Document:

exv10w69

EXHIBIT 10.69

VANGUARD HEALTH SYSTEMS, INC.

AMENDED AND RESTATED

2009 LONG TERM INCENTIVE PLAN

Section 1. Purpose

     The purpose of this Amended and Restated 2009 Long Term Incentive Plan is to create long term
value for the Company by securing the continuity and retention of its Officers by enabling its
Officers to earn additional cash incentive compensation payable on a long term basis if a specified
Company Performance Goal or Goals are met for a current period and the Participant remains in the
employ of the Company for a specified period subsequent to the Year in which the Goal is achieved.

Section 2. Definitions

     “Account” shall have the meaning set forth in Section 5.2.

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

     “Business Unit” shall mean any existing or future facility, region, division, group,
subsidiary or other unit within the Company.

     “Cause” for termination of the Participant’s employment, after any Change in Control,
shall mean (i) the conviction of the Participant, by a court of competent jurisdiction and
following the exhaustion of all possible appeals, of a criminal act classified as a felony or
involving moral turpitude, (ii) the willful and continued failure by the Participant to
substantially perform the Participant’s duties with the Company or its subsidiary (other than any
such failure resulting from the Participant’s incapacity due to physical or mental illness or any
such actual or anticipated failure after the issuance by the Participant to his or her employer of
a notice of termination of employment for Good Reason) after a written demand for substantial
performance is delivered to the Participant by the Company or its subsidiary, which demand
specifically identifies the manner in which the employer believes that the Participant has not
substantially performed the Participant’s duties, or (iii) the willful engaging by the Participant
in conduct which is demonstrably and materially injurious to the Company or its subsidiaries,
monetarily or otherwise. For purposes of clauses (ii) and (iii) of this definition, no act, or
failure to act, on the Participant’s part shall be deemed “willful” unless done, or omitted to be
done, by the Participant not in good faith and without reasonable belief that the Participant’s
act, or failure to act, was in the best interest of the Company or its subsidiary.

     “Change in Control” shall mean the occurrence of any of the following events:

(i) any person or group, other than the Permitted Holders, is or becomes the
“beneficial owner” (as defined in rules 13d-3 and 13d-5 under the Act) directly or

 

 

indirectly of more than 50% of the total voting power of the voting stock of the
Company, including by way of merger, consolidation or otherwise;

(ii) a reorganization, recapitalization, merger or consolidation (a “Corporate
Transaction”) involving the Company, unless securities representing 50% or more of the
combined voting power of the then outstanding voting securities entitled to vote generally
in the election of directors of the Company or the corporation resulting from such Corporate
Transaction (or the parent of such corporation) are held subsequent to such transaction by
the person or persons who were the “beneficial owners” of the outstanding voting securities
entitled to vote generally in the election of directors of the Company immediately prior to
such Corporate Transaction, in substantially the same proportions as their ownership
immediately prior to such Corporate Transaction;

(iii) the sale or disposition, in one or a series of related transactions, of all or
substantially all, of the assets of the Company to any “person” or “group” (as such terms
are defined in Sections 13(d)(3) or 14(d)(2) of the Act) other than the Permitted Holders;
or

(iv) during any period of 12 months, individuals who at the beginning of such period
constituted the Company’s Board of Directors (the “Board), together with any new directors
whose election by the Board or whose nomination for election by the stockholders of the
Company was approved by a vote of a majority of the directors of the Company (then still in
office) who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a
majority of the Board, then in office;

The term “Permitted Holders” as used above in the definition of Change of Control shall
mean any of (i) Blackstone or its affiliates, (ii) an employee benefit plan (or trust forming a
part thereof) maintained by (A) the Company or (B) any corporation or other person or entity of
which a majority of its voting power of its voting equity securities or equity interest is owned,
directly or indirectly, by the Company, and (iii) VHS Holdings LLC, a Delaware limited liability
company, or any of its subsidiaries. The term “Blackstone” as used above in the definition
of Change of Control shall mean each of of Blackstone FCH Capital Partners IV L.P., Blackstone
Health Commitment Partners L.P., Blackstone Capital Partners IV-A L.P., Blackstone Family
Investment Partnership IV-A L.P., Blackstone Health Commitment Partners-A L.P., Blackstone FCH
Capital Partners IV-B L.P., and Blackstone FCH Capital Partners IV-A L.P., and their respective
Affiliates.”

     “Code” shall mean the Internal Revenue Code of 1986, as amended, and any successor
statute and the regulations promulgated thereunder, as it or they may be amended from time to time.

     “Code Section 162(m) Award” shall mean a Retention Award intended to satisfy the
requirements of Code Section 162(m).

2

 

     “Committee” shall mean either (i) the Compensation Committee of the Board or (ii)
prior to establishment of the Compensation Committee of the Board, the Board.

     “Company” shall mean Vanguard Health Systems, Inc., a Delaware corporation.

     “Covered Employee” shall mean a Covered Employee within the meaning of Code Section
162(m)(3), as interpreted by IRS Notice 2007-49, or a person designated as a Covered Employee by
the Committee.

     “Exchange Act” shall have the meaning set forth in Section 4.1.

     “Good Reason” shall mean that at least one of the following shall have occurred:

	 	(a)	 	there shall have been a material diminution in the
Participant’s base compensation, except for across-the-board salary
reductions similarly affecting all senior executives of the Company
and all senior executives of any person in control of the Company;
	 
	 	(b)	 	there shall have been a material diminution in the
Participant’s authority, duties or responsibilities;
	 
	 	(c)	 	there shall have been a material diminution in the
authority, duties or responsibilities of the supervisor to whom the
Participant is required to report, including a requirement that the
Participant’s supervisor report to a corporate officer or employee
instead of reporting directly to the Board of Directors of the
Company;
	 
	 	(d)	 	there shall have been a material diminution in the
budget over which the Participant retains authority;
	 
	 	(e)	 	there shall have been a material change in the
geographic location at which the Participant must perform services,
except for required travel on the Company’s business to an extent
substantially consistent with his business travel obligations prior
to the Change in Control; or
	 
	 	(f)	 	there shall have been any other action or inaction
that constitutes a material breach by the Company of the terms of
any Employment Agreement between the Company and any Participant or
any Severance Protection Agreement between the Participant and the
Company.

     “Officer” shall mean any officer of the Company.

     “Participant” shall mean any Officer to whom a Retention Award pursuant to the Plan
for any Year may be made.

3

 

     “Payment Date or Payment Dates” shall mean the date or dates on which earned Retention
Awards for a Year (or other measuring period) are to be paid to Participants, in whole or in part.

     “Performance Criterion” and “Performance Criteria” shall mean any one or more
of the following performance measures, taken alone or in conjunction with each other, each of which
may be adjusted by the Committee to exclude the before-tax or after-tax effects of any significant
acquisitions or dispositions not included in the calculations made in connection with setting the
Performance Criterion or Performance Criteria for the related Retention Award:

     (1)(A) Basic or diluted earnings per share of common stock, which may be calculated (i)
as income calculated in accordance with Section clause (D) below, divided by (x) the
weighted average number of shares, in the case of basic earnings per share, and (y) the
weighted average number of shares and share equivalents of common stock, in the case of
diluted earnings per share, or (ii) using such other method as may be specified by the
Committee;

          (B) Cash flow, which may be calculated or measured in any manner specified by the
Committee;

          (C) Economic value added, which is after-tax operating profit less the annual total
cost of capital;

          (D) Income, which may include, without limitation, net income and operating income and
may be calculated or measured (i) before or after income taxes, including or excluding
interest, depreciation and amortization, non-cash stock compensation, minority interests,
extraordinary items and other material non-recurring expenses and restructuring and
impairment charges, discontinued operations, the cumulative effect of changes in accounting
policies and the effects of any tax law changes; or (ii) using such other method as may be
specified by the Committee;

          (E) Quality of service and/or patient care which may be measured by (i) the extent to
which the Company achieves pre-set quality objectives including, without limitation, patient
satisfaction objectives, or (ii) such other method as may be specified by the Committee;

          (F) Return measures (including, but not limited to, return on assets, capital, equity,
or sales), which may be calculated or measured in any manner specified by the Committee;

          (G) EBITDA or adjusted EBITDA; or

          (H) The price of the Company’s common or preferred stock (including, but not limited
to, growth measures and total shareholder return), which may be calculated or measured in
any manner specified by the Committee.

The foregoing criteria may relate to the Company, one or more of its Business Units, or any
combination thereof, and may be applied on an absolute basis and/or be relative to

4

 

one or more peer group companies or indices, or any combination thereof, all as the
Committee shall determine. In addition, to the degree consistent with Section 162(m) of the
Code (or any successor section thereto) with respect to Code Section 162(m) Awards, the
performance goals may be calculated without regard to extraordinary items.

     (2) Except for Code Section 162(m) Awards, any other criteria related to performance,
including individual performance or any other category of performance selected by the
Committee.

     “Performance Goals” shall mean the performance objectives with respect to one
Performance Criterion or two or more Performance Criteria established by the Committee for the
Company, a Business Unit or an individual for the purpose of determining whether, and the extent to
which, payments will be made for that Year or other measurement period with respect to a Retention
Award under the Plan.

     “the Plan” or “this Plan” shall mean this Amended and Restated Vanguard Health
Systems, Inc. 2009 Long Term Incentive Plan.

     “Retention Amount” shall mean the aggregate amount, if any, credited to a
Participant’s Account in respect of each Retention Award earned by a Participant.

     “Retention Award” shall mean a contractual right, subject to the terms and conditions
of the Plan, to receive a cash incentive award earned under the Plan, which award may be based on
(1) the change (measured as a percentage or an amount) in or of any one Performance Criterion or
two or more Performance Criteria from one measurement period to another, (2) the difference
(measured as a percentage or an amount) between (A) a specified target or budget amount of any one
Performance Criterion or two or more Performance Criteria and (B) the actual amount of that
Performance Criterion or two or more Performance Criteria, during any measurement period, (3) the
extent to which a specified target or budget amount for any one Performance Criterion or two or
more Performance Criteria is met or exceeded during any measurement period, or (4) any other award,
including a discretionary award, that may be paid from time to time under the Plan.

     “Retention Award Schedule” shall mean the Retention Award Schedule established
pursuant to Section 5.1.

     “Target Award” shall mean the amount, which may be expressed as a dollar amount or as
a percentage of a Participant’s salary, payable to a Participant when actual performance with
respect to any one Performance Criterion or any two or more Performance Criteria equals the
Performance Goals for that Performance Criterion or those Performance Criteria established by the
Committee.

     “Year” shall mean the Company’s fiscal year.

Section 3. Eligibility and Participation

5

 

          Participants in the Plan shall be those Officers selected by the Committee to participate in
the Plan. Any Officer shall be eligible to participate in the Plan. No Officer shall have a right
to be selected to participate in the Plan, or, having once been selected, to be selected again. The
selection of an Officer as a Participant shall neither entitle such Officer to nor disqualify such
Officer from participation in any other Company benefit or incentive plan or award.

Section 4. Plan Administration

     4.1 Generally. The Plan shall be administered by the Committee, which will consist of
two or more persons (1) who (after the Company is subject to the provisions of Section 16 of the
Securities Exchange Act of 1934 (the “Exchange Act”)) satisfy the requirement of a
“nonemployee director” for purposes of Rule 16b-3 under the Exchange Act, and (2) who (after the
Company is subject to the deduction limit under Code Section 162(m), after giving effect to Treas.
Reg. Section 1.162-27(f)) satisfy the requirements of an “outside director” for purposes of Code
Section 162(m). The Committee’s determinations under the Plan need not be uniform and may be made
by it selectively among persons who receive or are eligible to receive Retention Awards under the
Plan, whether or not any Retention Awards are the same or such persons are similarly situated.
Without limiting the generality of the foregoing, the Committee will be entitled, among other
things, to make non-uniform and selective determinations and to establish non-uniform and selective
Performance Criterion, Performance Criteria, Performance Goals, the weightings thereof, and Target
Awards. Whenever the Plan refers to a determination being made by the Committee, it shall be deemed
to mean a determination by the Committee in its sole discretion. Without limiting the generality of
the foregoing, the Committee may establish a Target Award for any Participant based on any one
Performance Criterion or any two or more Performance Criteria.

     4.2. Compliance with Section 162(m)(4) of the Code. It is the intent of the Company
that this Plan and Code Section 162(m) Awards hereunder satisfy, and be interpreted in a manner
that satisfy, in the case of Participants who are or may be Covered Employees, the applicable
requirements of Code Section 162(m), including the administration requirement of Code Section
162(m)(4)(C), so that the Company’s tax deduction for remuneration in respect of Code Section
162(m) Awards for services performed by such Covered Employees is not disallowed in whole or in
part by the operation of such Code section. If any provision of this Plan would otherwise frustrate
or conflict with the intent expressed in this Section, that provision, to the extent possible,
shall be interpreted and deemed amended so as to avoid such conflict. To the extent of any
remaining irreconcilable conflict with such intent, such provision shall be deemed void as
applicable to Covered Employees with respect to whom such conflict exists. Nothing herein shall be
interpreted so as to preclude a Participant who is or may be a Covered Employee from receiving a
Retention Award that is not a Code Section 162(m) Award.

     4.3. Committee Discretion. The Committee shall have the discretion, subject to the
limitations described herein, including in Section 6 below relating to Code 162(m) Awards, to,
among other actions, (1) determine the Plan Participants; (2) determine who will be treated as a
Covered Employee and designate whether an Award will be a Code Section 162(m) Award; (3)

6

 

determine the measurement period; (4) determine Performance Criterion, Performance Criteria,
Performance Goals and Target Awards for each Year or other measurement period; (5) determine how
Performance Criterion or Performance Criteria will be calculated and/or adjusted; (6) establish a
Retention Award Schedule; (7) establish performance thresholds for the payment of any Retention
Awards; (8) determine whether and to what extent the Performance Goals have been met or exceeded;
(9) pay discretionary Retention Awards, including awards from an exceptional performance fund, as
may be appropriate in order to assure the proper motivation and retention of personnel and
attainment of business goals; (10) make adjustments to Performance Goals and thresholds; (11) make
adjustments to any Payment Date or Dates earlier set for any Retention Awards and (12) determine
the total amount of funds available for payment of Retention Awards with respect to each Year or
other measurement period.

     4.4 Plan Interpretations, etc. Subject to the provisions of the Plan, the Committee
shall be authorized to interpret the Plan, make, amend and rescind such rules as it deems necessary
for the proper administration of the Plan, make all other determinations necessary or advisable for
the administration of the Plan and correct any defect or supply any omission or reconcile any
inconsistency in the Plan in the manner and to the extent the Committee deems desirable to carry
the Plan into effect. Any action taken or determination made by the Committee shall be conclusive
and binding on all parties. In the event of any conflict between an Award Schedule and the Plan,
the terms of the Plan shall govern.

     4.5 Expenses of Administration. The Company shall pay all expenses of administration
of this Plan, including, but not limited to, accounting and legal fees and expenses, and any other
expenses related to the administration of this Plan.

Section 5. Retention Awards.

     5.1 Generally. The Committee may establish a Performance Criterion and/or two or more
Performance Criteria and Performance Goals for each Year or other measurement period. If the
Committee establishes two or more Performance Criteria, the Committee may in its discretion
determine the weight to be given to each Performance Criteria in determining Awards. The Committee
shall establish a Retention Award Schedule for each Participant for each Year, which Award Schedule
shall set forth the Target Award for such Participant payable at specified levels of performance,
based on the Performance Goal for each Performance Criterion and the weighting, if any, established
for such criterion. The Committee may vary the Performance Criteria, Performance Goals and
weightings, if any, from Participant to Participant, Award to Award, Year to Year and measurement
period to measurement period. The Committee shall also determine the Payment Date or Dates for each
Retention Award.

     5.2 Establishment of Accounts. The Company shall establish a bookkeeping reserve
account (“Account”) for each Participant granted a Retention Award under the Plan. If, at
the end of each Year, it is determined that a Participant has earned a Retention Award under this
Plan, the Company will credit to such Participant’s Account the full amount of the earned Retention
Award. No interest shall accrue or be payable to a Participant in respect of his or her Account.

7

 

No amount shall be credited to a Participant’s Account for any Year in which no Retention Award is
earned. Participants who are in the active employ of the Company on a Payment Date will be entitled
to receive a Retention Award equal to that portion of the Retention Account payable on the Payment
Date, subject to the terms and conditions of the Plan.

     5.3 Vesting, Payment Date or Dates and Forfeiture. A Participant shall not become
vested in any Retention Award (or any portion thereof) for any Year (or other measuring period)
until the Payment Date or Dates determined by the Committee for such Retention Award (or portion
thereof) shall have occurred, and then the Participant shall only be vested in the amount of the
Retention Award that is payable on the Payment Date that has occurred. Unless otherwise determined
by the Committee, a Participant whose employment with the Company and its subsidiary terminates for
any reason prior to the Payment Date or Dates for the earned Retention Awards reflected in the
Participant’s Account shall forfeit all such unpaid Retention Awards and shall not have any right
to receive any payment on the Payment Date or Dates applicable to such Retention Award; provided,
however, notwithstanding the foregoing, if there has been both (a) a Change in Control
and (b) a termination of the Participant’s employment by the Company without Cause or by
the Participant for Good Reason subsequent to the Change in Control, in that case all unpaid
Retention Awards reflected in the Participant’s Account shall be paid to the Participant within ten
(10) business days after the date of the Participant’s termination of employment in one lump sum
payment, unless if at the time of the Participant’s termination of employment the
Participant is a “specified employee” as defined in Section 409A of the Code and the deferral of
the payment of the Retention Awards otherwise payable pursuant to this Section 5.3 is necessary in
order to prevent any accelerated or additional tax under Section 409A of the Code, then the payment
to which the Participant would otherwise be entitled within ten (10) business days following his or
her termination of employment shall be deferred and accumulated (without any reduction in such
payment ultimately paid to the Participant and without any interest accrued or payable thereon) for
a period of six months from the date of termination from employment and paid in a lump sum on the
first day of the seventh month following such termination of employment. Also, notwithstanding the
foregoing, despite any such forfeiture due to termination of a Participant’s employment pursuant to
the foregoing provisions of the Plan, the Committee may, in its sole discretion, pay any or all of
the forfeited Retention Award or Awards reflected in the Account to the Participant.

     5.4 Payment Date or Dates for Retention Awards. Subject to the terms and conditions of
the Plan, each Retention Award (or portion thereof) shall be paid in cash on the Payment Date or
Payment Dates determined by the Committee in its sole discretion for each such Retention Award.
Generally, it is the intent of the Plan that Retention Awards for any Year (or other measurement
Period) shall not be payable in full during the 90 days subsequent to the end of the Year (or other
measurement period) for which the Performance Goal is achieved, but over a longer period (in a lump
sum or in installments) so that continuity and retention of the Participant in the employ of the
Company or its subsidiary will be enhanced by the Plan. Unless otherwise determined by the
Committee, a Retention Award under the Plan will have the following Payment Dates: one-third
payable in cash within 90 days subsequent to each of the first, second and third anniversaries of
the end of the Year (or other measurement period) for the Performance Goal which is achieved;
subject, however, to an earlier payment in accordance with Section 5.3 above in the event of a
Change in Control.

8

 

     5.5 Limitation on Payments. (a) Anything in this Plan to the contrary notwithstanding,
in the event that the receipt of any payment, award, benefit or distribution (or any acceleration
of any payment, award, benefit or distribution) to be paid to or for the benefit of a Participant
(whether pursuant to the terms of this Plan or otherwise) (the “Payments”) would, but for
this Section 5.5, cause the Participant to incur an excise tax (“Excise Tax”) under Section
4999 of the Code, then the Payments shall be reduced, as further described below, to the extent
necessary so that no Excise Tax is imposed.

     (b) The determination of whether any Payment will cause the Participant to incur an Excise
Tax, as well as any other calculations necessary to implement this Section 5.4, shall be made by
the Company’s outside auditors or by a nationally recognized accounting or benefits consulting firm
appointed by the Company and shall be binding on the Participant. The auditor’s or consultant’s fee
shall be paid by the Company.

Section 6. Code Section 162(m) Awards

     A Participant who is or may be a Covered Employee may receive a Code Section 162(m) Award
and/or a Retention Award that is not a Code Section 162(m) Award. Notwithstanding anything
elsewhere in the Plan to the contrary, as and to the extent required by Code Section 162(m), the
grant of a Code Section 162(m) Award to a Participant must state, in terms of an objective formula
or standard, the method of computing the amount of compensation payable to each Covered Employee
and must preclude discretion to increase the amount of compensation payable that would otherwise be
due upon attainment of such goals. All determinations made by Committee related to a Code Section
162(m) Award will be made in a timely manner, as required by Code Section 162(m), including,
without limitation, the requirements that the Performance Goals, Performance Criteria and Retention
Award Schedules be established not later than 90 days after the commencement of any fiscal year of
the Company. A Retention Award Schedule for a Covered Employee shall set forth for each Code
Section 162(m) Award, the terms and conditions applicable to such Award, as determined by the
Committee, not inconsistent with the terms of the Plan, and shall specify that such Award is a Code
Section 162(m) Award. Before any Code Section 162(m) Award is paid, the Committee shall certify
that the Performance Goals and any other material terms of such Award have been satisfied.
Notwithstanding the foregoing, the Performance Criteria with respect to Code Section 162(m) Awards
shall be limited to the Performance Criteria set forth in clause (1) of the definition of
“Performance Criterion/Performance Criteria”. To the extent that the Company’s tax deduction for
remuneration in respect of the payment of a Code Section 162(m) Award to a Covered Employee would
be disallowed under Code Section 162(m) by reason of the fact that such Covered Employee’s
applicable employee remuneration, as defined in Code Section 162(m)(4), either exceeds or, if such
Award were paid, would exceed the $1,000,000 limitation in Code Section 162(m)(1), the Committee
may, in its sole discretion, defer the payment of such Award in accordance with Treas. Reg. Section
1.409A-2(b)(7)(i). Notwithstanding anything to the contrary set forth in the Plan, such Deferred
Awards may be deemed credited with interest at a rate determined by the Committee from time to time
at the discretion of the Committee.

9

 

Section 7. Amount Available for Retention Awards

     The Committee shall determine the amount available for payment of Retention Awards in any Year
or any other measurement period. Notwithstanding anything else in this Plan to the contrary, the
aggregate maximum amount that may be paid to a Participant during any Year with respect to all
Retention Awards under the Plan shall be $10,000,000.

Section 8. Determination of Awards

     8.1 Selection of Participants. The Committee shall select the Participants and
determine which Participants, if any, are to be treated as Covered Employees and which Retention
Awards, if any, are to be Code Section 162(m) Awards. Except in the case of Code Section 162(m)
Awards, the Committee shall determine the actual Retention Award to each Participant for each Year
or other measurement period, taking into consideration, as it deems appropriate, the performance of
the Company and/or a Business Unit, as the case may be, for the Year or other measurement period in
relation to the Performance Goals theretofore established by the Committee, and the performance of
the respective Participants during the Year or other measurement period. The fact that an Officer
is selected as a Participant for any Year or other measurement period shall not mean that such
Officer necessarily will receive an Award for that Year or other measurement period.
Notwithstanding any other provisions of the Plan to the contrary, the Committee may make
discretionary Awards as it sees fit under the Plan, except in the case of Code Section 162(m)
Awards, which may be adjusted only downward.

     8.2 Selection of Code Section 162(m) Awards. Code Section 162(m) Awards shall be
determined according to a Covered Employee’s Retention Award Schedule based on the level of
performance achieved and such Covered Employee’s Target Award. All such determinations regarding
the achievement of Performance Goals and the determination of actual Code Section 162(m) Awards
will be made by the Committee; provided, however, that the Committee may decrease, but not
increase, the amount of the Code Section 162(m) Award that otherwise would be payable

Section 9. Miscellaneous

     9.1 Right to Payment Unsecured. The right of a Participant to receive payments under
the Plan shall be only that of an unsecured claim against the assets of the Company and
distributions under the Plan shall be made solely from the assets of the Company. Nothing herein
and no action taken pursuant to the Plan shall be construed to create a trust or separate fund of
any kind or a fiduciary relationship between the Company and any Participant, the Participant’s
beneficiary or estate, or any other person. No Participant shall have any right to any specific
assets of the Company or any of its affiliates by virtue of the Plan.

10

 

     9.2 Term and Amendment of this Plan. This Plan shall become effective on the date of
adoption by the Board and shall continue in full force and effect until all Retention Awards that
were awarded under the Plan have been paid. The Committee may, at any time, amend, suspend or
discontinue the Plan, in whole or in part. The Committee may at any time alter or amend any or all
Retention Award Schedules under the Plan to the extent permitted by law. The Committee may also
amend the Plan or any Retention Award granted hereunder at any time if, in the discretion of the
Committee, such amendments become necessary or advisable as a result of changes in law or
regulation or to avoid the imposition of a penalty tax under section 409A of the Code.
Additionally, the Committee may at any time determine to accelerate the payment of any Retention
Awards provided such acceleration is permissible under, and complies with, Section 409A of the
Code.

     9.3 Tax Withholding. The Company shall have the power to withhold from any amount
payable hereunder an amount sufficient to satisfy federal, state and local or non-U.S. withholding
tax requirements on any Retention Award which was awarded under this Plan.

     9.4 Requirements of Law. The award of Retention Awards shall be subject to all
applicable laws, rules and regulations, and to such approvals by any governmental agencies or
national or foreign securities exchanges as may be appropriate or required, as determined by the
Committee. The Company shall use all commercially reasonable efforts to obtain any such approvals.

     9.5 Inalienability of Interests. A Participant’s interests under this Plan shall not
be subject to alienation, assignment, garnishment, execution or levy of any kind, and any attempt
to cause any benefits to be so subjected shall not be null and void and not recognized by the
Committee. This Plan shall be an unfunded plan and a Participant shall have only the rights of a
general creditor of the Company with respect to his or her interest under this Plan.

     9.6 Plan Not Subject to ERISA. This Plan is not intended to be subject to the Employee
Retirement Income Security Act of 1974, as amended.

     9.7 Governing Law. The Plan, Retention Awards and Retention Award Schedules and all
actions taken hereunder or thereunder shall be governed by, and construed in accordance with, the
laws of the state of Delaware without regard to the conflict of laws principles thereof.

     9.8 Limits of Liability.

     (a) Any liability of the Company to any Participant with respect to a Retention Award shall be
based solely upon the obligations, if any, created by the Plan and the Retention Award Schedule.

     (b) Neither the Company, nor any member of its Board or of the Committee, nor any other person
participating in any determination of any question under the Plan, or in the interpretation,
administration or application of the Plan, shall have any liability to any party for any action
taken or not taken in good faith under the Plan.

     9.9 Rights of Officers.

11

 

     (a) Status as an Officer eligible to receive a Retention Award under the Plan shall not be
construed as a commitment that any Retention Award will be made under this Plan to such Officer.

     (b) Nothing contained in this Plan or in any Retention Award Schedule (or in any other
documents related to this Plan or to any Retention Award or Retention Award Schedule) shall confer
upon any Officer or Participant any right to continue in the employ or other service of the Company
or its subsidiary or constitute a contract or limit in any way the right of the Company to change
such person’s compensation or other benefits or to terminate the employment or other service of
such person with or without cause.

     9.10 Section Headings. The section headings contained herein are for the purposes of
convenience only, and in the event of any conflict, the text of the Plan, rather than the section
headings, will control.

     9.11 Invalidity. If any term or provision contained herein is determined to any extent
to be invalid or unenforceable, such term or provision will be reformed so that it is valid, and
such invalidity or unenforceability will not affect any other provision or part hereof.

     9.12 Other Payments or Awards. Nothing contained in the Plan will be deemed in any way
to limit or restrict the Company from making any award or payment to any person under any other
Company plan, arrangement or understanding, whether now existing or hereafter in effect.

     9.13 Compliance with Section 409A of the Code. The Company intends that the Plan and
each Retention Award granted hereunder shall, to the extent applicable, comply with Section 409A of
the Code and any regulations promulgated thereunder and that the Plan shall be interpreted,
operated and administered accordingly (including, without limitation, that any amounts payable upon
a termination of employment shall only be payable where such termination constitutes a “separation
from service” within the meaning of Section 409A). In the event any of the compensation or benefits
provided to a Participant pursuant to this Plan would result in a violation of Section
409A of the Code (including any regulations promulgated thereunder), the Company will use its
reasonable efforts to amend the Plan in the least restrictive manner necessary in order, where
applicable (i) to ensure that such compensation is not considered “nonqualified deferred
compensation” for purposes of Section 409A of the Code, or (ii) to comply with the provisions of
Section 409A, in each case, where possible, without any diminution in the value of the compensation
or benefits to be paid or provided to the Participant pursuant to this Plan; provided, that nothing
in herein shall require the Company to provide any gross-up or other tax reimbursement to the
Participant in connection with any violation of Section 409A or otherwise.

     9.14 Post-Public Shareholder Approval. In the event that (i) the Company registers a
class of its common equity securities under Section 12 of the Exchange Act and (ii) the Committee
issues or wishes to issue a Code Section 162(m) Award after such registration, then the Plan (or
the material terms of the Performance Criteria) shall be submitted to the Company’s shareholders
for approval no later than the date of the first meeting of shareholders at which directors are to
be elected that occurs after the close of the third calendar year following the

12

 

calendar year in which the Company’s initial public offering occurs and, thereafter, no later than
the first shareholders meeting that occurs in the fifth year following the year in which the
shareholders previously approved the Plan (or the material terms of the Performance Criteria).

13exv10w82

Exhibit 10.82

VANGUARD HEALTH SYSTEMS, INC.

2011 STOCK INCENTIVE PLAN

1. Purpose of the Plan

     The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining
key employees, directors or other service providers and to motivate such employees, directors or
other service providers to exert their best efforts on behalf of the Company and its Affiliates by
providing incentives through the granting of Awards. The Company expects that it will benefit from
the added interest which such key employees, directors or service providers will have in the
welfare of the Company as a result of their proprietary interest in the Company’s success.

2. Definitions

     The following capitalized terms used in the Plan have the respective meanings set forth in
this Section:

     (a) Act: The Securities Exchange Act of 1934, as amended, or any successor statute
thereto.

     (b) Affiliate: With respect to any Person, any other Person, directly or indirectly,
controlling, controlled by, or under common control with such Person or any other Person designated
by the Committee in which any Person has an interest.

     (c) Award: An Option, Stock Appreciation Right, Other Stock-Based Award or
Performance-Based Award granted pursuant to the Plan.

     (d) Blackstone: Each of Blackstone FCH Capital Partners IV L.P., Blackstone Health
Commitment Partners L.P., Blackstone Capital Partners IV-A L.P., Blackstone Family Investment
Partnership IV-A L.P., Blackstone Health Commitment Partners-A L.P., Blackstone FCH Capital
Partners IV-B L.P., and Blackstone FCH Capital Partners IV-A L.P., and their respective Affiliates.

     (e) Board: The Board of Directors of the Company.

     (f) Change in Control: The occurrence of any of the following events:

     (i) any person or group, other than the Permitted Holders, is or becomes the
“beneficial owner” (as defined in rules 13d-3 and 13d-5 under the Act) directly or
indirectly of more than 50% of the total voting power of the voting stock of the Company,
including by way of merger, consolidation or otherwise;

     (ii) a reorganization, recapitalization, merger or consolidation (a “Corporate
Transaction”) involving the Company, unless securities representing 50% or more of the
combined voting power of the then outstanding voting securities entitled to

 

2

vote generally in the election of directors of the Company or the corporation resulting
from such Corporate Transaction (or the parent of such corporation) are held subsequent to
such transaction by the person or persons who were the “beneficial owners” of the
outstanding voting securities entitled to vote generally in the election of directors of the
Company immediately prior to such Corporate Transaction, in substantially the same
proportions as their ownership immediately prior to such Corporate Transaction;

     (iii) the sale or disposition, in one or a series of related transactions, of all or
substantially all, of the assets of the Company to any “person” or “group” (as such terms
are defined in Sections 13(d)(3) or 14(d)(2) of the Act) other than the Permitted Holders;
or

     (iv) during any period of 12 months, individuals who at the beginning of such period
constituted the Board (together with any new directors whose election by such Board or whose
nomination for election by the stockholders of the Company was approved by a vote of a
majority of the directors of the Company, then still in office, who were either directors at
the beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board, then in office.

     (g) Code: The Internal Revenue Code of 1986, as amended, or any successor thereto,
and the regulations and guidance promulgated thereunder.

     (h) Committee: The Compensation Committee of the Board (or a subcommittee thereof),
or such other committee of the Board (including, without limitation, the full Board) to which the
Board has delegated power to act under or pursuant to the provisions of the Plan.

     (i) Company: Vanguard Health Systems, Inc., a Delaware corporation.

     (j) Effective
Date: The date the Board approves the Plan.

     (k) Employment: The term “Employment” as used herein shall be deemed to refer
to (i) a Participant’s employment if the Participant is an employee of the Company or any of its
Affiliates, (ii) a Participant’s services, if the Participant is another form of service provider
to the Company or any of its Affiliates and (iii) a Participant’s services as a non-employee
director, if the Participant is a non-employee member of the Board or the board of directors of an
Affiliate; provided, however, that unless otherwise determined by the Committee, a change in a
Participant’s status from employee to non-employee shall constitute a termination of employment
hereunder.

     (l) Fair Market Value: On a given date, (i) if there should be a public market for
the Shares on such date, the closing price of the Shares as reported on such date on the Composite
Tape of the principal national securities exchange on which such Shares are listed or admitted to
trading, or if the Shares are not listed or admitted on any national securities exchange but are
quoted on an inter-dealer quotation system, the final ask price of the Shares on such system on
such date, or, if no sale of Shares shall have been reported on the Composite Tape of any national
securities exchange or quoted on an inter-dealer quotation system on such date, then the closing
price or final ask price on the immediately preceding date on which sales of the Shares

 

3

have been so reported or quoted shall be used, and (ii) if there should not be a public market
for the Shares on such date, the Fair Market Value shall be the fair market value of the Shares as
determined by the Committee in good faith.

     (m) ISO: An Option that is also an incentive stock option granted pursuant to
Section 6(d) of the Plan.

     (n) Option: A stock option granted pursuant to Section 6 of the Plan.

     (o) Option Price: The purchase price per Share of an Option, as determined pursuant
to Section 6(a) of the Plan.

     (p) Other Stock-Based Awards: Awards granted pursuant to Section 8 of the Plan.

     (q) Participant: An employee, director or other service provider who is selected by
the Committee to participate in the Plan.

     (r) Performance-Based Awards: Certain Other Stock-Based Awards granted pursuant to
Section 9 of the Plan.

     (s) Permitted Holder: Any of (i) Blackstone or its Affiliates, (ii) an employee
benefit plan (or trust forming a part thereof) maintained by (A) the Company or (B) any corporation
or other Person of which a majority of its voting power of its voting equity securities or equity
interest is owned, directly or indirectly, by the Company, and (iii) VHS Holdings LLC, a Delaware
limited liability company, or any of its Subsidiaries.

     (t) Person: A “person”, as such term is used for purposes of Section 13(d) or 14(d)
of the Act.

     (u) Plan: The Vanguard Health Systems, Inc. 2011 Stock Incentive Plan.

     (v) Public Trading Date: the first date upon which Shares are listed (or approved for
listing) upon notice of issuance on any national securities exchange.

     (w) Service Recipient: The Company or any Affiliate of the Company that satisfies the
definition of “service recipient” within the meaning of Treasury Regulation Section 1.409A-1 (or
any successor regulation), with respect to which the person is a “service provider” within the
meaning of such Treasury Regulation Section 1.409A-1 (or any successor regulation).

     (x) Shares: Shares of common stock of the Company.

     (y) Stock Appreciation Right: A stock appreciation right granted pursuant to Section
7 of the Plan.

     (z) Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code
(or any successor section thereto).

 

4

3. Shares Subject to the Plan

     (a) Generally. Subject to Section 10, the total number of Shares which may be issued
under the Plan is 14,000,000 and the maximum number of Shares for which ISOs may be granted is
 14,000,000. Additionally, subject to Section 10, the maximum number of Shares for which Options or
Stock Appreciation Rights may be granted during a fiscal year to any Participant shall be
 2,500,000. The Shares may consist, in whole or in part, of unissued Shares or treasury Shares.
The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of
the cancellation or termination of an Award shall reduce the total number of Shares available under
the Plan, as applicable. Shares which are subject to Awards which terminate or lapse without the
payment of consideration may be granted again under the Plan.

     (b) Prior Plans. Following the date of the Company’s initial public offering, no
further equity-based awards shall be granted under the Company’s 2004 Stock Incentive Plan, as
amended (the “2004 Stock Plan”), or the VHS Holdings LLC 2004 Unit Plan, as amended (the
“2004 Unit Plan”). Additionally, any Participant who receives an Award under this Plan
(including, without limitation, any Award granted in substitution of an equity interest previously
granted with respect to VHS Holdings LLC) shall, by acceptance of such Award, be deemed to have
acknowledged and agreed that such Participant has no further rights (i) with respect to any
previously granted equity interests in VHS Holdings LLC, pursuant to the 2004 Unit Plan or the
Amended and Restated Limited Liability Company Operating Agreement of VHS Holdings LLC, as amended
(the “VHS LLC Agreement”), or (ii) to receive any future equity grants pursuant to or
otherwise in connection with the VHS LLC Agreement, the 2004 Unit Plan or the 2004 Stock Plan. Any
equity-based awards granted under the 2004 Stock Plan prior to the date of the Company’s initial
public offering which are outstanding as of the date of such initial public offering shall remain
outstanding pursuant to the terms of the governing award agreement and the 2004 Stock Plan and,
upon settlement or forfeiture of any such award pursuant to its terms, no person shall be entitled
to receive any additional equity grants or other consideration with respect thereto.

4. Administration

     (a) The Plan shall be administered by the Committee; provided, however, that the Board may, in
its sole discretion, take any action designated to the Committee under this Plan as it may deem
necessary for the effective administration of this Plan. The Committee may delegate its duties and
powers in whole or in part to any subcommittee thereof consisting solely of at least two
individuals who are intended to qualify as “Non-Employee Directors” within the meaning of
Rule 16b-3 under the Act (or any successor rule thereto), “independent directors” within the
meaning of the New York Stock Exchanges listed company rules and “outside directors” within the
meaning of Section 162(m) of the Code (or any successor section thereto), to the extent such
qualification requirements apply in connection with the contemplated Award grant. Additionally,
the Committee may delegate the authority to grant Awards under the Plan to any employee or group of
employees of the Company or an Affiliate; provided that such delegation and grants
are consistent with applicable law and guidelines established by the Board from time to time.

 

5

     (b) The Committee shall have the full power and authority to establish the terms and
conditions of any Award consistent with the provisions of the Plan and to waive any such terms and
conditions at any time (including, without limitation, accelerating or waiving any vesting
conditions). Awards may, in the discretion of the Committee, be made under the Plan in assumption
of, or in substitution for, outstanding awards previously granted by the Company or its Affiliates
or a company acquired by the Company or with which the Company combines. The number of Shares
underlying such substitute awards shall be counted against the aggregate number of Shares available
for Awards under the Plan.

     (c) In each case subject to Section 15, the Committee is authorized to interpret the Plan, to
establish, amend and rescind any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of the Plan, and may
delegate such authority, as it deems appropriate. The Committee may correct any defect or supply
any omission or reconcile any inconsistency in the Plan in the manner and to the extent the
Committee deems necessary or desirable. Any decision of the Committee in the interpretation and
administration of the Plan, as described herein, shall lie within its sole and absolute discretion
and shall be final, conclusive and binding on all parties concerned (including, but not limited to,
Participants and their beneficiaries or successors).

     (d) The Committee shall require payment of any amount it may determine to be necessary to
withhold for federal, state, local or other taxes as a result of the exercise, grant or vesting of
an Award and the Company or any of its Subsidiaries shall have the right and is authorized to
withhold any applicable withholding taxes in respect to the Award, its exercise or any payment or
transfer under or with respect to the Award and to take such other action as may be necessary in
the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.
To the extent permitted by the Committee, the Participant may elect to pay a portion or all of such
withholding taxes by (i) delivery of Shares, provided that such Shares have been held by the
Participant for such period of time as the Company’s accountants may require or (ii) with respect
to minimum withholding amounts only, having Shares with a Fair Market Value equal to the amount of
such withholding taxes withheld by the Company from any Shares that would have otherwise been
received by the Participant.

5. Limitations

     No Award may be granted under the Plan after the tenth anniversary of the Effective Date, but
Awards theretofore granted may extend beyond that date.

6. Options

     Options granted under the Plan shall be non qualified stock options unless specifically
identified as incentive stock options for federal income tax purposes, as determined by the
Committee and evidenced by the related Award agreements, and shall be subject to such other terms
and conditions not inconsistent therewith. In addition to the foregoing, except as otherwise
determined by the Committee and evidenced by the related Award agreements, the Options shall also
be subject to the following terms and conditions:

 

6

     (a) Option Price. The Option Price per Share shall be determined by the Committee,
but shall not be less than 100% of the Fair Market Value of a Share on the date an Option is
granted (other than in the case of Options granted in substitution of previously granted awards, as
described in Section 4(b)).

     (b) Exercisability. Options granted under the Plan shall be exercisable at such time
and upon such terms and conditions as may be determined by the Committee, but in no event shall an
Option be exercisable more than ten years after the date it is granted.

     (c) Exercise of Options. Except as otherwise provided in the Plan or in an Award
agreement, an Option may be exercised for all, or from time to time any part, of the Shares for
which it is then exercisable. For purposes of Section 6 of the Plan, the exercise date of an
Option shall be the later of the date a notice of exercise is received by the Company and, if
applicable, the date payment is received by the Company pursuant to clauses (i), (ii), (iii), (iv)
or (v) in the following sentence. The purchase price for the Shares as to which an Option is
exercised shall be paid to the Company in full at the time of exercise at the election of the
Participant: (i) in cash or its equivalent (e.g., by check); (ii) to the extent permitted by the
Committee, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares
being purchased and satisfying such other requirements as may be imposed by the Committee,
provided, that such Shares have been held by the Participant for such period of time as the
Company’s accountants may require to avoid adverse accounting treatment; (iii) partly in cash and,
to the extent permitted by the Committee, partly in such Shares; (iv) if there should be a public
market for the Shares at such time, to the extent permitted by, and subject to such rules as may be
established by the Committee, through the delivery of irrevocable instructions to a broker to sell
Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount
out of the proceeds of such sale equal to the aggregate Option Price for the Shares being
purchased; or (v) allow for payment through a “net settlement” feature (i.e., having Shares with a
Fair Market Value equal to the aggregate Option Price withheld by the Company from any Shares that
would have otherwise been received by the Participant upon exercise of the Option). No Participant
shall have any rights to dividends or other rights of a stockholder with respect to Shares subject
to an Option until the Participant has given written notice of exercise of the Option, paid in full
for such Shares and, if applicable, has satisfied any other conditions imposed by the Committee
pursuant to the Plan.

     (d) ISOs. The Committee may grant Options under the Plan that are intended to be
“incentive stock options” (within the meaning of Section 422 of the Code) (“ISOs”). Such
ISOs shall comply with the requirements of Section 422 of the Code (or any successor section
thereto). No ISO may be granted to any Participant who at the time of such grant, owns more than
10% of the total combined voting power of all classes of stock of the Company or of any Subsidiary,
unless (i) the Option Price for such ISO is at least 110% of the Fair Market Value of a Share on
the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than
the day preceding the fifth anniversary of the date on which the ISO is granted. Any Participant
who disposes of Shares acquired upon the exercise of an ISO either (x) within two years after the
date of grant of such ISO or (y) within one year after the transfer of such Shares to the
Participant, shall notify the Company of such disposition and of the amount realized upon such
disposition. All Options granted under the Plan are intended to be nonqualified stock options,
unless the applicable Award agreement expressly states that the Option is intended to be an ISO.

 

7

If an Option is intended to be an ISO, and if for any reason such Option (or portion thereof)
shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion
thereof) shall be regarded as a nonqualified stock option granted under the Plan; provided
that such Option (or portion thereof) otherwise complies with the Plan’s requirements relating to
nonqualified stock options. In no event shall any member of the Committee, the Company or any of
its Affiliates (or their respective employees, officers or directors) have any liability to any
Participant (or any other Person) due to the failure of an Option to qualify for any reason as an
ISO.

     (e) Attestation. Wherever in this Plan or any agreement evidencing an Award a
Participant is permitted to pay the Option Price of an Option or taxes relating to the exercise of
an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the
Committee, satisfy such delivery requirement by presenting proof of beneficial ownership of such
Shares, in which case the Company shall treat the Option as exercised without further payment
and/or shall withhold such number of Shares from the Shares acquired by the exercise of the Option,
as appropriate.

     (f) Repricing of Options. Notwithstanding any provision herein to the contrary, the
repricing of an Option, once granted hereunder, is prohibited without prior approval of the
Company’s stockholders. For this purpose, a “repricing” means any of the following (or any other
action that has the same effect as any of the following): (i) changing the terms of an Option to
lower the Option Price; (ii) any other action that is treated as a “repricing” under generally
accepted accounting principles; and (iii) repurchasing for cash or canceling an Option in exchange
for another Award at a time when the Option Price is greater than the Fair Market Value of the
underlying Shares, unless the cancellation and exchange occurs in connection with a change in
capitalization or similar change permitted under Section 10(a) below. Such cancellation and
exchange would be considered a “repricing” regardless of whether it is treated as a “repricing”
under generally accepted accounting principles and regardless of whether it is voluntary on the
part of the Participant.

7. Stock Appreciation Rights

     (a) Grants. The Committee may also grant (i) a Stock Appreciation Right independent
of an Option or (ii) a Stock Appreciation Right in connection with an Option, or a portion thereof.
A Stock Appreciation Right granted pursuant to clause (ii) of the preceding sentence (A) may be
granted at the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of Shares covered by an Option
(or such lesser number of Shares as the Committee may determine) and (C) shall be subject to the
same terms and conditions as such Option except for such additional limitations as are contemplated
by this Section 7 (or such additional limitations as may be included in an Award agreement).

     (b) Terms. The exercise price per Share of a Stock Appreciation Right shall be an
amount determined by the Committee but in no event shall such amount be less than 100% of the Fair
Market Value of a Share on the date the Stock Appreciation Right is granted (other than in the case
of Stock Appreciation Rights granted in substitution of previously granted awards, as described in
Section 4(b)); provided, however, that in the case of a Stock Appreciation Right

 

8

granted in conjunction with an Option, or a portion thereof, the exercise price may not be
less than the Option Price of the related Option; and provided, further, that the exercise
price of a Stock Appreciation Right that is granted in exchange for an Option may be less than the
Fair Market Value on the grant date if such exercise price is equal to the Option Price of the
exchanged Option. Each Stock Appreciation Right granted independent of an Option shall entitle a
Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value on the
exercise date of one Share over (B) the exercise price per Share, times (ii) the number of Shares
covered by the Stock Appreciation Right. Each Stock Appreciation Right granted in conjunction with
an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the
unexercised Option, or any portion thereof, and to receive from the Company in exchange therefor an
amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over
(B) the Option Price per Share, times (ii) the number of Shares covered by the Option, or portion
thereof, which is surrendered. The date a notice of exercise is received by the Company shall be
the exercise date. Payment to the Participant shall be made in Shares or in cash, or partly in
Shares and partly in cash (any such Shares valued at such Fair Market Value), all as shall be
determined by the Committee. Stock Appreciation Rights may be exercised from time to time upon
actual receipt by the Company of written notice of exercise stating the number of Shares with
respect to which the Stock Appreciation Right is being exercised. No fractional Shares will be
issued in payment for Stock Appreciation Rights, but instead cash will be paid for a fraction or,
if the Committee should so determine, the number of Shares will be rounded downward to the next
whole Share.

     (c) Limitations. The Committee may impose, in its discretion, such conditions upon
the exercisability or transferability of Stock Appreciation Rights as it may deem fit, but in no
event shall a Stock Appreciation Right be exercisable more than ten years after the date it is
granted.

     (d) Repricing of Stock Appreciation Rights. Notwithstanding any provision herein to
the contrary, the repricing of a Stock Appreciation Right, once granted hereunder, is prohibited
without prior approval of the Company’s stockholders. For this purpose, a “repricing” means any of
the following (or any other action that has the same effect as any of the following): (i) changing
the terms of a Stock Appreciation Right to lower its exercise price; (ii) any other action that is
treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for
cash or canceling a Stock Appreciation Right in exchange for another Award at a time when its
exercise price is greater than the Fair Market Value of the underlying Shares, unless the
cancellation and exchange occurs in connection with a change in capitalization or similar change
permitted under Section 10(a) below. Such cancellation and exchange would be considered a
“repricing” regardless of whether it is treated as a “repricing” under generally accepted
accounting principles and regardless of whether it is voluntary on the part of the Participant.

8. Other Stock-Based Awards

     The Committee, in its sole discretion, may grant or sell Awards of Shares, Awards of
restricted Shares and Awards that are valued in whole or in part by reference to, or are otherwise
based on the Fair Market Value of, Shares (such Awards, “Other Stock-Based Awards”). Such
Other Stock-Based Awards shall be in such form, and dependent on such conditions, as the

 

9

Committee shall determine, including, without limitation, the right to receive, or vest with
respect to, one or more Shares (or the equivalent cash value of such Shares) upon the completion of
a specified period of service, the occurrence of an event and/or the attainment of performance
objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards
granted under the Plan. Subject to the provisions of the Plan, the Committee shall determine to
whom and when Other Stock-Based Awards will be made, the number of Shares to be awarded under (or
otherwise related to) such Other Stock-Based Awards, whether such Other Stock-Based Awards shall be
settled in cash, Shares or a combination of cash and Shares, and all other terms and conditions of
such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring
that all Shares so awarded and issued shall be fully paid and non-assessable).

	9.	 	Performance-Based Awards.

     (a) The Committee, in its sole discretion, may grant Awards which are denominated in Shares or
cash (such Awards, “Performance-Based Awards”), which Awards may, but for the avoidance of
doubt are not required to, be granted in a manner which is intended to be deductible by the Company
under Section 162(m) of the Code (or any successor section thereto). Such Performance-Based Awards
shall be in such form, and dependent on such conditions, as the Committee shall determine,
including, without limitation, the right to receive, or vest with respect to, one or more Shares or
the cash value of the Award upon the completion of a specified period of service, the occurrence of
an event and/or the attainment of performance objectives. Performance-Based Awards may be granted
alone or in addition to any other Awards granted under the Plan. Subject to the provisions of the
Plan, the Committee shall determine to whom and when Performance-Based Awards will be made, the
number of Shares or aggregate amount of cash to be awarded under (or otherwise related to) such
Performance-Based Awards, whether such Performance-Based Awards shall be settled in cash, Shares or
a combination of cash and Shares, and all other terms and conditions of such Awards (including,
without limitation, the vesting provisions thereof and provisions ensuring that all Shares so
awarded and issued, to the extent applicable, shall be fully paid and non-assessable).

     (b) A Participant’s Performance-Based Award shall be determined based on the attainment of
written performance goals approved by the Committee for a performance period established by the
Committee. During any period when Section 162(m) of the Code is applicable to the Company and the
Plan (after giving effect to Treas. Reg. Section 1.162-27(f)), such determination shall be made (i)
while the outcome for that performance period is substantially uncertain and (ii) no more than 90
days after the commencement of the performance period to which the performance goal relates or, if
less, the number of days which is equal to 25% of the relevant performance period. The performance
goals, which must be objective, shall be based upon one or more of the following criteria: (i)
consolidated income before or after taxes (including income before interest, taxes, depreciation
and amortization); (ii) EBITDA; (iii) adjusted EBITDA; (iv) operating income; (v) net income; (vi)
net income per Share; (vii) book value per Share; (viii) return on members’ or stockholders’
equity; (ix) expense management; (x) return on investment; (xi) improvements in capital structure;
(xii) profitability of an identifiable business unit or product; (xiii) maintenance or improvement
of profit margins; (xiv) stock price; (xv) market share; (xvi) revenue or sales; (xvii) costs;
(xviii) cash flow; (xix) working capital; (xx) multiple of invested capital; and (xxi) total
return. The foregoing criteria may relate to the

 

10

Company, one or more of its Subsidiaries or one or more of its or their divisions or units, or
any combination of the foregoing, and may be applied on an absolute basis and/or be relative to one
or more peer group companies or indices, or any combination thereof, all as the Committee shall
determine. In addition, to the degree consistent with Section 162(m) of the Code (or any successor
section thereto), the performance goals may be calculated without regard to extraordinary items.
The maximum amount of a Performance-Based Award that may be earned during each fiscal year during a
performance period by any Participant shall be: (x) with respect to Performance-Based Awards that
are denominated in Shares, 2,500,000 Shares and (y) with respect to Performance-Based Awards that
are denominated in cash, $10,000,000. To the extent that a Performance-Based Award may be earned
over a period that is longer than one fiscal year, the foregoing limitations shall apply to each
full or partial fiscal year during or in which such Award may be earned.

     (c) The Committee shall determine whether, with respect to a performance period, the
applicable performance goals have been met with respect to a given Participant and, if they have,
during any period when Section 162(m) of the Code is applicable to the Company and the Plan (after
giving effect to Treas. Reg. Section 1.162-27(f)) and such Performance-Based Award is intended to
be deductible by the Company under Section 162(m) of the Code, shall so certify and ascertain the
amount of the applicable Performance-Based Award. No Performance-Based Awards will be paid for
such performance period until such certification, to the extent applicable, is made by the
Committee. The amount of the Performance-Based Award actually paid to a given Participant may be
less than the amount determined by the applicable performance goal formula, at the discretion of
the Committee. The amount of the Performance-Based Award determined by the Committee for a
performance period shall be paid to the Participant at such time as determined by the Committee in
its sole discretion after the end of such performance period; provided, however, that a Participant
may, if and to the extent permitted by the Committee and consistent with the provisions of Sections
162(m) and 409A of the Code, to the extent applicable, elect to defer payment of a
Performance-Based Award.

10. Adjustments Upon Certain Events

     Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Awards granted under the Plan:

     (a) Generally. In the event of any Share dividend or split, reorganization,
recapitalization, merger, consolidation, spin-off, combination or transaction or exchange of Shares
or other corporate exchange, any equity restructuring (as defined under Financial Accounting
Standards Board (FASB) Accounting Standards Codification 718), or any distribution to stockholders
other than regular cash dividends or any transaction similar to the foregoing, the Committee in its
sole discretion and without liability to any Person shall make such substitution or adjustment as
it deems reasonably necessary to address, on an equitable basis, the effect of such event (subject
to Section 18), as to (i) the number or kind of Shares or other securities issued or reserved for
issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares
for which Options or Stock Appreciation Rights may be granted during a fiscal year to any
Participant, (iii) the maximum amount of a Performance Based Award that may be granted during a
fiscal year to any Participant, (iv) the Option Price or exercise price of any Award and/or (v) any
other affected terms of such Awards.

 

11

     (b) Change in Control. In the event of a Change in Control after the Effective Date,
(i) if determined by the Committee in the applicable Award agreement or otherwise, any outstanding
Awards then held by Participants which are unexercisable or otherwise unvested or subject to lapse
restrictions shall automatically be deemed exercisable or otherwise vested or no longer subject to
lapse restrictions, as the case may be, as of immediately prior to such Change of Control and (ii)
the Committee may (subject to Section 18), but shall not be obligated to, (A) accelerate, vest or
cause the restrictions to lapse with respect to all or any portion of an Award, (B) cancel such
Awards for cash payment of fair value (as determined in the sole discretion of the Committee)
which, in the case of Options and Stock Appreciation Rights, may equal the excess, if any, of value
of the consideration to be paid in the Change in Control transaction to holders of the same number
of Shares subject to such Options or Stock Appreciation Rights (or, if no consideration is paid in
any such transaction, the Fair Market Value of the Shares subject to such Options or Stock
Appreciation Rights) over the aggregate exercise price of such Options or Stock Appreciation Rights
(and otherwise, the Committee may cancel Awards for no consideration if the aggregate Fair Market
Value of the shares subject to such Awards is less than or equal to the aggregate Option Price of
such Options or exercise price of such Stock Appreciation Rights), (C) provide for the issuance of
substitute Awards that will substantially preserve the otherwise applicable terms of any affected
Awards previously granted hereunder as determined by the Committee in its sole discretion or (D)
provide that for a period of at least 30 days prior to the Change in Control, such Options or Stock
Appreciation Rights shall be exercisable as to all shares subject thereto and that upon the
occurrence of the Change in Control, such Options or Stock Appreciation Rights shall terminate and
be of no further force and effect.

11. No Right to Employment or Awards

     The granting of an Award under the Plan shall impose no obligation on the Company or any
Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s
or Affiliate’s right to terminate the Employment of such Participant. No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of
Awards and the Committee’s determinations and interpretations with respect thereto need not be the
same with respect to each Participant (whether or not such Participants are similarly situated).

12. Securities Laws

     The Board may refuse to instruct the Company to issue or transfer any Shares or other
consideration under an Award if, acting in its sole discretion, it determines that the issuance or
transfer of such Shares or such other consideration might violate any applicable law or regulation
and any payment tendered to the Company by a Participant, other holder or beneficiary in connection
with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or
beneficiary. Without limiting the generality of the foregoing, no Award granted hereunder shall be
construed as an offer to sell securities of the Company, and no such offer shall be outstanding,
unless and until the Committee in its sole discretion has determined that any such offer, if made,
would be in compliance with the applicable requirements of applicable securities laws.

 

12

13. Successors and Assigns

     The Plan shall be binding on all successors and assigns of the Company and a Participant,
including without limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.

14. Nontransferability of Awards

     Unless otherwise determined by the Committee, an Award shall not be transferable or assignable
by the Participant otherwise than by will or by the laws of descent and distribution. An Award
exercisable after the death of a Participant may be exercised by the legatees, personal
representatives or distributees of the Participant.

15. Amendments or Termination

     Subject to the limitations imposed under Sections 6(f) and 7(d) of this Plan, the Board may
amend, alter or discontinue the Plan or any outstanding Award, but no amendment, alteration or
discontinuation shall be made, (a) without the approval of the stockholders of the Company to the
extent such approval is (i) required by or (ii) desirable to satisfy the requirements of, in each
case, any applicable law, regulation or other rule, including, the listing standards of the
securities exchange, which is, at the applicable time, the principal market for the Shares, or (b)
without the consent of a Participant, if such action would materially and adversely affect any of
the rights of the Participant under any Award theretofore granted to such Participant under the
Plan; provided, however, that the Committee may amend the Plan in such manner as it
deems necessary to permit the granting of Awards meeting the requirements of the Code or other
applicable laws (including, without limitation, to avoid adverse tax or accounting consequences to
the Company or to Participants).

     Without limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in
accordance with Section 409A of the Code and Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such regulations or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the
Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder
will be taxable to a Participant under Section 409A of the Code and related Department of Treasury
guidance prior to payment to such Participant of such amount, the Company may (a) adopt such
amendments to the Plan and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or appropriate to
preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder
and/or (b) take such other actions as the Committee determines necessary or appropriate to avoid
the imposition of an additional tax under Section 409A of the Code.

16. Choice of Law

     The Plan shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to conflicts of laws.

 

13

17. Effectiveness of the Plan

     The Plan shall be effective as of the Effective Date, subject to the approval of the
stockholders of the Company.

18. Section 409A of the Code

     Notwithstanding other provisions of the Plan or any Award agreements thereunder, no Award
shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner
that would result in the imposition of an additional tax under Section 409A of the Code upon a
Participant. In the event that it is reasonably determined by the Committee that, as a result of
Section 409A of the Code, payments in respect of any Award under the Plan may not be made at the
time contemplated by the terms of the Plan or the relevant Award agreement, as the case may be,
without causing the Participant holding such Award to be subject to taxation under Section 409A of
the Code, the Company will make such payment on the first day that would not result in the
Participant incurring any tax liability under Section 409A of the Code. References under the Plan
or an Award to the Participant’s termination of Employment shall be deemed to refer to the date
upon which the Participant has experienced a “separation from service” within the meaning of
Section 409A of the Code. Notwithstanding anything herein to the contrary, (a) if at the time of
the Participant’s separation from service with any Service Recipient the Participant is a
“specified employee” as defined in Section 409A of the Code, and the deferral of the commencement
of any payments or benefits otherwise payable hereunder as a result of such separation from service
is necessary in order to prevent the imposition of any accelerated or additional tax under Section
409A of the Code, then the Company will defer the commencement of the payment of any such payments
or benefits hereunder (without any reduction in such payments or benefits ultimately paid or
provided to the Participant) to the minimum extent necessary to satisfy Section 409A of the Code
until the date that is six months and one day following the Participant’s separation from service
with all Service Recipients (or the earliest date as is permitted under Section 409A of the Code),
if such payment or benefit is payable upon a termination of Employment and (b) if any other
payments of money or other benefits due to the Participant hereunder would cause the application of
an accelerated or additional tax under Section 409A of the Code, such payments or other benefits
shall be deferred, if deferral will make such payment or other benefits compliant under Section
409A of the Code, or otherwise such payment or other benefits shall be restructured, to the minimum
extent necessary, in a manner, reasonably determined by the Board, that does not cause such an
accelerated or additional tax or result in an additional cost to the Company (without any reduction
in such payments or benefits ultimately paid or provided to the Participant).

     The Company shall use commercially reasonable efforts to implement the provisions of this
Section 18 in good faith; provided that neither the Company, the Board, the Committee nor
any of the Company’s employees, directors or representatives shall have any liability to
Participants with respect to this Section 18.

 

14

19. Awards Subject to the Plan

     In the event of a conflict between any term or provision contained in the Plan and a term
contained in any Award agreement, the applicable terms and provisions of the Plan will govern and
prevail.

20. Severability

     If any provision of the Plan or any Award is, or becomes or is deemed to be invalid, illegal,
unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to the applicable laws, or if it cannot be construed or deemed amended without,
in the determination of the Committee, materially altering the intent of the Plan or the Award,
such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the
Plan and any such Award shall remain in full force and effect.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]