Document:

Exhibit 10.1

 

INTRADO INC.

LONG TERM INCENTIVE PROGRAM

 

ARTICLE I

PURPOSE

 

The
purpose of this document is to set forth the general terms and conditions
applicable to the Long Term Incentive Program (the “Program”) established by
the Intrado Inc. (the “Company”) Board of Directors pursuant to, and in
implementation of, Article Four of the Company’s 1998 Stock Incentive
Plan, as amended (the “1998 Plan”).  The
Program is intended to provide a means to reinforce objectives for sustained
long-term performance and value creation by awarding selected employees of the
Company and non-employee members of the Board of Directors with payments in
shares of the Company’s common stock based on the Company’s level of
achievement of pre-established performance goals during the defined performance
period.  The Program is also intended to
support strategic planning processes, balance short and long-term decision
making and help provide competitive total compensation opportunities.

 

ARTICLE II

DEFINITIONS

 

2.1           Definitions. Where the
following words and phrases appear in the Program, they shall have the
respective meanings set forth below, unless their context clearly indicates to
the contrary. Other initially capitalized terms used herein but not defined
shall have the meanings ascribed to them in the 1998 Plan.

 

“1998
Plan” shall mean the Company’s 1998 Stock Incentive Plan, as amended.

 

“Award
Schedule” shall mean the schedule that contains the number of Share
Right Awards granted to each Participant during and for the Performance Period.

 

“Beneficiary”
shall mean the person, persons, trust or trusts entitled by will or the laws of
descent and distribution to receive the benefits specified under the Program in
the event of the Participant’s death prior to full payment of a Share Right
Award.

 

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

 

“Cause”
shall mean (i) the conviction of the Participant of a felony under Federal
law or the law of the state in which such action occurred, (ii) dishonesty
in the course of fulfilling the Participant’s employment duties that has a
materially adverse effect on the Company’s business or (iii) the
disclosure by the Participant to any unauthorized person or competitor of any
confidential information or confidential knowledge as to the business or
affairs of the Company and its subsidiaries.

 

“CEO”
shall mean the Chief Executive Officer of the Company.

 

“Change
of Control” shall mean one or more of the following events, under the
following guidelines:

 

(i)            Change in Ownership.  Any one person, or more than one person
acting as a group (as defined in subparagraph (iv) below), acquires
ownership of stock of the Company that, together with stock held by such person
or group, constitutes more than 50% of the total fair market value or total
voting power of the stock of the Company. 
However, if any one person or more than one person acting as a group is
considered to own more than 50% of the total fair market value or total voting
power of the stock of the Company, the acquisition of additional stock by the
same person or persons shall not be considered to cause a change in the
ownership of the Company (or to cause a change in the effective control of the
Company, within the meaning of subparagraph (ii) below).  An increase in the percentage of stock owned

 

 

by any one person, or persons acting as a group, as a
result of a transaction in which the Company acquires its stock in exchange for
property will be treated as an acquisition of stock for this purpose.

 

(ii)           Change in Effective Control.  Either (a) any one person, or more than
one person acting as a group (as determined under subparagraph (i) below),
acquires (or has acquired during the 12-month period ending on the date
of the most recent acquisition by such person or persons) ownership of stock of
the Company possessing 35% or more of the total voting power of the stock of
the Company, or (b) a majority of members of the Board of Directors is
replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board of Directors
prior to the date of the appointment or election;

 

(iii)          Change in Ownership of a
Substantial Portion of Assets.  Any
one person, or more than one person acting as a group (as determined in
subparagraph (iv) below), acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or
persons) assets from the Company that have a total gross fair market value
equal to or more than 40% of the total gross fair market value of all of the
assets of the Company immediately prior to such acquisition or
acquisitions.  For this purpose, gross
fair market value means the value of the assets of the Company, or the value of
the assets being disposed of, determined without regard to any liabilities
associated with such assets.  However,
there is no Change of Control under this subparagraph (iii) when there is
a transfer to an entity that is controlled by the shareholders of the
transferring corporation, as provided in Internal Revenue Service Notice 2005-1,
A-14(b).

 

(iv)          Persons Acting as a Group.  For the purposes of this definition, persons
will not be considered to be acting as a group solely because they purchase or
own stock, or purchase assets, of the Company at the same time, or as a result
of the same public offering.  However,
persons will be considered to be acting as a group if they are the owners of a
corporation that enters into a merger, consolidation, purchase or acquisition
of stock or assets, or similar business transaction with the Company.  If a person, including an entity, owns stock
in such a corporation and in the Company at a time that both of the companies
enter into a merger, consolidation, purchase or acquisition of stock or assets,
or similar transaction, such shareholder is considered to be acting as a group
with other shareholders in a corporation only with respect to, and to the
extent of, the ownership in that corporation prior to the transaction giving
rise to the change and not with respect to the ownership interest in the other
corporation.

 

(v)           Attribution.  For purposes of this definition, the
attribution rules of Section 318 of the Code shall apply to determine
stock ownership.  Stock underlying a
vested option is considered owned by the individual who holds the vested option
(and the stock underlying an unvested option shall not be considered owned by
the individual who holds the unvested option). 
For purposes of the preceding sentence, however, if a vested option is
exercisable for stock that is not substantially vested (as defined by Income
Tax Regulations Sections 1.83-3(b) and (j)), the stock underlying
the option is not treated as owned by the individual who holds the option.

 

(vi)          Interpretation under Code Section 409A.  This definition of Change of Control is
intended to comply with applicable definitions and requirements of Code Section 409A(a)(1)(B)(2)(v) and
Internal Revenue Service Notice 2005-1, Q&A 11-14, and shall be
interpreted consistently therewith. 
Furthermore, to the extent that further Internal Revenue Service
guidance, including notices, rulings, regulations, etc., are issued subsequent
to such Notice 2005-1 and modify the applicable change of control event
definitions and requirements, the definition herein of Change of Control shall
be deemed to have been modified accordingly as of the effective date of such
change as set forth in such guidance.

 

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

 

“Committee”
shall mean the Compensation Committee of the Board of Directors, which shall
serve as the Primary Committee of Directors for purposes of administering the
Stock Issuance Program for Section 16 Insiders in accordance with Article One
of the 1998 Plan.

 

“Common
Stock” shall mean the common stock, par value $0.001 per share, of the
Company.

 

 

“Company”
shall mean Intrado Inc. and its successors.

 

“Employee”
shall mean a full-time, active employee of the Company, who, in the opinion of
the CEO and Committee, is a key member of management of the Company and in a
position to contribute materially to the Company’s continued growth and
development and to its future financial success.

 

“Fair
Market Value” shall have the meaning set forth in the Appendix of the 1998
Plan.

 

“Non-Employee
Director” shall have the meaning set forth in Rule 16b-3(b)(3) promulgated
by the Securities and Exchange Commission (the “SEC”) under the Securities
Exchange Act of 1934, as amended, or any successor definition adopted by the
SEC.

 

“Participant”
shall mean an Employee or Non-Employee Director who participates in the Program
pursuant to the provisions of Article III hereof.  Unless otherwise authorized by the Committee,
an Employee shall not be eligible to participate in the Program while on a
leave of absence.

 

“Payment
Date” shall mean the later of August 30, 2008, or the first day
following the end of the Company’s “Blackout Period” (as this term or a similar
term is defined in the Company’s Insider Trading Policy in effect at the end of
the Performance Period) that includes such date.

 

“Performance
Period” shall mean the three year period beginning July 1, 2005 and
ended on June 30, 2008, unless the Program is earlier terminated or
suspended in accordance with Articles IX or X hereof.

 

“Performance
Goals” shall mean the levels of achievement of applicable Performance
Measures, as established by the Committee at the start of the Performance
Period, which are used to gauge Company performance, for the 12 month period
beginning July 1, 2007 and ended on June 30, 2008.

 

“Performance
Measures” shall mean the objective criteria selected by the Committee,
which are used in determining Performance Goals.  Performance Measure shall be based upon any
one or more of the following performance criteria, either individually, alternatively
or in any combination, applied to the Company as a whole and measured annually
and/or cumulatively over a period of years, on an absolute basis or relative to
a pre-established target, to previous years’ results or to a designated
comparison group, in each case as specified by the Committee in the Stock
Rights Award: (i) net income, (ii) revenue growth of the Company, (iii) cash
flow, (iv) return on assets, (v) return on shareholders’ equity, (vi) return
on invested capital, (vii) average annual growth in earnings per share, (viii) earnings
per share (including earnings before interest, taxes, depreciation and
amortization), (ix) operating profit or operating margins, and (xi)
operating expenses.

 

“Profitable”
shall mean positive net income for the 12 month period beginning July 1,
2007 and ended on June 30, 2008., determined according to generally accepted
accounting principles, provided, however, that costs associated with payments
made pursuant to this Program will be excluded.

 

“Program”
shall mean the Long Term Incentive Program adopted pursuant to Article Four
(the Stock Issuance Program) of the 1998 Plan.

 

“Share
Right Award” shall mean the Participant’s right to receive fully vested
shares of Common Stock upon the attainment of the Performance Goals by the
Company for the Performance Period, as determined by the Committee.

 

2.2           Number. Wherever appropriate
herein, words used in the singular shall be considered to include the plural
and words used in the plural shall be considered to include the singular.

 

2.3           Headings. The headings of
Articles and Sections herein are included solely for convenience, and if there
is any conflict between headings and the text of the Program, the text shall
control.

 

 

2.4           Inconsistency.  In the event of any inconsistency between the
terms of the Program and the 1998 Plan, the express provisions of the Program
shall control.

 

ARTICLE III

PARTICIPATION

 

3.1           Participants. The CEO will
nominate and the Committee will approve the Participants for the Performance
Period.

 

3.2           Partial Performance Period
Participation. If, after the beginning of a Performance Period, (i) a
person is newly hired, promoted or transferred into a position in which he or
she qualifies as a Participant, (ii) an employee who was not previously a
Participant for the Performance Period is subsequently nominated by the CEO, or
(iii) a new Non-Employee Director is elected to the Board of Directors,
then the Committee, or its delegate, may designate in writing such person as a
Participant and establish the basis for issuance of Share Right Awards payable
to such Participant.

 

If
an Employee who has previously been designated as a Participant takes a leave
of absence during the Performance Period, but has returned from such leave of
absence prior to the end of the Performance Period, the Committee may prorate
such Participant’s Share Right Award based upon that portion of the Performance
Period during which he or she was an active Participant, in which case the
prorated portion of the Participant’s Share Right Award shall be paid in
accordance with the provisions of Section 6.1.

 

3.3           No Right to Participate. No
Participant or other employee of the Company or its subsidiaries shall, at any
time, have a right to participate in the Program for any future performance
period, notwithstanding having previously participated in the Program.

 

ARTICLE IV

ADMINISTRATION

 

The
Committee shall have the power and authority granted it under Section III (C) of
Article One of the 1998 Plan, including, without limitation, the authority
to construe and interpret the Program, to prescribe, amend and rescind rules,
regulations and procedures relating to its administration and to make all other
determinations necessary or advisable for administration or interpretation of
the Program, subject to the terms and conditions of the 1998 Plan.

 

ARTICLE V

SHARE RIGHT AWARD DETERMINATIONS

 

5.1           Performance Goals and Measures.
Within the first 90 days of the Performance Period, the Committee shall select
the Performance Measure or Measures to be used in determining the Performance
Goals for the period beginning July 1, 2007 and ended on June 30,
2008.

 

5.2           Performance Requirements.
Within the first 90 days of the Performance Period, the Committee shall approve
the Performance Goal respecting each selected Performance Measure, and shall
establish an Award Schedule that details each Participant’s right to
receive Common Stock based upon the Company’s attainment of the Performance
Goals at the end of the Performance Period.

 

5.3           Award Determinations. At the
end of the Performance Period, the Committee shall determine if the Performance
Goals have been achieved, based upon a certification by the Company’s chief
financial officer that the Company has attained the Performance Goals.

 

 

ARTICLE VI

DISTRIBUTION OF COMMON STOCK

 

6.1           Form and Timing of Payment.
Upon certification that the Company has attained the Performance Goals, the
Committee shall authorize the issuance of the Common Stock underlying the Share
Right Awards to each Participant in accordance with the Award Schedule on the
Payment Date; provided, however, no payment shall be made unless and until the
Company is Profitable.

 

6.2           Excess Remuneration.
Notwithstanding the provisions of Section 6.1, to the extent that
incentive compensation hereunder does not qualify as performance-based
compensation pursuant to Section 162(m) of the Code, the Committee may, in
its discretion, with respect to a Participant who is a “covered employee” for
purposes of such Section 162(m), determine that payment of that portion of
the Common Stock, which would otherwise cause such Participant’s compensation
to exceed the limitation on the amount of compensation deductible by the
Company in any taxable year pursuant to such Section 162(m), be deferred.

 

6.3           Elective Deferral. Nothing
herein shall be deemed to preclude a Participant’s election to defer receipt of
a percentage of his or her Share Right Award beyond the time such amount would
have been payable hereunder pursuant to the Company’s Non-Qualified Deferred
Compensation Plan or other similar plan.

 

6.4           Tax Withholding. As a
condition to the making of an Award, upon the attainment of the Performance
Goals and transfer of Common Stock issued under the Award, the Company may
require the Participant to pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of any taxes of any kind
required by law to be withheld with respect to such Award.  If requested by a Participant, the Committee
may, in its discretion, which shall not be unreasonably withheld, permit the
Participant to satisfy any tax withholding obligations, in whole or in part, by
having the Company withhold a portion of such shares with a value equal to the
amount of taxes required by law to be withheld. Requests by a Participant to
have shares of Common Stock withheld shall be (i) made prior to the date
on which taxes of any kind are required by law to be withheld with respect to
the Common Stock subject to the Award, and (ii) irrevocable.

 

ARTICLE VII

TERMINATION OF EMPLOYMENT

 

7.1           Termination of Service during
Performance Period. In the event a Participant’s employment is terminated
other than death or disability (as determined by the CEO or his delegate), or,
if such Participant is a Non-Employee Director, such Participant’s service as a
member of the Board of Directors is terminated prior to the last business day
of the Performance Period, such Participant shall have no rights or entitlement
to the Share Right Award issued to Participant for such Performance
Period.  In the case of a Participant’s
disability (as such term is defined herein) or death during the Performance
Period, the prorated amount (determined by the percentage of the Performance
Period that elapsed prior to the onset of disability or death) of the maximum
amount that could be payable under such Participant’s Share Right Award, if
any, applicable to such Performance Period shall be paid to the Participant,
except in the case of death, in which case the amount of the Award shall be
paid to such Participant’s estate, or if there is no administration of the
estate, to the heirs at law, in accordance with the provisions of Section 6.1.
 For purposes hereof, a Participant shall
be considered to have a disability if the Participant is (i) unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment, which can be expected to last for a
continuous period of not less than 12 months, or (ii) is, by reason of any
medically determinable physical or mental impairment that can be expected to
last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three (3) months under
an accident and health plan covering employees of the Company.

 

7.2           Termination of Service after End
of Performance Period but Prior to the Payment Date. If a Participant’s
employment is terminated after the end of the Performance Period, but prior to
the Payment Date, for any reason other than termination for Cause, the amount of
any Award applicable to such Performance Period shall be paid to the
Participant in accordance with the provisions of Section 6.1, except in
the case of death, in which case the amount of the Award shall be paid to such
Participant’s estate, or if there is no administration of the estate, to the
heirs at law, as soon as practicable.

 

 

ARTICLE VIII

RIGHTS OF PARTICIPANTS AND BENEFICIARIES

 

8.1           Status as a Participant.
Status as a Participant shall not be construed as a commitment that any Share
Right Award will be paid or payable under the Program.

 

8.2           Employment. Nothing contained
in the Program or in any document related to the Program or to any Share Right
Award shall confer upon any Participant any right to continue as an employee or
in the employ of the Company or its subsidiaries or constitute any contract or
agreement of employment for a specific term or interfere in any way with the
right of the Company or its subsidiaries to reduce such person’s compensation,
to change the position held by such person or to terminate the employment of
such person, with or without cause.

 

8.3           Nontransferability. No benefit
payable under, or interest in, this Program shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge and any such attempted action shall be void and no such benefit or
interest shall be, in any manner, liable for, or subject to, debts, contracts,
liabilities or torts of any Participant or Beneficiary; provided, however,
that, nothing in this Section 8.3 shall prevent transfer by Will or
applicable laws of descent and distribution. 
Any attempt at transfer, assignment or other alienation prohibited by
the preceding sentence shall be disregarded and all amounts payable hereunder
shall be paid only in accordance with the provisions of the Program.

 

8.4           Nature of Program. No
Participant, Beneficiary or other person shall have any right, title or
interest in any fund or in any specific asset of the Company or any its
subsidiaries by reason of any Share Right Award hereunder.  There shall be no funding of any benefits
which may become payable hereunder. 
Nothing contained in the Program (or in any document related thereto),
nor the creation or adoption of the Program, nor any action taken pursuant to
the provisions of the Program shall create, or be construed to create, a trust
of any kind or a fiduciary relationship between the Company or an affiliate and
any Participant, Beneficiary or other person. 
To the extent that a Participant, Beneficiary or other person acquires a
right to receive payment with respect to a Share Right Award hereunder, such
right shall be no greater than the right of any unsecured general creditor of
the Company or other employing entity, as applicable.  All amounts payable under the Program shall
be paid in shares of the Company’s Common Stock subject to the terms and
conditions of the 1998 Plan, and no special or separate fund or deposit shall
be established and no segregation of assets shall be made to assure payment of
such amounts.  Nothing in the Program
shall be deemed to give any employee any right to participate in the Program
except in accordance herewith.

 

ARTICLE IX

CORPORATE CHANGE

 

9.1           In the event of a Change of Control,
with respect to a Participant’s Share Right Award for the Performance Period in
which the Change of Control occurred, such Participant shall be entitled to an
immediate payment of the Common Stock as if the Company shall have attained all
Performance Goals at the 100% performance level, regardless of the Company’s
actual performance during the period prior to the Change of Control, subject to
the possible deferral of such payment for covered employees under Section 6.2
hereof.

 

9.2           With respect to a Change of Control
that occurs after the end of the Performance Period but prior to the Payment
Date, a Participant shall be entitled to an immediate payment equal to the Share
Right Award for such Performance Period in accordance with Article VI
hereof.

 

9.3           If it is determined that any payment
pursuant to this Article IX would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”) or any interest
or penalties with respect to such excise tax, the payments under the Award
shall be reduced as described below if (A) the Participant would, by
reason of Section 4999 of the Code, be required to pay an excise tax on
any part of the Award to which Participant is entitled under Article IX,
and (B) the amount of the Award that Participant would retain on an
after-tax, present value basis would be increased as a result of such
reduction.  If the Award is required

 

 

to
be reduced, they shall be reduced only to the extent required, to prevent the
imposition upon Participant of the tax imposed under Section 4999 of the
Code.  Participant shall determine which
elements of the Payments shall be reduced to conform to the provisions of this Section 9.3.  All determinations required to be made under
this Section 9.3, including whether and when a reduction in benefits is
required and the amount of reduction and the assumptions to be utilized in
arriving at such determination, shall be made by a certified independent public
accounting firm that is designated by the Company and is reasonably acceptable
to the Participant (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and Participant.  All fees and expenses of the Accounting Firm
shall be borne solely by the Company.

 

ARTICLE X

AMENDMENT AND TERMINATION

 

Notwithstanding
anything herein to the contrary, the Committee may, at any time, terminate,
modify or suspend the Program, as well as make any changes required to conform
the Program and any award with applicable provisions and regulations relating
to deferral of compensation under Code Section 409A.  However, a Participant’s rights under any Share
Right Awards may not be abridged by any amendment, modification or termination
of the Plan without his individual consent.

 

ARTICLE XI

MISCELLANEOUS

 

11.1         Governing Law. The Program shall
be construed in accordance with the laws of the State of Colorado, without
giving effect to the principles of conflicts of law thereof, except to the
extent that it implicates matters which are the subject of the General
Corporation Law of the State of Delaware, which matters shall be governed by
the latter law.

 

11.2         Successor. All obligations and
rights of the Company under the Program shall be binding upon and inure to the
benefit of any successor to the Company.

 

11.3         Status of Stock. The Company
shall not be obligated to issue any Common Stock pursuant to any Award
hereunder at any time when the offering of the shares covered by such Award has
not been registered under the Securities Act of 1933, as amended, and such
other state and federal laws, rules or regulations as the Company or the
Committee deems applicable and, in the opinion of legal counsel to the Company,
there is no exemption from the registration requirements of such laws, rules or
regulations available for issuance and sale of such shares.Exhibit 10.2

 

INTRADO INC.

 

FORM OF

2005 SHARE RIGHT AWARD AGREEMENT

 

1.             Share Right Award.  Intrado Inc. (the “Company”), in the
exercise of its sole discretion pursuant to the Intrado Long Term Incentive
Program (the “Program”), adopted pursuant to Article Four of the
Company’s 1998 Stock Incentive Plan (the “1998 Plan”), does on June 23,
2005 (the “Award Date”) hereby award to                       
(the “Participant”)                   [Insert
number representing the maximum number of shares issuable upon vesting (110%
performance level for all three Performance Measures)] Share Rights (“Share Rights”)
upon the terms and subject to the conditions of this Award Agreement and the
Program.  In the event of any conflict
between the terms of the Program and this Award Agreement, the terms of the
Program shall govern.  Any terms not
defined herein shall have the meaning set forth in the Program.

 

2.             Rights
of the Participant with Respect to the Share Rights.  The Share Rights granted pursuant to this
Award Agreement do not and shall not entitle Participant to any rights of a
shareholder of Common Stock.  This Award
represents the Company’s unfunded and unsecured promise to issue shares of
Common Stock at a future date, subject to the terms contained herein and the
Program.  Participant has no rights under
the Share Rights other than the rights of a general unsecured creditor of the
Company.  The rights of Participant with
respect to the Share Rights shall remain forfeitable at all times prior to the
date on which such rights become vested in accordance with Section 6.1 of
the Program.  Unless terminated earlier
under Section 5 below, a Participant’s rights under this Award Agreement
with respect to any Share Rights issued under this Award Agreement shall
terminate at the time such Share Rights are converted into shares of Common Stock.

 

3.             Vesting of the Share
Rights.  Provided the Participant
remains continuously employed by the Company throughout the Performance Period,
a specified percentage of his/her Share Rights shall vest in accordance with
the vesting calculations set forth on Appendix A, attached hereto and
incorporated herein, based upon the Company’s level of attainment of the
Performance Goals set forth on Appendix B, attached hereto and
incorporated herein; provided, however, that no Share Rights shall vest unless
the Company attains the Performance Goal at the 90% level (the “90% Minimum
Threshold”) on at least two of the three Performance Measures, as determined at
the end of the Performance Period (the “Minimum Vesting Requirement”).  The Common Stock underlying the Share Rights
shall be distributed to the Participant on or before the Payment Date.

 

4.             Change of Control.  Notwithstanding any other provision herein,
if a Change in Control shall occur during the Performance Period, the
Participant shall be entitled to receive an immediate payment of Common Stock
in an amount equal to the number of shares of Common Stock which the Participant
would have received if the Company had attained each Performance

 

 

Goal at the 100% level for all three Performance Measures, regardless
of the Company’s actual performance prior to the Change of Control.

 

5.             Termination of
Participant’s Status as a Participant.

 

(a)           Upon termination of
Participant’s employment for any reason other than death or disability,
Participant shall have no rights or entitlement to any Share Rights that are
not vested.  It shall not be considered a
termination of employment for purposes of this Agreement if Participant is
placed on an approved leave of absence, unless the Committee shall otherwise
determine.

 

(b)           Upon termination of the
Participant’s employment by reason of death or disability (as defined in the
Program) of the Participant, the Participant shall be vested (or the
Participant’s Beneficiary in the case of the Participant’s death) in the number
of Share Rights eligible for vesting at the end of the Performance Period,
based upon the vesting calculations set forth in Appendix A, times a fraction,
the numerator of which is the number of full calendar months from July 1,
2005 to the date of such termination of employment and the denominator of which
is 36, and all other Share Rights shall be forfeited; provided, however, that
the Board of Directors may determine that the Participant (or the Beneficiary)
is entitled to receive a greater number of Share Rights up to but not exceeding
the number of Share Rights which would have been distributed had the
Participant continued to be employed until the end of the Performance Period.

 

6.             Adjustments
to Share Rights.  In the event that
the Committee shall determine that any stock dividend, extraordinary cash
dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination, exchange of shares, or other similar corporate event
affects the Common Stock such that an adjustment is required in order to
preserve the benefits or potential benefits intended to be made available
pursuant to this Award Agreement, then the Committee shall, in such manner as
the Committee, in its sole discretion, may deem equitable, adjust any or all of
the number of Share Rights subject to this Award Agreement and/or, if deemed
appropriate, make provision for a cash payment to the Participant; provided,
however, that the number of Share Rights subject to this Award Agreement shall
always be rounded down to the nearest whole number.

 

7.             Restriction on
Transfer.  Unless otherwise provided
for in the Program, Participant’s rights in the Share Rights and any interests
therein may not be transferred, pledged, assigned, sold or otherwise disposed
of in any manner, other than by will or by the laws of descent or
distribution.  Share Rights shall not be
subject to execution, attachment or other process.

 

8.             Income Tax Matters.

 

(a)            The
Company shall deduct or cause to be deducted from, or collect or cause to be
collected with respect to the Participant’s vested Share Rights any federal,
state, or local taxes required by law to be withheld or paid with respect to
such vested Share Rights, and Participant or Participant’s legal representative
or beneficiaries shall be required to pay any such

 

2

 

amounts.  The Company shall have the right to take such
action as may be necessary, in the Company’s opinion, to satisfy such
obligations.

 

(b)           In
accordance with the terms of the 1998 Plan, and such rules as may be
adopted by the Committee under the 1998 Plan or Program, Participant may elect
to satisfy his or her income tax withholding obligations arising from the
vesting of the Share Rights, by (i) delivering cash, check (bank check,
certified check or personal check) or money order payable to the Company, (ii) having
the Company withhold a portion of the shares of Common Stock otherwise to be
delivered having a Fair Market Value equal to the amount of such taxes, or (iii) delivering
to the Company shares of Common Stock already owned by Participant having a
Fair Market Value equal to the amount of such taxes.  Any shares already owned by Participant, as
referred to in the preceding sentence, must have been owned by the Participant
for no less than six months prior to the date delivered to the Company if such
shares were acquired upon the exercise of an option.  The Company will not deliver any fractional
share of Common Stock but will pay, in lieu thereof, the Fair Market Value of
such fractional share.  Participant’s
election must be made on or before the date that the amount of tax to be
withheld is determined.

 

(c)           Nothing
herein shall be deemed to preclude the Participant from electing to defer
receipt of the Common Stock underlying the vested Share Rights beyond the time
such amount would have been payable hereunder pursuant to the Company’s
Non-Qualified Deferred Compensation Plan or other similar plan, in accordance
with Article 6 of the Program.

 

9.             Miscellaneous.

 

(a)           This
Award does not confer on Participant any right with respect to the continuance
of any relationship with the Company or its subsidiaries, nor will it interfere
in any way with the right of the Company to terminate such relationship at any
time.

 

(b)           The
Company shall not be required to deliver any shares of Common Stock upon
vesting of any Share Rights until the requirements of all securities laws, rules or
regulations or other laws or rules (including the rules of any
securities exchange) as may be determined by the Company to be applicable are
satisfied. However, any Common Stock not issuable to a Participant pursuant to
this subparagraph (b) at any time shall be issuable to such Participant at
the first time that the requirements of this subparagraph (b) no longer
prevent such an issuance.

 

(c)            This
Award and grant of the Share Rights are subject to all of the terms and
conditions of the Program.

 

[SIGNATURE ON FOLLOWING PAGE]

 

3

 

Please
indicate your acceptance of this 2005 Share Right Award Agreement, and
acknowledge that you have received copies of the Program and 1998 Plan, as
currently in effect, by signing at the place provided and returning the
original of this Agreement.

 

INTRADO INC.

 

 

	
  By:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PARTICIPANT

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
									

 

4

 

APPENDIX A

 

VESTING CALCULATIONS

 

No
Share Rights shall vest unless the Company attains the 90% Vesting Requirement
(as defined in the 2005 Share Right Award Agreement).

 

If
the Company attains the 90% Vesting Requirement, then the actual number of
shares of Intrado common stock that will be issued upon vesting of the Share
Rights will be determined in the charts below:

 

(1)           Revenue Performance Measure.  Thirty-four
percent (34%), or             ,
of the Share Rights (the “Revenue Share Rights”) shall vest as follows, based
upon the Company’s level of attainment of Revenue Performance Goals:

 

	
  Revenue Performance Goals

  	
   

  	
  Number of Shares to be

  Issued upon Vesting of

  Revenue Share Rights

  
	
  110%
  or more ($223,300,000 or more)

  	
   

  	
   

  
	
  100%
  ($203,000,000)

  	
   

  	
   

  
	
  90%
  Minimum Threshold ($182,700,000)

  	
   

  	
   

  
	
  Less
  than 90% (Less than $182,700,000)

  	
   

  	
  -0-

  

 

If
the Company attains a level of performance that is equal to or greater than the
90% Minimum Threshold, but less than or equal to 110% of the Revenue
Performance Goal, then the actual number of shares of Common Stock issued will
be determined by interpolation and rounded down to the nearest whole number.

 

(2)           Operating Margin Performance Measure. 
Thirty-three percent (33%), or             ,
of the Share Rights (the “Operating Margin Share Rights”) shall vest as
follows, based upon the Company’s level of attainment of Operating Margin Performance
Goals:

 

	
  Operating Margin Performance
  Goals

  	
   

  	
  Number of Shares to be

  Issued upon Vesting of OM

  Share Rights

  
	
  110%
  or more (19.8%)

  	
   

  	
   

  
	
  100%
  (18%)

  	
   

  	
   

  
	
  90%
  Minimum Threshold (16.2%)

  	
   

  	
   

  
	
  Less
  than 90% (Less than 16.2%)

  	
   

  	
  -0-

  

 

If
the Company attains a level of performance that is equal to or greater than the
90% Minimum Threshold, but less than or equal to 110% of the Operating Margin
Performance Goal, then the actual number of shares of Common Stock issued will
be determined by interpolation and rounded down to the nearest whole number.

 

(3)           Return on Invested Capital Performance
Measure.  Thirty-three percent (33%), or             ,
of the Share Rights (the “ROIC Share Rights”) shall vest as follows,
based upon the Company’s level of attainment of Return on Invested Capital Performance
Goals:

 

5

 

	
  Return on Invested Capital

  Performance Goals

  	
   

  	
  Number of Shares to be

  Issued upon Vesting of ROIC

  Share Rights

  
	
  110%
  or more (15.4%)

  	
   

  	
   

  
	
  100%
  (14%)

  	
   

  	
   

  
	
  90%
  Minimum Threshold (12.6%)

  	
   

  	
   

  
	
  Less
  than 90% (Less than 12.6%)

  	
   

  	
  -0-

  

 

If
the Company attains a level of performance that is equal to or greater than the
90% Minimum Threshold, but less than or equal to 110% of the Operating Margin
Performance Goal, then the actual number of shares of Common Stock issued will
be determined by interpolation and rounded down to the nearest whole number.

 

6

 

APPENDIX B

 

PERFORMANCE GOALS

 

	
   

  	
   

  	
  Performance Goals

  	
   

  
	
  Performance Measures

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  110%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue

  	
   

  	
  $

  	
  182,700,000

  	
   

  	
  $

  	
  203,000,000

  	
   

  	
  $

  	
  223,300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating Margin (1)

  	
   

  	
  16.2

  	
  %

  	
  18.0

  	
  %

  	
  19.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Return on Invested Capital (2)

  	
   

  	
  12.6

  	
  %

  	
  14.0

  	
  %

  	
  15.4

  	
  %

  
											

 

(1) Operating
margin is defined as the sum of income from operations and compensation expense
attributable to the issuance of common stock upon vesting of all Share Rights,
divided by revenue.

 

(2) Return
on invested capital is defined as the sum of net income and compensation
expense attributable to the issuance of common stock upon vesting of all Share
Rights, divided by the sum of long-term debt and stockholders’ equity at the
end of the Performance Period.

 

7

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