Document:

Exhibit 10.24

 

GOLFSMITH INTERNATIONAL HOLDINGS, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

 

May 4, 2010

 

Annual Retainers

 

Except
as otherwise provided herein, Golfsmith International Holdings, Inc. (the “Company”)
shall pay non-employee directors (for the purpose of this Non-Employee
Directors Compensation Plan, “Non-Employee
Directors” shall mean those individuals who are neither employees of
the Company nor First Atlantic Capital, Ltd.) the following annual
retainers in equal quarterly amounts.

 

	
  Director

  	
   

  	
  $

  	
  48,000

  	
   

  
	
  Audit Committee Chairperson

  	
   

  	
  $

  	
  15,000

  	
   

  
	
  Compensation Committee Chairperson

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Nominating Committee Chairperson

  	
   

  	
  $

  	
  5,000

  	
   

  

 

Meeting and Other Fees

 

	
  Board of Directors meeting

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Committee meeting

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Other meetings or Board service (as approved by
  the Chairman of the Board)

  	
   

  	
  $

  	
  1,000

  	
   

  

 

Deferred Stock Units

 

Annual
DSU Grant: The Company shall grant each Non-Employee
Director, at the Annual Shareholder’s Meeting or as soon as permitted by
applicable insider trading policies, fifteen thousand (15,000) deferred stock
units (“DSUs”) each equal to one share of the common stock. DSUs will be
payable and exercisable by directors only upon termination from Board Service.

 

Expense Reimbursement

 

The
Company shall reimburse Non-Employee Directors for their out-of-pocket travel
and related expenses incurred in attending all Board and committee meetings and
other Board service.

 

 

Fees Pro-rated Based Upon Annual Shareholder’s Meeting

 

Director
appointments shall generally be completed at the Annual Shareholder’s Meeting
(each, an “ASM”). To the extent a director is nominated at a time other than
the ASM, any DSU and Annual Retainer payment will be prorated from the most
recent applicable ASM.Exhibit 10.2

 

SUPERMEDIA INC.

EXECUTIVE TRANSITION PLAN

 

(Amended and Restated as of May 26, 2010)

 

1.                                      Purpose. The purpose
of the Executive Transition Plan (the “Plan”) is to provide certain protections
to covered executives in the event their employment is involuntarily
terminated, including in connection with a Change in Control of the Company. It
is intended that having the protections provided by the Plan will alleviate
personal concerns that covered executives might otherwise have about
uncertainties that may arise in the face of certain business exigencies and
opportunities the Company may have from time to time and, in turn, provide
greater assurance to the Company and its shareholders that the covered
executives will be able to maintain their undivided focus on and attention to
the business and interests of the Company and the enhancement of shareholder
value.

 

2.                                      Certain
Definitions.

 

(a)                                 “Affiliate”
means any entity at least 50%  of the voting,
capital or profit interests of which are owned directly or indirectly by the
Company.

 

(b)                                 “Cause” means a
participant’s (a) conviction or plea of nolo contendre to a felony; (b) commission
of fraud or a material act or omission involving dishonesty with respect to the
Company or its Affiliates, as reasonably determined by the Company; (c) willful
failure or refusal to carry out the material responsibilities of his or her
employment, as reasonably determined by the Company; (d) gross negligence,
willful misconduct, or engaging in a pattern of behavior which has had or is
reasonably likely to have a significant adverse effect on the Company, as
reasonably determined by the Company; or (e) willfully engaging in any act
or omission that is in material violation of a material policy of the Company,
including, without limitation, policies on business ethics and conduct, and
policies on the use of inside information and insider trading.

 

(c)                                  “Change in
Control” means the occurrence of any of the following:

 

(i)                                     any person, as
such term is used in Section 13(d) and 14(d) of the Exchange
Act, other than (1) the Company, (2) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, (3) any
entity owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of stock of the Company,
or (4) any person who becomes a beneficial owner (as defined below) in
connection with a transaction described in clause (1) of subparagraph (iii) below,
is or becomes the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such person any securities
acquired directly from the Company or its affiliates) representing 40 percent or
more of the combined voting power of the Company’s then outstanding voting
securities;

 

(ii)                                  the following
individuals cease for any reason to constitute a majority of the directors then
serving: individuals who on December 

 

 

31, 2006, constitute the Board and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation relating to the election of directors of the Company) whose
appointment or election by the Board or nomination for election by the Company’s
shareholders was approved or recommended by a vote of at least two-thirds of
the directors then still in office who were directors on December 31,
2006, or whose appointment, election or nomination for election was previously
so approved or recommended;

 

(iii)                               there is
consummated a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other entity, other than (1) a merger
or consolidation which results in the directors of the Company immediately
prior to such merger or consolidation continuing to constitute at least a
majority of the board of directors of the Company, the surviving entity or any
parent thereof or (2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person is
or becomes the beneficial owner, directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or its affiliates) representing
40% or more of the combined voting power of the Company’s then outstanding
securities;

 

(iv)                              the
shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets,
other than a sale or disposition by the Company of all or a majority of the
Company’s assets, income or revenue to an entity, at least 50% of the combined
voting power of the voting securities of which are owned by shareholders of the
Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale; or

 

(v)                                 any other
transaction or event occurs that is designated by the Company’s Board of
Directors as a “Change in Control” for purposes of this Agreement or that would
be required to be reported as a “change in control” on Form 8-K under the
Exchange Act.

 

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

 

(e)                                  “Committee”
means the Human Resources Committee of the Board of Directors of the Company.

 

(f)                                   “Company” means
SuperMedia Inc., a Delaware corporation, and any successor thereto.

 

(g)                                  “Disability”
means the inability of a participant to perform the material duties of his or
her employment by reason of a medically determinable physical or mental
impairment that can be expected to result in death or that has lasted or is
expected to last for a 

 

2

 

continuous period of at least 12 months, as
determined by a duly licensed physician selected by the Committee.

 

(h)                                 “Exchange Act”
means the Securities Exchange Act of 1934.

 

(i)                                     “Good Reason”
means (i) a material adverse change in a participant’s status or position,
including, without limitation, any material adverse change resulting from a
diminution in the participant’s position, duties, responsibilities or authority
or the assignment to the participant of duties or responsibilities that are
materially inconsistent with his or her status or position or, if applicable, a
material breach by the Company of a participant’s employment agreement; (ii) a
reduction in the participant’s annual base salary or a failure to pay same; (iii) a
reduction in the participant’s target incentive award opportunities, expressed
as a percentage of the participant’s base salary; (iv) the relocation of
the participant’s principal place of employment by more than 50 miles from the
current location; or (v) at the time of a Change in Control, the successor
or acquiring company fails or refuses to assume the obligations of the Company
under this Plan or, if applicable, the participant’s employment agreement.
Before terminating employment for Good Reason, a participant must specify in
writing to the Company the nature of the act or omission that the participant
deems to constitute Good Reason and provide the Company 30 days after receipt
of such notice to review and, if required, correct the situation (and thus
prevent the participant’s termination for Good Reason).

 

(j)                                    “Long-Term
Incentive Award” means any equity-based or other incentive award (other than an
annual incentive award) that is subject to vesting or forfeiture conditions.

 

3.                                      Administration.

 

(a)                                 The Committee. The Plan
shall be administered by the Committee. Subject to the provisions of the Plan,
the Committee, acting in its sole and absolute discretion, shall have full
power and authority to interpret, construe and apply the provisions of the Plan
and to take such actions as it deems necessary or appropriate in order to carry
out the provisions of the Plan. The decision of the Committee as to any
question or issue arising under or in connection with the Plan or an individual’s
participation in the Plan shall be final and conclusive on all persons. The
Committee may delegate to other persons such duties and functions as it deems
appropriate in connection with the administration of the Plan.

 

(b)                                 Indemnification.  The Company shall indemnify and hold harmless
each member of the Committee and any employee or director of the Company or an
Affiliate to whom any duty or function relating to the administration of the
Plan is delegated from and against any loss, cost, liability (including any sum
paid in settlement of a claim with the approval of the Board), damage and
expense (including legal and other expenses incident thereto) arising out of or
incurred in connection with the Plan, unless and except to the extent attributable
to such person’s fraud or willful misconduct.

 

4.                                      Participation. The Plan
covers employees of the Company or an Affiliate who are in compensation bands
1, 2 or 3.

 

5.                                      Involuntary
Termination of Participant’s Employment Without Cause—General. Subject to Section 10
(imposing additional conditions with respect to payments and benefits 

 

3

 

under the Plan) and except as otherwise provided in Section 6
(relating to involuntary termination in conjunction with a Change in Control),
if the Company or an Affiliate terminates a participant’s employment without
Cause, the participant shall be entitled to receive the following payments and
benefits:

 

(a)                                 a single sum
cash payment equal to the sum of (1) any unpaid base salary earned by the
terminated participant through the date of his or her termination of
employment, and (2) any unpaid short term incentive award earned by the
participant for the preceding year;

 

(b)                                 payment of any
business expenses that were previously incurred but not reimbursed and are
otherwise eligible for reimbursement;

 

(c)                                  any payments or
benefits which are payable to the terminated participant or any covered spouse,
dependent or beneficiary of the terminated participant, under and in accordance
with the provisions of any employee plan, program or arrangement of the Company
or an Affiliate (other than the Plan);

 

(d)                                 a single sum
cash payment equal to a proportionate amount of the terminated participant’s
target short term incentive award for the calendar year in which the
participant’s employment terminates, based upon the number of days elapsed
since the beginning of such calendar year;

 

(e)                                  a single sum
cash payment equal to the product of X
multiplied by Y, where—

 

X = 1.0 if the terminated
participant is, or at any time during the period of his or her participation in
the Plan was, in compensation band 2 or 3 (or their equivalents), and 2.0 if
the terminated participant is, or at any time during the period of his or her
participation in the Plan, was in compensation band 1; and

 

Y = the sum of (1) the
terminated participant’s highest annual rate of base salary at any time during
the preceding 24 months, and (2) the participant’s target short term
incentive award for the calendar year in which his or her employment terminates
(or, if greater, the actual annual short term incentive award earned by the
terminated participant for the preceding calendar year);

 

(f)                                   effective on
the date of the participant’s termination of employment, all continuing service
and performance conditions will be waived with respect to any Long-Term
Incentive Award  made to the participant
at least six months before the termination of his or her employment, with the
payout under a performance-based award being equal to the target amount;

 

(g)                                  if applicable,
the terminated participant will continue to participate in the Company’s
Executive Life Insurance Program for the longer of (1) the number of
months following the termination of his or her employment equal to the product
of 12 multiplied by the severance multiplier (X) determined under 5(e) above (or, if
earlier, until the participant’s death) as if such employment had continued at
the terminated participant’s highest annual rate of base 

 

4

 

salary in effect at any time during the 12 months
preceding the participant’s actual termination of employment, or (2) the
period provided by such Program;

 

(h)                                 if the
terminated participant and/or any spouse or dependent participates (other than
via COBRA) in a Company group health plan, then, for the number of months equal
to the product of 12 multiplied by the severance multiplier (X) determined under Section 5(e) above
or, if sooner, until corresponding coverage is obtained under a successor
employer’s plan, the terminated participant and/or such spouse and/or
dependents may elect to continue participating in such plan at the same benefit
and contribution levels in effect immediately before the termination of the
participant’s employment (which continuing participation will be deemed to be
in addition to and not in lieu of COBRA), or, if such coverage is not permitted
by the plan or by applicable law, Company will provide COBRA continuation
coverage to such terminated participant and/or spouse or dependent, at the
Company’s sole expense, if and to the extent any of such persons elects and is
entitled to receive COBRA continuation coverage; and

 

(i)                                     outplacement
services for up to one year with a reputable firm selected by the Company.

 

6.                                      Involuntary
Termination of a Participant’s Employment Without Cause in Conjunction with a
Change in Control. Subject to Section 10 (relating to other
agreements that may be applicable and restoration of payments due to a
terminated participant’s violation of restrictive covenants and the execution
and delivery of a release), if the Company or an Affiliate terminates a
participant’s employment without Cause during the period beginning six months
prior to the date of a Change in Control (or, if earlier, the date a definitive
agreement is signed with respect to the Change in Control) and ending on the
second anniversary of the Change in Control, or if a participant terminates his
or her employment for Good Reason within two years after the consummation of a
Change in Control, then the terminated participant shall be entitled to receive
the payments and benefits described in Section 5, except that, for the
purpose of the severance calculation under this section 6, the calculation in Section 5(e) will
be modified such that the severance multiplier (X) will
be (a) 2.0 with respect to a terminated participant who is or who, at any
time during the period of his or her participation in the Plan, was in
compensation band 2 or 3, and (b) 3.0 with respect to a terminated
participant who is, or at any time during the period of his or her
participation in the Plan, was in compensation band 1. If a participant is
entitled to receive payments and benefits under this Section 6 due to a
termination of employment prior to but in conjunction with a Change in Control
and if, with respect to such termination of employment, the participant
receives payments or benefits under Section 5, then, in order to avoid
duplication, the payments and benefits to which the participant is entitled
under this Section 6 will be reduced by the payments and benefits which
the participant has received under Section 5.

 

7.                                      Effect of a
Change in Control on Long-Term Incentive Awards. All outstanding Company
Long-Term Incentive Awards  held by a participant
shall become fully vested immediately before the occurrence of a Change in
Control if (a) the participant is then still employed by the Company or an
Affiliate; or (b) the participant is entitled to payments and benefits
under Section 5 or Section 6 as a result of the termination of his or
her employment during the pre-Change in Control severance protection period
described in Section 6. If a participant becomes vested in a Long-Term
Incentive Award pursuant to part (b) of the 

 

5

 

preceding sentence, then, before the Change in
Control, the Company will either reinstate such award to the extent it would
otherwise not be vested, or make a cash payment to the participant equal to the
then value of the non-vested portion of the award. The vesting and other terms
and conditions of a participant’s Long-Term Incentive Awards will continue to
govern except as otherwise specifically provided by this Section 7.

 

8.                                      Termination Due
to Death or Disability. In  the  event  that  a  participant’s  employment  terminates  due  to  death  or  is  terminated  by  the  Company  due  to  Disability,  (a)  the  participant  (or  the  participant’s  beneficiary,  as  the  case  may  be)  shall  be  entitled  to  receive  an  amount  equal  to  the  sum  of  (1)  six  months’  base  salary,  plus  (2)  pro  rata  target  bonus  for  the  year  in  which  the  participant’s  employment  terminates,  payable  in  the  form  of  a  single-sum  cash  payment  as  soon  as  practicable  but  not  more  than  sixty  days  following  such  termination  of  employment,  (b)  if  the  participant’s  employment  terminates  due  to  Disability,  the  participant  shall  be  entitled  to  two  years  of  continuing  group  health  and  welfare  benefits  (including  continuing  participation  in  the  Company’s  Executive  Life  Insurance  Program  and  conversion  of  any  life  or  disability  policies)  at  the  Company’s  expense,  and  (c)  the  participant  (or  beneficiary)  will  be  fully  vested  in  all  outstanding  Long-Term  Incentive  Awards,  it  being  understood,  however,  that,  the  payout,  if  any,  with  respect  to  a  performance-based  award  will  remain  contingent  upon  the  satisfaction  of  the  applicable  performance  condition(s).

 

9.                                      Excise Tax
Payments. If a participant, hired prior to January 1,
2010, is entitled to receive payments and benefits under the Plan and if, when
combined with the payments and benefits the participant is entitled to receive
under any other plan, program or arrangement, the participant would be subject
to excise tax under Section 4999 of the Code, then the Company shall make “gross-up”
payments to the participant in the amount(s), at the time(s) and upon the
terms and conditions set forth in Exhibit A annexed to the Plan and
incorporated herein by reference.

 

10.                               Additional
Conditions of Severance Payments.

 

(a)                                 Effect of Other
Agreements. Notwithstanding the provisions hereof, if a
terminated participant is entitled to receive a payment or benefit under the
Plan and the terminated participant is also entitled to receive a payment or
benefit under similar circumstances from the Company or an Affiliate under
another plan or agreement, then the Company may reduce the amount of the
corresponding payment or adjust the corresponding benefit to which the
participant (or the participant’s beneficiary) is entitled under the Plan if
and to the extent reasonably necessary in order to avoid an unintended
duplication of any such payment or benefit.

 

(b)                                 Restoration. Any severance
payments and benefits due, made or provided pursuant to the Plan shall be
subject to continuing compliance with the restrictive covenants described in Exhibit B
annexed to and made a part of the Plan, and repayment pursuant to this Section 10(b).
As a condition of coverage under the Plan, each participant is subject to the
restrictions described in Exhibit B. If a participant violates or is in
breach of any restrictions set forth in Exhibit B (the determination of
which shall be made in the discretion of the Committee), then (1) the
participant shall not be entitled to any further severance payments and
benefits under the Plan, (2) the participant shall immediately return to
the Company any severance payments and the value of any severance benefits
previously received hereunder, and (3) the participant 

 

6

 

shall have no further rights or entitlements under
the Plan. This Section 10(b) shall not in any manner supersede or
limit any other right the Company may have to enforce or seek legal or
equitable relief based on the Plan or Exhibit B.

 

(c)                                  Release of
Claims. Notwithstanding anything herein to the contrary, the Committee may
condition severance payments or benefits which, but for the Plan, would not
otherwise be payable, on the execution and delivery of a general release in
favor of the Company, its Affiliates and their officers, directors and
employees, in such form as the Committee may specify. Any payment or benefit
that is so conditioned may be deferred until the expiration of the seven day
revocation period prescribed by the Age Discrimination in Employment Act of
1967, as amended, or any similar revocation period in effect on the effective
date of the termination of the participant’s employment.

 

11.                               No Duty to
Mitigate/Set Off. Except as otherwise provided in the Plan or in an
employment or other agreement, a participant entitled to receive any payment or
benefits hereunder shall not be required to seek other employment or to attempt
in any way to reduce any amounts payable to him or her pursuant to the Plan and
the payments and benefits payable hereunder shall not be reduced by any compensation
earned by the participant as a result of employment or consultancy with another
person.

 

12.                               Amendment and
Termination. The Committee may amend the Plan at any time and
from time to time and the Committee may terminate the Plan at any time after December 31,
2008, provided, however, that any such action which would have an adverse
effect on the amount, timing or value of the payments or benefits a participant
is or otherwise may become entitled to receive under the Plan shall not be
effective with respect to the participant (a) if his or her employment
terminates before or within six months after the date such action is taken and
written notice thereof is furnished to the participant, and/or (b) prior
to the second anniversary of a Change in Control if such action is taken (1) on
the day of or subsequent to the Change in Control, (2) prior to the Change
in Control, but at the request of a third party participating directly or
indirectly in the Change in Control, or (3) otherwise in connection with
or in anticipation of the Change in Control.

 

13.                               Successors and
Beneficiaries.

 

(a)                                 Successors and
Assigns of Company.  The Company
shall require any successor or assignee, whether direct or indirect, by
purchase, merger, consolidation or otherwise, of all or substantially all the
business or assets of the Company, expressly and unconditionally to assume and
agree to perform or cause to be performed the Company’s obligations under the
Plan in the same manner and to the same extent that the Company would be required
to perform if no such succession or assignment had taken place. In any such
event, the term “Company,” as used in the Plan shall mean the Company, as
defined above and any such successor or assignee.

 

(b)                                 Beneficiary of
Deceased Participant. For the purposes hereof, a deceased participant’s
beneficiary will be the person or persons designated as such in a written Plan
beneficiary designation filed with the Committee or its designee, which may be
revoked or revised in the same manner at any time prior to the participant’s
death. In the absence of a 

 

7

 

properly filed written Plan beneficiary designation
or if no designated beneficiary survives a participant, the deceased
participant’s estate will be deemed to be the participant’s beneficiary
hereunder.

 

14.                               Miscellaneous.

 

(a)                                 Nonassignability. With the
exception of a participant’s beneficiary designation, no participant or
beneficiary may pledge, transfer or assign in any way his or her right to
receive payments under the Plan, and any attempted pledge, transfer or
assignment shall be void and of no force or effect.

 

(b)                                 Legal Fees to
Enforce Rights after a Change in Control. If, following a Change in
Control, the Company fails to comply with any of its obligations under the Plan
or the Company takes any action to declare the Plan void or unenforceable or
institutes any litigation or other legal action designed to deny, diminish or
to recover from any participant (or beneficiary) the payments and benefits
intended to be provided, then such participant (or beneficiary, as the case may
be) shall be entitled to retain counsel of his or her choice at the expense of
the Company to represent such participant (or beneficiary, as the case may be)
in connection with the good faith initiation or defense of any litigation or
other legal action, whether by or against the Company or any director, officer,
stockholder or other person affiliated with the Company or any successor
thereto in any jurisdiction.

 

(c)                                  Not a Contract
of Employment. The terms and conditions of the Plan shall not be
deemed to constitute a contract of employment between any participant and the
Company or any of its Affiliates. Nothing in the Plan shall be deemed to give
any employee the right to be retained in the employ or other service of the
Company or any of its Affiliates or to interfere with the right of the Company
or any of its Affiliates to terminate a participant’s employment at any time.

 

(d)                                 Governing Law. The Plan
shall be governed by the laws of the State of Texas, excluding its conflict of
law rules.

 

(e)                                  Withholding.  The Company and its Affiliates may withhold
from any and all amounts payable under the Plan such federal, state and local
taxes as may be required to be withheld pursuant to any applicable law or
regulation.

 

8

 

EXHIBIT A

 

Excise Tax Gross-Up

 

1.                                      Gross-Up
Payment. If any payment or benefit received or to be received by a
participant, hired prior to January 1, 2010, from the Company pursuant to
the terms of the Plan to which this Exhibit A is attached (the “Plan”) or
otherwise (the “Payments”) would be subject to the excise tax (the “Excise Tax”)
imposed by Section 4999 of the Internal Revenue Code (the “Code”) as
determined in accordance with this Exhibit A, the Company shall pay the
participant, at the time(s) specified below, an additional amount (the “Gross-Up
Payment”) such that the net amount the participant retains, after deduction of
the Excise Tax on the Payments and any federal, state, and local income tax and
the Excise Tax upon the Gross-Up Payment, and any interest, penalties, or
additions to tax payable by a participant with respect thereto, shall be equal
to the total present value (using the applicable federal rate (as defined in
section 1274(d) of the Code) in such calculation) of the Payments at the
time such Payments are to be made.

 

2.                                      Eligibility. A participant
must have been hired prior to January 1, 2010 to be eligible for any
Gross-Up Payment(s).

 

3.                                      Calculations. For purposes
of determining whether any of the Payments shall be subject to the Excise Tax
and the amount of such excise tax—

 

(a)                                 the total
amount of the Payments shall be treated as “parachute payments” within the
meaning of section 280G(b)(2) of the Code, and all “excess parachute
payments” within the meaning of section 280G(b)(1) of the Code shall be
treated as subject to the excise tax, except to the extent that, in the written
opinion of independent counsel or an independent national accounting or other
qualified professional firm selected by the Company (“Independent Adviser”), a
Payment (in whole or in part) does not constitute a “parachute payment” within
the meaning of section 280G(b)(2) of the Code, or such “excess parachute
payments” (in whole or in part) are not subject to the Excise Tax;

 

(b)                                 the amount of
the Payments that shall be subject to the Excise Tax shall be equal to the
lesser of (1) the total amount of the Payments or (2) the amount of “excess
parachute payments “ within the meaning of section 280G(b)(1) of the Code
(after applying clause (a), above); and

 

(c)                                  the value of
any non-cash benefits or any deferred payment or benefit shall be determined by
the Independent Adviser in accordance with the principles of section 280G(d)(3) and
(4) of the Code.

 

4.                                      Tax Rates. For purposes
of determining the amount of the Gross-Up Payment, a participant shall be
deemed to pay federal income taxes at the highest marginal rates of federal
income taxation applicable to individuals in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes, if any, at the
highest marginal rates of taxation applicable to individuals as are in effect
in the state and locality of his or her residence in the calendar year in which
the Gross-Up Payment is to be made, net of the maximum 

 

 

reduction
in federal income taxes that can be obtained from deduction of such state and
local taxes, taking into account any limitations applicable to individuals
subject to federal income tax at the highest marginal rates.

 

5.                                      Time of
Gross-Up Payments. The Gross-Up Payments provided for in this Exhibit A
shall be made upon the earlier of (a) the payment to a participant of any
Payment or (b) the imposition upon a participant, or any payment by him or
her, of any Excise Tax.

 

6.                                      Adjustments to
Gross-Up Payments. If it is established pursuant to a final
determination of a court or an Internal Revenue Service proceeding or the
written opinion of the Independent Adviser that the Excise Tax is less than the
amount previously taken into account hereunder, the participant shall repay the
Company, within 30 days of her receipt of notice of such final determination or
opinion, the portion of the Gross-Up Payment attributable to such reduction
(plus the portion of the Gross-Up Payment attributable to the Excise Tax and
federal, state, and local income tax imposed on the Gross-Up Payment being
repaid by the participant if such repayment results in a reduction in Excise
Tax or a federal, state, and local income tax deduction) plus any interest
received by the participant on the amount of such repayment, provided that if
any such amount has been paid by a participant as an Excise Tax or other tax,
he or she shall cooperate with the Company in seeking a refund of any tax
overpayments, and shall not be required to make repayments to the Company until
the overpaid taxes and interest thereon are refunded to him or her.

 

7.                                      Additional
Gross-Up Payment. If it is established pursuant to a final
determination of a court or an Internal Revenue Service proceeding or the
written opinion of the Independent Adviser that the Excise Tax exceeds the
amount taken into account hereunder (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess within 30 days of the Company’s receipt of notice of such final
determination or opinion.

 

8.                                      Change in Law
or Interpretation. In the event of any change in or further
interpretation of section 280G or 4999 of the Code and the regulations
promulgated thereunder,  a participant
shall be entitled, by written notice to the Company, to request a written opinion
of the Independent Adviser regarding the application of such change or further
interpretation to any of the foregoing, and the Company shall use its best
efforts to cause such opinion to be rendered as promptly as practicable.

 

9.                                      Fees and
Expenses. All fees and expenses of the Independent Adviser
incurred in connection with this Exhibit A shall be borne by the Company.

 

10.                               Survival. The Company’s
obligation to make a Gross-Up Payment with respect to Payments made or accrued
before the termination of the Plan shall survive the termination of the Plan
unless (a) the affected participant’s employment is terminated for Cause, (b) the
participant fails to execute a release in accordance with the requirements of
the Plan, or (c) the participant fails to comply with the restrictive
covenants contained in Exhibit B of the Plan, in which event the Company’s
obligation under this Exhibit A shall terminate immediately.

 

2

 

11.                               Defined Terms. Unless
otherwise clearly required by the context, for purposes of this Exhibit A,
any capitalized term that is defined in the Plan and is not defined in this Exhibit A
shall have the meaning ascribed to such term in the Plan.

 

3

 

EXHIBIT B

CONFIDENTIALITY AND

POST-EMPLOYMENT RESTRICTIVE COVENANTS

 

This
Exhibit B contains the confidentiality and post-employment restrictive
covenants referenced in the Plan to which this Exhibit B is annexed. This Exhibit B
is a part of and will be interpreted in accordance with and otherwise subject
to the provisions of the Plan. The payments and benefits provided to a
participating employee (a “Participant”) under the Plan are expressly
conditioned upon continuing compliance with the covenants set forth herein and
the provisions hereof.

 

1.                                      Access to
Secret and Confidential Information. The Company has furnished
and shall furnish to the Participant Secret and Confidential Information
(including, without limitation, Secret and Confidential Information of the
Company’s Affiliates) (collectively “Secret and Confidential Information”),
which the Participant would not otherwise have access to or knowledge of.
Secret and Confidential Information includes, without limitation, the Company’s
technical and business information, whether patentable or not, which is of a
confidential, trade secret or proprietary character, and which is either
developed by the Participant alone, with others or by others; lists of
customers; identity of customers; identity of prospective customers; contract
terms; bidding information and strategies; pricing methods or information;
computer software; computer software methods and documentation; hardware; the
Company’s or its Affiliates’ methods of operation; the procedures, forms and
techniques used in servicing accounts; and other information or documents that
the Company requires to be maintained in confidence for the Company’s continued
business success.

 

2.                                      Non-Disclosure
of Secret and Confidential Information. In consideration of being
admitted to the Plan and as a condition of receiving and retaining payments or
benefits thereunder, the Participant shall not during the period of Participant’s
employment with the Company or at any time thereafter, disclose to anyone,
including, without limitation, any person, firm, corporation, or other
entity,  or publish, or use for any
purpose, any Secret and Confidential Information, except as properly required
in the ordinary course of the Company’s business or as directed and authorized
by the Company.

 

3.                                      Duty to Return
Company Documents and Property. Upon the termination of
Participant’s employment with the Company, for any reason whatsoever,
Participant shall immediately return and deliver to the Company any and all
papers, books, records, documents, memoranda and manuals, e-mail, electronic or
magnetic recordings or data, including all copies thereof, belonging to the
Company or relating to its business, in Participant’s possession, whether
prepared by Participant or others. If at any time after the termination of
employment, Participant determines that he or she has any Secret and
Confidential Information in his or her possession or control, Participant shall
immediately return to the Company all such Secret and Confidential Information
in Participant’s possession or control, including all copies and portions
thereof.

 

4.                                      Disclosure. While he or
she is employed with the Company, Participant shall promptly disclose to the
Company all ideas, inventions, computer programs, and 

 

 

discoveries,
whether or not patentable or copyrightable, which Participant may conceive or
make, alone or with others, during Participant’s employment, whether or not
during working hours, and which directly or indirectly:

 

(a)                                 relate to
matters within the scope, field, duties or responsibility of Participant’s
employment with the Company; or

 

(b)                                 are based on
the Participant’s knowledge of the actual or anticipated business or interest
of the Company; or

 

(c)                                  are aided by
the use of time, materials, facilities or information of the Company.

 

Participant
assigns to the Company, without further compensation, all rights, titles and
interest in all such ideas, inventions, computer programs and discoveries in
all countries of the world. Participant recognizes that all ideas, inventions,
computer programs and discoveries of the type described above, conceived or
made by Participant alone or with others within one year after termination of
employment (voluntary or otherwise), are likely to have been conceived in
significant part either while employed by the Company or as a direct result of
knowledge Participant had of proprietary information. Accordingly, Participant
agrees that such ideas, inventions or discoveries shall be presumed to have
been conceived during Participant’s employment with the Company, unless and
until the contrary is clearly established by the Participant.

 

5.                                      Inventions. Any and all
writings, computer software, inventions, improvements, processes, procedures
and/or techniques which Participant may make, conceive, discover, or develop,
either solely or jointly with any other person or persons, at any time during
the term of his or her employment, whether at the request or upon the
suggestion of the Company or otherwise, which relate to or are useful in
connection with any business now or hereafter carried on or contemplated by the
Company, including developments or expansions of its present fields of
operations, shall be the sole and exclusive property of the Company.
Participant shall take all actions necessary so that the Company can prepare
and present applications for copyright or Letters Patent therefor, and can
secure such copyright or Letters Patent wherever possible, as well as reissue
renewals, and extensions thereof, and can obtain the record title to such
copyright or patents. Participant shall not be entitled to any additional or
special compensation or reimbursement regarding any such writings, computer
software, inventions, improvements, processes, procedures and techniques.
Participant acknowledges that the Company from time to time may have agreements
with other persons or entities which impose obligations or restrictions on the
Company regarding inventions made during the course of work thereunder or
regarding the confidential nature of such work. Participant shall be bound by
all such obligations and restrictions and take all action necessary to
discharge the obligations of the Company.

 

6.                                      Non-Solicitation
and Non-Competition Restrictions. To protect the Company’s
Secret and Confidential Information, and in the event of Participant’s termination
of employment for any reason whatsoever, whether by Participant or the Company,
the Participant will be subject to the following restrictive covenants as a
further condition of his or 

 

2

 

her
participation in the Plan and entitlement to receive and retain any payments or
benefits under the Plan.

 

(a)                                 Non-Competition. — For one
year following Participant’s separation from employment with Company, the
Participant shall not, without the prior written consent of the Company:

 

(1)                                 personally
engage in Competitive Activities (as defined below); or

 

(2)                                 work for, own,
manage, operate, control, or participate in the ownership, management,
operation, or control of, or provide consulting or advisory services to, any
person, partnership, firm, corporation, institution or other entity engaged in
Competitive Activities, or any company or person affiliated with such person or
entity engaged in Competitive Activities; provided that the Participant’s
purchase or holding, for investment purposes, of securities of a publicly
traded company shall not constitute “ownership” or “participation in the
ownership” for purposes of this paragraph so long as such equity interest in
any such company is less than a controlling interest;

 

provided
that this paragraph (a) shall not prohibit the Participant from being
employed by, or providing services to, a consulting firm, provided that the
Participant does not personally engage in Competitive Activities or provide
consulting or advisory services to any individual, partnership, firm,
corporation, institution or other entity engaged in Competitive Activities, or
any person or entity affiliated with such individual, partnership, firm,
corporation, institution or other entity engaged in Competitive Activities.

 

(b)                                 Competitive
Activities. — For purposes hereof, “Competitive Activities”
means activities relating to products or services of the same or similar type
as the products or services (1) which are sold (or, pursuant to an
existing business plan, will be sold) to paying customers of the Company or any
Affiliate, and (2) for which the Participant has responsibility to plan,
develop, manage, market, oversee or perform, or had any such responsibility
within the Participant’s most recent 24 months of employment with the Company
or an Affiliate. Notwithstanding the previous sentence, an activity shall not
be treated as a Competitive Activity if the geographic marketing area of the
relevant products or services does not overlap with the geographic marketing
area for the applicable products and services of the Company and its
Affiliates.

 

(c)                                  Interference
With Business Relations — For one year following Participant’s
separation from employment with Company, the Participant shall not, without the
prior written consent of the Company:

 

(1)                                 recruit, induce
or solicit any employee or officer, directly or indirectly, of the Company or
an Affiliate for employment or for retention as a consultant or service
provider;

 

3

 

(2)                                 hire or
participate (with another person or entity) in the process of hiring (other
than for the Company or an Affiliate) any person who is then an employee or
officer of the Company or an Affiliate, or provide names or other information
about any employees of the Company or an Affiliate to any person or entity
(other than SuperMedia or a Subsidiary), directly or indirectly, under
circumstances that could lead to the use of any such information for purposes
of recruiting, soliciting or hiring;

 

(3)                                 interfere,
directly or indirectly, with the relationship of the Company or an Affiliate
with any of its employees, agents, or representatives;

 

(4)                                 solicit or
induce, or in any manner attempt to solicit or induce, directly or indirectly,
any client, customer, or prospect of the Company or an Affiliate (1) to
cease being, or not to become, a customer of the Company or an Affiliate, or (2) to
divert any business of such customer or prospect from the Company or an
Affiliate; or

 

(5)                                 otherwise interfere
with, disrupt, or attempt to interfere with or disrupt, the relationship,
contractual or otherwise, between the Company or an Affiliate and any of its
customers, clients, prospects, suppliers, consultants, employees, agents, or
representatives.

 

7.                                      Reformation.  If a court concludes that any time period or
the geographic area specified in paragraph 6 above are unenforceable, then the
time period will be reduced by the number of months, or the geographic area
will be reduced by the elimination of the overbroad portion, or both, so that
the restrictions may be enforced in the geographic area and for the time to the
fullest extent permitted by law.

 

8                                         Tolling. If
Participant violates any of the restrictions contained in paragraph 6, the
restrictive period will be suspended and will not run in favor of Participant
from the time of the commencement of any violation until the time when the
Participant cures the violation to the Company’s satisfaction.

 

9.                                      Remedies. It is
intended that, in view of the nature of the Company’s business, the
restrictions contained in this Exhibit B shall be considered reasonable
and necessary to protect the Company’s legitimate business interests and that
any violation of these restrictions would result in irreparable injury to the
Company. In the event of a breach or a threatened breach by Participant of any
restrictive covenant contained herein, the Company shall be entitled to a
temporary restraining order and injunctive relief restraining Participant from
the commission of any breach, and to recover the Company’s attorneys’ fees,
costs and expenses related to the breach or threatened breach. Nothing
contained herein shall be construed as prohibiting the Company from pursuing
any other remedies available to it for any breach or threatened breach,
including, without limitation, the restoration and other remedies specified in
the Plan and/or the recovery of money damages, attorneys’ fees, and costs.
These covenants and restrictions shall each be construed as independent of any
other provisions in the Plan, and the 

 

4

 

existence
of any claim or cause of action by Participant against the Company, whether
predicated on the Plan or otherwise, shall not constitute a defense to the
enforcement by the Company of such covenants and restrictions.

 

10.                               Severability. Should a
court determine that any paragraph or sentence, or any portion of a paragraph
or sentence of this Exhibit B is invalid, unenforceable, or void, this
determination shall not have the effect of invalidating or validating the
remainder of the paragraph, sentence or any other provision of this Exhibit B.
Further, it is intended that the court should construe the Plan and this Exhibit B
by limiting and reducing it only to the extent necessary to be enforceable
under then applicable law.

 

11.                               Future
Employment. If, before the expiration of the period covered by
Section 6(a) hereof, a Participant seeks or is offered employment by
any other company, firm, or person, the Participant shall provide a copy of
this Exhibit B to the prospective employer before accepting employment
with that prospective employer.

 

5

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