Document:

exv10w11

 

Exhibit 10.11

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (as amended from time to time, this
“Agreement”), effective as of January 1, 2008 is between W-H Energy Services, Inc., a Texas
corporation (“Company”), and Stuart J. Ford (“Executive”).

W I T N E S S E T H:

     WHEREAS, Company and Executive are currently parties to an Employment Agreement effective as
of January 1, 2004, as amended by a First Amendment thereto executed as of March 30, 2007 (such
Employment Agreement, as so amended, the “Original Employment Agreement”); and

     WHEREAS, Company and Executive desire to amend and restate the Original Employment Agreement
to reflect therein the amendments thereto effected by the First Amendment thereto and to make
certain other amendments, including those required by Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”).

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, Company and Executive agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. Effective as of January 1, 2004 (the “Effective
Date”), and continuing for the period of time set forth in Article 2 of this Agreement, Company
agrees to employ Executive and Executive agrees to be employed by Company, subject to the terms and
conditions of this Agreement.

     1.2 Positions. Company shall employ Executive in the position of Vice President and
Intellectual Property Counsel of Company, or in such other positions as the parties mutually may
agree.

     1.3 Duties and Services. Executive agrees to serve in the position referred to in paragraph
1.2 and to perform diligently and to the best of his abilities the duties and services appertaining
to such offices, as well as such additional duties and services appropriate to such offices which
the parties mutually may agree upon from time to time. Executive’s employment shall also be
subject to the policies maintained and established by Company that are of general applicability to
Company’s executive employees, as such policies may be amended from time to time.

     1.4 Other Interests. Executive agrees, during the period of his employment by Company, to
devote his primary business time, energy and best efforts to the business and affairs of Company
and its affiliates and not to engage, directly or indirectly, in any other business or businesses,
whether or not similar to that of Company, except with the consent of the Board of Directors. The
foregoing notwithstanding, the parties recognize and agree that Executive may engage in other
business activities that do not conflict with the business and affairs of Company
or interfere with Executive’s performance of his duties hereunder, which shall be at the sole
determination of the Company’s President and Chief Executive Officer.

 

 

     1.5 Duty of Loyalty. Executive acknowledges and agrees that Executive owes a fiduciary duty
of loyalty to act at all times in the best interests of Company. In keeping with such duty,
Executive shall make full disclosure to Company of all business opportunities pertaining to
Company’s business and shall not appropriate for Executive’s own benefit business opportunities
concerning Company’s business.

ARTICLE 2: TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated pursuant to other provisions hereof, Company agrees to
employ Executive for the period beginning on the Effective Date and ending on December 31, 2009
(the “Initial Expiration Date”); provided, however, that beginning on the Initial
Expiration Date, and on each anniversary of the Initial Expiration Date thereafter, if this
Agreement has not been terminated pursuant to paragraph 2.2 or 2.3, then said term of employment
shall automatically be extended for an additional one-year period unless on or before the date that
is 90 days prior to the first day of any such extension period either party shall give written
notice to the other that no such automatic extension shall occur.

     2.2 Company’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1, Company
shall have the right to terminate Executive’s employment under this Agreement at any time for any
of the following reasons:

     (i) upon Executive’s becoming incapacitated by accident, sickness or other
circumstance which, in the reasonable opinion of a physician selected by Company, renders
him mentally or physically incapable of performing the duties and services required of him
hereunder;

     (ii) for cause, which for purposes of this Agreement shall mean Executive (A) has
willfully breached any of his duties and obligations hereunder resulting in materially
adverse consequences to Company or any of its affiliates, (B) has misappropriated funds or
property of Company or any of its affiliates, or (C) has engaged in conduct that is
materially adverse to the interests of Company or any of its affiliates; ; provided, however,
that, prior to termination pursuant to clause (A), Company shall give Executive written
notice of the grounds for termination and Executive shall have ten days after receipt thereof
to cure same; or

     (iii) for any other reason whatsoever, in the sole discretion of the Board of
Directors.

     2.3 Executive’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Executive shall have the right to terminate his employment under this Agreement for any of the
following reasons:

     (i) within 60 days of the initial existence of (A) a material breach by Company of any
material provision of this Agreement, (B) a material decrease in Executive’s base salary;
(C) a material decrease in the duties and responsibilities assigned to Executive as
compared to the positions referred to in paragraph 1.2; or (D) Executive being required
to relocate to a site more than 25 miles from his present business address; or

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     (ii) at any time after there is a Change in Control (as such term is defined in
paragraph 6.1); or

     (iii) at any time for any other reason whatsoever, in the sole discretion of Executive;

provided, however, that in the case of a termination under paragraph 2.3(i), (A) Executive must
provide Company with written notice of the event giving rise to the right of termination within 60
days of the initial existence thereof, and Company shall have 30 days to remedy the same and (B) in
no event may the effective date of Executive’s termination be more than 24 months following the
initial existence of the event giving rise to the right of termination.

     2.4 Notice of Termination. If Company or Executive desires to terminate Executive’s
employment hereunder at any time prior to expiration of the term of employment as provided in
paragraph 2.1, it or he shall do so by giving written notice to the other party that it or he has
elected to terminate Executive’s employment hereunder and stating the effective date and reason for
such termination, provided that no such action shall alter or amend any other provisions hereof or
rights arising hereunder.

ARTICLE 3: COMPENSATION AND BENEFITS

     3.1 Base Salary. Commencing January 1, 2008, Executive shall receive a minimum annual base
salary of two hundred seventy three thousand dollars ($273,000.00). Executive’s annual base salary
shall be reviewed by the Board of Directors (or a committee thereof) on an annual basis, and, in
the sole discretion of the Board of Directors (or such committee), such annual base salary may be
increased, but not decreased, effective as of January 1 of each year. Executive’s annual base
salary shall be paid during his employment hereunder in equal installments in accordance with the
Company’s standard policy regarding payment of compensation to executives but no less frequently
than monthly.

     3.2 Incentive Compensation. During his employment hereunder, Executive shall be eligible to
receive incentive compensation up to a maximum of 100 % of his annual base salary each calendar
year as shall be determined in the sole discretion of the Board of Directors (or a committee
thereof), which compensation, if any, shall be paid to Executive in the form of a lump-sum payment
between January 1 and March 15 of the calendar year following the calendar year to which the
incentive compensation relates.

     3.3 Other Perquisites. During his employment hereunder, Executive shall be afforded the
following benefits as incidences of his employment:

     (i) Car Allowance - Company shall provide to Executive an automobile or automobile
allowance as approved by the President and Chief Executive Officer, which shall be paid in
equal installments on a monthly basis in accordance with the Company’s standard policy
regarding payment of compensation to its other employees.

     (ii) Other Company Benefits - Executive and, to the extent applicable, Executive’s
spouse, dependents and beneficiaries, shall be allowed to participate in the health and
welfare plans and programs, including improvements or modifications of the

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same, which are
now, or may hereafter be, available to the other executive officers of Company. Such plans
and programs include, without limitation, health insurance, life insurance and disability
insurance and vacation and sick leave plans, which may be maintained by Company. Company
shall not, however, by reason of this paragraph be obligated to institute, maintain, or
refrain from changing, amending, or discontinuing, any such plan or program, so long as such
changes are similarly applicable to the other executive officers of Company.

ARTICLE 4: PROTECTION OF INFORMATION

     4.1 Disclosure to Executive. Company shall disclose to Executive, or place Executive in a
position to have access to or develop, trade secrets or confidential information of Company or its
affiliates; and/or shall entrust Executive with business opportunities of Company or its
affiliates; and/or shall place Executive in a position to develop business good will on behalf of
Company or its affiliates.

     4.2 Property of Company. All documents, drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, e-mail, voice mail, electronic
databases, maps, and all other writings or materials of any type embodying any information relating
to Company or its business are and shall be the sole and exclusive property of Company. Upon
termination of Executive’s employment by Company, for any reason, Executive promptly shall deliver
the same, and all copies thereof, to Company. For the avoidance of doubt, this paragraph 4.2 shall
not prohibit Executive from retaining his only personal property following termination or
expiration of this Agreement.

     4.3 No Unauthorized Use or Disclosure. Executive will not, at any time during or after
Executive’s employment by Company, make any unauthorized disclosure of any confidential business
information or trade secrets of Company or its affiliates, or make any use thereof, except in the
carrying out of Executive’s employment responsibilities hereunder. Affiliates of the Company shall
be third party beneficiaries of Executive’s obligations under this paragraph. As a result of
Executive’s employment by Company, Executive may also from time to time have access to, or
knowledge of, confidential business information or trade secrets of third parties, such as
customers, suppliers, partners, joint venturers, and the like, of Company and its affiliates.
Executive also agrees to preserve and protect the confidentiality of such third party confidential
information and trade secrets to the same extent, and on the same basis, as Company’s confidential
business information and trade secrets.

     4.4 Remedies. Executive acknowledges that money damages would not be sufficient remedy for
any breach of this Article by Executive, and Company shall be entitled to specific performance and
injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be
deemed the exclusive remedies for a breach of this Article, but shall be in addition to all
remedies available at law or in equity to Company, including the recovery of damages from
Executive.

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ARTICLE 5: NONCOMPETITION OBLIGATIONS

     5.1 In General. Nothing in this Agreement shall be construed to prevent or restrain Executive
from practicing law upon termination or expiration of this Agreement for any reason; provided
however, that Executive shall, for the term of employment by the Company and thereafter, avoid
conflicts of interest with the Company and its Affiliates according to the obligations and duties
of loyalty to Company placed upon Executive by law.

     5.2 Enforcement and Remedies. Executive acknowledges that money damages would not be
sufficient remedy for any breach of this Article by Executive, and Company shall be entitled to
specific performance and injunctive relief as remedies for such breach or any threatened breach.
Such remedies shall not be deemed the exclusive remedies for a breach of this Article, but shall be
in addition to all remedies available at law or in equity to Company, including without limitation,
the recovery of damages from Executive.

ARTICLE 6: EFFECT OF TERMINATION ON COMPENSATION;

ADDITIONAL PAYMENTS

     6.1 Defined Terms. For purposes of this Article 6, the following terms shall have the
meanings indicated:

     “Change in Control” means (i) a merger of Company with another entity, a
consolidation involving Company, or the sale of all or substantially all of the assets of
Company to another entity if, in any such case, (A) the holders of equity securities of
Company immediately prior to such transaction or event do not beneficially own immediately
after such transaction or event equity securities of the resulting entity entitled to 60% or
more of the votes then eligible to be cast in the election of directors generally (or
comparable governing body) of the resulting entity in substantially the same proportions
that they owned the equity securities of Company immediately prior to such transaction or
event or (B) the persons who were members of the Board of Directors immediately prior to
such transaction or event shall not constitute at least a majority of the board of directors
of the resulting entity immediately after such transaction or event, (ii) the dissolution or
liquidation of Company, (iii) when any person or entity, including a “group” as contemplated
by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, acquires or gains
ownership or control (including, without limitation, power to vote) of more than 50% of the
combined voting power of the outstanding securities of, (A) if Company has not engaged in a
merger or consolidation, Company, or (B) if Company has engaged in a merger or
consolidation, the resulting entity, or (iv) as a result of or in connection with a
contested election of directors, the persons who were members of the Board of Directors
immediately before such election shall cease to constitute a majority of the Board of
Directors. For purposes of the preceding sentence, (1) “resulting entity” in the context of
a transaction or event that is a merger, consolidation or sale of all or substantially all
assets shall mean the surviving entity (or acquiring entity in the case of an asset sale)
unless the surviving entity (or acquiring entity in the case of an asset sale) is a
subsidiary of another entity and the holders of common stock of Company

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receive capital stock of such other entity in such transaction or event, in which event
the resulting entity shall be such other entity, and (2) subsequent to the consummation of a
merger or consolidation that does not constitute a Change in Control, the term “Company”
shall refer to the resulting entity and the term “Board of Directors” shall refer to the
board of directors (or comparable governing body) of the resulting entity.

     “Termination Benefits” means (i) a lump sum cash payment equal to 200% of the
sum of (A) Executive’s annual base salary at the rate in effect under paragraph 3.1 on the
date of termination of Executive’s employment and (B) the highest annual incentive
compensation payment paid, or determined by the Board (or the applicable committee thereof)
and to be paid, to Executive by Company (pursuant to paragraph 3.2 or otherwise) in respect
of any of the three years immediately prior to the date of termination of Executive’s
employment, and (ii) notwithstanding anything to the contrary set forth in the Company’s
other applicable plans and agreements, all of the outstanding stock options, restricted
awards and other equity based awards granted by Company to Executive shall become fully
vested and immediately exercisable in full on the date of termination of Executive’s
employment. Notwithstanding anything in this Agreement to the contrary, if Executive is
entitled to Termination Benefits under any clause in this Agreement, then Executive shall
not also be entitled to additional Termination Benefits under any other clause of this
Agreement.

     6.2 By Expiration. If Executive’s employment hereunder shall terminate upon expiration of the
term provided in paragraph 2.1 hereof because Executive has provided the notice contemplated in
such paragraph to Company, then all compensation and all benefits to Executive hereunder shall
continue to be provided until the expiration of such term and such compensation and benefits shall
terminate contemporaneously with termination of his employment. If Executive’s employment
hereunder shall terminate upon expiration of the term provided in paragraph 2.1 hereof because
Company has provided the notice contemplated in such paragraph to Executive, then (i) all
compensation and all benefits to Executive hereunder shall continue to be provided until the
expiration of such term, (ii) such compensation and benefits shall terminate contemporaneously with
termination of his employment, and (iii) Company shall provide Executive with the Termination
Benefits. Any lump sum cash payment due to Executive pursuant to clause (iii) of the preceding
sentence shall be paid to Executive within five business days of the date of Executive’s
termination of employment with Company.

     6.3 By Company. If Executive’s employment hereunder shall be terminated by Company prior to
expiration of the term provided in paragraph 2.1, then, upon such termination, regardless of the
reason therefor, all compensation and benefits to Executive hereunder shall terminate
contemporaneously with the termination of such employment; provided, however, that:

     (i) if such termination shall be for a reason encompassed by paragraph 2.2(i), then
Company shall pay to Executive (or, in the event of Executive’s death, his designated
beneficiary or his estate if Executive does not have a beneficiary designation on file with
Company for this purpose) a lump-sum payment equal to six months of his base salary at the
rate in effect under paragraph 3.1 on the date of such termination; and

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     (ii) if such termination shall be for any reason other than those encompassed by
paragraphs 2.2 (i) or (ii), then Company shall provide Executive with the Termination
Benefits.

Any lump-sum cash payment due to Executive (or his designated beneficiary, as the case may be)
pursuant to the preceding sentence shall be paid to Executive within five business days of the date
of Executive’s termination of employment with Company.

     6.4 By Executive. If Executive’s employment hereunder shall be terminated by Executive prior
to expiration of the term provided in paragraph 2.1, then, upon such termination, regardless of the
reason therefor, all compensation and benefits to Executive hereunder shall terminate
contemporaneously with the termination of such employment; provided, however, that:

     (i) if such termination occurs for a reason encompassed by paragraph 2.3(i), then
Company shall provide Executive with the Termination Benefits; and

     (ii) if such termination shall occur within the 180-day period beginning on the date
upon which a Change in Control occurs, then Company shall provide Executive with the
Termination Benefits.

     Any lump sum cash payment due to Executive pursuant to this paragraph shall be paid to Executive
within five business days of the date of Executive’s termination of employment with Company.

     6.5 Death of Executive. Upon the date of death of Executive, the Agreement shall terminate
and Company shall pay to Executive’s designated beneficiary (or his estate if Executive does not
have a beneficiary designation on file with Company for this purpose) a lump-sum payment equal to
six months of his base salary at the rate in effect under paragraph 3.1 on the date of such
termination, such payment to be made as soon as practicable following such death, but in no event
later than the later of (i) the end of the calendar year of the date of death of Executive or (ii)
the 75th day following the date of death of Executive.

     6.6 Additional Payments by Company.

     (a) Notwithstanding anything to the contrary in this Agreement, in the event that any payment
or distribution by Company to or for the benefit of Executive, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise (a
“Payment”), would be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties with respect to such excise tax (such excise tax, together with any such
interest or penalties, are hereinafter collectively referred to as the “Excise Tax”),
Company shall pay to Executive an additional payment (a “Gross-up Payment”) in an amount
such that after payment by Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including any Excise Tax imposed on any Gross-up Payment, Executive retains
an amount of the Gross-up Payment equal to the Excise Tax imposed upon the Payments. Company and
Executive shall make an initial determination as to whether a Gross-up Payment is required and the
amount of any such Gross-up Payment, and any Gross-up Payment so determined shall be paid to
Executive as a lump-sum payment on the date the related Payment is made. Unless

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withheld and remitted by the Company, Executive shall timely remit any required Excise Tax
payments to the Internal Revenue Service.

     (b) Executive shall notify Company in writing of any claim by the Internal Revenue Service
which, if successful, would require Company to make a Gross-up Payment (or a Gross-up Payment in
excess of that, if any, initially determined by Company and Executive) within 10 days of the
receipt of such claim. Company shall notify Executive in writing at least 10 days prior to the due
date of any response required with respect to such claim if it plans to contest the claim. If
Company fails to timely notify Executive whether it will contest such claim or Company determines
not to contest such claim, then Company shall immediately pay to Executive the portion of such
claim, if any, which it has not previously paid to Executive. If Company decides to contest such
claim, Executive shall cooperate fully with Company in such action; provided, however, Company
shall bear and pay directly or indirectly all costs and expenses (including additional interest and
penalties) incurred in connection with such action and shall indemnify and hold Executive harmless,
on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with
respect thereto, imposed as a result of Company’s action.

     (c) Any Gross-up Payment, reimbursement, indemnification or in-kind provision of expenses
under clause (b) shall be made by Company to Executive promptly after incurrence thereof by
Executive but in no event later than the end of the calendar year next following the calendar year
in which Executive remits the related taxes that are the subject of the audit or litigation to the
Internal Revenue Service (or, if no taxes are remitted, the end of the calendar year following the
calendar year in which the audit is completed, settled or otherwise resolved) provided, that
Executive must provide reasonable documentation to Company to substantiate taxes paid and expenses
incurred. If, as a result of Company’s action with respect to a claim, Executive receives a refund
of any amount paid by Company with respect to such claim, Executive shall promptly pay such refund
to Company.

     6.7 No Duty to Mitigate Losses. Executive shall have no duty to find new employment following
the termination of his employment under circumstances which require Company to pay any amount to
Executive pursuant to this Article 6. Any salary or remuneration received by Executive from a
third party for the providing of personal services (whether by employment or by functioning as an
independent contractor) following the termination of his employment under circumstances pursuant to
which this Article 6 apply shall not reduce Company’s obligation to make a payment to Executive (or
the amount of such payment) pursuant to the terms of this Article 6.

     6.8 Liquidated Damages. In light of the difficulties in estimating the damages for an early
termination of this Agreement, Company and Executive hereby agree that the payments, if any, to be
received by Executive pursuant to this Article 6 shall be received by Executive as liquidated
damages. Employee shall have no liability for his termination of this Agreement in accordance with
paragraph 2.3.

     6.9 Other Benefits. This Agreement governs the rights and obligations of Executive and
Company with respect to Executive’s base salary and certain perquisites of employment. Except as
expressly provided herein, Executive’s rights and obligations both during the term of

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his employment and thereafter with respect to stock options, restricted stock, incentive and
deferred compensation, life insurance policies insuring the life of Executive, and other benefits
under the plans and programs maintained by Company shall be governed by the separate agreements,
plans and other documents and instruments governing such matters.

ARTICLE 7: MISCELLANEOUS

     7.1 Notices. For purposes of this Agreement, notices and all other communications provided
for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	If to Company to:
	 	W-H Energy Services, Inc.
	 

	 	 	 	2000 West Sam Houston Parkway South
	 

	 	 	 	Suite 500
	 

	 	 	 	Houston, Texas 77042
	 

	 	 	 	Attention: Chief Executive Officer
	 
	 	 	 	 
	 

	 	If to Executive to:
	 	Stuart J. Ford
	 

	 	 	 	18706 Autumn Breeze
	 

	 	 	 	Spring, TX 77379

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices or changes of address shall be effective only upon receipt.

     7.2 Applicable Law. This Agreement is entered into under, and shall be governed for all
purposes by, the laws of the State of Texas.

     7.3 No Waiver. No failure by either party hereto at any time to give notice of any breach by
the other party of, or to require compliance with, any condition or provision of this Agreement
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

     7.4 Severability. If a court of competent jurisdiction determines that any provision of this
Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision
shall not affect the validity or enforceability of any other provision of this Agreement, and all
other provisions shall remain in full force and effect.

     7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which together will constitute one and the same
Agreement.

     7.6 Withholding of Taxes and Other Employee Deductions. Company may withhold from any
benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as
may be required pursuant to any law or governmental regulation or ruling and all other normal
employee deductions made with respect to Company’s employees generally.

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     7.7 Headings. The paragraph headings have been inserted for purposes of convenience and shall
not be used for interpretive purposes.

     7.8 Gender and Plurals. Wherever the context so requires, the masculine gender includes the
feminine or neuter, and the singular number includes the plural and conversely.

     7.9 Affiliate. As used in this Agreement, the term “affiliate” shall mean any entity which
owns or controls, is owned or controlled by, or is under common ownership or control with, Company.

     7.10 Assignment. This Agreement shall be binding upon and inure to the benefit of Company and
any successor of Company, by merger or otherwise. Except as provided in the preceding sentence,
this Agreement, and the rights and obligations of the parties hereunder, are personal and neither
this Agreement, nor any right, benefit, or obligation of either party hereto, shall be subject to
voluntary or involuntary assignment, alienation or transfer, whether by operation of law or
otherwise, without the prior written consent of the other party.

     7.11 Term. This Agreement has a term co-extensive with the term of employment provided in
paragraph 2.1. Termination shall not affect any right or obligation of any party which is accrued
or vested prior to such termination.

     7.12 Entire Agreement. Except as provided in (i) the written benefit plans and programs
referenced in paragraph 6.8 (and any agreements between Company and Executive that have been
executed under such plans and programs) and (ii) any signed written agreement contemporaneously or
hereafter executed by Company and Executive, this Agreement constitutes the entire agreement of the
parties with regard to the subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to employment of
Executive by Company. Without limiting the scope of the preceding sentence, all understandings and
agreements preceding the date of execution of this Agreement and relating to the subject matter
hereof (other than the agreements described in clause (i) of the preceding sentence) are hereby
null and void and of no further force and effect. Any modification of this Agreement will be
effective only if it is in writing and signed by the party to be charged.

     7.13 Section 409A. The parties intend that this Agreement be interpreted in a manner to be
exempt from the requirements of Section 409A of the Code and, where not so exempt, to be in
compliance therewith. Executive (or his estate or beneficiary) shall have no right to dictate the
taxable year in which any payment hereunder should be paid. Notwithstanding any provision of this
Agreement to the contrary, only to the extent that this Agreement is subject to the requirements of
Section 409A of the Code and is not exempted from such requirements, if at the time of Executive’s
termination of employment with the Company, Executive is a “specified employee” as defined in
Section 409A of the Code, no payment or benefit that results from Executive’s termination of
employment will be provided until the date which is six months after the date of Executive’s
termination of employment. Payments to which Executive would otherwise be entitled during the
six-month period described above will be accumulated and paid in a lump sum on the first day of the
seventh month after the date of Executive’s termination of employment. Notwithstanding anything to
the contrary, to the extent required by Section 409A

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of the Code (a) the amount of expenses eligible for reimbursement or to be provided as an
in-kind benefit under this Agreement with respect to a calendar year may not affect the expenses
eligible for reimbursement or to be provided as an in-kind benefit in any other calendar year and
(b) the right to reimbursement or in-kind benefits under this Agreement shall not be subject to
liquidation or exchange for another benefit.

(Signature page follows)

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the first day of
January, 2008, to be effective as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	W-H ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kenneth T. White, Jr. 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Kenneth T. White, Jr.	 	 
	 

	 	Title:
	 	Chairman, President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Stuart J. Ford 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Stuart J. Fordexv10w1

 

Exhibit 10.1

THE WASHINGTON POST COMPANY

INCENTIVE COMPENSATION PLAN

As amended and restated May 11, 2006

 

 

Table of Contents

	 	 	 	 	 	 	 
	1.	 	Purposes
	 	 	1	 
	 	 	 
	 	 	 	 
	2.	 	Administration of the Plan
	 	 	1	 
	 	 	 
	 	 	 	 
	3.	 	Participation
	 	 	1	 
	 	 	 
	 	 	 	 
	4.	 	Duration of Plan
	 	 	2	 
	 	 	 
	 	 	 	 
	5.	 	Annual Incentive Provision
	 	 	2	 
	 	 	 
	 	 	 	 
	6.	 	Determination of Annual Awards
	 	 	3	 
	 	 	 
	 	 	 	 
	7.	 	Method Payment of Annual Awards and Time of Payment
	 	 	4	 
	 	 	 
	 	 	 	 
	8.	 	Long-Term Incentive Award Cycles; Awards
	 	 	4	 
	 	 	 
	 	 	 	 
	9.	 	Restricted Stock
	 	 	5	 
	 	 	 
	 	 	 	 
	10.	 	Performance Units
	 	 	8	 
	 	 	 
	 	 	 	 
	11.	 	Expenses
	 	 	10	 
	 	 	 
	 	 	 	 
	12.	 	Adjustments in Class B Common Stock
	 	 	10	 
	 	 	 
	 	 	 	 
	13.	 	Amendment
	 	 	10	 

i

 

THE WASHINGTON POST COMPANY

INCENTIVE COMPENSATION PLAN

As Amended and Restated

through May 11, 2006

1. Purposes

     The purposes of this Incentive Compensation Plan (hereinafter called the Plan) of The
Washington Post Company, a Delaware corporation (hereinafter called the Company), are (a) to
provide greater incentives to key employees to increase the profitability of the Company and its
subsidiaries and (b) to strengthen the ability of the Company and its subsidiaries to attract,
motivate and retain persons of merit and competence upon which, in large measure, continued growth
and profitability depend.

2. Administration of the Plan

     The Plan shall be administered by the Compensation Committee of the Board of Directors of the
Company (hereinafter called the Committee) as constituted from time to time by the Board of
Directors. No member of the Committee shall be eligible to participate in the Plan. The Committee
shall have full power and authority to make all decisions and determinations with respect to the
Plan, including without limitation the power and authority to interpret and administer the Plan,
adopt rules and regulations and establish terms and conditions, not inconsistent with the
provisions of the Plan, for the administration of its business and the implementation of the Plan.

3. Participation

     (a) Participation in the Plan shall be extended to senior executives, key managers
and key personnel of the Company and its subsidiaries who, in the opinion of the Committee, are
mainly responsible for the management of the operations of the Company and its subsidiaries or who
are otherwise in a position to make substantial contributions to the management, growth and/or
success of the business of the Company.

     (b) Directors, as such, shall not participate in the Plan, but the fact that an employee is
also a Director of the Company or a subsidiary shall not prevent his or her participation.

     (c) As used in the Plan, the term “Company” shall mean The Washington Post Company and any
subsidiary thereof.

1

 

     (d) The Plan shall not be deemed to preclude the making of any award pursuant to any other
compensation, incentive, bonus or stock option plan which may be in effect from time to time.

4. Duration of Plan

     The Plan shall remain in effect until terminated by the Board of Directors; provided, however,
that the termination of the Plan shall not affect the delivery or payment of any award made prior
to the termination of the Plan.

5. Annual Incentive Provision

     (a) For each fiscal year and except as set forth in paragraph 5(f) below, the
Committee may make annual incentive awards in an aggregate amount not to exceed the Maximum
Incentive Credit (as hereinafter defined) for such year. All annual incentive awards granted under
the Plan are hereinafter collectively referred to as “Annual Awards”.

     (b) The term “Maximum Incentive Credit”, as used herein, shall mean for any year an amount
determined as follows: (i) there shall first be calculated an amount equal to twelve (12) percent
of Stockholders’ Equity (hereinafter called the “Basic Return on Equity”); (ii) there shall then be
deducted from Consolidated Profit Before Income Taxes an amount equal to the Basic Return on
Equity, the excess (if any) being hereinafter called “Incentive Profit”; (iii) the Maximum
Incentive Credit shall be ten (10) percent of Incentive Profit. The term “Consolidated Profit
Before Income Taxes”, as used herein, shall mean for any year the sum of (i) the profit before
income taxes (exclusive of special credits and charges and extraordinary items) included in the
Consolidated Statement of Income of the Company for such year and (ii) the amount of incentive
compensation provided for in computing such profit before income taxes. The term “Shareholders’
Equity”, as used herein, shall mean for any year the amount reported as stockholders’ equity (or
the comparable item, however designated) at the end of the preceding year as included in the
Consolidated Balance Sheet of the Company for the preceding year, with appropriate pro rata
adjustments, as approved by the Committee, for any change during the year arising from any increase
or decrease in outstanding capital stock.

     (c) During the last month of each fiscal year, the Vice President-Finance of the Company
shall advise the Committee of the estimated Maximum Incentive Credit for such fiscal year and the
Committee shall determine the employees who are to receive awards for such fiscal year and the
amount of each such award.

     (d) As soon as practicable after the close of each fiscal year, the Company’s independent
public accountants shall calculate and certify to the Committee the Maximum Incentive Credit for
such fiscal year.

     (e) The amount determined and reported by the Company’s independent auditors as the Maximum
Incentive Credit for any fiscal year shall be final, conclusive and

2

 

binding upon all parties, including the Company, its stockholders and employees, notwithstanding
any subsequent special item or surplus charge or credit that may be considered applicable in whole
or in part to such fiscal year; provided that if the amount actually awarded for any fiscal year
should later be determined by a court of competent jurisdiction to have exceeded the Maximum
Incentive Credit for such fiscal year, the Maximum Incentive Credit for the fiscal year next
succeeding such determination shall be reduced by the amount of such excess. Any such excess shall
thus be corrected exclusively by adjustments of the amounts subsequently available for awards and
not by recourse to the Company, the Board of Directors, the Committee, any participant or any other
person.

     (f) Notwithstanding the foregoing, prior to the commencement of each fiscal year the
Committee may, in the case of certain individuals who have made or have the potential to make
extraordinary contributions to the growth and profitability of the Company, grant special annual
incentive awards for such coming fiscal year (“Special Annual Incentive Awards”), the payout value
of which will be based entirely on goals established in writing by the Committee at the time of
grant relating to one or more of the following factors: operating income, cash flow, earnings per
share, return on assets, return on equity, operating margins, economic value added (EVA), cash flow
margins, shareholder return, cost control and/or other quantitative revenue, growth or
profitability measurements, which may be in respect of the Company as a whole, or of any business
unit thereof. The payout value of any Special Annual Incentive Awards granted with respect to a
fiscal year shall not be included in calculating the limit on the aggregate amount of Annual Awards
otherwise payable for such fiscal year provided for in paragraph 5(a) above.

6. Determination of Annual Awards 

     The Committee shall, consistent with all applicable provisions of the Plan, determine the
participants to receive Annual Awards for each fiscal year, the amount and the form of each such
award, and the other terms and conditions applicable thereto. The aggregate value of the Annual
Awards (including the payout value of any Special Annual Incentive Award) payable to any
participant with respect to any fiscal year shall not exceed in value the greater of 200% of a
participant’s base earnings in the fiscal year to which such awards apply or $10 million or, in the
case of a participant who is the president or chief executive officer of one of the Company’s
business units (not including the President or Chief Executive Officer of the Company), 1% of such
business unit’s revenue for the fiscal year with respect of which the award is to be paid.

     In determining the terms and conditions of the Annual Award, the Committee shall, in the case
of each participant who is an “executive officer” of the Company (for purposes of Item 402 of
Regulation S-K under the Securities Exchange Act of 1934), establish in writing, not later than 90
days after the commencement of the fiscal year, performance goals relating to one or more of the
following: operating income, cash flow, earnings per share, return on assets, return on equity,
operating margins, economic value added (EVA), cash flow margins, shareholder return, cost control
and/ revenue growth measurements, which may be in respect of the Company, as a whole, or any

3

 

business unit thereof, which will have to be achieved if such executive officer is to receive
payment for an Annual Award.

7. Method Payment of Annual Awards and Time of Payment

     (a) All Annual Awards shall be made in cash.

     (b) All Annual Awards shall be paid in a lump sum as promptly as practicable in the calendar
year that begins closest to the last day of the fiscal year to which the award relates, except as
otherwise provided herein below.

     (c) The Committee may, in its sole discretion, establish terms and conditions under which a
participant may elect to defer the payment of an award in whole or in part pursuant to the terms of
The Washington Post Company Deferred Compensation Plan (the “Deferred Compensation Plan”).

8. Long-Term Incentive Award Cycles; Awards

     (a) During the term of the Plan, the Committee shall from time to time establish
Award Cycles, each of which shall commence on a date specified by the Committee and shall terminate
no earlier than the third anniversary date of the commencement of such Award Cycle or such other
anniversary date as specified by the Committee; provided, however, an Award Cycle shall (i)
commence on the first day of a fiscal year of the Company, (ii) consist of not less than three nor
more than four fiscal years of the Company, and (iii) at least two such fiscal years shall elapse
between the beginning of consecutive Award Cycles.

     (b) For each Award Cycle, the Committee shall

	 	(i)	 	designate, subject to paragraph 10(a), the
participants who are to receive awards of Performance Units for such
Award Cycle and the number of Performance Units awarded to each such
participant, and
	 
	 	(ii)	 	establish, subject to paragraph 10(b), the method
for determining at the end of such Award Cycle the value of a
Performance Unit awarded at the beginning of such Award Cycle.

     (c) In addition, from time to time the Committee may deem it desirable to grant
long-term incentive awards not based on an Award Cycle established under paragraph 8(a)
and the Committee shall have the discretion to (A) designate the participants who are to
receive such awards and (B) establish such terms and conditions applicable to such
long-term incentive awards (“Special Long Term Incentive Award”).

4

 

9. Restricted Stock

     (a) During the term of the Plan, the Committee shall from time to time designate the
participants who are to receive awards of restricted shares of the Class B Common Stock of the
Company (such restricted shares being hereinafter called Restricted Stock), the number of shares of
Restricted Stock awarded to each such participant, and the date on which full ownership of such
shares of Restricted Stock will vest in such participant (such being hereinafter called the Vesting
Date). In no case may the Vesting Date designated by the Committee be less than one year nor more
than six years from the date of the award of Restricted Stock to which it relates. If the
Committee so determines, a single award of Restricted Stock can provide for more than one Vesting
Date with a portion of the full award to vest on each specified Vesting Date. To each participant
designated to receive an award of Restricted Stock, there shall be (1) issued (subject to
subparagraph (b) below) a stock certificate, registered in the name of such participant, or (2) a
book entry made in the name of such participant, in each case representing such number of shares of
Restricted Stock awarded to such participant; provided, however, that at any time, not more than
10,000 share of Restricted Stock may be awarded to any participant under all outstanding awards of
Restricted Stock.

     (b) Within 30 days after the effective date of a Restricted Stock award, each recipient of
such an award shall deliver to the Company (i) an executed copy of a Restricted Stock Agreement
containing the terms and provisions set forth in subparagraph (c) below and (ii) a stock power
executed in blank. Upon receipt of such agreement and stock power executed by the participant, the
Company shall cause the stock certificate referred to in subparagraph (a) above to be issued in the
name of the participant and delivered to the Secretary of the Company in custody for such
participant or the book entry referred to in subparagraph (a) above to be made in the name of the
participant on the books of the Company. The failure of a participant to return such agreement and
stock power within such 30-day period without cause shall result in cancellation of the Restricted
Stock Award to such participant, and no stock certificate therefor shall be issued in the
participant’s name or book entry be made in the participant’s name.

     (c) Each Restricted Stock Agreement accompanying an award of Restricted Stock shall contain
the following provisions, as applicable, together with such other provisions as the Committee shall
determine:

	 	(i)	 	Except as hereinafter provided, none of the shares
of Restricted Stock subject thereto may be sold, transferred,
assigned, pledged or otherwise disposed of before the Vesting Date(s)
established in the applicable Restricted Stock Agreement.
	 
	 	(ii)	 	Except as provided below, if the participant is
continuously employed by the Company until the occurrence of an
applicable Vesting Date, the restriction set forth in

5

 

	 	 	 	subparagraph (c)(i) above shall terminate on such Vesting Date as
to all the shares of Restricted Stock associated with that Vesting
Date. In the event that the participant takes one or more unpaid
leave(s) of absence where the leave is greater than 90 days in
duration at any time before an award of Restricted Stock has
vested, the Vesting Date or Dates for such grant shall be
extended by a period equal to the aggregate number of days that
the participant was out on such leave(s) of absence (the “Extended
Vesting Date(s)”) and the restrictions set forth in subparagraph
(c)(i) above shall then terminate on such Extended Vesting Date or
Dates.
	 
	 	 	 	Notwithstanding any of the foregoing, in the case of a participant
who is an “executive officer” of the Company at the time of the
award, the Committee shall, prior to the effective date of
Restricted Stock Award, establish in writing a formula based on
one or more of the following: cash flow, operating income,
earnings per share, economic value added (EVA), return on assets,
total return on equity of the Company, operating margins, cash
flow margins, shareholder return, cost control and/or quantitative
revenue, growth or profitability measurements over the period of
time it takes for the Restricted Stock Award to vest fully, which
will have to be achieved if the restriction set forth in
subparagraph (c)(i) above is to terminate as provided in this
subparagraph (c)(ii).
	 
	 	(iii)	 	If the participant’s employment by the
Company terminates for any reason (whether voluntary or
involuntary and including death or disability) before the
Vesting Date or Extended Vesting Date, as the case may be,
the ownership of all shares of Restricted Stock shall revert
to the Company, unless termination occurs two or more years
from the effective date of the award and the Committee, in
its sole discretion, approves the vesting of a percentage of
the number of shares of Restricted Stock originally awarded
(rounded to the nearest whole share), if any, provided,
however, that the percentage determined by the Committee may
not exceed the percentage calculated by dividing (i) the
number of full months elapsed from the effective date of the
award to the date of such termination (less the period of
full months that a participant was on one or more unpaid
leaves of absence where the leave is greater than 90

6

 

	 	 	 	days during such period by (ii) the number of full months
from such effective date to the Vesting Date for such
award (such percentage being hereinafter called the
Pro-Rated Percentage).
	 
	 	(iv)	 	Promptly after the restriction set forth in
subparagraph (c)(i) above shall terminate as to any shares of
Restricted Stock, the participant to whom such shares were awarded
(or the participant’s estate, as the case may be) shall pay to the
Company the amount of all Federal, state and local withholding taxes
payable on the compensation represented by such shares, and upon
receipt of such payment the Company shall deliver to the participant
a stock certificate or certificates for such shares. Alternatively,
pursuant to rules established by the Compensation Committee, a
participant may elect to receive all or a portion of the
participant’s award in the form of cash in lieu of shares, based on
the fair market value (the mean between the high and low price per
share on the New York Stock Exchange) of such shares on the date the
restrictions set forth in subparagraph (c)(i) above shall terminate;
and the Company will deduct the amount of all withholding taxes
payable on the compensation represented by such shares from the cash
value of the shares to be paid to the participant.
	 
	 	(v)	 	As long as shares of Restricted Stock remain
registered in the name of a participant, such participant shall be
entitled to all the attributes of ownership of such shares (subject
to the restriction on transfer referred to above), including the
right to vote such shares and to receive all dividends declared and
paid on such shares.

     (d) All shares of Common Stock issued to recipients of Restricted Stock awards shall be
issued from previously issued and outstanding shares held in the Treasury of the Company.

     (e) The total number of shares of Common Stock that may be awarded as Restricted Stock under
the Plan shall not exceed 425,000 shares; provided, however, that effective November 1, 1991,
shares which revert to the Company in accordance with paragraph 9(c)(iii) shall be deemed to have
been awarded as Restricted Stock for purposes of determining the number of shares of Restricted
Stock remaining available to be awarded hereunder.

7

 

10. Performance Units and Special Long-Term Incentive Awards

     (a) During the term of the Plan, the Committee shall from time to time designate the
participants who are to receive awards of Performance Units and Special Long-Term Incentive Awards,
the number of Performance Units or other terms and conditions as may be applicable, and the date on
which the participant shall be entitled to payment under a Special Long-Term Incentive Award (such
being hereinafter called the “Incentive Vesting Date”). In no case may the Incentive Vesting Date
designated by the Committee be less than one year nor more than six years from the date of the
award of the Special Long-Term Incentive Award to which it relates. If the Committee so
determines, a single award of a Special Long-Term Incentive Award can provide for more than one
Vesting Date with a portion of the full award to vest on each specified Vesting Date. To each
participant designated to receive an award of Performance Units there shall be issued a Performance
Unit Certificate representing such number of Performance Units with a nominal value of $100 each as
the Committee shall determine; provided, however, that the total nominal value of Performance Units
awarded to a participant for any Award Cycle shall not exceed 300% of such participant’s base
salary at the date of such award.

     (b) No later than 90 days after the beginning of each Award Cycle or the beginning of the
applicable vesting period of a Special Long-Term Incentive Award, the Committee shall establish in
writing a method for determining the earned value of (A) a Performance Unit at the end of such
Award Cycle (hereinafter called the Payout Value) or (B) the Special Long-Term Incentive Award, in
either case based on performance goals over the period of the Award Cycle or the vesting period in
the case of a Special Long-Term Incentive Award related to one or more of the following:
operating income, cash flow, shareholder return, earnings per share, return on assets, return on
equity, operating margins, cost control, customer satisfaction, cash flow margins, economic value
added (EVA) and/or other quantitative revenue, growth or profitability measurements, which may be
in respect of the Company, as a whole, or any business unit thereof; provided, however, that such
method shall provide that (i) no Payout Value may exceed $200 and the payment of an award of
Performance Units to any participant at the end of an Award Cycle shall be the lesser of $5 million
or the amount determined by multiplying the Payout Value times the number of Performance Units
granted to such participant, (ii) the payment of a Special Long-Term Incentive Award to any
participant at the end of the vesting period for such award shall not exceed $5 million and (iii)
the aggregate value of the Performance Units and any Special Long-Term Incentive Award payable to
any participant with respect to any fiscal year shall not exceed $10 million. Notwithstanding the
foregoing, in the case of a participant who is the president or chief executive officer of one of
the Company’s business units (not including the President or Chief Executive Officer of the
Company), the aggregate value of the Performance Units and any Special Long-Term Incentive Award
payable to such participant with respect to any fiscal year shall not exceed in value 1% of such
business unit’s revenue for the for the fiscal year with respect of which the award is to be paid.

     (c) If a participant’s employment by the Company terminates for any reason (whether voluntary
or involuntary and including death or disability) before the end of an

8

 

Award Cycle for which the participant was granted Performance Units or before Incentive Vesting
Date, the participant shall be entitled to such percentage of the Payout Value of said Performance
Units or the payment due under said Special Long-Term Incentive Award, if any, as shall be
determined after the end of such Award Cycle or the Incentive Vesting Date, in accordance with the
following provisions:

	 	(i)	 	if termination occurs two or more years after the
effective date of the award, such percentage, if any (but not greater
than the Pro-Rated Percentage), as the Committee may, in its sole
discretion, determine; and
	 
	 	(ii)	 	if termination occurs within two years from the
effective date of the award, no percentage of the Payout Value or
payment under a Special Long-Term Incentive Award shall be paid.

     (d) As promptly as practicable after (i) the end of each Award Cycle and in the calendar year
that begins closest to the last day of the Award Cycle or (ii) the Incentive Vesting Date, but no
later than 75 days after the end of the calendar year of the Incentive Vesting Date, the Payout
Value of a Performance Unit awarded at the beginning of such Award Cycle or the payment due under
the Special Long-Term Incentive Award, as the case may be, shall be calculated and paid (unless
otherwise deferred as provided herein) in cash to the recipients awarded such awards after
deduction of all Federal, state and local withholding taxes payable on the compensation represented
thereby. In addition, the Committee may, in its sole discretion, establish terms and conditions
under which a participant may elect to defer the payment of the Payout Value of a Performance Unit
or the payment of the Special Long-Term Incentive Award in whole or in part pursuant to the terms
of the Deferred Compensation Plan.

     (e) For purposes of paragraphs 10(c) and 10(d), and notwithstanding any contrary terms
thereof , in the event a participant takes one or more unpaid leave(s) of absence where the leave
is greater than ninety (90) days in duration at any time during an Award Cycle or during the
vesting period of a Special Long-Term Incentive Award, the payment of the Payout Value of the
Performance Units or Special Long-Term Incentive Award payable to that participant shall be
determined as if the duration of the Award Cycle or applicable the vesting period were extended by
a period equal to the number of days that the participant was out on such leave(s) of absence and
by not giving the participant credit for the period of employment during the Award Cycle or vesting
period when the participant was on such leave of absence. Thus, for example, if a participant was
away from work on a leave of absence for one year during a four-year Award Cycle, the percentage of
the Payout Value of the Performance Units payable to that participant would be 100% only if the
participant had at least one year of active employment after the end of the Award Cycle, and if
such additional period of active employment was not completed, the Committee, in its exercise of
discretion to determine a Pro-Rated Percentage under paragraph 10(c)(i), would make that
determination in a manner consistent with paragraph 9(c)(iii)(A). In any such case, the Payout
Value of the Performance Units or the payment of the Special Long-Term Incentive Award payable to
the participant shall be paid as soon

9

 

as practicable after the participant becomes entitled to payment by completing the additional
period of active employment or by reason of the Committee’s exercise of discretion under paragraph
10(c)(i), but no later than seventy-five (75) days after the end of the calendar year in which the
participant attains such vested payment right.

     (f) At the end of each Award Cycle, the Committee may, in its sole discretion, award to those
senior executives of the Company and its subsidiaries who are not “executive officers” of the
Company and whose performance during such Award Cycle the Committee believes merits special
recognition cash bonuses in an aggregate amount not to exceed 10% of the aggregate Payout Value of
all Performance Units that become vested and payable with respect to such Award Cycle.

11. Expenses

     The expenses of administering this Plan shall be borne by the Company.

12. Adjustments in Class B Common Stock

     In the event of any change or changes in the outstanding shares of Common Stock by reason of
any stock dividend, split-up, recapitalization, combination or exchange of shares, merger,
consolidation, separation, reorganization, liquidation or the like, the class and aggregate number
of shares that may be awarded as Restricted Stock under the Plan after any such change shall be
appropriately adjusted by the Committee, whose determination shall be conclusive.

13. Amendment

     The Board of Directors of the Company shall have complete power and authority to amend,
suspend or discontinue this Plan; provided, however, that the Board of Directors shall not, without
the approval of the holders of a majority of the voting stock of the Company entitled to vote
thereon, (A) increase either (i) the maximum number of shares of Restricted Stock that may be
awarded under the Plan, (ii) the maximum number of shares of Restricted Stock or Performance Units
that may be awarded to a participant, (iii) the maximum Payout Value of a Performance Unit or a
Special Long-Term Incentive Award, or (iv) the percentage ceiling on the aggregate amount of
bonuses which may be awarded pursuant to paragraph 10(f) or (B) make any amendment which would
permit the incentive provision of any year provided in paragraph 5 hereof to exceed the limitations
set forth in said paragraph.

10

 

The Washington Post Company

Compensation Committee

January 18, 2007

Approval of Amendment of The Washington Post Company Incentive Compensation Plan

     RESOLVED the definition of “Maximum Incentive Credit” contained in paragraph 5(b) of
The Washington Post Company Incentive Compensation Plan, as amended and restated through
May 11, 2006, be, and hereby is, amended in its entirety to read as follows:

     “(b) The term ‘Maximum Incentive Credit’, as used herein, shall mean for any year an amount
determined as follows: (i) there shall first be calculated an amount equal to twelve (12) percent
of Stockholders’ Equity (hereinafter called the ‘Basic Return on Equity’); (ii) there shall then be
deducted from Consolidated Profit Before Income Taxes an amount equal to the Basic Return on
Equity, the excess (if any) being hereinafter called ‘Incentive Profit’; (iii) the Maximum
Incentive Credit shall be ten (10) percent of Incentive Profit. The term ‘Consolidated Profit
Before Income Taxes’, as used herein, shall mean for any year the sum of (i) the profit before
income taxes (exclusive of special credits and charges and extraordinary items) included in the
Consolidated Statement of Income of the Company for such year and (ii) the amount of incentive
compensation provided for in computing such profit before income taxes. The term ‘Shareholders’
Equity’, as used herein, shall mean for any year the amount reported as stockholders’ equity (or
the comparable item, however designated) at the end of the preceding year as included in the
Consolidated Balance Sheet of the Company for the preceding year, with appropriate pro rata
adjustments, as approved by the Committee, for any change during the year arising from any increase
or decrease in outstanding capital stock, less (effective January 1, 2007) the increase
in shareholders’ equity arising from the Company’s recognition of the full over-funded status of
its defined benefit pension plan in connection with a change in accounting (as required by
Statement of Financial Accounting Standards No. 158, ‘Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans.’)”

11

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