Document:

EX-10.13

 

Exhibit 10.13

THE McGRAW-HILL COMPANIES, INC.

SENIOR EXECUTIVE SEVERANCE PLAN

(Amended and restated effective as of January 1, 2008)

 

 

THE McGRAW-HILL COMPANIES, INC.

SENIOR EXECUTIVE SEVERANCE PLAN

(Amended and restated effective as of January 1, 2008)

ARTICLE I

PURPOSE

          The purpose of the Plan is to provide senior executives who are in a position to contribute
materially to the success of the Company Group with reasonable compensation in the event of their
termination of employment with the Company Group. The Plan is intended to satisfy the requirements
of Section 409A of the Code with respect to amounts subject thereto.

ARTICLE II

DEFINITIONS

          The following words and phrases as used herein shall have the following meanings:

          SECTION 2.01 “Adverse Change in Conditions of Employment” means the occurrence of any of the
following events:

     (i) An adverse change by the Company in the Participant’s function, duties or
responsibilities, which change would cause the Participant’s position with the
Company to become one of substantially less responsibility, importance or scope; or

     (ii) A 10% or larger reduction by the Company (in one or more steps) of the
Participant’s Monthly Base Salary.

provided, however, that the Participant shall notify the Company within 90 days of
the occurrence of a change described in Sections 2.01(i) or (ii) above and the Company shall have
30 days to cure such change to the reasonable satisfaction of the Participant (including
retroactively with respect to monetary matters), which change, to the extent so cured, shall not be
considered an Adverse Change in Conditions of Employment.

          SECTION 2.02 “Adverse Change in Conditions of Employment After a Change in Control” means the
occurrence of any of the following after a Change in Control:

     (i) The failure to pay base salary to the Participant at a monthly rate at
least equal to the highest rate paid to the Participant at any time during or after
the 24-month period prior to the Change in Control, except as the result of a
Company-wide reduction in base salaries pursuant to which the Participant’s Monthly
Base Salary is decreased less than 10%;

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     (ii) The Participant’s annual incentive opportunity, taking into account all
material factors such as targeted payment amounts and performance goals, is
materially less favorable to the Participant than the most favorable such
opportunity at any time during or after the 24-month period prior to the Change in
Control;

     (iii) The Participant’s opportunity to earn long-term incentive payments, on
the basis of the grant-date fair value of awards and taking into account vesting
requirements and termination provisions of awards, is materially less favorable to
the Participant than the most favorable such opportunity in effect at any time
during or after the 24 months prior to the Change in Control;

     (iv) A material reduction by the Company in the aggregate value to the
Participant of the pension and welfare benefit plans in which the Participant is
eligible to participate;

     (v) The transfer of the Participant to a principal business location that
increases by more than 35 miles the distance between the Participant’s principal
business location and place of residence;

     (vi) Any adverse change in the Participant’s title or reporting relationship
or adverse change by the Company in the Participant’s authority, functions, duties
or responsibilities (other than which results solely from the Company ceasing to
have a publicly traded class of common stock or the Participant no longer serving
as the chief executive, or reporting to the chief executive, of an independent,
publicly traded company as a result thereof), which change would cause the
Participant’s position with the Company to become one of substantially less
responsibility, importance or scope; or

     (vii) Any failure by a successor entity to the Company (including any entity
that succeeds to the business or assets of the Company) to adopt the Plan;

provided, however, that the Participant shall notify the Company within 90 days of
the facts and circumstances described in any of Sections 2.02(i) through (vii) above and the
Company shall have 30 days to cure such facts and circumstances to the reasonable satisfaction of
the Participant (including retroactively with respect to monetary matters), which facts and
circumstances, to the extent so cured, shall not be considered an Adverse Change in Conditions of
Employment After a Change in Control.

          SECTION 2.03 “Annual Base Salary” means a Participant’s highest rate of annual base salary
during the 24-month period preceding the Participant’s termination of employment, excluding any of
the following: year-end or other bonuses, incentive compensation, whether short-term or long-term,
commissions, reimbursed expenses, and any payments on account of premiums on insurance or other
contributions made to other welfare or benefit plans.

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          SECTION 2.04 “Annual Target Bonus” means a Participant’s highest, annual, target short-term
incentive opportunity during the 24-month period preceding the Participant’s termination of
employment.

          SECTION 2.05 “Attorneys’ Fees” means any reasonable attorneys’ fees and disbursements incurred
in pursuing a Disputed Claim.

          SECTION 2.06 “Beneficiary” means the person, persons or entity designated by the Participant
to receive any benefits payable under the Plan. Any Participant’s Beneficiary designation shall be
made in a written instrument filed with the Company and shall become effective only when received,
accepted and acknowledged in writing by the Company.

          SECTION 2.07 “Board” means the Board of Directors of the Company.

          SECTION 2.08 “Cause” means the Participant’s misconduct in respect of the Participant’s
obligations to the Company Group or other acts of misconduct by the Participant occurring during
the course of the Participant’s employment, which in either case results in or could reasonably be
expected to result in material damage to the property, business or reputation of the Company Group;
provided that in no event shall unsatisfactory job performance alone be deemed to be “Cause”; and,
provided, further, that no termination of employment that is carried out at the request of a person
seeking to accomplish a Change in Control or otherwise in anticipation of a Change in Control shall
be deemed to be for “Cause.”

          SECTION 2.09 “Change in Control” means the first to occur of any of the following events:

     (i) An acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
20% or more of either (1) the then outstanding shares of Common Stock (the
“Outstanding Common Stock”) or (2) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Voting Securities”); excluding,
however, the following: (1) any acquisition directly from the Company,
other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the
Company; (2) any acquisition by the Company; (3) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
entity controlled by the Company; or (4) any acquisition pursuant to a transaction
which complies with clauses (A), (B) and (C) of subsection (iii) of this Section
2.09; or

     (ii) A change in the composition of the Board such that the Directors who, as
of the Effective Date, constitute the Board (such Board shall be hereinafter
referred to as the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, for purposes of this

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Section 2.09, that any individual who becomes a Director subsequent to the
Effective Date, whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of those Directors who
were members of the Incumbent Board (or deemed to be such pursuant to this proviso)
shall be considered as though such Director were a member of the Incumbent Board;
but, provided, further, that any such individual whose initial
assumption of office occurs as a result of either an actual or threatened election
contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board shall not be so considered as a
member of the Incumbent Board; or

     (iii) Consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company
(“Corporate Transaction”); excluding, however, such a Corporate
Transaction pursuant to which (A) all or substantially all of the individuals and
entities who are the beneficial owners, respectively, of the Outstanding Common
Stock and Outstanding Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 50% of,
respectively, the outstanding shares of common stock, and the combined voting power
of the then outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such
Corporate Transaction, of the Outstanding Common Stock and Outstanding Voting
Securities, as the case may be, (B) no Person (other than the Company, any employee
benefit plan (or related trust) of the Company or such corporation resulting from
such Corporate Transaction) will beneficially own, directly or indirectly, 20% or
more of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in the
election of directors except to the extent that such ownership existed prior to the
Corporate Transaction, and (C) individuals who were members of the Incumbent Board
will constitute at least a majority of the members of the board of directors of the
corporation resulting from such Corporate Transaction; or

     (iv) The approval by the shareholders of the Company of a complete liquidation
or dissolution of the Company.

          SECTION 2.10 “Claimant” has the meaning set forth in Section 8.01 of the Plan.

          SECTION 2.11 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the applicable rules and regulations promulgated thereunder.

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          SECTION 2.12 “Commencement Date” means the first day of the first regular payroll cycle
coincident with or next following the date of the Participant’s “separation from service” within
the meaning of Section 409A(a)(2)(A)(i) of the Code.

          SECTION 2.13 “Committee” has the meaning set forth in Section 3.01 of the Plan.

          SECTION 2.14 “Common Stock” means the common stock, $1.00 par value per share, of the Company.

          SECTION 2.15 “Company” means The McGraw-Hill Companies, Inc., a corporation organized under
the laws of the State of New York, or any successor corporation.

          SECTION 2.16 “Company Group” means the Company and its Subsidiaries.

          SECTION 2.17 “Director” means an individual who is a member of the Board.

          SECTION 2.18 “Disability” means a Participant’s long-term disability pursuant to a
determination of disability under the Company’s Long-Term Disability Plan.

          SECTION 2.19 “Disputed Claim” means a claim for payments under the Plan that is disputed by
the Company.

          SECTION 2.20 “Effective Date” has the meaning set forth in Section 11.08 of the Plan.

          SECTION 2.21 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the applicable rules and regulations promulgated thereunder.

          SECTION 2.22 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the applicable rules and regulations promulgated thereunder.

          SECTION 2.23 “Excise Tax” has the meaning set forth in Section 5.06 of the Plan.

          SECTION 2.24 “Extension Notice” has the meaning set forth in Section 8.01 of the Plan.

          SECTION 2.25 “Long-Term Disability Plan” means The McGraw-Hill Companies, Inc. Long-Term
Disability Plan, as amended from time to time (or any successor plan).

          SECTION 2.26 “Judgment or Award” means a nonappealable, final judgment from a court of
competent jurisdiction or a binding arbitration award granting the Participant all or substantially
all of the amount sought in a Disputed Claim.

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          SECTION 2.27 “Monthly Base Salary” means a Participant’s Annual Base Salary, divided by 12.

          SECTION 2.28 “Participant” means each employee who participates in the Plan, as provided in
Section 4.01 of the Plan.

          SECTION 2.29 “Payment” has the meaning set forth in Section 5.06 of the Plan.

          SECTION 2.30 “Plan” means The McGraw-Hill Companies, Inc. Senior Executive Severance Plan, as
amended from time to time.

          SECTION 2.31 “Plan Administrator” has the meaning set forth in Section 3.01 of the Plan.

          SECTION 2.32 “Protection Period” has the meaning set forth in Section 10.01 of the Plan.

          SECTION 2.33 “Qualified Termination of Employment” means termination of the employment of a
Participant with the Company Group (other than by reason of death, Disability, voluntary
resignation by a Participant under circumstances not qualifying under this Section 2.33, or lawful
Company-mandated retirement at normal retirement age) as follows:

     (i) By the Company for any reason other than for Cause,

     (ii) By the Participant after an Adverse Change in Conditions of Employment;

     (iii) By the Participant for any reason during the 30-day period following the
first anniversary of a Change in Control (in the case of a Change in Control
occurring prior to January 1, 2009); or

     (iv) By the Participant after an Adverse Change in Conditions of Employment
After a Change in Control (in the case of a Change in Control occurring on or after
January 1, 2009).

          SECTION 2.34 “Release” means a termination and release agreement in the form approved by the
Plan Administrator, which shall, among other things, release the Company Group, and each of their
respective directors, officers, employees, agents, successors and assigns, from any and all claims
that the Participant has or may have against the Company Group and each of their respective
directors, officers, employees, agents, successors and assigns, and the standard form of which
shall not be modified after, in anticipation of, or at the request of any Person seeking to effect,
a Change in Control, except to conform to changes in the requirements of applicable law.

          SECTION 2.35 “Separation Pay” has the meaning set forth in Section 5.01(a)(i) of the Plan.

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          SECTION 2.36 “Separation Period” has the meaning set forth in Section 5.01(a)(i) of the Plan.

          SECTION 2.37 “Separation Pay Plan” means the Separation Pay Plan of The McGraw-Hill Companies,
Inc., as amended from time to time (or any successor plan).

          SECTION 2.38 “Specified Employee” means a Participant who is a “specified employee” within the
meaning of Section 409A(a)(2)(b)(i) of the Code.

          SECTION 2.39 “Subsidiary” means any subsidiary of the Company at least 20% of whose voting
shares are owned directly or indirectly by the Company.

          SECTION 2.40 “Supplemental Separation Pay” has the meaning set forth in Section 5.01(a)(ii) of
the Plan.

          SECTION 2.41 “Supplemental Separation Period” has the meaning set forth in Section 5.01(a)(ii)
of the Plan.

ARTICLE III

ADMINISTRATION

          SECTION 3.01 Administration. The Plan shall be administered by the Executive Vice President,
Human Resources of the Company (the “Plan Administrator”), who shall have full authority to
construe and interpret the Plan, to establish, amend and rescind rules and regulations relating to
the Plan, and to take all such actions and make all such determinations in connection with the Plan
as he may deem necessary or desirable. Subject to Article VIII, decisions of the Plan Administrator
shall be reviewable by the Compensation Committee of the Board (the “Committee”). Subject to
Article VIII, the Committee shall also have the full authority to make, amend, interpret, and
enforce all appropriate rules and regulations for the administration of the Plan and decide or
resolve any and all questions, including interpretations of the Plan, as may arise in connection
with the Plan.

          SECTION 3.02 Binding Effect of Decisions. Subject to Article VIII, the decision or action of
the Committee or Plan Administrator in respect to any question arising out of or in connection with
the administration, interpretation and application of the Plan and the rules and regulations
promulgated hereunder shall be final, conclusive and binding upon all persons having any interest
in the Plan.

          SECTION 3.03 Indemnification. To the fullest extent permitted by law, the Plan Administrator,
the Committee and the Board (and each member thereof), and any employee of the Company Group to
whom fiduciary responsibilities have been delegated shall be indemnified by the Company against any
claims, and the expenses of defending against such claims, resulting from any action or conduct
relating to the administration of the Plan, except claims arising from gross negligence, willful
neglect or willful misconduct.

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ARTICLE IV

PARTICIPATION

          SECTION 4.01 Eligible Participants. Subject to the approval of the Committee, the Plan
Administrator shall from time to time select Participants from among those employees who are in ECB
1 (or equivalent successor band) and who are determined by the Plan Administrator to be in a
position to contribute materially to the success of the Company Group.

          SECTION 4.02 Participation Notification; Participation Agreement. The Company shall notify
each Participant in writing of his participation in the Plan, and such notice shall also set forth
the payments and benefits to which the Participant may become entitled. The Company may also enter
into such agreements as the Committee deems necessary or appropriate with respect to a
Participant’s rights under the Plan. Any such notice or agreement may contain such terms,
provisions and conditions not inconsistent with the Plan, including but not limited to provisions
for the extension or renewal of any such agreement, as shall be determined by the Committee, in its
sole discretion.

          SECTION 4.03 Termination of Participation. A Participant shall cease to be a Participant in
the Plan upon the earlier of (i) his receipt of all of the payments, if any, to which he is or
becomes entitled under the terms of the Plan and the terms of any notice or agreement issued by the
Company with respect to his participation hereunder, or (ii) the termination of his employment with
the Company Group under circumstances not requiring payments under the terms of the Plan. In
addition, a Participant shall cease to be a Participant in the Plan if, prior to the occurrence of
a Qualified Termination of Employment or a Change in Control, there is an Adverse Change in
Conditions of Employment to which the Participant fails to object in writing within 90 days and as
a result of which the Participant is no longer in grade level ECB 1 (or equivalent successor band).

ARTICLE V

PAYMENTS UPON TERMINATION OF EMPLOYMENT

          SECTION 5.01 Separation Pay. (a) In the event of a Qualified Termination of Employment, the
Participant shall be entitled to the following:

     (i) an amount of separation pay (the “Separation Pay”) equal to the
Participant’s Monthly Base Salary for the number of months following the
Participant’s Commencement Date (the “Separation Period”) equal to the number of
full and partial years of the Participant’s continuous service with the Company
Group, up to a maximum of 15 years, multiplied by 0.8, and payable over the
Separation Period in accordance with the Company’s payroll practices in effect from
time to time; provided that the Separation Pay shall not be less than six
times such Monthly Base Salary and the Separation Period shall not be less than six
months; provided, further, that, in the event of a Qualified
Termination of Employment that takes place on or after a Change in Control
occurring on or after January 1, 2009, the Participant’s Separation Pay shall equal
the sum of the

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Participant’s Annual Base Salary and Annual Target Bonus and the Participant’s
Separation Period shall be 12 months.

     (ii) if, not later than the date and time specified by the Plan Administrator,
the Participant delivers to the Company a signed and valid Release, a supplemental
amount of separation pay (the “Supplemental Separation Pay”) equal and in addition
to the amount of the Participant’s Separation Pay and payable following the
Separation Period over the number of months in the Separation Period (the
“Supplemental Separation Period”) in accordance with the Company’s payroll
practices in effect from time to time; provided, however, that a
Release shall not be deemed delivered by the Participant if it is revoked by the
Participant during any applicable revocation period set forth in the Release;
provided, further, that if the Participant has attained age 40 on
the Commencement Date, then no Supplemental Separation Pay shall be paid to the
Participant prior to the date that is 60 days following the Commencement Date and
the Supplemental Separation Pay otherwise payable to the Participant prior to such
date shall be paid to the Participant on or within 30 days after such date; and,
provided, further, that if the Participant’s Separation Period and
Supplemental Separation Period exceed a total period of 12 months, the Company
shall pay to the Participant in a lump sum, on or within 30 days following the
first anniversary of the Participant’s Commencement Date, the total amount of his
Separation Pay and Supplemental Separation Pay in excess of 12 months.

     (iii) active participation in all Company-sponsored retirement, life, medical,
dental, accidental death and disability insurance benefit plans or programs in
which the Participant was participating at the time of his termination for the
Separation Period and any Supplemental Separation Period, but only to the extent
permitted by applicable law as determined by the Company and not otherwise provided
under the terms of such plans and programs, it being understood that continued
participation in Company-sponsored retirement plans or programs shall be limited to
such plans or programs that are not intended to be qualified under Section 401(a)
or 401(k) of the Code; provided that the Participant shall be responsible
for any required payments for participation in such plans or programs; and,
provided, further, that if the Participant’s Separation Period and
Supplemental Separation Period exceed a total period of 12 months, the Participant
shall be entitled to participate in such plans or programs for a maximum of 12
months and the Company shall pay to the Participant in a lump sum, on or with 30
days following the first anniversary of the Participant’s Commencement Date, the
cash amount equal to 10% of the total amount of his Separation Pay and Supplemental
Separation Pay in excess of 12 months.

          (b) The payments and benefits described in Section 5.01(a) of the Plan shall be in lieu of any
other payments under the Plan or under any other severance pay or separation allowance plan,
program or policy of the Company Group, including the Company’s Separation Pay Plan;
provided, however, if payments pursuant to the terms and conditions of the
Company’s Separation Pay Plan would result in greater payments to a Participant than would be
payable

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under the Plan, said Participant shall in such event receive payments pursuant to the terms
and conditions of the Company’s Separation Pay Plan in lieu of payments pursuant to the Plan.

          SECTION 5.02 Death. In the event a Participant dies after the commencement of payments
pursuant to Section 5.01(a) of the Plan, the balance of said payments shall be payable in
accordance with Article IX of the Plan.

          SECTION 5.03 Transfers. A Participant’s transfer to another employment location shall not by
itself constitute an Adverse Change in Conditions of Employment; provided, however,
that such an Adverse Change in Conditions of Employment shall be deemed to exist if, after a Change
in Control, a Participant is transferred to a principal business location so as to increase the
distance between the principal business location and such Participant’s place of residence at the
time of the Change in Control by more than 35 miles.

          SECTION 5.04 Corporate Transactions. A Participant shall not receive any payments or benefits
under the Plan in the event of a sale of the business unit of the Company Group with which the
Participant is associated as an executive, provided that the Participant is offered a
position and salary with the buyer or the Company Group comparable to the position and salary of
the Participant immediately prior to said sale, whether or not such offer is accepted by the
Participant. If, however, the Participant is not offered a comparable position and salary, the
Participant shall be entitled to payments hereunder. A position shall not be deemed to be a
“comparable position” for purposes of this Section 5.04 if it increases the distance between the
Participant’s principal business location and the Participant’s place of residence at the time of
the sale by more than 50 miles or such other distance standard as may be established from time to
time under Section 217(c)(1)(A) of the Code.

          SECTION 5.05 Specified Employees. With respect to amounts subject to Section 409A of the Code,
notwithstanding the other provisions of this Article V, no payment to a Specified Employee under
the Plan shall be made or commenced prior to the date that is six months following the Specified
Employee’s Commencement Date; provided that amounts under the Plan that are otherwise payable to
the Specified Employee prior to such date shall be paid to the Specified Employee on or within 30
days after such date.

          SECTION 5.06 Section 280G. In the event that any payment or benefit received or to be received
by any Participant pursuant to the Plan or any other plan or arrangement with the Company (each, a
“Payment”) would constitute an “excess parachute payment” within the meaning of Section 280G(b)(1)
of the Code, or would otherwise be subject to the excise tax imposed under Section 4999 of the
Code, or any similar federal or state law (an “Excise Tax”), as determined by an independent
certified public accounting firm selected by the Company, the amount of the Participant’s
Separation Pay (and Supplemental Separation Pay, if any) shall be limited to the largest amount
payable, if any, that would not result in the imposition of any Excise Tax to the Participant, but
only if, notwithstanding such limitation, the total Payments, net of all taxes imposed on the
Participant with respect thereto, would be greater if no Excise Tax were imposed.

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ARTICLE VI

MITIGATION AND OFFSET

          SECTION 6.01 Mitigation. No Participant shall be required to mitigate the amount of any
payment under the Plan by seeking employment or otherwise, and there shall be no right of set-off
or counterclaim, in respect of any claim, debt or obligation, against any payments to the
Participant, his dependents, Beneficiaries or estate provided for in the Plan.

          SECTION 6.02 Offset. If, after a Participant’s termination of employment with the Company
Group, the Participant is employed by another entity or becomes self-employed, the amounts (if any)
payable under the Plan to the Participant shall not be offset by the amounts (if any) payable to
the Participant from such new employment with respect to services rendered during the severance
period applicable to such Participant under the Plan.

ARTICLE VII

ATTORNEYS’ FEES FOR DISPUTED CLAIMS

          SECTION 7.01 General. If a Participant makes a Disputed Claim, the Company shall reimburse the
Participant for Attorneys’ Fees; provided that the Participant enters into a repayment agreement
with the Company, which shall require the Participant (i) to repay the Company for any
reimbursements made pursuant to this Section 7.01 if the Participant does not obtain a Judgment or
Award and (ii) to provide adequate security with respect to the amount subject to repayment under
this Section 7.01. With respect to amounts subject to Section 409A, such reimbursement shall be
made no later than the last day of the calendar year following the calendar year in which the
applicable Attorneys’ Fee expense was incurred, subject to the timely presentation to the Company
in writing of any periodic statements for Attorneys’ Fees. Unless the Judgment or Award specifies
whether it constitutes “all or substantially all of the amount sought,” such determination shall be
made by the Plan Administrator in its sole and absolute discretion.

          SECTION 7.02 Change in Control. If a Disputed Claim is made with respect to a termination of
employment occurring during a period beginning on the date of a Change in Control and ending 36
months thereafter, the Participant shall be entitled to reimbursement of Attorneys’ Fees, whether
or not the Participant obtains a Judgment or Award. Such reimbursement shall be made on a
“pay-as-you-go” basis, as soon as practicable after presentation to the Company in writing of any
periodic statements for Attorneys’ Fees, but in no event later than the last day of the calendar
year following the calendar year in which the applicable Attorneys’ Fees were incurred.

          SECTION 7.03 Six Month Period Prior to Change in Control. Without affecting the rights of a
Participant under Section 7.01 of the Plan, a Participant shall be entitled to reimbursement of
Attorneys’ Fees for a Disputed Claim in accordance with the terms of Section 7.02 of the Plan with
respect to termination of employment occurring six months prior to a Change in Control, whether or
not the Participant obtains a Judgment or Award; provided, however, that no
reimbursement shall be made under this Section 7.03 in such case (i) unless and

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until the Change in Control actually occurs or (ii) if reimbursement has been made under
Section 7.01 of the Plan.

          SECTION 7.04 Section 409A. The reimbursements made to a Participant under this Article VII
during any calendar year shall not affect the amounts eligible for reimbursement in any other
calendar year. No reimbursement of Attorneys’ Fees made pursuant to this Article VII shall be paid
to any Participant following the last day of the sixth year following the termination of the period
described in Section 8.03 of the Plan.

ARTICLE VIII

CLAIMS PROCEDURE

          SECTION 8.01 Claims. In the event any person or his authorized representative (a “Claimant”)
disputes the amount of, or his entitlement to, any benefits under the Plan or their method of
payment, such Claimant shall file a claim in writing with, and on the form prescribed by, the Plan
Administrator for the benefits to which he believes he is entitled, setting forth the reason for
his claim. The Claimant shall have the opportunity to submit written comments, documents, records
and other information relating to the claim and shall be provided, upon request and free of charge,
reasonable access to and copies of all documents, records or other information relevant to the
claim. The Plan Administrator shall consider the claim and within 90 days of receipt of such claim,
unless special circumstances exist which require an extension of the time needed to process such
claim, the Plan Administrator shall inform the Claimant of its decision with respect to the claim.
In the event of special circumstances, the response period can be extended for an additional 90
days, as long as the Claimant receives written notice advising of the special circumstances and the
date by which the Plan Administrator expects to make a determination (the “Extension Notice")
before the end of the initial 90-day response period indicating the reasons for the extension and
the date by which a decision is expected to be made. If the Plan Administrator denies the claim,
the Plan Administrator shall give to the Claimant (i) a written notice setting forth the specific
reason or reasons for the denial of the claim, including references to the applicable provisions of
the Plan, (ii) a description of any additional material or information necessary to perfect such
claim along with an explanation of why such material or information is necessary, and (iii)
appropriate information as to the Plan’s appeals procedures as set forth in Section 8.02 of the
Plan.

          SECTION 8.02 Appeal of Denial. A Claimant whose claim is denied by the Plan Administrator and
who wishes to appeal such denial must request a review of the Plan Administrator’s decision by
filing a written request with the Committee for such review within 60 days after such claim is
denied. Such written request for review shall contain all relevant comments, documents, records and
additional information that the Claimant wishes the Committee to consider, without regard to
whether such information was submitted or considered in the initial review of the claim by the Plan
Administrator. In connection with that review, the Claimant may examine, and receive free of
charge, copies of pertinent Plan documents and submit such written comments as may be appropriate.
Written notice of the decision on review shall be furnished to the Claimant within 60 days after
receipt by the Committee of a request for review. In the event of special circumstances which
require an extension of the time needed for processing, the response period can be extended for an
additional 60 days, as long as the

13

 

Claimant receives an Extension Notice. If the Committee denies the claim on review, notice of the
Committee’s decision shall include (i) the specific reasons for the adverse determination, (ii)
references to applicable Plan provisions, (iii) a statement that the Claimant is entitled to
receive, free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the claim and (iv) a statement of the Claimant’s right to bring an action
under Section 502(a) of ERISA following an adverse benefit determination on a review and a
description of the applicable limitations period under the Plan. The Claimant shall be notified no
later than five days after a decision is made with respect to the appeal.

          SECTION 8.03 Statute of Limitations. A Claimant wishing to seek judicial review of an adverse
benefit determination under the Plan, whether in whole or in part, must file any suit or legal
action, including, without limitation, a civil action under Section 502(a) of ERISA, within three
years of the date the final decision on the adverse benefit determination on review is issued or
should have been issued under Section 8.02 of the Plan or lose any rights to bring such an action.
If any such judicial proceeding is undertaken, the evidence presented shall be strictly limited to
the evidence timely presented to the Plan Administrator. Notwithstanding anything in the Plan to
the contrary, a Claimant must exhaust all administrative remedies available to such Claimant under
the Plan before such Claimant may seek judicial review pursuant to Section 502(a) of ERISA.

          SECTION 8.04 Change in Control. Notwithstanding any other provision of the Plan, the authority
granted pursuant to Articles III, VII and VIII to the Plan Administrator and to persons making
determinations on claims for benefits and reviews of claims shall, when exercised (i) during the
period of 36 months following a Change in Control or (ii) with respect to any termination of
employment that occurs during the period of 36 months following a Change in Control or that is
carried out at the request of a person seeking to accomplish a Change in Control or otherwise in
anticipation of a Change in Control, shall not be “discretionary,” but shall be subject to de novo
review by a court of competent jurisdiction or an arbitrator, as applicable.

ARTICLE IX

BENEFICIARY DESIGNATION

          SECTION 9.01 Beneficiary Designation. Each Participant shall have the right, at any time, to
designate any person, persons, entity or entities as his Beneficiary or Beneficiaries (both primary
as well as contingent) to whom payment under the Plan shall be paid in the event of his death prior
to complete distribution to the Participant of the benefits due him under the Plan.

          SECTION 9.02 Amendments. Any Beneficiary designation may be changed by a Participant by the
written filing of such change on a form prescribed by the Company. The new Beneficiary designation
form shall cancel all Beneficiary designations previously filed.

          SECTION 9.03 No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided above, or if all designated Beneficiaries predecease the Participant, then any amounts to
be paid to the Participant’s Beneficiary shall be paid to the Participant’s estate.

14

 

          SECTION 9.04 Effect of Payment. The payment under this Article IX of the amounts due to a
Participant under the Plan to a Beneficiary shall completely discharge the Company’s obligations in
respect of the Participant under the Plan.

ARTICLE X

AMENDMENT AND TERMINATION OF PLAN

          SECTION 10.01 Amendment and Termination. (a) The Company shall have the right at any time, in
its discretion, to amend the Plan, in whole or in part, or to terminate the Plan, by resolution of
the Board or Committee or delegate thereof, except that no amendment or termination shall impair or
abridge the obligations of the Company to any Participant or the rights of any Participant under
the Plan without the express written consent of the affected Participant (i) with respect to any
termination of employment that occurred before such amendment or termination, or (ii) in all other
cases, until 6 months have elapsed from the time of the amendment or termination. In addition, in
no event shall the Plan be amended or terminated (x) during the period of 36 months following a
Change in Control (the “Protection Period”), or (y) to the extent that it is carried out at the
request of a person seeking to accomplish a Change in Control or otherwise in anticipation of a
Change in Control, or (z) with respect to a termination under Section 2.33(iii), in each case
without the express written consent of the affected Participant. Notwithstanding the foregoing,
except with respect to a termination of employment that occurs during the Protection Period, the
Company shall have the right to terminate the Plan at any time following the Protection Period.

          (b) Except for the amendments made in accordance with Section 10.01(a) of the Plan, no
modifications, alterations and/or changes made to the terms and/or provisions of the Plan, either
globally or for an individual participant, will be effective unless evidenced by a writing that
directly refers to the Plan and which is signed and dated by the Plan Administrator.

          SECTION 10.02 Section 409A. If, in the good faith judgment of the Plan Administrator, any
provision of the Plan could otherwise cause any person to be subject to the interest and penalties
imposed under Section 409A of the Code, such provision shall be modified by the Plan Administrator
in its sole discretion to maintain, to the maximum extent practicable, the original intent of the
applicable provision without causing the interest and penalties under Section 409A of the Code to
apply, and, notwithstanding any provision in the Plan to the contrary, the Plan Administrator shall
have broad authority to amend or to modify the Plan, without advance notice to or consent by any
person, to the extent necessary or desirable to ensure that no payment or benefit under the Plan is
subject to tax under Section 409A of the Code. Any determinations made by the Plan Administrator
under this Section 10.02 shall be final, conclusive and binding on all persons.

ARTICLE XI

MISCELLANEOUS

          SECTION 11.01 Effect on Other Plans. Except as expressly provided in Article V of the Plan
with respect to the Company’s Separation Pay Plan, (i) nothing in the Plan shall affect the level
of benefits provided to or received by any Participant (or the Participant’s estate

15

 

or Beneficiaries) as part of any employee benefit plan of the Company, and (ii) the Plan shall
not be construed to affect in any way the Participant’s rights and obligations under any other plan
maintained by the Company on behalf of employees.

          SECTION 11.02 Unsecured General Creditor. Participants and their Beneficiaries shall have no
legal or equitable rights, interest or claims in any property or assets of the Company. The assets
of the Company shall not be held under any trust for the benefit of Participants or their
Beneficiaries or held in any way as collateral security for the fulfilling of the obligations of
the Company under the Plan. Any and all of the Company’s assets shall be, and remain, the general,
unpledged, unrestricted assets of the Company. The Company’s obligation under the Plan shall be
merely that of an unfunded and unsecured promise of the Company to pay money in the future.

          SECTION 11.03 Nonassignability. Each Participant’s rights under the Plan shall be
nontransferable except by will or by the laws of descent and distribution and except insofar as
applicable law may otherwise require. Subject to the foregoing, neither a Participant nor any other
person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if
any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be nonassignable and non-transferable. No part of the amounts payable shall, prior to
actual payment, be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or any other person, nor be transferable by
operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.

          SECTION 11.04 Not a Contract of Employment. The terms and conditions of the Plan shall not be
deemed to constitute a contract of employment with the Participant, and the Participant (or his
Beneficiary) shall have no rights against the Company Group except as specifically provided herein.
Moreover, nothing in the Plan shall be deemed to give a Participant the right to be retained in the
service of the Company Group or to interfere with the rights of the Company Group to discipline or
discharge him at any time.

          SECTION 11.05 Binding Effect. The Plan shall be binding upon and shall inure to the benefit of
the Participant or his Beneficiary, his heirs and legal representatives, and the Company.

          SECTION 11.06 Withholding; Payroll Taxes. To the extent required by the law in effect at the
time payments are made, the Company shall withhold from payments made hereunder any taxes or other
amounts required to be withheld for any federal, state or local government and other authorized
deductions.

          SECTION 11.07 Severability. In the event that any provision or portion of the Plan shall be
determined to be invalid or unenforceable for any reason, the remaining provisions and portions of
the Plan shall be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law.

16

 

          SECTION 11.08 Effective Date. The Plan was initially effective as of January 28, 1987 (the
“Effective Date”). This amendment and restatement is effective as of January 1, 2008.

          SECTION 11.09 Governing Law. The Plan shall be construed under the laws of the State of New
York, to the extent not preempted by federal law.

          SECTION 11.10 Headings. The section headings used in this document are for ease of reference
only and shall not be controlling with respect to the application and interpretation of the Plan.

          SECTION 11.11 Rules of Construction. Any words herein used in the masculine shall be read and
construed in the feminine where they would so apply. Words in the singular shall be read and
construed as though used in the plural in all cases where they would so apply. All references to
sections are, unless otherwise indicated, to sections of the Plan.

17EX-10.15

 

Exhibit 10.15

THE McGRAW-HILL COMPANIES, INC.

EMPLOYEE RETIREMENT PLAN SUPPLEMENT

(Amended and restated effective as of January 1, 2008, unless otherwise provided)

ARTICLE I

PURPOSE 

          The principal purpose of the Plan is to provide selected employees of the Employer, with
retirement benefits which would have been provided under the ERP (a) were it not for the
limitations imposed by Sections 401(a)(17) and 415 of the Code, and (b) had the Participant’s
Earnings on which Benefits are based included amounts deferred under deferred compensation plans of
an Employer and amounts paid under certain severance plans of the Company.

          Effective January 1, 2004, the Broadcasting ERIP Supplement was merged into the Plan and any
benefits due to participants in the Broadcasting ERIP Supplement shall be paid from the Plan.

ARTICLE II

DEFINITIONS

          The following words and phrases as used herein shall have the following meanings:

          SECTION 2.01 “Accounting Date” has the meaning set forth in the ERIP.

          SECTION 2.02 “Actuarial Equivalent” has the meaning given such term in Section II of
the ERP.

          SECTION 2.03 “Appeal Reviewer” has the meaning set forth in the ERP.

          SECTION 2.04 “Beneficiary” has the meaning set forth in the ERP.

          SECTION 2.05 “Benefit” means the benefit payable to a Participant or his Beneficiary
under Article V of the Plan.

          SECTION 2.06 “Board” means the Board of Directors of the Company.

          SECTION 2.07 “Broadcasting ERIP Supplement” means The McGraw-Hill Broadcasting
Company, Inc. Employee Retirement Income Plan Supplement.

          SECTION 2.08 “Broadcasting Participant” means a Participant who was a participant in
the Broadcasting ERIP Supplement on December 31, 2003.

 

 

          SECTION 2.09 “Change in Control” means the first to occur of any of the following
events:

      (i) An acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding
shares of Common Stock (the “Outstanding Common Stock”) or (2) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Voting Securities”); excluding, however, the following:
(1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise
of a conversion privilege unless the security being so converted was itself acquired directly from
the Company; (2) any acquisition by the Company; (3) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any entity controlled by the Company;
or (4) any acquisition pursuant to a transaction which complies with clauses (A), (B) and (C) of
subsection (iii) of this Section 2.09; or

     (ii) A change in the composition of the Board such that the Directors who, as of the
Effective Date, constitute the Board (such Board shall be hereinafter referred to as the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, for purposes of this Section 2.09, that any individual
who becomes a Director subsequent to the Effective Date, whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of
those Directors who were members of the Incumbent Board (or deemed to be such pursuant to
this proviso) shall be considered as though such Director were a member of the Incumbent
Board; but, provided, further, that any such individual whose initial
assumption of office occurs as a result of either an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board shall not be so considered as a member of the Incumbent Board;
or

     (iii) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (“Corporate
Transaction”); excluding, however, such a Corporate Transaction pursuant to
which (A) all or substantially all of the individuals and entities who are the beneficial
owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 50% of, respectively, the outstanding shares of common stock, and the
combined voting power of the then outstanding voting securities entitled to vote generally
in the election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Corporate Transaction, of the Outstanding
Common Stock and Outstanding Voting Securities, as the case may be, (B) no Person (other
than the Company, any employee benefit plan (or related trust) of

2

 

the Company or such corporation resulting from such Corporate Transaction) will
beneficially own, directly or indirectly, 20% or more of, respectively, the outstanding
shares of common stock of the corporation resulting from such Corporate Transaction or the
combined voting power of the outstanding voting securities of such corporation entitled to
vote generally in the election of directors except to the extent that such ownership
existed prior to the Corporate Transaction, and (C) individuals who were members of the
Incumbent Board will constitute at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Transaction; or

     (iv) The approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

          SECTION 2.10 “Claimant” has the meaning set forth in Section 6.01 of the
Plan.

          SECTION 2.11 “Code” means the Internal Revenue Code of 1986, as amended from time to
time, and the applicable rules and regulations promulgated thereunder.

          SECTION 2.12 “Committee” means the Compensation Committee of the Board.

          SECTION 2.13 "Common Stock” means the common stock, $1.00 par value per share, of the
Company.

          SECTION 2.14 “Company” means The McGraw-Hill Companies, Inc., a corporation organized
under the laws of the State of New York, or any successor corporation.

          SECTION 2.15 “Continuous Service” has the meaning set forth in the ERP.

          SECTION 2.16 “Director” means an individual who is a member of the Board.

          SECTION 2.17 “Dollar Income” has the meaning set forth in the ERIP.

          SECTION 2.18 “Earnings” for purposes of Section 5.01(c) of the Plan has the meaning
set forth in the ERIP. All other references to “Earnings” in the Plan mean all compensation paid by
the Employer to an Employee for services rendered, including short-term incentive compensation.
Earnings shall also include any reductions in compensation made pursuant to The McGraw-Hill
Companies, Inc. Flexible Spending Account Plan, The 401(k) Savings and Profit Sharing Plan of The
McGraw-Hill Companies, Inc. and Its Subsidiaries, the Transportation Benefit Program and similar
plans of the Company’s subsidiaries. For purposes of the Plan, “Earnings” excludes all other
executive contingent compensation.

          SECTION 2.19 “Effective Date” means the date set forth in Section 8.08 of the Plan.

          SECTION 2.20 “Employee” has the meaning set forth in the ERP.

          SECTION 2.21 “Employer” means the Company and its subsidiaries.

3

 

          SECTION 2.22 “Employment Termination Date” means the date of a Participant’s
“separation from service” from the Company, as defined in Section 409A(a)(2)(A)(i) of the Code.

          SECTION 2.23 “ERIP” means the Employee Retirement Income Plan of McGraw-Hill
Broadcasting Company, Inc. and Its Subsidiaries as in effect on December 31, 2003.

          SECTION 2.24 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the applicable rules and regulations promulgated thereunder.

          SECTION 2.25 “ERP” means the Employee Retirement Plan of The McGraw-Hill Companies,
Inc. and Its Subsidiaries.

          SECTION 2.26 “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, and the applicable rules and regulations promulgated thereunder.

          SECTION 2.27 “Extension Notice” has the meaning set forth in Section 6.01 of the Plan.

          SECTION 2.28 “Key Executive Plan” means The McGraw-Hill Companies, Inc. Key Executive
Short-Term Incentive Deferred Compensation Plan, as amended from time to time, or successor
programs thereto.

          SECTION 2.29 “Participant” means an Employee of an Employer who has been selected to
participate in the Plan, as provided in Article IV, and includes a Severance Plan Participant.

          SECTION 2.30 “Plan” means The McGraw-Hill Companies, Inc. Employee Retirement Plan
Supplement, as amended from time to time.

          SECTION 2.31 “Plan Administrator” has the meaning set forth in the ERP.

          SECTION 2.32 “Retirement Benefit” has the meaning set forth in the ERP.

          SECTION 2.33 “Unit” has the meaning set forth in the ERIP.

          SECTION 2.34 “Units of Variable Income” has the meaning set forth in the ERIP.

          SECTION 2.35 “Severance Plan” means The McGraw-Hill Companies, Inc. Management
Severance Plan, The McGraw-Hill Companies, Inc. Executive Severance Plan or The McGraw-Hill
Companies, Inc. Senior Executive Severance Plan, as amended from time to time, or successor
programs thereto.

4

 

          SECTION 2.36 “Severance Plan Earnings” means the total amount of salary continuation
payments paid to a Severance Plan Participant under a Severance Plan (excluding any amount paid in
a lump sum in lieu of salary continuation).

          SECTION 2.37 “Severance Plan Participant” means a former Employee of an Employer who
is entitled to remain an active participant in certain Company-sponsored plans and programs under a
Severance Plan (and who is not paid a single lump sum payment in lieu thereof).

          SECTION 2.38 “Specified Employee” means a Participant who is a “specified employee”
within the meaning of Section 409A(a)(2)(B)(i) of the Code.

          SECTION 2.39 “Stable Assets Fund Rate” means the annual rate of return of the SPSP
Stable Assets Fund, within the meaning of such term under The 401(k) Savings and Profit Sharing
Plan of The McGraw-Hill Companies, Inc. and Its Subsidiaries.

ARTICLE III

ADMINISTRATION

          SECTION 3.01 Administration. The Plan shall be administered by the Plan
Administrator, who shall have full authority to construe and interpret the Plan, to establish,
amend and rescind rules and regulations relating to the Plan, and to take all such actions and make
all such determinations in connection with the Plan as he may deem necessary or desirable. Subject
to Article VI of the Plan, decisions of the Plan Administrator shall be reviewable by the Appeal
Reviewer and the Committee. Subject to Article VI of the Plan, the Appeal Reviewer and the
Committee shall also have the full authority to make, amend, interpret, and enforce all appropriate
rules and regulations for the administration of the Plan and decide or resolve any and all
questions, including interpretations of the Plan, as may arise in connection with the Plan.

          SECTION 3.02 Binding Effect of Decisions. Subject to Article VI of the Plan, the
decision or action of the Appeal Reviewer, Plan Administrator or Committee in respect to any
question arising out of or in connection with the administration, interpretation and application of
the Plan and the rules and regulations promulgated hereunder shall be final, conclusive and binding
upon all persons having any interest in the Plan.

          SECTION 3.03 Indemnification. To the fullest extent permitted by law, the Appeal
Reviewer, the Plan Administrator, the Committee and the Board (and each member thereof), and any
employee of the Employer to whom fiduciary responsibilities have been delegated shall be
indemnified by the Company against any claims, and the expenses of defending against such claims,
resulting from any action or conduct relating to the administration of the Plan, except claims
arising from gross negligence, willful neglect or willful misconduct.

5

 

ARTICLE IV

PARTICIPATION

          SECTION 4.01 Continuing Participants. Any individual who was a Participant in the Plan
immediately prior to the effective date of this amendment and restatement shall continue to be a
Participant on such date, subject to the terms and provisions of the Plan.

          SECTION 4.02 New Participants. Any Employee of the Employer (other than a Participant
described in Section 4.01 of the Plan) who is selected by the Committee to be eligible to
participate in the Plan shall become a Participant as of the first day of the month coinciding with
or next following his selection.

ARTICLE V

BENEFITS

          SECTION 5.01 Basic Benefit. (a) Except as provided in Section 5.01(c) of the Plan, for
each year that a Participant is employed by an Employer beginning on or after the later of (i)
January 1 of the year in which the Participant’s participation in the Plan commenced or (ii)
January 1, 1989, the Participant shall be entitled to receive a Benefit, expressed as a life
annuity, in an amount equal to the applicable percentage of the sum of (A) the Participant’s
Earnings for such year in excess of the maximum amount of compensation that may be taken into
account under the ERP as a result of the limitation of Section 401(a)(17) of the Code in effect for
such year, (B) any short-term incentive compensation for such year deferred by the Participant
under the Key-Executive Plan, and (C) for each year after December 31, 1996, any salary earned for
such year which is deferred by the Participant under any plan or arrangement of the Employer. Any
salary or short-term incentive compensation that is deferred by a Participant shall be excluded
from Earnings in the year paid to the Participant.

          (b) For purposes of clause (a) above, the applicable percentage is 1%, except that in the case
of a Participant who was a participant in the ERP on June 30, 1986, and who had (A) as of that date
attained age 45 and completed five years of Continuous Service, and (B) whose attained age in whole
years and whole months, plus years of Continuous Service, equals 60 or more, the applicable
percentage is 1.4%.

          (c) A Broadcasting Participant’s Benefit for years prior to 2004 shall be determined in
accordance with the following:

     (i) For each year that such a Participant was employed by an employer under the
Broadcasting ERIP Supplement beginning on or after the later of (A) January 1 of the year
in which the Participant’s participation in the Broadcasting ERIP Supplement commenced or
(B) January 1, 1990, the Participant shall be credited with (x) Dollar Income equal to 1%
of the sum of (1) the Participant’s Earnings for such year in excess of the maximum amount
of compensation that may be taken into account under the ERIP as a result of the limitation
of Section 401(a)(17) of the Code in effect for such year and (2) any short-term incentive
compensation deferred by the Participant under the Key Executive Plan, and (y) Units of
Variable Income equal to the result of dividing the amount in (x) by the dollar value of a
Unit as of the Accounting Date for such year. The

6

 

Participant’s Benefit, expressed as a life annuity, shall be equal to the sum of (1) his
Dollar Income and (2) the result of multiplying the total of the Units of Variable Income
credited to the Participant by the dollar value of a Unit as of the Accounting Date for the
year preceding the commencement of payments under the Plan.

     (ii) Notwithstanding the foregoing, such a Participant shall only be entitled to earn
benefits under the Plan with respect to years after 2003 if he is designated to receive
future benefits by the Committee.

     (iii) In the event that a participant in the Broadcasting ERIP Supplement terminated
employment with all employers under the Broadcasting ERIP Supplement prior to 2004 but is
entitled to future or current benefits under the Broadcasting ERIP Supplement, such
benefits shall be paid under the Plan in an amount determined under the Broadcasting ERIP
Supplement and set forth in Appendix A.

          SECTION 5.02 Additional Benefits. In addition to the Benefit under Section 5.01 of
the Plan, a Participant will be eligible to receive the following Benefits:

          (a) In the event that any Retirement Benefit payable to a Participant under the ERP is limited
by Section 415 of the Code (or any successor provision thereto) or any provision of the ERP
implementing such limitation, the Participant shall be entitled to receive a Benefit in an amount
equal to the difference, expressed as a life annuity, between (i) the benefit the Participant would
have received under the ERP if Section 415 of the Code (or any successor provision thereto) or any
such implementing retirement plan provision were disregarded, and (ii) the benefit which the
Participant is entitled to receive under the provisions of the ERP.

          (b) Effective April 26, 2000, a Severance Plan Participant shall be entitled to receive a
Benefit in an amount equal to the difference, expressed as a life annuity, between (i) the benefit
the Participant would have received under the ERP had the Participant continued to earn credit
under the ERP for purposes of benefit accrual with respect to the Participant’s Severance Plan
Earnings and (ii) the benefit which the Participant is entitled to receive under the ERP.

          SECTION 5.03 Payment of Benefits. (a) Subject to the other provisions of this Section
5.03 and Section 5.04 of the Plan, and except as would violate the requirements of Sections
409A(a)(2), 409A(a)(3) and 409A(a)(4) of the Code, the Benefits provided by this Article V shall be
paid to a Participant in accordance with the following:

     (i) The Benefits shall be paid as a
single-life annuity or, if different, in the form of actuarially equivalent life annuity elected by
the Participant, subject to and in accordance with the procedures prescribed by the Plan
Administrator from time to time.

     (ii) The Benefits shall be paid commencing on the first day of the calendar month
following the later of (A) the first anniversary of the Participant’s Employment
Termination Date and (B) as the case may be, the Participant’s attaining (1) age 62, if the
Participant completed ten years of Continuous Service and is not due a benefit under the
ERIP, or (2) age 65.

7

 

The Benefits provided by this Article V shall be paid in accordance with the foregoing to a
Participant’s Beneficiary in the event of the death of the Participant, if such Beneficiary is
entitled to benefits under the provisions of the ERP.

          (b) Notwithstanding anything contained herein to the contrary, a Participant who does not have
five years of Continuous Service under ERP when he ceases to be an employee of the Employer or
ceases to have any salary continuation installment due under a Severance Plan, if later, shall
forfeit the Benefits provided by this Article V, unless his Employment Termination Date occurs on
or after his 65th birthday or his death.

          (c) If the lump-sum Actuarial Equivalent of the Benefits provided to a Participant by this
Article V (other than a Participant who is a Specified Employee) or to a Participant’s Beneficiary,
determined using the interest rate for lump sums under the ERP, is equal to or less than $10,000 as
of the Participant’s Employment Termination Date or, in the case of a Beneficiary, at the time the
Benefit is payable to the Beneficiary under the Plan, such amount will be paid to the Participant
or Beneficiary in a lump sum as soon as practicable thereafter, but, in the case of a Participant,
in no event later than December 31 of the calendar year in which occurs the Participant’s
Employment Termination Date or, if later, the date which is two and one-half months following the
Participant’s Employment Termination Date.

          (d) In the event that, in accordance with Section 5.03(a)(ii), the payment of Benefits
commences on a date that is later than the first day of the calendar month following the later of
(A) the Participant’s Employment Termination Date and (B) as the case may be, the Participant’s
attaining (1) age 62, if the Participant completed ten years of Continuous Service and is not due a
benefit under the ERIP, or (2) age 65, then the Participant (or the Participant’s Beneficiary)
shall be paid interest at the Stable Assets Fund Rate for the period commencing on such date and
ending on the date on which the payment of Benefits commences in accordance with Section
5.03(a)(ii).

          SECTION 5.04 Payment of Benefits in Event of Change in Control. In lieu of the
Benefits payable under Sections 5.01 through 5.03 of the Plan, in the event of a Change in Control
that is also a “change in control event” within the meaning of Section 409A(a)(2)(A)(v) of the
Code, (i) each Participant or Beneficiary who is then receiving Benefits shall be paid immediately
upon such Change in Control a lump-sum payment equal to the Actuarial Equivalent of such Benefits
measured as of the date of such Change in Control; (ii) each other Participant who is not a member
of The McGraw-Hill Companies, Inc. Senior Executive Supplemental Death, Disability & Retirement
Benefits Plan shall be paid immediately upon such Change in Control a lump-sum payment equal to the
Actuarial Equivalent of the Benefits to which that Participant is entitled under Sections 5.01 and
5.02 of the Plan as of the date of such Change in Control.

ARTICLE VI

CLAIMS PROCEDURE

          SECTION 6.01 Claims. In the event any person or his authorized representative (a
“Claimant”) disputes the amount of, or his entitlement to, any benefits under the Plan or their

8

 

method of payment, such Claimant shall file a claim in writing with, and on the form
prescribed by, the Plan Administrator for the benefits to which he believes he is entitled, setting
forth the reason for his claim. The Claimant shall have the opportunity to submit written comments,
documents, records and other information relating to the claim and shall be provided, upon request
and free of charge, reasonable access to and copies of all documents, records or other information
relevant to the claim. The Plan Administrator shall consider the claim and within 90 days of
receipt of such claim, unless special circumstances exist which require an extension of the time
needed to process such claim, the Plan Administrator shall inform the Claimant of its decision with
respect to the claim. In the event of special circumstances, the response period can be extended
for an additional 90 days, as long as the Claimant receives written notice advising of the special
circumstances and the date by which the Plan Administrator expects to make a determination (the
“Extension Notice”) before the end of the initial 90-day response period indicating the reasons for
the extension and the date by which a decision is expected to be made. If the Plan Administrator
denies the claim, the Plan Administrator shall give to the Claimant (i) a written notice setting
forth the specific reason or reasons for the denial of the claim, including references to the
applicable provisions of the Plan, (ii) a description of any additional material or information
necessary to perfect such claim along with an explanation of why such material or information is
necessary, and (iii) appropriate information as to the Plan’s appeals procedures as set forth in
Section 6.02 of the Plan.

          SECTION 6.02 Appeal of Denial. A Claimant whose claim is denied by the Plan
Administrator and who wishes to appeal such denial must request a review of the Plan
Administrator’s decision by filing a written request with the Appeal Reviewer for such review
within 60 days after such claim is denied. Such written request for review shall contain all
relevant comments, documents, records and additional information that the Claimant wishes the
Appeal Reviewer to consider, without regard to whether such information was submitted or considered
in the initial review of the claim by the Plan Administrator. In connection with that review, the
Claimant may examine, and receive free of charge, copies of pertinent Plan documents and submit
such written comments as may be appropriate. Written notice of the decision on review shall be
furnished to the Claimant within 60 days after receipt by the Appeal Reviewer of a request for
review. In the event of special circumstances which require an extension of the time needed for
processing, the response period can be extended for an additional 60 days, as long as the Claimant
receives an Extension Notice. If the Appeal Reviewer denies the claim on review, notice of the
Appeal Reviewer’s decision shall include (i) the specific reasons for the adverse determination,
(ii) references to applicable Plan provisions, (iii) a statement that the Claimant is entitled to
receive, free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the claim and (iv) a statement of the Claimant’s right to bring an action
under Section 502(a) of ERISA following an adverse benefit determination on a review and a
description of the applicable limitations period under the Plan. The Claimant shall be notified no
later than five days after a decision is made with respect to the appeal.

          SECTION 6.03 Statute of Limitations. A Claimant wishing to seek judicial review of an
adverse benefit determination under the Plan, whether in whole or in part, must file any suit or
legal action, including, without limitation, a civil action under Section 502(a) of ERISA, within
three years of the date the final decision on the adverse benefit determination on review is issued
or should have been issued under Section 6.02 of the Plan or lose any rights to

9

 

bring such an action. If any such judicial proceeding is undertaken, the evidence presented
shall be strictly limited to the evidence timely presented to the Plan Administrator.
Notwithstanding anything in the Plan to the contrary, a Claimant must exhaust all administrative
remedies available to such Claimant under the Plan before such Claimant may seek judicial review
pursuant to Section 502(a) of ERISA.

ARTICLE VII

AMENDMENT AND TERMINATION OF PLAN 

          SECTION 7.01 Amendment and Termination. The Board or the Committee or any delegate
thereof may cause the Plan to be amended at any time and from time to time, prospectively or
retroactively, and the Board may terminate the Plan in its entirety at any time; provided,
however, that no amendment to the Plan may be made by the Committee that materially
increases benefits to Participants. In addition, the Board may terminate the Plan in its entirety
at any time and, in connection with any such termination, may pay to each Participant or
Beneficiary his Benefits under the Plan, subject to and in accordance with the requirements of
Treasury Regulation Section 1.409A-3(j)(4)(ix) (or any successor provision thereto).
Notwithstanding the foregoing provisions of this Section 7.01, subject to the provisions of Section
7.02 of the Plan, no amendment or termination shall reduce the Benefit or rights of any Participant
except with the written consent of the Participant or other person then receiving such Benefit. In
addition, after a Change in Control, the definition of “Actuarial Equivalent” in Section 2.02 may
not be amended.

          SECTION 7.02 Section 409A. The Plan is intended to meet the requirements of Section
409A of the Code and shall be interpreted and construed consistent with such intent. If, in the
good faith judgment of the Committee, any provision of the Plan could otherwise cause any person to
be subject to the interest and penalties imposed under Section 409A of the Code, such provision
shall be modified by the Committee in its sole discretion to maintain, to the maximum extent
practicable, the original intent of the applicable provision without causing the interest and
penalties under Section 409A of the Code to apply, and, notwithstanding any provision in the Plan
to the contrary, the Committee shall have broad authority to amend or to modify the Plan, without
advance notice to or consent by any person, to the extent necessary or desirable to ensure that no
Benefits are subject to tax under Section 409A of the Code. Any determinations made by the
Committee under this Section 7.02 shall be final, conclusive and binding on all persons.

ARTICLE VIII

MISCELLANEOUS

          SECTION 8.01 Unsecured General Creditor. The Plan is an unfunded deferred compensation
plan for a select group of management or highly compensated employees within the meaning of ERISA,
and shall be construed and administered accordingly. Participants and their Beneficiaries shall
have no legal or equitable rights, interest or claims in any property or assets of the Employer.
The assets of the Employer shall not be held under any trust for the benefit of Participants or
their Beneficiaries or held in any way as collateral security for the fulfilling of the obligations
of the Employer under the Plan. Any and all of the Employer’s assets shall be, and remain, the
general, unpledged, unrestricted assets of the Employer. The

10

 

Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise of
the Employer to pay money in the future.

          SECTION 8.02 Nonassignability. Each Participant’s rights under the Plan shall be
nontransferable except by will or by the laws of descent and distribution and except insofar as
applicable law may otherwise required. Subject to the foregoing, neither a Participant nor any
other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if
any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be nonassignable and non-transferable. No part of the amounts payable shall, prior to
actual payment, be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or any other person, nor be transferable by
operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.

          SECTION 8.03 Conditions of Payment of Benefit. Notwithstanding any provision of the
Plan to the contrary, the right of a Participant or his Beneficiary to receive the Benefit
otherwise payable hereunder shall cease upon the discharge of the Participant from employment with
the Employer for acts which constitute fraud, embezzlement, or dishonesty, and shall be determined
by the Appeal Reviewer in his sole discretion.

          SECTION 8.04 Not a Contract of Employment. The terms and conditions of the Plan shall
not be deemed to constitute a contract of employment with the Participant, and the Participant (or
his Beneficiary) shall have no rights against the Employer except as specifically provided herein.
Moreover, nothing in the Plan shall be deemed to give a Participant the right to be retained in the
service of the Employer or to interfere with the rights of the Employer to discipline or discharge
him at any time.

          SECTION 8.05 Binding Effect. The Plan shall be binding upon and shall inure to the
benefit of the Participant or his Beneficiary, his heirs and legal representatives, and the
Employer.

          SECTION 8.06 Withholding. To the extent required by the law in effect at the time
payments are made, the Employer shall withhold from payments made hereunder any taxes or other
amounts required to be withheld for any federal, state or local government and other authorized
deductions.

          SECTION 8.07 Severability. In the event that any provision or portion of the Plan
shall be determined to be invalid or unenforceable for any reason, the remaining provisions and
portions of the Plan shall be unaffected thereby and shall remain in full force and effect to the
fullest extent permitted by law.

          SECTION 8.08 Effective Date. The Plan initially was effective as of December 1, 1989
(the “Effective Date”). This amendment and restatement is effective as of January 1, 2008.

          SECTION 8.09 Governing Law. The Plan shall be construed under the laws of the State of
New York, to the extent not preempted by federal law.

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          SECTION 8.10 Headings. The section headings used in this document are for ease of
reference only and shall not be controlling with respect to the application and interpretation of
the Plan.

          SECTION 8.11 Rules of Construction. Any words herein used in the masculine shall be
read and construed in the feminine where they would so apply. Words in the singular shall be read
and construed as though used in the plural in all cases where they would so apply. All references
to sections are, unless otherwise indicated, to sections of the Plan.

12

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