptable proof to Employer within such period, Employer shall pay the
reimbursement required by this <U>Section&nbsp;13.3</U> as soon as administratively feasible
(and under no circumstances more than one hundred twenty (120)&nbsp;days) after receiving such
proof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Adjustments for Changes in Capitalization of Employer</U>. In the event of any change
in Employer&#146;s outstanding Shares during the Term by reason of any reorganization, recapitalization,
reclassification, merger, stock split, reverse stock split, stock dividend, asset spin-off, share
combination, consolidation, or other event, the number and class of Shares and/or Options and/or
Restricted Shares awarded pursuant to <U>Section&nbsp;4</U> (and any applicable Option exercise price)
shall be adjusted by the Compensation Committee in its sole and absolute discretion and, if
applicable, in accordance with the terms of the Plan, the Option agreement evidencing the grant of
the Option, and the restricted stock agreement evidencing the grant of Restricted Shares. The
determination of the Compensation Committee shall be conclusive and binding. All adjustments
pursuant to this Section shall be made in a manner that does not result in taxation to the
Executive under Code Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Notices</U>. All notices, requests, consents and other communications, required or
permitted to be given hereunder, shall be made in writing and shall be deemed to have been made as
of: (a)&nbsp;the date that is three (3)&nbsp;days after the date of mailing, if sent via the U.S. postal
service, first-class, postage-prepaid, (b)&nbsp;the date that is the next date upon which an overnight
delivery service (Federal Express, UPS or DHL only) will make such delivery, if sent via such
overnight delivery service, first-class, postage prepaid, or (c)&nbsp;the date such delivery is made, if
delivered in person to the notice party specified below. Such notice shall be delivered as
follows (or to such other or additional address as either party shall designate by notice in
writing to the other in accordance herewith):
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>If to Employer</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ian D. Arnold, Esq.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Counsel<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Emmis Communications Corporation<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40 Monument Circle, Suite&nbsp;700<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indianapolis, Indiana 46204
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>With a copy to</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. Scott Enright, Esq.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Vice President and Associate General Counsel<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Emmis Communications Corporation<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40 Monument Circle, Suite&nbsp;700<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indianapolis, Indiana 46204
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Executive, to Executive at Executive&#146;s address in the personnel records of Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Miscellaneous</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 <U>Governing Law</U>. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the State of Indiana without regard to its conflict
of law principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 <U>Payment Delays Required by Code Section&nbsp;409A</U>. To the extent required by
Code Section&nbsp;409A(a)(2)(B)(i) and the regulations thereunder, if Executive is a &#147;specified
employee&#148; for purposes of such Section, payments on account of Executive&#146;s separation from
service shall be delayed to the earliest date permissible under Code Section
409A(a)(2)(B)(i).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 <U>Captions</U>. The section headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of any of the
terms and conditions of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 <U>Entire Agreement</U>. This Agreement shall supersede and replace, in all
respects, any prior employment agreement entered into between the parties and any such
agreement shall immediately terminate and be of no further force or effect. For purposes
of the preceding sentence, any change in control, restricted stock, option, and other
benefits-related agreement shall not constitute a &#147;prior employment agreement.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 <U>Assignment</U>. This Agreement, and Executive&#146;s rights and obligations
hereunder, may not be assigned by Executive to any third party; <U>provided</U>,
<U>however</U>, that Executive may designate pursuant to <U>Section&nbsp;16.7</U> one (1)&nbsp;or
more beneficiaries to receive any amounts that would otherwise be payable hereunder to
Executive&#146;s estate. Employer may assign all or any portion of its rights and obligations
hereunder to any other member of the Emmis Group or to any successor or assignee of
Employer pursuant to a reorganization, recapitalization, merger, consolidation, sale of
substantially all of the assets or stock of Employer, or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6 <U>Amendments; Waivers</U>. Except as expressly provided in the following
sentence, this Agreement cannot be changed, modified or amended, and no provision or
requirement hereof may be waived, without the written consent of Executive and Employer.
Employer may amend this Agreement to the extent that
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Employer reasonably determines that
such change is necessary to comply with Code Section&nbsp;409A and further guidance thereunder,
provided that such change does not reduce the amounts payable to Executive hereunder. The
failure of a party at any time to require performance of any provision hereof shall in no
manner affect the right of such party at a later time to enforce such provision. No waiver
by a party of the breach of any term or covenant contained in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as,
a further or continuing waiver of any such breach or a waiver of the breach of any other
term or covenant contained in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7 <U>Beneficiaries</U>. Whenever this Agreement provides for any payment to
Executive&#146;s estate, such payment may be made instead to such beneficiary as Executive may
have designated in a writing filed with Employer. Executive shall have the right to revoke
any such designation and to re-designate a beneficiary by written notice to Employer (or to
any applicable insurance company).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8 <U>Change in Fiscal Year</U>. If, at any time during the Term, Employer changes
its fiscal year, Employer shall make such adjustments to the various dates and target
amounts included herein as are necessary or appropriate, provided that no such change shall
affect the date on which any amount is payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9 <U>Executive&#146;s Warranty and Indemnity</U>. Executive hereby represents and
warrants that Executive: (i)&nbsp;has the full and unqualified right to enter into and fully
perform this Agreement according to each and every term and condition contained herein;
(ii)&nbsp;has not made any agreement, contractual obligation, or commitment in contravention of
any of the terms and conditions of this Agreement or which would prevent Executive from
performing according to any of the terms and conditions contained herein; and (iii)&nbsp;has not
entered into any agreement with any prior employer or other person, corporation or entity
which would in any way adversely affect Executive&#146;s or Employer&#146;s right to enter into this
Agreement. Furthermore, Executive hereby agrees to fully indemnify and hold harmless
Employer and each of its subsidiaries, affiliates and related entities, and each of their
respective officers, directors, employees, agents, attorneys, shareholders, insurers and
representatives from and against any and all losses, costs, damages, expenses (including
attorneys&#146; fees and expenses), liabilities and claims, arising from, in connection with, or
in any way related to Executive&#146;s breach of any of the representations or warranties
contained in this <U>Section&nbsp;16.9</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10 <U>Venue</U>. Any action to enforce, challenge or construe the terms or making
of this Agreement or to recover for its breach shall be litigated exclusively in a state
court located in Marion County, Indiana, except that the Employer may elect, at its sole
and absolute discretion, to litigate the action in the county or state where any breach by
Executive occurred or where Executive can be found. Executive acknowledges and agrees that
this venue provision is an
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">essential provision of this Agreement and Executive hereby
waives any defense of lack of personal jurisdiction or improper venue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11 <U>Indemnification</U>. Executive shall be entitled to the benefit of the
indemnification provisions set forth in Employer&#146;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&nbsp;37 of the Indiana Business Corporation Law (the
&#147;IBCL&#148;), 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&#146;s performance of Executive&#146;s
duties and obligations pursuant to this Agreement. Employer shall also maintain during the
Term an insurance policy providing directors&#146; and officers&#146; liability coverage in a
commercially reasonable amount. It is understood that the foregoing indemnification
obligations shall survive the expiration or termination of the Term.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12 <U>Change in Control</U>. In the event of a &#147;Change in Control,&#148; the rights and
obligations of Executive and Employer shall be set forth in the separate Change in Control
Agreement executed by the parties and attached to this Agreement as <U>Exhibit&nbsp;A</U>. &#147;Change in
Control&#148; shall have the meaning ascribed to it in <U>Exhibit&nbsp;A</U>. Notwithstanding the preceding
provisions or any provision of <U>Exhibit&nbsp;A</U>, Employer shall have the right to amend the Change
in Control Agreement to the extent that it reasonably deems such amendment necessary to comply with
the requirements of Code Section&nbsp;409A.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>EMMIS OPERATING COMPANY <BR>
(&#147;Employer&#148;)</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Jeffrey H. Smulyan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Jeffrey H. Smulyan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>GARY L. KASEFF<BR>
(&#147;Executive&#148;)</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Gary L. Kaseff
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Gary L. Kaseff&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Change in Control Agreement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Emmis Communications Corporation Change in Control Severance Agreement between Emmis
Communications Corporation and Gary L. Kaseff dated August&nbsp;11, 2003 is hereby incorporated by
reference.
</DIV>



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