Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

dated as of

May 22, 2008

between

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

and

BANC OF AMERICA SECURITIES LLC

GREENWICH CAPITAL MARKETS, INC.

J.P. MORGAN SECURITIES INC.

on behalf of themselves and the Initial Purchasers listed on Schedule I hereto

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of May 22,
2008, among Transcontinental Gas Pipe Line Corporation (the “Company”), a corporation duly
organized and existing under the laws of the State of Delaware, and Banc of America Securities LLC,
Greenwich Capital Markets, Inc. and J.P. Morgan Securities Inc., acting on behalf of themselves and
the several initial purchasers listed on Schedule I hereto (the “Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement dated as of May 19, 2008,
among the Company and Banc of America Securities LLC, Greenwich Capital Markets, Inc. and
J.P. Morgan Securities Inc., as representatives of the Initial Purchasers (the “Purchase
Agreement”), which provides for the sale by the Company to the Initial Purchasers of
$250,000,000 principal amount of its 6.05% Senior Notes due 2018 (the “Securities”). The
Securities are to be issued pursuant to the provisions of an Indenture dated the date
hereof (as amended, supplemented or otherwise modified from time to time, the
“Indenture”) by and among the Company and The Bank of New York, as trustee (the
“Trustee”).

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to each Initial Purchaser and its direct and indirect transferees the
registration rights with respect to the Securities set forth in this Agreement. The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

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

     “Additional Interest” shall have the meaning set forth in Section 2(e).

     “Agreement” shall have the meaning set forth in the preamble.

     “Business Day” shall have the meaning set forth in Rule 13e-4(a)(3) under the 1934 Act.

     “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

     “Commission” shall mean the Securities and Exchange Commission.

     “Company” shall have the meaning set forth in the preamble and also includes the Company’s
successors.

 

 

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii).

     “Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant
to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean a registration statement on Form S-4 (or,
if applicable, on another appropriate form) relating to an offering of Exchange Securities pursuant
to an Registered Exchange Offer and all amendments and supplements to such registration statement,
in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “Exchange Securities” shall mean any securities issued by the Company to be offered to Holders
in exchange for Securities (pursuant to the Registered Exchange Offer or otherwise) pursuant to an
Exchange Offer Registration Statement containing terms identical to the Securities for which they
are exchanged except that (i) interest thereon shall accrue from the last date on which interest
was paid on the Securities or, if no such interest has been paid, from the date of issuance of the
Securities, and (ii) the Exchange Securities will not contain the legend appearing on the face of
the Securities in the form recited in the Indenture and will not contain terms with respect to
transfer restrictions.

     “Holder” shall mean each Initial Purchaser, for so long as it owns any Transfer Restricted
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Transfer Restricted Securities under the Indenture; provided that for purposes
of Sections 4 and 5 of this Agreement, the term “Holder” shall include Participating Broker-Dealers
(as defined in Section 4(a)).

     “Indemnified Party” shall have the meaning set forth in Section 5(c).

     “Indemnifying Party” shall have the meaning set forth in Section 5(c).

     “Indenture” shall have the meaning set forth in the preamble.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Transfer Restricted Securities; provided that, for purposes of Section 6(b), whenever
the consent or approval of Holders of a specified percentage of Transfer Restricted Securities is
required hereunder, Transfer Restricted Securities held by the Company or any of its affiliates (as
such term is defined in Rule 405 under the 1933 Act) (other than the Initial Purchasers or
subsequent Holders of Transfer Restricted Securities if such subsequent Holders are deemed to be
such affiliates solely by reason of their holding of such Transfer Restricted Securities) shall not
be considered outstanding and shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage or amount.

     “Participant” shall have the meaning set forth in Section 5(a).

     “Participating Broker-Dealer” shall have the meaning set forth in Section 4(a) hereof.

2

 

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Transfer Restricted Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including all material
incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registration Default” shall have the meaning set forth in Section 2(e).

     “Registered Exchange Offer” shall mean the exchange offer by the Company of Exchange
Securities for all Securities that are Transfer Restricted Securities pursuant to Section 2(a)
hereof.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all Commission,
stock exchange or Financial Industry Regulatory Authority registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or Transfer Restricted
Securities), (iii) all expenses of any Person in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v)
all fees and disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and, in the case of a Shelf Registration Statement, the
reasonable fees and disbursements of one counsel for the Holders (which counsel shall be selected
by the Majority Holders and which counsel may also be counsel for the Initial Purchasers) and
(viii) the fees and disbursements of the independent public accountants of the Company, including
the expenses of any special audits or “comfort” letters required by or incident to such performance
and compliance, but excluding fees of counsel to the Underwriters (other than the fees and expenses
set forth in clause (ii) above) and the Holders and underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of Transfer Restricted Securities by a
Holder.

     “Registration Statement” shall mean any registration statement of the Company that covers any
of the Exchange Securities or the Transfer Restricted Securities pursuant to the provisions of this
Agreement and all amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

     “Securities” shall have the meaning set forth in the preamble.

3

 

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 2(b) of this Agreement which covers all of the Transfer
Restricted Securities (but no other securities unless approved by the Holders of a majority of the
aggregate principal amount of outstanding Transfer Restricted Securities that are covered by such
Shelf Registration Statement) on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the Commission, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

     “TIA” shall have the meaning set forth in Section 3(l) hereof.

     “Transfer Restricted Securities” shall mean each outstanding Security until: (i) when in the
case of a Holder who was entitled to participate in the Registered Exchange Offer, an Exchange
Offer Registration Statement with respect to such Security shall have been declared effective under
the 1933 Act and either (a) such Security shall have been exchanged by a Person other than a
broker-dealer for an Exchange Security in the Registered Exchange Offer or (b) the Registered
Exchange Offer shall have been consummated and such Security was not tendered by the Holder thereof
in the Registered Exchange Offer; (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of a Security for an Exchange Security, the date on which such Exchange Security is
sold to a purchaser who receives from such broker-dealer on or prior to the date of such sale a
copy of the Prospectus contained in the Exchange Offer Registration Statement; (iii) the date on
which such Security has been effectively registered under the 1933 Act and disposed of in
accordance with the Shelf Registration Statement; or (iv) the earlier of the date (A) on which such
Security has been sold pursuant to Rule 144 under the 1933 Act under the circumstances in which any
legend borne by such Security relating to restrictions on transferability thereof, under the 1933
Act or otherwise, is entitled to be removed by the Company or pursuant to the Indenture or (B) that
is two years after the date of this Agreement.

     “Trustee” shall have the meaning set forth in the preamble.

     “Underwriter” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Registration or Underwritten Offering” shall mean a registration in which
Transfer Restricted Securities are sold to an Underwriter for reoffering to the public.

     2. Registration under the 1933 Act.

     (a) To the extent not prohibited by any applicable law or applicable interpretation of
the Staff of the Commission, the Company shall (1) file an Exchange Offer Registration
Statement on or prior to 180 days after the Closing Date covering the offer by the Company
to the Holders to exchange all of the Transfer Restricted Securities for an equal aggregate
principal amount of Exchange Securities and (2) use its commercially reasonable efforts to
cause such Exchange Offer Registration Statement to be declared effective on or prior to 270
days after the Closing Date. The Company shall

4

 

use its commercially reasonable efforts to have the Exchange Offer Registration
Statement remain effective until the closing of the Registered Exchange Offer. The Company
shall commence the Registered Exchange Offer promptly after the Exchange Offer Registration
Statement has been declared effective by the Commission and use its commercially reasonable
efforts to have the Registered Exchange Offer consummated (by issuing Exchange Securities
for all tendered, and not validly withdrawn Transfer Restricted Securities) not later than
30 Business Days, or longer, if required by the federal securities laws, after such
effective date. The Company shall commence the Registered Exchange Offer by mailing the
related exchange offer Prospectus and accompanying documents to each Holder stating, in
addition to such other disclosures as are required by applicable law:

     (i) that the Registered Exchange Offer is being made pursuant to this
Registration Rights Agreement and that all Transfer Restricted Securities validly
tendered will be accepted for exchange;

     (ii) the dates of acceptance for exchange (which shall be a period of at least
20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

     (iii) that any Transfer Restricted Security not tendered will remain
outstanding and continue to accrue interest, but will not retain any rights under
this Agreement;

     (iv) that Holders electing to have a Transfer Restricted Security exchanged
pursuant to the Registered Exchange Offer will be required to surrender such
Transfer Restricted Security, together with the enclosed letters of transmittal, to
the institution and at the address specified in the notice prior to the close of
business on the last Exchange Date; and

     (v) that Holders will be entitled to withdraw their election, not later than
the close of business on the last Exchange Date, by sending to the institution and
at the address (located in the Borough of Manhattan, The City of New York) specified
in the notice, a telegram, telex, facsimile transmission or letter setting forth the
name of such Holder, the principal amount of Transfer Restricted Securities
delivered for exchange and a statement that such Holder is withdrawing his election
to have such Transfer Restricted Securities exchanged.

As soon as practicable after the last Exchange Date, the Company shall:

     (A) accept for exchange Transfer Restricted Securities or portions
thereof tendered and not validly withdrawn pursuant to the Registered
Exchange Offer; and

     (B) deliver, or cause to be delivered, to the Trustee for cancellation
all Transfer Restricted Securities or portions thereof so accepted for
exchange by the Company and issue and cause the Trustee to promptly
authenticate and deliver to each Holder an Exchange Security

5

 

equal in aggregate principal amount to the aggregate principal amount
of the Transfer Restricted Securities surrendered by such Holder.

     The Company shall use its commercially reasonable efforts to complete the Registered
Exchange Offer as provided above and shall comply with the applicable requirements of the
1933 Act, the 1934 Act and other applicable laws and regulations in connection with the
Registered Exchange Offer. The Registered Exchange Offer shall not be subject to any
conditions, other than that the Registered Exchange Offer does not violate applicable law or
any applicable interpretation of the Staff of the Commission. The Company shall inform the
Initial Purchasers of the names and addresses of the Holders to whom the Registered Exchange
Offer is made, and the Initial Purchasers shall have the right, subject to applicable law,
to contact such Holders and otherwise facilitate the tender of Transfer Restricted
Securities in the Registered Exchange Offer.

     If, during the period the Exchange Offer Registration Statement is effective, an event
occurs which makes any statement made in such Exchange Offer Registration Statement or the
related Prospectus untrue in any material respect or which requires the making of any
changes in such Exchange Offer Registration Statement or Prospectus in order to make the
statements therein not misleading, the Company shall use its commercially reasonable efforts
to prepare and file with the Commission a supplement or post-effective amendment to the
Exchange Offer Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter delivered to
the purchasers of the Transfer Restricted Securities, such Prospectus will not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading. The Company agrees to notify the Holders to suspend the exchange of the Transfer
Restricted Securities as promptly as practicable after the occurrence of such an event, and
the Holders hereby agree to suspend such exchange until the Company has amended or
supplemented the Prospectus to correct such misstatement or omission.

     (b) If (i) the Company is not (A) required to file the Exchange Offer Registration
Statement or (B) permitted to consummate the Registered Exchange Offer because the
Registered Exchange Offer is not permitted by applicable law or applicable interpretation of
the Staff of the Commission; or (ii) any Holder of Transfer Restricted Securities notifies
the Company prior to the 20th day following the consummation of the Registered Exchange
Offer that: (A) it is prohibited by law or applicable interpretation of the Staff of the
Commission from participating in the Registered Exchange Offer, (B) it may not resell the
Exchange Securities acquired by it in the Registered Exchange Offer to the public without
delivering a Prospectus and the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for such resales or (C) it is a broker-dealer and
owns Securities acquired directly from the Company or an affiliate of the Company, the
Company shall (x) use its commercially reasonable efforts to file with the Commission within
60 days after such filing obligation arises (or, if later, the date by which the Company is
obligated to file an Exchange Offer Registration Statement) a Shelf Registration Statement
providing for the resale by the Holders (other than those who fail to comply with the
paragraph immediately following clause (p) of Section 3) of

6

 

all of their Transfer Restricted Securities and (y) use its commercially reasonable
efforts to cause such Shelf Registration Statement to be declared effective by the
Commission on or prior to 180 days after such filing obligation arises (or, if later, the
date by which the Company is obligated to use its commercially reasonable efforts to have
the Exchange Offer Registration Statement declared effective). If the Company is required to
file a Shelf Registration Statement solely as a result of the matters referred to in clause
(ii) of the preceding sentence, the Company shall use it commercially reasonable efforts to
file and have declared effective by the Commission both an Exchange Offer Registration
Statement pursuant to Section 2(a) with respect to all Transfer Restricted Securities and a
Shelf Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to reoffers and resales of Transfer
Restricted Securities held by the Holders who must deliver the related Prospectus. Subject
to the following paragraph, the Company agrees to use its commercially reasonable efforts to
keep the Shelf Registration Statement continuously effective until the date that is two
years from the date of this Agreement or such shorter period that will terminate when all of
the Transfer Restricted Securities covered by the Shelf Registration Statement have been
sold pursuant to the Shelf Registration Statement or cease to be Transfer Restricted
Securities within the meaning of this Agreement. The Company further agrees to supplement
or amend the Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such Shelf
Registration Statement, the 1933 Act or any other rules and regulations thereunder for shelf
registration or if reasonably requested by a Holder with respect to information relating to
such Holder, and to use its commercially reasonable efforts to cause any such amendment to
be declared effective by the Commission and such Shelf Registration Statement to become
usable as soon as thereafter practicable. The Company agrees to furnish to the Holders of
Transfer Restricted Securities copies of any such supplement or amendment promptly after its
being used or filed with the Commission.

     Notwithstanding anything to the contrary in this Agreement, the Company, upon advising
the Initial Purchasers and each Holder, may suspend the use of the Prospectus included in
any Shelf Registration Statement in the event that and for periods of time not to exceed 30
consecutive days and for no more than 60 days during any 365 day period in which such
suspensions are in effect (each such period, a “Suspension Period”) if (i) an event or
circumstance occurs and is continuing as a result of which the Shelf Registration Statement,
the related Prospectus or any document incorporated therein by reference as then amended or
supplemented or proposed to be filed would, in the good faith judgment of the Company,
contain an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, and (ii)(A) the Company determines in its good faith judgment
that the disclosure of such event at such time would have a material adverse effect on the
business, operations or prospects of the Company or (B) the disclosure otherwise relates to
a material business transaction or development which has not been publicly disclosed;
provided, however, that upon the termination of such Suspension Period, the Company shall
promptly advise the Initial Purchasers and each Holder that such Suspension Period has been
terminated.

7

 

     (c) The Company shall pay all Registration Expenses in connection with the registration
pursuant to Section 2(a) or Section 2(b). Each Holder shall pay all underwriting discounts,
if any, and commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder’s Transfer Restricted Securities pursuant to a Shelf Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become
effective unless it has been declared effective by the Commission; provided, however, that
if after it has been declared effective, the offering of Transfer Restricted Securities
pursuant to a Shelf Registration Statement is interfered with by any stop order, injunction
or other order or requirement of the Commission or any other governmental agency or court,
such Registration Statement will be deemed not to have become effective during the period of
such interference until the offering of Transfer Restricted Securities pursuant to such
Registration Statement may legally resume.

     (e) The Company and the Initial Purchasers agree that the Holders will suffer damages
if the Company fails to fulfill its obligations under Section 2(a) or Section 2(b) hereof
and that it would not be feasible to ascertain the extent of such damages with precision.
Accordingly, the Company agrees that if:

     (i) the Exchange Offer Registration Statement is not filed with the Commission
on or prior to the 180th day following the Closing Date,

     (ii) the Exchange Offer Registration Statement is not declared effective by the
Commission on or prior to the 270th day following the Closing Date,

     (iii) the Registered Exchange Offer is not completed on or prior to the
30th Business Day following the date the Exchange Offer Registration
Statement is declared effective, or

     (iv) the Shelf Registration Statement is required to be filed but is not filed
or declared effective within the respective time periods set forth herein or the
Shelf Registration Statement or an Exchange Offer Registration Statement is declared
effective but thereafter ceases to be effective or usable (other than during a
Suspension Period) prior to the date that is two years after the date of this
Agreement other than after the Transfer Restricted Securities have been disposed of
under the Shelf Registration Statement or cease to be Transfer Restricted
Securities, without being succeeded within two Business Days by a post-effective
amendment which cures the failure and that is itself immediately declared effective,

(each such event referred to in clauses (i) through (iv) a “Registration Default”),
Additional Interest (“Additional Interest”) will accrue on the affected Transfer Restricted
Securities. The rate of Additional Interest will be one-quarter of one percent (0.25%) per
annum on the principal amount of Transfer Restricted Securities held by

8

 

such Holder for the first 90-day period immediately following the occurrence of a
Registration Default, increasing by an additional one-quarter of one percent (0.25%) per
annum on the principal amount of affected Transfer Restricted Securities with respect to
each subsequent 90-day period thereafter up to a maximum amount of Additional Interest for
all Registration Defaults of one-half of one percent (0.50%) per annum on the principal
amount of Transfer Restricted Securities, from and including the date on which any such
Registration Default shall occur, to but excluding the earlier of (1) the date on which all
Registration Defaults have been cured or (2) the date on which such affected Transfer
Restricted Securities cease to be Transfer Restricted Securities within the meaning of this
Agreement.

     Notwithstanding the foregoing, (1) the amount of Additional Interest payable shall not
increase because more than one Registration Default has occurred and is pending and (2) a
Holder of Transfer Restricted Securities or Exchange Securities who is not entitled to the
benefits of the Shelf Registration Statement (i.e., such Holder has not elected to including
information) shall not be entitled to Additional Interest with respect to a Registration
Default that pertains to the Shelf Registration Statement.

     (f) The Company shall notify the Trustee within one Business Day after each date on
which an event occurs in respect of which Additional Interest is required to be paid. Any
amounts of Additional Interest due pursuant to this Section 2 will be payable in addition to
any other interest payable from time to time with respect to the Transfer Restricted
Securities in cash semi-annually on the interest payment dates specified in the Indenture
(to the holders of record as specified in the Indenture), commencing with the first such
interest payment date occurring after any such Additional Interest commences to accrue. The
amount of Additional Interest will be determined in a manner consistent with the calculation
of interest under the Indenture.

     (g) Without limiting the remedies available to the Holders, the Company acknowledges
that any failure by the Company to comply with its obligations under Section 2(a) and
Section 2(b) hereof may result in material irreparable injury to the Holders for which there
is no adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, the Initial Purchasers or any
Holder may obtain such relief as may be required to specifically enforce the Company’s
obligations under Section 2(a) and Section 2(b) hereof.

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the Registration Statements
pursuant to Section 2(a) and Section 2(b) hereof, the Company shall as expeditiously as possible
(provided, however, that the Company shall not be required to take actions more promptly than
required by Sections 2(a) and 2(b)):

     (a) prepare and file with the Commission a Registration Statement on the appropriate
form under the 1933 Act, which form shall (x) be selected by the Company, (y) in the case of
a Shelf Registration, be available for the sale of the Transfer Restricted Securities by the
selling Holders thereof and (z) comply as to form in all material respects

9

 

with the applicable requirements of the 1933 Act and rules and regulations promulgated
thereunder and include all financial statements required by the Commission to be filed
therewith, and use commercially reasonable efforts to cause such Registration Statement to
be declared effective by the Commission and remain effective in accordance with Section 2
hereof;

     (b) prepare and file with the Commission such amendments and post-effective amendments
to each Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period, cause each Prospectus to be supplemented by any
required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the 1933 Act and keep each Prospectus current during the period described under
Section 4(3) and Rule 174 under the 1933 Act that is applicable to transactions by brokers
or dealers with respect to the Transfer Restricted Securities or Exchange Securities;

     (c) in the case of a Shelf Registration, furnish to each Holder of Transfer Restricted
Securities, to counsel for the Initial Purchasers, to counsel for the Holders and to each
Underwriter of an Underwritten Offering of Transfer Restricted Securities, if any, without
charge, as many copies of each Prospectus, including each preliminary Prospectus and any
amendment or supplement thereto and such other documents as such Holder or Underwriter may
reasonably request, in order to facilitate the public sale or other disposition of the
Transfer Restricted Securities; and, subject to Section 3(i), the Company consents to the
use of such Prospectus and any amendment or supplement thereto in accordance with applicable
law by each of the selling Holders of Transfer Restricted Securities and any such
Underwriters in connection with the offering and sale of the Transfer Restricted Securities
covered by and in the manner described in such Prospectus or any amendment or supplement
thereto in accordance with applicable law;

     (d) use its commercially reasonable efforts to register or qualify the Transfer
Restricted Securities under all applicable state securities or blue sky laws of such
jurisdictions as any Holder of Transfer Restricted Securities covered by a Registration
Statement shall reasonably request in writing by the time the applicable Registration
Statement is declared effective by the Commission, to cooperate with such Holders in
connection with any filings required to be made with the National Association of Securities
Dealers, Inc. and do any and all other acts and things which may be reasonably necessary or
advisable to enable such Holder to consummate the disposition in each such jurisdiction of
such Transfer Restricted Securities owned by such Holder; provided, however, that the
Company shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(d), (ii) file any general consent to service of process or (iii) subject
itself to taxation in any such jurisdiction if it is not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Transfer Restricted
Securities, counsel for the Holders and counsel for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) promptly and, if requested by any such Holder
or counsel, confirm such notice in writing, (i) when a Registration Statement has been
declared effective and when any post-effective amendment thereto has been filed

10

 

and is declared effective, (ii) of any request by the Commission or any state
securities authority for amendments and supplements to a Registration Statement and
Prospectus or for additional information after the Registration Statement has become
effective, (iii) of the issuance by the Commission or any state securities authority of any
stop order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if, between the effective date of a Registration
Statement and the closing of any sale of Transfer Restricted Securities covered thereby, the
Company receives any notification with respect to the suspension of the qualification of the
Transfer Restricted Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the happening of any event during the period a Shelf
Registration Statement is effective which makes any statement made in such Shelf
Registration Statement or the related Prospectus untrue in any material respect or which
requires the making of any changes in such Registration Statement or Prospectus in order to
make the statements therein not misleading, (vi) of any determination by the Company that a
post-effective amendment to a Registration Statement would be appropriate and (vii) of any
Suspension Period;

     (f) use its commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest possible moment and
provide immediate notice to each Holder of the withdrawal of any such order;

     (g) in the case of a Shelf Registration, furnish to each Holder of Transfer Restricted
Securities, without charge, at least one conformed copy of each Registration Statement and
any post-effective amendment thereto (without documents incorporated therein by reference or
exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of Transfer
Restricted Securities to facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities (if such Securities are certificated) to be sold
and not bearing any restrictive legends (unless required by applicable securities laws) and
enable such Transfer Restricted Securities to be in such denominations (consistent with the
provisions of the Indenture) and registered in such names as the selling Holders may
reasonably request at least two Business Days prior to the closing of any sale of Transfer
Restricted Securities;

     (i) in the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(e)(v) or (vii) hereof, use its commercially reasonable efforts to prepare and
file with the Commission a supplement or post-effective amendment to a Registration
Statement or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of the
Transfer Restricted Securities, such Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The Company
agrees to notify the Holders to suspend use of the Prospectus as promptly as practicable
after the occurrence of such an event, and the Holders hereby agree to suspend use of the
Prospectus until the Company has amended or supplemented

11

 

the Prospectus to correct such misstatement or omission and has furnished copies of the
amended or supplemented Prospectus to the Holders or until the Company notifies the Holders
that the sale of the Transfer Restricted Securities may be resumed;

     (j) a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement to a
Prospectus (except any amendment or supplement solely to add additional selling
securityholders), provide copies of such document to the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, the Holders and their counsel)
and make such representatives of the Company as shall be reasonably requested by the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders
or their counsel) available for discussion of such document, and shall not at any time file
or make any amendment to the Shelf Registration Statement, any Prospectus or any amendment
of or supplement to a Shelf Registration Statement or a Prospectus (except any amendment or
supplement solely to add additional selling securityholders) of which the Initial Purchasers
and their counsel (and, in the case of a Shelf Registration Statement, the Holders or their
counsel) have not been previously advised and furnished a copy or to which the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders
or their counsel) shall reasonably object;

     (k) obtain a CUSIP number for all Exchange Securities or Transfer Restricted
Securities, as the case may be, not later than the effective date of the applicable
Registration Statement;

     (l) cause the Indenture to be qualified under the Trust Indenture Act of 1939, as
amended (the “TIA”), in connection with the registration of the Exchange Securities or
Transfer Restricted Securities, as the case may be, and cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for the Indenture to be
so qualified in accordance with the terms of the TIA and execute, and use commercially
reasonable best efforts to cause the Trustee to execute, all documents as may be required to
effect such changes and all other forms and documents required to be filed with the
Commission to enable the Indenture to be so qualified in a timely manner;

     (m) in the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Transfer Restricted Securities, any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement, and
attorneys and accountants designated by the Holders, at reasonable times and in a reasonable
manner, all financial and other records, pertinent documents and properties of the Company
and cause the respective officers, directors and employees of the Company to supply all
information reasonably requested by any such representative, Underwriter, attorney or
accountant in connection with a Shelf Registration Statement, in each case, that would
customarily be reviewed or examined in connection with “due diligence” review of the
Company;

     (n) use its reasonable best efforts to cause the Exchange Securities to continue to be
rated by two nationally recognized statistical rating organizations (as such term is

12

 

defined in Rule 436(g)(2) under the 1933 Act), if the Transfer Restricted Securities
have been rated;

     (o) if reasonably requested by any Holder of Transfer Restricted Securities covered by
a Registration Statement, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such Holder
reasonably requests to be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as reasonably practicable
after the Company has received notification of the matters to be incorporated in such
filing; and

     (p) in the case of a Shelf Registration, enter into such customary agreements and take
all such other actions in connection therewith (including those reasonably requested by the
Holders of a majority of the Transfer Restricted Securities being sold thereunder) in order
to expedite or facilitate the disposition of such Transfer Restricted Securities thereunder
including, but not limited to, pursuant to an Underwritten Offering and in such connection,
(i) to the extent possible, make such representations and warranties to the Holders and any
Underwriters of such Transfer Restricted Securities with respect to the business of the
Company, the Registration Statement, Prospectus and documents incorporated by reference or
deemed incorporated by reference, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings and confirm the same
if and when requested, (ii) obtain opinions of counsel to the Company (which counsel and
opinions, in form, scope and substance, shall be reasonably satisfactory to the Holders of a
majority in principal amount of the Transfer Restricted Securities being sold under such
Shelf Registration Statement, such Underwriters and their respective counsel) addressed to
each selling Holder and Underwriter of Transfer Restricted Securities, covering the matters
customarily covered in opinions requested in underwritten offerings, (iii) obtain “comfort”
letters from the independent certified public accountants of the Company (and, if necessary,
any other certified public accountant of any subsidiary of the Company, or of any business
acquired by the Company for which financial statements and financial data are or are
required to be included in the Registration Statement) addressed to each selling Holder and
Underwriter of Transfer Restricted Securities, such letters to be in customary form and
covering matters of the type customarily covered in “comfort” letters in connection with
underwritten offerings, and (iv) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority in principal amount of the Transfer
Restricted Securities being sold under such Shelf Registration Statement or by the
Underwriters, and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Company made pursuant to
clause (i) above and to evidence compliance with any customary conditions contained in an
underwriting agreement.

     In the case of a Shelf Registration Statement, the Company may require each Holder of
Transfer Restricted Securities to furnish to the Company such information regarding the
Holder and the proposed distribution by such Holder of such Transfer Restricted Securities
as the Company may from time to time reasonably request in writing. No Holder of Transfer
Restricted Securities may include its Transfer Restricted

13

 

Securities in such Shelf Registration Statement unless and until such Holder furnishes
such information to the Company. Each Holder including Transfer Restricted Securities in a
Shelf Registration Statement shall agree to furnish promptly to the Company all information
regarding such Holder and the proposed distribution by such Holder of such Transfer
Restricted Securities required to make the information previously furnished to the Company
by such Holder not materially misleading.

     In connection with an Exchange Offer Registration, each Holder exchanging Securities
for Exchange Securities shall be required to represent that (i) the Exchange Securities are
being obtained in the ordinary course of business of the Person receiving such Exchange
Securities, whether or not such Person is a Holder, (ii) neither such Holder nor any such
other Person has an arrangement or understanding with any Person to participate in the
distribution of Exchange Securities, (iii) other than as set forth in Section 4, if the
Holder is not a broker-dealer, or is a broker-dealer but will not receive Exchange
Securities for its own account in exchange for Securities, neither the Holder nor any such
other Person is engaged in or intends to participate in a distribution of the Exchange
Securities and (iv) neither the Holder nor any such other Person is an “affiliate” of the
Company within the meaning of Rule 405 under the Securities Act or, if such Person is an
“affiliate,” that such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable.

     In the case of a Shelf Registration, each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Section
3(e)(v) hereof or of a Suspension Period, such Holder will forthwith discontinue disposition
of Transfer Restricted Securities pursuant to a Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(i)
hereof, and, if so directed by the Company, such Holder will destroy or deliver to the
Company (at its expense) all copies in its possession, other than permanent file copies then
in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities
current at the time of receipt of such notice.

     If the Company shall give any such notice to suspend the disposition of Transfer
Restricted Securities pursuant to a Registration Statement, the Company shall extend the
period during which the Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have received copies
of the supplemented or amended Prospectus necessary to resume such dispositions.

     The Holders of Transfer Restricted Securities covered by a Shelf Registration Statement
who desire to do so may sell such Transfer Restricted Securities in an Underwritten
Offering. In any such Underwritten Offering, the investment banker or investment bankers and
manager or managers (the “Underwriters”) that will administer the offering will be selected
by the Majority Holders of the Transfer Restricted Securities included in such offering,
provided that such Underwriters shall be reasonably acceptable to the Company.

14

 

     4. Participation of Broker-Dealers in Registered Exchange Offer.

     (a) The parties hereto understand that the Staff of the Commission has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Registered Exchange Offer in exchange for Securities that were acquired by such
broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”), may be deemed to be an “underwriter” within the meaning of the 1933 Act and
must deliver a prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Securities.

     The Company understands that it is currently the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of
distribution containing a statement to the above effect and the means by which Participating
Broker-Dealers may resell the Exchange Securities, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Securities owned by them, such
Prospectus may be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the 1933 Act in connection with resales of Exchange Securities for
their own accounts, so long as the Prospectus otherwise meets the requirements of the 1933
Act.

     (b) In light of the above, notwithstanding the other provisions of this Agreement, the
Company agrees that the provisions of this Agreement as they relate to a Shelf Registration
shall also apply to an Exchange Offer Registration to the extent, and with such reasonable
modifications thereto as may be, reasonably requested by the Initial Purchasers or by one or
more Participating Broker-Dealers, in each case as provided in clause (ii) below, in order
to expedite or facilitate the disposition of any Exchange Securities by Participating
Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above;
provided, that:

     (i) the Company shall not be required to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), for a period exceeding 180 days after the last
Exchange Date (as such period may be extended pursuant to the penultimate paragraph
of Section 3 of this Agreement) and Participating Broker-Dealers shall not be
authorized by the Company to deliver and shall not deliver such Prospectus after
such period in connection with the resales contemplated by this Section 4; and

     (ii) the application of the Shelf Registration procedures set forth in Section
3 of this Agreement to an Exchange Offer Registration, to the extent not required by
the positions of the Staff of the Commission or the 1933 Act and the rules and
regulations thereunder, will be in conformity with the reasonable request in writing
to the Company by the Initial Purchasers or with the reasonable request in writing
to the Company by one or more broker-dealers who certify to the Initial Purchasers
and the Company in writing that they anticipate that they will be Participating
Broker-Dealers; and provided further, that, in connection with such application of
the Shelf Registration procedures set forth in Section 3 to an

15

 

Exchange Offer Registration, the Company shall be obligated (x) to deal only
with the Initial Purchasers, as representatives of the Participating Broker-Dealers,
unless they elect not to act as such representatives, (y) to pay the fees and
expenses of only one counsel representing the Participating Broker-Dealers, which
will be counsel to the Initial Purchasers unless such counsel elects not to so act
and (z) to cause to be delivered only one, if any, “comfort” letter with respect to
the Prospectus in the form existing on the last Exchange Date and with respect to
each subsequent amendment or supplement, if any, effected during the period
specified in clause (i) above.

     (c) The Initial Purchasers shall have no liability to the Company, other than as
Holders in accordance with the terms hereof, or to any other Holder with respect to any
request that they may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution.

     (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each
Holder and each Person, if any, who controls the Initial Purchasers or any Holder within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
common control with, or is controlled by, the Initial Purchasers or any Holder (each, a
“Participant”), from and against all losses, claims, damages and liabilities (including,
without limitation, any legal fees or other expenses reasonably incurred by a Participant in
connection with defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment thereto) pursuant to which Exchange Securities or Transfer
Restricted Securities were registered under the 1933 Act, including all documents
incorporated therein by reference, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or caused by any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) forming a part of such Registration
Statement, or caused by any omission or alleged omission to state therein a material fact
necessary to make the statements therein in the light of the circumstances under which they
were made not misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or omission
based upon and in conformity with information relating to the Initial Purchasers or any
Holder, as the case may be, furnished to the Company in writing by such Initial Purchasers
or selling Holder expressly for use therein. In connection with any Underwritten Offering
permitted by Section 3, the Company will also enter into an underwriting agreement pursuant
to which the Company will agree to indemnify the Underwriters, if any, selling brokers,
dealers and similar securities industry professionals participating in such Underwritten
Offering, their officers and directors and each Person who controls such Persons (within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act) to the same
extent as provided above with respect to the indemnification of the Holders, if requested in
connection with any Registration Statement for such Underwritten Offering.

16

 

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Initial Purchasers and the other selling Holders, and each of their respective
directors and officers who sign the Registration Statement and each Person, if any, who
controls the Company, the Initial Purchasers and any other selling Holder within the meaning
of either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same extent as the
foregoing indemnity from the Company to the Initial Purchasers and the Holders pursuant to
Section 5(a), but only with reference to information relating to such Holder furnished to
the Company in writing by such Holder expressly for use in any Registration Statement (or
any amendment thereto) or any Prospectus (or any amendment or supplement thereto).

     (c) In case any proceeding (including any governmental investigation) shall be
instituted involving any Person in respect of which indemnity may be sought pursuant to
either paragraph (a) or paragraph (b) above, such Person (the “Indemnified Party”) shall
promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing, but the failure to so promptly notify the Indemnifying Party shall not
negate the obligation to so indemnify such Indemnified Party unless the Indemnifying Party
is materially prejudiced by such delay, and the Indemnifying Party, upon request of the
Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party to
represent the Indemnified Party and any others the Indemnifying Party may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such proceeding.
In any such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party have mutually
agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the Indemnifying Party and the Indemnified
Party and, in the opinion of counsel to the Indemnifying Party, representation of both
parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the Indemnifying Party shall not, in
connection with any proceeding or related proceedings in the same jurisdiction, be liable
for (a) the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Initial Purchasers and all Persons, if any, who control the Initial
Purchasers within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934
Act, (b) the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Company, its directors, its officers who sign the Registration Statement
and each Person, if any, who controls the Company within the meaning of either such Section
and (c) the fees and expenses of more than one separate firm (in addition to any local
counsel) for all Holders and all Persons, if any, who control any Holders within the meaning
of either such Section, and that all such fees and expenses shall be reimbursed as they are
incurred. In such case involving the Initial Purchasers and Persons who control the Initial
Purchasers, such firm shall be designated in writing by the Initial Purchasers. In such case
involving the Holders and such Persons who control Holders, such firm shall be designated in
writing by the Majority Holders. In all other cases, such firm shall be designated by the
Company. The Indemnifying Party shall not be liable for any settlement of any proceeding
effected without its written consent but, if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified
Party from and against any

17

 

loss or liability by reason of such settlement or judgment. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any settlement of
any pending or threatened proceeding in respect of which such Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement (i) includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such proceeding and (ii) does not
include a statement as to, or admission of, fault, culpability or failure to act by or on
behalf of such Indemnified Person.

     (d) If the indemnification provided for in paragraph (a) or paragraph (b) of this
Section 5 is unavailable to an Indemnified Party or insufficient in respect of any losses,
claims, damages or liabilities, then each Indemnifying Party under such paragraph, in lieu
of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or liabilities
in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party
or parties on the one hand and of the Indemnified Party or parties on the other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of
the Company and the Holders will be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company or by the
Holders and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Holders’ respective obligations to
contribute pursuant to this Section 5(d) are several in proportion to the respective
principal amount of Transfer Restricted Securities of the applicable Holder that were
registered pursuant to a Registration Statement.

     (e) The Company and each Holder agree that it would not be just or equitable if
contribution pursuant to Section 5(d) above were determined by pro rata allocation or by any
other method of allocation that does not take account of the equitable considerations
referred to in Section 5(d) above. The amount paid or payable by an Indemnified Party as a
result of the losses, claims, damages and liabilities referred to in Section 5(d) above
shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such Indemnified Party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 5, no
Holder shall be required to contribute any amount in excess of the amount by which the total
price at which Transfer Restricted Securities were sold by such Holder exceeds the amount of
any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. The
remedies provided for in this Section 5 are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any Indemnified Party at law or in equity.

18

 

     The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of the Initial Purchasers, any Holder or any
Person controlling the Initial Purchasers or any Holder, or by or on behalf of the Company,
its officers or directors or any Person controlling the Company, (iii) acceptance of any of
the Exchange Securities or (iv) any sale of Transfer Restricted Securities pursuant to a
Shelf Registration Statement.

     6. Miscellaneous.

     (a) No Inconsistent Agreements. The Company has not entered into, and on or after the
date of this Agreement will not enter into, any agreement which is inconsistent with the
rights granted to the Holders of Transfer Restricted Securities in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder
do not in any way conflict with and are not inconsistent with the rights granted to the
holders of the Company’s other issued and outstanding securities under any such agreements.

     (b) Amendments and Waivers. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of at least a majority in aggregate principal amount of the
outstanding Transfer Restricted Securities affected by such amendment, modification,
supplement, waiver or consent; provided, however, that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of Section 5 hereof or
this paragraph (b) shall be effective as against any Holder of Transfer Restricted
Securities unless consented to in writing by such Holder.

     (c) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, facsimile or any
courier guaranteeing overnight delivery (i) if to a Holder, at the most current address
given by such Holder to the Company by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect to the Initial
Purchasers, the address set forth in the Purchase Agreement and (ii) if to the Company,
initially at the Company’s address set forth in the Purchase Agreement and thereafter at
such other address, notice of which is given in accordance with the provisions of this
Section 6(c).

     All such notices and communications shall be deemed to have been duly given at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the
mail, postage pre-paid, if mailed; when receipt is acknowledged, if sent by facsimile; and
on the next Business Day if timely delivered to an air courier guaranteeing overnight
delivery.

     Copies of all such notices, demands, or other communications shall be concurrently
delivered by the Person giving the same to the Trustee, at the address specified in the
Indenture.

19

 

     (d) Successors and Assigns. This Agreement shall inure to the benefit of, and be
binding upon, the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent Holders of
Transfer Restricted Securities; provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Transfer Restricted Securities in violation of
the terms of the Securities and the Purchase Agreement. Without limiting the foregoing, if
the Company directly or indirectly consolidates with or merges with or into, or sells,
assigns, transfers, leases, conveys or otherwise disposes of all or substantially all of its
assets and properties and the assets and properties of its subsidiaries (taken as a whole)
in one or more related transactions to another person, the person formed by or surviving any
such consolidation or merger (if other than the Company) or the person to which such sale,
assignment, transfer, lease, conveyance or other disposition has been made shall expressly
assume all of the Company’s obligations of this Agreement. If any transferee of any Holder
acquires Transfer Restricted Securities, in any manner, whether by operation of law or
otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Transfer Restricted Securities such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of the terms
and provisions of this Agreement and such Person shall be entitled to receive the benefits
hereof. The Initial Purchasers shall have no liability or obligation to the Company with
respect to any failure by a Holder to comply with, or any breach by any other Holder of, any
of the obligations of such Holder under this Agreement.

     (e) Purchases and Sales of Securities. The Company shall not, and shall not permit any
of its affiliates (as defined in Rule 405 under the 1933 Act) to, resell any of the
Securities that have been acquired by any of them, except for Securities purchased by the
Company or any of its affiliates and resold in a transaction registered under the Securities
Act.

     (f) Third Party Beneficiary. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial Purchasers,
on the other hand, shall be bound by all of the terms and provisions of this Agreement and
shall have the right to enforce such agreements directly to the extent it deems such
enforcement necessary or advisable to protect its rights or the rights of Holders hereunder.

     (g) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together will constitute one and the same
agreement.

     (h) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

     (i) Governing Law. This Agreement shall be governed by the laws of the State of New
York.

20

 

     (j) Severability. In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable
the validity, legality and enforceability of any such provision in every other respect and
of the remaining provisions contained herein shall not be affected or impaired thereby.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

21

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	TRANSCONTINENTAL GAS PIPE LINE 

CORPORATION

 	 
	 	By:  	/s/  Richard D. Rodekohr
 	 
	 	 	Name:  	Richard D. Rodekohr 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Confirmed and accepted as of

the date first above written:

BANC OF AMERICA SECURITIES LLC

GREENWICH CAPITAL MARKETS, INC.

J.P. MORGAN SECURITIES INC.

on behalf of themselves and as

representatives of the several Initial

Purchasers listed on Schedule I hereto

	 	 	 	 	 
	By:  	BANC OF AMERICA SECURITIES LLC

 	 	 
	  	/s/ Lily Chang
 	 	 
	 	Name:  	Lily Chang 	 	 
	 	Title:  	Principal 	 	 
	 
	By:  	GREENWICH CAPITAL MARKETS, INC.

 	 	 
	  	/s/ Okwudiri Onyedum
 	 	 
	 	Name:  	Okwudiri Onyedum 	 	 
	 	Title:  	Senior Vice President 	 	 
	 
	By:  	J.P. MORGAN SECURITIES INC.

 	 	 
	  	/s/  Robert Bottamedi
 	 	 
	 	Name:  	Robert Bottamedi 	 	 
	 	Title:  	Vice President 	 	 
	 

[Signature Page to Registration Rights Agreement]

 

 

SCHEDULE I

Initial Purchasers:

Banc of America Securities LLC

Greenwich Capital Markets, Inc.

J.P. Morgan Securities Inc.

Calyon Securities (USA) Inc.

Barclays Capital Inc.

Mitsubishi UFJ Securities International plc

WestLB AG

The Williams Capital Group, L.P.exv10w1

EXHIBIT 10.1

FISHER COMMUNICATIONS, INC.

2008 EQUITY INCENTIVE PLAN

AS ADOPTED AND AMENDED AND RESTATED ON APRIL 30, 2008

SECTION 1. PURPOSE

     The purpose of the Fisher Communications, Inc. 2008 Equity Incentive Plan is to attract,
retain and motivate employees, officers and directors of the Company and its Related Companies by
providing them the opportunity to acquire a proprietary interest in the Company and to align their
interests and efforts to the long-term interests of the Company’s shareholders.

SECTION 2. DEFINITIONS

     Certain capitalized terms used in the Plan have the meanings set forth in Appendix A.

SECTION 3. ADMINISTRATION

3.1 Administration of the Plan

     The Plan shall be administered by the Board or the Committee, which shall be composed of two
or more directors, each of whom is a “non-employee director” within the meaning of Rule 16b-3(b)(3)
promulgated under the Exchange Act, or any successor definition adopted by the Securities and
Exchange Commission and an “outside director” within the meaning of Section 162(m) of the Code, or
any successor provision thereto.

3.2 Administration and Interpretation by Committee

     (a) Except for the terms and conditions explicitly set forth in the Plan and to the extent
permitted by applicable law, the Committee shall have full power and exclusive authority, subject
to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to
time be adopted by the Board or a Committee composed of members of the Board, to (i) select the
Eligible Persons to whom Awards may from time to time be granted under the Plan; (ii) determine the
type or types of Award to be granted to each Participant under the Plan; (iii) determine the number
of shares of Common Stock to be covered by each Award granted under the Plan; (iv) determine the
terms and conditions of any Award granted under the Plan; (v) approve the forms of notice or
agreement for use under the Plan; (vi) determine whether, to what extent and under what
circumstances Awards may be settled in cash or shares of Common Stock or canceled or suspended;
(vii) determine whether, to what extent and under what circumstances cash, shares of Common Stock
and other amounts payable with respect to an Award shall be deferred either automatically or at the
election of the Participant; (viii) interpret and administer the Plan and any instrument evidencing
an Award, notice or agreement executed or entered into under the Plan; (ix) establish such rules
and regulations as it shall deem appropriate for the proper administration of the Plan;
(x) delegate ministerial duties to such of the Company’s

 

 

employees as it so determines; and (xi) make any other determination and take any other action that
the Committee deems necessary or desirable for administration of the Plan.

     (b) In no event, however, shall the Committee have the right, without shareholder approval, to
(i) cancel or amend outstanding Options or SARs for the purpose of repricing, replacing or
regranting such Options or SARs with Options or SARs that have a purchase or grant price that is
less than the purchase or grant price for the original Options or SARs except in connection with
adjustments provided in Section 15, or (ii) issue an Option or amend an outstanding Option to
provide for the grant or issuance of a new Option on exercise of the original Option.

     (c) The effect on the vesting of an Award of a Company-approved leave of absence or a
Participant’s working less than full-time shall be determined by the Company’s chief human
resources officer or other person performing that function or, with respect to directors or
executive officers, by the Committee, whose determination shall be final.

     (d) Decisions of the Committee shall be final, conclusive and binding on all persons,
including the Company, any Participant, any shareholder and any Eligible Person. A majority of the
members of the Committee may determine its actions.

SECTION 4. SHARES SUBJECT TO THE PLAN

4.1 Authorized Number of Shares

     Subject to adjustment from time to time as provided in Section 15.1, a maximum of 300,000
shares of Common Stock shall be available for issuance under the Plan. Shares issued under the
Plan shall be drawn from authorized and unissued shares.

4.2 Share Usage

     (a) Shares of Common Stock covered by an Award shall not be counted as used unless and until
they are actually issued and delivered to a Participant. If any Award lapses, expires, terminates
or is canceled prior to the issuance of shares thereunder or if shares of Common Stock are issued
under the Plan to a Participant and thereafter are forfeited to or otherwise reacquired by the
Company, the shares subject to such Awards and the forfeited or reacquired shares shall again be
available for issuance under the Plan. Any shares of Common Stock (i) tendered by a Participant or
retained by the Company as full or partial payment to the Company for the purchase price of an
Award or to satisfy tax withholding obligations in connection with an Award, or (ii) covered by an
Award that is settled in cash, or in a manner such that some or all of the shares of Common Stock
covered by the Award are not issued, shall be available for Awards under the Plan. The number of
shares of Common Stock available for issuance under the Plan shall not be reduced to reflect any
dividends or dividend equivalents that are reinvested into additional shares of Common Stock or
credited as additional shares of Common Stock subject or paid with respect to an Award.

     (b) The Committee shall also, without limitation, have the authority to grant Awards as an
alternative to or as the form of payment for grants or rights earned or due under other
compensation plans or arrangements of the Company.

     (c) Notwithstanding anything in the Plan to the contrary, the Committee may grant Substitute
Awards under the Plan. Substitute Awards shall not reduce the number of shares authorized for
issuance under the Plan. In the event that an Acquired Entity has shares available for awards or
grants under one or more preexisting plans not adopted in contemplation of such acquisition or
combination, then, to the extent determined by the Board or the Committee, the shares available for
grant pursuant to the terms of such preexisting plan (as adjusted, to the extent appropriate, using
the exchange ratio or other adjustment or valuation ratio or formula

-2-

 

used in such acquisition or combination to determine the consideration payable to holders of
common stock of the entities that are parties to such acquisition or combination) may be used for
Awards under the Plan and shall not reduce the number of shares of Common Stock authorized for
issuance under the Plan; provided, however, that Awards using such available shares shall not be
made after the date awards or grants could have been made under the terms of such preexisting
plans, absent the acquisition or combination, and shall only be made to individuals who were not
employees or directors of the Company or a Related Company prior to such acquisition or
combination. In the event that a written agreement between the Company and an Acquired Entity
pursuant to which a merger, consolidation or statutory share exchange is completed is approved by
the Board and that agreement sets forth the terms and conditions of the substitution for or
assumption of outstanding awards of the Acquired Entity, those terms and conditions shall be deemed
to be the action of the Committee without any further action by the Committee, except as may be
required for compliance with Rule 16b-3 under the Exchange Act, and the persons holding such awards
shall be deemed to be Participants.

     (d) Notwithstanding the other provisions in this Section 4.2, the maximum number of shares
that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate share
number stated in Section 4.1, subject to adjustment as provided in Section 15.1.

SECTION 5. ELIGIBILITY

     An Award may be granted to any employee, officer or director of the Company or a Related
Company whom the Committee from time to time selects.

SECTION 6. AWARDS

6.1 Form, Grant and Settlement of Awards

     The Committee shall have the authority, in its sole discretion, to determine the type or types
of Awards to be granted under the Plan. Such Awards may be granted either alone or in addition to
or in tandem with any other type of Award. Any Award settlement may be subject to such conditions,
restrictions and contingencies as the Committee shall determine.

6.2 Evidence of Awards

     Awards granted under the Plan shall be evidenced by a written notice or agreement (including
an electronic notice or agreement) that shall contain such terms, conditions, limitations and
restrictions as the Committee shall deem advisable and that are not inconsistent with the Plan.

6.3 Deferrals

     The Committee may permit or require a Participant to defer receipt of the payment of any Award
if and to the extent set forth in the notice or agreement evidencing the Award at the time of
grant. If any such deferral election is permitted or required, the Committee, in its sole
discretion, shall establish rules and procedures for such payment deferrals, which may include the
grant of additional Awards or provisions for the payment or crediting of interest or dividend
equivalents, including converting such credits to deferred stock unit equivalents; provided,
however, that the terms of any deferrals under this Section 6.3 shall comply with all applicable
law, rules and regulations, including, without limitation, Section 409A of the Code.

6.4 Dividends and Distributions

     Participants may, if and to the extent the Committee so determines and sets forth in the
notice or agreement evidencing the Award at the time of grant, be credited with dividends paid with
respect to shares of

-3-

 

Common Stock underlying an Award in a manner determined by the Committee in its sole
discretion. The Committee may apply any restrictions to the dividends or dividend equivalents that
the Committee deems appropriate. The Committee, in its sole discretion, may determine the form of
payment of dividends or dividend equivalents, including cash, shares of Common Stock, Restricted
Stock or Stock Units.

SECTION 7. OPTIONS

7.1 Grant of Options

     The Committee may grant Options designated as Incentive Stock Options or Nonqualified Stock
Options.

7.2 Option Exercise Price

     The exercise price for shares purchased under an Option shall be at least 100% of the Fair
Market Value of the Common Stock on the Grant Date (and, with respect to Incentive Stock Options,
shall not be less than the minimum exercise price required by Section 422 of the Code), except in
the case of Substitute Awards.

7.3 Term of Options

     Subject to earlier termination in accordance with the terms of the Plan and the instrument
evidencing the Option, the maximum term of an Option shall be ten years from the Grant Date.

7.4 Exercise of Options

     The Committee shall establish and set forth in each instrument that evidences an Option the
time at which, or the installments in which, the Option shall vest and become exercisable, any of
which provisions may be waived or modified by the Committee at any time. To the extent an Option
has vested and become exercisable, the Option may be exercised in whole or from time to time in
part by delivery to or as directed or approved by the Company of a properly executed stock option
exercise agreement or notice, in a form and in accordance with procedures established by the
Committee, setting forth the number of shares with respect to which the Option is being exercised,
the restrictions imposed on the shares purchased under such exercise agreement, if any, and such
representations and agreements as may be required by the Committee, accompanied by payment in full
as described in Sections 7.5 and 13. An Option may be exercised only for whole shares and may not
be exercised for less than a reasonable number of shares at any one time, as determined by the
Committee.

7.5 Payment of Exercise Price

     The exercise price for shares purchased under an Option shall be paid in full to the Company
by delivery of consideration equal to the product of the Option exercise price and the number of
shares purchased. Such consideration must be paid before the Company will issue the shares being
purchased and must be in a form or a combination of forms acceptable to the Committee for that
purchase, which forms may include:

     (a) cash;

     (b) check or wire transfer;

     (c) having the Company withhold shares of Common Stock that would otherwise be issued on
exercise of the Option that have an aggregate Fair Market Value equal to the aggregate exercise
price of the shares being purchased under the Option;

-4-

 

     (d) tendering (either actually or, so long as the Common Stock is registered under
Section 12(b) or 12(g) of the Exchange Act, by attestation) shares of Common Stock owned by the
Participant that have an aggregate Fair Market Value equal to the aggregate exercise price of the
shares being purchased under the Option;

     (e) so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange
Act, and to the extent permitted by law, delivery of a properly executed exercise notice, together
with irrevocable instructions to a brokerage firm designated or approved by the Company to deliver
promptly to the Company the aggregate amount of proceeds to pay the Option exercise price and any
withholding tax obligations that may arise in connection with the exercise, all in accordance with
the regulations of the Federal Reserve Board; or

     (f) such other consideration as the Committee may permit.

7.6 Effect of Termination of Service

     The Committee shall establish and set forth in each instrument that evidences an Option
whether the Option shall continue to be exercisable, and the terms and conditions of such exercise,
after a Termination of Service, any of which provisions may be waived or modified by the Committee
at any time. If the exercise of the Option following a Participant’s Termination of Service, but
while the Option is otherwise exercisable, would be prohibited solely because the issuance of
Common Stock would violate either the registration requirements under the Securities Act or the
Company’s insider trading policy, then the Option shall remain exercisable until the earlier of (a)
the Option Expiration Date and (b) the expiration of a period of three months (or such longer
period of time as determined by the Committee in its sole discretion) after the Participant’s
Termination of Service during which the exercise of the Option would not be in violation of such
Securities Act or insider trading policy requirements.

     Notwithstanding the foregoing, in case a Participant’s Termination of Service occurs for
Cause, all Options granted to the Participant shall automatically expire upon first notification to
the Participant of such termination, unless the Committee determines otherwise. If a Participant’s
employment or service relationship with the Company is suspended pending an investigation of
whether the Participant shall be terminated for Cause, all the Participant’s rights under any
Option shall likewise be suspended during the period of investigation. If any facts that would
constitute termination for Cause are discovered after a Participant’s Termination of Service, any
Option then held by the Participant may be immediately terminated by the Committee, in its sole
discretion.

SECTION 8. INCENTIVE STOCK OPTION LIMITATIONS

     Notwithstanding any other provisions of the Plan, the terms and conditions of any Incentive
Stock Options shall in addition comply in all respects with Section 422 of the Code, or any
successor provision, and any applicable regulations thereunder.

SECTION 9. STOCK APPRECIATION RIGHTS

9.1 Grant of Stock Appreciation Rights

     The Committee may grant Stock Appreciation Rights to Participants at any time on such terms
and conditions as the Committee shall determine in its sole discretion. An SAR may be granted in
tandem with an Option or alone (“freestanding”). The grant price of a tandem SAR shall be equal to
the exercise price of the related Option. The grant price of a freestanding SAR shall be
established in accordance with procedures for Options set forth in Section 7.2. An SAR may be
exercised upon such terms and conditions and for the term as the Committee determines in its sole
discretion; provided, however, that, subject to earlier termination in accordance with the terms of
the Plan and the instrument evidencing the SAR, the maximum term of a

-5-

 

freestanding SAR shall be ten years, and in the case of a tandem SAR, (a) the term shall not
exceed the term of the related Option and (b) the tandem SAR may be exercised for all or part of
the shares subject to the related Option upon the surrender of the right to exercise the equivalent
portion of the related Option, except that the tandem SAR may be exercised only with respect to the
shares for which its related Option is then exercisable.

9.2 Payment of SAR Amount

     Upon the exercise of an SAR, a Participant shall be entitled to receive payment in an amount
determined by multiplying: (a) the difference between the Fair Market Value of the Common Stock on
the date of exercise over the grant price of the SAR by (b) the number of shares with respect to
which the SAR is exercised. At the discretion of the Committee as set forth in the instrument
evidencing the Award, the payment upon exercise of an SAR may be in cash, in shares, in some
combination thereof or in any other manner approved by the Committee in its sole discretion.

9.3 Waiver of Restrictions

     Subject to Section 18.5, the Committee, in its sole discretion, may waive any other terms,
conditions or restrictions on any SAR under such circumstances and subject to such terms and
conditions as the Committee shall deem appropriate.

SECTION 10. STOCK AWARDS, RESTRICTED STOCK AND STOCK UNITS

10.1 Grant of Stock Awards, Restricted Stock and Stock Units

     The Committee may grant Stock Awards, Restricted Stock and Stock Units on such terms and
conditions and subject to such repurchase or forfeiture restrictions, if any, which may be based on
continuous service with the Company or a Related Company or the achievement of any performance
goals, as the Committee shall determine in its sole discretion, which terms, conditions and
restrictions shall be set forth in the instrument evidencing the Award.

10.2 Vesting of Restricted Stock and Stock Units

     Upon the satisfaction of any terms, conditions and restrictions prescribed with respect to
Restricted Stock or Stock Units, or upon a Participant’s release from any terms, conditions and
restrictions of Restricted Stock or Stock Units, as determined by the Committee, and subject to the
provisions of Section 13, (a) the shares of Restricted Stock covered by each Award of Restricted
Stock shall become freely transferable by the Participant, and (b) Stock Units shall be paid in
shares of Common Stock or, if set forth in the instrument evidencing the Awards, in cash or a
combination of cash and shares of Common Stock. Any fractional shares subject to such Awards shall
be paid to the Participant in cash.

10.3 Waiver of Restrictions

     Subject to Section 18.5, the Committee, in its sole discretion, may waive the repurchase or
forfeiture period and any other terms, conditions or restrictions on any Restricted Stock or Stock
Unit under such circumstances and subject to such terms and conditions as the Committee shall deem
appropriate.

-6-

 

SECTION 11. PERFORMANCE AWARDS

11.1 Performance Shares

     The Committee may grant Awards of Performance Shares, designate the Participants to whom
Performance Shares are to be awarded and determine the number of Performance Shares and the terms
and conditions of each such Award. Performance Shares shall consist of a unit valued by reference
to a designated number of shares of Common Stock, the value of which may be paid to the Participant
by delivery of shares of Common Stock or, if set forth in the instrument evidencing the Award,
cash, or any combination thereof, upon the attainment of performance goals, as established by the
Committee, and other terms and conditions specified by the Committee. Subject to Section 18.5, the
amount to be paid under an Award of Performance Shares may be adjusted on the basis of such further
consideration as the Committee shall determine in its sole discretion.

11.2 Performance Units

     The Committee may grant Awards of Performance Units, designate the Participants to whom
Performance Units are to be awarded and determine the number of Performance Units and the terms and
conditions of each such Award. Performance Units shall consist of a unit valued by reference to a
designated amount of cash, which value may be paid to the Participant by delivery of cash, shares
of Common Stock, or any combination thereof, upon the attainment of performance goals, as
established by the Committee, and other terms and conditions specified by the Committee. Subject
to Section 18.5, the amount to be paid under an Award of Performance Units may be adjusted on the
basis of such further consideration as the Committee shall determine in its sole discretion.

SECTION 12. OTHER STOCK OR CASH-BASED AWARDS

     Subject to the terms of the Plan and such other terms and conditions as the Committee deems
appropriate, the Committee may grant other incentives payable in cash or in shares of Common Stock
under the Plan.

SECTION 13. WITHHOLDING

     The Company may require the Participant to pay to the Company the amount of (a) any taxes that
the Company is required by applicable federal, state, local or foreign law to withhold with respect
to the grant, vesting or exercise of an Award (“tax withholding obligations”) and (b) any amounts
due from the Participant to the Company or to any Related Company (“other obligations”). The
Company shall not be required to issue any shares of Common Stock or otherwise settle an Award
under the Plan until such tax withholding obligations and other obligations are satisfied.

     The Committee may permit or require a Participant to satisfy all or part of the Participant’s
tax withholding obligations and other obligations by (a) paying cash to the Company, (b) having the
Company withhold an amount from any cash amounts otherwise due or to become due from the Company to
the Participant, (c) having the Company withhold a number of shares of Common Stock that would
otherwise be issued to the Participant (or become vested, in the case of Restricted Stock) having a
Fair Market Value equal to the tax withholding obligations and other obligations, or
(d) surrendering a number of shares of Common Stock the Participant already owns having a value
equal to the tax withholding obligations and other obligations. The value of the shares so
withheld or tendered may not exceed the employer’s minimum required tax withholding rate.

-7-

 

SECTION 14. ASSIGNABILITY

     No Award or interest in an Award may be sold, assigned, pledged (as collateral for a loan or
as security for the performance of an obligation or for any other purpose) or transferred by a
Participant or made subject to attachment or similar proceedings otherwise than by will or by the
applicable laws of descent and distribution, except to the extent the Participant designates one or
more beneficiaries on a Company-approved form who may exercise the Award or receive payment under
the Award after the Participant’s death. During a Participant’s lifetime, an Award may be
exercised only by the Participant. Notwithstanding the foregoing and to the extent permitted by
Section 422 of the Code, the Committee, in its sole discretion, may permit a Participant to assign
or transfer an Award subject to such terms and conditions as the Committee shall specify.

SECTION 15. ADJUSTMENTS

15.1 Adjustment of Shares

     In the event, at any time or from time to time, a stock dividend, stock split, spin-off,
combination or exchange of shares, recapitalization, merger, consolidation, statutory share
exchange distribution to shareholders other than a normal cash dividend, or other change in the
Company’s corporate or capital structure results in (a) the outstanding shares of Common Stock, or
any securities exchanged therefor or received in their place, being exchanged for a different
number or kind of securities of the Company or (b) new, different or additional securities of the
Company or any other company being received by the holders of shares of Common Stock, then the
Committee shall make proportional adjustments in (i) the maximum number and kind of securities
available for issuance under the Plan; (ii) the maximum number and kind of securities issuable as
Incentive Stock Options as set forth in Section 4.2; (iii) the maximum numbers and kind of
securities set forth in Section 16.3; and (iv) the number and kind of securities that are subject
to any outstanding Award and the per share price of such securities, without any change in the
aggregate price to be paid therefor. The determination by the Committee, as to the terms of any of
the foregoing adjustments shall be conclusive and binding.

     Notwithstanding the foregoing, the issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, for cash or property, or for labor or
services rendered, either upon direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof shall be made with
respect to, outstanding Awards. Also notwithstanding the foregoing, a dissolution or liquidation
of the Company or a Company Transaction shall not be governed by this Section 15.1 but shall be
governed by Sections 15.2 and 15.3, respectively.

15.2 Dissolution or Liquidation

     To the extent not previously exercised or settled, and unless otherwise determined by the
Committee in its sole discretion, Awards shall terminate immediately prior to the dissolution or
liquidation of the Company. To the extent a vesting condition, forfeiture provision or repurchase
right applicable to an Award has not been waived by the Committee, the Award shall be forfeited
immediately prior to the consummation of the dissolution or liquidation.

15.3 Change in Control

     Notwithstanding any other provision of the Plan to the contrary, unless the Committee shall
determine otherwise in the instrument evidencing the Award or in a written employment, services or
other agreement between the Participant and the Company or a Related Company, in the event of a
Change in Control:

     (a) All outstanding Awards, other than Performance Shares and Performance Units, shall become
fully and immediately exercisable, and all applicable deferral and restriction limitations or
forfeiture provisions

-8-

 

shall lapse, immediately prior to the Change in Control and shall terminate at the effective
time of the Change in Control; provided, however, that with respect to a Change in Control that is
a Company Transaction, such Awards shall become fully and immediately exercisable, and all
applicable deferral and restriction limitations or forfeiture provisions shall lapse, only if and
to the extent such Awards are not converted, assumed or replaced by the Successor Company.

     For the purposes of this Section 15.3(a), an Award shall be considered converted, assumed or
replaced by the Successor Company if following the Company Transaction the option or right confers
the right to purchase or receive, for each share of Common Stock subject to the Award immediately
prior to the Company Transaction, the consideration (whether stock, cash or other securities or
property) received in the Company Transaction by holders of Common Stock for each share held on the
effective date of the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding shares); provided, however,
that if such consideration received in the Company Transaction is not solely common stock of the
Successor Company, the Committee may, with the consent of the Successor Company, provide for the
consideration to be received upon the exercise of the Option, for each share of Common Stock
subject thereto, to be solely common stock of the Successor Company substantially equal in fair
market value to the per share consideration received by holders of Common Stock in the Company
Transaction. The determination of such substantial equality of value of consideration shall be
made by the Committee, and its determination shall be conclusive and binding.

     Except as otherwise provided in the instrument evidencing the Award or in a written
employment, services or other agreement between the Participant and the Company or a Related
Company, any such Awards that are converted, assumed or substituted for in the Company Transaction
and do not otherwise accelerate at that time shall automatically become fully vested and
exercisable with respect to 100% of the unvested portion of the Award, and all applicable deferral
and restriction limitations or forfeiture provisions shall lapse, in the event that the
Participant’s employment with the Successor Company should terminate (i) in connection with such
Company Transaction or (ii) subsequently within one year following such Company Transaction, unless
such employment is terminated by the Successor Company for Cause or by the Participant voluntarily
without Good Reason.

     (b) All Performance Shares or Performance Units earned and outstanding as of the date the
Change in Control is determined to have occurred shall be payable in full at the target level in
accordance with the payout schedule pursuant to the instrument evidencing the Award. Any remaining
Performance Shares or Performance Units (including any applicable performance period) for which the
payout level has not been determined shall be prorated at the target payout level up to and
including the date of such Change in Control and shall be payable in full at the target level in
accordance with the payout schedule pursuant to the instrument evidencing the Award. Any existing
deferrals or other restrictions not waived by the Committee in its sole discretion shall remain in
effect.

     (c) Notwithstanding the foregoing, the Committee, in its sole discretion, may instead provide
in the event of a Change in Control that is a Company Transaction that a Participant’s outstanding
Awards shall terminate upon or immediately prior to such Company Transaction and that such
Participant shall receive, in exchange therefor, a cash payment equal to the amount (if any) by
which (x) the value of the per share consideration received by holders of Common Stock in the
Company Transaction, or, in the event the Company Transaction is one of the transactions listed
under subsection (c) in the definition of Company Transaction or otherwise does not result in
direct receipt of consideration by holders of Common Stock, the value of the deemed per share
consideration received, in each case as determined by the Committee in its sole discretion,
multiplied by the number of shares of Common Stock subject to such outstanding Awards (to the
extent then vested and exercisable or whether or not then vested and exercisable, as determined by
the Committee in its sole discretion) exceeds (y) if applicable, the respective aggregate exercise
price or grant price for such Awards.

     (d) Further notwithstanding the foregoing, the Committee, in its sole discretion, may instead
determine the effect of a Change in Control on outstanding Awards at the time of the Change in
Control and in light of the circumstances surrounding the Change in Control.

-9-

 

15.4 Further Adjustment of Awards

     Subject to Sections 15.2 and 15.3, the Committee shall have the discretion, exercisable at any
time before a sale, merger, consolidation, reorganization, liquidation, dissolution or change in
control of the Company, as defined by the Committee, to take such further action as it determines
to be necessary or advisable with respect to Awards. Such authorized action may include (but shall
not be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or
restrictions on, Awards so as to provide for earlier, later, extended or additional time for
exercise, lifting restrictions and other modifications, and the Committee may take such actions
with respect to all Participants, to certain categories of Participants or only to individual
Participants. The Committee may take such action before or after granting Awards to which the
action relates and before or after any public announcement with respect to such sale, merger,
consolidation, reorganization, liquidation, dissolution or change in control that is the reason for
such action.

15.5 No Limitations

     The grant of Awards shall in no way affect the Company’s right to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets.

15.6 Fractional Shares

     In the event of any adjustment in the number of shares covered by any Award, each such Award
shall cover only the number of full shares resulting from such adjustment.

15.7 Section 409A of the Code

     Notwithstanding anything in this Plan to the contrary, (a) any adjustments made pursuant to
this Section 15 or any other amendments to Awards that are considered “deferred compensation”
within the meaning of Section 409A of the Code shall be made in compliance with the requirements of
Section 409A of the Code and (b) any adjustments made pursuant to Section 15 or any other
amendments to Awards that are not considered “deferred compensation” subject to Section 409A of the
Code shall be made in such a manner as to ensure that after such adjustment or amendment the Awards
either (i) continue not to be subject to Section 409A of the Code or (ii) comply with the
requirements of Section 409A of the Code.

SECTION 16. CODE SECTION 162(m) PROVISIONS

Notwithstanding any other provision of the Plan, if the Committee determines, at the time Awards
are granted to a Participant who is, or is likely to be as of the end of the tax year in which the
Company would claim a tax deduction in connection with such Award, a Covered Employee, then the
Committee may provide that this Section 16 is applicable to such Award.

16.1 Performance Criteria

     If an Award is subject to this Section 16, then the lapsing of restrictions thereon and the
distribution of cash or shares of Common Stock pursuant thereto, as applicable, shall be subject to
the achievement of one or more objective performance goals established by the Committee, which
shall be based on the attainment of specified levels of one of or any combination of the following
“performance criteria” for the Company as a whole or any business unit of the Company, as reported
or calculated by the Company: cash flows (including, but not limited to, operating cash flow, free
cash flow or cash flow return on capital); working capital; earnings per share; book value per
share; operating income (including or excluding depreciation, amortization, extraordinary items,
restructuring charges or other expenses); revenues; operating margins; return on assets; return on
equity; debt; debt plus equity; market or economic value added; stock price appreciation; total

-10-

 

shareholder return; cost control; strategic initiatives; market share; net income; return on
invested capital; improvements in capital structure; or customer satisfaction, employee
satisfaction, services performance, subscriber, cash management or asset management metrics
(together, the “Performance Criteria”).

     Such performance goals also may be based on the achievement of specified levels of Company
performance (or performance of an applicable affiliate or business unit of the Company) under one
or more of the Performance Criteria described above relative to the performance of other
corporations. Such performance goals shall be set by the Committee within the time period
prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of the Code, or
any successor provision thereto, and the regulations thereunder.

     The Committee may provide in any such Award that any evaluation of performance may include or
exclude any of the following events that occurs during a performance period: (i) asset
write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax
laws, accounting principles, or other laws or provisions affecting reported results, (iv) any
reorganization and restructuring programs, (v) extraordinary nonrecurring items as described in
Accounting Principles Board Opinion No. 30 and/or in Management’s Discussion and Analysis of
Financial Condition and Results of Operations appearing in the Company’s annual report to
shareholders for the applicable year, (vi) acquisitions or divestitures, (vii) foreign exchange
gains and losses, and (viii) gains and losses on asset sales. To the extent such inclusions or
exclusions affect Awards to Covered Employees, they shall be prescribed in a form that satisfies
all requirements for “performance-based compensation” within the meaning of Section 162(m) of the
Code, or any successor provision thereto.

16.2 Adjustment of Awards

     Notwithstanding any provision of the Plan other than Section 15, with respect to any Award
that is subject to this Section 16, the Committee may adjust downwards, but not upwards, the amount
payable pursuant to such Award, and the Committee may not waive the achievement of the applicable
performance goals except in the case of the death or disability of the Covered Employee.

16.3 Limitations

     Subject to adjustment from time to time as provided in Section 15.1, no Covered Employee may
be granted Awards other than Performance Units subject to this Section 16 in any calendar year
period with respect to more than 200,000 shares of Common Stock for such Awards, except that the
Company may make additional onetime grants of such Awards for up to 250,000 shares to newly hired
or newly promoted individuals, and the maximum dollar value payable with respect to Performance
Units or other awards payable in cash subject to this Section 16 granted to any Covered Employee in
any one calendar year is $1,000,000.

     The Committee shall have the power to impose such other restrictions on Awards subject to this
Section 16 as it may deem necessary or appropriate to ensure that such Awards satisfy all
requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code,
or any successor provision thereto.

SECTION 17. AMENDMENT AND TERMINATION

17.1 Amendment, Suspension or Termination

     The Board or the Committee may amend, suspend or terminate the Plan or any portion of the Plan
at any time and in such respects as it shall deem advisable; provided, however, that, to the extent
required by applicable law, regulation or stock exchange rule, shareholder approval shall be
required for any amendment to the Plan; and provided, further, that any amendment that requires
shareholder approval may be made only by

-11-

 

the Board. Subject to Section 17.3, the Committee may amend the terms of any outstanding
Award, prospectively or retroactively.

17.2 Term of the Plan

     Unless sooner terminated as provided herein, the Plan shall terminate ten years from the
Effective Date. After the Plan is terminated, no future Awards may be granted, but Awards
previously granted shall remain outstanding in accordance with their applicable terms and
conditions and the Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock
Options may be granted more than ten years after the later of (a) the Effective Date and (b) the
approval by the shareholders of any amendment to the Plan that constitutes the adoption of a new
plan for purposes of Section 422 of the Code.

17.3 Consent of Participant

     The amendment, suspension or termination of the Plan or a portion thereof or the amendment of
an outstanding Award shall not, without the Participant’s consent, materially adversely affect any
rights under any Award theretofore granted to the Participant under the Plan. Any change or
adjustment to an outstanding Incentive Stock Option shall not, without the consent of the
Participant, be made in a manner so as to constitute a “modification” that would cause such
Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.
Notwithstanding the foregoing, any adjustments made pursuant to Section 15 shall not be subject to
these restrictions.

SECTION 18. GENERAL

18.1 No Individual Rights

     No individual or Participant shall have any claim to be granted any Award under the Plan, and
the Company has no obligation for uniformity of treatment of Participants under the Plan.

     Furthermore, nothing in the Plan or any Award granted under the Plan shall be deemed to
constitute an employment contract or confer or be deemed to confer on any Participant any right to
continue in the employ of, or to continue any other relationship with, the Company or any Related
Company or limit in any way the right of the Company or any Related Company to terminate a
Participant’s employment or other relationship at any time, with or without cause.

18.2 Issuance of Shares

     Notwithstanding any other provision of the Plan, the Company shall have no obligation to issue
or deliver any shares of Common Stock under the Plan or make any other distribution of benefits
under the Plan unless, in the opinion of the Company’s counsel, such issuance, delivery or
distribution would comply with all applicable laws (including, without limitation, the requirements
of the Securities Act or the laws of any state or foreign jurisdiction) and the applicable
requirements of any securities exchange or similar entity.

     The Company shall be under no obligation to any Participant to register for offering or resale
or to qualify for exemption under the Securities Act, or to register or qualify under the laws of
any state or foreign jurisdiction, any shares of Common Stock, security or interest in a security
paid or issued under, or created by, the Plan, or to continue in effect any such registrations or
qualifications if made.

     As a condition to the exercise of an Option or any other receipt of Common Stock pursuant to
an Award under the Plan, the Company may require (a) the Participant to represent and warrant at
the time of any such exercise or receipt that such shares are being purchased or received only for
the Participant’s own account

-12-

 

and without any present intention to sell or distribute such shares and (b) such other action
or agreement by the Participant as may from time to time be necessary to comply with the federal,
state and foreign securities laws. At the option of the Company, a stop-transfer order against any
such shares may be placed on the official stock books and records of the Company, and a legend
indicating that such shares may not be pledged, sold or otherwise transferred, unless an opinion of
counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in
violation of any applicable law or regulation, may be stamped on stock certificates to ensure
exemption from registration. The Committee may also require the Participant to execute and deliver
to the Company a purchase agreement or such other agreement as may be in use by the Company at such
time that describes certain terms and conditions applicable to the shares.

     To the extent the Plan or any instrument evidencing an Award provides for issuance of stock
certificates to reflect the issuance of shares of Common Stock, the issuance may be effected on a
noncertificated basis, to the extent not prohibited by applicable law or the applicable rules of
any stock exchange.

18.3 Indemnification

     Each person who is or shall have been a member of the Board, or a committee appointed by the
Board, shall be indemnified and held harmless by the Company against and from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such person in connection
with or resulting from any claim, action, suit or proceeding to which such person may be a party or
in which such person may be involved by reason of any action taken or failure to act under the Plan
and against and from any and all amounts paid by such person in settlement thereof, with the
Company’s approval, or paid by such person in satisfaction of any judgment in any such claim,
action, suit or proceeding against such person; provided, however, that such person shall give the
Company an opportunity, at its own expense, to handle and defend the same before such person
undertakes to handle and defend it on such person’s own behalf, unless such loss, cost, liability
or expense is a result of such person’s own willful misconduct or except as expressly provided by
statute.

     The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such person may be entitled under the Company’s articles of incorporation
or bylaws, as a matter of law, or otherwise, or of any power that the Company may have to indemnify
or hold harmless.

18.4 No Rights as a Shareholder

     Unless otherwise provided by the Committee or in the instrument evidencing the Award or in a
written employment, services or other agreement, no Award, other than a Stock Award, shall entitle
the Participant to any cash dividend, voting or other right of a shareholder unless and until the
date of issuance under the Plan of the shares that are the subject of such Award.

18.5 Compliance with Laws and Regulations

     In interpreting and applying the provisions of the Plan, any Option granted as an Incentive
Stock Option pursuant to the Plan shall, to the extent permitted by law, be construed as an
“incentive stock option” within the meaning of Section 422 of the Code.

     Any Award granted pursuant to the Plan is intended to comply with the requirements of Section
409A of the Code, including any applicable regulations and guidance issued thereunder, and
including transition guidance, to the extent Section 409A of the Code is applicable thereto, and
the terms of the Plan and any Award granted under the Plan shall be interpreted, operated and
administered in a manner consistent with this intention to the extent the Committee deems necessary
or advisable to comply with Section 409A of the Code and any official guidance issued thereunder.
Any payment or distribution that is to be made under the Plan (or pursuant to an Award under the
Plan) to a Participant who is a “specified employee” of the Company within the meaning of that term
under Section 409A of the Code and as determined by the Committee, on account of a “separation

-13-

 

from service” within the meaning of that term under Section 409A of the Code, may not be made
before the date which is six months after the date of such “separation from service,” unless the
payment or distribution is exempt from the application of Section 409A of the Code by reason of the
short-term deferral exemption or otherwise. Notwithstanding any other provision in the Plan, the
Committee, to the extent it deems necessary or advisable in its sole discretion, reserves the
right, but shall not be required, to unilaterally amend or modify the Plan and any Award granted
under the Plan so that the Award qualifies for exemption from or complies with Section 409A of the
Code; provided, however, that the Committee makes no representations that Awards granted under the
Plan shall be exempt from or comply with Section 409A of the Code and makes no undertaking to
preclude Section 409A of the Code from applying to Awards granted under the Plan.

18.6 No Trust or Fund

     The Plan is intended to constitute an “unfunded” plan. Nothing contained herein shall require
the Company to segregate any monies or other property, or shares of Common Stock, or to create any
trusts, or to make any special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than those of a general
unsecured creditor of the Company.

18.7 Successors

     All obligations of the Company under the Plan with respect to Awards shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all the business
and/or assets of the Company.

18.8 Severability

     If any provision of the Plan or any Award is determined to be invalid, illegal or
unenforceable in any jurisdiction, or as to any person, 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 applicable laws, or, if it cannot be so construed or deemed amended without,
in the Committee’s determination, 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.

18.9 Choice of Law and Venue

     The Plan, all Awards granted thereunder and all determinations made and actions taken pursuant
hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by
the laws of the State of Washington without giving effect to principles of conflicts of law.
Participants irrevocably consent to the nonexclusive jurisdiction and venue of the state and
federal courts located in the State of Washington.

18.10 Legal Requirements

     The granting of Awards and the issuance of shares of Common Stock under the Plan are subject
to all applicable laws, rules and regulations and to such approvals by any governmental agencies or
national securities exchanges as may be required.

SECTION 19. EFFECTIVE DATE

     The effective date (the “Effective Date”) is the date on which the Plan is
approved by the shareholders of the Company. If the shareholders of the Company
do not approve the Plan within 12 months after the Board’s adoption of the Plan, any Incentive Stock Options granted under the Plan will be treated as Nonqualified Stock Options.

-14-

 

APPENDIX A

DEFINITIONS

As used in the Plan,

     “Acquired Entity” means any entity acquired by the Company or a Related Company or with which
the Company or a Related Company merges or combines.

     “Award” means any Option, Stock Appreciation Right, Stock Award, Restricted Stock, Stock Unit,
Performance Share, Performance Unit, cash-based award or other incentive payable in cash or in
shares of Common Stock as may be designated by the Committee from time to time.

     “Board” means the Board of Directors of the Company.

     “Cause,” unless otherwise defined in the instrument evidencing an Award or in a written
employment, services or other agreement between the Participant and the Company or a Related
Company, means dishonesty, fraud, serious or willful misconduct, unauthorized use or disclosure of
confidential information or trade secrets, or conduct prohibited by law (except minor violations),
in each case as determined by the Company’s chief human resources officer or other person
performing that function or, in the case of directors and executive officers, the Committee, whose
determination shall be conclusive and binding.

     “Change in Control,” unless the Committee determines otherwise with respect to an Award at the
time the Award is granted or unless otherwise defined for purposes of an Award in a written
employment, services or other agreement between the Participant and the Company or a Related
Company, means the occurrence of any of the following events:

     (a) an acquisition by any Entity of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 40% or more of either (1) the then outstanding
shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the
combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors (the “Outstanding Company Voting Securities”),
provided, however, that the following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company, other than an acquisition by
virtue of the exercise of a conversion privilege where the security being so converted was
not acquired directly from the Company by the party exercising the conversion privilege,
(ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Related Company, or (iv) an
acquisition by any Entity pursuant to a transaction that meets the conditions of clauses
(i), (ii) and (iii) set forth in the definition of Company Transaction or (v) any
acquisition approved by the Board;

     (b) a change in the composition of the Board during any two-year period such that the
individuals who, as of the beginning of such two-year period, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that for purposes of this definition, any individual who becomes a
member of the Board subsequent to the beginning of the two-year period, whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least a
majority of those individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as
though such individual were a member of the Incumbent Board; and provided further, however,
that any such individual whose initial assumption of office occurs as a result of or in
connection with an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation

-15-

 

of proxies or consents by or on behalf of an Entity other than the Board shall not be
considered a member of the Incumbent Board; or

     (c) consummation of a Company Transaction.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Committee” means the Compensation Committee of the Board.

“Common Stock” means the common stock, par value $1.25 per share, of the Company.

“Company” means Fisher Communications, Inc., a Washington corporation.

     “Company Transaction,” unless the Committee determines otherwise with respect to an Award at
the time the Award is granted or unless otherwise defined for purposes of an Award in a written
employment, services or other agreement between the Participant and the Company or a Related
Company, means consummation of:

     (a) a merger or consolidation of the Company with or into any other company;

     (b) a statutory share exchange pursuant to which the Company’s outstanding shares are acquired
or a sale in one transaction or a series of transactions undertaken with a common purpose of at
least a majority of the Company’s outstanding voting securities; or

     (c) a sale, lease, exchange or other transfer in one transaction or a series of related
transactions undertaken with a common purpose of all or substantially all of the Company’s assets,
excluding, however, in each case, a transaction pursuant to which

     (i) the Entities who are the beneficial owners of the Outstanding Company Common Stock
and Outstanding Company Voting Securities immediately prior to such Company Transaction
will beneficially own, directly or indirectly, at least a majority of the outstanding
shares of common stock, and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, of the Successor
Company in substantially the same proportions as their ownership, immediately prior to such
Company Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities;

     (ii) no Entity (other than the Company, any employee benefit plan (or related trust)
of the Company, a Related Company or a Successor Company) will beneficially own, directly
or indirectly, 40% or more of, respectively, the outstanding shares of common stock of the
Successor Company or the combined voting power of the outstanding voting securities of the
Successor Company entitled to vote generally in the election of directors unless such
ownership resulted solely from ownership of securities of the Company prior to the Company
Transaction; and

     (iii) individuals who were members of the Incumbent Board will immediately after the
consummation of the Company Transaction constitute at least a majority of the members of the board
of directors of the Successor Company.

     Where a series of transactions undertaken with a common purpose is deemed to be a Company
Transaction, the date of such Company Transaction shall be the date on which the last of such
transactions is consummated.

     “Covered Employee” means a “covered employee” as that term is defined for purposes of
Section 162(m)(3) of the Code or any successor provision.

-16-

 

     “Disability” unless otherwise defined by the Committee for purposes of the Plan in the
instrument evidencing the Award or in a written employment, services or other agreement between the
Participant and the Company or a Related Company, means a mental or physical impairment of the
Participant that is expected to result in death or that has lasted or is expected to last for a
continuous period of 12 months or more and that causes the Participant to be unable to perform his
or her material duties for the Company or a Related Company and to be engaged in any substantial
gainful activity, in each case as determined by the Company’s chief human resources officer or
other person performing that function or, in the case of directors and executive officers, the
Committee, whose determination shall be conclusive and binding.

     “Effective Date” has the meaning set forth in Section 19.

     “Eligible Person” means any person eligible to receive an Award as set forth in Section 5.

     “Entity” means any individual, entity or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

     “Fair Market Value” means the closing price for the Common Stock on any given date during
regular trading, or if not trading on that date, such price on the last preceding date on which the
Common Stock was traded, unless determined otherwise by the Committee using such methods or
procedures as it may establish.

     “Good Reason,” unless the Committee determines otherwise with respect to an Award at the time
the Award is granted or unless otherwise defined for purposes of an Award in a written employment,
services or other agreement between the Participant and the Company or a Related Company, means the
occurrence of any of the following events or conditions after a Company Transaction and without the
consent of the Participant, the notification of the existence of such event or condition by the
Participant to the Successor Company within 90 days of its initial existence, and the failure of
the Successor Company to cure such event or condition within 30 days after receipt of such written
notice from the Participant:

     (a) a material diminution in the Participant’s base compensation;

     (b) a material diminution in the Participant’s authority, duties or responsibilities; or

     (c) the Successor Company’s requiring the Participant to be based at any place outside
a 50-mile radius of his or her place of employment prior to the Company Transaction, except
for reasonably required travel on the Successor Company’s business that is not materially
greater than such travel requirements prior to the Company Transaction.

     “Grant Date” means the later of (a) the date on which the Committee completes the corporate
action authorizing the grant of an Award or such later date specified by the Committee and (b) the
date on which all conditions precedent to an Award have been satisfied, provided that conditions to
the exercisability or vesting of Awards shall not defer the Grant Date.

     “Incentive Stock Option” means an Option granted with the intention that it qualify as an
“incentive stock option” as that term is defined for purposes of Section 422 of the Code or any
successor provision.

     “Nonqualified Stock Option” means an Option other than an Incentive Stock Option.

     “Option” means a right to purchase Common Stock granted under Section 7.

-17-

 

     “Option Expiration Date” means the last day of the maximum term of the Option.

     “Outstanding Company Common Stock” has the meaning set forth in the definition of “Change in
Control.”

     “Outstanding Company Voting Securities” has the meaning set forth in the definition of “Change
in Control.”

     “Parent Company” means a company or other entity which as a result of a Company Transaction
owns the Company or all or substantially all of the Company’s assets either directly or through one
or more subsidiaries.

     “Participant” means any Eligible Person to whom an Award is granted.

“Performance Award” means an Award of Performance Shares or Performance Units granted under
Section 11.

     “Performance Criteria” has the meaning set forth in Section 16.1.

     “Performance Share” means an Award of units denominated in shares of Common Stock granted
under Section 11.1.

     “Performance Unit” means an Award of units denominated in cash granted under Section 11.2.

     “Plan” means the Fisher Communications, Inc. 2008 Equity Incentive Plan.

     “Related Company” means any entity that is directly or indirectly controlled by, in control of
or under common control with the Company.

     “Restricted Stock” means an Award of shares of Common Stock granted under Section 10, the
rights of ownership of which are subject to restrictions prescribed by the Committee.

     “Retirement,” unless otherwise defined in the instrument evidencing the Award or in a written
employment, services or other agreement between the Participant and the Company or a Related
Company, means “Retirement” as defined for purposes of the Plan by the Committee or the Company’s
chief human resources officer or other person performing that function or, if not so defined, means
Termination of Service on or after the date the Participant reaches “normal retirement age,” as
that term is defined in Section 411(a)(8) of the Code.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Stock Appreciation Right” or “SAR” means a right granted under Section 9.1 to receive the
excess of the Fair Market Value of a specified number of shares of Common Stock over the grant
price.

     “Stock Award” means an Award of shares of Common Stock granted under Section 10, the rights of
ownership of which are not subject to restrictions prescribed by the Committee.

     “Stock Unit” means an Award denominated in units of Common Stock granted under Section 10.

     “Substitute Awards” means Awards granted or shares of Common Stock issued by the Company in
substitution or exchange for awards previously granted by an Acquired Entity.

-18-

 

     “Successor Company” means the surviving company, the successor company or Parent Company, as
applicable, in connection with a Company Transaction.

     “Termination of Service” means a termination of employment or service relationship with the
Company or a Related Company for any reason, whether voluntary or involuntary, including by reason
of death, Disability or Retirement. Any question as to whether and when there has been a
Termination of Service for the purposes of an Award and the cause of such Termination of Service
shall be determined by the Company’s chief human resources officer or other person performing that
function or, with respect to directors and executive officers, by the Committee, whose
determination shall be conclusive and binding. Transfer of a Participant’s employment or service
relationship between the Company and any Related Company shall not be considered a Termination of
Service for purposes of an Award. Unless the Committee determines otherwise, a Termination of
Service shall be deemed to occur if the Participant’s employment or service relationship is with an
entity that has ceased to be a Related Company. A Participant’s change in status from an employee
of the Company or a Related Company to a consultant, advisor, independent contractor or
non-employee director of the Company or a Related Company shall be considered a Termination of
Service for purposes of an Award, and a change in status from a non-employee director of the
Company or a Related Company to an employee of the Company or a Related Company shall not be
considered a Termination of Service for purposes of an Award.

     “Vesting Commencement Date” means the Grant Date or such other date selected by the Committee
as the date from which an Award begins to vest.

-19-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]