Document:

exv10w9

 

Exhibit 10.9

     COMMON
STOCK OPTIONS AGREEMENT dated as of
[       ] between ACG
HOLDINGS, INC., a Delaware corporation (the “Company”), and the other party signatory hereto (the
“Participant”).

     WHEREAS, the Participant is currently an officer or key employee of the Company or one of its
Subsidiaries and, pursuant to the Company’s Common Stock Option
Plan (the “Common Plan”) and upon
the terms and subject to the conditions hereinafter set forth, the Company desires to provide the
Participant with an incentive to remain in its employ or the employ of one of its Subsidiaries and
to increase his interest in the success of the Company by granting to the Participant nonqualified
stock options (the “Options”) to purchase shares of Common Stock, par value $0.01, of the Company
(the “Common Stock”);

     NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereto agree as follows:

     SECTION 1. Definitions; Incorporation of Common Plan Terms. Capitalized
terms used herein without definition shall have the meanings assigned to them in the Common Plan, a
copy of which is attached hereto. This Agreement, the Options and the shares of Common Stock
issued pursuant to the exercise of Options (the “Option
Shares”) shall be subject to the Common
Plan, the terms of which are hereby incorporated herein by reference, and in the event of any
conflict or inconsistency between the Common Plan and the Agreement, the Common Plan shall govern.
The Participant acknowledges that he has received and reviewed a copy of the Common Plan. The Date
of Grant with respect to the Options shall be the date specified at the foot of the signature page
hereof.

     SECTION 2. Stockholders’ Agreement; Certain Restrictions. In accordance with
Section 7 of the Common Plan, the Participant and the Company hereby confirm that, effective as of
the date hereof, the Participant shall, for purpose of the Stockholders’ Agreement, be deemed to be
a “Stockholder” with respect to the Options and the Option Shares and the Participant agrees to be
bound by all the terms of the Stockholders’ Agreement applicable to such a Stockholder. None of
the Option Shares may be sold, transferred, assigned, pledged, or otherwise encumbered or disposed
of to any third party other than the Company except as provided in the Stockholders’ Agreement.
None of the Options may be sold, transferred, assigned, pledged, or otherwise encumbered or
disposed of, except by will or the laws of descent and distribution. During the Participant’s
lifetime, an Option shall be exercisable only by the Participant. Each Permitted Transferee (other
than the Company) of any Option or Option Share shall, as a condition to the transfer thereof,
execute an agreement pursuant to which it shall become a party to the Stockholders’ Agreement and
the Agreement.

 

 

     SECTION 3. Grant of Options. Subject to the terms and conditions contained herein and in the
Common Plan, the Company hereby grants to the Participant, effective as of the Date of Grant, the
number of Options specified at the foot of the signature page hereof. Each such Option shall
entitle the Participant to purchase, upon payment of the Option Price specified at the foot of the
signature page hereof, one share of Common Stock. The Options shall be exercisable as hereinafter
provided.

     SECTION 4. Terms and Conditions of Options. The Options evidenced hereby are subject to the
following terms and conditions:

     (a) Vesting. 25% of the Participant’s Options shall vest and become exercisable as of each of
the first four anniversaries of the Date of Grant. In the event of a termination of the
Participant’s employment by reason of death or Permanent Disability, the Participant’s Options
shall become 50% vested if such Options were less than 50% vested at the time of such termination.
All Options shall immediately vest upon (i) the closing of a sale of Common Stock pursuant to
Section 3.08 of the Stockholders’ Agreement (and the Participant shall be considered to be an
“Other Stockholder” for purposes of such Section 3.08) and (ii) a sale by the Company of all or
substantially all of its assets to a third party that is not an Affiliate of the Company.

     (b) Option Period. The Options shall not be exercisable following the tenth anniversary of
the Date of Grant, and shall be subject to earlier termination as provided herein and in the Common
Plan. Upon termination of the Participant’s employment with the Company or any of its Subsidiaries
(including upon the Participant’s death, Permanent Disability or Retirement, but not including a
termination, on or prior to December 31, 2001, of the Participants employment by the Company or any
of its Subsidiaries for Cause or by the Participant other than for Good Reason), the Participant
(or, in the case of the Participant’s death, his Beneficiary) may exercise any Vested Option in
accordance with, and subject to the terms and conditions of, Section 8(a)(iv) of the Common Plan.
Upon termination of the Participant’s employment for any reason, all Options which have not
theretofore vested (and which do not vest by reason of such termination of employment) shall be
forfeited and canceled without any payment therefor.

     (c) Notice of Exercise. Subject to Sections 4(d), 4(g) and 6(b) hereof, the Participant may
exercise any or all of the Options (to the extent vested and not forfeited) by giving written
notice to the Committee. The date of exercise of an Option shall be the later of (i) the date on
which the Committee receives such written notice or (ii) the date on which the conditions provided
in Sections 4(d), 4(g) and 6(b) hereof are satisfied.

2

 

     (d) Payment. Prior to the issuance of a Legended Certificate pursuant to Section 4(h) hereof
evidencing Option Shares, the Participant shall have paid to the Company the Option Price of all
Option Shares purchased pursuant to exercise of such Options in cash or, with the consent of the
Board of Directors (which consent shall be granted in the sole discretion of the Board of
Directors), in shares of Common Stock already owned by the Participant (valued at their Applicable
Value) or any combination of cash and such shares.

     (e) Stockholder Rights. The Participant shall have no rights as a stockholder with respect to
any Option Shares until a certificate or certificates evidencing such shares shall have been issued
to the Participant, and, except as provided in Section 11 of the Common Plan, no adjustment shall
be made for dividends or distributions or other rights in respect of any share for which the record
date is prior to the date upon which the Participant shall become the holder of the record thereof.

     (f) Dividends and Distributions. Any shares of Common Stock or other securities of the
Company received by the Participant as a result of a stock distribution to holders of Option Shares
or as a stock dividend on Option Shares shall be subject to the same restrictions as such Options
Shares, and all reference to Option Shares hereunder shall be deemed to include such shares of
Common Stock or other securities.

     (g) Limitation on Exercise. The Options shall not be exercisable unless the offer and sale of
the shares of Common Stock subject thereto have been registered under the 1933 Act and qualified
under applicable state “blue sky” laws, or the Company has determined that an exemption from
registration under the 1933 Act and from qualification under such state “blue sky” laws is
available. The Company may require, as a condition to the exercise of an Option, that the
Participant make certain representations and warranties as to the Participant’s investment intent
with respect to the Option Shares.

     (h) Issuance of Certificates. As soon as practicable following the exercise of any Options,
a Legended Certificate evidencing the number of shares of Common Stock issued in connection with
such exercise shall be issued in the name of the Participant.

     (i) Determination of Fair Market Value. If, in connection with the exercise by the Company of
its Call Right under Section 9 of the Common Plan, the Participant reasonably believes that the
Board of Directors’ determination of Fair Market Value (if applicable) is not reasonable, then the
Participant may challenge the Board of Directors’ determination of such Fair Market Value by giving
written notice to the Board of Directors no later than 10 business days after receipt of notice of
the purchase price which the

3

 

Company intends to pay upon exercise of its Call Right. In such event, the Company shall engage at
its own expense an appraisal or investment banking firm that is independent of the Company and its
Affiliates to determine the Fair Market Value of the Common Stock for purposes of determining the
purchase price to be paid by the Company; provided, however, that if such a determination has been
made by such an appraisal or investment banking firm less than one year prior to the date as of
which the Fair Market Value of the Common Stock is to be determined, the Company shall not be
required to engage any such firm and may, in its discretion, instead rely upon such earlier
valuation. Any such appraisal or investment banking firm engaged by the Company shall be selected
by the Board of Directors and shall be reasonably satisfactory to the Participant. The purchase
price determined by such independent appraisal or investment banking firm shall be conclusive and
binding on the parties. Anything in Section 10(a) of the Common Plan or this Agreement to the
contrary notwithstanding, if such an independent appraisal or investment banking firm is appointed,
no payment shall be made in respect of the Company’s repurchase of Vested Options or Option Shares
pending the determination of the purchase price by such firm, and payment of such purchase price
shall instead be made no later than the tenth business day following receipt by the Company of the
report of such firm establishing such purchase price. If there has been an independent appraisal
or determination of Fair Market Value by an independent appraisal or investment banking firm within
the past one year and the Fair Market Value so determined by the independent appraisal or
investment banking firm exceeds the earlier Fair Market Value so determined by 10%, the costs of
such firm shall be for the account of the Company; in all other cases, the costs of such firm shall
be shared equally by the Company and the Participant, and the Company shall have the right to
withhold such costs from any payment it makes in respect of its repurchase of Vested Options or
Option Shares from the Participant.

     (j) Financial Capability; Legal Limitations. Anything in the Common Plan or this Agreement to
the contrary notwithstanding, to the extent that (i) the limitations or restrictions applicable to
the Company or any of its Subsidiaries under the laws of the State of Delaware, the restrictions or
limitations contained in the Company’s Certificate of Incorporation or any other applicable law,
rule or regulation or under the terms of any indebtedness for borrowed money of the Company or any
of its Subsidiaries prohibit the Company from making any payment required under the Common Plan or
this Agreement with respect to an Option or Option Share or (ii) the Board of Directors shall
determine in good faith that the Company is not financially capable of making any such payment,
then the Company shall not be obligated to make such payment at such time, and shall have the right
to defer such payment until the Board of Directors reasonably determines that such

4

 

limitations and restrictions no longer restrict the Company from making such deferred payment. Any
amounts the payment of which is so deferred shall bear interest, compounded annually and calculated
at a rate equal to the T-Bill Rate plus 50 basis points per annum from the closing date for the
repurchase of the Participant’s Options and Option Shares and shall be paid (with interest)
promptly after, and to the extent that, the Board of Directors determines that the limitations and
restrictions referred to in the first sentence of this Section 4(j) no longer restrict such
payment. Notwithstanding a deferral of payment in accordance with this Section 4(j) for Vested
Options or Option Shares in respect of which the Company shall have exercised its Call Right, the
closing of any exercise of such Call Right shall take place as provided in Section 10(a) of the
Common Plan, and the right of the Participant and his Permitted Transferees in respect of the
Vested Options and Option Shares (other than the right to receive payment of amounts deferred and
interest thereon in accordance with this Section 4(j) shall terminate as of such closing.

     SECTION 5. Representations and Warranties. The Participant is aware of and familiar with the
restrictions imposed on the transfer of any Options or Option Shares, including, without
limitation, the restrictions contained in the Stockholders’ Agreement. The Participant represents
that this Agreement has been duly executed and delivered by the Participant and constitutes a
legal, valid and binding agreement of the Participant, enforceable against the Participant in
accordance with its terms, except as limited by an applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally and by general
principles of equity.

     SECTION 6. Miscellaneous.

     (a) No rights to Grants or Continued Employment. The Participant shall not have any claim or
right to receive grants of Options under the Common Plan. Neither the Common Plan nor this
Agreement nor any action taken or omitted to be taken hereunder or thereunder shall be deemed to
create or confer on the Participant any right to be retained in the employ of the Company or any
Subsidiary or other Affiliate thereof, or to interfere with or to limit in any way the right of the
Company or any Subsidiary or other Affiliate thereof to terminate the employment of the Participant
at any time.

     (b) Tax Withholding. The Company and its Subsidiaries shall have the right to require the
Participant to remit to the Company, prior to the delivery of any certificates evidencing shares of
Common Stock pursuant to an Option, any amount sufficient to satisfy any Federal, state or local
tax withholding requirements. Prior to the Company’s determination of such withholding liability,
the Participant may make an irrevocable election to satisfy, in whole or in part, such obligation
to remit taxes by directing the Company to withhold shares of Common Stock that would otherwise be
received by the Participant. Such

5

 

election may be denied by the Committee in its discretion, or may be made subject to certain
conditions specified by the Committee, including, without limitation, condition intended to avoid
the imposition of liability against the Participant under Section 16(b) of the 1934 Act. The
Company and its Subsidiaries shall also have the right to deduct from all cash payments made
pursuant to the Common Plan or this Agreement any Federal, state or local taxes required to be
withheld with respect to such payments.

     (c) No Restriction on Right of Company to Effect Corporate Changes. Neither the Common Plan
nor this Agreement shall affect in any way the right or power of the Company or its stockholders to
make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the capital structure or business of the Company, or any merger or consolidation of the Company, or
any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures,
preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the
rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution
or liquidation of the Company, or any sale or transfer of all or any part of the assets or business
of the Company, or any other corporate act or proceeding, whether of a similar character or
otherwise.

     (d) 1934 Act. Notwithstanding anything contained in the Common Plan or this Agreement to the
contrary, if the consummation of any transaction under the Common Plan or this Agreement would
result in the possible imposition of liability to the Participant pursuant to Section 16(b) of the
1934 Act, the Committee shall have the right, in its sole discretion, but shall not be obligated,
to defer such transaction to the extent necessary to avoid such liability, but in no event for a
period in excess of 180 days.

     SECTION 7. Survival; Assignment.

     (a) All agreements, representations and warranties made herein and in any certificates
delivered pursuant hereto shall survive the issuance to the Participant of the Options and the
Option Shares and, notwithstanding any investigation heretofore or hereafter made by the
Participant or the Company or on the Participant’s or the Company’s behalf, shall continue in full
force and effect. Without the prior written consent of the Company, the Participant may not assign
any of his rights hereunder except by will or the laws of descent and distribution. Whenever in
this Agreement any of the parties hereto is referred to, such reference shall be deemed to include
the heirs and permitted successors and assigns of such party; and all agreements herein by or on
behalf of the Company, or by or on behalf of the Participant, shall bind and inure to the benefit
of the heirs and permitted successors and

6

 

assigns of such parties hereto. The Participant agrees to cause any future spouse of his or hers
to deliver to the Company a consent in the form of the consent set forth at the foot hereof validly
executed by such spouse promptly after any such spouse becomes his or her spouse.

     (b) The Company shall have the right to assign to any of its Affiliates any of its rights, or
to delegate to any of its Affiliates any of its obligations, under this Agreement.

     SECTION 8. Certain Remedies. Without intending to limit the remedies available to the
Company, the Participant agrees that damages at law will be an insufficient remedy in the event the
Participant violates the terms of this Agreement. The Participant agrees that the Company may
apply for and have injunctive or other equitable relief in any court of competent jurisdiction to
restrain the breach or threatened breach of, or otherwise specifically to enforce, any of the
provisions hereof.

     SECTION 9. Notices. All notices and other communications provided for herein shall be in
writing and shall be delivered by hand or sent by certified or registered mail, return receipt
requested, postage prepaid, addressed, if to the Participant, to his attention at the mailing
address set forth at the foot of this Agreement (or to such other address as the Participant shall
have specified to the Company in writing) and, if to the Company, to it at 100 Winners Circle,
Suite 300, Brentwood, Tennessee 37027, Telecopy No.: (615) 377-0348, Attention: Patrick W.
Kellick, Senior Vice President, Chief Financial Officer and Secretary, with a copy to Metalmark
Capital LLC, 1177 Avenue of the Americas, 40th Floor, New York, New York 10036,
Telecopy No.: (212) 823-1917, Attention: Eric Fry. All such notices shall be conclusively deemed
to be received and shall be effective, if sent by hand delivery, upon receipt, or if sent by
registered or certified mail, on the fifth day after the day on which such notice is mailed.

     SECTION 10. Waiver. The waiver by either party of compliance with any provision of this
Agreement by the other party shall not operate or be construed as a waiver of any other provision
of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

     SECTION 11. Beneficiary Designation. The Participant may designate a Beneficiary or
Beneficiaries to receive payments pursuant to this Agreement upon the Participant’s death.
Beneficiaries may be designated only by a written election with the Committee in a form
satisfactory to the Committee, executed by the Participant. A Participant shall have the right to
change the designated Beneficiaries from time to time by filing a new election form complying with
the requirements of this Section 11 with the Committee. If no Beneficiary is so designated by the
Participant or if no Beneficiary is living at the time a payment is due under this Agreement,
payments shall be made to the estate of the Participant.

7

 

SECTION 12. Entire Agreement; Governing Law. This Agreement and the other related agreements
expressly referred to herein set forth the entire agreement and understanding between the parties
hereto and supersede all prior agreements and understandings relating to the subject matter hereof.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same agreement. The
headings of sections and subsections herein are included solely for convenience of reference and
shall not affect the meaning of any of the provisions of this Agreement. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
officer and the Participant has executed this Agreement, both as of the day and year first above
written.

	 	 	 	 	 
	 	

ACG HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Stephen M. Dyott 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	PARTICIPANT:

 	 
	 	By:  	 	 
	 	 	[                      ] 	 
	 	 	 	 
	 

	 	 	 
	Number of Options:

	 	[            ]
	 
	 	 
	Option Price:

	 	$[            ]
	 
	 	 
	Date of Grant:

	 	[                      ]

8

 

Consent of Spouse

     The undersigned, as the spouse of the Participant who is the signatory to the foregoing
Agreement, (a) hereby consents to, confirms and ratifies any sale or transfer by such Participant
of any Options or Option Shares contemplated by the foregoing Agreement and for purposes of any
community property laws and all other laws conveys all of his or her right, title and interest in
and to such Options or Option Shares to the purchaser or transferee of such Options or Option
Shares, and (b) agrees to be bound by all of the Participant’s obligations under the foregoing
Agreement.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:exv10w11

 

Exhibit 10.11

AMENDED AND RESTATED AMERICAN COLOR GRAPHICS, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Amended and Restated Effective as of July 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	ELIGIBILITY
	 	 	1	 
	1.1 In General
	 	 	1	 
	1.2 Participants
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	RETIREMENT BENEFITS
	 	 	2	 
	2.1 Vested Retirement Benefit
	 	 	2	 
	2.2 Vesting of Retirement Benefit
	 	 	3	 
	2.3 Lump Sum Payment Election
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	SURVIVOR BENEFITS
	 	 	5	 
	3.1 Post-Retirement Survivor Benefit
	 	 	5	 
	3.2 Pre-Retirement Survivor Benefit
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	CONDITIONS RELATED TO BENEFITS
	 	 	6	 
	4.1 Administration of Plan
	 	 	6	 
	4.2 Grantor Trust
	 	 	7	 
	4.3 No Right to Company Assets
	 	 	7	 
	4.4 No Employment Rights
	 	 	7	 
	4.5 Company’s Rights to Terminate and Amend
	 	 	8	 
	4.6 Protective Provisions
	 	 	8	 
	4.7 No Right of Offset
	 	 	8	 
	4.8 No Third Party Rights
	 	 	8	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	9	 
	5.1 Nonassignability
	 	 	9	 
	5.2
Withholding
	 	 	9	 
	5.3 Gender and Number
	 	 	10	 
	5.4 Notice
	 	 	10	 
	5.5 Validity
	 	 	10	 
	5.6 Non-Uniform Determinations
	 	 	10	 

i

 

	 	 	 	 	 
	 	 	Page
	5.7 Enforceability
	 	 	10	 
	5.8 Applicable Law
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	11	 

ii

 

AMENDED AND RESTATED AMERICAN COLOR GRAPHICS, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     The purpose of this Supplemental Executive Retirement Plan (the “Plan”) is to provide a
further means whereby American Color Graphics, Inc. and its successors (the “Company”) may
attract, retain and encourage the productive efforts of a key group of officers and senior
executives who render valuable services to the Company and its subsidiaries, constituting an
important contribution toward the Company’s continued growth and success. The Plan provides
lifetime or lump sum pension benefits to participants who qualify for such benefits (generally
described in Article II) and may also provide benefits to a surviving named beneficiary following
a qualifying participant’s death (generally described in Article III).

     Capitalized terms used within Articles I through V of the Plan without definition have the
meanings specified in Article VI.

     The Plan is hereby amended and restated effective as of July 1, 2005 to read as follows:

ARTICLE I

ELIGIBILITY

     1.1 In General. The Committee shall have the power to designate from time to time
those officers and senior executives of the Company or any of its subsidiaries

1

 

who may participate as a Participant in the Plan. Any such designation shall stipulate the
effective date of such Participant’s participation in the Plan and whether such Participant
shall be a Section I , Section II, Section III or Section IV Participant and such Participant’s
name shall be added to the appropriate section of Schedule A.

     1.2 Participants. The individuals listed on Schedule A are designated as
Participants effective as of the dates indicated.

ARTICLE II

RETIREMENT BENEFITS

     2.1 Vested Retirement Benefit.

     a) If a Participant’s employment with the Company or its subsidiaries terminates on or after
his Vesting Date the Company will pay the Participant a Retirement Benefit.

     b) Unless the vested Participant has made the lump sum payment election described in Section
2.3, the vested Retirement Benefit will be paid as a monthly benefit (the “Monthly Benefit”),
starting on the first of the month after the later of (i) the date his employment terminates and
(ii) his Normal Retirement Date, and ending with the payment for the month in which his death
occurs.

     c) With respect to each Participant, the Monthly Benefit shall be in an amount equal to the amount
specified in Schedule A.

2

 

     2.2 Vesting of Retirement Benefit.

     a) Subject to paragraph (b) below, a Participant shall vest and become entitled to a
nonforfeitable interest in his Retirement Benefit as of the date (the “Vesting Date”) coincident
with the earliest to occur of (i) the fifth anniversary of his Participation Date, (ii) a Change
of Control, or (iii) the termination of the Participant’s employment with the Company or its
subsidiaries (x) by the Company (or its subsidiary) without Cause, (y) as a result of death or
Disability or (z) by the Participant for “Good Reason” (as defined in the applicable employment
agreement between the Participant and the Company or its subsidiary) if, and only in the event
that, the Participant is party to an employment agreement with the Company or its subsidiary
which enables the Participant to quit with “Good Reason”.

     b) A Participant shall not be entitled to a Retirement Benefit if, prior to the Vesting Date, his
employment with the Company or its subsidiaries is terminated (i) by the Company (or its
subsidiary) for Cause or (ii) by the Participant for any reason.

     2.3 Lump Sum Payment Election.

     A Participant may elect to receive his Retirement Benefit in a lump sum cash payment rather
than in the form of the Monthly Benefit described in Section 2.1. Such election will provide for
the lump sum payment to be made as of either (i) the six month anniversary of the Participant’s

3

 

termination of employment with the Company or its subsidiaries or (ii) the later of the
date of his termination of employment with the Company or its subsidiaries and his Normal
Retirement Date (each a “Lump Sum Payment Date”); provided that in the event the
Participant has elected to have the payment made as described in clause (i), the Retirement
Benefit shall nevertheless be paid as of the Lump Sum Payment Date described in clause (ii) if
the Participant becomes an employee of, or consultant to, or otherwise provides services for the
benefit of, any Competing Business prior to the sixth month anniversary of the termination of
the Participant’s employment with the Company or its subsidiaries.

     a) If the Participant elects to receive his Retirement Benefit in the form of a lump sum,
the amount of such lump sum payment shall be the actuarial equivalent of the Monthly Benefit
otherwise payable to the Participant pursuant to Section 2.1, determined as of the Lump Sum
Payment Date by the Committee in good faith upon the advice of an actuary based upon reasonable
interest rate, mortality and other applicable actuarial assumptions.

     b) Either of the lump sum elections described in this Section 2.3 will be effective only with
respect to Participants who are not in pay status as of July 1, 2005 and only if made prior to the
later to occur of (i) thirty (30) days after the effective date of such Participant’s

4

 

participation in the Plan and (ii) November 30, 2005.

     c) Any Participant who has at least ten (10) years of service with the Company as of December
31, 2004 may elect to receive his or her vested Retirement Benefit in a lump sum payment at any
time in 2005 upon written notification to the Company delivered no later than November 30, 2005.
The Participant’s participation in the Plan shall terminate for all purposes upon receipt of such
lump sum payment.

ARTICLE III

SURVIVOR BENEFITS

     3.1 Post-Retirement Survivor Benefit. If a Participant dies after payment of his
Monthly Benefit under Section 2.1 has started and before he has received at least 120 Monthly
Payments, the Company shall pay the Monthly Benefit to the Participant’s Beneficiary, if any,
starting on the first of the month immediately following the month in which the Participant dies
and continuing until the sum of the monthly payments made under the Plan to the Participant and his
Beneficiary equals one hundred twenty (120).

     3.2 Pre-Retirement Survivor Benefit. Notwithstanding anything herein to the contrary,
if a Participant dies (i) while employed by the Company or its subsidiaries or (ii) after leaving
the employ of the Company or its subsidiaries with vested rights under Section 2.2, in

5

 

either case prior to receiving payment of his Retirement Benefit, the Company shall pay the
Participant’s Retirement Benefit to the Participant’s beneficiary in an actuarially equivalent lump
sum cash payment as of the last day of the month in which such death occurs, calculated in a manner
consistent with that set forth in Section 2.3(b) above.

ARTICLE IV

CONDITIONS RELATED TO BENEFITS

     4.1 Administration of Plan. The Committee shall administer the Plan and shall have
the sole and exclusive authority to interpret, construe and apply its provisions. The Committee
shall have the power to establish, adopt and revise such procedures, rules and regulations as it
may deem necessary or advisable for the administration of the Plan, and the operation of the
Committee’s activities shall be by vote or written consent of the majority of its members and
shall be final and binding. Members of the Committee shall be eligible to participate in the Plan
while serving on the Committee, but a member of the Committee shall not vote or act upon any
matter which relates solely to such member in his capacity as a Participant.

     4.2 Grantor Trust. The Company may, but shall not be obligated to, create a grantor
trust (within the meaning of Code section 671) in connection with the adoption of this Plan to
which it may from time to time contribute amounts to accumulate a reserve against its
obligations hereunder.

6

 

Notwithstanding the creation of such trust, the benefits hereunder shall be a general
obligation of the Company. Payment of benefits from such trust shall, to that extent, discharge
the Company’s obligations under this Plan. A Participant shall have only a contractual right as
a general creditor of the Company to the amounts, if any, payable hereunder and such right shall
not be secured by any assets of the Company or the trust.

     4.3 No Right to Company Assets. Neither a Participant nor any other person shall
acquire by reason of the Plan any right in or title to any assets, funds or property of the
Company whatsoever (other than the rights of an general unsecured creditor of the Company)
including, without limiting the generality of the foregoing, any specific funds or assets which
the Company may set aside in anticipation of a liability hereunder, nor in or to any policy or
policies or insurance on the life of a Participant owned by the Company.

     4.4 No Employment Rights. Nothing herein shall constitute a contract of continuing
employment or in any manner obligate the Company or any subsidiary to continue the service of a
Participant, or obligate a Participant to continue in the service of the Company or any
subsidiary, and nothing herein shall be construed as fixing or regulating the compensation paid
to a Participant.

7

 

     4.5 Company’s Rights to Terminate and Amend. The Company reserves the right in its
sole discretion at any time to amend the Plan in any respect or terminate the Plan by written
action of the Board; provided that no such amendment or termination shall adversely
affect the right of any Participant to vest in, and receive payment of, the Retirement Benefit
in accordance with the provisions of the Plan without such Participant’s prior written consent.

     4.6 Protective Provisions. The Participant shall cooperate with the Company by
furnishing any and all information requested by the Company in order to facilitate the payment of
benefits hereunder.

     4.7 No Right of Offset. If at any time any payment is to be made hereunder, a
Participant is indebted to the Company or otherwise subject to a monetary claim by the Company,
the payments remaining to be paid on behalf of the Participant shall nevertheless be paid without
reduction by or setoff against the amount of such indebtedness or claim.

     4.8 No Third Party Rights. Nothing in this Plan or any trust established pursuant to
Section 4.2 hereof shall be construed to create any rights hereunder in favor any Beneficiary prior
to the Participant’s death or in favor of any other person (other than the Company and any
Participant) or to limit the Company’s right to amend or terminate the Plan in any manner subject
to the consent of the Participant to the extent provided in Section 4.5 notwithstanding that such

8

 

amendment or termination might result in such person receiving no benefits under the Plan.

ARTICLE V

MISCELLANEOUS

     5.1 Nonassignability. No rights or payments under this Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge,
whether voluntary or involuntary, and no attempt so to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge the same shall be valid, nor shall any such benefit or payment
be in any way liable for or subject to the debts, contracts, liabilities, engagements or torts of
any person entitled to such benefit or payment or subject to levy, garnishment, attachment,
execution or other legal or equitable process. 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.

     5.2 Withholding. To the extent required by law the Company shall be entitled to
withhold from any payments due hereunder any federal, state and local taxes required to be
withheld in connection with such payment.

9

 

     5.3 Gender and Number. Wherever appropriate herein, the masculine shall mean the
feminine and the singular shall mean the plural or vice versa.

     5.4 Notice. Any notice required or permitted to be made under the Plan shall be
sufficient if in writing and hand delivered, or sent by registered or certified mail, to (a) in
the case of notice to the Company or the Committee, the principal office of the Company, directed
to the attention of the Secretary of the Committee, and (b) in the case of a Participant or the
Participant’s Beneficiary, the Participant’s (or such Beneficiary’s) mailing address maintained in
the Company’s personnel records. Such notice shall be deemed given as of the date of delivery or,
if delivery is made by mail, as of the date shown on the post-mark or on the receipt for
registration or certification.

     5.5 Validity. In the event any provision of this Plan is held invalid, void or
unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other
provision of this Plan.

     5.6 Non-Uniform Determinations. The Committee’s determinations under the Plan need
not be uniform and may be made by it selectively among persons who receive, or are eligible to
receive benefits under the Plan (whether or not such persons are similarly situated).

     5.7 Enforceability. It is expressly understood and agreed that although the Company
considers the

10

 

restrictions contained in the proviso to Section 2.3(a) to be reasonable, if a final
judicial determination is made by a court of competent jurisdiction that the time or territory
or any other restriction contained therein is an unenforceable restriction against a
Participant, the provisions of such Section shall not be rendered void but shall be deemed
amended to apply as to such maximum time and territory and to such maximum extent as such court
may judicially determine or indicate to be enforceable. Alternatively, if any court of competent
jurisdiction finds that any restriction contained in the proviso to Section 2.3(a) is
unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding
shall not affect the enforceability of any other provisions contained herein.

     5.8 Applicable Law. This Plan shall be governed and construed in accordance with
the laws of the State of New York.

ARTICLE VI

DEFINITIONS

     The following terms used in this Plan shall have the designated meaning, unless a
different meaning is required by the context.

     “Beneficiary” shall mean the person or persons named by a Participant as a
beneficiary under the Plan in accordance with procedures determined by the Committee, but

11

 

only if such person or persons survive the Participant. If no beneficiary has been named by
the Participant, such Participant’s Beneficiary shall be his spouse or, if none, his estate.

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

     “Cause” shall mean “Cause” as defined in any employment agreement between the
Participant and the Company or its subsidiaries, or if there is no such agreement or if such term
is not defined (i) any act of omission that constitutes a material breach by the Participant of any
of his obligations to the Company or its subsidiaries; (ii) the continued failure or refusal of the
Participant to substantially perform the duties reasonably required of him as an employee of the
Company or its subsidiaries; (iii) any willful and material violation by the Participant of any
Federal or state law or regulation applicable to the business of the Company or its subsidiaries,
or the Participant’s conviction of a felony, or any willful perpetration by the Participant of a
common law fraud; or (iv) any other willful misconduct by the Participant which is materially
injurious to the financial condition or business reputation of, or is otherwise materially
injurious to, the Company or any of its subsidiaries or affiliates (it being understood that the
good faith performance by the Participant of the duties required of him by the Company

12

 

shall not constitute “misconduct” for purposes of clause (iv)).

     “Change of Control” shall mean (a) any transaction or series of transactions (other than an
initial public offering of the Company’s equity securities) the result of which during the
Participant’s period of employment with the Company or its subsidiaries, any “person” or “group”
(within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) other
than the Company or ACG Holdings, Inc. (the “Parent”) or any person who on April 1, 1994
was the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or
indirectly, of securities of the Company or Parent representing 5% of the voting power of the
Company’s or Parent’s then outstanding securities (each a “Related Party”), becomes the
“beneficial owner”, directly or indirectly, of securities of the Company or Parent representing
30% of the voting power of the Company’s or Parent’s then outstanding securities; (b) if, during
the Participant’s period of employment with the Company or its subsidiaries, individuals who at
the beginning of such period constituted the Board or the Board of Directors of Parent (together
with any new director whose nomination for election by the Company’s or the Parent’s
stockholders, as the case may be, was approved by a vote of at least two thirds of the directors
then still in office who either were

13

 

directors at the beginning of such period or whose nomination for election was previously
so approved) cease for any reason other than death, disability or retirement to constitute at
least a majority thereof; (c) any merger involving the Company or the Parent, whether or not the
Company or the Parent, as the case may be, is the survivor or (d) any sale of all or
substantially all of the assets of the Company or the Parent to any person or entity, other than
a Related Party; provided that acquisition of a controlling interest in the Company by
an ESOP and/or a group of senior executives of the Company shall not constitute a Change of
Control for purposes of the Plan.

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

     “Committee” shall mean the Compensation Committee of the Board or such other
committee designated by the Board.

     “Company” shall have the meaning specified in the recital.

     “Competing Business” shall mean any line of business that is substantially the same
as any line of any operating business engaged in or conducted by the Company or any subsidiary
and which is conducted in any geographical area in which the Company or its subsidiaries
conducts its business and which, when the Participant’s employment terminates, the Company (or
its subsidiary) was engaged in or conducting, or had, to the knowledge of the Participant,

14

 

definitively planned to engage in or conduct.

     “Disability” shall mean a Participant’s becoming physically or mentally incapacitated to
the extent that he is unable for a period of six (6) consecutive months or for an aggregate of nine
(9) months in any twenty-four (24)consecutive month period to perform his duties to the Company.

     “Lump Sum Payment Date” shall have the meaning specified in Section 2.3.

     “Monthly Benefit” shall have the meaning specified in Section 2.1.

     “Normal Retirement Date” shall mean the date on which the Participant attains age
sixty-five (65).

     “Participant” shall mean an individual who has been designated as a Participant
pursuant to Article I.

     “Participation Date” shall mean, with respect to any Participant, the effective
date of his participation in the Plan.

     “Retirement Benefit” shall mean the retirement benefit payable to a Participant in
the form of a Monthly Benefit pursuant to Section 2.1 or in a lump sum pursuant to Section 2.3.

     “Section I Participant” shall mean a Participant listed in Section I of Schedule A
or any individual subsequently designated as a Section I Participant by the Committee pursuant
to Section 1.1.

15

 

     “Section II Participant” shall mean a Participant listed in Section II of Schedule
A or any individual subsequently designated as a Section II Participant by the Committee
pursuant to Section 1.1.

     “Section III Participant” shall mean a Participant listed in Section III of
Schedule A or any individual subsequently designated as a Section III Participant by the
Committee pursuant to Section 1.1.

     “Section IV Participant” shall mean a Participant listed in Section IV of Schedule
A or any individual subsequently designated as a Section IV Participant by the Committee pursuant
to Section 1.1.

     “Vesting Date” shall have the meaning specified in Section 2.2.

16

 

     IN WITNESS WHEREOF, the Company has caused this AMENDED AND RESTATED AMERICAN COLOR
GRAPHICS, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN to be executed by its duly authorized
officers and its corporate seal to be hereunto affixed on this 1st day of July, 2005.

	 	 	 	 	 
	 	 	AMERICAN COLOR GRAPHICS, INC.
	 
	 	 	 	 
	 

	 	BY
	 	          /s/ Stephen M. Dyott
	 

	 	 	 	 
	 

	 	 	 	Stephen M. Dyott, CEO

	 	 	 
	Attest:
	 	 
	 
	 	 
	          /s/ Patrick W. Kellick
	 	 
	 

Patrick W. Kellick

	 	 
	SVP/CFO & Assistant Secretary
	 	 

17

 

SCHEDULE A

Plan Participants as of                     

Vesting

Date

Section I Participants: (Monthly Benefit of $8,333.33)

Section II Participants: (Monthly Benefit of $6,250.00)

Section III Participants: (Monthly Benefit of $4,166.67)

Section IV Participants: (Monthly Benefit of $2,083.33)

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]