Document:

EX-10.14

Exhibit 10.14

SUPPLEMENTAL

EXECUTIVE

BENEFITS

(Effective as of December 31, 2008)

 

 

INTRODUCTION

This document outlines the supplemental benefits for eligible executive employees of affiliates of
Community Health Systems, Inc. (“Employer” or the “Company”), including the hospital companies that
are consolidated with the Company. Benefits are provided by the entity that employs the particular
eligible executive (the “Employer”), provided, however, certain benefits are provided through group
plans sponsored by Employer/Community Health Systems, Inc. The benefits described in this document
substitute in their entirety the benefit categories below that were previously provided by the
Supplemental Survivor and Accumulation Plan.1

	•	 	Survivor Benefits
	 
	•	 	Post-Termination Benefits
	 
	•	 	Severance Benefits

Plan benefit categories are based upon your position with an affiliate of the Company. The
following benefit categories are referenced throughout this summary:

			
	     Executive	 	Corporate Vice Presidents and Above

			
	     Group l	 	Vice Presidents (non-officer)

Corporate Management Grades 7-9

Facility Chief Executive Officers

			
	     Group 2	 	Corporate Management Grades 4-6

Facility Assistant Chief Executive Officers

Facility Chief Financial Officers

Facility Chief Nursing Officers

Benefit category determination is the exclusive right of the Employer its sole discretion.

As used in this document, “Cause” means gross neglect of duties, which gross neglect continues more
than 30 days after receiving written notice from the chief executive officer of the Company, its
board of directors, or other officers of the Company or Employer of the actions or inactions
constituting gross neglect; insubordination; intentional misconduct or deliberate disruption of the
workplace and working environment; conviction of a felony; dishonesty, embezzlement, theft, or
fraud committed in connection with employment resulting in substantial financial harm to the
Company; the issuance of any final order for your removal as an employee or representative of the
Company or Employer by any state or federal regulatory agency; and your material breach of any duty
owed to the Company or Employer, including without limitation the duty of loyalty. “Cause” shall
not include ordinary negligence or failure to act, whether due to an error in judgment or
otherwise, if you have exercised substantial efforts in good faith to perform the duties reasonably
assigned or appropriate to your position.

 

			
	1	 	The retirement benefits that were provided under the
now terminated Supplemental Survivor and Accumulation Plan were discontinued in
2002 and were provided for separately.

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SURVIVOR BENEFITS

Survivor benefits are life insurance proceeds intended to provide cash to your beneficiary(ies) in
the event of your death. These Survivor Benefits are provided through group-term life insurance or
a combination of group-term life insurance and individually-owned life insurance policies, as
determined by the plan sponsor.

     Amount of Benefit.

	 	 	 
	     Executive

	 	4X Base Salary
	 
	 	 
	     Group 1

	 	3X Base Salary
	 
	 	 
	     Group 2

	 	2X Base Salary

Your survivor benefits may be subject to the terms of any Benefit Exchange Agreement entered into
between you and the Company.

POST-TERMINATION BENEFITS

Post-termination benefits are generally designed to provide supplemental retirement benefits. They
are provided through contributions to a combination of one or more of the following:

	 	•	 	the Employer/Community Health Systems, Inc. Deferred Compensation Plan (Vice President
(non-officer) and above);
	 
	 	•	 	the Community Health Systems, Inc. Supplemental Executive Retirement Plan (Corporate
Vice Presidents and above);
	 
	 	•	 	matching contributions under the Community Health Systems, Inc. 401(k) Plan; and
	 
	 	•	 	any other non-qualified retirement plan of the Company or any affiliate.

You should refer to the underlying policies and/or plan documents relating to these benefits to
learn more about eligibility and your right to post-termination benefits under these policies and
plans. Certain post-termination benefits are also subject to the terms of any Benefit Exchange
Agreement entered into between you and the Company.

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SEVERANCE BENEFITS

Payout upon Termination (Salary and Vacation Time).

In the event you are terminated from your employment by your Employer, without Cause, severance
benefits of a multiple of your then base monthly salary will be paid to you based upon your
position, as shown in the schedule below:

	 	 	 
	Benefits Category	 	Severance Multiple
	President

	 	24 months
	Executive Vice President

	 	24 months
	Senior Vice President

	 	12 months
	Corporate Vice President

	 	12 months
	Vice President (non-officer)

	 	9 months
	Group 1

	 	6 months
	Group 2

	 	3 months

The vacation time payout for Corporate Vice Presidents and above (for whom no accruals are
maintained) shall be based upon a reasonable estimate of the vacation time taken during the twelve
month period preceding the date of termination.

Additional Payments (to be made no later than March 15th of the year following
termination)

In addition, if your employment is terminated without Cause, you will receive and additional amount
of severance pay determined as follows:

All Levels: the Employer shall pay the Executive, at the same time that the Employer makes
annual bonus payments under the 2004 Employee Performance Incentive Plan (or any replacement
or successor plan providing for similar benefits, collectively the “Incentive Plan”) to
other senior executives, a pro rata portion of the annual bonus that would have been paid
to the Executive under the Incentive Plan in respect of the year in which the termination
date occurred had the Executive remained employed through the applicable payment date under
the Incentive Plan, calculated by multiplying such amount by a fraction, the numerator of
which is the number of days in the year though the termination date and the denominator of
which is 365.

Termination within First 12 Months of Employment

If your employment is terminated without Cause before completing 12 full months of employment, you
will only receive one-half of the salary benefits provided for above and none of the bonus benefit.
Severance payments will be in the form of a lump sum payment or salary continuation, as determined
by Employer, and subject to withholdings and other deductions as described below.

COBRA Payment Limitation

In addition to the severance benefits described above, terminated employees who elect continuation
health coverage under COBRA will be required to pay only the equivalent of the

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active employee premium for this coverage for a period of time equal the time period applicable to
such employee based on the above chart, subject to the eligibility provisions of COBRA coverage.

Release.

As a condition of providing any payments and/or benefits described above, you will be required to
execute a comprehensive full and final release agreement satisfactory to the Company and
substantially in the form attached as Attachment 2, as amended from time to time.

Stock Options.

The respective Plans and Stock Option Agreements under which they were granted govern any stock
options and any capitalized terms used in this section. Generally, all vesting will cease on your
date of termination of employment, without regard to the reason, provided, however, if you are
terminated for Cause, all options are forfeited. If your employment is terminated without Cause,
you will have an additional 90 days from the date of termination of employment to exercise your
vested stock options.

Restricted Stock Awards.

The respective Plans and Restricted Stock Award Agreements under which they were granted govern any
awards of restricted stock and any capitalized terms used in this section. Upon any termination by
you, your restricted stock awards that have not already lapsed will be forfeited. Generally, for
awards granted after January 1, 2009, upon a termination by your employer that is without Cause,
the award will not be forfeited. Subject to the following sentence, upon termination by your
employer without Cause, or upon death or disability the award will accelerate and the restrictions
will immediately lapse. Notwithstanding the foregoing, in the event the date of termination is
prior to either (a) the first anniversary date of the award or (b) prior to the attainment of any
performance objective required under any performance based restricted stock award, then the award
will not lapse until both (a) and (b), if applicable, have been attained, and if attained, then all
restrictions on the entire award shall lapse.

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Attachment 1

RELEASE OF CLAIMS AGREEMENT

     In consideration of the severance benefits to be paid by Employer, an affiliate of
Employer/Community Health Systems, Inc. (“Employer”), to the undersigned employee (“Employee”),
Employer and the Employee agree and enter into this Release of Claims Agreement (“Agreement”) as
follows:

     1. Termination of Employment. The Employee acknowledges that the Employee’s
employment with Employer is terminated on and as of date of termination specified at the end of
this Agreement. The Employee further acknowledges that the Employee has no right of, nor will the
Employee seek, recall, rehire, or reinstatement of employment with Employer, its parent company,
its subsidiaries, or its affiliates.

     2. Severance Pay. Employer will pay the Employee severance pay in the gross amount of
$___, based on ___months of salary [and additional amount, if applicable], subject to
withholding for income taxes and deductions for employment taxes, in accordance with the
CHS/Community Health Systems, Inc. Supplemental Benefit Plan (“Plan”). Employer may offset from
the payment of severance pay the cost of any Employer property that Employer has agreed to sell to
the Employee.

     3. Medical Benefits. Provided the Employee properly elects continuation coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), Employer agrees
it will pay for the cost of such continuation coverage for the Employee (and, to the extent such
coverage is provided by Employer at the time of termination, the Employee’s current eligible spouse
and other current eligible dependents, if any), as provided below, under Employer’s group health
plan in accordance with the provisions of such plan through the later of the date specified at the
end of this Agreement or the date the Employee becomes covered under a subsequent employer’s group
health plan. However, the Employee shall pay the amount of monthly premium payment regularly paid
by a then-current regular employee of Employer for such coverage, and Employer will pay only the
difference between the COBRA premium payment and the portion of the premium paid by the Employee
through the later of the date specified at the end of this Agreement or the date the Employee
becomes covered under a subsequent employer’s group health plan.

     4. Consideration. The Employee hereby acknowledges that the consideration for
entering into this Agreement is the above-stated severance pay and benefits contained in Sections 2
and 3. The Employee further acknowledges that the Employee has been paid all monies owed to and/or
earned by the Employee based upon the Employee’s employment with Employer, its parent company, its
subsidiaries, or affiliates, including but not limited to wages, bonuses, and vacation pay.

     5. Release. The Employee, on the Employee’s own behalf and on behalf of the
Employee’s heirs, executors, administrators, personal representatives, successors, assigns, agents,
servants, and attorneys, whether past, present, or future (collectively, the “Releasing Parties”),
releases and forever discharges Community Health Systems, Inc., its subsidiaries, affiliates,
successors, assigns, agents, servants, representatives, shareholders, owners, members,

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directors, officers, and employees, whether past, present, or future, including without
limitation, Employer (collectively, the “Released Parties”), from any and all claims, causes of
action, liabilities, covenants, agreements, obligations, damages, and/or demands of every nature,
character, and description, without limitation in law, equity, or otherwise, that the Employee had,
has, or may now have, whether known or unknown, whether vicarious, derivative, direct, or indirect
(collectively, the “Released Claims”), including, but not limited to, (i) any claims under the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Fair Labor
Standards Act, the Equal Pay Act, the Employment Retirement Income Security Act, the Family and
Medical Leave Act, the Americans with Disabilities Act, the Tennessee Human Rights Act, and any
other federal, state or local laws, (ii) any claims for wrongful discharge or wrongful termination,
defamation, breach of contract, breach of any implied duty or covenant of good faith and fair
dealing, retaliation, infliction of emotional distress, or any other right or claim arising out of
or related in any way to the Employee’s employment with Employer or any of its subsidiaries or
affiliates and/or the termination of the Employee’s employment with Employer or any of its
subsidiaries or affiliates, (iii) any claims for damages (actual, compensatory, punitive, or
otherwise and however characterized), back wages, future wages, commission payments, bonuses,
reinstatement, vacation leave or paid time off benefits (whether accrued, credited, and/or earned),
past and future employee benefits (except to which there is vested entitlement by law), penalties,
equitable relief, and any and all other loss, expense, or detriment of whatever kind arising out of
or related in any way to the Employee’s employment with Employer or any of its subsidiaries or
affiliates and/or the termination of the Employee’s employment with Employer or any of its
subsidiaries or affiliates; and (iv) any claims for attorneys’ fees, costs, or expenses; provided,
however, that the foregoing Released Claims shall not include a claim for the payment or provision
of the severance benefits as provided in Section 2 or the COBRA premium payments provided for in
Section 3.

     6. Covenant Not to Sue and Indemnification. The Employee hereby specifically
covenants and agrees that the Employee shall not initiate, or cause to be initiated, a lawsuit
against Employer or any of the other Released Parties in the future asserting any Released Claims.
Except as prohibited by law, the Employee further agrees to indemnify Employer and all other
Released Parties for (i) any sum of money that any of them may hereafter be compelled to pay the
Employee or any other Releasing Parties, and (ii) any of Employer’s or other Released Parties’
legal fees, costs, and expenses associated therewith, on account of the Employee bringing or
allowing to be brought on the Employee’s behalf any legal action based directly or indirectly upon
the Released Claims.

     7. Consideration and Revocation Period. The Employee has been advised by Employer of
the Employee’s right to seek legal counsel. The Employee also acknowledges that the Employee has a
period of up to 21 days in which to consider entering into this Agreement, and, as evidenced by the
Employee’s signature here below, acknowledges that the Employee has had the opportunity to read and
review this Agreement and seek legal advice and now, freely and voluntarily, without coercion,
agrees to and understands the significance and consequences of its terms. The Employee further
acknowledges that, following the date of execution of this Agreement, the Employee has a period of
7 days within which to revoke the Employee’s acceptance of the Agreement, in which case this
Agreement shall be null and void, the Employee will be contractually obligated to repay any
payments or other consideration paid to the Employee by Employer under this Agreement, and Employer
will have a right of restitution,

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recoupment, and setoff to recover such payments. The Employee understands that, should the
Employee not exercise the Employee’s right to revoke this Agreement within 7 days of the date of
execution, this Agreement shall be held in full force and effect and each party shall be obligated
to comply with its requirements. The parties agree that any changes made to this Agreement
(material or immaterial) will not start the 21-day period referenced above to run again or
otherwise require a new 21-day period for consideration by the Employee.

     8. Nondisparagement. The Employee agrees that the Employee shall refrain from
engaging in any conduct, verbal or otherwise, that would disparage or harm the reputation of
Employer or any of the other Released Parties. Such conduct shall include, but not be limited to,
any negative statements made orally or in writing by the Employee about Employer or any of the
other Released Parties.

     9. Confidentiality of the Agreement. The Employee further agrees that all terms of
this Agreement are to be kept confidential and that the Employee will not discuss or disclose the
details or terms of this Agreement to any other individual, including but not limited to present or
former employees of Employer or any of the other Released Parties, with the exception of the
Employee’s attorney, spouse, accountant, or other tax adviser, provided such persons agree to
maintain the confidentiality of this Agreement.

     10. Property and Confidential Information. The Employee agrees that the Employee has
returned, or promptly hereafter (but in no event later than three (3) days from the date of
termination of employment) will return, to Employer any and all property of Employer or any of the
other Released Parties including any and all originals and/or copies of business documents in
whatever form including electronic form. The Employee represents that the Employee has taken no
action to alter or destroy improperly any such property and agrees not to take any such action
directly or indirectly in the future. The Employee further agrees that the Employee will not
directly or indirectly disclose to anyone, or use for the Employee’s own benefit or the benefit of
anyone other than Employer, any “confidential information” that the Employee has received through
the Employee’s employment with Employer. Confidential information shall include, but not be
limited to, Employer’s business plans and files; hospital management information; and any other
related information of Employer or any of the other Released Parties. The Employee further agrees
that, in the event it appears that the Employee will be compelled by law or judicial process to
disclose any such confidential information to avoid potential liability, the Employee will notify
Employer in writing immediately upon the Employee’s receipt of a subpoena or other legal process.

     11. No Admission of Liability. The Employee agrees and acknowledges that this
Agreement does not constitute any admission by Employer or any of the other Released Parties of any
liability or of any violation of any federal or state laws or regulations prohibiting employment
discrimination, retaliation, breach of contract, wrongful discharge, wrongful termination, or any
other statutory or common law rights or provisions.

     12. References. The Employee understands that Employer will provide in response to
inquiries from prospective employers only the Employee’s dates of employment with Employer, job
titles while employed by Employer, and final salary (with written authorization) while employed by
Employer, and the Employee agrees to advise all prospective employers that any

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requests for information concerning employment with Employer should be directed only to the
Human Resources Department in Franklin, Tennessee.

     13. Compliance Disclosure. In connection with the termination of the Employee’s
employment, and pursuant to the CHS Compliance Program and the Code of Conduct, the Employee hereby
represents and warrants to Employer and the other Released Parties that the Employee has at all
times during the Employee’s employment complied with the CHS Compliance Program and the Code of
Conduct, and that the Employee has disclosed in writing to the CHS Corporate Compliance Officer any
and all instances of known or suspected violations of laws, rules, regulations, or corporate policy
by any of the Released Parties. Further, the Employee represents and warrants that the Employee
has not brought and has no intention to bring any whistleblower or similar lawsuits (which terms
shall include, but not be limited to, a qui tam action under the Federal False Claims Act or any
similar laws), claims, or disclosures to any governmental agency that would subject any of the
Released Parties to any liability as a result of any violations of any laws, rules, or regulations
and that the Employee knows of no facts that would give rise to any such whistleblower or similar
lawsuits, claims, or disclosures to any governmental agency. In the event the representations and
warranties contained herein become inaccurate or untrue after the date hereof, the Employee agrees
that the Employee will notify the CHS Corporate Compliance Officer, in writing, of the necessary
corrections to make the representations and warranties accurate and true, prior to initiating any
whistleblower or similar lawsuits, claims, or disclosures to any governmental agency. The Employee
also agrees to indemnify against and hold Employer and the other Released Parties harmless from any
loss, cost, damage, or penalty incurred by Employer or any other Released Parties as a result of
any inaccuracy in or breach of the representations, warranties, or agreements contained herein.

     14. Miscellaneous Provisions.

          (a) This Agreement is executed and delivered within the State of Tennessee, and the rights,
duties, and obligations of the parties hereunder shall be construed and enforced in accordance with
the laws of the State of Tennessee, except to the extent preempted by the Employee Retirement
Income Security Act of 1974, and without the benefit of any rule of construction under which a
contract may be construed against the drafter. Venue for any lawsuit arising out of or related to
this Agreement will lie in Williamson County.

          (b) This writing together with the Plan represents the entire agreement and understanding of
the parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings of the parties in connection therewith; it may not be altered or amended except by
mutual agreement evidenced by a writing signed by both parties and specifically identified as an
amendment to this Agreement.

          (c) Except as specifically provided above, this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, executors, administrators, personal
representatives, successors, and assigns.

          (d) If any provision or part of any provision of this Agreement is deemed to be unenforceable
in whole by any court of competent jurisdiction, except Section 5, then the parties agree that such
provision shall be severed from the Agreement and the remainder of the Agreement shall remain in
full force and effect. The parties further agree that, to the extent a

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court of competent jurisdiction deems any provision of this Agreement unenforceable in part,
such court shall have the power to modify the terms of the Agreement by adding, deleting, or
changing in its discretion any language necessary to make such provision enforceable to the maximum
extent permitted by law, and the parties expressly agree to be bound by any such provision as
reformed by the court. Furthermore, if the release provided for under Section 5 of this Agreement
is deemed to be void or otherwise unenforceable by any court of competent jurisdiction, then the
Employee will be contractually obligated to repay immediately any severance payments and benefits
paid to the Employee by Employer under this Agreement, and Employer will have a right of
restitution, recoupment, and setoff against the Employee for the recovery of such payments and
benefits.

	 	 	 	 	 
	Date of Termination:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	EMPLOYER

	 	 	 	.:
	 

	 	 

	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 
	 	 	Benefit Payments Guaranteed by:	 	 
	 	 	CHS/COMMUNITY HEALTH SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

EMPLOYEE:

	 	 	 	 	 
	Employee’s Signature:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Employee’s Full Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Date Signed:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Witness’ Signature:
	 	 	 	 
	 

	 	 

	 	 

 vEX-10.15

Exhibit 10.15

COMMUNITY HEALTH SYSTEMS, INC.

DIRECTORS’ FEES DEFERRAL PLAN

Adopted as of December 14, 2004

Amended and Restated as of December 10, 2008

 

 

COMMUNITY HEALTH SYSTEMS, INC.

DIRECTOR’S FEES DEFERRAL PLAN

Section 1. Purpose, Participation

     (a) Purpose: The purpose of this Directors’ Fees Deferral Plan (the “Plan”) is
to enable Community Health Systems, Inc. (the “Corporation”) to attract and retain
Directors of outstanding ability by providing them with a mechanism to defer and accumulate
Director’s fees, meaning (1) the retainer, and (2) fees for attendance at meetings of the Board of
Directors of the Corporation (the “Board”) and Board committees.

     (b) Participation: This Plan extends to Directors of the Corporation not employed by
the Corporation or any subsidiary.

     Section 2. Payment of Deferred Amounts

     (a) Deferral Election: At any time prior to the beginning of a calendar year, a
Director may elect that all or any specified portion of the Director’s fees to be earned during
such calendar year be credited to a Director’s Cash Account and/or a Director’s Stock Unit Account
maintained on such Director’s behalf in lieu of payment (a “Deferral Election”). A
Director may also make a Deferral Election during the 30 days following the date on which a
Director first becomes eligible to receive Director’s fees, although any Deferral Election made
pursuant to this sentence will apply only to all or any specified portion of the Director’s fees
earned thereafter. Each Deferral Election must be made on a deferral election form to be provided
by the Corporation and must specify (i) the portion of the Director’s fees to be deferred, (ii) the
Payment Commencement Event (as hereinafter defined), and (iii) the Payment Method (as hereinafter
defined). Each Deferral Election must be submitted to the Secretary of the Corporation in writing,
and will be deemed to authorize deferral to only a Director’s Cash Account except to the extent
deferral to a Director’s Stock Unit Account is expressly specified.

     (b) Effect of Deferral Election: Pursuant to such Deferral Election, the Corporation
(i) will not pay the Director’s fees covered thereby and (ii) will make payments in accordance with
the Deferral Election and this Section 2.

     (c) Payment Commencement Event. At the time of making the Deferral Election, a
Director will designate as a “Payment Commencement Event” either (1) the Director’s “separation
from service” (as defined in Section 409A (“Section 409A”) of the Internal Revenue

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Code of 1986, as amended (the “Code”) and the regulations issued thereunder) with the
Corporation (or any successor), or (2) the Director’s attainment of an age specified by the
Director, provided that such age cannot be attained prior to the end of the calendar year following
the date on which the Deferral Election is made. In addition, (A) a Director who has elected (2)
as a Payment Commencement Event may also elect that, in the event that the Director experiences a
separation from service as a Director of the Corporation within one year following a “Change of
Control” (as defined in Section 5(g)) and which also constitutes a change in control or effective
control of the Corporation or a change in the ownership of a substantial portion of its assets, in
each case within the meaning of Section 409A of the Code and the regulations and interpretive
guidance issued thereunder (a “Section 409A Change in Control”), the Payment Commencement
Event for payments from a deferral account will be the Director’s separation from service, and (B)
a Director may also elect as a Payment Commencement Event the Director becoming Disabled (as
hereinafter defined) if that is earlier than any other Payment Commencement Event elected by the
Director. For purposes of this Plan, “Disabled” means that a Director is unable to engage
in any substantial gainful activity because of a medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months.

     (d) Payment. Payment of amounts credited to a Director’s Cash Account and Stock Unit
Account will be made in accordance with the Payment Method elected by the Director in his Deferral
Election. For purposes of this Plan, “Payment Method” shall mean, with respect to payments
of amounts credited to a Director’s Cash Account and Stock Unit Account pursuant to a Deferral
Election, either (i) a lump sum payment on the last business day of the calendar quarter in which
the Payment Commencement Event (either as originally designated or as subsequently designated
pursuant to Section 2(e)) occurs, or (ii) a number of annual installments (not exceeding 15)
specified by the Director in his Deferral Election commencing on the last business day of the
calendar quarter in which the Payment Commencement Event (either as originally designated or as
subsequently designated pursuant to Section 2(e)) occurs and, subject to Section 2(g), continuing
to be made on the last business day of that same calendar quarter in each subsequent year. The
amount of any installment payment made with respect to amounts subject to a Deferral Election shall
equal the sum of (i) the amount subject to that Deferral Election and credited to the Director’s
Cash Account as of the applicable payment date divided by the number of installments remaining to
be paid (including the installment with respect to which the determination is being made) (the
“Installment Factor”) and (ii) a number of shares of

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the Corporation’s Common Stock, par value $.01 per share (the “Common Stock”) equal to
the number of Stock Units subject to that Deferral Election and credited to the Director’s Stock
Unit Account as of the applicable payment date divided by the Installment Factor. Notwithstanding
the foregoing, the Payment Method in connection with a separation from service within 2 years
following a Section 409A Change in Control shall be a lump sum payment on the last business day of
the calendar quarter in which the Payment Commencement Event occurs.

     (e) Changes in Payment Commencement Event or Payment Method. A Director may also
elect to defer the Payment Commencement Event to a later Payment Commencement Date specified by the
Director or change the Payment Method with respect to amounts subject to a Deferral Election. Such
elections (1) will not be effective for 12 months after the date on which such election is made,
(2) must be made not less than 12 months prior to the date of the first scheduled payment of any
amount subject to that Deferral Election, (3) must provide for an additional deferral for a period
of not less than 5 years from the date the payment would otherwise have been made (except with
respect to amounts payable upon a Director becoming Disabled or upon the death of the Director),
and (4) must be submitted to and approved by the Plan Committee. A Director may make no more than
one election pursuant to this Section 2(e) in any calendar year with respect to amounts subject to
any particular Deferral Election.

     (f) Renewal of Payment Commencement and Payment Method Elections. Once a Deferral
Election, (including designation of the portion of Director’s fees to be deferred, the Payment
Commencement Event and the Payment Method) has been made, it will be automatically applied to
Director’s fees earned in all subsequent calendar years unless the Director changes or revokes such
election prior to the commencement of such calendar year. Each such change or revocation must be
submitted to the Secretary of the Corporation in writing. However, except as provided in Section
2(e), each Deferral Election is irrevocable as to Director’s fees earned prior to the calendar year
next following any change or revocation.

     (g) Death. A Director may designate a beneficiary (and change such beneficiary, from
time to time) for payment of any balance of the deferral account at the Director’s death. Upon a
Director’s death, any balance in the deferral account (including amounts credited to such account
as specified in Section 3(b) and Section 4(b)) will be paid to the deceased Director’s beneficiary
in a lump sum at the end of the first calendar quarter which ends at least 30 days after the
Director dies. If no beneficiary has been designated, the Director’s estate will be deemed the
beneficiary, and any payments pursuant to this Section 2(g) will be paid in a lump sum at the end

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of the first calendar quarter which ends at least 30 days after appointment of the deceased
Director’s legal representative.

Section 3. Credits and Debits to Director’s Cash Account

     (a) Principal. The Corporation will create and maintain on its books a Director’s
Cash Account for each Director who has made a Deferral Election to such an account under Section
2(a). The Corporation will credit to such account the amount of any Director’s fee which would
have been paid to the Director but for such Deferral Election, as of the date the fee would have
otherwise been payable.

     (b) Interest. At the end of each calendar quarter, regardless of whether any other
credits are then made to the Director’s Cash Account or whether the Director is then a Director,
the Corporation will also credit to the Director’s Cash Account a sum which is equal to the product
of (i) the average daily balance in the Director’s Cash Account for the quarter (without regard to
any debits made at the end of such quarter), times (ii) one-fourth of the annual Base Rate (prime
rate) for corporate borrowers quoted by J.P. Morgan Chase (or any successor thereto) of New York
as of the first business day of the quarter.

     (c) Debits. At the end of each calendar quarter, the Corporation will make a payment
if required under the payment schedule for such Director’s Cash Account and will debit the
Director’s Cash Account for the amount thereof. Payment with respect to a Director’s Cash Account
will be in cash only.

     (d) Mid-quarter Payments. If Payment is to be made other than at the end of a
calendar quarter, prior to such payment the Corporation will credit to the Director’s Cash Account
an amount equal to the product of (i) the average daily balance in the Director’s Cash Account for
the period from the beginning of the calendar quarter to the date of payment (without regard to any
debits to be made upon such payment), times (ii) a fraction of the annual Base Rate (prime rate)
for corporate borrowers quoted by J. P. Morgan Chase (or any successor thereto) as of the first
business day of the quarter, the numerator of which is the number of days in the period described
in clause (i), and the denominator of which is 365.

Section 4. Credits and Debits to Director’s Stock Unit Account

     (a) Stock Units. The Corporation will create and maintain on its books a Director’s
Stock Unit Account for each Director who has made a Deferral Election under Section 2(a) and

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expressly specifies deferral to such Stock Unit Account. The Corporation will credit to such
account the number of Stock Units equal to the number of shares of Common Stock that could be
purchased with the amount of any Director’s fee which the Director has specified be deferred to the
Stock Account and which would have been paid to the Director but for such Deferral Election, as of
the date the fee would have otherwise been payable. The number of Stock Units will be calculated
to three decimals by dividing the amount of the Director’s fee as to which a Director’s Stock Unit
Account Deferral Election was made by the closing price of the Corporation’s common stock as
reported on the New York Stock Exchange on the date the fee would have otherwise been payable.

     (b) Dividends. As of the date any dividend is paid to holders of shares of Common
Stock, each Director’s Stock Unit Account, regardless of whether the Director is then a Director,
will be credited with additional Stock Units equal to the number of shares of Common Stock that
could have been purchased with the amount which would have been paid as dividends on that number of
shares of Common Stock (including fractions of a share to three decimals) equal to the number of
Stock Units attributed to such Director’s Stock Account as of the record date applicable to such
dividend. The number of additional Stock Units to be credited will be calculated to three decimals
by dividing the amount which would have been paid as dividends by the closing price of the
Corporation’s common stock as reported on the New York Stock Exchange as of the date the dividend
would have been paid. In the case of dividends paid in property other than cash, the amount of the
dividend shall be deemed to be the fair market value of the property at the time of the payment of
the dividend, as determined in good faith by the Plan Committee.

     (c) Debits and Calculation of Payments. The Corporation will debit the Director’s
Stock Unit Account for Stock Units as required under the payment schedule for such Director’s Stock
Unit Account. Payment with respect to whole Stock Units will be in shares of Common Stock only, at
the rate of one shares of Common Stock per Stock Unit. Until such time as shares of Common Stock
have been listed on The New York Stock Exchange for issuance under this Plan, only Treasury shares
shall be used for such payment. With respect to fractional Stock Units, payment will be made in
cash only, and calculated by multiplying the fractional number of the Stock Unit to be debited by
the closing price of the Corporation’s common stock as reported on the New York Stock Exchange as
of the last business day of the week preceding the week of the date the Stock Units are payable.
Should payment of shares of Common Stock be made with respect to Stock Units after the record date,
but before the payment date applicable to a dividend

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paid to holders of shares of Common Stock, the dividend that would otherwise have been
credited as additional Stock Units to a Director’s Stock Unit Account in respect of those shares
will be paid to the Directors in cash (or other property) at the same time as the dividend is paid
to shareholders generally.

     (d) Adjustment. If at any time the number of outstanding shares of Common Stock is
increased as the result of any stock dividend, stock split, subdivision or reclassification of
shares, the number of Stock Units with which each Director’s Stock Unit Account is credited will be
increased in the same proportion as the outstanding number of shares of Common Stock is increased.
If the number of outstanding shares of Common Stock is decreased as the result of any combination,
reverse stock split or reclassification of shares, the number of Stock Units with which each
Director’s Stock Unit Account is credited will be decreased in the same proportion as the
outstanding number of shares of Common Stock is decreased. In the event the Corporation is
consolidated with or merged into any other corporation and holders of shares of Common Stock
receive shares of the capital stock of the resulting or surviving corporation, there shall be
credited to each Director’s Stock Unit Account, in lieu of the extant Stock Units, new Stock Units
in an amount equal to the product of the number of shares of capital stock exchanged for one share
of the Corporation’s common stock upon such consolidation or merger, and the number of Stock Units
with which such account then is credited. If, in such a consolidation or merger, holders of shares
of Common Stock receive any consideration other than shares of the capital stock of the resulting
or surviving corporation or its parent corporation, the Plan Committee will determine any
appropriate change in Directors’ Stock Unit Accounts. In the event of a recapitalization or other
corporate transaction affecting the Common Stock, the Plan Committee will determine an appropriate
change in Directors’ Stock Unit Accounts.

     (e) Accounting. Amounts credited to a Director’s Cash Account and/or Stock Unit
Account in respect of amounts subject to a particular Deferral Election shall at all times be
accounted for separately under this Plan. A change in a particular Deferral Election shall apply
to all amounts separately accounted for with respect to that Deferral Election. Any references
herein to “amounts subject to a Deferral Election” shall be deemed to refer to the amounts deferred
pursuant to a particular Deferral Election, amounts credited to a Directors Cash Account and/or
Stock Unit Account in respect of those deferrals and any amounts distributed or to be distributed
from the Director’s Cash Account and/or Stock Unit Account in respect of those deferrals.

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Section 5. Unfunded Arrangement

     Neither this Plan nor any deferral account will be funded; a deferral account and all entries
thereto constitute bookkeeping records only and do not relate to any specific funds or shares of
the Corporation. Payments due with respect to balances in a deferral account will be made from the
general assets of the Corporation, and the right of any participant to receive future payments
under this Plan’s provisions will be an unsecured claim against such assets.

Section 6. Administration

     (a) Plan Committee. The Plan will be administered by a Plan Committee, which will be
the Compensation Committee of the Board, or such other committee as may be appointed by the Board,
and may include Directors who have elected to participate in the Plan. No member of the Plan
Committee will be liable for any act done or determination made in good faith.

     (b) Committee Determination Final. The construction and interpretation of any
provision of the Plan by the Plan Committee, and a determination by the Plan Committee of the
amount of any deferral account, will be final and conclusive.

     (c) Amendments. The Corporation, by action of its Board, reserves the right to
terminate, modify or amend this Plan, effective prospectively as of the first day of any calendar
quarter; provided, however, that (i) the Plan will not be subject to termination, modification or
amendment with respect to any balance of a deferral account and rights therein, including the right
to future interest pursuant to Section 3(b) and future dividends pursuant to Section 4(b), unless
the affected Director consents and (ii) the Board may delegate to any officer of the Corporation
the authority to adopt any amendment to the Plan deemed necessary so that the Plan complies or
continues to comply with all applicable law, including without limitation, complying with Section
409A of the Code and the regulations issued thereunder, provided that any such amendment does not
result in any material cost to the Corporation.

     (d) Non-Alienation. No Director (or estate of a Director) will have power to
transfer, assign, anticipate, mortgage or otherwise encumber any rights or any amounts payable
hereunder; nor will any such rights or payments be subject to seizure for the payment of any debts,
judgments, alimony, or separate maintenance, or be transferable by operation of law in the event of
bankruptcy, insolvency, or otherwise.

     (e) Expenses. The expenses of administering the Plan will be borne by the Corporation
and not be charged against any deferral account.

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     (f) Withholding. The Corporation may deduct from all cash payments any taxes required
to be withheld with respect to such payments. In order to enable the Corporation to meet any
applicable federal, state or local withholding tax requirements arising as a result of payments
made hereunder in the form of stock, a Director shall pay the Corporation the amount of tax to be
withheld or may elect to satisfy such obligation by having the Corporation withhold shares of
Common Stock that otherwise would be delivered to the Director pursuant to the deferral account
payment for which the tax is being withheld, by delivering to the Corporation other shares of
Common Stock owned by the Director prior to the payment date, or by making a payment to the
Corporation consisting of a combination of cash and such shares of Common Stock. Such an election
shall be made prior to the date to be used to determine the tax to be withheld. The value of any
share of common stock to be withheld by, or delivered to, the Corporation pursuant to this Section
6(f) shall be the closing price of the Corporation’s common stock as reported on the New York Stock
Exchange on the date to be used to determine the amount of tax to be withheld.

     (g) Change of Control. A “Change of Control” means the occurrence of any of
the following events with respect to the Corporation:

     1. An acquisition (other than directly from the Corporation) of any voting securities
of the Corporation (the “Voting Securities”) by any “Person” (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)), immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of more than fifty percent (50%) of the then outstanding shares of the
Corporation’s Common Stock or the combined voting power of the Corporation’s then
outstanding Voting Securities; provided, however, that in determining whether a Change of
Control has occurred shares of Common Stock or Voting Securities which are acquired in a
“Non-Control Acquisition” (“as hereinafter defined) shall not constitute an acquisition
which would cause a Change of Control. A “Non-Control Acquisition” shall mean an
acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained
by (A) the Corporation or (B) any corporation or other Person the majority of the voting
power, voting equity securities or equity interest of which is owned, directly or
indirectly, by the Corporation (for purposes of this definition, a “Related
Entity”), (ii) the Corporation or any Related Entity, or (iii) any Person in connection
with a “Non-Control Transaction” (as hereinafter defined);

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     2. The individuals who, as of December 10, 2008, are members of the Board
(the “Incumbent Board”), cease for any reason to constitute at least a majority of
the members of the Board or, following a Merger (as hereinafter defined) which results in a
Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent
Corporation; provided, however, that if the election, or nomination for election by the
Corporation’s common stockholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be
considered a member of the Incumbent Board; provided further, however, that no individual
shall be considered a member of the Incumbent Board if such individual initially assumed
office as a result of an actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board (a “Proxy Contest”) including by reason of
any agreement intended to avoid or settle any Proxy Contest; or

     3. The consummation of:

	 	(i)	 	A merger, consolidation or reorganization with
or into the Corporation or in which securities of the Corporation are
issued (a “Merger”), unless such Merger is a “Non-Control
Transaction.” A “Non-Control Transaction” shall mean a Merger
where:

	 	(A)	 	the stockholders of the
Corporation immediately before such Merger own directly or
indirectly immediately following such Merger at least fifty
percent (50%) of the combined voting power of the outstanding
voting securities of (x) the corporation resulting from such
Merger (the “Surviving Corporation”), if fifty percent
(50%) or more of the combined voting power of the then
outstanding voting securities of the Surviving Corporation is
not Beneficially Owned, directly or indirectly, by another
Person (a “Parent Corporation”), or (y) if there is one
or more than one Parent Corporation, the ultimate Parent
Corporation; and
	 
	 	(B)	 	the individuals who were members
of the Incumbent Board immediately prior to the execution of the
agreement providing for such Merger constitute at least a
majority of the members of the board of directors of (x) the
Surviving

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	 	 	 	Corporation, if there is no Parent Corporation or (y) if
there is one or more than one Parent Corporation, the
ultimate Parent Corporation;

	 	(ii)	 	A complete liquidation or dissolution of the
Corporation; or
	 
	 	(iii)	 	The sale or other disposition of all or
substantially all of the assets of the Corporation to any Person (other
than a transfer to a Related Entity or under conditions that would
constitute a Non-Control Transaction with the disposition of assets
being regarded as a Merger for this purpose or the distribution to the
Corporation’s stockholders of the stock of a Related Entity or any
other assets).

     Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding shares of Common Stock or Voting Securities as a result of the
acquisition of shares of Common Stock or Voting Securities by the Corporation which, by reducing
the number of shares of Common Stock or Voting Securities then outstanding, increases the
proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change
of Control would occur (but for the operation of this sentence) as a result of the acquisition of
shares of Common Stock or Voting Securities by the Corporation, and after such share acquisition by
the Corporation, the Subject Person becomes the Beneficial Owner of any additional shares of Common
Stock or Voting Securities which increases the percentage of the then outstanding shares of Common
Stock or Voting Securities Beneficially Owned by the Subject Person, then a Change of Control shall
occur.

     (h) Stock Unit Status. Stock Units are not, and do not constitute, shares of Common
Stock, and no right as a holder of shares of Common Stock devolves upon a Director by reason of
participation in this Plan.

     (i) Savings Provision. The Corporation intends for the Plan to comply with Section
409A of the Code and the regulations issued thereunder. If there is ambiguity as to the intent or
meaning of any provision of the Plan, such provision shall be interpreted in a manner that complies
with Section 409A and regulations promulgated thereunder.

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