Document:

exv10w8

 

	 	 	 	 	 

ASSISTED LIVING CONCEPTS, INC.

EXHIBIT 10.8

SUMMMARY OF DIRECTOR COMPENSATION

     Directors who are not employees of Assisted Living Concepts, Inc. are paid an annual retainer
of $15,000 per year, a fee of $1,500 for each Board and committee meeting they attend, and $500 for
each telephonic Board or committee meeting they attend. In addition, the annual retainer for the
Board chairman is $50,000 and the annual retainer for the vice chairman is $25,000. The annual
retainer for the chair of the Audit Committee is an additional $15,000 and the annual retainer for
the other committee chairs is an additional $10,000. Directors are reimbursed for expenses
incurred in connection with attending Board and committee meetings.exv10w1

 

Exhibit 10.1

USG CORPORATION

NONQUALIFIED STOCK OPTION AGREEMENT

DATE OF GRANT: March 23, 2007

     WHEREAS,                      (the “Optionee”) is an employee of USG Corporation (the “Company”)
or a Subsidiary;

     WHEREAS, the Board of Directors of the Company (the “Board”) has granted to the Optionee,
effective as of March 23, 2007 (the “Date of Grant”), an Option Right (the “Option”) pursuant to
the Company’s Long-Term Incentive Plan, as amended (the
“Plan”) to purchase
_______ Common Shares
of the Company at a price of $49.61 per share, which represents the Market Value per Share on the
Date of Grant (the “Option Price”), subject to the terms and conditions of the Plan and the terms
and conditions hereinafter set forth;

     WHEREAS, the execution of a Nonqualified Stock Option Agreement substantially in the form
hereof to evidence the Option has been authorized by a resolution of the Board; and

     WHEREAS, the Option is intended as a nonqualified stock option and shall not be treated as an
“incentive stock option” within the meaning of that term under Section 422 of the Internal Revenue
Code of 1986, as amended.

     NOW, THEREFORE, the Company and the Optionee agree as follows:

	1.	 	Right to Exercise.

	 	(a)	 	Subject to Sections 1(b) and (c), Section 3 and Section 5 below, the Option
will become exercisable to the extent of twenty-five percent (25%) of the total number
of Common Shares underlying the Option on each of the first four anniversaries of the
Date of Grant if the Optionee remains continuously employed until such time. To the
extent the Option is exercisable, it may be exercised in whole or in part.
	 
	 	(b)	 	Notwithstanding Section 1(a) above, the Option shall become immediately
exercisable in full, if at any time prior to the termination of the Option, a Change in
Control shall occur.
	 
	 	(c)	 	Notwithstanding Section 1(a) above, if the Optionee should die or become
permanently and totally disabled while in the employ of the Company or any Subsidiary,
or the Optionee should Retire (as hereinafter defined) (“Retirement”), this Option
shall immediately become exercisable in full and shall remain exercisable until
terminated in accordance with Section 3 below. The Grantee shall be considered to have
become permanently and totally disabled if the Grantee has suffered a total disability
within the meaning of the Company’s Long-

 

 

	 	 	 	Term Disability Plan for Salaried Employees. “Retire” shall mean the Optionee’s
retirement under a retirement plan (including, without limitation, any supplemental
retirement plan) of the Company or any Subsidiary, or the Optionee’s retirement from
employment with the Company or any Subsidiary after completing at least three years
of continuous service with the Company or any Subsidiary and attaining the age of
62.

	2.	 	Payment. The Option Price shall be payable (a) in cash or by check acceptable to the
Company, (b) by actual or constructive transfer to the Company of nonforfeitable, unrestricted
Common Shares that have been owned by the Optionee for more than six (6) months prior to the
date of exercise, or (c) by a combination of such methods of payment. The requirement of
payment in cash shall be deemed satisfied if the Optionee shall have made arrangements
satisfactory to the Company with a bank or a broker who is a member of the National
Association of Securities Dealers, Inc. to sell on the exercise date a sufficient number of
the shares being purchased so that the net proceeds of the sale transaction will at least
equal the Option Price plus payment of any applicable withholding taxes and pursuant to which
the bank or broker undertakes to deliver the full Option Price plus payment of any applicable
withholding taxes to the Company on a date satisfactory to the Company, but not later than the
date on which the sale transaction will settle in the ordinary course of business.

	3.	 	Termination. This Option shall terminate on the earliest of the following dates:

	 	(a)	 	The date on which the Optionee ceases to be an employee of the Company or any
Subsidiary, if the Optionee’s employment with the Company or a Subsidiary is terminated
for Cause (“Cause” being defined as (i) failure by the Optionee to substantially
perform the Optionee’s duties, or (ii) misconduct by the Optionee in violation of the
Company’s or any Subsidiary’s established business rules and procedures, or (iii)
breach of any confidentiality, non-competition or non-solicitation agreement entered
into between the Optionee and the Company);
	 
	 	(b)	 	Six (6) months after the Optionee ceases to be an employee of the Company or a
Subsidiary, unless the Optionee ceases to be such employee by reason of death,
permanent and total disability, Retirement or termination for Cause;
	 
	 	(c)	 	One (1) year after the death of the Optionee if the Optionee dies while an
employee of the Company or a Subsidiary (in which case the Option becomes immediately
exercisable in full pursuant to Section 1(c) herein);
	 
	 	(d)	 	Three (3) years after the permanent and total disability of the Optionee if the
Optionee becomes permanently and totally disabled (as described in Section 1(c) above)
while an employee of the Company or a Subsidiary (in which case the Option becomes
immediately exercisable in full pursuant to Section 1(c) herein);
	 
	 	(e)	 	Five (5) years after the date that the Optionee shall Retire; and
	 
	 	(f)	 	Ten (10) years from the Date of Grant.

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	4.	 	Option Nontransferable. This Option is not transferable by the Optionee otherwise than by
will or the laws of descent and distribution.

	5.	 	Compliance with Law. This Option shall not be exercisable if such exercise would involve a
violation of any applicable federal, state or other securities law.

	6.	 	Adjustments. The Board (or a committee of the Board) shall make such adjustments in the
Option Price and in the number or kind of Common Shares or other securities covered by this
Option as the Board (or a committee of the Board) in its sole discretion, exercised in good
faith, may determine is equitably required to prevent dilution or enlargement of the rights of
the Optionee that otherwise would result from (a) any stock dividend, extraordinary dividend,
stock split, combination of shares, recapitalization or other change in the capital structure
of the Company, or (b) any Change in Control, merger, consolidation, spin-off, split-off,
spin-out, split-up, reorganization or partial or complete liquidation, or other distribution
of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate
transaction or event having an effect similar to any of the foregoing. Moreover, in the event
of any such transaction or event, the Board (or a committee of the Board), in its discretion,
may provide in substitution for any or all of the Option Rights provided for herein such
alternative consideration as it may determine to be equitable in the circumstances.

	7.	 	Taxes and Withholding. If the Company shall be required to withhold any federal, state,
local or foreign tax in connection with exercise of this Option, it shall be a condition to
such exercise that the Optionee pay or make provision satisfactory to the Company for payment
of all such taxes. The Optionee may elect that all or any part of such withholding
requirement be satisfied by retention by the Company of a portion of the shares purchased upon
exercise of this Option. If such election is made, the shares so retained shall be credited
against such withholding requirement at the Market Value per Share on the date of exercise.
In no event, however, shall the Company accept Common Shares for payment of taxes in excess of
required tax withholding rates.

	8.	 	Continuous Employment. For purposes of this Agreement, the continuous employment of the
Optionee with the Company or a Subsidiary shall not be deemed to have been interrupted, and
the Optionee shall not be deemed to have ceased to be an employee of the Company or
Subsidiary, by reason of the (a) transfer of the Optionee’s employment among the Company and
its Subsidiaries or (b) an approved leave of absence.

	9.	 	No Employment Contract. This Option is a voluntary, discretionary award being made on a
one-time basis and it does not constitute a commitment to make any future awards. This Option
and any payments made hereunder will not be considered salary or other compensation for
purposes of any severance pay or similar allowance, except as otherwise required by law.
Nothing in this Agreement will give the Optionee any right to continue employment with the
Company or any Subsidiary, as the case may be, or interfere in any way with the right of the
Company or a Subsidiary to terminate the employment of the Optionee.

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	10.	 	Information. Information about the Optionee and the Optionee’s participation in the Plan may
be collected, recorded and held, used and disclosed for any purpose related to the
administration of the Plan. The Optionee understands that such processing of this information
may need to be carried out by the Company and its Subsidiaries and by third party
administrators whether such persons are located within the Optionee’s country or elsewhere,
including the United States of America. The Optionee consents to the processing of
information relating to the Optionee and the Optionee’s participation in the Plan in any one
or more of the ways referred to above.

	11.	 	Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the
event of any inconsistency between the provisions of this Agreement and the Plan, the Plan
shall govern. All terms used herein with initial capital letters and not otherwise defined
herein that are defined in the Plan shall have the meanings assigned to them in the Plan. The
Board (or a committee of the Board) acting pursuant to the Plan, as constituted from time to
time, shall, except as expressly provided otherwise herein, have the right to determine any
questions which arise in connection with the grant of the Option hereunder.

	12.	 	Amendments. Any amendment to the Plan shall be deemed to be an amendment to this Agreement
to the extent that the amendment is applicable hereto; provided, however, that
no amendment shall adversely affect the rights of the Optionee under this Agreement without
the Optionee’s consent.

	13.	 	Severability. If any provision of this Agreement or the application of any provision hereof
to any person or circumstances is held invalid, unenforceable or otherwise illegal, the
remainder of this Agreement and the application of such provision to any other person or
circumstances shall not be affected, and the provisions so held to be invalid, unenforceable
or otherwise illegal shall be reformed to the extent (and only to the extent) necessary to
make it enforceable, valid and legal.

	14.	 	Successors and Assigns. Without limiting Section 4 hereof, the provisions of this Agreement
shall inure to the benefit of, and be binding upon, the successors, administrators, heirs,
legal representatives and assigns of the Optionee, and the successors and assigns of the
Company.

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	15.	 	Governing Law. This Agreement shall be governed by and construed in accordance with the
internal substantive laws of the State of Delaware, without giving effect to any principle of
law that would result in the application of the law of any other jurisdiction.

     Executed in the name and on behalf of the Company at Chicago, Illinois as of the
23rd day of March, 2007.

	 	 	 	 	 
	 

	 	USG CORPORATION	 	 
	 
	 	 	 	 
	 

	 	 	 	 

     The undersigned Optionee hereby accepts the Option Rights evidenced by this Nonqualified Stock
Option Agreement on the terms and conditions set

forth herein and in the Plan.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	[OPTIONEE NAME]	 	 

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