Document:

Exhibit
10-g

 

TEMPLATE

 

PHANTOM
STOCK AGREEMENT FOR

EMPLOYEES
UNDER THE CINERGY CORP.

 

1996
LONG-TERM INCENTIVE COMPENSATION PLAN

 

THIS PHANTOM STOCK
AGREEMENT (the “Agreement”), effective as of                               
(the “Date of Grant”), is made by and between Cinergy Corp., a Delaware
corporation, and                               
(the “Employee”), an employee of Cinergy Corp. or one of its directly or
indirectly held majority or greater-owned subsidiaries (collectively referred
to herein as the “Company”).

 

WHEREAS, Cinergy Corp.
has adopted the Cinergy Corp. 1996 Long-Term Incentive Compensation Plan, as
amended from time to time (the “Plan”), pursuant to which the Employee has been
granted the right, contingent upon the Employee satisfying certain vesting
requirements, to receive a lump sum cash payment, the amount of which shall be
based on the value of a certain, predetermined number of shares of Cinergy
Corp. Common Stock, with par value of $0.01 per share (“Common Stock”), on the
terms set forth in this Agreement; and

 

WHEREAS, the
parties desire to enter into this Agreement to set forth their understandings
with respect to the contingent right described in this Agreement, such
contingent right sometimes referred to herein as “Phantom Stock Right.”

 

NOW, THEREFORE, in
consideration of the recitals and the mutual agreements contained in this
Agreement, the parties agree as follows:

 

1.                                      Contingent Award.

 

(a)                                  Award of Phantom Stock Right. In
consideration of Employee’s service for the Company, Cinergy Corp. hereby
grants a Phantom Stock Right to Employee and shall establish an account (the “Account”)
in the name of Employee on the books and records of Cinergy Corp. and credit
the Account with               
Phantom Stock Right units.  Each Phantom Stock Right unit shall correspond
to one share of Common Stock.

 

(b)                                 Vesting of Phantom Stock Right. Subject
to earlier forfeiture as described below, the Phantom Stock Right shall become
fully vested in its entirety if the Employee is continuously employed by the
Company from the Date of Grant until the earliest to occur of the following
dates (i)                               ,
(ii) the date of the Employee’s death, (iii) the date of the Employee’s
involuntary “separation from service” (within the meaning of Code Section 409A)
other than for Cause during the two-year period beginning on the Cinergy
Effective Time or (iv) the date of the Employee’s voluntary “separation
from service” (within the meaning of Code Section 409A) for Good Reason
during the two-year period beginning on the Cinergy Effective Time.  For purposes of this Agreement, “Cinergy
Effective Time” has the meaning given to such term in the Agreement and Plan of
Merger by and among Duke Energy Corporation, Cinergy Corp., Deer Holding Corp.,
Deer Acquisition Corp. and Cougar Acquisition Corp., dated May 8, 2005.(1)

 

(1)          The
vesting events for phantom stock grants vary for each participant.  Some phantom stock grants incorporate cliff
vesting schedules while others use a graded vesting schedule.  The phantom stock grants may incorporate some
or all of the items set forth in Section 1(b).

 

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(c)                                  Forfeiture of Phantom Stock Right. 
The Employee shall forfeit his or her Phantom Stock Right in its entirety if he
or she ceases to remain continuously employed by the Company until the date on
which the Phantom Stock Right vests in accordance with Section 1(b) hereof.

 

(d)                                 Definitions.  Where used herein,
the terms “Cause” and “Good Reason” shall have the meaning given to such terms
in the most recent employment agreement, as amended, in effect for the
Employee.

 

2.                                      Payout Calculation and Form of Payment.

 

Except as otherwise
provided herein, in the event that Phantom Stock Right units become fully vested
in accordance with Section 1(b), the Employee shall be entitled to receive
a lump sum cash payment equal to the sum of (a) the product of (i) the
number of Phantom Stock Right units vesting, adjusted as provided in this
Agreement, and (ii) the Fair Market Value (as that term is defined in the
Plan) of a share of Common Stock as of the date the Phantom Stock Right units
vest, plus (b) the product of (i) the number of Phantom Stock Right
units vesting and (ii) the aggregate amount of cash dividends paid on a
share of Common Stock from the Date of Grant through the date of payment. 
Such payment shall be made within thirty (30) days following the date on which
the Phantom Stock Right units become vested.  The Company shall have the
right to deduct from all payments made to the Employee pursuant to this
Agreement such federal, state or local taxes as are, in the reasonable opinion
of the Company, required to be withheld by the Company with respect to such
payment.  Notwithstanding the above, if
required to comply with Code Section 409A, such payment shall not be made
until five (5) days following the 6th month anniversary of the
Employee’s separation from service if the Employee is a “specified employee”
within the meaning of Code Section 409A.

 

3.                                      Adjustments.

 

The Committee (as defined
in the Plan) may make or provide for such adjustments in the number of Phantom
Stock Right units covered by this Agreement as the Committee, in its sole
discretion exercised in good faith, may determine is equitably required in
order to prevent dilution or enlargement of Employee’s rights that otherwise
would result from (i) any stock dividend, stock split, combination of
shares, recapitalization, or other change in the capital structure of Cinergy
Corp., (ii) any merger, consolidation, spin-off, split-off, spin-out,
split-up, reorganization, partial or complete liquidation, or other
distribution of assets or issuance of rights or warrants to purchase
securities, or (iii) any other corporate transaction or event having an
effect similar to any of the foregoing.  In the event of any such
transaction or event, the Committee, in its sole discretion exercised in good
faith, may provide, in substitution for the Phantom Stock Right, such
alternative consideration as it may determine to be equitable in the
circumstances and may require in connection therewith the surrender of the
Phantom Stock Right.

 

4.                                      Transferability.

 

The contingent rights set
forth in this Agreement are not transferable otherwise than by will or the laws
of descent and distribution.

 

5.                                      Effect of
Assignment or Pledge.

 

If the Employee assigns
or pledges contingent rights covered by this Agreement or attempts to do so, or
if there is a levy, attachment, execution or other legal or equitable process
upon the contingent rights, Cinergy Corp. shall have the right to terminate
this Agreement.

 

6.                                      Incorporation
of the Plan’s Terms.

 

This Agreement is subject
to all of the terms, provisions and conditions of the Plan, which is

 

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incorporated into this
Agreement by reference, and to such regulations as may from time to time be
adopted by the Committee.  A copy of the Plan has been furnished to the
Employee and an additional copy may be obtained from Cinergy Corp.  In the
event of any conflict between the provisions of the Plan and the provisions of
this Agreement, the terms, conditions and provisions of the Plan shall control,
and this Agreement shall be deemed to be modified accordingly.  The
Committee shall have final authority to interpret and construe the Plan and
this Agreement and to make any and all determinations thereunder, and its
decision shall be binding and conclusive upon the Employee and his or her legal
representative in respect of any questions arising under the Plan, or this
Agreement.

 

7.                                      No Right to
Continued Employment.

 

Solely for purposes of
this Agreement, Employee shall be deemed to be employed by the Company during
all periods in which he or she is receiving benefits under any
Cinergy-sponsored short-term or long-term disability plan or program; provided,
however, that nothing in this Agreement shall restrict the right of the Company
to terminate the Employee’s employment at any time with or without Cause.

 

8.                                      Successors.

 

The terms of this
Agreement shall be binding upon and inure to the benefit of Cinergy Corp., its
successors and assigns, and the Employee and the Employee’s beneficiaries,
executors, administrators, heirs and successors.

 

9.                                      Invalid
Provision.

 

The invalidity or
unenforceability of any particular provision of this Agreement shall not affect
the other provisions of this Agreement, and this Agreement shall be construed
in all respects as if such invalid or unenforceable provision has been omitted.

 

10.                               Modifications and Section 409A
of the Code.

 

No change, modification
or waiver of any provision of this Agreement shall be valid unless the same be
in writing and signed by the parties.  To
the extent applicable, it is intended that this Agreement and
the Plan comply with the provisions of Section 409A of the Code,
including the provisions requiring a delay in payment.  This Agreement and the Plan shall be
administered in a manner consistent with this intent, and
any provision that would cause the Agreement or the Plan to fail to
satisfy Section 409A of the Code shall have no force and effect until
amended to comply with Section 409A of the Code (which amendment may be
retroactive to the extent permitted by Section 409A of the Code and may be
made by the Company without the consent of the Employee).

 

11.                               Headings.

 

The headings of the
Sections of this Agreement are provided for convenience only and are not to
serve as a basis for interpretation or construction, and shall not constitute a
part of this Agreement.

 

12.                               Governing Law.

 

Except to the extent
pre-empted by federal law, this Agreement and the Employee’s rights under it
shall be construed and determined in accordance with the laws of the state of
Delaware.

 

13.                               Entire Agreement.

 

This Agreement and the
Plan contain the entire agreement and understanding of the parties with respect
to the subject matter contained in this Agreement, and supersede all prior
communications,

 

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representations and
negotiations in respect thereto.

 

14.                               Counterparts.

 

This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

 

15.                               Satisfaction of Legal
Requirements.

 

No payment will be made
under this Agreement until the Company has been advised by counsel that all
applicable legal requirements have been met.

 

16.                             Source of Payment.

 

Any payments to Employee
under this Agreement shall be paid from the Company’s general assets, and
Employee shall have the status of a general unsecured creditor with respect to
the Company’s obligations to make payments under this Agreement.  Employee
acknowledges that the Company shall have no obligation to set aside any assets
to fund its obligations under this Agreement.

 

17.                               Notices and
Electronic Delivery and Signature.

 

All notices to the
Company shall be addressed to Cinergy Corp., 139 East Fourth Street,
Cincinnati, Ohio 45202, Attention: Manager, Compensation, or such other address
or in accordance with such other procedure as the Company may, from time to
time, specify. Notwithstanding the foregoing, the Employee hereby consents
and agrees to electronic delivery of any Plan documents, proxy materials,
annual reports and other related documents, including all materials required to
be distributed pursuant to applicable securities laws.  If the Company
establishes procedures for an electronic signature system for delivery and
acceptance of Plan documents (including documents relating to any programs
adopted under the Plan), the Employee hereby consents to such procedures and
agrees that his or her electronic signature is the same as, and shall have the
same force and effect as, his or her manual signature.  The Employee
consents and agrees that any such procedures and delivery may be effected by a
third party engaged by the Company to provide administrative services related
to the Plan, including any program adopted under the Plan.  The Employee
understands that, unless earlier revoked by the Employee, this consent shall be
effective for the duration of the Agreement and that he or she shall have the
right at any time to request written copies of any and all materials referred
to above.

 

IN WITNESS WHEREOF, this
Agreement has been executed by the parties effective as of the date set forth
herein.

 

 

	
  EMPLOYEE

  	
  CINERGY CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
						

 

4Exhibit 10.1

 

RESTRICTED  STOCK 
UNIT  AWARD  CERTIFICATE

 

Non-transferable

 

GRANT TO

 

	
   

  	
   

  	
   

  
	
   

  	
  (“Grantee”)

  	
   

  

 

by Sabre Holdings Corporation (the “Company”) of

 

[             ]
restricted stock units

 

convertible
into shares of its Class A Common Stock, par value $0.01 per share (the “Units”).

 

Subject
to the terms and conditions set forth on the following pages (“Terms and
Conditions”).

 

[Alternative
#1] [The Units shall vest (become non-forfeitable) and convert to actual shares
of Stock on January 31, 2008, provided certain earnings targets to be
established by the Compensation Committee of the Board of Directors are
met.  If such earnings targets are not
met, the Units shall vest (become non-forfeitable) and convert to actual shares
of Stock on March 4, 2009, provided that Grantee is still employed by the
Company or one of its affiliates on such date.]

 

[Alternative
#2] [The Units shall vest (become non-forfeitable) and convert to actual shares
of stock in accordance with the schedule set forth in Paragraph 2 of the Terms
and Conditions.]

 

By signing below Grantee accepts and agrees to all of the Terms and Conditions
of the Units and also acknowledges receipt of a copy of the Restricted Stock
Unit Award Terms and Conditions.

 

IN WITNESS WHEREOF, Sabre Holdings Corporation has
caused this Certificate to be executed as of the Grant Date, as indicated
below.

 

 

	
   

  	
  SABRE
  HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  F. Brashear

  
	
   

  	
  Corporate
  Secretary

  
	
   

  	
   

  
	
   

  	
  Grant
  Date: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RECIPIENT

  
	
   

  	
   

  	
   

  
	
   

  	
  [               ]

  
	
   

  	
  Grantee

  
				

 

 

RESTRICTED STOCK UNIT AWARD

TERMS AND CONDITIONS

 

1.               Grant of Units. 
Sabre Holdings Corporation (the “Company”) hereby grants to the Grantee
named on page 1 hereof (“Grantee”), subject to the restrictions and the
terms and conditions set forth in this award certificate (this “Certificate”),
the number of restricted stock units indicated on page 1 hereof (the “Units”)
which represent the right to receive an equal number of shares of the Company’s
Class A Common Stock, par value $0.01 per share (“Stock”) on the terms set forth in this
Certificate.  Certain capitalized terms
used herein are defined in Paragraph 13 of this Certificate.

 

[Alternative #1] [2.                    Vesting of Units.  The
Units have been credited to a bookkeeping account on behalf of Grantee.  The Units will vest and become
non-forfeitable on the earliest to occur of the following (the “Vesting Date”):

 

(a)          January 31, 2008, provided that (i) 2007 EBITDA for the
combined lastminute.com and TEU units is equal to or greater than an EBITDA
target to be established by the Committee prior to or during the performance
period, and (ii) Grantee is still employed by the Company or one of
its affiliates on such date; or

 

(b)         March 4, 2009 provided that Grantee is still employed by
the Company or one of its affiliates on such date; or

 

(c)          a Change in Control of the Company, if the Units are not assumed by the
surviving company or equitably converted or substituted; or

 

(d)         the termination of Grantee’s employment from the Company or one of its
affiliates by the Company without Cause or by Grantee for Good Reason, in each
case within one year following a Change in Control of the Company; or

 

(e)          the termination of Grantee’s employment from the Company or one of its
affiliates due to death or Disability (as defined below).

 

If Grantee’s employment terminates prior to the
Vesting Date for any reason other than as described in (d) or (e) above,
Grantee shall forfeit all right, title and interest in and to the Units as of
the date of such termination and the Units will be reconveyed to the Company
without further consideration or any act or action by Grantee.

 

Notwithstanding the foregoing vesting schedule, the
Committee may in its sole discretion at any time determine that all or a
portion of the Units shall vest and become non-forfeitable and shall be
converted to actual shares of Stock as set forth in Paragraph 3 below.]

 

2

 

[Alternative #2]            [2.    Vesting of Units.  The Units have been credited to a bookkeeping
account on behalf of Grantee.  The Units
will vest and become non-forfeitable on the earliest to occur of the following
(the “Vesting Date”):

 

(a)   With respect to one-third of the Units, on
the date that the Company or one of its affiliates terminates Grantee’s employment
without Cause, if such date is on or prior to January 20, 2006;

 

(b)   With respect to two-thirds of the Units, on
the date that the Company or one of its affiliates terminates Grantee’s
employment without Cause, if such date is after January 20, 2006 and on or
prior to July 20, 2006;

 

(c)   On the date that the Company or one of its
affiliates terminates Grantee’s employment without Cause, if such date is after
July 20, 2006;

 

(d)   On January 20, 2007 if Grantee’s
employment terminates by reason of the expiration of the original fixed-term of
Grantee’s Employment Agreement dated              ,
2005;

 

(e)   January 31, 2008, provided that (i) 2007
EBITDA for the combined lastminute.com and TEU units is equal to or greater
than an EBITDA target to be established by the Committee prior to or during the
performance period, and (ii) Grantee is still employed by the
Company or one of its affiliates on such date; or

 

(f)    March 4, 2009 provided that
Grantee is still employed by the Company or one of its affiliates on such date;
or

 

(g)   a Change in Control of the Company, if the
Units are not assumed by the surviving company or equitably converted or substituted; or

 

(h)   the termination of Grantee’s employment from
the Company or one of its affiliates by the Company without Cause or by Grantee
for Good Reason, in each case within one year following a Change in Control of
the Company; or

 

(i)    the termination of Grantee’s employment from
the Company or one of its affiliates due to death or Disability (as defined below).

 

If
Grantee’s employment terminates prior to the Vesting Date for any reason other
than as described in (a), (b), (c), (d), (h) or (i) above, Grantee
shall forfeit all right, title and interest in and to the Units as of the date
of such termination and the Units will be reconveyed to the Company without
further consideration or any act or action by Grantee.

 

Notwithstanding
the foregoing vesting schedule, the Committee may in its sole discretion at any
time determine that all or a portion of the Units shall vest and become
non-forfeitable and shall be converted to actual shares of Stock as set forth
in Paragraph 3 below.]

 

[Alternative #3]            [2.    Vesting of Units.  The Units have been credited to a bookkeeping
account on behalf of Grantee.  The Units
will vest and become non-forfeitable on the earliest to occur of the following
(the “Vesting Date”):

 

3

 

(a)   On the date that the Company or one of its
affiliates terminates Grantee’s employment if (i) such termination is
without Cause and does not constitute a “Termination of Specific Cases” as
defined in Grantee’s Services Agreement with the Company or one of its
affiliates, (ii) the Company or one of its affiliates does not give
Grantee at least 12 months prior written notice of such termination, and (iii) such
termination occurs on or before December 31, 2008;

 

(b)   January 31, 2008, provided that (i) 2007
EBITDA for the combined lastminute.com and TEU units is equal to or greater
than an EBITDA target to be established by the Committee prior to or during the
performance period, and (ii) Grantee is still employed by the
Company or one of its affiliates on such date; or

 

(c)   March 4, 2009 provided that
Grantee is still employed by the Company or one of its affiliates on such date;
or

 

(d)   a Change in Control of the Company, if the
Units are not assumed by the surviving company or equitably converted or
substituted; or

 

(e)   the termination of Grantee’s employment from
the Company or one of its affiliates by the Company without Cause or by Grantee
for Good Reason, in each case within one year following a Change in Control of
the Company; or

 

(f)    the termination of Grantee’s employment from
the Company or one of its affiliates due to death or Disability (as defined below).

 

If
Grantee’s employment terminates prior to the Vesting Date for any reason other
than as described in (a), (e) or (f) above, Grantee shall forfeit all
right, title and interest in and to the Units as of the date of such
termination and the Units will be reconveyed to the Company without further
consideration or any act or action by Grantee.

 

Notwithstanding
the foregoing vesting schedule, the Committee may in its sole discretion at any
time determine that all or a portion of the Units shall vest and become
non-forfeitable and shall be converted to actual shares of Stock as set forth
in Paragraph 3 below.]

 

3.               Conversion to Stock. 
Unless the Units are forfeited prior to the Vesting Date as provided in
Paragraph 2 above, the Units will be converted to actual shares of Stock on the
Vesting Date.  Shares of Stock evidencing
the conversion of Units will be registered on the books of the Company in
Grantee’s name as of the Vesting Date and will be delivered to Grantee in
certificated or uncertificated form as soon as practical thereafter.

 

4.               Changes in Capital Structure.  In
the event of a corporate event or transaction involving the Company (including,
without limitation, any stock dividend, stock split, extraordinary cash
dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination

 

4

 

or exchange of shares), the
Committee may adjust the Units to preserve the benefits or potential benefits
of the Units.  Action by the Committee
may include: (i) adjustment of the number and kind of shares which may be
delivered upon conversion of the Units; (ii) adjustment of the measure to
be used to determine the amount of the benefit payable with respect to the
Units; and (iii) any other adjustments that the Committee determines to be
equitable.  In addition, the Committee
may, in its sole discretion, provide (i) that Units will be settled in
cash or cash equivalents rather than Stock, (ii) that Units will become
immediately vested, (iii) that Units will be assumed by another party to a
transaction or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that performance targets and performance
periods will be modified, or (iv) any combination of the foregoing.

 

5.               Restrictions on Transfer.  No
right or interest of Grantee in the Units may be pledged, hypothecated or
otherwise encumbered to or in favor of any party other than the Company or one
of its affiliates, or be subjected to any lien, obligation or liability of
Grantee to any other party other than the Company or one of its
affiliates.  Unvested Units are not
assignable or transferable by Grantee. 
Vested Units are not assignable or transferable by Grantee other than by
will or the laws of descent and distribution; but the Committee may permit
other transfers.

 

6.               Limitation of Rights.  The
Units do not confer to Grantee or Grantee’s beneficiary any rights of a
shareholder of the Company unless and until shares of Stock are in fact issued
to such person in connection with the Units. 
Dividends or dividend equivalents will not be paid with respect to the
Units.  Nothing in this Certificate shall
interfere with or limit in any way the right of the Company or one of its
affiliates to terminate Grantee’s employment at any time, nor confer upon
Grantee any right to continue in employment of the Company or any of its
affiliates.  In particular, if for any
reason Grantee ceases to be entitled to the Units in accordance with these
Terms and Conditions, Grantee will not be entitled to any compensation by
reference to the rights granted hereunder or for any benefits expected to be
received or any diminution in value.

 

7.               Payment of Taxes. 
The Company has the authority and the right to deduct or withhold, or
require the Grantee to remit to the Company, an amount sufficient to satisfy
federal, state, and local taxes (including the Grantee’s income tax and
employee national insurance obligations) required by law to be withheld or
which is otherwise payable with respect to any taxable event arising as a
result of the grant or conversion of the Units. 
Such requirement or payment may be satisfied, in whole or in part, at
the election of the Company, by withholding shares of Stock having a fair
market value on the date of withholding equal to the amount required to be
withheld for tax purposes, all in accordance with such procedures as the
Committee establishes.

 

8.               Committee. The Compensation Committee of the Board of
Directors (the “Committee”) shall have the authority to (i) interpret the
terms and provisions of the Certificate, and (ii) adopt, alter, and repeal
rules, guidelines and practices governing the Units as it shall, from time to
time, deem advisable. All decisions made by the Committee pursuant to the
provisions of the Certificate shall be made in the Committee’s sole discretion
and shall be final and binding on all persons, including the Company and the
Grantee.

 

9.               Amendment.  The Committee may amend,
modify or terminate this Certificate without approval of Grantee; provided,
however, that such amendment, modification or termination shall not, without
Grantee’s consent, reduce or diminish the value of this award determined as if
it had been fully vested (i.e., as if all restrictions on the Units hereunder
had expired) on the date of such amendment or termination.

 

5

 

10.         Successors.  This Certificate shall be
binding upon any successor of the Company, in accordance with the terms of this
Certificate.

 

11.         Severability.  If
any one or more of the provisions contained in this Certificate is deemed to be
invalid, illegal or unenforceable, the other provisions of this Certificate
will be construed and enforced as if the invalid, illegal or unenforceable
provision had never been included.

 

12.         Notice.  Notices and communications
under this Certificate must be in writing and either personally delivered or
sent by registered or certified mail, return receipt requested, postage
prepaid.  Notices to the Company must be
addressed to Sabre Holdings Corporation, 3150 Sabre Drive, Southlake, Texas, Attn: Secretary, or any other
address designated by the Company in a written notice to Grantee. Notices to
Grantee will be directed to the address of Grantee then currently on file with
the Company, or at any other address given by Grantee in a written notice to
the Company.

 

13.         Acknowledgement and Agreement of Grantee.  In
consideration of the grant of this award, Grantee hereby acknowledges and
agrees:

 

(a)          that the Company is under no obligation to grant any further awards to
Grantee in the future and shall not become under such an obligation because of
this award; and

 

(b)         the Company may hold and process both electronically and manually
personal data relating to Grantee for the purposes of administering the award
and may transfer such data outside the EEA and to other parties as considered
necessary or desirable for such purposes.

 

14.         Defined Terms.  For
purposes of this Certificate, the following words shall have the following
meanings:

 

(a)          “Cause” means, but is not limited to, any of the
following actions: theft, dishonesty or fraud, insubordination, persistent
inattention to duties or excessive absenteeism, violation of the Company’s Work
Principles, Business Ethics or other policies, or any applicable law. The
determination of whether Cause exists shall be made in the Company’s sole
discretion.

 

(b)         “Change in Control” means the happening of any of the following:

 

(i)             When any “Person” (as defined in Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended from time to time), directly or
indirectly, becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934, as amended from time to time) of
securities of the Company representing twenty-five percent (25%) or more of the
combined voting power of the Company’s then outstanding securities; or

 

(ii)          The individuals who, as of the Grant Date, constitute the Board of
Directors (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board of Directors; provided, however, that any individual
becoming a director subsequent to the Grant Date whose election, or nomination
for election by the Company’s shareholders, was approved by a vote of at least
a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual

 

6

 

whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board of Directors; 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 or
the acquisition of assets of another corporation (a “Business Combination”), in
each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the then outstanding share of stock of the Company
(the “Outstanding Company Stock”) and the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”) immediately
prior to such Business Combination beneficially own, directly or indirectly, more
than sixty percent (60%) of, respectively, the then Outstanding Company Stock
and the combined voting power of the then Outstanding Company Voting Securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Business Combination (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 throughout one or more subsidiaries), (B) no
Person (excluding any employee
benefit plan (or related trust) of the Company or such corporation resulting
from such Business Combination) beneficially owns, directly or indirectly,
twenty-five percent (25%) or more of respectively, the then Outstanding Company
Stock resulting from such Business Combination or the combined voting power of
the then Outstanding Company Voting Securities except to the extent that such
ownership existed prior to the Business Combination, and (C) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board of
Directors, providing for such Business Combination; or

 

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

 

(c)          “Disability” means a condition under which a participant either (i) is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve months, or (ii) is, by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months,
receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering employees of the Company.

 

(d)         “Good Reason” for termination of employment following a Change in
Control shall be deemed to exist if:

 

(i)             without the Grantee’s written consent, one or
more of the following events occurs at any time during the first twelve (12)
months after such Change in Control:  (1) 
the Grantee’s base salary rate
or annual incentive compensation target is reduced below that in effect
immediately prior to the Change in Control for any reason other than for Cause;
(2) the Grantee’s principal office is moved, without the Grantee’s
consent, to a location that is more than fifty (50) miles from its location
immediately

 

7

 

prior to the Change in
Control; (3) for any reason other than for Cause, the Grantee suffers a
significant adverse change in the nature or scope of the authorities, powers,
functions, responsibilities or duties attached to the position with the Company
which the Grantee held immediately prior to the Change in Control;  (4) a successor where applicable, does
not assume and agree to the terms of this Certificate; or (5) the Company
purports to terminate Grantee’s employment other than in accordance with a
Notice of Termination; and

 

(ii)          Grantee notifies the Company in writing (addressed in care of the
Chairman of the Board of Directors of the Company) of the occurrence of such event; and

 

(iii)       within thirty (30) days following receipt of such written notice, the
Company does not cure such event to the reasonable satisfaction of the Grantee and deliver to the Grantee a written
statement that it has done so; and

 

(iv)      within sixty (60) days
following the expiration of the period specified in (iii) above (without
the occurrence of a cure and written notice thereof as described in below), the
Grantee voluntarily terminates employment with the Company.

 

8

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