Document:

exv10w5

 

Exhibit 10.5

AMENDMENT NUMBER TWO

TO THE KITTY HAWK

2003 LONG TERM EQUITY INCENTIVE PLAN

     THIS AMENDMENT TO THE KITTY HAWK 2003 LONG TERM EQUITY INCENTIVE PLAN (this “Amendment”),
dated as of September 30, 2005, is made and entered into by Kitty Hawk, Inc., a Delaware
corporation (the “Company”). Terms used in this Amendment with initial capital letters that are
not otherwise defined herein shall have the meanings ascribed to such terms in the Kitty Hawk 2003
Long Term Equity Incentive Plan (the “Plan”).

RECITALS

     WHEREAS, Section 6.8 of the Plan provides for automatic stock option grants to Outside
Directors; and

     WHEREAS, the Board of Directors of the Company (the “Board”) desires to amend the Plan to
delete Section 6.8(a) of the Plan, which granted Stock Options to Outside Directors as of the date
of the Plan; and

     WHEREAS, the Board desires to amend the Plan to delete Section 6.8(b) of the Plan, which
granted Stock Options to Outside Directors who joined the Board before September 30, 2005; and

     WHEREAS, the Board desires to amend and restate Section 6.8(c) of the Plan, which grants an
Award to each Outside Director on September 30, 2005 and on each anniversary of September 30, 2005,
to increase the value of the Award from $15,000 to $28,750 and to change the vesting schedule from
12 equal monthly installments with the first installment vesting on the one month anniversary of
the Award’s grant date, to four quarterly installments with the first installment vesting on the
three month anniversary of the Award’s grant date; and

     WHEREAS, the Board desires to amend and restate Section 6.8(d) of the Plan to delete the
provision that provides dates when the unexercised portion of a Stock Option which is vested will
terminate and be forfeited in the event of a Termination of Service of an Outside Director; and

     WHEREAS, the Board desires to amend and restate Section 8.6 of the Plan to eliminate the
reimbursement of taxes for Outside Directors for periods of service commencing on or after
September 30, 2005; and

     WHEREAS, Article 9 of the Plan provides that the Board has the authority to amend the Plan
without the consent of the Participants; and

     WHEREAS, the Board has approved the proposal to amend the Plan;

     NOW, THEREFORE, the Company hereby amends the Plan as follows:

1. The heading of Section 6.8 is hereby amended from “Automatic Stock Option Grants to Outside
Directors” to state “Automatic Award Grants to Outside Directors.”

 

 

2. Section 6.8(a) of the Plan is hereby deleted in its entirety.

3. Section 6.8(b) of the Plan is hereby deleted in its entirety.

4. Section 6.8(c) of the Plan is hereby amended by deleting such Section and substituting in lieu
thereof the following:

     (a) On September 30, 2005, and on each anniversary of September 30, 2005,
each individual who is then an Outside Director shall be granted an Award to
purchase or receive, directly or indirectly, a number of shares of Common Stock
such that the Award will have a value (as determined by the Committee) of $28,750
on September 30, 2005 and $28,750, or such other amount as is determined by the
Board, on each anniversary of September 30, 2005, rounded down to the nearest
whole share. Such Award will vest over a one year period in four equal quarterly
installments with the first installment vesting on the three month anniversary of
the date of such Award’s grant.

5. Section 6.8(d) of the Plan is hereby amended by deleting such Section and substituting in lieu
thereof the following:

     (b) Each grant of an Award under this Section 6.8 shall be evidenced by an
Award Agreement setting forth the number of shares subject to the Award, the price
or exercise price (if any), the Award Period of the Award (if any), and such other
terms and provisions determined by the Committee as are not inconsistent with the
Plan.

6. Section 8.6 of the Plan is hereby amended by deleting such Section and substituting in lieu
thereof the following:

     8.6 Payment of Taxes for Outside Directors. In connection with the exercise,
vesting or other tax-triggering event related to an Award granted to an Outside
Director prior to September 30, 2005, the Company shall pay such Outside Director
subject to such tax an amount equal to forty percent of the gains resulting from
such exercise, vesting or other tax-triggering event; provided, that the Company
shall not be obligated (a) to pay more than $10,000 for each twelve month period
of service (prorated for shorter periods of service) by such Outside Director as a
member of the Company’s Board of Directors for the periods of service ending on or
prior to September 30, 2005; or (b) to pay any such tax reimbursement for any
period of service commencing on or after September 30, 2005.

7. Except as expressly amended by this Amendment, the Plan shall continue in full force and effect
in accordance with the provisions thereof.

* * * * *

 

 

     IN WITNESS WHEREOF, the Company has caused this Amendment to be duly executed as of the date
first written above.

	 	 	 	 	 
	 	KITTY HAWK, INC.

 	 
	 	By:  	/s/ Steven E. Markhoff
 	 
	 	 	Name:  	Steven E. Markhoff 	 
	 	 	Title:  	Vice President Strategic Planning, General
Counsel and Corporate Secretary<PAGE>

                                                                    Exhibit 10.1

                       AMENDMENT TO EMPLOYMENT AGREEMENT

         THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the "Agreement"), dated
effective as of October 4, 2005, is made and entered into to amend the Amended
and Restated Employment Agreement, dated effective May 17, 2002 (the "Employment
Agreement"), by and between The Peoples Publishing Group, Inc., a Delaware
corporation (the "Company"), and Michael L. DeMarco, an individual resident of
the State of New Jersey (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Company and the Executive mutually desire to amend the
Employment Agreement as set forth in this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements herein contained, the Company and the Executive agree as follows:

         1. Amendment. The Employment Agreement shall be amended as provided in
this Agreement. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Employment Agreement.

         2. Term. Section 2 of the Employment Agreement is hereby amended to
provide as follows:

                  "2. Term. Unless terminated at an earlier date in accordance
         with Section 8, the term of the Executive's employment hereunder shall
         be for a period ending on May 17, 2008. Thereafter, the term of this
         Agreement shall be automatically extended for successive one-year
         periods unless either party objects to such extension by written notice
         to the other party at least 180 days prior to the end of the initial
         term or any extension. Notwithstanding the foregoing, the terms of
         Sections 5 (Confidential Information), 7 (Non-Competition), 8
         (Termination) and 9 (Miscellaneous) shall survive the expiration or
         termination of this Agreement (whether such expiration or termination
         occurs as a result of the expiration of the term as provided herein, by
         mutual agreement, as a result of the Executive's resignation,
         termination by the Company with or without Cause (as defined below), or
         any other reason), and continue in full force and effect in accordance
         with their terms."

         3. Non-Competition.

                  (a) Section 7.01 of the Employment Agreement is hereby amended
         to provide as follows:

                  "7.01 During the term of the Executive's employment by the
         Company and for one year following termination of his employment, he
         shall not, directly or indirectly, engage in competition with the
         Company or any of its Affiliates in any manner or

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<PAGE>

         capacity (e.g., as an adviser, consultant, principal, agent, partner,
         officer, director, stockholder, employee, member of any association, or
         otherwise) in any phase of the business which the Company or any of its
         Affiliates is actively pursuing at the time the Executive's employment
         is terminated."

                  (b) Section 7.06 of the Employment Agreement is hereby amended
         to provide as follows:

                  "7.06 Except as set forth in sections 8.01 or 8.02, during the
         period when the noncompetition covenant contained in Section 7.01 is
         effect following the termination of the Executive's employment by the
         Company, the Company shall pay to the Executive, as consideration for
         such covenant, an amount equal to 60% of the Executive's annual base
         salary at the time of termination of employment, which amount shall be
         payable to the Executive on a monthly basis in advance. However, if the
         Executive becomes employed with another corporation or entity or as a
         sole proprietor during the term of his noncompetition covenant which
         follows the termination of the Executive's employment by the Company,
         the Company shall only be obligated to pay to the Executive, as
         consideration for such covenant, an amount equal to 30% of the
         Executive's annual base salary at the time of termination of
         employment, which amount shall be payable to the Executive on a monthly
         basis. In either case, the Company may, upon 30 days written notice to
         the Executive, terminate its obligation to make such payments to the
         Executive and, in such event, this noncompetition covenant shall
         terminate as of the end of such 30-day period.

                  (c) Section 7.07 of the Employment Agreement is hereby amended
         to provide as follows:

                  "7.07 Ownership by the Executive, as a passive investment, of
         less than 5% of the outstanding shares of capital stock of any
         corporation listed on a national securities exchange or publicly traded
         in the over-the-counter market shall not constitute a breach of this
         Section 7."

         4. Miscellaneous.

                  4.01 Governing Law. This Agreement is made under and shall be
         governed by and construed in accordance with the laws of the State of
         New Jersey, without regard to New Jersey's conflicts of law rules.

                  4.02 Prior Agreements. This Agreement and the Employment
         Agreement contain the entire agreement of the parties relating to the
         subject matter hereof and supersede all prior agreements and
         understandings with respect to such subject matter, and the parties
         hereto have made no agreements, representations or warranties relating
         to the subject matter of this Agreement which are not set forth herein.

                  4.03 Amendments. No amendment or modification of this
         Agreement shall be deemed effective unless made in writing signed and
         delivered by the parties hereto.

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<PAGE>

                  4.04 Assignment. This Agreement shall not be assignable, in
         whole or in part, by either party without the written consent of the
         other party.

                  4.05 No Waiver. No term or condition of this Agreement shall
         be deemed to have been waived, nor shall there be any estoppel to
         enforce any provisions of this Agreement, except by a statement in
         writing signed by the party against whom enforcement of the waiver or
         estoppel is sought. Any written waiver shall not be deemed a continuing
         waiver unless specifically stated, shall operate only as to the
         specific term or condition waive and shall not constitute a waiver of
         such term of condition for the future or as to any act other than that
         specifically waived.

                  4.06 Counterparts. This Agreement may be signed in
         counterparts, each of which, when executed and delivered, shall
         constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties have hereunto set their hands,
intending to be legally bound, as of the date first above written.

                                      THE PEOPLES PUBLISHING GROUP, INC.

                                      By:  /s/ Brian T. Beckwith
                                           -------------------------------------
                                           Brian T. Beckwith
                                      Its: Chief Executive Officer and President

                                      /s/ Michael L. DeMarco
                                      ------------------------------------------
                                      Michael L. DeMarco

ACCEPTED AND AGREED TO
This 4th day of October, 2005.

PEOPLES EDUCATIONAL HOLDINGS, INC.

By:    /s/ Brian T. Beckwith
    -----------------------------------------
       Brian T. Beckwith
Its:   President and Chief Executive Officer

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