As filed with the Securities and Exchange Commission on May 8, 2001
Registration No. 333-_______
- ----------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------
GANNETT CO., INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 16-0442930
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
1100 Wilson Boulevard
Arlington, Virginia 22234
(Address of Principal Executive Offices)
Gannett Co., Inc. 2001 Omnibus Incentive Compensation Plan
(Full Title of the Plan)
Thomas L. Chapple, Esq.
Senior Vice President, General Counsel and Secretary
Gannett Co., Inc.
1100 Wilson Boulevard
Arlington, Virginia 22234
703/284-6000
(Name, Address and Telephone Number of Agent for Service)
---------------
Copy to:
John C. Partigan, Esq.
Nixon Peabody LLP
401 9th Street, N.W., Suite 900
Washington, D.C. 20004
--------------
Approximatedate of proposed offering: As soon
as practical after
the effective date of this registration statement.
-2-
CALCULATION OF REGISTRATION FEE
- -------------------------------------------------------------------------------------------------------------------
Proposed Maximum Proposed Maximum
Title of Offering Price Aggregate Offering
Securities to be Amount to be Per Share Price Amount of
Registered Registered Registration Fee
Common Stock,
$1.00 Par Value 10,000 (1) $64.85 (2) (3) $648,500 $162.13
(1) This registration statement is also deemed, pursuant to Instruction E to Form S-8, to relate to
11,990,000 shares previously registered on Form S-8 (No. 333-04459) in connection with a
predecessor plan, with respect to which a registration fee of $140,055.60 has previously been paid.
(2) This calculation is made solely for the purpose of calculating the amount of the registration fee
pursuant to Rule 457(h) and is based upon the average of the high and low reported sale prices of
the registrant's Common Stock on the New York Stock Exchange reported on May 2, 2001.
(3) In accordance with the Plan, the actual offering price of each share shall be 100% of the "Fair
Market Value" of the Common Stock on the date on which an option is granted.
-3-
- ----------------------------------------------------------------------------
EXPLANATORY STATEMENT
On May 24, 1996, a total of 24,000,000 shares of common stock of
Gannett Co., Inc. (the "Company") were registered by Registration Statement on
Form S-8, File No. 333-04459, as adjusted pursuant to Rule 416(b) to reflect the
Company's two-for-one stock split effective on October 6, 1997, to be issued in
connection with the Company's 1978 Executive Long-Term Incentive Plan (the "1978
Plan"). On May 8, 2001, the stockholders of the Company approved the Company's
2001 Omnibus Incentive Compensation Plan (the "2001 Plan"), which replaces the
1978 Plan. In excess of 12,000,000 shares of common stock of the Company which
were registered in connection with the 1978 Plan have not been issued under the
1978 Plan and are not covered by outstanding stock options or other awards
granted under the 1978 Plan. Pursuant to Instruction E to Form S-8 and the
telephonic interpretation of the Securities and Exchange Commission set forth at
Q.89 in the Securities Act Forms section of the Division of Corporation
Finance's Manual of Publicly-Available Telephone Interpretations (January 1997),
11,990,000 of such shares are carried forward to, and deemed covered by, this
Registration Statement on Form S-8 in connection with the 2001 Plan.
PART I
INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS
The documents containing the information required by Part I of Form S-8 will
be sent or given to employees eligible to participate in the 2001 Plan as
specified by Rule 428(b)(1) of the Securities Act of 1933. Those documents and
the documents incorporated by reference into this Registration Statement
pursuant to Item 3 of Part II, taken together, constitute a prospectus that
meets the requirements of Section 10(a) of the Securities Act of 1933, as
amended.
-4-
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
Incorporated by reference in this Prospectus are the following
documents filed pursuant to the Securities Exchange Act of 1934:
1. The Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2000 filed on March 27, 2001.
All documents subsequently filed by the Company pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 after the date
of this registration statement and prior to the filing of a post-effective
amendment which indicates that all securities offered have been sold or which
deregisters any unsold securities, shall be deemed to be incorporated by
reference in this registration statement and to be a part hereof from the date
of filing of such documents. Any statement contained in a document incorporated
or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for purposes of this registration statement to the extent that a
statement contained herein or in any other subsequently filed document which
also is incorporated or deemed to be incorporated by reference herein, modifies
or supersedes such statement. Any such statement so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of this
registration statement.
The Company will provide without charge to each person to whom a
prospectus relating to this registration statement is delivered, at the written
or oral request of such person, a copy of any and all of the documents
incorporated by reference (other than exhibits to such documents unless such
exhibits are specifically incorporated therein by reference into such
documents). All requests for such copies should be directed to: Secretary,
Gannett Co., Inc., 1100 Wilson Boulevard, Arlington, Virginia 22234, (703)
284-6000.
Item 4. Description of Securities.
Not applicable.
Item 5. Interests of Named Experts and Counsel.
The financial statements incorporated in this Registration Statement by
reference to the Annual Report on Form 10-K for the year ended December 31, 2000
have been so incorporated in reliance on the report of PricewaterhouseCoopers
LLP, independent accountants, given on the authority of said firm as experts in
auditing and accounting. The legality of the shares offered under the 2001 Plan
has been passed upon by Thomas L. Chapple, Esq., Senior Vice President, General
Counsel and Secretary of the Company. Mr. Chapple is eligible to participate in
the 2001 plan.
-5-
Senior Vice President, General Counsel and Secretary of the Company. Mr. Chapple
is eligible to participate in the 2001 Plan.
Item 6. Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation Law ("DGCL") permits
the Company to indemnify any director or officer of the Company against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement,
incurred in defense of any action (other than an action by or in the right of
the Company) arising by reason of the fact that he or she is or was an officer
or director of the Company if he or she acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interests of the
Company and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his or her conduct was unlawful. Section 145 also
permits the Company to indemnify any such officer or director against expenses
incurred in an action by or in the right of the Company if he or she acted in
good faith and in a manner he or she reasonably believed to be in or not opposed
to the best interests of the Company, except in respect of any matter as to
which such person is adjudged to be liable to the Company. This statute requires
indemnification of such officers and directors against expenses to the extent
they may be successful in defending any such action. The statute permits
purchase of liability insurance by the Company on behalf of officers and
directors, and the Company has purchased such insurance.
Section 17 of Article II of the Company's By-laws requires
indemnification to the fullest extent permitted under Delaware law of any person
who is or was a director or officer of the Company who is or was involved or
threatened to be made so involved in any action, suits or proceeding, whether
criminal, civil, administrative or investigative, by reason of the fact that
such person is or was serving as a director, officer or employee of the Company
or any predecessor of the Company or was serving at the request of the Company
as a director, officer or employee of any other enterprise.
Section 102(b)(7) of the DGCL permits a provision in the certificate of
incorporation of each corporation organized thereunder, such as the Company,
eliminating or limiting, with certain exceptions, the personal liability of a
director to the corporation or its stockholders for monetary damages for breach
of fiduciary duty as a director. Article NINTH of the certificate of
incorporation of the Company eliminates the liability of directors to the extent
permitted by Section 102(b)(7) of the DGCL.
The foregoing statements are subject to the detailed provisions of
Sections 145 and 102(b)(7) of the DGCL, Section 17 of Article II of such By-laws
and Article NINTH of such Certificate of Incorporation, as applicable.
Item 7. Exemption from Registration Claimed.
Not applicable.
-6-
Item 8. Exhibits.
4 - Gannett Co., Inc. 2001 Omnibus Incentive Compensation Plan.
5 - Opinion of Thomas L. Chapple, Esq.
23(a) - Consent of PricewaterhouseCoopers LLP.
23(b) - Consent of Thomas L. Chapple, Esq. (included in Exhibit 5).
Item 9. Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made of the securities registered hereby, a post-effective amendment to
this registration statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities act of 1933;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represents a fundamental
change in the information set forth in the registration
statement;
(iii) To include any material information with
respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such
information in the registration statement;
Provided, however, that paragraphs (1)(i) and (1)(ii) do not
apply if the registration statement is on Form S-3 or Form S-8
and the information required to be included in a
post-effective amendment by those paragraphs is contained in
periodic reports filed by the registrant pursuant to Section
13 or Section 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in the registration
statement.
(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
-7-
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act of 1933 and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Company of expenses incurred or paid by a director, officer or controlling
person of the Company in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a Court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities
Act of 1933 and will be governed by the final adjudication of such issue.
SIGNATURES
The REGISTRANT. Pursuant to the requirements of the Securities Act of
1933, the registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-8, and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Arlington, State of Virginia on May 8, 2001.
GANNETT CO., INC.
By:/s/Thomas L. Chapple
---------------------------------
Thomas L. Chapple
Senior Vice President,
General Counsel and Secretary
-8-
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities and on the date indicated.
SIGNATURE TITLE DATE
/s/Douglas H. McCorkindale
- --------------------------
Douglas H. McCorkindale Chairman, President, Chief Executive May 8, 2001
Officer, Director
/s/Larry F. Miller
- --------------------------
Larry F. Miller Executive Vice President and May 8, 2001
Chief Financial Officer
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned
constitutes and appoints Douglas H. McCorkindale and Thomas L. Chapple, and each
of them, with full power to act without the others, as said undersigned's true
and lawful attorney-in-fact and agent, with full and several power of
substitution, for said undersigned and in said undersigned's name, place and
stead, in any and all capacities, to sign any and all amendments to this
registration statement pursuant to the Securities Act of 1933, as amended, and
to file the same with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as said undersigned
might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their or his substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities and on the date indicated.
-9-
SIGNATURE TITLE DATE
/s/H. Jesse Arnelle
- --------------------------
H. Jesse Arnelle Director May 8, 2001
/s/Meredith A. Brokaw
- --------------------------
Meredith A. Brokaw Director May 8, 2001
/s/James A. Johnson
- --------------------------
James A. Johnson Director May 8, 2001
/s/James A. Johnson
- --------------------------
Stephen P. Munn Director May 8, 2001
/s/Samuel J. Palmisano
- --------------------------
Samuel J. Palmisano Director May 8, 2001
/s/Karen Hastie Williams
- --------------------------
Karen Hastie Williams Director May 8, 2001
-10-
Exhibit Number Description of Exhibits Page
4 Gannett Co., Inc. 2001
Omnibus Incentive Compensation Plan.
5 Opinion of Thomas L. Chapple, Esq.
23(a) Consent of PricewaterhouseCoopers LLP.
23(b) Consent of Thomas L. Chapple, Esq.
(included in Exhibit 5).
Exhibit 4
---------
Gannett Co., Inc.
2001 Omnibus Incentive
Compensation Plan
Effective January 1, 2001
2
CONTENTS
- --------------------------------------------------------------------------------
Article 1. Establishment, Objectives, and Duration 1
Article 2. Definitions 1
Article 3. Administration 5
Article 4. Shares Subject to the Plan and Maximum Awards 5
Article 5. Eligibility and Participation 6
Article 6. Stock Options 7
Article 7. Stock Appreciation Rights 8
Article 8. Restricted Stock 9
Article 9. Performance Units, Performance Shares, and Cash-Based Awards 10
Article 10. Performance Measures 12
Article 11. Beneficiary Designation 13
Article 12. Deferrals 13
Article 13. Rights of Employees/Directors 13
Article 14. Termination of Employment/Directorship 14
Article 15. Change in Control 14
Article 16. Amendment, Modification, and Termination 16
Article 17. Withholding 16
Article 18. Successors 17
Article 19. General Provisions 17
-3-
Gannett Co., Inc. 2001 Omnibus Incentive Compensation Plan
Article 1. Establishment, Objectives, and Duration
1.1 Establishment of the Plan. Gannett Co., Inc., a Delaware corporation
(hereinafter referred to as the "Company"), hereby establishes an incentive
compensation plan to be known as the "Gannett Co., Inc. 2001 Omnibus Incentive
Compensation Plan" (hereinafter referred to as the "Plan"), as set forth in this
document. The Plan permits the grant of Nonqualified Stock Options, Incentive
Stock Options, Stock Appreciation Rights, Restricted Stock, Performance Shares,
Performance Units, and Cash-Based Awards.
Subject to approval by the Company's stockholders, the Plan shall become
effective as of January 1, 2001 (the "Effective Date") and shall remain in
effect as provided in Section 1.3 hereof.
1.2 Objectives of the Plan. The objectives of the Plan are to optimize
the profitability and growth of the Company through annual and long-term
incentives that are consistent with the Company's goals and that link the
personal interests of Participants to those of the Company's stockholders, to
provide Participants with an incentive for excellence in individual performance,
and to promote teamwork among Participants.
The Plan is further intended to provide flexibility to the Company and
its Affiliates in their ability to motivate, attract, and retain the services of
Participants who make significant contributions to the Company's success and to
allow Participants to share in that success.
1.3 Duration of the Plan. The Plan shall commence on the Effective Date
and shall remain in effect, subject to the right of the Committee to amend or
terminate the Plan at any time pursuant to Article 16 hereof, until all Shares
subject to it shall have been purchased or acquired according to the Plan's
provisions. However, in no event may an Award be granted under the Plan on or
after the tenth (10th) anniversary of the Effective Date.
1.4 Prior Plans. Effective on May 8, 2001, no further awards shall be
made under the Company's 1978 Executive Long-Term Incentive Plan or the 1968
Executive Incentive Bonus Plan; provided, however, that any rights theretofore
granted under either such plan shall not be affected.
Article 2. Definitions
Whenever used in the Plan, the following terms shall have the meanings
set forth below, and when the meaning is intended, the initial letter of the
word shall be capitalized:
2.1 "Affiliate" shall have the meaning ascribed to such term in Rule
12b-2 of the General Rules and Regulations of the Exchange Act.
-4-
2.2 "Award" means, individually or collectively, a grant under this Plan
of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation
Rights, Restricted Stock, Performance Shares, Performance Units, or Cash-Based
Awards.
2.3 "Award Agreement" means a written or electronic agreement entered
into by the Company and each Participant setting forth the terms and provisions
applicable to Awards granted under this Plan.
2.4 "Beneficial Owner" or "Beneficial Ownership" shall have the meaning
ascribed to such term in Rule 13d-3 of the General Rules and Regulations under
the Exchange Act.
2.5 "Board" or "Board of Directors" means the Board of Directors of the
Company.
2.6 "Cash-Based Award" means an Award granted to a Participant as
described in Article 9 hereof.
2.7 "Change in Control" shall be deemed to have occurred under any one
or more of the following conditions:
i. if, within three years of any merger,
consolidation, sale of a substantial part of Gannett's assets, or
contested election, or any combination of the foregoing
transactions (a "Transaction"), the persons who were directors of
Gannett immediately before the Transaction shall cease to
constitute a majority of the Board of Directors (x) of Gannett or
(y) of any successor to Gannett, or (z) if Gannett becomes a
subsidiary of or is merged into or consolidated with another
corporation, of such corporation (Gannett shall be deemed a
subsidiary of such other corporation if such other corporation
owns or controls, directly or indirectly, a majority of the
combined voting power of the outstanding shares of the capital
stock of Gannett entitled to vote generally in the election of
directors ("Voting Stock"));
ii. if, as a result of a Transaction, Gannett does
not survive as an entity, or its shares are changed into the
shares of another corporation;
iii. if any "person" (as that term is used in Section
13(d) or 14(d)(2) of the Exchange Act) becomes a beneficial owner
directly or indirectly of securities of Gannett representing 20%
or more of the combined voting power of Gannett's Voting Stock;
iv. if three or more persons are elected directors of
Gannett despite the opposition of a majority of the directors of
Gannett then in office; or
v. upon determination by the Committee that a Change
in Control has occurred, if such a person as defined in
subparagraph (iii) above becomes the beneficial owner directly or
indirectly of securities of Gannett representing from 12% up to
20% of the combined voting power of Gannett's Voting Stock.
-5-
2.8 "Code" means the Internal Revenue Code of 1986, as amended from time
to time.
2.9 "Committee" means any committee appointed by the Board to administer
Awards to Employees or Directors, as specified in Article 3 hereof.
2.10 "Company" means Gannett Co., Inc., a Delaware corporation and any
successor thereto as provided in Article 18 hereof.
2.11 "Covered Employee" means a Participant who, as of the date of
vesting and/or payout of an Award, as applicable, is one of the group of
"covered employees," as defined in the regulations promulgated under Code
Section 162(m), or any successor statute.
2.12 "Director" means any individual who is a member of the Board of
Directors of the Company; provided, however, that any Director who is employed
by the Company shall be considered an Employee under the Plan.
2.13 "Disability" shall have the meaning ascribed to such term in the
Participant's governing long-term disability plan, or if no such plan exists, at
the discretion of the Committee, or if different, as defined in the Employee's
employment contract with the Company or any of its Affiliates or Subsidiaries.
2.14 "Effective Date" shall have the meaning ascribed to such term in
Section 1.1 hereof.
2.15 "Employee" means any employee of the Company or its Subsidiaries or
Affiliates.
2.16 "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, or any successor act thereto.
2.17 "Fair Market Value" as of any date and in respect of any Share
means the then most recent closing price of a Share reflected in the
consolidated trading tables of USA Today or any other publication selected by
the Committee, provided that, if Shares shall not have been traded on the New
York Stock Exchange for more than 10 days immediately preceding such date or if
deemed appropriate by the Committee for any other reason, the fair market value
of Shares shall be as determined by the Committee in such other manner as it may
deem appropriate. In no event shall the fair market value of any Share be less
than its par value.
2.18 "Freestanding SAR" means an SAR that is granted independently of
any Options, as described in Article 7 hereof.
2.19 "Incentive Stock Option" or "ISO" means an option to purchase
Shares granted under Article 6 hereof and that is designated as an Incentive
Stock Option and that is intended to meet the requirements of Code Section 422.
2.20 "Insider" shall mean an individual who is, on the relevant date, an
executive officer, director or ten percent (10%) beneficial owner of any class
of the Company's equity securities that is
-6-
registered pursuant to Section 12 of the Exchange Act, all as defined under
Section 16 of the Exchange Act.
2.21 "Nonqualified Stock Option" or "NQSO" means an option to purchase
Shares granted under Article 6 hereof and that is not intended to meet the
requirements of Code Section 422, or that otherwise does not meet such
requirements.
2.22 "Option" means an Incentive Stock Option or a Nonqualified Stock
Option, as described in Article 6 hereof.
2.23 "Option Price" means the price at which a Share may be purchased by
a Participant pursuant to an Option.
2.24 "Participant" means an Employee or Director who has been selected
to receive an Award or who has outstanding an Award granted under the Plan.
2.25 "Performance-Based Exception" means the performance-based exception
from the tax deductibility limitations of Code Section 162(m).
2.26 "Performance Share" means an Award granted to a Participant, as
described in Article 9 hereof.
2.27 "Performance Unit" means an Award granted to a Participant, as
described in Article 9 hereof.
2.28 "Period of Restriction" means the period during which the transfer
of Shares of Restricted Stock is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee, at its discretion), and the Shares are
subject to a substantial risk of forfeiture, pursuant to the Restricted Stock
Award Agreement, as provided in Article 8 hereof.
2.29 "Person" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d) thereof.
2.30 "Restricted Stock" means an Award granted to a Participant pursuant
to Article 8 hereof.
2.31 "Retirement" means any retirement recognized under the Gannett
Retirement Plan or any successor plan thereto.
2.32 "Shares" means the Company's common stock, par value $1.00 per
share.
2.33 "Stock Appreciation Right" or "SAR" means an Award, granted alone
or in connection with a related Option, designated as an SAR, pursuant to the
terms of Article 7 hereof.
-7-
2.34 "Subsidiary" means any corporation, partnership, joint venture, or
other entity in which the Company has a majority voting interest.
2.35 "Tandem SAR" means an SAR that is granted in connection with a
related Option pursuant to Article 7 hereof, the exercise of which shall require
forfeiture of the right to purchase a Share under the related Option (and when a
Share is purchased under the Option, the Tandem SAR shall similarly be
canceled).
Article 3. Administration
3.1 General. Subject to the terms and conditions of the Plan, the Plan
shall be administered by the Committee. The members of the Committee shall be
appointed from time to time by, and shall serve at the discretion of, the Board
of Directors. The Committee shall have the authority to delegate administrative
duties to officers of the Company.
3.2 Authority of the Committee. Except as limited by law or by the
Certificate of Incorporation or Bylaws of the Company, and subject to the
provisions hereof, the Committee shall have full power to select Employees and
Directors who shall participate in the Plan; determine the sizes and types of
Awards; determine the terms and conditions of Awards in a manner consistent with
the Plan; construe and interpret the Plan and any agreement or instrument
entered into under the Plan; establish, amend, or waive rules and regulations
for the Plan's administration; and amend the terms and conditions of any
outstanding Award as provided in the Plan. Further, the Committee shall make all
other determinations that it deems necessary or advisable for the administration
of the Plan. As permitted by law and the terms of the Plan, the Committee may
delegate its authority herein. No member of the Committee shall be liable for
any action taken or decision made in good faith relating to the Plan or any
Award granted hereunder.
3.3 Decisions Binding. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders and
resolutions of the Committee shall be final, conclusive, and binding on all
persons, including the Company, its stockholders, Directors, Employees,
Participants, and their estates and beneficiaries, unless changed by the Board.
Article 4. Shares Subject to the Plan and Maximum Awards
4.1 Number of Shares Available for Grants. Subject to adjustment as
provided in Section 4.2 hereof, the number of Shares hereby reserved for
issuance to Participants under the Plan shall be twelve million (12,000,000), no
more than one million five hundred thousand (1,500,000) of which may be granted
in the aggregate in the form of Restricted Stock, Performance Shares and/or
Performance Units. These shares shall consist of approximately 11,700,000 shares
that remain available under the Company's 1978 Executive Long-Term Incentive
Plan and approximately 300,000 additional shares. The Committee shall determine
the appropriate methodology for calculating the number of shares issued pursuant
to the Plan. Shares issued under the Plan may be
-8-
authorized but unissued shares or treasury shares. The Plan also amends and
restates the 1978 Executive Long-Term Incentive Plan and the 1968 Executive
Incentive Bonus Plan, each in its entirety (it being noted that awards under
such plans prior to May 8, 2001, shall not be impacted by this amendment).
Unless the Committee determines that an Award to a Covered Employee
shall not be designed to comply with the Performance-Based Exception, the
following rules shall apply to grants of such Awards under the Plan:
(a) Stock Options: The maximum aggregate number of Shares that
may be granted in the form of Stock Options, pursuant to
any Award granted in any one fiscal year to any one
Participant shall be one million (1,000,000).
(b) SARs: The maximum aggregate number of Shares that may be
granted in the form of Stock Appreciation Rights, pursuant
to any Award granted in any one fiscal year to any one
Participant shall be one million (1,000,000).
(c) Restricted Stock: The maximum aggregate grant with respect
to Awards of Restricted Stock granted in any one fiscal
year to any one Participant shall be five hundred thousand
(500,000).
(d) Performance Shares/Performance Units and Cash-Based Awards:
The maximum aggregate grant with respect to Awards of
Performance Shares made in any one fiscal year to any one
Participant shall be equal to the value of five hundred
thousand (500,000) shares; the maximum aggregate amount
awarded with respect to Cash-Based Awards or Performance
Units to any one Participant in any one fiscal year may not
exceed ten million dollars ($10,000,000).
4.2 Adjustments in Authorized Shares. Upon a change in corporate
capitalization, such as a stock split, stock dividend or a corporate
transaction, such as any merger, consolidation, combination, exchange of shares
or the like, separation, including a spin-off, or other distribution of stock or
property of the Company, any reorganization (whether or not such reorganization
comes within the definition of such term in Code Section 368) or any partial or
complete liquidation of the Company, such adjustment shall be made in the number
and class of Shares that may be delivered under Section 4.1, in the number and
class of and/or price of Shares subject to outstanding Awards granted under the
Plan, and in the Award limits set forth in Section 4.1, as may be determined to
be appropriate and equitable by the Committee, in its sole discretion, to
prevent dilution or enlargement of rights.
4.3 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee may make adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, the events described in
Section 4.2 hereof) affecting the Company or the financial statements of the
Company or of changes in applicable laws, regulations, or accounting principles,
whenever the
-9-
Committee determines that such adjustments are appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan; provided that, unless the Committee determines
otherwise at the time such adjustment is considered, no such adjustment shall be
authorized to the extent that such authority would be inconsistent with the
Plan's or any Award's meeting the requirements of Section 162(m) of the Code, as
from time to time amended.
Article 5. Eligibility and Participation
5.1 Eligibility. Persons eligible to participate in this Plan include
all Employees and Directors.
5.2 Actual Participation. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all eligible Employees and
Directors, those to whom Awards shall be granted and shall determine the nature
and amount of each Award.
5.3 Newly Eligible Employees. The Committee shall be entitled to make
such rules, regulations, determinations and awards as it deems appropriate in
respect of any Employee who becomes eligible to participate in the Plan or any
portion thereof after the commencement of an award or incentive period.
5.4 Leaves of Absence. The Committee shall be entitled to make such
rules, regulations, and determinations as it deems appropriate under the Plan in
respect of any leave of absence taken by the recipient of any award. Without
limiting the generality of the foregoing, the Committee shall be entitled to
determine: (a) whether or not any such leave of absence shall constitute a
termination of employment within the meaning of the Plan; and (b) the impact, if
any, of such leave of absence on awards under the Plan theretofore made to any
recipient who takes such leave of absence.
Article 6. Stock Options
6.1 Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Participants in such number, and upon such terms, and
at any time and from time to time as shall be determined by the Committee.
6.2 Award Agreement. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the duration of the Option, the
number of Shares to which the Option pertains, and such other provisions as the
Committee shall determine which are not inconsistent with the terms of the Plan.
-10-
6.3 Option Price. The Option Price for each grant of an Option under
this Plan shall be as determined by the Committee; provided, however, the
per-share exercise price shall not be less than 100 percent of the Fair Market
Value of the Shares on the date the Option is granted.
6.4 Duration of Options. Each Option granted to a Participant shall
expire at such time as the Committee shall determine at the time of grant.
6.5 Exercise of Options. Options granted under this Article 6 shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, which need not be the same for
each grant or for each Participant.
6.6 Payment. Options granted under this Article 6 shall be exercised by
the delivery of a written, electronic or telephonic notice of exercise to the
Company, setting forth the number of Shares with respect to which the Option is
to be exercised, accompanied by full payment for the Shares.
The Option Price upon exercise of any Option shall be payable to the
Company in full either: (a) in cash or its equivalent; or (b) by tendering
previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the total Option Price (provided that the Shares that are
tendered must have been held by the Participant for at least six (6) months
prior to their tender to satisfy the Option Price); or (c) by a combination of
(a) and (b); or (d) any other method approved by the Committee in its sole
discretion. The tendering of previously acquired shares may be done through
attestation. No fractional shares may be tendered or accepted in payment of the
Option Price.
Cashless exercises are permitted pursuant to Federal Reserve Board's
Regulation T, subject to applicable securities law restrictions, or by any other
means which the Committee determines to be consistent with the Plan's purpose
and applicable law.
Subject to any governing rules or regulations, as soon as practicable
after receipt of notification of exercise and full payment, the Company shall
deliver to the Participant, in the Participant's name, Share certificates in an
appropriate amount based upon the number of Shares purchased under the
Option(s).
Unless otherwise determined by the Committee, all payments under all of
the methods indicated above shall be paid in United States dollars.
6.7 Restrictions on Share Transferability. The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option
granted under this Article 6 as it may deem advisable, including, without
limitation, restrictions under applicable federal securities laws, under the
requirements of any stock exchange or market upon which such Shares are then
listed and/or traded, or under any blue sky or state securities laws applicable
to such Shares.
6.8 Nontransferability of Options.
-11-
(a) Incentive Stock Options. No ISO granted under the Plan may
be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, all ISOs granted
to a Participant under the Plan shall be exercisable during
his or her lifetime only by such Participant.
(b) Nonqualified Stock Options. Except as otherwise provided in
a Participant's Award Agreement, no NQSO granted under this
Article 6 may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. Further, except as
otherwise provided in a Participant's Award Agreement, all
NQSOs granted to a Participant under this Article 6 shall
be exercisable during his or her lifetime only by such
Participant or such Participant's legal representative.
Article 7. Stock Appreciation Rights
7.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs
may be granted to Participants at any time and from time to time as shall be
determined by the Committee. The Committee may grant Freestanding SARs, Tandem
SARs, or any combination of these forms of SAR.
Subject to the terms and conditions of the Plan, the Committee shall
have complete discretion in determining the number of SARs granted to each
Participant and, consistent with the provisions of the Plan, in determining the
terms and conditions pertaining to such SARs.
The grant price of a Freestanding SAR shall equal the Fair Market Value
of a Share on the date of grant of the SAR. The grant price of Tandem SARs shall
equal the Option Price of the related Option.
7.2 SAR Agreement. Each SAR grant shall be evidenced by an Award
Agreement that shall specify the grant price, the term of the SAR, and such
other provisions as the Committee shall determine.
7.3 Term of SARs. The term of an SAR granted under the Plan shall be
determined by the Committee, in its sole discretion.
7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised
upon whatever terms and conditions the Committee, in its sole discretion,
imposes upon them.
7.5 Exercise of Tandem SARs. Tandem SARs may be exercised for all or
part of the Shares subject to the related Option upon the surrender of the right
to exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.
-12-
7.6 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall
be entitled to receive payment from the Company in an amount determined by
multiplying:
(a) The difference between the Fair Market Value of a Share on
the date of exercise over the grant price; by
(b) The number of Shares with respect to which the SAR is
exercised.
In the sole discretion of the Committee, the payment upon SAR exercise
may be in cash, in Shares of equivalent value, in some combination thereof, or
in any other manner approved by the Committee. The Committee's determination
regarding the form of SAR payout shall be set forth in the Award Agreement
pertaining to the grant of the SAR.
7.7 Nontransferability of SARs. Except as otherwise provided in a
Participant's Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Participant's Award Agreement, all SARs granted to a
Participant under the Plan shall be exercisable during his or her lifetime only
by such Participant or such Participant's legal representative.
Article 8. Restricted Stock
8.1 Grant of Restricted Stock. Subject to the terms and provisions of
the Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock to Participants in such amounts, as the Committee shall
determine.
8.2 Restricted Stock Agreement. Each Restricted Stock grant shall be
evidenced by a Restricted Stock Award Agreement that shall specify the Period(s)
of Restriction, the number of Shares of Restricted Stock granted, and such other
provisions as the Committee shall determine.
8.3 Transferability. Except as provided in this Article 8, the Shares of
Restricted Stock granted herein may not be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated until the end of the applicable Period of
Restriction established by the Committee and specified in the Restricted Stock
Award Agreement, or upon earlier satisfaction of any other conditions, as
specified by the Committee in its sole discretion and set forth in the
Restricted Stock Award Agreement. All rights with respect to the Restricted
Stock granted to a Participant under the Plan shall be available during his or
her lifetime only to such Participant or such Participant's legal
representative.
8.4 Other Restrictions. The Committee shall impose such other conditions
and/or restrictions on any Shares of Restricted Stock granted pursuant to the
Plan as it may deem advisable including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted Stock,
restrictions based upon the achievement of specific performance goals,
time-based restrictions on vesting following the attainment of the performance
goals,
-13-
time-based restrictions, and/or restrictions under applicable federal or state
securities laws.
To the extent deemed appropriate by the Committee, the Company may
retain the certificates representing Shares of Restricted Stock in the Company's
possession until such time as all conditions and/or restrictions applicable to
such Shares have been satisfied.
Except as otherwise provided in this Article 8, Shares of Restricted
Stock covered by each Restricted Stock grant made under the Plan shall become
freely transferable by the Participant after the last day of the applicable
Period of Restriction.
8.5 Voting Rights. If the Committee so determines, Participants holding
Shares of Restricted Stock granted hereunder may be granted the right to
exercise full voting rights with respect to those Shares during the Period of
Restriction.
8.6 Dividends and Other Distributions. During the Period of Restriction,
Participants holding Shares of Restricted Stock granted hereunder may, if the
Committee so determines, be credited with dividends paid with respect to the
underlying Shares while they are so held. The Committee may apply any
restrictions to the dividends that the Committee deems appropriate. Without
limiting the generality of the preceding sentence, if the grant or vesting of
Restricted Shares granted to a Covered Employee is designed to comply with the
requirements of the Performance-Based Exception, the Committee may apply any
restrictions it deems appropriate to the payment of dividends declared with
respect to such Restricted Shares, such that the dividends and/or the Restricted
Shares maintain eligibility for the Performance-Based Exception.
Article 9. Performance Units, Performance Shares, and Cash-Based Awards
9.1 Grant of Performance Units/Shares and Cash-Based Awards. Subject to
the terms of the Plan, Performance Units, Performance Shares, and/or Cash-Based
Awards may be granted to Participants in such amounts and upon such terms, and
at any time and from time to time, as shall be determined by the Committee.
9.2 Award Agreement. At the Committee's discretion, each grant of
Performance Units/Shares and Cash-Based Awards may be evidenced by an Award
Agreement that shall specify the initial value, the duration of the Award, the
performance measures, if any, applicable to the Award, and such other provisions
as the Committee shall determine which are not inconsistent with the terms of
the Plan.
9.3 Value of Performance Units/Shares and Cash-Based Awards. Each
Performance Unit shall have an initial value that is established by the
Committee at the time of grant. Each Performance Share shall have an initial
value equal to the Fair Market Value of a Share on the date of grant. Each
Cash-Based Award shall have a value as may be determined by the Committee. The
Committee shall set performance goals in its discretion which, depending on the
extent to which they
-14-
are met, will determine the number and/or value of Performance Units/Shares and
Cash-Based Awards that will be paid out to the Participant. For purposes of this
Article 9, the time period during which the performance goals must be met shall
be called a "Performance Period."
9.4 Earning of Performance Units/Shares and Cash-Based Awards. Subject
to the terms of this Plan, after the applicable Performance Period has ended,
the holder of Performance Units/Shares and Cash-Based Awards shall be entitled
to receive payout on the number and value of Performance Units/Shares and
Cash-Based Awards earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance
goals have been achieved. Unless otherwise determined by the Committee,
notwithstanding any other provision of the Plan, payment of Cash-Based Awards
shall only be made for those Participants who are Directors or in the employ of
the Company at the end of the Performance Period or, if none has been specified,
the end of the applicable award year.
9.5 Form and Timing of Payment of Performance Units/Shares and
Cash-Based Awards. Payment of earned Performance Units/Shares and Cash-Based
Awards shall be as determined by the Committee and, if applicable, as evidenced
in the related Award Agreement. Subject to the terms of the Plan, the Committee,
in its sole discretion, may pay earned Performance Units/Shares and Cash-Based
Awards in the form of cash or in Shares (or in a combination thereof) that have
an aggregate Fair Market Value equal to the value of the earned Performance
Units/Shares and Cash-Based Awards at the close of the applicable Performance
Period. Such Shares may be granted subject to any restrictions deemed
appropriate by the Committee. No fractional shares will be issued. The
determination of the Committee with respect to the form of payout of such Awards
shall be set forth in the Award Agreement pertaining to the grant of the Award.
Unless otherwise provided by the Committee, Participants holding
Performance Units/Shares may be entitled to receive dividend units with respect
to dividends declared with respect to the Shares. Such dividends may be subject
to the same accrual, forfeiture, and payout restrictions as apply to dividends
earned with respect to Shares of Restricted Stock, as set forth in Section 8.6
hereof, as determined by the Committee.
9.6 Nontransferability. Except as otherwise provided in a Participant's
Award Agreement, Performance Units/Shares and Cash-Based Awards may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Participant's Award Agreement, a Participant's rights
under the Plan shall be exercisable during the Participant's lifetime only by
such Participant or such Participant's legal representative.
Article 10. Performance Measures
Unless and until the Committee proposes for shareholder vote and
shareholders approve a change in the general performance measures set forth in
this Article 10, the attainment of which may determine the degree of payout
and/or vesting with respect to Awards to Covered Employees that are
-15-
designed to qualify for the Performance-Based Exception, the performance
measure(s) to be used for purposes of such grants shall be chosen from among:
(a) Earnings per share;
(b) Net income (before or after taxes);
(c) Net income from continuing operations;
(d) Return measures (including, but not limited to, return on assets,
equity, capital or investment);
(e) Cash flow (including, but not limited to, operating cash flow and
free cash flow);
(f) Cash flow return on investments, which equals net cash flows divided
by owner's equity;
(g) Earnings before or after taxes, interest, depreciation and/or
amortization;
(h) Internal rate of return or increase in net present value;
(i) Dividend payments;
(j) Gross revenues;
(k) Gross margins;
(l) Operating measures such as growth in circulation, television ratings
and advertising lineage;
(m) Internal measures such as achieving a diverse workforce;
(n) Share price (including, but not limited to, growth measures and
total shareholder return); and
(o) Any of the above measures compared to peer or other companies.
Performance measures may be set either at the corporate level, division
level, or the business unit level.
Awards that are designed to qualify for the Performance-Based Exception,
and that are held by Covered Employees, may not be adjusted upward (the
Committee shall retain the discretion to adjust such Awards downward).
-16-
If applicable tax and/or securities laws change to permit Committee
discretion to alter the governing performance measures without obtaining
shareholder approval of such changes, the Committee shall have sole discretion
to make such changes without obtaining shareholder approval.
Article 11. Beneficiary Designation
Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death before
he or she receives any or all of such benefit. Each such designation shall
revoke all prior designations by the same Participant, shall be in a form
prescribed by the Company, and will be effective only when filed by the
Participant in writing with the Company during the Participant's lifetime. If a
beneficiary designation has not been made, or the beneficiary was not properly
designated (in the sole discretion of the Committee), has died or cannot be
found, all payments after death shall be paid to the Participant's estate. In
case of disputes over the proper beneficiary, the Company reserves the right to
make any or all payments to the Participant's estate.
Article 12. Deferrals
The Committee may permit or require a Participant to defer such
Participant's receipt of the payment of cash or the delivery of Shares that
would otherwise be due to such Participant by virtue of the exercise of an
Option or SAR, the lapse or waiver of restrictions with respect to Restricted
Stock, or the satisfaction of any requirements or goals with respect to
Performance Units/Shares and Cash-Based Awards. If any such deferral election is
required or permitted, the Committee shall, in its sole discretion, establish
rules and procedures for such payment deferrals.
Article 13. Rights of Employees/Directors
13.1 Employment. Nothing in the Plan shall confer upon any Participant
any right to continue in the Company's employ, or as a Director, or interfere
with or limit in any way the right of the Company to terminate any Participant's
employment or directorship at any time.
13.2 Participation. No Employee or Director shall have the right to be
selected to receive an Award under this Plan, or, having been so selected, to be
selected to receive a future Award.
13.3 Rights as a Stockholder. Except as provided in Sections 8.5, 8.6
and 9.5, a Participant shall have none of the rights of a shareholder with
respect to shares of Common Stock covered by any Award until the Participant
becomes the record holder of such shares.
-17-
Article 14. Termination of Employment/Directorship
Each Participant's Award Agreement shall set forth the extent to which
the Participant shall have the right to such Participant's outstanding Award(s)
following termination of the Participant's employment or directorship with the
Company. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the Award Agreements entered into with each
Participant, need not be uniform among all Awards issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination.
Article 15. Change in Control
15.1 Treatment of Outstanding Awards Other than Cash-Based Awards. In
the event of a Change in Control, unless otherwise specifically prohibited under
applicable laws, or by the rules and regulations of any governing governmental
agencies or national securities exchanges, or unless the Board shall determine
otherwise in the Award Agreement:
(a) Any and all Options and SARs granted hereunder shall
become fully exercisable during their remaining term;
(b) Any restriction periods and restrictions imposed on
Restricted Stock that are not performance-based shall
lapse; and
(c) The target payout opportunities attainable under all
outstanding Awards of performance-based Restricted
Stock, Performance Units and Performance Shares shall
be deemed to have been fully earned for the entire
Performance Period(s) as of the effective date of the
Change in Control. The vesting of all such Awards
denominated in Shares shall be accelerated as of the
effective date of the Change in Control and, subject
to Section 15.4, there shall be paid out to
Participants within thirty (30) days following the
effective date of the Change in Control, a pro rata
number of shares based upon an assumed achievement of
all relevant targeted performance goals and upon the
length of time within the Performance Period that has
elapsed prior to the Change in Control. Subject to
Section 15.4, such Awards denominated in cash shall
be paid pro rata to Participants in cash within
thirty (30) days following the effective date of the
Change in Control, with the proration determined as a
function of the length of time within the Performance
Period that has elapsed prior to the Change in
Control, and based on an assumed achievement of all
relevant targeted performance goals.
15.2 Treatment of Cash-Based Awards. Any outstanding Cash-Based Awards
shall not accelerate or vest as a result of a Change in Control. The extent to
which any outstanding Cash-Based Awards are impacted by a Change in Control
shall be governed by the Company's Transitional Compensation Plan, as the same
may be amended from time to time.
-18-
15.3 Limitation on Acceleration.
(a) Intention of Section 15.3: The acceleration or
payment of Awards could, in certain circumstances,
subject the Participant to the excise tax provided
under Section 4999 of the Code. It is the object of
this Section 15.3 to enable each Participant to
retain in full the benefits of the Plan and to
provide for the maximum after-tax income to each
Participant. Accordingly, the Participant must
determine, before any payments are made on Awards
governed by Section 15.1, which of two alternative
forms of acceleration will maximize the Participant's
after-tax proceeds, and must notify the Company in
writing of his or her determination. The first
alternative is the payment in full of all Awards
governed by Section 15.1. The second alternative is
the payment of only a part of the Participant's
Awards so that the Participant receives the largest
payment possible without causing an excise tax to be
payable by the Participant under Section 4999 of the
Code. This second alternative is referred to in this
Section as "Limited Vesting".
(b) Limitation on Participant's Rights: The Participant's
Awards shall be paid only to the extent permitted
under the alternative determined by the Participant
to maximize his or her after-tax proceeds, and the
Participant shall have no rights to any greater
payments on his or her Awards.
(c) Determination to be Conclusive: The determination of
whether Limited Vesting is required and the
application of the rules in Section 15.4 shall
initially be made by the Participant and all such
determinations shall be conclusive and binding on the
Company unless the Company proves that they are
clearly erroneous. In the latter event, such
determinations shall be made by the Company.
15.4 Limitation on Payment. Notwithstanding Section 15.1, if Limited
Vesting applies then the amount paid on exercise or payment of an Award shall
not exceed the largest amount that can be paid without causing an excise tax to
be payable by the Participant under Section 4999 of the Code. If payments are so
limited, awards shall be deemed paid in the following order:
(a) all exercised Options or SARs that were accelerated
pursuant to Section 15.1(a) shall be deemed paid
first;
(b) all awards of Performance Units, Performance Shares
and performance-based Restricted Stock shall then be
deemed paid; and
-19-
(c) finally, all awards of Restricted Stock that are not
performance-based shall be deemed paid.
As among awards or portions of awards of the same
type, those vesting at the most distant time in the future
(absent a Change in Control) shall be deemed paid first.
15.5 Expenses. The Company shall pay all legal fees, court costs, fees
of experts and other costs and expenses when incurred by a Participant in
connection with any actual, threatened or contemplated litigation or legal,
administrative or other proceeding involving the provisions of Section 15.4,
whether or not initiated by the Participant.
15.6 Termination, Amendment, and Modifications of Change-in-Control
Provisions. Notwithstanding any other provision of this Plan or any Award
Agreement provision, the provisions of this Article 15 may not be terminated,
amended, or modified on or after the date of a Change in Control to affect
adversely any Award theretofore granted under the Plan without the prior written
consent of the Participant with respect to said Participant's outstanding
Awards; provided, however, the Committee may terminate, amend, or modify this
Article 15 at any time and from time to time prior to the date of a Change in
Control.
Article 16. Amendment, Modification, and Termination
16.1 Amendment, Modification, and Termination. Subject to the terms of
the Plan, the Committee or the Board may at any time and from time to time,
alter, amend, suspend, or terminate the Plan in whole or in part.
16.2 Awards Previously Granted. Notwithstanding any other provision of
the Plan to the contrary, no termination, amendment, or modification of the Plan
shall adversely affect in any material way any Award previously granted under
the Plan, without the written consent of the Participant holding such Award.
16.3 Shareholder Approval Required for Certain Amendments. Shareholder
approval will be required for any amendment of the Plan that does any of the
following: (a) permits the grant of any Option with an Option Price less than
the Fair Market Value of the Shares on the date of grant; or (b) reduces the
Option Price of an outstanding Option, either by lowering the Option Price or by
canceling an outstanding Option and granting a replacement Option with a lower
exercise price.
16.4 Compliance with Code Section 162(m). At all times when Code Section
162(m) is applicable, to the extent the Committee so determines, all Awards
granted under this Plan to Employees who are or could reasonably become Covered
Employees as determined by the Committee shall comply with the requirements of
Code Section 162(m). In addition, if changes are made to Code Section 162(m) to
permit greater flexibility with respect to any Award or Awards
-20-
available under the Plan, the Committee may, subject to this Article 16, make
any adjustments it deems appropriate.
Article 17. Withholding
17.1 Tax Withholding. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy the Federal statutory minimum, state, and local taxes,
domestic or foreign, required by law or regulation to be withheld with respect
to any taxable event arising as a result of this Plan. The Participant may
satisfy, totally or in part, his obligations pursuant to this Section 17.1 by
electing to have Shares withheld, to redeliver Shares acquired under an Award,
or to deliver previously owned Shares, provided that the election is made in
writing on or prior to (i) the date of exercise, in the case of Options and
SAR's (ii) the date of payment, in respect of Performance Units/Shares, or
Cash-Based Awards, and (iii) the expiration of the incentive period, in respect
of Restricted Stock. Any election made under this Section 17.1 shall be
irrevocable by the Participant and may be disapproved by the Committee at any
time in its sole discretion. If an election is disapproved by the Committee, the
Participant must satisfy his obligations pursuant to this paragraph in cash.
Article 18. Successors
All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the
business, stock and/or assets of the Company.
Article 19. General Provisions
19.1 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural.
19.2 Severability. If any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.
19.3 Requirements of Law. The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.
-21-
19.4 Securities Law Compliance. With respect to Insiders, transactions
under this Plan are intended to comply with all applicable conditions of Rule
16b-3 or its successors under the Exchange Act, unless determined otherwise by
the Board. To the extent any provision of the Plan or action by the Committee
fails to so comply, it shall be deemed null and void, to the extent permitted by
law and deemed advisable by the Board.
19.5 Listing. The Company may use reasonable endeavors to register
Shares allotted pursuant to the exercise of an Option with the United States
Securities and Exchange Commission or to effect compliance with the
registration, qualification, and listing requirements of any national securities
laws, stock exchange, or automated quotation system.
19.6 Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.
19.7 No Additional Rights. Neither the Award nor any benefits arising
under this Plan shall constitute part of an employment contract between the
Participant and the Company or any Subsidiary or Affiliate, and accordingly,
subject to Section 16.2, this Plan and the benefits hereunder may be terminated
at any time in the sole and exclusive discretion of the Committee without giving
rise to liability on the part of the Company or any Affiliate for severance
payments.
19.8 Employees Based Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, to comply with provisions of laws in
other countries in which the Company, its Affiliates, and its Subsidiaries
operate or have Employees, the Committee, in its sole discretion, shall have the
power and authority to:
(a) Determine which Affiliates and Subsidiaries will be
covered by the Plan or relevant subplans;
(b) Determine which Employees employed outside the United
States are eligible to become Participants in the
Plan;
(c) Modify the terms and conditions of any Award granted
to Participants who are employed outside the United
States;
(d) Establish subplans, modified exercise procedures, and
other terms and procedures to the extent such actions
may be necessary, advisable or convenient, or to the
extent appropriate to provide maximum flexibility for
the Participant's financial planning. Any subplans
and modifications to the Plan terms or procedures
established under this Section 19.8 by the Committee
shall be filed with the Plan document as Appendices;
and
-22-
(e) Take any action, before or after an Award is made,
which the Committee deems advisable to obtain, comply
with, or otherwise reflect any necessary governmental
regulatory procedures, exemptions or approvals, as
they may affect this Plan, any subplan, or any
Participant.
19.9 Uncertificated Shares. To the extent that the Plan provides for
issuance of certificates to reflect the transfer of Shares, the transfer of such
Shares may be effected on a noncertificated basis, to the extent not prohibited
by applicable law or the rules of any stock exchange.
19.10 Governing Law. The Plan and each Award Agreement shall be governed
by the laws of the State of Delaware, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of
the Plan to the substantive law of another jurisdiction. Unless otherwise
provided in the Award Agreement, recipients of an Award under the Plan are
deemed to submit to the exclusive jurisdiction and venue of the federal or state
courts located in the Commonwealth of Virginia, County of Fairfax, to resolve
any and all issues that may arise out of or relate to the Plan or any related
Award Agreement.
Exhibit 5
---------
[Gannett letterhead]
May 8, 2001
Gannett Co., Inc.
1100 Wilson Boulevard
Arlington, Virginia 22234
Ladies and Gentlemen:
I have acted as counsel to Gannett Co., Inc., a Delaware corporation
(the "Company"), in connection with the preparation and filing with the
Securities and Exchange Commission of a registration statement on Form S-8 under
the Securities Act of 1933, as amended (the "Registration Statement"), relating
to 12,000,000 shares of the Company's common stock, par value $1.00 per share
(which includes 11,990,000 shares of common stock registered but not issued in
connection with the Company's 1978 Executive Long-Term Incentive Plan, which
shares are carried forward to and deemed covered by the Registration Statement)
(collectively, the "Shares"), to be issued by the Company as provided in the
Registration Statement pursuant to the Company's 2001 Omnibus Incentive
Compensation Plan (the "Plan").
In this connection, I have examined the originals or copies, certified
or otherwise identified to my satisfaction, of the Restated Certificate of
Incorporation and the Amended and Restated By-Laws of the Company, resolutions
of the Company's Board of Directors and the Plan. I express no opinion
concerning the laws of any jurisdiction other than the federal law of the United
States and the General Corporation Law of the State of Delaware.
Based on the foregoing, I am of the opinion that the Shares have been
duly and validly authorized for issuance and, when issued in the manner set
forth in the Registration Statement, will be validly issued, fully paid and
non-assessable by the Company under the laws of the State of Delaware.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/Thomas L. Chapple
------------------------
Thomas L. Chapple
Exhibit 23(a)
-------------
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Registration
Statement on Form S-8 of our report dated February 8, 2001 relating to the
financial statements, which appears in the 2000 Annual Report to Shareholders of
Gannett Co., Inc., which is incorporated by reference in Gannett's Annual Report
on Form 10-K for the fifty-three week period ended December 31, 2000. We consent
to the incorporation by reference of our report dated February 8, 2001 relating
to the financial statement schedules, which appears in such Annual Report on
Form 10-K. We also consent to the reference to us under the heading "Interest of
Named Experts and Counsel" in such Registration Statement.
PricewaterhouseCoopers LLP
Washington, D.C.
May 8, 2001
