Document:

Exhibit 10.2 Form of MSU Agreement

EXHIBIT 10.2

MARKET STOCK UNIT AGREEMENT
 
THIS MARKET STOCK UNIT AGREEMENT (this “Agreement”), dated as of ________, 201__, is between HSN, Inc., a Delaware corporation (the “Company”), and ____________ (the “Grantee”).  
 
1.    Award and Vesting of Target MSUs
 
(a)Subject to the terms, definitions and provisions of this Agreement and the Company’s Second Amended and Restated 2008 Stock and Annual Incentive Plan, as amended  (the “Plan”), the Company hereby grants to the Grantee the number of Market Stock Units set forth in the Summary of Award as the Target MSUs.  Your Summary of Award that was delivered simultaneously with this Agreement sets forth the Target MSUs granted to you by the Company and the Grant Date (among other information), and is hereby incorporated by reference to, and shall be read as part and parcel of, this Agreement.  Any defined terms not defined in this Agreement or the Summary of Award shall have the meanings ascribed to it in the Plan, and to the extent there is any inconsistency between definitions in the Plan or this Agreement, then the definition in this Agreement shall apply.  

(b)Subject to the terms and conditions of this Agreement and the provisions of the Plan, one-half of the Target MSUs shall be eligible to vest and no longer be subject to any restriction on each of the____ and ____ anniversary of the Grant Date (in each case, a “Vest Date”); provided, however, that except as set forth in Section 5 below all of the Target MSUs will be forfeited unless ________________________________________________.  The actual number of Target MSUs that vest on each Vest Date is determined under Section 2(a). 

(c)Notwithstanding the provisions of Section 1(b) and except as provided in Sections 5 and 6 of this Agreement, in the event of termination of the Grantee’s service with the Company during the Vesting Schedule for any reason, all remaining unvested Target MSUs shall be forfeited by the Grantee and canceled in their entirety effective immediately upon such termination.  

(d)Nothing in this Agreement shall confer upon the Grantee any right to continue in the employ or service of the Company or any of its affiliates or interfere in any way with the right of the Company or any such Affiliates to terminate the Grantee’s service at any time, with or without cause.  
 

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	2.
	Vesting and Settlement of Target MSUs

 
(a)The actual number of Target MSUs that vest shall be determined and settled in accordance with the following payment schedule:

		
	i.
	____________, with respect to the Target MSUs that vest on the first Vest Date; and

		
	ii.
	____________, with respect to the Target MSUs that vest on the second Vest Date.

The number of Target MSUs that vest on each of the Vest Dates shall be determined in accordance with the following formula:  (i) one-half of the Target MSUs multiplied by (ii) the Vest Date Fair Market Value divided by the Grant Date Fair Market Value, up to a maximum of 200% of the applicable number of Target MSUs.  Notwithstanding the formula in the preceding sentence, no Target MSUs will vest on the applicable Vest Date if the Vest Date Fair Market Value is less than ____________ of the Grant Date Fair Market Value, in which case, the MSUs that would otherwise vest on such Vest Date shall be automatically forfeited and cancelled.  The Company will issue to the Grantee a number of shares of Common Stock equal to the number of Target MSUs that vest on each Vest Date, net of any withholding taxes in accordance with the Company’s normal practices. 

For purposes of this Agreement, the following defined terms shall apply: 

“Grant Date Fair Market Value” means the average closing price of the Common Stock as reported by the Applicable Exchange for the 20 trading days ending on the Grant Date.  

 “Vest Date Fair Market Value” means the average closing price of the Common Stock as reported by the Applicable Exchange for the 20 trading days ending on the Vest Date.  

(b)Subject to Section 14(d) of the Plan (pertaining to the withholding of taxes), for each Target MSU that vests and is settled pursuant to this Section 2, the Company shall (i) if the Grantee is employed within the United States, issue (either in book-entry form or otherwise) one share of Common Stock for each such Target MSU vesting at such time and cause to be delivered to the Grantee one or more unlegended, freely-transferable stock certificates in respect of such shares issued upon settlement of the vested Target MSUs or (ii) if the Grantee is employed outside the United States, pay, or cause to be paid, to the Grantee an amount of cash, at the Company’s option, equal to the Fair Market Value of one share of Common Stock for each Target MSU vesting at such time.  Notwithstanding the foregoing, the Company shall be entitled to hold the shares or cash issuable upon settlement of Target MSUs that have vested until the Company or the agent selected by the Company to manage the Plan under which the MSUs have been issued (the “Agent”) shall have received from the Grantee a duly executed Form W-9 or W-8, as applicable.

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	3.
	Non-Transferability of Target MSUs

 
During the Vesting Schedule and until such time as the Target MSUs are ultimately vested and settled as provided in Section 2 above, the Target MSUs shall not be transferable by the Grantee by means of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise.

4.    Rights as a Stockholder
 
Except as otherwise specifically provided in this Agreement, the Grantee shall not be entitled to any rights of a stockholder with respect to the Target MSUs.  Notwithstanding the foregoing, dividends and distributions other than regular quarterly cash dividends, if any, may result in an adjustment pursuant to Section 5.
 
		
	5.
	Effect of Corporate Capitalization or Change in Control

(a)In the event of any change in corporate capitalization (including, but not limited to, a change in the number of shares of Common Stock outstanding), such as a stock split or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company (including any extraordinary cash or stock dividend), any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, the number and kind of Target MSUs and the shares underlying such Target MSUs shall be equitably adjusted by the Committee (including, in its discretion, providing for other property to be held as restricted property) as it may deem appropriate in its sole discretion in order to preserve, or to prevent enlargement of, the benefits and potential benefits made available pursuant to this Agreement.  The determination of the Committee regarding any such adjustment will be final and conclusive.

(b)In the event of a Change in Control of the Company and the Award is assumed on equivalent terms (and regardless of the HSN, Inc. _______________ if the Change in Control occurs prior to the end of the ______ fiscal year), then this Award shall be converted into the right to receive time-based restricted stock units (with the Vest Dates and settlement as described in Section 1(b) and the first sentence of Section 2(b) above) and the number of restricted stock units shall be calculated in accordance with the following formula:  (i) the number of Target MSUs multiplied by (ii) the price per share of Common Stock paid by the acquirer in the Change in Control transaction (the “Per Share Purchase Price”) divided by the Grant Date Fair Market Value.   The Committee shall determine the Per Share Purchase Price and such determination of the Committee shall be final and conclusive.  

(c)In the event of a Change in Control of the Company and the Award is not assumed on equivalent terms (and regardless of the HSN, Inc. __________ if the Change in Control occurs prior to the end of the ____ fiscal year), then as of the closing date of the Change in Control transaction, this Award shall be converted into the right to receive a cash payment equal to the Fair Market Value of the shares of Common Stock calculated in accordance with the following formula:  (i) the number of Target MSUs multiplied by (ii) the Per Share Purchase price divided by the Grant Date Fair Market Value.   The Committee shall determine the Per Share Purchase Price and such determination of the Committee shall be final and conclusive.  The cash payment shall be made to Grantee within ten (10) business days of the closing date of the Change in Control transaction.  

(d)With respect to the awards evidenced by this Agreement, subject to paragraph (e) of Section 10 of the Plan, notwithstanding any provision of the Plan to the contrary (and regardless of the HSN, Inc. _______________ if the Change in Control occurs prior to the end of the ______ fiscal year), upon Grantee’s Termination of Employment by the Company during the 90-day period preceding the consummation of a Change-in-Control, or during the one-year period following a Change in Control, for other than Cause or Disability or by the Grantee for Good Reason, then the restricted stock units into which the Target MSUs were converted pursuant to subsection (b) above shall be fully vested and become immediately payable upon the later of Grantee’s Termination of Employment or the Change in Control, any and all restrictions and deferral limitations applicable to such securities shall lapse, and such restricted stock units outstanding as of such date of Termination of Employment which were outstanding (or would have been but for the Termination of Employment) as of the date of such Change in Control shall become free of all restrictions and become fully vested and transferable. 

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(e)As used in this Agreement, a “Change in Control” shall have the meaning set forth in the definition of Change in Control in the Plan, provided that, in the case of any distribution to be made to Grantee under this Agreement as a result of a Change in Control, the definition of Change in Control shall be modified as follows: 

(i)  clause (ii) of the definition shall only apply if a majority of the Incumbent Directors are replaced during any 12-month period (subject to the other qualifications of that clause (ii)); 
(ii) a Business Combination shall only be deemed to have occurred if (A) substantially all of the assets of the Company have a total gross fair market value equal to 40% or more of the total gross fair market value of all of the Company’s assets, (B) the assets are not transferred to a Company stockholder or Affiliate of the Company; (C) less than 50% of the Resulting Voting Power shall reside in Outstanding Company Voting Securities retained by the Company’s stockholders in the Business Combination and/or voting securities received by such stockholders in the Business Combination on account of Outstanding Company Voting Securities and 
(iii) an event described in subsection (iv) of that definition shall not constitute a Change in Control for purposes of this Agreement.

Notwithstanding the foregoing, in no event shall a Change in Control for purposes of any distribution be deemed to occur unless the event satisfies the requirements of Treasury Regulation Section 1.409A3-(i)(5).
 
		
	6.
	Effect of Termination of Employment

(a)    If, prior to either of the Vest Dates, there shall be a Termination of Employment of Grantee for reason of death or Disability, then subject to Section 6(d) the number of Target MSUs that vest on the date of such termination shall be calculated in accordance with the following formula:  (i) the number of the completed months employed commencing on the Award Date plus twelve (12) divided by sixty (60); (ii) multiplied by the result of dividing (x) the average closing price of the Common Stock as reported by the Applicable Exchange for the 20 trading days ending on the date of Termination of Employment (the “Termination Date Fair Market Value”) by (y) the Grant Date Fair Market Value.  Notwithstanding the formula in clause (ii) of the preceding sentence, (x) the multiplier shall not exceed two (2) and (y) the multiplier shall be zero if the result is less than three tenths (0.3). 

(b)    If, prior to completion of either of the Vest Dates, there shall be a Termination of Employment of Grantee for reason of termination without Cause or resignation for Good Reason, then subject to Section 6(d) the number of MSUs that may vest on the date of such termination shall be calculated in accordance with the following formula:  (i) the number of the completed months employed commencing on the Award Date plus twelve (12) divided by sixty (60); (ii) multiplied by  the result of dividing the Termination Date Fair Market Value by the Grant Date Fair Market Value.  Notwithstanding the formula in clause (ii) of the preceding sentence, (x) the multiplier shall not exceed two (2) and (y) the multiplier shall be zero if the result is less than three tenths (0.3). 

(c)    If, prior to completion of either of the Vest Dates, Grantee shall cease to be employed by the Company, its Subsidiaries or Affiliates, for reason of Retirement (as defined below), then the Target MSUs shall continue to be eligible to vest through the Vest Date (subject to the requirement that the HSN, Inc. _____________________), notwithstanding the termination of employment, and, upon the Vest Date, will be settled in accordance with Section 2 above.   For purposes of this Agreement, “Retirement” means the termination of employment of Grantee from active service with the Company, or Subsidiary or Affiliate provided Grantee’s completed years of service (including years of service with the Company’s predecessor) shall total 10 or more at termination of employment and provided the Company has named a non-interim successor to Grantee as Chief Executive Officer.  

(d)    Notwithstanding anything to the contrary in Sections 6(a) and (b), if the Termination of Employment described therein occurs prior to the end of the HSN, Inc. ______________, no Target MSUs shall vest unless the HSN, Inc. ______________________.  The vested MSUs will be settled as soon as practicable after the date of Termination of Employment, but in no event later than March 15 of the year immediately following the year that includes the date of Termination of Employment.

		
	7.
	Payment of Transfer Taxes, Fees and Other Expenses

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The Company agrees to pay any and all original issue taxes and stock transfer taxes that may be imposed on the issuance of shares received by Grantee in connection with the Target MSUs, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith. 

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	8.
	Other Restrictions

 
(a)    The Target MSUs shall be subject to the requirement that, if at any time the Committee shall determine that any of the following are required (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, then in any such event, the award of Target MSUs shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.
 
(b)    The Grantee acknowledges that the Grantee is subject to the Company’s policies regarding compliance with securities laws, including but not limited to its Securities Trading Policy (as in effect from time to time and any successor policies), and, pursuant to these policies, if the Grantee is on the Company’s insider list, the Grantee shall be required to obtain pre-clearance from the Company’s General Counsel prior to purchasing or selling any of the Company’s securities, including any shares issued upon vesting of the Target MSUs, and may be prohibited from selling such shares other than during an open trading window.  The Grantee further acknowledges that, in its discretion, the Company may prohibit the Grantee from selling such shares even during an open trading window if the Company has concerns over the potential for insider trading.
 
9.    Limitation on Obligations.  

The Company’s obligation with respect to the MSUs  granted hereunder is limited solely to the delivery to the Grantee of shares of Common Stock on the date when such shares are due to be delivered hereunder, and in no way shall the Company become obligated to pay cash in respect of such obligation, except as otherwise expressly provided for herein.  This Award shall not be secured by any specific assets of the Company or any of its subsidiaries, nor shall any assets of the Company or any of its subsidiaries be designated as attributable or allocated to the satisfaction of the Company’s obligations under this Agreement.

10.    No Effect on Company Actions.  

Notwithstanding any term or provision hereof to the contrary, the existence of the award, or of any outstanding MSUs awarded hereunder, shall not affect in any manner the right, power or authority of the Company to make, authorize or consummate: (i) any or all adjustments, recapitalizations, reorganizations, stock splits, stock dividends, combination of shares or other changes in the Company’s capital structure or its business, (ii) any merger, consolidation or similar transaction by or of the Company, (iii) any offer, issue or sale by the Company of any capital stock of the Company, including any equity or debt securities, or preferred or preference stock that would rank prior to or on parity with the MSUs and/or that would include, have or possess other rights, benefits and/or preferences superior to those that the MSUs include, has or possesses, or any warrants, options or rights with respect to any of the foregoing, (iv) the dissolution or liquidation of the Company, (v) any sale, transfer or assignment of all or any part of the stock, assets or business of the Company or (vi) any other corporate transaction, act or proceeding (whether of a similar character or otherwise).

11.    Forfeiture and Company Right to Recover Fair Market Value of Shares Received Pursuant to MSUs 

The parties acknowledge and agree that this Award shall be subject to the terms of the Company’s executive compensation recovery (or “clawback”) policy provided for in the Company’s Code of Business Conduct and Ethics, currently in place and as such policy may be amended from time to time.  

12.    No Right To Employment.       

Subject to the terms of any employment agreement between the Company and Grantee, the grant of this Award shall not constitute a contract of employment or confer upon Grantee any right with respect to the continuance of her employment by or other service with the Company or any subsidiary, nor shall it or they be construed as affecting the rights of the Company (or any subsidiary) to terminate the service of Grantee at any time or otherwise change the terms of such service. 

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13.    Compliance with Laws;  Securities Law Compliance. 

Upon vesting (or partial vesting) of the MSUs granted hereunder, Grantee shall make such representations and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company to issue or transfer the shares of Common Stock in compliance with the provisions of applicable federal or state securities laws. No shares of Common Stock shall be issued upon vesting of an MSU granted hereunder unless and until the Company is satisfied, in its sole discretion, that there has been compliance with all legal requirements applicable to the issuance of such MSU Shares.

		
	14.
	Notices

 
All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by facsimile, overnight courier, or registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
  
If to the Grantee: at the address last provided by the Grantee to the Company’s Human Resources Department.  

 
If to the Company:            HSN, Inc. 
1 HSN Drive
St. Petersburg, FL  33729
Attention:  General Counsel 
Facsimile:  (727) 872-1000
 
or to such other address or facsimile number as any party shall have furnished to the other in writing in accordance with this Section 14.  Notice and communications shall be effective when actually received by the addressee.  Notwithstanding the foregoing, the Grantee consents to electronic delivery of documents required to be delivered by the Company under the securities laws.
 
		
	15.
	Effect of Agreement

 
Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.
 
		
	16.
	Laws Applicable to Construction; Consent to Jurisdiction

 
The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws, as applied to contracts executed in and performed wholly within the State of Delaware.  In addition to the terms and conditions set forth in this Agreement and the Summary of Award, the MSUs are subject to the terms and conditions of the Plan, which are hereby incorporated by reference.
 
Any and all disputes arising under or out of this Agreement, including without limitation any issues involving the enforcement or interpretation of any of the provisions of this Agreement, shall be resolved by the commencement of an appropriate action in the state or federal courts located within the County of Pinellas, State of Florida, which shall be the exclusive jurisdiction for the resolution of any such disputes.  The Grantee hereby agrees and consents to the personal jurisdiction of said courts over the Grantee for purposes of the resolution of any and all such disputes.
 
		
	17.
	Severability

 
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
 
		
	18.
	Conflicts and Interpretation

 

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Except as set forth in the last sentence of Section 1(a) above, in the event of any conflict between this Agreement and the Plan, the Plan shall control.  In the event of any ambiguity in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan, and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan.
 
In the event of any (i) conflict between the Summary of Award (or any information posted on the Morgan Stanley Smith Barney Benefit Access System) and this Agreement, the Plan and/or the books and records of the Company, or (ii) ambiguity in the Summary of Award (or any information posted on the Morgan Stanley Smith Barney Benefit Access System), this Agreement, the Plan and/or the books and records of the Company, as applicable, shall control.
 
		
	19.
	Amendment

 
The Company may modify, amend or waive the terms of the Target MSU award, prospectively or retroactively, but only to reduce the rights of the Grantee and no such modification, amendment or waiver shall impair the rights of the Grantee without his or her consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.
 
		
	20.
	Headings

 
The headings of paragraphs herein are included solely for convenience of reference and shall not affect the meaning or interpretation of any of the provisions of this Agreement.
 
		
	21.
	Counterparts

 
This Agreement may be executed in counterparts, which together shall constitute one and the same original.

22.    Data Protection

The Grantee authorizes the release from time to time to the Company (and any of its subsidiaries or affiliated companies) and to the Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).  Without limiting the above, Grantee permits his or her employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and personal data that may be useful or necessary for the purposes of the administration of the Plan and/or this Agreement and/or to implement or structure any further grants of equity awards (if any)).  Grantee hereby authorizes the Relevant Information to be transferred to any jurisdiction in which the Company, his or her employing company or the Agent considers appropriate.  Grantee shall have access to, and the right to change, the Relevant Information.  Relevant Information will only be used in accordance with applicable law.

22.    Section 409A

The Parties agree that this Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is exempt from, or, if that is not possible, then compliant with the requirements of Internal Revenue Code Section 409A and applicable Internal Revenue Service guidance and Treasury Regulations issued there under (and any applicable transition relief under Internal Revenue Code Section 409A). Nevertheless, the tax treatment of the benefits provided under this Agreement is not warranted or guaranteed. Grantee acknowledges that she is responsible under U.S federal income tax law for any taxes, penalties, and interest imposed due to the failure of any payments hereunder to comply with Internal Revenue Code Section 409A. Any right to a series of installment payments under this Agreement shall, for purposes of Internal Revenue Code Section 409A, be treated as a right to a series of separate payments.

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Additionally, notwithstanding anything in this Agreement to the contrary, any separation payments under this Agreement (to the extent that they constitute “deferred compensation” under Internal Revenue Code Section 409A and applicable regulations), and any other amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Internal Revenue Code Section 409A and that would otherwise be payable or distributable hereunder by reason of Grantee’s termination of employment, will not be payable or distributable to Grantee by reason of such circumstance unless the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” in Internal Revenue Code Section 409A and applicable regulations (without giving effect to any elective provisions that may be available under such definition). If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant “separation from service.”

In the event that Grantee is deemed a “specified employee” (as described in Internal Revenue Code Section 409A), and any payment or benefit payable pursuant to this Agreement constitutes deferred compensation under Internal Revenue Code Section 409A and would otherwise be payable upon Grantee’s “separation from service” (as described in Internal Revenue Code Section 409A), then no such payment or benefit shall be made before the date that is six (6) months after Grantee’s “separation from service” (or, if earlier, the date of Grantee’s death). Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule. 

IN WITNESS WHEREOF, as of the date first above written, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer.   Electronic acceptance of this Agreement pursuant to the Company’s instructions to Grantee (including through an online acceptance process managed by the Agent) is acceptable.
 
HSN, INC.

By:                            
Lisa Letizio
Chief Human Resources Officer

 

9EXHIBIT 10.7 CASH LONG-TERM INCENTIVE PLAN

DEX MEDIA, INC. 
2013-2015 CASH LONG-TERM INCENTIVE PLAN
(As Adopted September 5, 2013)

DEX MEDIA, INC. 
2013-2015 CASH LONG-TERM INCENTIVE PLAN
ARTICLE I 
ESTABLISHMENT
The Company hereby establishes the Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan”, as set forth in this document.  The Plan permits the grant of Cash-Based Awards.  The Plan is effective as of September 5, 2013 (the “Effective Date”).
ARTICLE II 
 
DEFINITIONS
Each word and phrase defined in this Article shall have the meaning set out below throughout the Plan, unless the context in which any such word or phrase appears reasonably requires a broader, narrower or different meaning. 
2.1    “Affiliate” means any corporation, partnership, limited liability company or association, trust or other entity or organization which, directly or indirectly, controls, is controlled by, or is under common control with, the Company.  For purposes of the preceding sentence, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (a) to vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors or comparable individuals of the controlled entity or organization, or (b) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities or by contract or otherwise.
2.2    “Award” means a Cash-Based Award.
2.3    “Board” means the board of directors of the Company.
2.4    “Cash-Based Award” means an award granted pursuant to Article IV to an individual who is then an Employee.
2.5    “Cause” shall have the meaning ascribed to that term in the SuperMedia Inc. Executive Transition Plan.
2.6    “Change in Control of the Company” shall have the meaning ascribed to that term in the Dex Media, Inc. Amended and Restated Long-Term Incentive Plan.
2.7    “Code” means the United States Internal Revenue Code of 1986, as amended from time to time.
2.8    “Committee” means the Compensation and Benefits Committee of the Board of Directors of the Company.
2.9    “Company” means Dex Media, Inc., or any successor (by reincorporation, merger or otherwise).
2.10    “Disability” shall have the meaning ascribed to that term in the Dex Media, Inc. Amended and Restated Long-Term Incentive Plan.
2.11    “Effective Date” shall have the meaning ascribed to that term in Section 1.1.

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2.12    “Employee” means a common law employee of the Company or any Affiliate.
2.13    “Fiscal Year” means the calendar year.
2.14    “Good Reason” shall have the meaning ascribed to that term in the SuperMedia Inc. Executive Transition Plan.
2.15    “Measurement Period” means a 12-month period, or such shorter period designated by the Committee, ending on each of December 31, 2013, December 31, 2014, and December 31, 2015.
2.16    “Participant” means a person who has been selected by the Committee to participate in the Plan.
2.17    “Plan” means the Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan, as set forth in this document as it may be amended from time to time.
2.18    “Section 409A” means section 409A of the Code and the regulations and other guidance promulgated by the United States Department of Treasury or the United States Internal Revenue Service under section 409A of the Code, or any successor statute.
2.19    “Separation from Service” shall have the meaning ascribed to that term in Section 409A.
2.22    “Specified Employee” shall have the meaning ascribed to that term in Section 409A.
ARTICLE III 
 
ELIGIBILITY
Employees who are selected by the Committee are eligible to participate in the Plan.
ARTICLE IVCASH-BASED AWARDS
4.1    Authority to Grant Cash-Based Awards.  Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant Cash-Based Awards under the Plan to Employees in such amounts and upon such terms as the Committee shall determine.  Such Awards shall be set forth in the manner determined by the Committee.
4.2    Value of Cash-Based Award.  The Committee shall establish the amount of a Participant’s Cash-Based Award in its sole discretion.
4.3    Terms of the Cash-Based Award.  Under a Cash-Based Award, a Participant has the opportunity to earn an incentive cash payment based upon the achievement of the performance goals established by the Committee for each of the Measurement Periods, as compared with the target performance goals established by the Committee for the applicable Measurement Period.  Except as specified in Section 4.6, a Participant shall not be paid any amount for a Measurement Period unless the Participant is employed by the Company or an Affiliate on the payment date for the applicable Measurement Period set forth in Section 4.4.
4.4    Payment of Cash-Based Award.  Except as specified in Section 4.6, amounts, if any, payable under a Cash-Based Award shall be paid as follows:

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a.    Amounts payable with respect to the Measurement Period ending on December 31, 2013 shall be paid on December 31, 2014.
b.    Amounts payable with respect to the Measurement Period ending on December 31, 2014 shall be paid on December 31, 2015.
c.    Amounts payable with respect to the Measurement Period ending on December 31, 2015 shall be paid on December 31, 2016.
4.5    Termination of Employment Not in Connection with a Change in Control of the Company.  Except as specified in Section 4.6, if a Participant’s employment with the Company and its Affiliates terminates on or before the payment of all or any portion of the Cash-Based Award, all of the Participant’s rights under the Plan will lapse and be completely forfeited on the date of the Participant’s termination of employment with the Company.
4.6    Change in Control of the Company.
a.    Upon the occurrence of a Change in Control of the Company, performance goals for the Measurement Period in effect on the date of the Change in Control of the Company would be deemed to be achieved at the target level established by the Committee for each Participant who is employed by the Company or its Affiliate on the date of the Change in Control of the Company.  Amounts payable with respect to Measurement Periods that have not commenced on the date of the Change in Control of the Company would be forfeited.  
Except as specified in Section 4.6(b) and (c), amounts payable to a Participant pursuant to this Section 4.6(a) shall be paid to the Participants on (i) the applicable payment date set forth in Section 4.4 if the Participant is still an Employee on such payment date or (ii) the date of the Participant’s Separation from Service if the Participant is not a Specified Employee, or the date that is six months following the date of the Participant’s Separation from Service if the Participant is a Specified Employee, if the Participant’s employment with the Company and its Affiliates is terminated before such payment date.  
b.    If a Participant’s employment with the Company and its Affiliates is terminated without Cause or for Good Reason within six months prior to a Change in Control of the Company, the Participant shall be paid an amount equal to the amount the Participant would have received for the Measurement Period in effect on the date of the Change in Control of the Company had all of the performance goals for such Measurement Period been achieved at the target level established by the Committee.  If the Participant is not a Specified Employee, such amount shall be paid to the Participant on the date of the Participant’s Separation from Service.  If the Participant is a Specified Employee, such amount shall be paid to the Participant on the date that is six months following the date of the Participant’s Separation from Service.  
c.    If a Participant’s employment with the Company and its Affiliates is terminated without Cause or for Good Reason within two years following a Change in Control of the Company, all amounts payable to the Participant with respect to Measurement Periods that were completed prior to the year in which the Participant’s termination of employment occurs that have not been paid to the Participant shall be paid to the Participant on the date of the Participant’s Separation from Service if the Participant is not a Specified Employee, or on the date that is six months following the date of the Participant’s Separation from Service if the Participant is a Specified Employee.

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ARTICLE V 
 
ADMINISTRATION
5.1    Awards.  The Plan shall be administered by the Committee.  The members of the Committee shall serve at the discretion of the Board.  The Committee shall have full and exclusive power and authority to administer the Plan and to take all actions that the Plan expressly contemplates or are necessary or appropriate in connection with the administration of the Plan with respect to Awards granted under the Plan.
5.2    Authority of the Committee.
a.    The Committee shall have full and exclusive power to interpret and apply the terms and provisions of the Plan, and to adopt such rules, regulations and guidelines for implementing the Plan as the Committee may deem necessary or proper, all of which powers shall be exercised in the best interests of the Company and in keeping with the objectives of the Plan.  A majority of the members of the Committee shall constitute a quorum for the transaction of business relating to the Plan or Awards made under the Plan, and the vote of a majority of those members present at any meeting shall decide any question brought before that meeting.  Any decision or determination reduced to writing and signed by a majority of the members shall be as effective as if it had been made by a majority vote at a meeting properly called and held.  All questions of interpretation and application of the Plan, or as to Awards granted under the Plan, shall be subject to the determination, which shall be final and binding, of a majority of the whole Committee.  No member of the Committee shall be liable for any act or omission of any other member of the Committee or for any act or omission on his or her own part, including but not limited to the exercise of any power or discretion given to him or her under the Plan, except those resulting from his or her own willful misconduct.  In carrying out its authority under the Plan, the Committee shall have full and final authority and discretion, including but not limited to the following rights, powers and authorities to: (i) determine the persons to whom and the time or times at which Awards will be made; (ii) determine the number and exercise price of shares of Stock covered in each Award subject to the terms and provisions of the Plan; (iii) determine the terms, provisions and conditions of each Award, which need not be identical and need not match the default terms set forth in the Plan; (iv) accelerate the time at which any outstanding Award will vest; (v) prescribe, amend and rescind rules and regulations relating to administration of the Plan; and (vi) make all other determinations and take all other actions deemed necessary, appropriate or advisable for the proper administration of the Plan.
b.    The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award to a Holder in the manner and to the extent the Committee deems necessary or desirable to further the Plan’s objectives. Further, the Committee shall make all other determinations that may be necessary or advisable for the administration of the Plan.  As permitted by law and the terms and provisions of the Plan, the Committee may delegate to one or more of its members or to one or more officers of the Company, or its Affiliates or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any person to whom it has delegated duties or powers as aforesaid may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or more of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards and (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is, on the relevant date, an executive officer as determined by the Board in accordance with Section 16 of the Securities and Exchange Act of 1934, as amended; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the 

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authority delegated.  The Committee may employ attorneys, consultants, accountants, agents, and other persons, any of whom may be an Employee, and the Committee, the Company, and its officers and Board shall be entitled to rely upon the advice, opinions, or valuations of any such person.
5.3    Decisions Binding.  All determinations and decisions made by the Committee or the Board, as the case may be, pursuant to the provisions of the Plan and all related orders and resolutions of the Committee or the Board, as the case may be, shall be final, conclusive and binding on all persons, including the Company, its Affiliates, its stockholders, Participants and the estates and beneficiaries of Participants.
5.4    No Liability.  Under no circumstances shall the Company, its Affiliates, the Board or the Committee incur liability for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s, its Affiliates’, the Committee’s or the Board’s roles in connection with the Plan.
ARTICLE VI 
 
AMENDMENT OR TERMINATION OF PLAN
The Board may, at any time and from time to time, alter, amend, modify, suspend, or terminate the Plan and the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate any Award in whole or in part.
ARTICLE VII 
 
MISCELLANEOUS
7.1    Unfunded Plan/No Establishment of a Trust Fund.  Participants shall have no right, title, or interest whatsoever in or to any investments that the Company or any of its Affiliates may make to aid in meeting obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other person.  To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company.  All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as expressly set forth in the Plan.  No property shall be set aside nor shall a trust fund of any kind be established to secure the rights of any Holder under the Plan.  The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.
7.2    No Employment Obligation.  The granting of any Award shall not constitute an employment or service contract, express or implied, and shall not impose upon the Company or any Affiliate any obligation to employ or continue to employ, or to utilize or continue to utilize the services of, any Participant.  The right of the Company or any Affiliate to terminate the employment of, or the provision of services by, any person shall not be diminished or affected by reason of the fact that an Award has been granted to him, and nothing in the Plan or an Award shall interfere with or limit in any way the right of the Company or its Affiliates to terminate Participant’s employment at any time or for any reason not prohibited by law.
7.3    Tax Withholding.  To the extent that any payment pursuant to this Plan results in income, wages or other compensation to a Participant for any income, employment or other tax purposes with respect to which the Company or its Affiliates have a withholding obligation under federal, state or local law, the Company is authorized 

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to withhold from any such payment under this Plan any tax required to be withheld by reason of such taxable income, wages or compensation sufficient to satisfy the withholding obligation.
7.4    Gender and Number.  If the context requires, words of one gender when used in the Plan shall include the other and words used in the singular or plural shall include the other.
7.5    Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
7.6    Headings.  Headings of Articles and Sections are included for convenience of reference only and do not constitute part of the Plan and shall not be used in construing the terms and provisions of the Plan.
7.7    Governing Law.  The provisions of the Plan and the rights of all persons claiming thereunder shall be construed, administered and governed under the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Recipients of an Award under the Plan are deemed to submit to the sole and exclusive jurisdiction and venue of the federal or state courts of the State of Texas to resolve any and all issues that may arise out of or relate to the Plan or any related Award.

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