Exhibit 10.1


 


Idearc Inc.

Summary of 2009 Short-Term Incentive Award Program


 


In the first quarter of 2009, the Board of Directors
(the “Board”) of Idearc Inc. (the “Company”), at the recommendation of the
Human Resources Committee of the Board, approved the terms of the short-term
incentive award program for the Company’s executive officers and other
employees for 2009.  The 2009 short-term
incentive award program includes two components:  an annual incentive component and an
opportunity incentive component.  Each
component is summarized below.  The
awards for executive officers were granted under the Idearc Inc. 2008 Incentive
Compensation Plan (the “2008 Plan”).


 


Annual Incentive Component


 


The Board established target awards under the annual
incentive component for each executive officer of the Company based on a
percentage of the officer’s base salary, which target is 100% for the chief
executive officer and 80% for all other executive officers.  Award payouts under this component will be
based on the Company’s achievement of performance targets specified in the 2008
Plan, including print published revenue, Internet revenue and earnings before
interest, taxes, depreciation and amortization (EBITDA) for the period
beginning January 1, 2009 and ending December 31, 2009.  Achievement of 100% of the combined measure
of performance will result in award payouts equal to the target awards.  At 90% achievement, which is the minimum
threshold for award payouts under the annual incentive component, award payouts
will be equal to 25% of the target awards. 
At 112.5% achievement, which is the maximum under the annual incentive
component, award payouts will be equal to 200% of the target awards.  Awards under the annual incentive component,
if achieved, will be paid in cash during the first quarter of 2010.


 


Opportunity Incentive
Component


 


The Board established target awards under the
opportunity incentive component for each executive officer of the Company based
on a percentage of the officer’s base salary, which target is 29.26% for the
chief executive officer and 23.41% for all other executive officers.  Award payouts under this component will be
based on the Company’s achievement of performance targets during the six months
ended June 30, 2009 related to multi-product revenue, digital directory
implementation, and the implementation of specific technology initiatives and
media consultant and mobility initiatives. 
No awards will be paid under the opportunity incentive component unless
100% of the revenue target is achieved. 
Assuming achievement of the revenue target, the achievement of 100% of
the combined measure of performance related to implementation of the
initiatives described above will result in award payouts equal to the target
awards.  The target award is the maximum
award payable under the opportunity incentive component.  At 80% achievement, which is the minimum
threshold for award payouts assuming the revenue target is achieved, award
payouts will be equal to 80% of the target awards.  Awards under the opportunity incentive
component, if achieved, will be paid in cash during the third quarter of 2009.