Document:

EXHIBIT
10.1

 

THE NEW
YORK TIMES COMPANY

NON-EMPLOYEE
DIRECTORS DEFERRAL PLAN

AS AMENDED THROUGH OCTOBER 11, 2007

 

ARTICLE 1

 

NAME AND
PURPOSE

 

The New York Times
Company (the “Company”) hereby establishes The New York Times Company
Non-Employee Directors Deferral Plan (the “Plan”). The purpose of the Plan is
to provide a means for (i) the elective deferral of the payment of compensation
payable to non-employee directors of the Company and (ii) the payment of a
portion of compensation payable to non-employee directors of the Company in the
form of deferred compensation.

 

ARTICLE 2

 

EFFECTIVE
DATE

 

The Plan is effective as
of September 17, 1997 (the “Effective Date”). The terms of the Plan, as amended
through October 11, 2007, apply to all deferred amounts whether made before or
after October 11, 2007.

 

ARTICLE 3

 

PARTICIPATION

 

Each member of the Board
of Directors of the Company (the “Board”) who is not an employee of the Company
or any subsidiary of the Company may participate in the Plan (each a “Non-Employee
Director”).

 

ARTICLE 4

 

DEFERRAL
ELECTIONS

 

Pursuant to the terms of
the Plan, a Non-Employee Director may make an election to defer a percentage of
(i) the annual retainer fee payable in respect of the Non-Employee Director’s
service on the Board and (ii) the Board meeting fees and committee meeting fees
payable in respect of the Non-Employee Director’s attendance at such meetings
(collectively, “Compensation”). A Non-Employee Director’s deferral election may
apply to one or both of the foregoing categories of Compensation and may range
from 10% to 100% of such Compensation, in 10% gradations, as elected by the
Non-Employee Director. Each initial deferral election and each change to an
existing deferral election shall be made by the submission of an Election Form.
The Election Form shall include: (x) the amount of the deferral, (y) the form
of the deferral (cash or stock), and (z) the form of the distribution (lump-sum
or installment) for the 

 

 

deferral. Each initial
deferral election and each change to an existing deferral election shall be
made by the submission of an Election Form as follows:

 

(a)   Prior
to December 31st of each year, each Non-Employee Director may submit an
Election Form which will be given effect with respect to Compensation earned by
the Non-Employee Director for the subsequent calendar year.

 

(b)   Each
Non-Employee Director initially elected or appointed to the Board on or after
the December 31  of the previous calendar
year may submit an Election Form no later than thirty (30) calendar days
following the Non-Employee Director’s election or appointment, which Election
Form will be given effect with respect to Compensation earned by the
Non-Employee Director after the submission of the Election Form.

 

(c)   At
any time after the election periods described in subparagraphs (a) and (b)
above, a Non-Employee Director may submit an initial Election Form or a new
Election Form superseding an existing Election Form, in which case such initial
or new Election Form will be given effect with respect to Compensation earned
by the Non-Employee Director for the subsequent calendar year. Any changes to
the form of distribution must be consistent with the provisions of Article 7.

 

ARTICLE 5

 

BENEFICIARY
DESIGNATION

 

Each Non-Employee Director may, at any time, designate one or more
Beneficiaries to receive amounts credited to the Non-Employee Director’s
deferral accounts in the event of the Non-Employee Director’s death. A
Non-Employee Director may make an initial Beneficiary designation, or change an
existing Beneficiary designation, by completing and signing a Beneficiary
Designation Form and submitting it to the Secretary of the Company. Upon
acceptance by the Secretary of the Company of a Non-Employee Director’s
Beneficiary Designation Form, all Beneficiary designations previously filed
shall automatically be canceled.

 

ARTICLE 6

 

MAINTENANCE
OF DEFERRED ACCOUNTS/DISCRETIONARY GRANTS

 

Compensation may be
deferred by a Non-Employee Director under the Plan either in the form of cash
or units of class A common stock of the Company (“Stock”) (but in no event
shall deferrals be made in a combination of cash and Stock). Compensation
deferred by a Non-Employee Director under the Plan shall be credited to record
keeping accounts maintained by the Company in the Non-Employee Director’s name
as follows:

 

(a)   CASH
DEFERRALS. Deferrals made in cash shall be credited to an account (“Cash
Deferral Account”) as of the date on which such Compensation would otherwise
have been paid to the Non-Employee Director. All amounts credited to a
Non-Employee Director’s Cash Deferral Account shall accrue interest from the
time such amounts would otherwise have been paid to 

 

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the Non-Employee Director
until the date that such amounts cease accruing interest in connection with a
distribution pursuant to Article 7. The interest rate shall be reset annually
and shall equal the interest rate payable on one-year U.S. Treasury Bills
auctioned in the first auction of the calendar year; provided  however,
if no one-year U.S. Treasury Bills are being auctioned, such interest rate
shall equal the closing yield on a U.S. Treasury Note with one-year remaining
to maturity as of the first business day of the calendar year. Interest in a
Cash Deferral Account shall be compounded as of the last business day of each
calendar quarter.

 

(b)   STOCK
DEFERRALS. Deferrals made in Stock shall be initially credited in cash to an
account (“Interim Cash Deferral Account”) as of the date on which such Compensation
would otherwise have been paid to the Non-Employee Director. All amounts
credited to a Non-Employee Director’s Interim Cash Deferral Account shall
accrue interest from the time such amounts would otherwise have been paid to
the Non-Employee Director until, as the case may be, the date that such amounts
are credited to the Non-Employee Director’s Stock Deferral Account, as provided
in this paragraph, or the date that such amounts cease accruing interest in
connection with a distribution pursuant to Article 7. Amounts in the Interim
Cash Deferral Account, including interest and Deemed Dividends (as defined
below), shall be credited to an account (the “Stock Deferral Account”) as of
the date of the Company’s Annual Meeting of Stockholders first occurring after
the date on which such amounts were credited to the Interim Cash Deferral
Account. All amounts to be credited to a Non-Employee Director’s Stock Deferral
Account shall be credited using the average closing price of a share of Stock
on the New York Stock Exchange for the 30 trading days prior to the date of
credit. Dividends with respect to any Stock credited to a Non-Employee Director’s
Stock Deferral Account will be credited as cash on the dividend payment date to
the Interim Cash Deferral Account (“Deemed Dividends”) and shall accrue
interest in the same manner as other amounts credited to such account from such
time until such amounts are credited to the Non-Employee Director’s Stock
Deferred Account pursuant to the terms of this paragraph. Interest in an
Interim Cash Deferral Account shall be compounded as of the last business day
of each calendar quarter. The interest rate for the purposes of this paragraph
(b) shall be the rate set forth in paragraph (a) above.

 

On the date of the
Company’s Annual Meeting of Stockholders each year, an amount of Stock,
determined in accordance with the next sentence, may (in the discretion of the
Board) be credited to each Non-Employee Director’s Stock Deferral Account (“Discretionary
Grants”). The amount of Stock, if any, to be credited shall be equal to the
dollar amount, if any, determined by the Board from time to time for this
purpose, divided by the average closing price of a share of Stock on the New
York Stock Exchange for the 30 trading days prior to the date of such Annual
Meeting of Stockholders.

 

ARTICLE 7

 

METHOD OF
DISTRIBUTION OF DEFERRALS

 

No distribution of
deferrals may be made except as provided in this Article 7. All distributions,
whether deferrals are made in cash or Stock, shall be made in cash as provided
hereunder.

 

(a)   CASH
DEFERRALS AND INTERIM CASH DEFERRALS. As described in the following 

 

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sentence, the full amount
credited to a Non-Employee Director’s Cash Deferral Account and Interim Cash Deferral
Account shall be distributed to the Non-Employee Director after the cessation
of the Non-Employee Director’s service on the Board for any reason other than
death. Such distribution shall be made in the form of (i) a lump sum cash
payment made on the 30th day following the end of the month in which the
Non-Employee Director ceases service and shall consist of all amounts credited
to such Non-Employee Director’s Cash Deferral Account and Interim Cash Deferral
Account plus interest accrued through the end of the month in which the
Non-Employee Director ceases service or (ii) substantially equal annual cash
installments over a period of up to ten (10) years, as designated on the
Distribution Election Form submitted by the Non-Employee Director, with each
installment payable as of January 30 of each of the selected number of years and
the first installment payable on the January 30 immediately following the
Non-Employee Director’s cessation from service. Each such cash installment
shall consist of all amounts credited to such Non-Employee Director’s Cash
Deferral Account and Interim Cash Deferral Account, plus interest accrued
through the end of the calendar year prior to the year in which each such cash
installment is paid, divided by the remaining number of years during which the
amounts are to be distributed. If, subsequent to submitting an initial
Distribution Election Form the Non-Employee Director wishes to change the form
of distribution, then (x) a written election to do so must be made at least twelve
months prior to the time the Non-Employee Director ceases service, (y) such
election will not take effect for twelve (12) months of the date of the
election, and (z) if the election does take effect, payments under such
subsequent election may not commence prior to the fifth anniversary of the date
the payment otherwise would have been paid. All distributions under this
paragraph are subject to the terms of paragraph (d) of this Article 7.

 

(b)   STOCK
DEFERRALS. As described in the following sentence, the full amount credited to
a Non-Employee Director’s Stock Deferral Account shall be distributed to the
Non-Employee Director after the cessation of the Non-Employee Director’s
service on the Board for any reason other than death. Such distribution shall be
in the form of (i) a lump sum cash payment made on the 30th day following the
end of the month in which the Non-Employee Director ceases service and shall be
calculated by multiplying the number of units of Stock credited to the
Non-Employee Director’s Stock Deferral Account by the closing price of a share
of Stock on the last business day of the month in which the Non-Employee
Director ceases service, or (ii) substantially equal annual cash installments
over a period of up to ten (10) years, as designated on the Distribution
Election Form submitted by the Non-Employee Director, with each installment
payable as of January 30 of each of the selected number of years and the first
installment payable on the January 30 immediately following the Non-Employee
Director’s cessation from service. Each such installment shall be calculated by
multiplying the number of units of Stock credited to such Non-Employee Director’s
Stock Deferral Account by the closing price of a share of Stock on the last
business day of the calendar year prior to the year in which each such
installment is paid, and dividing the total thereof by the remaining number of
years during which the amounts are to be distributed. If, subsequent to
submitting an initial Distribution Election Form the Non-Employee Director
wishes to change the form of, then (x) a written election to do so must be made
at least twelve months prior to the time the Non-Employee Director ceases
service, (y) such election will not take effect for twelve (12) months of the
date of the election, and (z) if the election does take effect, payments under 

 

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such subsequent election
may not commence prior to the fifth anniversary of the date the payment
otherwise would have been paid. All distributions under this paragraph are
subject to the terms of paragraph (d) of this Article 7.

 

(c)   OTHER.
(i) Notwithstanding the foregoing, at the written request of a Non-Employee
Director, the Nominating & Governance Committee of the Board (in its role
as Plan administrator), may in its sole discretion, accelerate the payment of
amounts credited to the Non-Employee Director’s deferral accounts, upon a
showing of unforeseeable financial emergency by such Non-Employee Director,
taking into account the Non-Employee Director’s other financial resources. Such
distribution shall be made in the form of a lump sum cash payment and shall not
exceed the lesser of (x) the amount necessary to meet the financial need
created by the unforeseeable emergency, plus any taxes reasonably anticipated
as a result of the distribution or (y) all amounts credited to such
Non-Employee Director’s deferral account plus interest accrued through the end
of the month immediately preceding the month in which such request was made.
Amounts distributed shall first be credited against the Non-Employee Director’s
Cash Deferral Account, then against his or her Interim Cash Deferral Account,
and then against his or her Stock Deferral Account (based on the closing price
of a share of Stock on the date the request for distribution is made). For
these purposes, “unforeseeable financial emergency” is a severe financial
hardship resulting from a sudden and unexpected illness or accident of the
Non-Employee Director, the Non-Employee Director’s spouse or the Non-Employee
Director’s dependent, loss of the Non-Employee Director’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances
arising as a result of one or more recent events beyond the control of the
Non-Employee Director. In any event, payment may not be made to the extent such
emergency is or may be relieved: (1) through reimbursement or compensation by
insurance or otherwise; (2) by liquidation of the Non-Employee Director’s
assets, to the extent the liquidation of such assets would not, itself, cause
severe financial hardship; or (3) by cessation of deferrals under the Plan.
Examples of what are not considered to be unforeseeable emergencies include the
need to pay a child’s tuition expenses or the desire to purchase a home.

 

(ii)   In
the event of a Non-Employee Director’s death either before or after the
Non-Employee Director’s cessation from service on the Board, all amounts then
credited to the Non-Employee Director’s Cash Deferral Account, Interim Cash
Deferral Account and Stock Deferral Account shall be distributed to the
Non-Employee Director’s designated Beneficiaries in the form of a lump sum cash
payment within thirty (30) days after the end of the month in which such death
occurred or, if not practicable to pay such amount in the 30-day period, such
amount shall be paid by the end of the taxable year of the Non-Employee
Director in which death occurs (if later than the end of the 30-day period) and
shall consist of all amounts credited to such Non-Employee Director’s deferral
accounts plus any dividend equivalents and interest accrued through the end of
the month in which such death occurred. Stock in a Non-Employee Director’s
Stock Deferral Account shall be valued as of the last business day of the month
in which such death occurred. If the Non-Employee Director has not designated a
Beneficiary or the Non-Employee Director’s designated Beneficiary(ies) do not
survive the Non-Employee Director, the full amount of the Non-Employee Director’s
deferral account shall be paid to the Non-Employee Director’s spouse, or if
there is no spouse, to the Non-Employee Director’s estate. All distributions
under this subparagraph (ii) are 

 

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subject to the terms of
paragraph (d) of this Article 7.

 

(iii)  If
at the time of a Non-Employee Director’s cessation from service on the Board,
he or she is or becomes an employee of the Company, then for purposes
determining the timing of distributions pursuant to this Article 7, such
cessation from service on the Board shall trigger payment to the individual
under the Plan notwithstanding that the individual is or becomes an employee at
such time; provided, however, if immediately prior to such termination he or
she is a “Specified Employee” within the meaning of Section 409A(a)(2)(B) of
the Internal Revenue Code of 1986, as amended, and as determined in accordance
with The New York Times Company 1991 Executive Stock Incentive Plan, no
distribution may be made before the date that is six months after the date of
such cessation from service (or, if earlier than the end of such 6-month
period, the date of death of the Non-Employee Director). The accumulated
postponed amount shall be paid to the Non-Employee Director on the 10th day after
the end of the six month period (or within 10 days after the death of the
Non-Employee Director, if earlier). All distributions under this subparagraph
(iii) are subject to the terms of paragraph (d) of this Article 7.

 

(d)   WHEN
A PAYMENT IS TREATED AS MADE. In accordance with Section 1.409A-3(d) of the
Treasury Regulations, a distribution under this Plan will be treated as made on
the designated payment date if the payment is made (i) at such date or a later
date within the same calendar year, or if later, by the 15th day of the third
month following the date designated in the Plan (provided the Non-Employee
Director may not, directly or indirectly, designate the year of payment), or (ii)
at a date no earlier that 30 days before the designated payment date and the
Non-Employee Director (or, in the event of the death of the Non-Employee
Director, his or her Beneficiary) may not directly or indirectly designate the
taxable year of the payment.

 

ARTICLE 8

 

UNFUNDED
STATUS OF THE PLAN

 

A Non-Employee Director
shall not have any interest in any amount credited to his or her deferral
accounts until it is distributed in accordance with the Plan. Distributions
under the Plan shall be made only from the general assets of the Company. All
amounts deferred under the Plan shall remain the sole property of the Company,
subject to the claims of its general creditors and available for its use for
whatever purposes are desired. With respect to amounts deferred, a Non-Employee
Director is merely a general creditor of the Company; and the obligation of the
Company hereunder is purely contractual and shall not be funded or secured in
any way.

 

ARTICLE 9

 

NON-ALIENABILITY
AND NON-TRANSFERABILITY

 

The rights of a
Non-Employee Director to the payment of amounts credited to his or her deferral
accounts shall not be assigned, transferred, pledged or encumbered or be
subject in any manner to alienation or anticipation. A Non-Employee Director
may not borrow against amounts 

 

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credited to the
Non-Employee Director’s account and such amounts shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, change, garnishment, execution or levy of any kind, whether
voluntary or involuntary, prior to distribution.

 

ARTICLE
10

 

STATEMENT
OF ACCOUNT

 

Statements will be sent
to each Non-Employee Director within thirty (30) days after each year’s Annual
Meeting of Stockholders indicating the balance of the Non-Employee Director’s
accounts as of the end of business on the date of the Annual Meeting (giving
effect to the grants and transfers made as of such date).

 

ARTICLE
11

 

ADMINISTRATION

 

Except with respect to
Discretionary Grants, the Plan is intended to be self-effectuating and does not
require the exercise of discretion by the Company. With respect to the
Discretionary Grants, and otherwise, to the extent necessary, the Nominating
& Governance Committee of the Board shall act as the Plan administrator for
purposes of resolving any ambiguities, claims or disputes arising with respect
to the Plan or any deferrals under the Plan. As such the Nominating &
Governance Committee is authorized to make any rulings and determinations that
it deems to be appropriate and consistent with the terms and intent of the Plan
and all such rulings and determinations shall be final and binding upon all
parties for all purposes. Any member of the Nominating & Governance
Committee making a claim or request to the Nominating & Governance
Committee with respect to his or her rights or interests under the Plan shall
excuse himself or herself from the Nominating & Governance Committee’s
determination with respect to such claim or request.

 

ARTICLE
12

 

AMENDMENT
AND TERMINATION

 

The Plan may, at any
time, be amended, modified or terminated by the Board. No amendment,
modification or termination shall, without the consent of a Non-Employee
Director, adversely affect such Non-Employee Director’s rights with respect to
amounts accrued under his or her deferral account.

 

ARTICLE
13

 

NOTICES

 

All notices and forms to
be submitted to the Company hereunder shall be delivered to the attention of
the Secretary of the Company.

 

7EXHIBIT 10.2

 

THE NEW YORK TIMES COMPANY

1991 EXECUTIVE CASH BONUS PLAN

AS AMENDED THROUGH OCTOBER 11, 2007

 

1.    NAME
AND GENERAL PURPOSE

 

The name of this plan is The New York Times Company 1991 Executive Cash
Bonus Plan (hereinafter called the “Plan”). The purpose of the Plan is to
enable the Company (as hereinafter defined) to retain and attract executives
who enhance its tradition and contribute to its success by their ability,
ingenuity and industry, and to enable them to participate in the long-term
success and growth of the Company.

 

2.    DEFINITIONS

 

(a)                                  “Awards”—has the meaning specified in
Section 4 hereof.

 

(b)                                 “Board”—means the Board of Directors of
the Company.

 

(c)                                  “Code”—means the Internal Revenue Code of
1986, as amended.

 

(d)                                 “Code Section 409A” shall mean Section
409A of the Code (or any successor provision).

 

(e)                                  “Committee”—means the Committee referred
to in Section 3 of the Plan. If at any time no Committee shall be in office,
then the functions of the Committee specified in the Plan shall be exercised by
the non-employee members of the Board.

 

(f)                                    “Company”—means The New York Times
Company, a corporation organized under the laws of the State of New York (or
any successor corporation), and, unless the context otherwise requires, its subsidiaries
(as hereinafter defined) and other non-corporate entities in which it owns
directly or indirectly 20% or more of the equity interests. A “subsidiary”
means any corporation in which the Company possesses directly or indirectly 50%
or more of the combined voting power of all classes of stock.

 

(g)                                 “Consolidated Statement of Income”—means
the consolidated statement of income (or any comparable statement, however
designated) of the Company, audited by the independent certified public
accountants of the Company and contained in the Company’s annual report to
stockholders or proxy statement.

 

(h)                                 “Income Before Income Taxes”—means the
amount designated as Income Before Income Taxes for the applicable year and
shown separately on the Consolidated Statement of Income for such year.

 

(i)                                     “Participant”—means a key employee of the
Company who is selected by the Committee to participate in any part of the Plan
from among persons who in the judgment of the Committee are key employees of
the Company. In general, key employees are those employees who have principal
responsibility for, or who contribute substantially to, the management
efficiency, editorial achievement or financial success of the Company. Only
employees of The New York Times Company, its subsidiaries and other
non-corporate entities in which it owns directly or indirectly 40% or more of
the equity interests are eligible to participate in the Plan.

 

 

(j)                                     “Retirement”—means
retirement as defined by the terms of “The New York Times Companies Pension Plan”
which became effective December 31, 1988, or any successor retirement plan,
whether or not the Participant is a member of such retirement plan, and, in the
case of employees of Affiliated Publications, Inc., or any subsidiary thereof,
who retire under the terms of the Globe Newspaper Company Retirement Plan,
which became effective January 1, 1994 (the “Globe Pension Plan”) or any
successor retirement plan, “Retirement” shall also mean retirement as defined
by the terms of the Globe Pension Plan or any successor plan.

 

(k)                                  “Specified Employee”—means any employee
who, at any time during the 12-month period ending on the identification date,
is a “specified employee” under Code Section 409A, as determined by the
Committee or its delegate. The determination of Specified Employees, including
the number and identity of persons considered Specified Employees and the
identification date, shall be made by the Committee or its delegate in
accordance with the provisions of Code Sections 416(i) and 409A and the regulations
issued thereunder.

 

(l)                                     “Stock Plan”—means the Company’s 1991
Executive Stock Incentive Plan.

 

3.    ADMINISTRATION
OF THE PLAN

 

The Plan shall be administered by the Board or the
Committee appointed by it and composed of two or more directors who are not
employees of the Company. The Committee shall be constituted so as to enable
the Plan to comply with the administration requirements of Section 162(m)(4)(C)
of the Code. The Committee shall serve at the pleasure of the Board and shall
have such powers as the Board may from time to time confer upon it.

 

PART I
AWARDS

 

4.    FORM
OF AWARDS

 

The Plan is designed to provide incentives for
Participants by the making of awards of supplemental compensation (“Awards”). The
Committee, subject to the terms and conditions hereof, may make Awards to a
Participant in any one, or in any combination, of the following forms:

 

(a)                                  Cash Awards as provided in Part IA of the
Plan (“Cash Awards”);

 

(b)                                 Annual Performance Awards as provided in
Part IB of the Plan (“Annual Performance Awards”);

 

(c)                                  Performance Awards (“Performance Awards”)
or other forms of Awards as provided in Part IC of the Plan; and

 

(d)                                 Long-Term Performance Awards as provided
in Part ID of the Plan (“Long-Term Performance Awards”).

 

Awards may be made to a Participant whether or not he
or she receives an award or option under the Stock Plan. Cash Awards,
Performance Awards and other forms of Awards pursuant to Part IC will be based
on a Participant’s performance in those areas for which the Participant is
directly responsible. Performance for this purpose may be measured by the
achievement of specific management goals such as, but not limited to, an
increase in earnings or the operating cash flow of the Company, outstanding
initiative or achievement in any department of the Company, or any other
standards specified by the Committee. Annual Performance Awards will be based
exclusively on the criteria set forth in Part IB. Long-Term Performance Awards
will be based exclusively on the

 

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criteria set forth in Part ID.

 

No Award under the Plan is payable in common stock or
preferred stock of the Company.

 

5.    MAXIMUM
AMOUNT AVAILABLE FOR THE ACCRUAL OF AWARDS FOR ANY YEAR

 

(a)                                  No accrual for Awards shall be made
hereunder (or under the Stock Plan) for any year unless cash dividends of not
less than ten cents ($.10) per share (as adjusted as hereafter provided) have
been declared on the outstanding Class A and Class B Common Stock of the
Company during such year. If at any time the Company shall take any action,
whether by stock dividend, stock split, combination of shares, or otherwise,
which results in an increase or decrease in the number of shares of Class A
and/or Class B Common Stock theretofore issued and outstanding, or the Company
reclassifies or otherwise changes its issued and outstanding Class A and/or
Class B Common Stock (other than in par value) or the Company and one or more
corporations merge and the Company is the surviving corporation of such merger,
then the Committee shall make an equitable adjustment to the provisions of this
Section 5(a) to take account of such event.

 

(b)                                 In the event that the above condition is
met for any year during the continuance of this Plan, the maximum aggregate
amount that may be accrued for Awards under the Plan and the Stock Plan for
such year shall be 4% of Income Before Income Taxes. The Committee, in its sole
discretion, may make adjustments in Income Before Income Taxes to take account
of extraordinary, unusual or infrequently occurring events and transactions,
changes in accounting principles that substantially affect the foregoing, or
such other circumstances as the Committee may determine warrant such
adjustment.

 

(c)                                  As soon as feasible after the close of
each year, the independent certified public accountants of the Company shall
determine and report the maximum amount that may be accrued for Awards for such
year under the formula described in Section 5(b), subject to the second
sentence of such Section.

 

(d)                                 If amounts are accrued in any year under
the formula described in this Section 5 and are not awarded in full in such
year under the Plan and the Stock Plan, such unawarded amounts may, in the
discretion of the Committee, be carried forward and be available for Awards
under this Plan and under the Stock Plan in any future year without regard to
the provisions of Sections 5(a) or (b) of the Plan applicable to Awards made in
such year.

 

(e)                                  Awards under the Plan for any year may
not exceed the sum of (i) the amount accrued for such year under Section 5(b)
above, plus (ii) unawarded accrued amounts carried forward from previous years
under Section 5(d) above, plus (iii) amounts that may become available for
Awards pursuant to the last sentence of Section 7(c) hereof, minus (x) the
amount of interest equivalents allocated during such year pursuant to Section
10(b) hereof, and minus (y) the amount of awards made for such year under the
Stock Plan valued as set forth in Section 13(e) of the Stock Plan (and any
interest or dividend equivalents allocated during such year pursuant to
Sections 15(c), 24 and 27A thereof).

 

6.    DETERMINATION
OF AWARDS AND PARTICIPANTS

 

(a)                                  As promptly as practicable after the end
of each year, the Committee may make Awards (other than Annual Performance
Awards and Long-Term Performance Awards, which are to be made exclusively as
set forth in Parts IB and ID, respectively) for such year and determine the
amounts to be carried forward for Awards in future years. The Committee may also,
in its discretion, make Awards (other than Annual Performance Awards and

 

3

 

Long-Term Performance Awards, which are to be made
exclusively as set forth in Parts IB and ID, respectively) prior to the end of
the year based on amounts available under clauses (ii) and (iii) of Section
5(e) and reasonable estimates of the accrual for the year in question.

 

(b)                                 The Committee shall have absolute
discretion to determine the key employees who are to receive Awards (other than
Annual Performance Awards and Long-Term Performance Awards, which are to be
made exclusively as set forth in Parts IB and ID, respectively) under the Plan
for any year and to determine the amount of such Awards based on such criteria
and factors as the Committee in its sole discretion may determine, such as the
Company’s operating cash flow and overall financial performance. Recommendations
as to the key employees who are to receive Awards (including Annual Performance
Awards and Long-Term Performance Awards) under the Plan for any year and to the
amount and form of such Awards shall, however, be made to the Committee by the
chief executive officer of the Company. The fact that an employee is selected
as eligible for an Award shall not mean, however, that such employee will
necessarily receive an Award.

 

(c)                                  A person whose employment terminates
during the year or who is granted a leave of absence during the year may, in
the discretion of the Committee and under such rules as the Committee may from
time to time prescribe, be given an Award with respect to the period of such
person’s service during such year.

 

7.    METHOD
AND TIME OF PAYMENT OF AWARDS

 

(a)                                  Awards shall be paid in full as soon as
practicable after the Award is made; provided, however, that payment of Annual
Performance Awards and Long-Term Performance Awards shall be subject to the
provisions of Parts IB and ID, respectively; and provided further, that the
payment of any or all Awards may be deferred, divided into annual installments,
or made subject to such other conditions as the Committee in its sole
discretion may authorize under such rules and regulations as may be adopted
from time to time by the Committee.

 

(b)                                 The Committee’s rules and regulations may
include procedures by which a Participant expresses a preference to the
Committee as to the form of Award or method of payment of an Award but the
final determination as to the form and the terms and conditions of any Award
shall rest solely with the Committee.

 

(c)                                  Awards deferred under the Plan shall
become payable to the Participant or, in the event of the Participant’s death,
as specified in Section 14 hereof, in such manner, at such time or times (which
may be either before or after termination of service), and subject to such conditions
as the Committee in its sole discretion shall determine. In any year the
Committee shall have the discretion to set aside, for payment in such year or
any future year, interest on any deferred Award; provided, however, that the
total amount of such interest shall be deducted from the maximum amount
available for Awards under Section 5 of the Plan. Any forfeited deferred Awards
shall be carried forward and be available for Awards in any future year without
regard to the provisions of Sections 5(a) or (b) of the Plan.

 

8.    INDIVIDUAL
AGREEMENTS

 

(a)                                  The Committee may in its discretion
require that each Participant receiving an Award enter into an agreement with
the Company which shall contain such terms and conditions as the Committee may
in its discretion request.

 

4

 

(b)                                 The Committee may cancel any unexpired,
unpaid or deferred Award at any time if the Participant is not in compliance
with all applicable provisions of the agreement referred to above, if any, and
the Plan.

 

9.    STATUS
OF PARTICIPANTS

 

No Participant in the Plan shall have any interest in
any specific assets of the Company by reason of the fact that deferred Awards
are to be recorded as being held for such Participant’s account to be paid in
installments in the future. The interest of all Participants shall derive from
and be determined solely by the terms and provisions of the Plan set forth
herein.

 

PART IA
CASH AWARDS

 

10.                               DETERMINATION OF
CASH AWARDS

 

(a)                                  Each year the Committee shall designate
those Participants who shall receive Cash Awards under this part of the Plan. Cash
Awards may be paid immediately, in installments or on a deferred date, as the
Committee in its discretion may provide.

 

(b)                                 If the Committee determines that some
portion of a Cash Award to a Participant shall be treated as a deferred Cash
Award and be payable in annual or other periodic installments, the Participant
will be notified in writing at the time such Cash Award is made when such
deferred Cash Award shall be paid and over what period of time. The Committee
shall have discretion to provide for the payment of an amount equivalent to
interest, at such rate or rates fixed by the Committee, on any deferred Cash
Award. Any amounts provided for pursuant to the preceding sentence shall become
payable in such manner, at such time or times, and subject to such conditions
as the Committee shall in its sole discretion determine; provided, however,
that (i) the time and conditions for payment shall be provided in writing to
the Participant at the time the Cash Award is granted, and (ii) the total
amount of such interest shall be deducted from the maximum amount available for
Awards under the formula described in Section 5 of the Plan.

 

(c)                                  Notwithstanding
the preceding, as required by Code Section 409A, no amount shall be delivered
with respect to a deferred Cash Award on account of a separation from service
to a Participant who is a Specified Employee on the date of separation from
service before the date which is 6 months after the date of the Participant’s
separation from service. The Committee shall have discretion to provide for the payment of an
amount equivalent to interest, at such rate or rates fixed by the Committee, on
any delayed payment. The accumulated postponed amount, with interest for
the period of delay if applicable, shall be paid to the Participant in a lump
sum payment on the 10th day after the end of the six-month period. Payment of
the accumulated postponed amount (and interest, if applicable) shall be treated
as made on the specified date if the payment is made at such date or a later
date within the same calendar year, or if later, by the 15th day of the third
month following the specified date (provided the Participant may not, directly
or indirectly, designate the year of payment).

 

If the Participant dies
during the postponement period prior to the payment of postponed amount, the
amounts withheld on account of Code Section 409A shall be paid as specified in
Section 14 hereof within 90 days of the date of Participant’s death.

 

PART IB ANNUAL PERFORMANCE AWARDS

 

5

 

 

 

11.                               DETERMINATION OF
ANNUAL PERFORMANCE AWARDS

 

(a)                                  GENERAL. Each year the Committee may make
Annual Performance Awards under this part of the Plan; provided that no
Participant may be eligible to receive an Annual Performance Award hereunder
and under the Stock Plan in the same year.

 

(b)                                 CERTAIN DEFINITIONS. For the purposes of
this Part IB, the following terms shall have the meanings specified:

 

“Affected Officers” shall mean those executive
officers of the Company whose compensation is required to be disclosed in the
Company’s annual proxy statement relating to the election of directors.

 

“Code Section 162(m)” shall mean Section 162(m) of the
Code (or any successor provision), and “Regulations” shall mean the regulations
promulgated thereunder, as from time to time in effect.

 

“Eligible Participants” shall have the meaning set
forth in subsection (c) below.

 

“Performance Adjustment” means, for any year, a factor
ranging from 0% to 200%, based upon the achievement of Performance Goal Targets
established by the Committee, that, when multiplied by an Eligible Participant’s
Target Award, determines the amount of such Eligible Participant’s Annual
Performance Award for such year.

 

“Performance Goal” means, for any year, the business
criteria selected by the Committee to measure the performance during such year
of the Company (or of a division, subsidiary or group thereof) from one or more
of the following:

 

(i)                            earnings per share of the Company for the
year;

 

(ii)                         net income of the Company for the year;

 

(iii)                      return on assets of the Company for the year (net
income of the Company for the year divided by average total assets during such
year);

 

(iv)                     return on stockholder’s equity of the
Company for the year (net income of the Company for the year divided by average
stockholder’s equity during such year);

 

(v)                        operating profit or operating margins of
the Company or of a division, subsidiary or group thereof for the year;

 

(vi)                     cash flow of the Company or of a
division, subsidiary or group thereof for the year;

 

(vii)                  increase in shareholder value as determined at the end of each year;

 

(viii)               revenue growth of the Company or of a division, subsidiary or group
thereof for the year; and

 

(ix)                       improved use of capital and/or assets of
the Company or of a division, subsidiary or group thereof for the year.

 

“Performance Goal Target” means, for any Performance
Goal, the levels of performance during a year under such Performance Goal
established by the Committee to determine the

 

6

 

Performance Adjustment to an Eligible Participant’s
Target Award for such year.

 

“Target Award” means, for any year, with respect to an
Eligible Participant, the dollar amount set by the Committee that, when
multiplied by the applicable Performance Adjustment, determines such Eligible
Participant’s Annual Performance Award.

 

(c)                                  ELIGIBILITY. Annual Performance Awards
are available each year only to Plan Participants who are designated by the
Committee, prior to March 31 of such year (or prior to such later date as
permitted by Code Section 162(m) and the Regulations), as likely to be Affected
Officers for such year, whose annual salary and bonus for such year are
expected to exceed $1,000,000 and who are not designated by the Committee as
eligible for an Annual Performance Award under the Stock Plan for such year (“Eligible
Participants”).

 

(d)                                 DETERMINATION OF ANNUAL PERFORMANCE AWARDS.
Prior to March 31 of each year (or prior to such later date as permitted by
Code Section 162(m) and the Regulations), the Committee will determine the
Eligible Participants for such year, will designate those Eligible Participants
who will be entitled to earn an Annual Performance Award for such year under
this Plan, and will establish for each such Eligible Participant for such year:
(i) a Target Award, (ii) one or more Performance Goals, and (iii) for each such
Performance Goal, a Performance Goal Target, the method by which achievement
thereof will be measured and a schedule of Performance Adjustment factors
corresponding to varying levels of Performance Goal Target achievement. In the
event more than one Performance Goal is established for any Eligible
Participant, the Committee shall at the same time establish the weighting of
each such Performance Goal in determining such Eligible Participant’s Annual
Performance Award. Notwithstanding anything in this Part IB to the contrary,
the Annual Performance Award payable to any Eligible Participant in any year
may not exceed $3.0 million.

 

(e)                                  PAYMENT OF ANNUAL PERFORMANCE AWARDS. Subject
to subsection (f) below, provided the Committee certifies the extent to which
the Performance Goal Target or Targets under the Performance Goal or Goals have
been met or exceeded, Annual Performance Awards will be paid by March 15 after
the end of the year to which they relate, unless administratively impossible to
do so. If permitted by the Regulations and Code Section 162(m), the Committee
may determine to pay a portion of an Annual Performance Award in December of
the year to which it relates. The Committee may not increase the amount of an
Annual Performance Award that would otherwise be payable upon achievement of
the Performance Target or Targets, but it may reduce any Eligible Participant’s
Annual Performance Award in its discretion. Subject to Section 6(c) above, no
Annual Performance Award will be payable to any Eligible Participant who is not
an employee of the Company on the last day of the year to which such Annual
Performance Award relates.

 

(f)                                    DEFERRAL OF ANNUAL PERFORMANCE AWARDS. If
the Committee determines that some portion of an Annual Performance Award to an
Eligible Participant shall be treated as a deferred Annual Performance Award
and be payable in annual or other periodic installments, the Eligible
Participant will be notified in writing at the time such Annual Performance
Award is granted when such deferred Annual Performance Award shall be paid and over
what period of time. The Committee shall have discretion to provide for the
payment of an amount equivalent to interest, at such rate or rates fixed by the
Committee, on any deferred Annual Performance Award. Any amounts provided for
pursuant to the preceding sentence shall become payable in such a manner, at
such time or times, and subject to such conditions as the Committee shall in
its sole discretion determine; provided,

 

7

 

however, that (i) the time and conditions for payment
shall be provided in writing to the Participant at the time the Annual
Performance Award is granted, and (ii) the total amount of such interest shall
be deducted from the maximum amount available for Awards under the formula described
in Section 5 of the Plan.

 

(g)                                 CODE SECTION 162(m). It is the intent of
the Company that Annual Performance Awards satisfy, and this Part IB be
interpreted in a manner that satisfies, the applicable requirements of Code
Section 162(m) and the Regulations so that the Company’s tax deduction for
Annual Performance Awards to Affected Officers is not disallowed in whole or in
part by operation of Code Section 162(m). If any provision of this Plan or of
any Annual Performance Award would otherwise frustrate or conflict with such
intent, that provision shall be interpreted and deemed amended so as to avoid
such conflict. To the extent of any irreconcilable conflict with such intent,
such provision shall be deemed void as applicable to Eligible Participants.

 

(h)                                 CODE SECTION 409A. To the extent
necessary to comply with Code Section 409A, no amount shall be delivered with
respect to a deferred Annual Performance Award as a result of separation from
service to an Eligible Participant
who is a Specified Employee on the date of separation from service before the
date which is 6 months after the date of the Eligible Participant’s separation
from service. The
Committee shall have discretion to provide for the payment of an amount
equivalent to interest, at such rate or rates fixed by the Committee, on any
delayed payment. The accumulated postponed amount, with interest for
the period of delay if applicable, shall be paid to the Eligible Participant in a lump sum
payment on the 10th day after the end of the six-month period. Payment of the
accumulated postponed amount (and interest, if applicable) shall be treated as
made on the specified date if the payment is made at such date or a later date
within the same calendar year, or if later, by the 15th day of the third month
following the specified date (provided the Eligible Participant may not,
directly or indirectly, designate the year of payment).

 

If the Eligible Participant dies during the
postponement period prior to the payment of postponed amount, the amounts withheld
on account of Code Section 409A shall be paid as specified in Section 14 hereof
within 90 days of the date of Eligible Participant’s death.

 

PART IC PERFORMANCE AND OTHER AWARDS

 

12.                               DETERMINATION OF
PERFORMANCE AND OTHER AWARDS

 

(a)                                  Each year the Committee in its sole
discretion may authorize other forms of Awards such as, but not limited to,
Performance Awards, if the Committee deems it appropriate to do so in order to
further the purposes of the Plan.

 

(b)                                 A “Performance Award” shall mean an Award
which entitles the Participant to receive cash or other compensation, or any
combination thereof, in an amount which depends upon the financial performance
of the Company during a stated period of more than one year. Performance for
this purpose may be measured by the growth in book value of the common stock of
the Company, an increase in per share earnings of the Company, an increase in
operating cash flow or any other indicators specified by the Committee. The
Committee shall also fix the period during which such performance is to be
measured, the value of a Performance Award for purposes of providing for the
accrual pursuant to Section 5 of the Plan and the form of payment to be made in
respect of the Performance Award.

 

8

 

PART ID LONG-TERM PERFORMANCE AWARDS

 

13.                               DETERMINATION OF
LONG-TERM PERFORMANCE AWARDS

 

(a)                                  GENERAL. Each year the Committee shall
designate those Participants who shall be eligible to receive Long-Term
Performance Awards under this part of the Plan.

 

(b)                                 CERTAIN DEFINITIONS. For purposes of this
Part ID, the following terms shall have the meanings specified:

 

“Code Section 162(m)” shall mean Section 162(m) of the
Internal Revenue Code of 1986, as amended (or any successor provision), and “Regulations”
shall mean the regulations promulgated thereunder, as from time to time in
effect.

 

“Eligible Participants” shall mean certain key
business leaders and senior management of the Company as determined in the
discretion of the Committee.

 

“Long-Term Performance Goal” means, for any
Performance Period, the business criteria selected by the Committee to measure
the performance during such Performance Period of the Company (or of a
division, subsidiary or group thereof) from one or more of the following:

 

(i)                            earnings per share of the Company for the
Performance Period;

 

(ii)                         net income of the Company for the
Performance Period;

 

(iii)                         return on assets of the Company for the Performance
Period (net income of the Company for the Performance Period divided by average
total assets for such Performance Period);

 

(iv)                        return on stockholder’s equity of the
Company for the Performance Period (net income of the Company for the
Performance Period divided by average stockholder’s equity for such Performance
Period);

 

(v)                           operating profit or operating margins of
the Company or of a division, subsidiary or group thereof for the Performance
Period;

 

(vi)                        cash flow of the Company or of a
division, subsidiary or group thereof for the Performance Period;

 

(vii)                     increase in shareholder value as determined at the end
of the Performance Period;

 

(viii)                  revenue growth of the Company or of a division, subsidiary or group
thereof for the Performance Period; and

 

(ix)                          improved use of capital and/or assets of
the Company or of a division, subsidiary or group thereof for the Performance
Period.

 

“Long-Term Performance Goal Target” means, for any
Long-Term Performance Goal, the levels of performance during a Performance
Period under such Long-Term Performance Goal established by the Committee to
determine an Eligible Participant’s maximum Long-Term Performance Award.

 

“Performance Period” means the period in excess of one
year commencing on January 1 of

 

9

 

the year in which the Committee makes the Long-Term
Performance Award to an Eligible Participant.

 

(c)                                  ELIGIBILITY. Long-Term Performance Awards
are available each year to Eligible Participants who are designated by the
Committee, prior to March 31 of such year (or prior to such later date as
permitted by Code Section 162(m) and the Regulations).

 

(d)                                 DETERMINATION OF LONG-TERM PERFORMANCE
AWARDS. Prior to March 31 of each year (or prior to such later date as
permitted by Code Section 162(m) and the Regulations), the Committee will designate
the Eligible Participants who will be entitled to earn a Long-Term Performance
Award for such Performance Period under this Plan, and will establish for each
such Eligible Participant for such Performance Period, (i) one or more
Long-Term Performance Goals, and (ii) for each such Long-Term Performance Goal,
a Long-Term Performance Goal Target and the method by which achievement thereof
will be measured. In the event that more than one Long-Term Performance Goal is
established for any Eligible Participant, the Committee shall at the same time
establish the weighting of each such Long-Term Performance Goal in determining
such Eligible Participant’s Long-Term Performance Award. Notwithstanding
anything in this Section 13 to the contrary, the Long-Term Performance Award
payable to any Eligible Participant in any Performance Period may not exceed
$3.0 million.

 

(e)                                  PAYMENT OF LONG-TERM PERFORMANCE AWARDS. Subject
to subsection (f) below, provided the Committee certifies the extent to which
the Long-Term Performance Goal Target or Targets under the Long-Term
Performance Goal or Goals have been met or exceeded, Long-Term Performance
Awards will be paid in cash by March 15 after the end of the year in which the
Performance Period ends, unless administratively impossible to do so. If
permitted by the Regulations and Code Section 162(m), the Committee may
determine to pay a portion of a Long-Term Performance Award in December of the
last year of the Performance Period to which it relates. The Committee may not
increase the amount of a Long-Term Performance Award that would otherwise be
payable upon the achievement of the Long-Term Performance Goal Target or
Targets, but it may reduce any Eligible Participant’s Long-Term Performance
Award in its discretion. Subject to Sections 6(c) and 13(g), no Long-Term
Performance Award will be payable to any Eligible Participant who is not an
employee of the Company on the last day of the Performance Period to which such
Long-Term Performance Award relates.

 

(f)                                  DEFERRAL OF LONG-TERM PERFORMANCE AWARDS.
If the Committee determines that some portion of a Long-Term Performance Award
to an Eligible Participant shall be treated as a deferred Long-Term Performance
Award and payable in annual or other periodic installments, the Eligible
Participant will be notified in writing at the time such Long-Term Performance
Award is granted when such deferred Long-Term Performance Award shall be paid
and over what period of time. The Committee shall have the discretion to
provide for the payment of an amount equivalent to interest, at such rate or
rates fixed by the Committee, on any deferred Long-Term Performance Award. Any
amounts provided for pursuant to the preceding sentence shall become payable in
such manner, at such time or times, and subject to such conditions as the
Committee shall in its sole discretion determine; provided, however, that (i)
the time and conditions for payment shall be provided in writing to the
Participant at the time the Long-Term Performance Award is granted, and (ii)  the total amount of such interest shall be
deducted from the maximum amount available for Awards under the formula
described in Section 5 of the Plan.

 

(g)                                 TERMINATION OF EMPLOYMENT BECAUSE OF
DEATH, DISABILITY OR

 

10

 

RETIREMENT. In the event that an Eligible Participant
terminates employment because of death, disability or Retirement, such Eligible
Participant, or in the event of death such person as determined in accordance
with Section 14, shall be paid a pro rata portion of such Eligible Participant’s
Long-Term Performance Award that would otherwise be payable upon the
achievement of the Long-Term Performance Goal Target or Targets had the
Participant continued employment until the end of the Performance Period. Such
pro rata Long-Term Performance Award shall be paid on the 30th day after the
end of the Performance Period to which such Long-Term Performance Award
relates.

 

(h)                                 CODE SECTION 162(m). It is the intent of
the Company that Long-Term Performance Awards satisfy, and this Section 13 be
interpreted in a manner that satisfies, the applicable requirement of Code
Section 162(m) and the Regulations so that the Company’s tax deduction for
Long-Term Performance Awards to Eligible Participants is not disallowed in
whole or in part by operation of Code Section 162(m). If any provision of this
Plan or of any Long-Term Performance Award would otherwise frustrate or
conflict with such intent, that provision shall be interpreted and deemed
amended so as to avoid such conflict. To the extent of any irreconcilable
conflict with such intent, such provision shall be deemed void as
applicable to any Participant whose compensation is subject to Code Section 162(m).

 

(i)                                   CODE SECTION 409A. To the extent
necessary to comply with Code Section 409A, no amount shall be delivered with
respect to a deferred Long-Term Performance Award as a result of separation
from service to an Eligible Participant who is a Specified Employee on the date
of separation from service before the date which is 6 months after the date of
the Eligible Participant’s separation from service. The Committee shall have
discretion to provide for the payment of an amount equivalent to interest, at
such rate or rates fixed by the Committee, on any delayed payment. The accumulated
postponed amount, with interest for the period of delay if applicable, shall be
paid to the Eligible Participant in
a lump sum payment on the 10th day after the end of the six-month period. Payment
of the accumulated postponed amount (and interest, if applicable) shall be
treated as made on the specified date if the payment is made at such date or a
later date within the same calendar year, or if later, by the 15th day of the
third month following the specified date (provided the Eligible Participant may not,
directly or indirectly, designate the year of payment).

 

If the Eligible Participant dies during the
postponement period prior to the payment of postponed amount, the amounts
withheld on account of Code Section 409A shall be paid as specified in Section
14 hereof within 90 days of the date of Eligible Participant’s death.

 

PART II GENERAL PROVISIONS

 

14.                               NON-ALIENATION OF
BENEFITS

 

Except as herein
specifically provided, no right or unpaid benefit under this Plan shall be
subject to alienation, assignment, pledge or charge and any attempt to
alienate, assign, pledge or charge the same shall be void. If any Participant
or person entitled to the benefits hereunder should attempt to alienate,
assign, pledge or charge any benefit hereunder, then such benefit shall, in the
discretion of the Committee, cease. Notwithstanding the foregoing, rights and
benefits hereunder shall pass by will or the laws of descent and distribution
in the following order: (i) to beneficiaries so designated by the Participant;
if none, then (ii) to a legal representative of the Participant; if none, then
(iii) to the persons entitled thereto as determined by a court of competent
jurisdiction. Awards so passing shall be made at such times and in such
manner as if the Participant were living.

 

11

 

15.                               WITHHOLDING OR
DEDUCTION FOR TAXES

 

If at any time specified herein for the making of any
payment to any Participant or beneficiary, any law or regulation of any
governmental authority having jurisdiction in the premises shall require the
Company to withhold, or to make any deduction for, any taxes or take any other
action in connection with the payment then to be made, such payment shall be
deferred until such withholding or deduction shall have been provided for by
the Participant or beneficiary, or other appropriate action shall have been
taken.

 

16.                               ADMINISTRATION
EXPENSES

 

The entire expense of administering this Plan shall be
borne by the Company.

 

17.                               GENERAL CONDITIONS

 

(a)                                  The Board in its discretion may from time
to time amend, suspend or terminate any or all of the provisions of this Plan,
provided that the Board may not make any amendment which materially affects the
provisions of Sections 5(a) or (b) of the Plan without the consent and approval
of the holders of a majority of the outstanding shares of Class A and Class B
Common Stock of the Company entitled to vote thereon, voting together as one
class. The foregoing provisions shall not be construed to prevent the Committee
from exercising its discretion, or to limit such discretion, to adjust the
provisions of Sections 5(a) and (b) hereof as expressly permitted thereby or
otherwise to exercise any discretion to the extent expressly authorized
hereunder.

 

(b)                                 Nothing contained in the Plan shall
prohibit the Company from establishing incentive compensation arrangements in
addition to this Plan and the Stock Plan. Payments made under any such separate
arrangements shall not be included in or considered a part of the maximum
amount available for Awards under the Plan and Stock Plan and shall not be
charged against the amount available for Awards under the Plan and Stock Plan
for any year. In the discretion of the Committee, employees shall be eligible
to participate in such other arrangements, as well as the Plan and Stock Plan,
in the same year.

 

(c)                                  Nothing in this Plan shall be deemed to
limit in any way the right of the Company to terminate a Participant’s
employment with the Company at any time.

 

(d)                                 The Committee may promulgate rules and
regulations relating to the administration and interpretation of, and
procedures under, the Plan. Any decision or action taken by the Company, the
Board or the Committee arising out of or in connection with the construction,
administration, interpretation and effect of the Plan shall be conclusive and
binding upon all Participants and any person claiming under or through any
Participant.

 

(e)                            No member of the Board or of the Committee shall be
liable for any act or action, whether of commission or omission, taken by any
other member or by any officer, agent or employee, nor for anything done or
omitted to be done by such Director except in circumstances involving actual
bad faith.

 

18.                               CODE SECTION 409A

 

It is the intent of the Company that, to the extent the Plan as to any
Award constitutes a nonqualified deferred compensation plan within the meaning
of Code Section 409A, the Plan as to such Award be interpreted in a manner that
satisfies the requirements of Code Section 409A. If any provision of the Plan
or of any Award would otherwise frustrate or conflict with such intent, that
provision shall be

 

12

 

interpreted and deemed amended so as to avoid such conflict. Without
limiting the foregoing, to the extent the Plan or Award provides the Committee
with the discretion to determine the time or form of payment of an Award
(including any earnings or interest credit), and/or defer or accelerate the
time of payment of an Award (including any earnings or interest credit), the
Committee shall exercise such discretion only at such time and in such manner
as complies with Code Section 409A. Notwithstanding anything in the Plan or any Award to the
contrary, distributions of Code Section 409A nonqualified deferred compensation
to be made upon a termination of employment may only be made upon a Code
Section 409A “separation from service” or other event permitted by Code Section
409A, and in a manner permitted by Code Section 409A or an applicable exemption.

 

19.                               TRANSITION

 

Upon the effectiveness of this Plan, and the Stock
Plan, such plans replaced the Company’s Executive Incentive Compensation Plan (“EICP”),
except that the EICP shall continue to govern options and awards of restricted
stock outstanding under the EICP. No further awards will be made under the
EICP, and all amounts accrued for Awards under the EICP and unawarded were
carried forward and made available for Awards under the Plan and Awards under
the Stock Plan.

 

20.                               EFFECTIVE DATES

 

The Plan became
effective for periods beginning after January 1, 1991 upon the approval by the
holders of a majority of the outstanding shares of Class A and Class B
Common Stock of the Company entitled to vote thereon at the 1991 Annual
Meeting, in person or by proxy, voting together as a single class. No Awards
may be granted under the Plan after December 31, 2010, or such earlier
expiration date as may be designated by resolution of the Board.

 

13

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