Notwithstanding anything in the Severance Plan or in this SPD to the contrary, DallasNews Corporation reserves the right to determine on a case-by-case basis whether an individual will be eligible for a severance benefit under the Severance Plan or whether any otherwise eligible employee will be excluded from participation in the Severance Plan, and to instruct the plan administrator to approve an amount of severance benefit that is different than that described in the Severance Plan or in this SPD (either higher or lower) with respect to any participant.

Benefits will be payable under the Severance Plan only if you are an eligible employee, receive notice from DallasNews Corporation that your employment is or will be terminated, without cause, and the plan administrator determines that you are eligible for severance plan benefits.

If you are determined to be eligible for severance benefits, the calculation of the benefit payable under the Severance Plan will depend upon your position, your completed Years of Service and your Base Salary as of your termination date. However, in order for you to receive any severance benefits under the Severance Plan, you must execute, and not revoke, a release in a form prescribed by DallasNews Corporation.

For purposes of the Severance Plan, “Base Salary” means annual base compensation rate at the time of your termination of employment. If you are a salaried employee, your weekly Base Salary will be calculated by dividing your annual Base Salary by 52. If you are an hourly employee, your weekly Base Salary will be calculated by multiplying your base hourly rate of pay by the number of hours in your employer’s standard work week. Base Salary does not include commissions, bonuses, overtime, incentive compensation, cost of living adjustments, benefits paid under any qualified plan, any group medical, dental or other welfare benefit plan, noncash compensation or any other additional compensation, but it will include salary reduction amounts under DallasNews Corporation’s 401(k) or cafeteria plans, or a nonqualified elective deferred compensation arrangement, if any, to the extent that in each such case the reduction is to base salary.

For purposes of the Severance Plan, a “Year of Service” means each 12-month period of service with a participating employer commencing on your date of hire and each anniversary thereof. Years of Service for this purpose will include service with any company that is (or was during your employment) affiliated with DallasNews Corporation or, for periods prior to February 8, 2008, was affiliated with DallasNews Corporation and its affiliates. Any benefits payable under the Severance Plan will be reduced by amounts withheld to satisfy your federal, state or local income or other tax obligations.

Under the Severance Plan’s formula, an eligible participant employed at or above the level of Vice-President will be entitled to receive a lump sum severance benefit equal to the sum of (i) 1.25 week of Base Salary multiplied by the participant’s Years of Service, but in no event less than 16 weeks’ Base Salary and not more than 26 weeks’ Base Salary, plus (ii) an amount equal to six times the monthly COBRA premium applicable to the participant’s coverage level under the DallasNews Corporation Health Care and Welfare Benefit Plan (or its successor).

If COBRA premiums when calculated are less than $3,000 or if the employee is not covered under the DallasNews Corporation Plan, a flat $3,000 will be paid.

An eligible participant employed below the level of Vice-President with 8 Years of Service or less, will be entitled to receive a lump sum severance benefit equal to 1.25 weeks’ Base Salary multiplied by the participant’s Years of Service, but in no event less than four weeks’ Base Salary.An eligible participant employed below the level of Vice-President with more than 8 Years of Service will be entitled to receive a lump sum severance benefit equal to 1.25 weeks’ Base Salary multiplied by 8 Years of Service; plus 1 week of Base Salary multiplied by the numbers of Years of Service in excess of 8 Years of Service; but in no event will the amount paid be greater than 26 weeks’ Base Salary.

Three times the monthly COBRA premium applicable to the Participant's coverage or if three months of premiums is less than $3,000 or the employee is not covered under the DallasNews Corporation Plan a flat $3,000 will be paid.

The following examples will illustrate the calculation of benefits under the Severance Plan:

If a participant’s weekly Base Salary is $3375 and he or she has 33 Years of Service, the participant will be eligible to receive a lump sum severance benefit of: $87,750.00 (1.25 week of Base Salary multiplied by 26 Years of Service, but not more than 26 weeks base salary), plus six months of then-current COBRA premiums.

If a participant’s weekly Base Salary is $3,375 and he or she has 15 Years of Service, the participant will be eligible to receive a lump sum severance benefit of: $54,000 (1.25 week of Base Salary multiplied by 15 Years of Service, but not less than 16 weeks’ Base Salary), plus six months of then-current COBRA premiums.

If a participant’s weekly Base Salary is $961 and the participant has 5 Years of Service, he or she will be eligible to receive a total severance benefit of $6,006 (1.25 weeks’ Base Salary multiplied by 5 Years of Service).

If a participant’s weekly Base Salary is $961 and the participant has 28 Years of Service, he or she will be eligible to receive a total severance benefit of $27,388.50 (1.25 weeks’ Base Salary multiplied by 8 Years of Service, and 1.0 weeks’ Base Salary multiplied by 16 Years of Service subject to a maximum benefit of 26 weeks of Base Salary).