Document:

Exhibit
10.53

 

Lucy Rutishauser, the
Company's Vice President of Corporate Finance and Treasurer, is a party to an
employment agreement with the Company dated March 2001, a copy of which is
attached to this Exhibit 10.53. Pursuant to the terms of the agreement, Ms.
Rutishauser's base salary is reviewed annually and for fiscal year 2005, has
been set at $238,750. Ms. Rutishauser and the Company have agreed that she will
not receive a bonus for the year ended December 31, 2005.

 

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is effective as of this 19th day of March, 2001, between
Sinclair Broadcast Group, Inc., a Maryland corporation (“SBG”), and Lucy
Rutishauser (“Employee”).

 

RECITALS

 

A.            SBG,
through its wholly-owned subsidiaries, owns or operates television broadcast
stations.

 

B.            SBG, pursuant to an
Employment Agreement dated December 8, 1998, which Employment Agreement
was amended by that certain Letter Agreement dated March 30, 2000
(collectively, the “Previous Employment Agreement”), employed Employee as
Assistant Treasurer of SBG.

 

C.            Employee
has been promoted to the position of Treasurer of SBG, and SBG and Employee
desire to set forth the terms of employment of Employee with SBG as Treasurer
of SBG.

 

D.            It
is the intention of SBG and Employee that this Agreement supersede and replace
the Previous Employment Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
OF the mutual covenants herein contained, the parties hereto
agree as follows:

 

1.             Duties.

 

1.1.  Duties Upon Employment.  Upon the terms and subject to the other
provisions of this Agreement, commencing on the date hereof (the “Effective
Date”), Employee will be employed by SBG in Cockeysville, Maryland as Treasurer
of SBG.  As Treasurer, Employee will

 

(a)  report to SBG’s Chief Financial Officer; and

 

(b)  have such responsibilities and perform such
duties as may from time to time be established by SBG’s Chief Financial Officer
or other senior officers.

 

1.2.  Full-Time Employment.  While an employee of SBG, Employee agrees to
devote Employee’s full working time, attention, and best efforts exclusively to
the business of SBG and its subsidiaries.

 

1

 

2.             Term.

 

2.1.  Term.  The term of Employee’s employment as the
Treasurer of SBG under this Agreement (the “Employment Term”) will begin on the
Effective Date and continue until employment is terminated in accordance with
Section 4.  As used in this
Agreement, an “employment year” is a twelve (12) month period beginning on
January 1 and ending on the next following December 31; provided,
however, that the first “employment year” shall begin on the Effective Date and
shall end on December 31, 2001.

 

2.2.  At Will Employment.  Notwithstanding anything else in this
Agreement, including, without limitation, the provisions of Sections 2.1. and 3
regarding the employment term and compensation and benefits of Employee,
respectively, the employment of Employee is not for a specified period of time,
and SBG may terminate the employment of Employee with or without Cause (as
defined below) at any time.  There is
not, nor will there be, unless in a writing signed by all of the parties to
this Agreement, any express or implied agreement as to the continued employment
of Employee.

 

3.             Compensation
and Benefits.

 

3.1.  Compensation.  Employee shall be entitled during each
employment year to the compensation determined by the Chief Executive Officer
of SBG in connection with SBG’s Compensation Committee.  During the first year, Employee shall be
compensated at a per annum rate of One Hundred Fifty Three Thousand Dollars
($153,000.00).

 

3.2.  Bonus.  In calendar year beginning January 1, 2001
and for each subsequent calendar year of the Employment Term, Employee may
receive a bonus of up to twenty five percent (25%) of the salary paid to
Employee in such calendar year (except for the first year of employment, such
bonus shall be prorated from the Effective Date), such bonus to be determined
in the sole discretion of the Chief Financial Officer in consultation with the
Compensation Committee.

 

3.3.  Vacation.  While employed by SBG, Employee shall be
entitled to three (3) weeks of paid vacation leave per year during the
Employment Term, unless the policies of SBG would allow Employee more than
three (3) weeks vacation, in which case Employee shall be allowed the longer
vacation period under SBG’s policies.

 

3.4.  Health Insurance and Other
Benefits.  During the
Employment Term, Employee shall be eligible to participate in health insurance
programs that may from time to time be provided by SBG for its employees
generally, and Employee shall be eligible to participate in other employee
benefits plans and to receive personal days and sick leave that may from time
to time be provided by SBG to its employees generally.

 

3.5.  Tax Issues.  To the extent taxable to Employee, Employee
will be responsible for accounting for and payments of taxes on the benefits
provided to Employee by SBG, and Employee will keep such records regarding uses
of these benefits as SBG reasonably

 

2

 

requires and will furnish SBG all such information as may be reasonably
requested by SBG with respect to such benefits.

 

3.6.  Expenses.  SBG will pay or reimburse Employee from time
to time for all expenses incurred by Employee during the Employment Term on
behalf of SBG in accordance with corporate policies established by SBG;
provided, that (i) such expenses must be reasonable business expenses, and (ii)
Employee supplies to SBG itemized accounts or receipts in accordance with SBG’s
procedures and policies with respect to reimbursement of expenses in effect
from time to time.

 

4.             Employment
Termination.

 

4.1.  Termination of Employment.

 

(a)  The Employment Term will end, and the parties
will not have any rights or obligations under this Agreement (except for the
rights and obligations under those Sections of this Agreement which are
continuing and will survive the end of the Employment Term, as specified in
Section 8.10 of this Agreement) on the earliest to occur of the following
events (the “Termination Date”):

 

(1)           the
death of Employee;

 

(2)           the
Disability (as defined in Section 4.1(b) below) of Employee;

 

(3)           the
termination of Employee’s employment by Employee;

 

(4)           the
termination of Employee’s employment by SBG for Cause (as defined in Section
4.1(c) below); or

 

(5)           the
termination of Employee’s employment by SBG without Cause.

 

(b)  For the
purposes of this Agreement, “Disability” means Employee’s inability, whether
mental or physical, to perform the normal duties of Employee’s position for
ninety (90) days (which need not be consecutive) during any twelve (12)
consecutive month period, and the effective date of such Disability shall be
the day next following such ninetieth (90th) day.  If SBG and Employee are unable to agree as to
whether Employee is disabled, the question will be decided by a physician to be
paid by SBG and designated by SBG, subject to the approval of Employee (which
approval may not be unreasonably withheld) whose determination will be final
and binding on the parties.

 

(c)  For the purposes of this Agreement, “Cause”
means any of the following:  (i) the
wrongful appropriation for Employee’s own use or benefit of property or money
entrusted to Employee by SBG, (ii) the commission of any act involving moral
turpitude, (iii)

 

3

 

Employee’s continued willful disregard of Employee’s duties and
responsibilities hereunder after written notice of such disregard, (iv)
Employee’s continued violation of SBG policy after written notice of such
violations (such policy may include policies as to drug or alcohol abuse), (v)
any action by Employee which is reasonably likely to jeopardize a Federal
Communications Commission license of any broadcast station owned directly or
indirectly by SBG, or (vi) insubordination of Employee and/or Employee’s
repeated failure to follow the reasonable directives of Employee’s superiors.

 

4.2.  Termination Payments.

 

(a)  If Employee’s employment with SBG terminates pursuant
to Sections 4.1(a)(1), 4.1(a)(2), 4.1(a)(3), or 4.1(a)(5), Employee (or in the
event of the death of Employee, the person or persons designated by Employee in
a written instrument delivered to SBG prior to Employee’s death or, if no such
written designation has been made, Employee’s estate) will be entitled to
receive, and SBG will pay to the same, all of the following:

 

(1)           the
salary payable to Employee through the Termination Date;

 

(2)           a
payment in respect of unutilized vacation time that has accrued through the
Termination Date (determined in accordance with corporate policies established
by SBG); and

 

(3)           the
benefits, if any, set forth in the Long-Term Incentive Plan, upon the terms and
conditions set forth therein, but only to the extent that Employee is entitled
to such benefits pursuant to the provisions of the Long-Term Incentive Plan.

 

(b)  If Employee’s employment with SBG terminates
pursuant to Section 4.1(a)(4), Employee will be entitled to receive, and SBG
will pay to Employee, the salary payable to Employee through the Termination
Date, including pay for accrued but unutilized vacation (and Employee shall not
be entitled to any benefits under the Long-Term Incentive Plan).

 

5.             Confidentiality
and Non-Competition.

 

5.1.  Confidential Information.

 

(a)  Employee will:

 

(1)           keep
all Confidential Information in trust for the use and benefit of SBG and any
affiliate or subsidiary of SBG (collectively, the “SBG Entities”) and broadcast
stations owned or operated directly or indirectly by any of the SBG Entities;

 

(2)           not,
except as required by Employee’s duties under this Agreement, authorized by the
General Counsel of Sinclair Communications, Inc. or as required by law or any
order, rule, or regulation of any court or governmental agency (but only after
notice to

 

4

 

SBG of such requirement), at any time during or after the termination
of Employee’s employment with SBG, directly or indirectly, use, publish,
disseminate, distribute, or otherwise disclose any Confidential Information (as
defined below);

 

(3)           take
all reasonable steps necessary, or reasonably requested by any of the SBG
Entities, to ensure that all Confidential Information is kept confidential for
the use and benefit of the SBG Entities; and

 

(4)           upon
termination of Employee’s employment or at any other time any of the SBG
Entities in writing so request, promptly deliver to such SBG Entity all
materials constituting Confidential Information relating to such SBG Entity
(including all copies) that are in Employee’s possession or under Employee’s
control.  If requested by any of the SBG
Entities to return any Confidential Information, Employee will not make or
retain any copy of or extract from such materials.

 

(b)           For
purposes of this Section 5.1, Confidential Information means any proprietary or
confidential information of or relating to any of the SBG Entities that is not
generally available to the public. 
Confidential Information includes all information developed by or for
any of the SBG Entities concerning marketing used by any of the SBG Entities,
suppliers, any customers (including advertisers) with which any of the SBG
Entities has dealt prior to the Termination Date, plans for development of new
services and expansion into new areas or markets, internal operations,
financial information, operations, budgets, and any trade secrets or
proprietary information of any type owned by any of the SBG Entities, together
with all written, graphic, other materials relating to all or any of the same,
and any trade secrets as defined in the Maryland Uniform Trade Secrets Act, as
amended from time to time.

 

5.2.  Non-Competition.

 

(a)           During
the Employment Term and for twelve (12) months thereafter, if Employee’s
employment is terminated for any reason other than pursuant to Section
4.1(a)(5), Employee will not, directly or indirectly, engage in the following
conduct within any Designated Market Area (as defined below) in which any of
the SBG Entities owns or operates a broadcast station immediately prior to such
termination:

 

(i)            participate
in any activity involved in the ownership or operation of a television
broadcast station (other than, during the term, broadcast stations owned or
operated by any of the SBG Entities);

 

(ii)           hire,
attempt to hire, or to assist any other person or entity in hiring or
attempting to hire any employee of any of the SBG Entities or any person who
was an employee of any of the SBG Entities within the prior one (1) year
period; or

 

(iii)          solicit,
in competition with any of the SBG Entities, the business of any customer of
any of the SBG Entities or any entity whose business any of the SBG Entities
solicited during the one (1) year period prior to Employee’s termination.

 

5

 

(b)           Notwithstanding
anything else contained in this Section 5.2, Employee (1) may own, for
investment purposes only, up to five percent (5%) of the stock of any
publicly-held corporation whose stock is either listed on a national stock
exchange or on the NASDAQ National Market System if Employee is not otherwise
affiliated with such corporation and (2) shall not be prohibited from working
for any business or enterprise, unless at least 25% of the earnings before
interest, taxes, depreciation and amortization of such business or enterprise
are attributable to television and radio operations.

 

(c)           As
used herein, “participate” means lending one’s name to, acting as consultant or
advisor to, being employed by or acquiring any direct or indirect interest in any
business or enterprise, whether as a stockholder, partner, officer, director,
employee, consultant, or otherwise.

 

(d)           In
the event that (i) SBG places all or substantially all of its broadcast
stations up for sale within one (1) year after termination of Employee’s
employment hereunder, or (ii) Employee’s employment is terminated in connection
with the disposition of all or substantially all of such stations (whether by
sale of assets, equity, or otherwise), Employee agrees to be bound by, and to
execute such additional instruments as may be necessary or desirable to
evidence Employee’s agreement to be bound by, the terms and conditions of any
non-competition provisions relating to the purchase and sale agreement for such
stations, without any consideration beyond that expressed in this Agreement,
provided that the purchase and sale agreement is negotiated in good faith with
customary terms and provisions, and the transaction contemplated thereby is
consummated.  Notwithstanding the
foregoing, in no event shall Employee be bound by, or obligated to enter into,
any non-competition provisions referred to in this Section 5.2(d) which
extend beyond twelve (12) months (including in the case of terminations
pursuant to Section 4.1(a)(5)), in each case from the date of termination of
Employee’s employment hereunder or whose scope extends the scope of the
non-competition provisions set forth in Section 5.2(a) (as limited by Sections
5.2(b) and (c) above).

 

(e)           The
twelve (12) month time period referred to above shall be tolled on a
day-for-day basis for each day during which Employee participates in any
activity in violation of this Section 5.2 of this Agreement so that Employee is
restricted from engaging in the conduct referred to in this Section 5.2 for a
full twelve (12) months.

 

(f)            For
purposes of this Section 5.2, designated market area shall mean the Designated
Market Area (“DMA”) as defined by The A.C. Nielsen Company (or such other
similar term as is used from time to time in the television broadcast community).

 

5.3.  Acknowledgment.  Employee acknowledges and agrees that this
Agreement (including, without limitation, the provisions of Sections 5 and 6)
is a condition of Employee’s being employed by SBG, Employee’s having access to
Confidential Information, Employee’s being eligible to receive the items
referred to in Section 3, Employee’s advancement at SBG, and Employee
being eligible to receive other special benefits at SBG; and further, that this
Agreement is entered into, and is reasonably necessary, to protect the SBG
Entities’ investment in Employee’s

 

6

 

training and development, and to protect the goodwill and other
business interests of the SBG Entities.

 

6.             Remedies.

 

6.1.  Injunctive Relief.  The covenants and obligations contained in
Section 5 relate to matters which are of a special, unique, and extraordinary
character and a violation of any of the terms of such Section will cause
irreparable injury to the SBG Entities, the amount of which will be impossible
to estimate or determine and which cannot be adequately compensated.  Therefore, the SBG Entities will be entitled
to an injunction, restraining order or other equitable relief from any court of
competent jurisdiction (subject to such terms and conditions that the court
determines appropriate), restraining any violation or threatened violation of
any of such terms by Employee and such other persons as the court orders.  The parties acknowledge and agree that
judicial action, rather than arbitration, is appropriate with respect to the
enforcement of the provisions of Section 5. 
The forum for any litigation hereunder shall be the Circuit Court of
Baltimore County or the United States District Court (Northern Division)
sitting in Baltimore, Maryland.

 

6.2.          Cumulative
Rights and Remedies.  Rights
and remedies provided by Sections 5 and 6 are cumulative and are in addition to
any other rights and remedies any of the SBG Entities may have at law or
equity.

 

7.             Absence
of Restrictions.  Employee
warrants and represents that Employee is not a party to or bound by any
agreement, contract, or understanding, whether of employment or otherwise, with
any third person or entity which would in any way restrict or prohibit Employee
from undertaking or performing employment with SBG in accordance with the terms
and conditions of this Agreement.

 

8.             Miscellaneous.

 

8.1.          Attorneys’
Fees.  In any action,
litigation, or proceeding (collectively, “Action”) between the parties arising
out of or in relation to this Agreement, the prevailing party in the Action
will be awarded, in addition to any damages, injunctions, or other relief, and
without regard to whether such Action is prosecuted to final appeal, such
party’s costs and expenses, including reasonable attorneys’ fees.

 

8.2.          Headings.  The descriptive headings of the Sections of
this Agreement are inserted for convenience only, and do not constitute a part
of this Agreement.

 

8.3.          Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed given upon (a) oral or
written confirmation of a receipt of a facsimile transmission, (b) confirmed
delivery of a standard overnight courier or when delivered by hand, or (c) the
expiration of five (5) business days after the date mailed, postage prepaid, to
the parties at the following addresses:

 

7

 

	
  If to SBG to:

  	
  Sinclair Broadcast
  Group, Inc.

  
	
   

  	
  10706 Beaver Dam Road

  
	
   

  	
  Cockeysville, Maryland
  21030

  
	
   

  	
   

  
	
   

  	
  Attn:  Chief Executive Officer

  
	
   

  	
   

  
	
  If to Employee to:

  	
  Lucy Rutishauser

  
	
   

  	
  10706 Beaver Dam Road

  
	
   

  	
  Cockeysville, Maryland
  21030

  

 

or to such other address
as will be furnished in writing by any party. 
Any such notice or communication will be deemed to have been given as of
the date so mailed.

 

8.4.          Assignment.  SBG may assign this Agreement to any of the
SBG Entities, and Employee hereby consents and agrees to be bound by any such
assignment by SBG.  Employee may not
assign, transfer, or delegate Employee’s rights or obligations under this
Agreement and any attempt to do so is void. 
This Agreement is binding on and inures to the benefit of the parties,
their successors and assigns, and the executors, administrators, and other
legal representatives of Employee.  No
other third parties, other than SBG Entities, shall have, or are intended to
have, any rights under this Agreement.

 

8.5.          Counterparts.  This Agreement may be signed in one or more
counterparts.

 

8.6.          Governing
Law.  THIS
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND (REGARDLESS OF
THE LAWS THAT MIGHT BE APPLICABLE UNDER PRINCIPLES OF CONFLICTS OF LAW) AS TO
ALL MATTERS (INCLUDING VALIDITY, CONSTRUCTION, EFFECT, AND PERFORMANCE.)

 

8.7.          Severability.  If the scope of any provision contained in
this Agreement is too broad to permit enforcement of such provision to its full
extent, then such provision shall be enforced to the maximum extent permitted
by law, and Employee hereby consents that such scope may be reformed or
modified accordingly, and enforced as reformed or modified, in any proceeding
brought to enforce such provision. 
Subject to the immediately preceding sentence, whenever possible, each
provision of this Agreement will be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision, to the extent of such prohibition or invalidity, shall not be deemed
to be a part of this Agreement, and shall not invalidate the remainder of such
provision or the remaining provisions of this Agreement.

 

8.8.          Entire
Agreement.  This Agreement
constitutes the entire agreement, and supersedes all prior agreements and
understandings, written or oral, among the parties with respect to the subject
matter of this Agreement, including, but not limited to, the Previous
Employment Agreement.  This Agreement may
not be amended or modified except by agreement in writing,

 

8

 

signed by the party against whom enforcement of any waiver, amendment,
modification, or discharge is sought.

 

8.9.          Interpretation.  This Agreement is being entered into among
competent and experienced business professionals (who have had an opportunity
to consult with counsel), and any ambiguous language in this Agreement will not
necessarily be construed against any particular party as the drafter of such
language.

 

8.10.        Continuing
Obligations.  The following
provisions of this Agreement will continue and survive the termination of this
Agreement:  4.2, 5, 6, 7 and 8.

 

8.11.        Taxes.  SBG may withhold from any payments under this
Agreement all applicable federal, state, city, or other taxes required by
applicable law to be so withheld.

 

8.12.        Arbitration
and Extension of Time. 
Except as specifically provided in Section 6, any dispute or controversy
arising out of or relating to this Agreement shall be determined and settled by
arbitration in Baltimore, Maryland in accordance with the Commercial Rules of
the American Arbitration Association then in effect, the Federal Arbitration
Act, 9 U.S.C. § 1 et  seq., and the Maryland Uniform Arbitration
Act, and judgment upon the award rendered by the arbitrator(s) may be entered
in any court of competent jurisdiction. 
The expenses of the arbitration shall be borne by the non-prevailing
party to the arbitration, including, but not limited to, the cost of experts,
evidence, and legal counsel.  Whenever
any action is required to be taken under this Agreement within a specified period
of time and the taking of such action is materially affected by a matter
submitted to arbitration, such period shall automatically be extended by the
number of days, plus ten (10) that are taken for the determination of that
matter by the arbitrator(s). 
Notwithstanding the foregoing, the parties agree to use their best
reasonable efforts to minimize the costs and frequency of arbitration
hereunder.

 

THIS AGREEMENT CONTAINS A WAIVER
OF YOUR RIGHT TO A TRIAL BY COURT OR JURY IN EMPLOYMENT DISPUTES.

 

THIS AGREEMENT CONTAINS A BINDING
ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

 

9

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement effective as of the date first
written above.

 

	
   

  	
  SINCLAIR BROADCAST
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
  EVP/CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Lucy A. Rutishauser

  	
   

  
	
   

  	
  Lucy
  Rutishauser

  

 

10Exhibit 10.04

 

2005 EQUITY COMPENSATION PLAN

 

FOR NON-EMPLOYEE DIRECTORS OF PRAXAIR, INC.

 

 

2005
EQUITY COMPENSATION PLAN

 

FOR
NON-EMPLOYEE DIRECTORS OF PRAXAIR, INC.

 

Section 1.              Purpose.
The 2005 Equity Compensation Plan For Non-Employee Directors of Praxair,
Inc.(hereinafter referred to as the “Plan”) is established to attract, retain
and compensate highly qualified individuals who are not employees of Praxair,
Inc. for service as members of the Board and to provide them with an ownership
interest in the Company’s common stock. 
The Plan will be beneficial to the Company and its stockholders by
allowing these Non-Employee Directors to have a personal financial stake in the
Company through an ownership interest in the Company, in addition to
underscoring their common interest with stockholders in increasing the value of
the Company’s stock over the long term.

 

Section 2.              Definitions.

 

2.1           “Board”
means the Board of Directors of the Company.

 

2.2           A
“Change in Control of the Company” means the occurrence of any one of the following events with respect to the Company:

 

(i)            individuals
who, on January 1, 2003, constitute the Board (the “Incumbent Directors”) cease
for any reason to constitute at least a majority of the Board, provided that
any person becoming a director subsequent to January 1, 2003, whose election or
nomination for election was approved by a vote of at least two-thirds of the
Incumbent Directors then on the Board (either by a specific vote or by approval
of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual elected
or nominated as a director of the Company initially as a result of an actual or
threatened election contest with respect to directors or any other actual or
threatened solicitation of proxies [or consents] by or on behalf of any person
other than the Board shall be deemed an Incumbent Director;

 

(ii)           any
“person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2)
of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing 20% or more of the combined voting power of the Company’s then
outstanding securities eligible to vote for the election of the Board (the “Company
Voting Securities”); provided, however, that the event described
in this paragraph (ii) shall not be deemed to be a Change in Control by virtue
of any of the following acquisitions: 
(A) by the Company or any subsidiary, (B) by any employee benefit plan
sponsored or maintained by the Company or subsidiary, (C) by any underwriter
temporarily holding securities pursuant to an offering of such securities, (D)
pursuant to a Non-Qualifying Transaction (as defined in paragraph (iii)) or (E)
pursuant to any acquisition by a Director participating in this Plan or any
group of persons including such a

 

 

Director (or any entity
controlled by such a Director or by any group of persons including such a
Director);

 

(iii)          the
consummation of a merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or any of its subsidiaries
that requires the approval of the Company’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Business
Combination”), unless immediately following such Business Combination: (A) more
than 50% of the total voting power of (x) the corporation resulting from such
Business Combination (the “Surviving Corporation”), or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial
ownership of 100% of the voting securities eligible to elect directors of the
Surviving Corporation (the “Parent Corporation”), is represented by Company
Voting Securities that were outstanding immediately prior to such Business
Combination (or, if applicable, shares into which such Company Voting
Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion
as the voting power of such Company Voting Securities among the holders thereof
immediately prior to the Business Combination, (B) no person (other than any
employee benefit plan sponsored or maintained by the Surviving Corporation or
the Parent Corporation), is or becomes the beneficial owner, directly or
indirectly, of 20% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there
is no Parent Corporation, the Surviving Corporation) and (C) at least a
majority of the members of the board of directors of the Parent Corporation
(or, if there is no Parent Corporation, the Surviving Corporation) were
Incumbent Directors at the time of the Board’s approval of the execution of the
initial agreement providing for such Business Combination (any Business Combination
which satisfies all of the criteria specified in (A), (B) and (C) above shall
be deemed to be a “Non-Qualifying Transaction”); or

 

(iv)          The
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or a sale or disposition of all or substantially all
of the Company’s assets.

 

Notwithstanding
the foregoing, a Change in Control of the Company shall not be deemed to occur
solely because any person acquires beneficial ownership of more than 20% of the
Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company which reduces the number of Company Voting Securities
outstanding; provided, that if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting
Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control of the
Company shall then occur.

 

2.3           “Closing
Price” shall mean the closing price of the Stock as reported on the New York
Stock Exchange-Composite Transactions on the closing date for which a Closing
Price is to be determined under this Plan (or, if it was not traded on such
date, the next preceding day such Stock was traded on an exchange included in
the New York Stock Exchange-Composite Transactions).

 

2.4           “Code”
means the Internal Revenue Code of 1986, as now or hereafter amended.

 

2.5           “Committee”
shall mean the Governance and Nominating Committee of the Board or such other
Committee appointed by the Board for the purpose of administering this Plan
comprising two

 

 

or more members of the Board all of whom
are “non-employee” directors within the meaning of Rule 16b-3 under the
Exchange Act.

 

2.6           “Company”
means Praxair, Inc.

 

2.7           “Deferral
Plan” means the Praxair, Inc. Director’s Fees Deferral Plan as amended and
restated from time to time.

 

2.8           “Disability”
means a Participant’s inability to engage in any substantial gainful activity
because of any medically determinable physical or mental impairment which can
be expected to result in death or which has lasted, or can be expected to last,
for a continuous period of twelve months or longer.

 

2.9           “Mandatory
Deferrals” means the amounts described and granted pursuant to Section 9 of
this Plan.

 

2.10         “Market
Price” is the mean of the high and low prices of Stock as reported in the New
York Stock Exchange-Composite Transactions on the date for which a Market Price
is to be determined under this Plan (or, if it was not traded on such date, on
the next preceding day such Stock was traded on a stock exchange included in
the New York Stock Exchange-Composite Transactions).

 

2.11         “1995
Stock Option Plan” shall mean The Praxair, Inc. 1995 Stock Option Plan for
Non-Employee Directors.

 

2.12         “Non-Employee
Director” or “Director” means a member of the Board who is not an employee of
the Company or a Subsidiary or Affiliate.

 

2.13         “Participant”
shall mean an individual participating in the Plan pursuant to Section 3.

 

2.14         “Restricted
Stock” means Stock of the Company subject to restrictions on the transfer of
such Stock, conditions for forfeiture of such Stock, or any other limitations
or restrictions as determined by the Committee and granted pursuant to
Section 8 of this Plan.

 

2.15         “Retirement”
shall mean a Non-Employee Director’s reaching the Board’s mandatory retirement
age or ceasing to serve as a Director at a later age with the approval of the
Board.

 

2.16         “Stock”
shall mean the common stock, $0.01 par value, of the Company.

 

 

2.17         “Stock
Option” shall mean an option to purchase Stock granted pursuant to
Section 6 of this Plan.

 

2.18         “Subsidiary”
and “Affiliate” of the Company each shall mean any entity in which the Company
has a 50% or greater ownership interest, directly or indirectly.

 

Section 3.              Participation.
The Participants in the Plan shall be all Non-Employee Directors.

 

Section 4.              Administration. The Plan shall be administered and
interpreted by the Committee, which shall have sole authority to make rules and
regulations for the administration of the Plan. The interpretations and
decisions of the Committee with regard to the Plan shall be final and
conclusive and binding upon all Participants. The Committee may request advice
or assistance or employ such persons (including without limitation, legal
counsel, consultants and accountants) as it deems necessary for the proper
administration of the Plan. The Committee (i) shall determine the number and
types of grants to be made under the Plan; (ii) shall select the types of
grants to be made to Participants; (iii) shall set the exercise price, the
number of options to be granted, and the number of shares to be granted out of
the total number of shares available for grant; (iv) may establish
administrative regulations to further the purpose of the Plan; and (v) may take
any other action desirable or necessary to interpret, construe or implement
properly the provisions of the Plan.

 

Section 5.              Grants.

 

5.1           Annual
Grants. Each calendar year the
Committee may make a grant to each Non-Employee Director in accordance with
this Section 5.  Except as provided in
Section 5.6, if a grant is made, each Participant shall receive the
identical grant without discrimination.

 

5.2           Aggregate
Grant Value. The total value of
each Participant’s annual grant as of the date of grant shall be such amount as
the Board may from time to time determine.

 

5.3           Form
and Terms of Grant. The Committee shall,
in its discretion, (a) select the forms of grant to be made which can be Stock
Options, Stock, Restricted Stock or Mandatory Deferrals, or a

 

 

combination thereof, each as more
particularly described in this Plan, and (b) set the terms and conditions of
such grant subject to the applicable limitations set forth in this Plan.

 

5.4           Date
of Grant. To the extent
feasible, and except for a grant for 2005, such grants shall be made as of the
same date that annual long term incentive grants are made to the Company’s
officers and employees which is expected to be the date of the Board’s
regularly scheduled meeting in February of each year.  To the extent required by law, a grant of
Mandatory Deferrals under Section 9 shall be made no later than the last
meeting of the Committee occurring prior to the year for which the grant is
being made.

 

5.5           2005
Grant.  The first grants under this Plan shall be
made at the first meeting of the Committee following the approval of this Plan
by the shareholders of the Company, the date of which meeting shall be the date
of grant.  To reflect a grant of stock
options made in 2005 under the 1995 Stock Option Plan, the total value of the
initial grant under this Plan for 2005 for each Participant who received a
grant of stock options in 2005 shall be (i) $70,000, less (ii) the
value of the stock options granted in 2005 under the 1995 Stock Option Plan to
such Participant.  The value of such
stock options shall be calculated using the same methodology as the
Compensation and Management Development Committee of the Board used for
determining the value of stock options granted to employees of the Company in
2005, but updated from the date of such employee grant to the date of the 2005
grant of options under the 1995 Stock Option Plan.

 

5.6           Grants
Upon Initial Election or Appointment to the Board.
With respect to a Non-Employee Director first elected at an annual meeting of
shareholders of the Company or appointed by the Board during a year (including
any Non-Employee Director first elected to the Board at the meeting of
shareholders which approves this Plan), such Non-Employee Director shall
receive a grant having a value equal to a pro-rata portion of that year’s grant
dollar value based on the period of time from the effective date on which such
Non-Employee Director begins serving on the Board to the end of such calendar
year.  To the extent feasible, the
pro-rata grant shall be made in the same form(s) made to other

 

 

Non-Employee Directors for such year, but
shall reflect the effective date of the Non-Employee Director’s service on the
Board as the applicable grant date.

 

5.7           Valuation
of Grants. For purposes of
determining the value of grants made hereunder (except for the 2005 grant), (1)
the value of grants of Stock Options shall be determined using the same
methodology as the Compensation and Management Development Committee (or such
other Committee as determined by the Board) uses for determining the value of
stock options granted to employees of the Company; and (2) the value of any
grants of Stock and Restricted Stock shall be determined by the Closing Price
on the date of grant.

 

5.8           Types
of Grants. Grants under this Plan
may be in any of the following forms of grants (or a combination thereof):  (i) Stock Options; (ii) Stock, (iii)
Restricted Stock, or (iv) Mandatory Deferrals.

 

5.9           Maximum
Amount Available. The total number of
shares of Stock (including Restricted Stock) optioned or granted under this
Plan during the term of the Plan shall not exceed five hundred thousand
(500,000) shares.  Solely for the purpose
of computing the total number of shares of Stock optioned or granted under this
Plan, there shall not be counted (i) any shares which have been forfeited; and
(ii) any shares covered by an option which, prior to such computation, has
terminated in accordance with its terms or has been cancelled by the
Participant or the Company.

 

5.10         Adjustment
in the Event of Recapitalization, etc.

 

In the event of any
change in the outstanding shares of the Company by reason of any stock split,
stock dividend, recapitalization, merger, consolidation, combination or
exchange of shares or other similar corporate change or in the event of any
special distribution to the stockholders, the Committee shall make such
equitable adjustments in the number of shares and prices per share applicable
to Stock Options then outstanding and in the number of shares which are available
thereafter for grants under the Plan, both under the Plan as a whole and with
respect to grant type, as the Committee determines are necessary and
appropriate. Stock and Restricted Stock shall be adjusted in the same manner as

 

 

adjustments
are made for shareholders generally.  Any
adjustments under this Section 5.10 shall be conclusive and binding for all
purposes of the Plan.

 

Section 6.              Stock Options.

 

6.1           Grant
Types. The Committee may
grant, either alone or in combination with other forms of grant as provided in
this Plan, options to purchase Stock (hereinafter referred to as “Stock Option
grants”) under such terms as the Committee establishes, subject to the
limitations set forth in this Section 6. 
All Stock Option grants shall be non-qualified stock options.

 

6.2           Exercise
Price. The exercise price of
each share of Stock subject to a Stock Option grant shall be specified in the
grant, but in no event shall the exercise price be less than the Closing Price
on the date of grant.

 

6.3           Repricing.
Without the prior approval of the Company’s shareholders, the exercise price of
any Stock Option grant made pursuant to this Plan shall not be changed
following the date of its grant, other than such equitable changes as may arise
in connection with the adjustments permitted under Section 5.10 and no Stock
Option grant may be cancelled and replaced with a new Stock Option grant with a
lower exercise price where the economic effect would be the same as reducing
the exercise price of the cancelled option.

 

6.4           Transferability.

 

(a)           Stock
Option grants shall not be transferable by the Participant other than:

 

(i)            In
the case of the Participant’s death, pursuant to the beneficiary designation
then on file with the Company, or, in the absence of such a beneficiary
designation (or if the designated beneficiary has pre-deceased the
Participant), by will or the laws of descent and distribution (in which case
the Company without liability to any other person, may rely on the directions
of the executor or administrator of the Participant’s estate with respect to
the disposition or exercise of such options);

 

 

(ii)           In
the Committee’s discretion, the terms of a Stock Option may permit the
Participant to transfer the Stock Option grant to (A) his or her spouse,
children (including by adoption), stepchildren or grandchildren (referred to
herein as the Participant’s “Family Members”), (B) a trust or trusts for the
exclusive benefit of such Family Members, (C) a partnership in which such
Family Members are the only partners, or (D) such other persons or entities as
the Committee may approve on a case-by-case basis; or

 

(iii)          In
the case of a transferee’s death, to his/her estate without rights to further
distribution.

 

(b)           Any
transfer pursuant to this Section 6.4 shall be subject to the following:

 

(i)            there
may be no consideration for any such transfer;

 

(ii)           the
stock option agreement pursuant to which such Stock Option grant is made must
be approved by the Committee, and must expressly provide for transferability in
a manner consistent with this Section 6.4; and

 

(iii)          subsequent
transfers of transferred Stock Option grants shall be prohibited except those
in accordance with this Section 6.4.

 

(c)           Following
transfer, any transferred Stock Option grant shall continue to be subject to
the same terms and conditions as were applicable immediately prior to transfer.
The events of death, Disability, Retirement and termination of service as a
Non-Employee Director with respect to an outstanding Stock Option grant shall
be in relation to the original grantee Participant notwithstanding an earlier
transfer of the Stock Option grant. Following such events, the Stock Option
grant shall be exercisable by the transferee only to the extent and for the
periods specified in Sections 6.6 and 6.7 hereof.

 

6.5           Duration
of Stock Option Grants. A Stock Option grant
by its terms shall be of no more than ten (10) years’ duration.

 

 

6.6           Initial
Exercisability. A Stock Option grant
by its terms shall be exercisable only after the earliest of:

 

(i)            such
period of time as the Committee shall determine and specify in the grant, but
in no event less than three years following the date of grant, provided that
Stock Options may be partially exercisable after no less than one (1) year so
long as the entire grant does not become fully exercisable until at least three
(3) years have elapsed from the date of grant;

 

(ii)           the
Participant’s death; or

 

(iii)          a Change in Control of the Company.

 

In the event of the Participant’s Disability,
Retirement, resignation, or the termination of the Participant’s service as a
Non-Employee Director other than for cause, a Stock Option grant shall not be
exercisable at the time of such event but shall become exercisable at the time
specified in clauses (i), (ii) and (iii) above. 
Notwithstanding the foregoing, in the event of a Participant’s
Retirement, resignation or termination of service as a Non-Employee Director
prior to the first anniversary date after the date of a Stock Option grant,
such Stock Option grant shall not be exercisable but shall be immediately
forfeited.

 

6.7           Exercise
Period. A Stock Option grant
is only exercisable by a Participant (or, if the Stock Option grant has been
duly transferred pursuant to Section 6.4, the transferee) while the Participant
is in active service as a Non-Employee Director, except:

 

(i)            in
the case of a Participant’s death, the Stock Option grant shall remain
exercisable by the transferee of the grant during a three (3) year period
following the date of death;

 

(ii)           in
the case of a Participant’s Retirement or Disability, the Stock Option grant,
to the extent not forfeited in accordance with Section 6.6 above, shall remain
exercisable during the original grant duration as specified in the grant
agreement; or

 

 

(iii)          in
the case of a resignation or termination of the Participant’s service as a
Non-Employee Director other than for cause, the Stock Option grant shall remain
exercisable during a three (3) year period commencing on the effective date of
such resignation or termination; or

 

(iv)          in
the case of a resignation or termination of the Participant’s services as a
Non-Employee Director within two (2) years after a Change in Control of the
Company, unless such termination of services is for cause, the Stock Option
grant shall remain exercisable during a three-year period commencing on the
effective date of termination; or

 

(v)           if
the Committee decides that it is in the best interest of the Company to permit
individual exceptions.

 

In no event may a Stock Option grant be
exercised after its expiration date.

 

6.8           Manner
of Exercise. A Stock Option grant
may be exercised by the Participant (or, if the Stock Option grant has been
duly transferred pursuant to Section 6.4, the transferee) with
respect to part or all of the shares subject to the option by giving written
notice to the Company or its designee of the exercise of the option according
to such procedures as the Committee may establish.

 

6.9           Payment
of Exercise Price. The exercise price for
the shares for which an option is exercised shall be paid by the exerciser
within three (3) business days after the date of exercise and the terms of the
Stock Option grant may provide that the exerciser price may be paid:

 

(a)           in
cash;

 

(b)           in
whole shares of Stock owned by the exerciser prior to exercising the option
provided such shares have been held by the exerciser for at least six months;

 

(c)           by
having the Company withhold shares that otherwise would be delivered to the
exerciser pursuant to the exercise of the option in an amount equaling in value
the exercise price;

 

(d)           in
a combination of either cash and delivery of shares, or cash and withholding of
shares; or

 

 

(e)           by
whatever other means the Committee may deem appropriate, other than by a loan
by the Company to the exerciser.

 

The Company shall
establish procedures in connection with payments pursuant to (b), (c), (d), and
(e) above, to ensure that the Plan does not become subject to variable
accounting by virtue of such payment methods. 
Shares of stock shall not be delivered to the exerciser until the full
exercise price has been paid.  The value
of any share of Stock delivered or withheld in payment of the exercise price
shall be its Market Price on the date the option is exercised.

 

Section 7.              Grants of Stock.

 

The
Committee may grant, either alone or in addition to other grants made under the
Plan, shares of Stock.

 

Section 8.              Grants of Restricted Stock.

 

8.1           Grant
Types. The Committee may
grant, either alone or in addition to other grants made under the Plan, shares
of Restricted Stock under such terms as the Committee establishes, subject to
the limitations set forth in this Section 8.

 

8.2           Vesting
Periods. Restricted Stock shall
be vested and transferable only after the earliest of:

 

(i)            such
period of time as the Committee shall determine and specify in the grant, but
in no event less than three years following the date of grant;

 

(ii)           the
Participant’s death;

 

(iii)          the
Participant’s Disability; or

 

(iv)          a Change in Control of the Company.

 

In the event of a Participant’s Retirement, resignation or
termination of service as a Non-Employee Director other than for cause, the
Restricted Stock shall be vested but not transferable at the time of such event
but shall become transferable at the time specified in clauses (i) through (iv)
above, except that if

 

 

the Restricted Stock is taxable income to the Director at the
time of such event, then the Director may sell or transfer up to thirty-five
percent (35%) of the Restricted Stock at any time after such event.

 

8.3           Forfeitures
of Restricted Stock.  In the event a Director’s services as a
Director are terminated for cause, any non-vested Restricted Stock shall be
forfeited, unless the Committee shall otherwise determine that it is in the
best interests of the Company to permit individual exceptions.

 

8.4           Rights
as a Stockholder. The Participant shall
have, with respect to Restricted Stock, all of the rights of a stockholder of
the Company, including the right to vote the shares and the right to receive
any dividends, unless the Committee shall otherwise determine.

 

8.5           Transferability.
Restricted Stock may not be sold or transferred by the Participant until any
restrictions that have been established by the Committee have lapsed.

 

Section 9.              Mandatory Deferrals.

 

9.1           Grant
Type. The Committee may
grant amounts, either alone or in addition to other grants made under the Plan,
which shall be mandatorily deferred under the terms of the Deferral Plan.  Such amounts shall be credited to the
Director’s Stock Unit Account under the Deferral Plan as of the date of grant
and shall be paid out upon the earliest of:

 

(i)            the Director’s attainment of age 72;

 

(ii)           such date as specified in the grant of Mandatory
Deferrals under the 2005 Equity Compensation Plan but such date shall be not
less than five (5) years after the date of grant of the Mandatory Deferrals;

 

(iii)          the
Director’s death;

 

(iv)          the
Director’s Disability; or

 

(v)           a
Change of Control as defined in the
Deferral Plan.

 

Payment shall be made in the form of cash or stock as elected
by the Director in accordance with the terms of the Deferral Plan.

 

 

9.2           Forfeiture.
A Director whose services as a Director are terminated for cause shall forfeit
any amounts in the Director’s Stock Unit Account of the Deferral Plan relating
to Mandatory Deferrals.

 

Section 10.            General Provisions.

 

10.1         Assignment.
Subject to the provisions of Section 6.4, if applicable, any assignment or
transfer of any grants without the written consent of the Company shall be null
and void.

 

10.2         No
Trust. Nothing contained
herein shall require the Company to segregate any monies from its general
funds, or to create any trusts, or to make any special deposits for any
immediate or deferred amounts payable to any Participant for any year.

 

10.3         Cancellation
and Rescission of Grants.

 

(a)           The
Committee shall have the discretion with respect to any grant made under this
Plan to establish upon its grant conditions under which (i) the grant may be
later forfeited, cancelled, rescinded, suspended, withheld or otherwise limited
or restricted; or (ii) gains realized by the grantee in connection with a grant
or a grant’s exercise may be recovered; provided that such conditions and their
consequences are (A) clearly set forth in the grant agreement or other grant
document; and (B) fully comply with applicable laws.

 

(b)           The
Committee may require, upon exercise, payment or delivery pursuant to a grant,
that the Participant certify in a manner acceptable to the Company that he or
she is in compliance with the terms and conditions of the grant.

 

10.4         Payment
of Taxes. To enable the Company
to meet any applicable federal, state, local or foreign withholding tax
requirements arising as a result of the exercise of a Stock Option or the
grant, vesting or payment of Stock or Restricted Stock, a Participant or the
Participant’s estate shall pay to the Company the amount of tax to be withheld,
or may elect to satisfy such obligation:

 

(a)           By
delivering to the Company other shares of Stock owned by the Participant for at
least six months prior to the Option exercise or grant, vesting or payment of
the Stock or Restricted Stock;

 

 

(b)           by
making a payment to the Company consisting of a combination of cash and such
shares of Stock; or

 

(c)           if
the exerciser or grantee is the Participant, by having the Company withhold
shares that otherwise would be delivered to the Participant pursuant to the
Option exercise or grant, vesting or payment of the Stock or Restricted Stock
for which the tax is being withheld, provided that withholding by such method
shall be limited to the minimum required applicable tax withholding.

 

Such an election shall
be made in such manner as may be prescribed by the Committee and the Committee
shall have the right, in its discretion, to disapprove such election. Any such
election must be made prior to the date to be used to determine the tax to be
withheld and shall be irrevocable. The value of any share of Stock to be
withheld by the Company or delivered to the Company pursuant to this Section
10.4 shall be the Market Price on the date used to determine the amount of tax
to be withheld.

 

The Company shall
establish procedures in connection with payments pursuant to (a), (b), and (c)
above, to ensure that the Plan does not become subject to variable accounting
by virtue of such payment methods.

 

10.5         Termination
of Prior Plan.  Following the approval of this Plan by the
shareholders of the Company, no further stock options will be granted to
Non-Employee Directors under the 1995 Stock Option Plan.

 

10.6         Effect of Participation.  Participation
in this Plan shall not provide any Participant the right to continue service as
a Director of the Company.

 

10.7         Termination for Cause.  For purposes of
Sections 6, 8 and 9 of this Plan, a Director who is not nominated for
re-election to the Board or a Director who is not re-elected to the Board by
the shareholders of the Company, shall not be considered a Director whose
services as a Director were terminated for cause unless the Board duly adopts a
resolution specifying otherwise and setting forth the reasons such event shall
be deemed a termination for cause.

 

 

Section 11.            Amendment, Suspension, or Termination.

 

11.1         The
Board may suspend, terminate, or amend the Plan, including, but not limited to,
such amendments as may be necessary or desirable resulting from changes in the
federal income tax laws and other applicable laws, but may not, without the
affirmative vote of a majority of all votes duly cast on the matter at a
meeting of the stockholders of the Company (provided that the total votes cast
on the matter represent over 50% of the shares entitled to vote on the
matter):  (a) increase the total number
of shares of Stock that may be optioned or granted under this Plan; (b) amend
Section 6.3 with respect to re-pricing of Stock Option grants; (c) change the
eligibility requirements for participation in the Plan; or (d) adopt any other
material revision to this Plan that would require the approval of the
stockholders under the rules promulgated by the New York Stock Exchange.

 

11.2         It
is the Company’s intent that the Plan comply in all respects with Rule 16b-3
under the Exchange Act and any related regulations and other authority.  If any provision of this Plan is later found
not to be in compliance with such rules and regulations, the provisions shall
be deemed null and void. All grants to, and exercises of options under, this
Plan shall be executed in accordance with the requirements of Section 16 of the
Exchange Act and regulations promulgated thereunder.

 

Section 12.            Governing Law.

 

The validity, construction and effect of the Plan and any
rules and regulations relating to the Plan shall be determined in accordance
with the laws of the State of Connecticut and applicable federal law.

 

Section 13.            Effective Date and Duration of the Plan.

 

This Plan shall be effective upon approval of this Plan by
the shareholders of the Company.  No
further grants shall be made under the Plan after April 30, 2010.

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