Document:

EXHIBIT
10.6

 

TRIBUNE
COMPANY

1996
NONEMPLOYEE DIRECTOR STOCK COMPENSATION PLAN

(As amended and restated effective December 20,
2007)

 

ARTICLE
I

GENERAL

 

1.1           Purpose.  Tribune Company, a Delaware corporation (the
“Company”), hereby amends and restates the 1996 Nonemployee Director Stock
Compensation Plan (the “Plan”). The purpose of the Plan has been to increase
the stock ownership of nonemployee directors, to further align their interests
with those of the Company’s other stockholders and to foster and promote the
long-term financial success of the Company by attracting and retaining
outstanding nonemployee directors by enabling them to participate in the
Company’s growth through stock ownership. 
Effective December 20, 2007 the Plan is hereby amended to reflect
the leveraged acquisition of Tribune Company by the Tribune Employee Stock
Ownership Plan and the resulting cessation of trading of Tribune common shares
on the New York Stock Exchange (collectively, the “going-private transaction”).

 

1.2           Participation.  Only directors of the Company who at the time
an award is made meet the following criteria (“Directors”) shall receive awards
under the Plan: (a) the director is not an employee of the Company or any
subsidiary of the Company and (b) the director is a “disinterested person”
as such term is defined in Rule 16b-3 promulgated under the Securities
Exchange Act of 1934 (the “Exchange Act”) or any similar rule which may
subsequently be in effect (“Rule 16b-3”).

 

1.3           Shares
Subject to the Plan.  Shares
of stock covered by awards under the Plan may be in whole or in part authorized
and unissued or treasury shares of the Company’s common stock or such other
shares as may be substituted pursuant to Section 4.2 (“Common
Stock”).  The maximum number of shares of
Common Stock, which may be issued for all purposes under the Plan, shall be
300,000 (subject to adjustment pursuant to Section 4.2).

 

ARTICLE
II

STOCK
AWARDS

 

2.1           Stock
Awards.  Effective on the day
after the date of each annual meeting of the stockholders of the Company at
which Directors are elected (“Annual Meeting”), commencing with the Annual
Meeting in 2005, each Director in office on adjournment of said meeting will
automatically be awarded shares of Common Stock which on the date of the Annual
Meeting have a Fair Market Value of $75,000 (the “Stock Award”).   A Director who is not initially elected at
the Annual Meeting shall receive an award for a pro rata portion of the Stock
Award on the day following his or her becoming a Director based on the number
of months remaining from such date until the anniversary date for the most
recent Annual Meeting of the Company divided by twelve.

 

 

2.2           Definition
of Fair Market Value.  The
term “Fair Market Value” unless otherwise required by any applicable provision
of the Internal Revenue Code of 1986, as amended, (the “Code”)or any
regulations issued hereunder shall mean, as of any date, the closing price of
the Common Stock as reported on the New York Stock Exchange Composite
Transactions List (or such other consolidated transaction reporting system on
which the Common Stock is primarily traded) for such day, or if the Common
Stock was not traded on such day, then the next preceding day on which the
stock was traded, as reported by such source as the Board of Directors may
select.  If the Common Stock is not
readily tradeable on a national securities exchange or other market system, its
Fair Market Value shall be set under procedures established by the Board of
Directors on the advice of an investment advisor.

 

ARTICLE
III

DEFERRAL
OF STOCK AWARDS

 

3.1           Deferral.  Each Director may elect to defer receipt of
part or all of any stock awards hereunder. 
Any such election must be made in writing prior to the beginning of the
calendar year in which an award is earned. 
The deferred award will be credited to an account established in the
Director’s name and held subject to the following terms and conditions:

 

(a)           If the Company pays a cash dividend
with respect to its Common Stock at any time while there is a balance in the
Director’s account, the Company will determine the cash dividend which the
Director would have received had the Director been the actual owner of the
number of shares shown in the account at the time of the dividend payment.  The Company will then determine the
additional shares of Common Stock that could have been purchased with the
dividend at the fair market value of the stock on the date of dividend payment
and add this number to the Director’s account.

 

(b)           The number of whole shares in a
Director’s account at the time the Director terminates service on the Board
shall be delivered in a lump sum on the February 15 following the year in
which the Director terminates Board service or in no more than ten equal annual
installments commencing on the February 15 following the year in which the
Director terminates Board service in accordance with the Director’s original or
amended deferral election.  The value of
any fractional shares shall be paid in cash upon termination.  An election made under this paragraph 3.1(b) with
respect to deferrals credited to a Director’s account after December 31,
2004 (and any investment gains or losses attributable thereto) shall be
irrevocable, provided that a Director may amend an election no later than December 31,
2005. A Director may amend an election with respect to the manner of the
delivery of shares deferred to a Director’s account prior to January 1,
2005 (and any investment gains or losses attributable thereto) at any time up
to six months prior to the date of termination of service.

 

(c)           If a Director dies or becomes legally
incapacitated, the Company will deliver the shares to the persons designated by
the Director by a writing filed with the Company.

 

2

 

(d)           The Company’s obligations with
respect to the deferred stock awards shall not be funded or secured in any
manner nor shall the Director’s right to receive shares be assignable or
transferable voluntarily or involuntarily except as expressly provided herein.  However, nothing shall prevent the Company
from establishing a rabbi trust to provide a Director additional assurance that
the shares subject to a deferred award will be delivered in a timely fashion in
accordance with the Director’s election.

 

3.2           Going-Private Transaction.  As a result of the going-private transaction,
Directors’ deferred share awards under this Plan or under the Tribune Incentive
Compensation Plan which are denominated in Tribune stock shall be converted to
a cash equivalent based on the price provided to shareholders pursuant to the
transaction.  Converted account balances
shall bear interest, at an annual rate equal to 120% of the long-term
Applicable Federal Rate (compounded 
quarterly), which rate shall be updated on an annual basis.

 

3.3           Change in Election.  In connection with the application of Section 409A
of the Code to the Plan, the Tribune Company Employee Benefits Committee or its
delegate may offer Directors the opportunity to elect a revision to their
existing payment election under the Plan so as to accelerate the payment of
their account balance following termination of Board service.   Such revised payment election shall be
determined in the sole discretion of the Committee or its delegate.  Such revisions shall be provided and operate
in compliance with the transition rules under Section 409A and shall
be offered and elected prior to December 31, 2007.

 

ARTICLE
IV

MISCELLANEOUS
PROVISIONS

 

4.1           Nontransferability.  No shares awarded under the Plan shall be
sold for a period of six months and one day after the date of the award.

 

4.2           Adjustments
Upon Certain Changes.  If any
of the events described in Sections 14.1 or 14.2 of the Company’s 1997
Incentive Compensation Plan (As Amended and Restated Effective May 12,
2004) shall occur, the number of shares authorized by the Plan, shall be
automatically adjusted on the same basis to give the proper effect to such
change so as to prevent the dilution or enlargement of the shares available
under Section 1.3 hereof.

 

4.3           Amendment
or Discontinuation of Plan. 
Subject to Code Section 409A, the Board of Directors may amend the
Plan at any time or suspend or discontinue the Plan at any time, but no such
action shall adversely affect any prior award; provided that this Plan may not
be amended more frequently than once every six months and no amendment shall be
adopted which would result in any Director losing his or her status as a
“disinterested” administrator under Rule 16b-3 with respect to any
employee benefit plan of the Company or result in the Plan losing its status as
a protected plan under Rule 16b-3.

 

3

 

4.4           Plan
Not Exclusive.  The adoption
of the Plan does not supersede the 1995 Nonemployee Director Stock Option Plan
and shall not preclude the adoption by appropriate means of any other stock or
other compensation plan for Directors.

 

4.5           Other
Provisions; Securities Registration. 
The grant of any award under the Plan may also be subject to other
provisions as counsel to the Company deems appropriate, including, without
limitation, such provisions as may be appropriate to comply with federal or
state securities laws and stock listing requirements.

 

4.6           Rights
of Directors.  Nothing in the
Plan shall confer upon any Director any right to serve as a Director for a
period of time or to continue his or her present or any other rate of
compensation.

 

4.7           Requirements
of Law; Governing Law.  The
awarding and the issuance of shares of Common Stock shall be subject to all
applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required. The
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Delaware.

 

4.8           Effective
Date.  The Plan was approved
by the holders of a majority of the votes of all shares present, or
represented, and entitled to be cast on the matter at the 1996 Annual Meeting
and became effective as of such Annual Meeting. 
No grants shall be made hereunder after May 31, 2006.

 

IN WITNESS WHEREOF, the Tribune Company Employee
Benefits Committee has caused the foregoing to be executed on behalf of Tribune
Company by the undersigned duly authorized Chairman of the Committee this 20th
day of December, 2007.

 

 

	
   

  	
  TRIBUNE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald C. Grenesko

  
	
   

  	
   

  	
  Chairman of Tribune
  Company

  
	
   

  	
   

  	
  Employee Benefits
  Committee

  

 

4EXHIBIT 10.9

 

TRIBUNE COMPANY

 

 

2007 MANAGEMENT EQUITY INCENTIVE
PLAN

 

SECTION 1.         Purpose

 

The
purpose of the Plan is to enable Tribune Company (the “Company”) to attract, retain and motivate
employees and to provide the Company and its Subsidiaries with a unit plan
providing incentives directly linked to increases in Company shareholder value.

 

SECTION 2.         Definitions

 

For
purposes of the Plan, the following terms are defined as set forth below:

 

a.         “1934 Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

b.         “Administrator” means the Board or any
committee of the Board authorized by the Board to perform the duties of the
Administrator hereunder.

 

c.         “Applicable Participant Ratio” means (1) the number of
Participant’s vested Second Tranche Units (including any such Second Tranche
Units that vest by virtue of a Termination of Service) divided by
(2) 3,261,000, as each of clauses (1) and (2) may be adjusted
pursuant to Section 4(c).

 

d.         “Award” means a grant of Units pursuant to
the Plan.

 

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

 

f.          “Cause” means conduct involving dishonesty or willful
misconduct which, in either case, is detrimental in a significant way to the
business of the Company or any of its Subsidiaries.

 

g.         “Change of Control” means (i) the
acquisition, other than from the Company, by any person, entity or “group”
(within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934
Act), excluding for this purpose the Company, any employee benefit plan (or
related trust) sponsored or maintained by the Company or its Subsidiaries, the
ESOP, EGI, Samuel Zell and their respective affiliates, of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 40%
or more of either the then outstanding shares of Common Stock or the combined
voting power of the Company’s then outstanding voting securities entitled to
vote generally in the election of directors; (ii) a liquidation or
dissolution of the Company, or (iii) the sale of all or substantially all
of the assets of the Company.

 

 

h.         “Closing” means the completion of the merger of
Tesop Corporation with and into the Company.

 

i.          “Code” means the U.S. Internal Revenue
Code of 1986, as amended from time to time, and any successor thereto.

 

j.          “Common Stock” means the common stock of
the Company, par value $0.01.

 

k.         “Credit Agreement” means that certain Credit Agreement, entered into as of
May 17, 2007, among Tribune Company, each lender from time to time party
hereto, JPMorgan Chase Bank, N.A., as administrative agent, Merrill Lynch
Capital Corporation, as syndication agent, and Citicorp North
America, Inc.  and Bank of America,
N.A., as co-documentation agents, J.P. Morgan Securities Inc, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and
Banc of America Securities LLC., together with any amendments thereto, as in
effect as of the effective date of this Plan.

 

l.          “Disability” means (i) the inability
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months; provided that such Participant has been unable to work for at
least one hundred eighty (180) days in any twelve (12) month period, or
(ii) receipt of income replacement benefits for a period of not less than
three months under an accident and health plan covering employees of the
Company, by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months. 
Whether a Participant has incurred a “Disability” shall be determined by
a physician selected by the Administrator or the Company’s insurers, which
physician shall be reasonably acceptable to a Participant (or Participant’s
legal representative).

 

m.        “EGI” means EGI-TRB, L.L.C.

 

n.         “EGI-TRB Director” shall have the meaning
given to such term in that certain Investor Rights Agreement, dated
April 1, 2007, by and among the Company, EGI and the ESOP.

 

o.         “Eligible Individuals” means employees and
non-employee directors of the Company or a Subsidiary; provided, that no
individual may be an Eligible Individual to the extent that his or her
participation in the Plan would prevent the Plan from being a Top Hat Plan.

 

p.         “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.

 

q.         “ESOP” means the Tribune Employee Stock Ownership
Plan, effective as of January 1, 2007, as amended.

 

2

 

r.          “Fair Market Value” as of any date means
(i) if such date precedes the occurrence of a Change of Control, the fair
market value of Common Stock as determined by the Trustee (as defined in the
ESOP) after consultation with an independent appraiser, as defined in
Section 401(a)(28)(C) of the Code, in accordance with the terms of
the Trust (as defined in the ESOP), the ESOP and the provisions of
Section 3(18) of ERISA, or (ii) if such date is the date of, or
subsequent to, a Change of Control, the fair market value of the consideration
received in respect of a share of Common Stock in the Change of Control
transaction, as determined by the Administrator in its good faith discretion.

 

s.         “Fair Market Value Reference Date” means the date as of
which the Fair Market Value of a share of Common Stock is determined.

 

t.          “Good Reason” means (i) a material reduction in the
nature or scope of the Participant’s employment duties (but excluding any
change in the Participant’s service as a member of any board of directors of
any Subsidiary or any committee thereof), (ii) a reduction in the
Participant’s base salary or target annual bonus, (iii) an adverse and
disproportionate change (relative to similarly situated employees of
the Company) in the aggregate benefits available to the Participant , or (iv) a change in the
city in which Participant is required to perform his or her duties.  For the avoidance of doubt, a change in the
Participant’s line of reporting resulting from organizational changes,
including the interposition of additional employees in the Participant’s line
of reporting, will not by itself constitute “Good Reason.”

 

u.         “Involuntary Termination” means a termination of a
Participant’s employment by the Company without Cause or a termination of a
Participant’s employment by the Participant for Good Reason.

 

v.         “Participant” means any Eligible
Individual who receives a Unit Award.

 

w.        “Person” means an individual, entity or
group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the
1934 Act).

 

x.         “Plan” means this Tribune Company 2007
Unit Plan, as set forth herein and as hereinafter amended from time to time.

 

y.         “Section 409A Change of Control” means
a Change of Control that constitutes (i) a change in the ownership of the
Company, (ii) a change in effective control of the Company or (iii) a
change in the ownership of a substantial portion of the assets of the Company
(each as defined in Section 409A of the Code and the final regulations
promulgated thereunder (“Section 409A”).

 

z.         “Subsidiary” means any corporation,
partnership, joint venture or other entity during any period in which at least
a 20% voting or profits interest is owned, directly or indirectly, by the
Company or any successor to the Company.

 

3

 

aa.       “Subsidiary Change of Control” means, with respect to a
Participant, a “change in the ownership” of (i) the Subsidiary that employs
Participant or (ii) any corporation (other than the Company) in a chain of
corporations in which each corporation is a “majority shareholder” of another
corporation in the chain, ending in the Subsidiary that employs Participant.  For purposes of this definition, “change in
the ownership” and “majority shareholder” shall have the meanings ascribed to
them in Section 409A.

 

bb.      “Termination of Service” means the
termination of a Participant’s employment by or service to the Company or any
Subsidiary.  A Participant employed by or
providing service to a Subsidiary shall also be deemed to incur a Termination
of Service if the Subsidiary experiences a Subsidiary Change of Control and the
Participant does not immediately thereafter become an employee of the Company
or another Subsidiary.

 

cc.           “Top Hat Plan” means a plan described in
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

 

dd.          “Tranche One Participants” means
Participants who receive First Tranche Unit Awards.

 

ee.           “Tranche Two Participants” means Participants
who receive Second Tranche Unit Awards.

 

ff.            “Unit” means a contingent right to receive
U.S. dollars equal to the Fair Market Value of one share of Common Stock upon
satisfaction of the conditions for vesting as provided in Section 5 of
this Agreement and subject further to the terms of the Plan and the additional
terms and conditions of any Unit Agreement.

 

SECTION 3.         Administration

 

(a)       The
Plan shall be administered by the Administrator in accordance with the terms of
the Plan.  The Administrator shall have
full power to construe and interpret the Plan and to make all other
determinations which may be necessary or advisable for the administration of
the Plan, in each case, to the extent not inconsistent with the terms of the
Plan.

 

(b)       The
Administrator shall have the full power to (i) select Tranche One
Participants and Tranche Two Participants and to determine the size of Awards
and their terms and conditions and (ii) vary the terms and treatment of
the First Tranche Units and the Second Tranche Units in individual cases as
warranted by circumstances, in each case, subject to the terms of this Plan; provided,
however, that in addition to approval by the Administrator, with respect
to (A) all Tranche One Participants and First Tranche Units and (B) Tranche
Two Participants and Second Tranche Units (other than the Tranche Two
Participants and Second Tranche Units set forth on Exhibit B to the Plan),
each of the items contemplated by clause (i) and clause (ii) shall
require the approval or written consent of at least one EGI-TRB Director, to
the extent one or more EGI-TRB Director then serves as a member of the Board.

 

4

 

(c)       All
determinations of the Administrator shall be final and conclusive on all persons,
including the Company, its stockholders and Participants, and their estates and
beneficiaries.

 

SECTION 4.         Units
Subject to Plan

 

(a)       No more
than 8,695,652 Units may be
granted under the Plan, subject to adjustment in accordance with
Section 4(c).  If any Unit is
forfeited, or if any Unit terminates, expires, or lapses without being settled
or if any Unit is settled pursuant to Section 5(c)(i), it shall again be
available for grant under the Plan; provided, however, that any
Second Tranche Units (defined below) which so become available again for grant
under the Plan shall automatically convert into the same number of First
Tranche Units (defined below) upon so becoming again available for grant under
the Plan.

 

(b)       5,434,652 Units shall be designated as
First Tranche Units (the “First Tranche
Units”) and 3,261,000
Units shall be designated as Second Tranche Units (the “Second Tranche Units”), subject in each
case to adjustment in accordance with Section 4(c) and conversion of
Second Tranche Units into First Tranche Units as described in
Section 4(a) above.  4,174,080 of the First Tranche Units
shall initially be allocated at Closing among the individuals set forth on Exhibit A to the Plan.  The remaining 1,260,572 First Tranche Units, any awarded but forfeited First
Tranche Units and any First Tranche Units converted from Second Tranche Units
as described in Section 4(a) above may be granted by the
Administrator from time to time under the Plan. 
The Second Tranche Units shall be allocated at Closing among the
individuals set forth on Exhibit B
to the Plan.

 

(c)       In the
event of any change in corporate capitalization (including, but not limited to,
a change in the number of shares outstanding), such as a stock split or a
corporate transaction, such as any merger, consolidation, separation, including
a spin-off, or other distribution of shares or property of the Company
(including cash), any reorganization (whether or not such reorganization comes
within the definition of such term in Section 368 of the Code) or any
partial or complete liquidation of the Company, the Administrator shall make
such substitution or adjustments in the aggregate number and kind of Units
reserved for issuance under the Plan, the numbers and kind of Units designated
as First Tranche Units and Second Tranche Units and the number of Units subject
to outstanding Awards, and/or such other equitable substitutions or adjustments
as it may determine to be appropriate in its sole discretion.

 

SECTION 5.         Units

 

Each
Award shall be confirmed by, and be subject to, the terms of a written Unit
agreement (the “Unit Agreement”)
duly executed by the Company and the Participant.  The terms and
provisions of Unit Agreements need not be the same for each Participant, but,
subject to Section 3(b), shall be consistent with the terms of the
Plan.  The grant of a Unit shall occur on
the date (the “Grant Date”) the
Administrator selects an Eligible Individual to receive a grant of Units.  Unless otherwise determined by the
Administrator in accordance with Section 3(b) and as 

 

5

 

provided in the applicable Unit Agreement, Units
granted under the Plan shall be subject to the following terms and conditions:

 

(a)         Vesting/Forfeiture of First Tranche Unit Awards.

 

(i)       Subject
to Section 5(a)(ii) and subject to Participant’s continuous
employment with the Company or any of its Subsidiaries through the applicable
vesting date, each First Tranche Unit Award shall become vested as follows:

 

	
  Number of Units Vesting

  	
   

  	
  Vesting Date

  
	
   

  	
   

  	
   

  
	
  1/3 (rounded to the
  nearest whole number)

  	
   

  	
  First Anniversary of
  Grant Date

  
	
   

  	
   

  	
   

  
	
  1/3 (rounded to the
  nearest whole number)

  	
   

  	
  Second Anniversary of
  Grant Date

  
	
   

  	
   

  	
   

  
	
  Remainder

  	
   

  	
  Third Anniversary of
  Grant Date

  

 

(ii)      All
unvested First Tranche Units will immediately vest upon a Change of Control or
a Termination of Service due to a Participant’s death or Disability.

 

(iii)     Upon a
Termination of Service for any reason other than death or Disability, any then
unvested First Tranche Units shall be forfeited.

 

(b)        Vesting/Forfeiture of Second Tranche Unit Awards.

 

(i)       Each
Second Tranche Unit Award shall be vested with respect to 1/2 of the Units
covered thereby (rounded to the nearest whole number) on the Grant Date and,
subject to a Participant’s continuous employment with the Company or any of its
Subsidiaries through the vesting date, the remainder of such Units shall become
vested on the first anniversary of the Grant Date.

 

(ii)      All
unvested Second Tranche Units will immediately vest upon a Change of Control or
a Termination of Service due to a Participant’s death, Disability or
Involuntary Termination.

 

(iii)     Upon a
Termination of Service for any reason, other than death, Disability or an
Involuntary Termination, any then unvested Second Tranche Units shall be
forfeited.

 

(c)         Settlement of Unit Awards.

 

(i)       With
respect to vested Second Tranche Units (including those Second Tranche Units
that vest as a result of a Termination of Service) held by any Participant who
experiences a Termination of Service prior to the one-year anniversary of the
Closing (such Units, “Early Termination Second
Tranche Units”), subject to Section 5(e), the Company shall pay
to such Participant in respect of such Participant’s Early Termination Second
Tranche Units an amount 

 

6

 

in U.S. dollars equal to the product of (A) $25,000,000
and (B) the Applicable Participant Ratio, such amount to be paid to the
Participant or Participant’s estate within ten business days following the
Participant’s Termination of Service for any reason, whether voluntary or
involuntary, with our without Cause or Good Reason, including without
limitation by reason of Death or Disability; provided that such Termination of
Service must constitute a “separation from service” (as defined in Section 409A)
or must involve a Subsidiary Change of Control. 
Any amounts payable pursuant to this Section 5(c)(i) shall
bear interest, from and including the eleventh business day following the
Participant’s Termination of Service through and including the date of payment
at the prime rate in effect on such sixth business day following the
Participant’s Termination of Service (as reported in the Wall Street Journal,
national edition).

 

(ii)      Subject
to Section 5(e), except as otherwise provided in any Unit Agreement, and
other than with respect to the Early Termination Second Tranche Units, which
shall be settled in accordance with the immediately preceding clause (i) above,
each vested First Tranche Unit and each vested Second Tranche Unit will be
settled and paid in U.S. dollars as follows: (A) (1) 1/3 of the
vested First Tranche Units and vested Second Tranche Units (rounded to the
nearest whole number) will be settled and paid in U.S. dollars as soon as
practicable (but in no event later than March 31) in the first calendar
year that begins after the fourth anniversary of the Grant Date (or such later
anniversary of the Grant Date designated pursuant to a valid subsequent
deferral election as contemplated by Section 5(d)) based on the Fair
Market Value of a share of Common Stock on December 31 of the year in
which the fourth anniversary of the Grant Date occurs (or such later
anniversary of the Grant Date designated pursuant to a valid subsequent
deferral election as contemplated by Section 5(d) occurs), (2) 1/3
of the vested First Tranche Units and vested Second Tranche Units (rounded to
the nearest whole number) will be settled and paid in U.S. dollars as soon as
practicable (but in no event later than March 31) in the first calendar
year that begins after the sixth anniversary of the Grant Date (or such later
anniversary of the Grant Date designated pursuant to a valid subsequent
deferral election as contemplated by Section 5(d)) based on the Fair
Market Value of a share of Common Stock on December 31 of the year in
which the sixth anniversary of the Grant Date occurs (or such later anniversary
of the Grant Date designated pursuant to a valid subsequent deferral election
as contemplated by Section 5(d) occurs), and (3) the remainder
of the vested First Tranche Units and vested Second Tranche Units will be
settled and paid in U.S. dollars as soon as practicable (but in no event later
than March 31) in the first calendar year that begins after the eighth
anniversary of the Grant Date (or such later anniversary of the Grant Date
designated pursuant to a valid subsequent deferral election as contemplated by Section 5(d))
based on the Fair Market Value of a share of Common Stock on December 31
of the year in which the eighth anniversary of the Grant Date occurs (or such
later anniversary of the Grant Date designated pursuant to a valid subsequent
deferral election as contemplated by Section 5(d) occurs) or (B) if
earlier, as soon as practicable (but in no event later than March 31) and
without giving effect to any subsequent deferral election pursuant to Section 5(d) below,
in the first calendar year that begins after 
a Section 409A Change of Control or a Participant’s Termination of
Service for any reason, whether voluntary or involuntary, with or without Cause
or Good Reason, including without limitation by reason of Death or Disability
(provided that such Termination of Service must constitute a “separation from
service” (as defined in Section 

 

7

 

409A) or must involve a Subsidiary Change of Control)
based on the Fair Market Value of a share of Common Stock on December 31
of the year in which the Section 409A Change of Control or a Participant’s
Termination of Service, as applicable, occurs; provided, however,
that if the Section 409A Change of Control involves the acquisition of
Common Stock solely for U.S. dollars, any vested portion of the First Tranche
Units Award or Second Tranche Units Award will be settled and paid as soon as
practicable after the Section 409A Change of Control, but in no event
later than thirty (30) days after such Section 409A Change of
Control.  Any amounts payable pursuant to
this Section 5(c)(ii) shall bear interest, from and including April 1
of the year in which such Units are designated to be settled (taking into
account any subsequent deferral election) through and including the date of
payment at the prime rate in effect on such April 1 (as reported in the
Wall Street Journal, national edition); provided, however, that
if the settlement is triggered by virtue of a Section 409A Change of
Control, amounts payable pursuant to this Section 5(c)(ii) shall bear
interest, from and including the thirty-first day following the occurrence of
the Section 409A Change of Control through and including the date of payment
at the prime rate in effect on such thirty-first day following the occurrence
of the Section 409A Change of Control.

 

(d)        Subsequent Deferral Election.  A Participant who is an employee of the
Company may elect, by providing written notice to the Company, to defer payment
of some or all of such Participant’s First Tranche Unit Award or Second Tranche
Unit Award in accordance with the following requirements; provided, however,
that any such deferral shall be expressed in whole Units:

 

(i)       Any
such election shall not take effect until at least twelve months after the date
on which the election is made.

 

(ii)      Any
such election must be made at least twelve months prior to the first day of the
calendar year in which settlement was scheduled to occur, absent the election.

 

(iii)     Any
such election must defer payment of the First Tranche Unit Award or Second
Tranche Unit Award until at least five years beyond the first day of the
calendar year in which settlement was scheduled to occur, absent the election.

 

(e)         Limitations on Payment.

 

(i)       Any settlement payment in respect of any
Units may be delayed where the Company reasonably anticipates that the making
of the payment will violate federal securities laws or other applicable law; provided
that the payment is made at the earliest date at which the Company reasonably
anticipates that the making of the payment will not cause such violation.

 

(ii)      Any settlement payment in respect of any
Units shall be delayed to the extent such payment would have, or on a Pro Forma
Basis (as defined in the Credit Agreement) taking into account the payment
would have, caused the Company to exceed the objective and nondiscretionary
limitations set forth in Section 5.02(i)(A) and (B) of the
Credit Agreement, such that the Company would have been in breach, or in breach
on a Pro Forma Basis, of the 

 

8

 

terms thereof (the “Limitations”);
provided, however, that any such payment shall be made during the
first taxable year of the Participant in which the making of such payment would
not cause the Company to exceed the foregoing objective and nondiscretionary
limitations.  In any given year, the
maximum aggregate amount payable in respect of the settlement of Units without
running afoul of the Limitations shall be referred to as the “Annual Limit.”  In the
event the Company’s obligations pursuant to Section 5(c) exceed the
Annual Limit in any given year, the Company will settle Units of each
Participant entitled to a cash payment during such year (any such amount, the “Settlement Amount”) based on the proportion that each
Participant’s Settlement Amount bears to the aggregate Settlement Amount for
such year for all Participants and any unsettled obligation during such year
shall be settled during the following year, subject to the Annual Limit
applicable to such following year; provided, however, that this Section 5(e)(ii) shall
not apply following a Section 409A Change of Control.

 

(iii)     The Company may delay any payment the
making of which would jeopardize the ability of the Company to continue as a
going concern; provided that any such payment is made during the first
taxable year of the Participant in which the making of the payment would not
have such effect.

 

(iv)     In order to comply with Section 409(p) of
the Code and the final regulations promulgated thereunder, the Administrator
may at any time permit the Plan to provide one or more distribution(s) to
any Participants in an amount sufficient to avoid a “nonallocation year” as
defined in Section 409(p) of the Code.

 

(v)      Any amounts payable pursuant to Section 5(c) or
Section 5(d)(ii) shall bear interest from and including the February 1
immediately following the Fair Market Value Reference Date through and
including the date of payment at the prime rate in effect on such February 1
(as reported in the Wall Street Journal, national edition); provided, however,
that amounts payable due to the occurrence of a Section 409A Change of
Control shall bear interest from and including the thirty-first day after the Section 409
Change of Control through and including the date of payment at the prime rate
in effect on such thirty-first day after the Change of Control.

 

(f)         Nontransferability of Units.  No Unit shall be transferable (by means of
sale, assignment, exchange, encumbrance, hypothecation, pledge or otherwise) by
a Participant other than by will or by the laws of descent and distribution or
as otherwise expressly permitted by the Administrator, nor may a Participant
sell, assign, transfer, pledge, or encumber such Participant’s interest in a
Unit.  In the event a Participant
transfers a Unit in violation of this Section 5(h), the Administrator may,
in its discretion, cause such Unit to be forfeited.

 

(g)         Gross-Up Payments.  Unit Agreements with respect to Second
Tranche Unit Awards shall provide that if any amounts payable to a Participant
in respect of the Second Tranche Unit Awards together with any other payment or
distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of
the Code) to or for the benefit of the Participant, whether paid or payable in
respect of the Second Tranche Unit Awards or otherwise 

 

9

 

are deemed to be “excess parachute payments” within
the meaning of Section 280G(b)(1) of the Code, the Company shall pay
to such Participant in addition to any amounts payable in respect of the Second
Tranche Unit Awards or otherwise an amount which, after all federal, state and
local taxes imposed on the Participant with respect to such amount are
subtracted therefrom, is equal to the excise taxes imposed on such excess
parachute payment pursuant to Section 4999 of the Code.  Any gross-up payment shall be paid no later
than the end of the Participant’s taxable year next following the Participant’s
taxable year in which the excise tax (and any income or other related taxes or
interest or penalties thereon) on a payment are remitted to the Internal
Revenue Service or any other applicable taxing authority.

 

(h)        Dividends. 
As of each date on which the Company pays a cash dividend to record
owners of shares of Common Stock (a “Dividend
Date”) (excluding for this purpose any amounts distributed to the
ESOP for purposes of repaying the ESOP Note, dated April 1, 2007, in principal
amount of $250,000,000, as amended), an amount equal to the per share dividend
amount shall be credited (each such amount, a “Dividend
Credit”) to an account on behalf of each Participant in respect of
each Unit subject to an Award.  Dividend
Credits shall bear interest at the prime rate in effect on the first business
day following the applicable Dividend Date (as reported in the Wall Street
Journal, national edition) from and including the Dividend Date through and
including the date of payment.  Dividend
Credits and any related interest shall vest at such time as the Units to which
the Dividend Credits pertain vest and Dividend Credits and any related interest
shall be settled and paid in U.S. dollars at such time as the Units to which
the Dividend Credits pertain are settled and paid.

 

SECTION 6.        Amendment
and Termination

 

(a)        The
Plan will terminate on the tenth anniversary of the Effective Date, and no
Units shall be granted after such date. 
Awards outstanding on the tenth anniversary of the Effective Date shall
not be affected or impaired by the termination of the Plan.

 

(b)        The
Administrator may amend or terminate the Plan, but no amendment or termination
shall be made which would adversely impair the rights of a Participant under
any Award theretofore granted without the Participant’s consent, except such an
amendment made to comply with applicable law, stock exchange rules or
accounting rules.  In addition, no
amendment shall be made without the approval of the Company’s shareholders to
the extent such approval is required by applicable law or stock exchange
rules.  Subject to Section 3(b), the
Administrator may amend the terms of any Award theretofore granted, but no
amendment shall be made that would adversely impair the rights of any Participant
without the Participant’s consent except such an amendment made to cause the
Plan or Award to comply with applicable law, stock exchange rules or
accounting rules.

 

SECTION 7.        General
Provisions

 

(a)        This
Plan is intended to constitute a Top Hat Plan and it shall at all times be
interpreted and administered accordingly. 
Notwithstanding any other provision of this Plan, 

 

10

 

subject to Section 3(b), the Administrator may
make such amendments to this Plan, and to any procedures established under this
Plan, as it may determine to be necessary to comply with any applicable law,
regulation or requirement, including without limitation the rules governing
Top Hat Plans, and such amendments need not apply uniformly to all
Participants.

 

(b)        Nothing
contained in the Plan shall prevent the Company or any Subsidiary from adopting
other or additional compensation arrangements for its employees and
consultants.

 

(c)         The
Plan shall not constitute a contract for employment or services, and adoption
of the Plan shall not confer upon any individual any right to continued
employment, nor shall it interfere in any way with the right of the Company or
any Subsidiary to terminate the employment or services of any individual at any
time.

 

(d)        The
Participant shall pay to the Company, or make arrangements satisfactory to the
Company regarding the payment of, any U.S. (federal, state, or local) or
non-U.S. taxes of any kind required by law to be withheld with respect to any
payment hereunder.  The obligations of
the Company under the Plan shall be conditional on such payment or
arrangements, and the Company and its Subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment
otherwise due to the Participant.

 

(e)         The
Administrator shall establish such procedures as it deems appropriate for a
Participant to designate a beneficiary to whom any amounts payable in the event
of the Participant’s death are to be paid or by whom any rights of the
Participant, after the Participant’s death, may be exercised.

 

(f)         The
Plan, Unit Agreements, and all actions taken thereunder shall be governed by
and construed in accordance with the laws of the State of Delaware without
reference to principles of conflict of laws.

 

(g)         Subject
to Section 3(b), within the time period permitted by the applicable
Treasury Regulations, the Administrator may modify the Plan in the least
restrictive manner necessary in order to cause the provisions of the Plan to
comply with the requirements of Section 409A, so as to avoid the
imposition of  taxes and penalties
pursuant to Section 409A.

 

(h)        Subject
to Section 3(b), in the event an Award is granted to a Participant who is
employed or providing services outside the United States and who is not
compensated from a payroll maintained in the United States, the Administrator
may, in its sole discretion, modify the provisions of the Plan as they pertain
to such individual to comply with applicable non-U.S. law.

 

(i)          Each
Unit Agreement shall provide that if a Participant engages in any act of fraud,
insider trading or other securities law violation then:  (i) Participant shall immediately
forfeit, effective as of the date Participant engages in such conduct, all
vested and unvested Units; and (ii) with respect to Units, if any, that
were cash settled prior to the date Participant engaged in such conduct,
Participant shall return to the Company the cash proceeds received with respect
to such Units.

 

11

 

SECTION 8.        Effective
Date of Plan

 

The
Plan was adopted by the Board on December 20,
2007, to be effective December 20,
2007  (the “Effective Date”).  Termination of this Plan shall not affect the
terms or conditions of any Award granted on, or prior to, the termination date.

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]