Document:

exv10w4

Exhibit 10.4

DEX ONE CORPORATION

EQUITY INCENTIVE PLAN

I INTRODUCTION

     1.1 Purposes. The purposes of the Dex One Corporation Equity Incentive Plan
(this “Plan”) are (i) to align the interests of the Company’s stockholders and the
recipients of awards under this Plan by increasing the proprietary interest of such recipients in
the Company’s growth and success, (ii) to advance the interests of the Company by attracting and
retaining directors, officers, other employees and other service providers and (iii) to motivate
such persons to act in the long-term best interests of the Company and its stockholders.

     1.2 Certain Definitions.

     “Agreement” shall mean the written agreement evidencing an award hereunder between the
Company and the recipient of such award.

     “Bankruptcy Court” shall have the meaning set forth in Section 5.1.

     “Bankruptcy Proceedings” shall mean the bankruptcy proceedings in the United States
Bankruptcy Court for the District of Delaware with respect to In re: R.H. Donnelley Corp., et.
al., Case No. 09-11833 (KG).

     “Board” shall mean the Board of Directors of the Company.

     “Change in Control” shall have the meaning set forth in Section 5.8(b).

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Committee” shall mean the Compensation and Benefits Committee designated by the
Board, consisting of two or more members of the Board, each of whom may be (i) a “Non-Employee
Director” within the meaning of Rule 16b-3 under the Exchange Act, (ii) an “outside director”
within the meaning of Section 162(m) of the Code and (iii) “independent” within the meaning of the
rules of The New York Stock Exchange or, if the Common Stock is not listed on The New York Stock
Exchange, within the meaning of the rules of the principal national stock exchange on which the
Common Stock is then traded.

     “Common Stock” shall mean the common stock, par value $0.001 per share, of the
Company, and all rights appurtenant thereto.

     “Company” shall mean Dex One Corporation, a Delaware corporation, or any successor
thereto.

     “Disability” means an individual’s long-term disability as defined under the long-term
disability plan of the Company that covers that individual; or if the individual is not covered by

 

 

such a long-term disability plan, an individual’s disability as defined for purposes of eligibility
for a disability award under the Social Security Act.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” shall mean the closing transaction price of a share of Common
Stock as reported on The New York Stock Exchange on the date as of which such value is being
determined or, if the Common Stock is not listed on The New York Stock Exchange, the closing
transaction price of a share of Common Stock on the principal national stock exchange on which the
Common Stock is traded on the date as of which such value is being determined or, if there shall be
no reported transactions for such date, on the next preceding date for which transactions were
reported; provided, however, that if the Common Stock is not listed on a national
stock exchange or if Fair Market Value for any date cannot be so determined, Fair Market Value
shall be determined by the Committee by whatever means or method as the Committee, in the good
faith exercise of its discretion, shall at such time deem appropriate and in compliance with
Section 409A of the Code; provided further that for purposes of determining the
base price of SARs granted pursuant to the Plan of Reorganization, the Fair Market Value shall be
determined in accordance with the Plan of Reorganization.

     “Free-Standing SAR” shall mean an SAR which is not granted in tandem with, or by
reference to, an option, which entitles the holder thereof to receive, upon exercise, shares of
Common Stock (which may be Restricted Stock) with an aggregate value equal to the excess of the
Fair Market Value of one share of Common Stock on the date of exercise over the base price of such
SAR, multiplied by the number of such SARs which are exercised.

     “Incentive Stock Option” shall mean an option to purchase shares of Common Stock that
meets the requirements of Section 422 of the Code, or any successor provision, which is intended by
the Committee to constitute an Incentive Stock Option.

     “Non-Employee Director” shall mean any director of the Company who is not an officer
or employee of the Company or any Subsidiary.

     “Nonqualified Stock Option” shall mean an option to purchase shares of Common Stock
which is not an Incentive Stock Option.

     “Performance Measures” shall mean the criteria and objectives, established by the
Committee, which shall be satisfied or met (i) as a condition to the grant or exercisability of all
or a portion of an option or SAR or (ii) during the applicable Restriction Period or Performance
Period as a condition to the vesting of the holder’s interest, in the case of a Restricted Stock
Award, of the shares of Common Stock subject to such award, or, in the case of a Restricted Stock
Unit Award, to the holder’s receipt of the shares of Common Stock subject to such award or of
payment with respect to such award. To the extent necessary for an award to be qualified
performance-based compensation under Section 162(m) of the Code and the regulations thereunder,
such criteria and objectives shall include one or more of the following corporate-wide or
subsidiary, division, operating unit or individual measures, stated in either absolute terms
or relative terms, such as rates of growth or improvement: the attainment by a share of Common
Stock of a specified Fair Market Value for a specified period of time, earnings per share, return

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to stockholders (including dividends), return on assets, return on equity, earnings of the Company
before or after taxes and/or interest, revenues, market share, cash flow or cost reduction goals,
interest expense after taxes, return on investment, return on investment capital, economic value
created, operating margin, net income before or after taxes, pretax earnings before interest,
depreciation and/or amortization, pretax operating earnings after interest expense and before
incentives, and/or extraordinary or special items, operating earnings, net cash provided by
operations, and strategic business criteria, consisting of one or more objectives based on meeting
specified market penetration, geographic business expansion goals, cost targets, customer
satisfaction, reductions in errors and omissions, reductions in lost business, management of
employment practices and employee benefits, supervision of litigation and information technology,
quality and quality audit scores, productivity, efficiency, and goals relating to acquisitions or
divestitures, or any combination of the foregoing. In the sole discretion of the Committee, but
subject to Section 162(m) of the Code, the Committee may amend or adjust the Performance Measures
or other terms and conditions of an outstanding award in recognition of unusual or nonrecurring
events affecting the Company or its financial statements or changes in law or accounting
principles.

     “Performance Option” shall mean an Incentive Stock Option or Nonqualified Stock
Option, the grant of which or the exercisability of all or a portion of which is contingent upon
the attainment of specified Performance Measures within a specified Performance Period.

     “Performance Period” shall mean any period designated by the Committee during which
(i) the Performance Measures applicable to an award shall be measured and (ii) the conditions to
vesting applicable to an award shall remain in effect.

     “Performance Unit” shall mean a right to receive, contingent upon the attainment of
specified Performance Measures within a specified Performance Period, a specified cash amount or,
in lieu thereof, shares of Common Stock having a Fair Market Value equal to such cash amount.

     “Performance Unit Award” shall mean an award of Performance Units under this Plan.

     “Plan of Reorganization” shall mean the Plan of Reorganization approved pursuant to
the Bankruptcy Proceedings.

     “Restricted Stock” shall mean shares of Common Stock which are subject to a
Restriction Period and which may, in addition thereto, be subject to the attainment of specified
Performance Measures within a specified Performance Period.

     “Restricted Stock Award” shall mean an award of Restricted Stock under this Plan.

     “Restricted Stock Unit” shall mean a right to receive one share of Common Stock or, in
lieu thereof, the Fair Market Value of such share of Common Stock in cash, which shall be
contingent upon the expiration of a specified Restriction Period and which may, in addition
thereto, be contingent upon the attainment of specified Performance Measures within a specified
Performance Period.

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     “Restricted Stock Unit Award” shall mean an award of Restricted Stock Units under this
Plan.

     “Restriction Period” shall mean any period designated by the Committee during which
(i) the Common Stock subject to a Restricted Stock Award may not be sold, transferred, assigned,
pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or
the Agreement relating to such award, or (ii) the conditions to vesting applicable to a Restricted
Stock Unit Award shall remain in effect.

     “SAR” shall mean a stock appreciation right which may be a Free-Standing SAR or a
Tandem SAR.

     “Stock Award” shall mean a Restricted Stock Award or a Restricted Stock Unit Award.

     “Subsidiary” shall mean any corporation, limited liability company, partnership, joint
venture or similar entity in which the Company owns, directly or indirectly, an equity interest
possessing more than 50% of the combined voting power of the total outstanding equity interests of
such entity.

     “Tandem SAR” shall mean an SAR which is granted in tandem with, or by reference to, an
option (including a Nonqualified Stock Option granted prior to the date of grant of the SAR), which
entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation of
all or a portion of such option, shares of Common Stock (which may be Restricted Stock) with an
aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the
date of exercise over the base price of such SAR, multiplied by the number of shares of Common
Stock subject to such option, or portion thereof, which is surrendered.

     “Tax Date” shall have the meaning set forth in Section 5.5.

     “Ten Percent Holder” shall have the meaning set forth in Section 2.1(a).

     1.3 Administration. This Plan shall be administered by the Committee. Any one or a
combination of the following awards may be made under this Plan to eligible persons: (i) options to
purchase shares of Common Stock in the form of Incentive Stock Options or Nonqualified Stock
Options (which may include Performance Options), (ii) SARs in the form of Tandem SARs or
Free-Standing SARs, (iii) Stock Awards in the form of Restricted Stock or Restricted Stock Units
and (iv) Performance Units. The Committee shall, subject to the terms of this Plan, select eligible
persons for participation in this Plan and determine the form, amount and timing of each award to
such persons and, if applicable, the number of shares of Common Stock, the number of SARs, the
number of Restricted Stock Units and the number of Performance Units subject to such an award, the
exercise price or base price associated with the award, the time and conditions of exercise or
settlement of the award and all other terms and conditions of the award, including, without
limitation, the form of the Agreement evidencing the award. The Committee may, in its sole
discretion and for any reason at any time, subject to the requirements of Section 162(m) of the
Code and regulations thereunder in the case of an award intended to be qualified performance-based
compensation, take action such that (i) any or all outstanding options and SARs shall become
exercisable in part or in full, (ii) all or a portion of the

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Restriction Period applicable to any outstanding Restricted Stock or Restricted Stock Units
shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding
Restricted Stock, Restricted Stock Units or Performance Units shall lapse and (iv) the Performance
Measures (if any) applicable to any outstanding award shall be deemed to be satisfied at the target
or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan
and the application thereof, establish rules and regulations it deems necessary or desirable for
the administration of this Plan and may impose, incidental to the grant of an award, conditions
with respect to the award, such as limiting competitive employment or other activities. All such
interpretations, rules, regulations and conditions shall be conclusive and binding on all parties.

     The Committee may delegate some or all of its power and authority hereunder to the Board or,
subject to applicable law, to the Chief Executive Officer or other executive officer of the Company
as the Committee deems appropriate; provided, however, that (i) the Committee may
not delegate its power and authority to the Board or the Chief Executive Officer or other executive
officer of the Company with regard to the grant of an award to any person who is a “covered
employee” within the meaning of Section 162(m) of the Code or who, in the Committee’s judgment, is
likely to be a covered employee at any time during the period an award hereunder to such employee
would be outstanding and (ii) the Committee may not delegate its power and authority to the Chief
Executive Officer or other executive officer of the Company with regard to the selection for
participation in this Plan of an officer, director or other person subject to Section 16 of the
Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer,
director or other person.

     No member of the Board or Committee, and neither the Chief Executive Officer nor any other
executive officer to whom the Committee delegates any of its power and authority hereunder, shall
be liable for any act, omission, interpretation, construction or determination made in connection
with this Plan in good faith, and the members of the Board and the Committee and the Chief
Executive Officer or other executive officer shall be entitled to indemnification and reimbursement
by the Company in respect of any claim, loss, damage or expense (including attorneys’ fees) arising
therefrom to the full extent permitted by law (except as otherwise may be provided in the Company’s
Certificate of Incorporation and/or By-laws) and under any directors’ and officers’ liability
insurance that may be in effect from time to time.

     1.4 Eligibility. Participants in this Plan shall consist of such officers, employees,
independent contractors and nonemployee directors, and persons expected to become officers,
employees, independent contractors and nonemployee directors, of the Company and its Subsidiaries
as the Committee in its sole discretion may select from time to time or as specified in the Plan of
Reorganization. The Committee’s selection of a person to participate in this Plan at any time
shall not require the Committee to select such person to participate in this Plan at any other
time. For purposes of this Plan, references to employment by the Company shall also mean
employment by a Subsidiary and any affiliate of the Company designated by the Committee;
provided, however, that an employee of an affiliate shall be designated by the
Committee as a recipient of an option only if the Shares qualify, with respect to such recipient,
as “service recipient stock” within the meaning set forth in Section 409A of the Code.

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     1.5 Shares Available. Subject to adjustment as provided in Section 5.7 and to all
other limits set forth in this Section 1.5, 5,555,556 shares of Common Stock shall be available for
all awards under this Plan, reduced by the sum of the aggregate number of shares of Common Stock
which become subject to outstanding options, outstanding Free-Standing SARs and outstanding Stock
Awards and delivered upon the settlement of Performance Units. To the extent that shares of Common
Stock subject to an outstanding option, SAR or Stock Award granted under the Plan are not issued or
delivered by reason of (i) the expiration, termination, cancellation or forfeiture of such award
(excluding shares subject to an option cancelled upon settlement in shares of a related tandem SAR
or shares subject to a tandem SAR cancelled upon exercise of a related option) or (ii) the
settlement of such award in cash, then such shares of Common Stock shall again be available under
this Plan.

     Shares of Common Stock to be delivered under this Plan shall be made available from authorized
and unissued shares of Common Stock, or authorized and issued shares of Common Stock reacquired and
held as treasury shares or otherwise or a combination thereof.

     To the extent necessary for an award to be qualified performance-based compensation under
Section 162(m) of the Code and the regulations thereunder (i) the maximum number of shares of
Common Stock with respect to which options or SARs or a combination thereof may be granted during
any fiscal year of the Company to any person shall be 2,000,000, subject to adjustment as provided
in Section 5.7; (ii) the maximum number of shares of Common Stock with respect to which Stock
Awards subject to Performance Measures may be granted during any fiscal year of the Company to any
person shall be 1,500,000, subject to adjustment as provided in Section 5.7, and (iii) the maximum
amount that may be payable with respect to Performance Units granted during any fiscal year of the
Company to any person shall be $15,000,000.

II STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

     2.1 Stock Options. The Committee may, in its discretion, grant options to purchase
shares of Common Stock to such eligible persons as may be selected by the Committee. Each option,
or portion thereof, that is not an Incentive Stock Option, shall be a Nonqualified Stock Option.
To the extent that the aggregate Fair Market Value (determined as of the date of grant) of shares
of Common Stock with respect to which options designated as Incentive Stock Options are exercisable
for the first time by a participant during any calendar year (under this Plan or any other plan of
the Company, or any parent or Subsidiary) exceeds the amount (currently $100,000) established by
the Code, such options shall constitute Nonqualified Stock Options.

     Options shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable:

     (a) Number of Shares and Purchase Price. The number of shares of Common Stock subject
to an option and the purchase price per share of Common Stock purchasable upon exercise of the
option shall be determined by the Committee; provided, however, that the purchase
price per share of Common Stock purchasable upon exercise of a Nonqualified Stock Option or an
Incentive Stock Option shall not be less than 100% of the Fair Market Value of a share of Common
Stock on the date of grant of such option; provided further, that if an Incentive

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Stock Option shall be granted to any person who, at the time such option is granted, owns
capital stock possessing more than 10 percent of the total combined voting power of all classes of
capital stock of the Company (or of any parent or Subsidiary) (a “Ten Percent Holder”), the
purchase price per share of Common Stock shall not be less than the price (currently 110% of Fair
Market Value) required by the Code in order to constitute an Incentive Stock Option.

     (b) Option Period and Exercisability. The period during which an option may be
exercised shall be determined by the Committee; provided, however, that no
Incentive Stock Option or Nonqualified Stock Option shall be exercised later than ten years after
its date of grant; provided further, that if an Incentive Stock Option shall be granted to
a Ten Percent Holder, such option shall not be exercised later than five years after its date of
grant. The Committee may, in its discretion, determine that an option is to be granted as a
Performance Option and may establish an applicable Performance Period and Performance Measures
which shall be satisfied or met as a condition to the grant of such option or to the exercisability
of all or a portion of such option. The Committee shall determine whether an option shall become
exercisable in cumulative or non-cumulative installments and in part or in full at any time. An
exercisable option, or portion thereof, may be exercised only with respect to whole shares of
Common Stock.

     (c) Method of Exercise. An option may be exercised (i) by giving written notice to
the Company specifying the number of whole shares of Common Stock to be purchased and accompanying
such notice with payment therefor in full (or arrangement made for such payment to the Company’s
satisfaction) in cash or by certified check, or to the extent permitted in an Award Agreement or
otherwise by the Committee, (A) by delivery (either actual delivery or by attestation procedures
established by the Company) of shares of Common Stock having a Fair Market Value, determined as of
the date of exercise, equal to the aggregate purchase price payable by reason of such exercise,
(B) authorizing the Company to withhold whole shares of Common Stock which would otherwise be
delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to
the amount necessary to satisfy such obligation, (C) in cash by a broker-dealer acceptable to the
Company to whom the optionee has submitted an irrevocable notice of exercise or (D) a combination
of (A), (B) and (C), (ii) if applicable, by surrendering to the Company any Tandem SARs which are
cancelled by reason of the exercise of the option and (iii) by executing such documents as the
Company may reasonably request. Any fraction of a share of Common Stock which would be required to
pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by
the optionee. No shares of Common Stock shall be issued and no certificate representing Common
Stock shall be delivered until the full purchase price therefor and any withholding taxes thereon,
as described in Section 5.5, have been paid (or arrangement made for such payment to the Company’s
satisfaction).

     2.2 Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to
such eligible persons as may be selected by the Committee. The Agreement relating to an SAR shall
specify whether the SAR is a Tandem SAR or a Free-Standing SAR.

     SARs shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem
advisable:

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     (a) Number of SARs and Base Price. The number of SARs subject to an award shall be
determined by the Committee. Any Tandem SAR related to an Incentive Stock Option shall be granted
at the same time that such Incentive Stock Option is granted. The base price of a Tandem SAR shall
be the purchase price per share of Common Stock of the related option. The base price of a
Free-Standing SAR shall be determined by the Committee; provided, however, that
such base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on
the date of grant of such SAR.

     (b) Exercise Period and Exercisability. The period for the exercise of an SAR shall
be determined by the Committee; provided, however, that no Tandem SAR shall be
exercised later than the expiration, cancellation, forfeiture or other termination of the related
option and no Free-Standing SAR shall be exercised later than ten years after its date of grant.
The Committee may, in its discretion, establish Performance Measures which shall be satisfied or
met as a condition to the grant of an SAR or to the exercisability of all or a portion of an SAR.
The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative
installments and in part or in full at any time. An exercisable SAR, or portion thereof, may be
exercised, in the case of a Tandem SAR, only with respect to whole shares of Common Stock and, in
the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an SAR is
exercised for shares of Restricted Stock, a certificate or certificates representing such
Restricted Stock shall be issued in accordance with Section 3.2(c), or such shares shall be
transferred to the holder in book entry form with restrictions on the Shares duly noted, and the
holder of such Restricted Stock shall have such rights of a stockholder of the Company as
determined pursuant to Section 3.2(d). Prior to the exercise of an SAR, the holder of such SAR
shall have no rights as a stockholder of the Company with respect to the shares of Common Stock
subject to such SAR.

     (c) Method of Exercise. A Tandem SAR may be exercised (i) by giving written notice to
the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to
the Company any options which are cancelled by reason of the exercise of the Tandem SAR and
(iii) by executing such documents as the Company may reasonably request. A Free-Standing SAR may
be exercised (A) by giving written notice to the Company specifying the whole number of SARs which
are being exercised and (B) by executing such documents as the Company may reasonably request.

     2.3 Termination of Employment or Service. All of the terms relating to the exercise,
cancellation or other disposition of an option or SAR upon a termination of employment or service
with the Company of the holder of such option or SAR, as the case may be, whether by reason of
Disability, retirement, death or any other reason, shall be determined by the Committee.

     2.4 No Repricing. Notwithstanding anything in this Plan to the contrary and subject
to Section 5.7, without the approval of the stockholders of the Company the Committee will not
amend or replace any previously granted option or SAR in a transaction that constitutes a
“repricing,” as such term is used in Section 303A.08 of the Listed Company Manual of the New York
Stock Exchange.

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III STOCK AWARDS

     3.1 Stock Awards. The Committee may, in its discretion, grant Stock Awards to such
eligible persons as may be selected by the Committee. The Agreement relating to a Stock Award
shall specify whether the Stock Award is a Restricted Stock Award or a Restricted Stock Unit Award.

     3.2 Terms of Restricted Stock Awards. Restricted Stock Awards shall be subject to the
following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as the Committee shall deem advisable.

     (a) Number of Shares and Other Terms. The number of shares of Common Stock subject to
a Restricted Stock Award and the Restriction Period, Performance Period (if any) and Performance
Measures (if any) applicable to a Restricted Stock Award shall be determined by the Committee.

     (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Award shall
provide, in the manner determined by the Committee, in its discretion, and subject to the
provisions of this Plan, for the vesting of the shares of Common Stock subject to such award (i) if
the holder of such award remains continuously in the employment of the Company during the specified
Restriction Period and (ii) if specified Performance Measures (if any) are satisfied or met during
a specified Performance Period, and for the forfeiture of the shares of Common Stock subject to
such award (x) if the holder of such award does not remain continuously in the employment of the
Company during the specified Restriction Period or (y) if specified Performance Measures (if any)
are not satisfied or met during a specified Performance Period. The Committee may, in its sole
discretion, grant Restricted Stock Awards pursuant to the Plan that are not subject to any vesting
or performance conditions.

     (c) Stock Issuance. During the Restriction Period, the shares of Restricted Stock
shall be held by a custodian in book entry form with restrictions on such shares duly noted or,
alternatively, a certificate or certificates representing a Restricted Stock Award shall be
registered in the holder’s name and may bear a legend, in addition to any legend which may be
required pursuant to Section 5.6, indicating that the ownership of the shares of Common Stock
represented by such certificate is subject to the restrictions, terms and conditions of this Plan
and the Agreement relating to the Restricted Stock Award. All such certificates shall be deposited
with the Company, together with stock powers or other instruments of assignment (including a power
of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or
appropriate, which would permit transfer to the Company of all or a portion of the shares of Common
Stock subject to the Restricted Stock Award in the event such award is forfeited in whole or in
part. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of
applicable Performance Measures), subject to the Company’s right to require payment of any taxes in
accordance with Section 5.5, the restrictions shall be removed from the requisite number of any
shares of Common Stock that are held in book entry form, and all certificates evidencing ownership
of the requisite number of shares of Common Stock shall be delivered to the holder of such award.

     (d) Rights with Respect to Restricted Stock Awards. Unless otherwise set forth in the
Agreement relating to a Restricted Stock Award, and subject to the terms and conditions of a
Restricted Stock Award, the holder of such award shall have all rights as a stockholder of the

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Company, including, but not limited to, voting rights, the right to receive dividends and the
right to participate in any capital adjustment applicable to all holders of Common Stock;
provided, however, that a distribution with respect to shares of Common Stock,
other than a regular cash dividend, shall be deposited with the Company and shall be subject to the
same restrictions as the shares of Common Stock with respect to which such distribution was made.

     3.3 Terms of Restricted Stock Unit Awards. Restricted Stock Unit Awards shall be
subject to the following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

     (a) Number of Shares and Other Terms. The number of shares of Common Stock subject to
a Restricted Stock Unit Award and the Restriction Period, Performance Period (if any) and
Performance Measures (if any) applicable to a Restricted Stock Unit Award shall be determined by
the Committee.

     (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Unit Award
shall provide, in the manner determined by the Committee, in its discretion, and subject to the
provisions of this Plan, for the vesting of such Restricted Stock Unit Award (i) if the holder of
such award remains continuously in the employment of the Company during the specified Restriction
Period and (ii) if specified Performance Measures (if any) are satisfied or met during a specified
Performance Period, and for the forfeiture of the shares of Common Stock subject to such award
(x) if the holder of such award does not remain continuously in the employment of the Company
during the specified Restriction Period or (y) if specified Performance Measures (if any) are not
satisfied or met during a specified Performance Period. The Committee may, in its sole discretion,
grant Restricted Stock Unit Awards under the Plan that are not subject to any vesting or
performance conditions.

     (c) Settlement of Vested Restricted Stock Unit Awards. The Agreement relating to a
Restricted Stock Unit Award shall specify (i) whether such award may be settled in shares of Common
Stock or cash or a combination thereof and (ii) whether the holder thereof shall be entitled to
receive, on a current or deferred basis, dividend equivalents, and, if determined by the Committee,
interest on, or the deemed reinvestment of, any deferred dividend equivalents, with respect to the
number of shares of Common Stock subject to such award. Prior to the settlement of a Restricted
Stock Unit Award, the holder of such award shall have no rights as a stockholder of the Company
with respect to the shares of Common Stock subject to such award.

     3.4 Termination of Employment or Service. All of the terms relating to the
satisfaction of Performance Measures and the termination of the Restriction Period or Performance
Period relating to a Stock Award, or any forfeiture and cancellation of such award upon a
termination of employment or service with the Company of the holder of such award, whether by
reason of Disability, retirement, death or any other reason, shall be determined by the Committee.

IV PERFORMANCE UNIT AWARDS

     4.1 Performance Unit Awards. The Committee may, in its discretion, grant Performance
Unit Awards to such eligible persons as may be selected by the Committee.

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     4.2 Terms of Performance Unit Awards. Performance Unit Awards shall be subject to the
following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as the Committee shall deem advisable.

     (a) Number of Performance Units and Performance Measures. The number of Performance
Units subject to a Performance Unit Award and the Performance Measures and Performance Period
applicable to a Performance Unit Award shall be determined by the Committee.

     (b) Vesting and Forfeiture. The Agreement relating to a Performance Unit Award shall
provide, in the manner determined by the Committee, in its discretion, and subject to the
provisions of this Plan, for the vesting of such Performance Unit Award if the specified
Performance Measures are satisfied or met during the specified Performance Period and for the
forfeiture of such award if the specified Performance Measures are not satisfied or met during the
specified Performance Period.

     (c) Settlement of Vested Performance Unit Awards. The Agreement relating to a
Performance Unit Award shall specify whether such award may be settled in shares of Common Stock
(including shares of Restricted Stock) or cash or a combination thereof. If a Performance Unit
Award is settled in shares of Restricted Stock, such shares of Restricted Stock shall be issued to
the holder in book entry form or a certificate or certificates representing such Restricted Stock
shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall
have such rights as a stockholder of the Company as determined pursuant to Section 3.2(d). Prior to
the settlement of a Performance Unit Award in shares of Common Stock, including Restricted Stock,
the holder of such award shall have no rights as a stockholder of the Company.

     4.3 Termination of Employment or Service. All of the terms relating to the
satisfaction of Performance Measures and the termination of the Performance Period relating to a
Performance Unit Award, or any forfeiture and cancellation of such award upon a termination of
employment or service with the Company of the holder of such award, whether by reason of
Disability, retirement, death or any other reason, shall be determined by the Committee.

V GENERAL

     5.1 Effective Date and Term of Plan. This Plan shall be submitted to the United
States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) for approval
in connection with the Plan of Reorganization and, if approved, shall become effective as of the
effective date of the Plan of Reorganization. This Plan shall terminate as of the tenth
anniversary of its effective date, unless terminated earlier by the Board. Termination of this Plan
shall not affect the terms or conditions of any award granted prior to termination.

     Awards hereunder may be made at any time prior to the termination of this Plan, provided that
no award may be made later than ten years after the effective date of this Plan. In the event that
this Plan is not approved by the Bankruptcy Court, this Plan and any awards hereunder shall be void
and of no force or effect.

11

 

     5.2 Amendments. The Board may amend this Plan as it shall deem advisable, subject to
any requirement of stockholder approval required by applicable law, rule or regulation, including
Section 162(m) of the Code and any rule of The New York Stock Exchange, or, if the Common Stock is
not listed on The New York Stock Exchange, any rule of the principal national stock exchange on
which the Common Stock is then traded; provided, however, that no amendment may
impair the rights of a holder of an outstanding award without the consent of such holder.

     5.3 Agreement. Each award under this Plan shall be evidenced by an Agreement setting
forth the terms and conditions applicable to such award. No award shall be valid until approved by
the Company. Such award shall be effective as of the effective date set forth in the Agreement.

     5.4 Non-Transferability. No award shall be transferable other than by will, the laws
of descent and distribution or pursuant to beneficiary designation procedures approved by the
Company or, to the extent expressly permitted in the Agreement relating to such award, to the
holder’s family members, a trust or entity established by the holder for estate planning purposes
or a charitable organization designated by the holder. Except to the extent permitted by the
foregoing sentence or the Agreement relating to an award, each award may be exercised or settled
during the holder’s lifetime only by the holder or the holder’s legal representative or similar
person. Except as permitted by the second preceding sentence, no award may be sold, transferred,
assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law
or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so
sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award
and all rights thereunder shall immediately become null and void.

     5.5 Tax Withholding. The Company shall have the right to require, prior to the
issuance or delivery of any shares of Common Stock or the payment of any cash pursuant to an award
made hereunder, payment by the holder of such award of any federal, state, local or other taxes
which may be required to be withheld or paid in connection with such award. An Agreement may
provide that (i) the Company shall withhold whole shares of Common Stock which would otherwise be
delivered to a holder, having an aggregate Fair Market Value determined as of the date the
obligation to withhold or pay taxes arises in connection with an award (the “Tax Date”), or
withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to
satisfy any such obligation or (ii) the holder may satisfy any such obligation by any of the
following means: (A) a cash payment to the Company, (B) delivery (either actual delivery or by
attestation procedures established by the Company) to the Company of previously owned whole shares
of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal to the
amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole
shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value,
determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a
holder, equal to the amount necessary to satisfy any such obligation, (D) in the case of the
exercise of an option, a cash payment by a broker-dealer acceptable to the Company to whom the
optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and
(C), in each case to the extent set forth in the Agreement relating to the award. Shares of Common
Stock to be delivered or withheld may not have an aggregate Fair Market Value in excess of the
amount determined by

12

 

applying the minimum statutory withholding rate. Any fraction of a share of Common Stock
which would be required to satisfy such an obligation shall be disregarded and the remaining amount
due shall be paid in cash by the holder.

     5.6 Restrictions on Shares. Each award made hereunder shall be subject to the
requirement that if at any time the Company determines that the listing, registration or
qualification of the shares of Common Stock subject to such award upon any securities exchange or
under any law, or the consent or approval of any governmental body, or the taking of any other
action is necessary or desirable as a condition of, or in connection with, the delivery of shares
thereunder, such shares shall not be delivered unless such listing, registration, qualification,
consent, approval or other action shall have been effected or obtained, free of any conditions not
acceptable to the Company. The Company may require that certificates evidencing shares of Common
Stock delivered pursuant to any award made hereunder bear a legend indicating that the sale,
transfer or other disposition thereof by the holder is prohibited except in compliance with the
Securities Act of 1933, as amended, and the rules and regulations thereunder.

     5.7 Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities available under this Plan,
the number and class of securities subject to each outstanding option and the purchase price per
security, the terms of each outstanding SAR, the terms of each outstanding Restricted Stock Award
and Restricted Stock Unit Award, including the number and class of securities subject thereto, the
terms of each outstanding Performance Unit, the maximum number of securities with respect to which
options or SARs may be granted during any fiscal year of the Company to any one grantee and the
maximum number of shares of Common Stock that may be awarded during any fiscal year of the Company
to any one grantee pursuant to a Stock Award that is subject to Performance Measures shall be
equitably adjusted by the Committee, such adjustments to be made in the case of outstanding options
and SARs in accordance with Section 409A of the Code. The decision of the Committee regarding any
such adjustment shall be final, binding and conclusive. If any such adjustment would result in a
fractional security being (a) available under this Plan, such fractional security shall be
disregarded, or (b) subject to an award under this Plan, the Company shall pay the holder of such
award, in connection with the first vesting, exercise or settlement of such award, in whole or in
part, occurring after such adjustment, an amount in cash determined by multiplying (i) the fraction
of such security (rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the Fair
Market Value on the vesting, exercise or settlement date over (B) the exercise or base price, if
any, of such award.

     5.8 Change in Control.

     (a) Except as provided in the applicable Agreement, in the event of a Change in Control, the
Board (as constituted prior to such Change in Control) may, in its discretion:

     (1) provide that (A) some or all outstanding options and SARs shall immediately become
exercisable in full or in part, (B) the Restriction Period applicable to some or all
outstanding Restricted Stock Awards and Restricted Stock Unit Awards shall

13

 

lapse in full or in part, (C) the Performance Period applicable to some or all
outstanding awards shall lapse in full or in part, and (D) the Performance Measures
applicable to some or all outstanding awards shall be deemed to be satisfied at the target
or any other level;

     (2) require that shares of stock of the corporation resulting from such Change in
Control, or a parent corporation thereof, be substituted for some or all of the shares of
Common Stock subject to an outstanding award, with an appropriate and equitable adjustment
to such award as shall be determined by the Board in accordance with Section 5.7; and/or

     (3) require outstanding awards, in whole or in part, to be surrendered to the Company
by the holder, and to be immediately cancelled by the Company, and to provide for the holder
to receive (A) a cash payment in an amount equal to (i) in the case of an option or an SAR,
the number of shares of Common Stock then subject to the portion of such option or SAR
surrendered multiplied by the excess, if any, of the Fair Market Value of a share of Common
Stock as of the date of the Change in Control, over the purchase price or base price per
share of Common Stock subject to such option or SAR, (ii) in the case of a Stock Award, the
number of shares of Common Stock then subject to the portion of such award surrendered
multiplied by the Fair Market Value of a share of Common Stock as of the date of the Change
in Control, and (iii) in the case of a Performance Unit Award, the value of the Performance
Units then subject to the portion of such award surrendered; (B) shares of capital stock of
the corporation resulting from such Change in Control, or a parent corporation thereof,
having a fair market value not less than the amount determined under clause (A) above; or
(C) a combination of the payment of cash pursuant to clause (A) above and the issuance of shares pursuant to clause (B) above.

(b) For purposes of this Plan, a “Change in Control” shall be deemed to have occurred if,
after the effective date of the Plan of Reorganization, there shall have occurred any of the
following:

     (i) Any “person,” as such term is used in Section 13(d) and 14(d) of the
Exchange Act (other than the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or any company owned,
directly or indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock of the Company), acquires voting securities
of the Company and immediately thereafter is a “50% Beneficial Owner.” For purposes
of this provision, a “50% Beneficial Owner” shall mean a person who is the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the combined
voting power of the Company’s then-outstanding voting securities; provided that the
term “50% Beneficial Owner” shall not include any person who, at all times following
such an acquisition of securities, remains eligible to file a Schedule 13G pursuant
to Rule 13d-1(b) under the Exchange Act, or remains exempt from filing a
Schedule 13D under Section

14

 

13(d)(6)(b) of the Exchange Act, with respect to all classes of Company voting
securities;

     (ii) During any one-year period commencing on or after the Effective Date,
individuals who at the beginning of such period constitute the Board, and any new
director (other than a director designated by a person (as defined above) who has
entered into an agreement with the Company to effect a transaction described in
subsections (i), (iii) or (iv) of this definition) whose election by the Board or
nomination for election by the Company’s shareholders was approved by a vote of at
least a majority of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
thereof;

     (iii) The consummation of a merger, consolidation, recapitalization, or
reorganization of the Company, or a reverse stock split of any class of voting
securities of the Company, other than any such transaction which would result in at
least 50% of the combined voting power of the voting securities of the Company or
the surviving entity outstanding immediately after such transaction being
beneficially owned by persons who together beneficially owned at least 50% of the
combined voting power of the voting securities of the Company outstanding
immediately prior to such transaction, with the relative voting power of each such
continuing holder compared to the voting power of each other continuing holder not
substantially altered as a result of the transaction; provided that, for purposes of
this paragraph (iii), such continuity of ownership (and preservation of relative
voting power) shall be deemed to be satisfied if the failure to meet such 50%
threshold (or to substantially preserve such relative voting power) is due solely to
the acquisition of voting securities by an employee benefit plan of the Company,
such surviving entity or a subsidiary thereof;

     (iv) The consummation of a plan of complete liquidation of the Company or the
sale or disposition by the Company of all or substantially all of the Company’s
assets (or any transaction having a similar effect); and

     (v) Any other event which the Board determines shall constitute a Change in
Control for purposes of this Plan.

     5.9 Deferrals. The Committee may determine that the delivery of shares of Common
Stock or the payment of cash, or a combination thereof, upon the exercise or settlement of all or a
portion of any award (other than awards of Incentive Stock Options, Nonqualified Stock Options and
SARs) made hereunder shall be deferred, or the Committee may, in its sole discretion, approve
deferral elections made by holders of awards. Deferrals shall be for such periods and upon such
terms as the Committee may determine in its sole discretion, subject to the requirements of
Section 409A of the Code.

     5.10 No Right of Participation, Employment or Service. Unless otherwise set forth in
an employment agreement, no person shall have any right to participate in this Plan. Neither

15

 

this Plan nor any award made hereunder shall confer upon any person any right to continued
employment by or service with the Company, any Subsidiary or any affiliate of the Company or affect
in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate
the employment of any person at any time without liability hereunder.

     5.11 Rights as Stockholder. No person shall have any right as a stockholder of the
Company with respect to any shares of Common Stock or other equity security of the Company which is
subject to an award hereunder unless and until such person becomes a stockholder of record with
respect to such shares of Common Stock or equity security.

     5.12 Designation of Beneficiary. A holder of an award may file with the Committee a
written designation of one or more persons as such holder’s beneficiary or beneficiaries (both
primary and contingent) in the event of the holder’s death or incapacity. To the extent an
outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall
be entitled to exercise such option or SAR pursuant to procedures prescribed by the Committee.

     Each beneficiary designation shall become effective only when filed in writing with the
Committee during the holder’s lifetime on a form prescribed by the Committee. The spouse of a
married holder domiciled in a community property jurisdiction shall join in any designation of a
beneficiary other than such spouse. The filing with the Committee of a new beneficiary designation
shall cancel all previously filed beneficiary designations.

     If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder
predecease the holder, then each outstanding option and SAR hereunder held by such holder, to the
extent exercisable, may be exercised by such holder’s executor, administrator, legal representative
or similar person.

     5.13 Governing Law. This Plan, each award hereunder and the related Agreement, and
all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by
the Code or the laws of the United States, shall be governed by the laws of the State of Delaware
and construed in accordance therewith without giving effect to principles of conflicts of laws.

     5.14 Foreign Employees. Without amending this Plan, the Committee may grant
awards to eligible persons who are foreign nationals on such terms and conditions different from
those specified in this Plan as may in the judgment of the Committee be necessary or desirable to
foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes
the Committee may make such modifications, amendments, procedures, subplans and the like as may be
necessary or advisable to comply with provisions of laws in other countries or jurisdictions in
which the Company or its Subsidiaries operates or has employees.

16exv10w5

Exhibit 10.5

AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     WHEREAS, Dex One Corporation, formerly known as R.H. Donnelley Corporation (the
“Company”), and David C. Swanson (the “Executive”) have heretofore entered into an
Amended and Restated Employment Agreement, effective as of December 31, 2008, as thereafter amended
(the “Agreement”); and

     WHEREAS, pursuant to the terms of the Joint Plan of Reorganization for R.H. Donnelley
Corporation and Its Subsidiaries, dated October 21, 2009 (as the same may be amended from time to
time, the “Plan”), filed by the Company and its subsidiaries with the United States
Bankruptcy Court for the District of Delaware, Case No. 09-11833 (KG), and the terms of the
Disclosure Statement thereunder, the Executive and the Company desire to amend the Agreement to
provide that the implementation of the restructuring of the Company and its subsidiaries in
accordance with the Plan shall not alone constitute Good Reason to terminate employment.

     NOW, THEREFORE, the Company and the Executive hereby amend Section 9(d) of the Agreement by
mutual assent, effective upon and subject to the effective date of the Plan, by inserting the
following new proviso at the end thereof:

; provided, however, that the implementation of the
restructuring of the Company and its subsidiaries pursuant to the terms of
the Joint Plan of Reorganization for R.H. Donnelley Corporation and Its
Subsidiaries, dated October 21, 2009 (as the same may be amended from time
to time, the “Plan”), filed by the Company and its subsidiaries with
the United States Bankruptcy Court for the District of Delaware, Case No.
09-11833 (KG), and the terms of the Disclosure Statement thereunder, shall
not alone constitute Good Reason for purposes of any of clauses (i) through
(v) of this Section 9(d).

 

 

     IN WITNESS WHEREOF, the parties have duly executed this Amendment to the Agreement as of
January 29, 2010.

	 	 	 	 	 
	 	DEX ONE CORPORATION

 	 
	 	By:  	/s/ Mark W. Hianik
 	 
	 	 	Name:  	Mark W. Hianik 	 
	 	 	Title:  	Senior Vice President, General Counsel and
Corporate Secretary 	 
	 
	 	 	 
	 	 	                                              /s/ David C. Swanson
 	 
	 	 	David C. Swanson

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