exv10w5






Exhibit 10.5




Madison Square Garden, Inc. 2009 Cash Incentive Plan



1. Purpose. The purposes of the Madison Square Garden, Inc. 2009 Cash Incentive Plan are
(a) to advance the interest of the Company and its shareholders by providing a means to motivate
the employees of the Company and its Affiliates, upon whose judgment, initiative and efforts the
continued success, growth and development of the Company is dependent; (b) to link the rewards of
the employees of the Company and its Affiliates to the achievement of specific performance
objectives and goals when so desired; (c) to assist the Company and its Affiliates in maintaining a
competitive total compensation program that serves to attract and retain the most highly qualified
individuals; and (d) to permit the grant and payment of awards that are deductible to the Company
pursuant to Section 162(m) of the Internal Revenue Code when so desired.



2. Definitions. When used in this Plan, unless the context otherwise requires:





(a) “Affiliate” shall mean (i) any Entity controlling, controlled by, or under common
control with the Company or any other Affiliate and (ii) any Entity in which the Company
owns at least five percent of the outstanding equity interest of such Entity.




(b) “Annual Incentive Award” shall mean an annual incentive award to be earned (and
therefore payable) in respect of a Participant’s performance over one Plan Year, granted
pursuant to Section 6.




(c) “Award” shall mean a cash award which is granted or made under the Plan including
an Annual Incentive Award and a Long-Term Incentive Award.




(d) “Board of Directors” shall mean the Board of Directors of the Company, as
constituted at any time.




(e) “Committee” shall mean the Compensation Committee of the Board of Directors, as
described in Section 3.




(f) “Company” shall mean Madison Square Garden, Inc., a Delaware corporation.




(g) “Covered Employee” shall mean any employee of the Company or its subsidiaries
who, in the discretion of the Committee, is likely to be a “covered employee” under Section
162(m) of the Internal Revenue Code for the year in which an Award is payable and any
employee of the Company or an Affiliate designated by the Committee as such, in its
discretion, for purposes of an Award.




(h) “Entity” shall mean any business, corporation, partnership, limited liability
company or other entity.




(i) “GAAP” shall mean accounting principles generally accepted in the United States
of America.



 









 






(j) “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended.




(k) “Long-Term Incentive Award” shall mean a long-term incentive award to be earned
over a period extending beyond one Plan Year, granted pursuant to Section 5.




(l) “Participant” shall mean an employee of the Company or an Affiliate who is
granted an Award by the Committee under the Plan.




(m) “Performance Criteria” shall mean a goal or goals established by the Committee
and measured over a period or periods selected by the Committee, such goal(s) to constitute
a requirement that must be met in connection with the vesting, exercise and/or payment of an
Award under the Plan as specified by the Committee. To the extent that an Award is intended
to satisfy the requirements for deductibility under Section 162(m) of the Internal Revenue
Code, the payment of the Award will be conditioned on the satisfaction of one or more of the
performance criteria listed below over a period or periods selected by the Compensation
Committee. The performance criteria may be determined by reference to the performance of the
Company, an affiliate or a business unit, product, team, venue, production, event, network
or service thereof or any combination of the foregoing. Such criteria may also be measured
on a per customer, subscriber, sponsor, viewer (or available viewer), basic or diluted share
basis or any combination of the foregoing and may reflect absolute performance, incremental
performance or comparative performance to other companies (or their products or services)
determined on a gross, net, GAAP or non-GAAP basis, with respect to one or more of the
following: (i) net or operating income or other measures of profit; (ii) measures of
revenue; (iii) earnings before interest, taxes, depreciation and amortization (EBITDA); (iv)
cash flow, free cash flow, adjusted operating cash flow and similar measures; (v) return on
equity, investment, assets or capital; (vi) gross or operating margins or savings; (vii)
performance relative to budget, forecast or market expectations; (viii) market share or
penetration, subscriber or customer acquisition or retention, ratings, viewership,
facilities utilization or attendance; (ix) sports team performance; (x) operating metrics
relating to sales, subscriptions, sponsorships or customer service or satisfaction; (xi)
capital spending management, network upgrades, facility maintenance, construction or
renovation or product or service deployments; (xii) achievement of strategic business
objectives such as acquisitions, dispositions or investments; (xiii) a specified increase in
the fair market value of the Company’s common stock; (xiv) a specified increase in the
private market value of the Company; (xv) the price of the Company’s common stock; (xvi)
earnings per share; and/or (xvii) total shareholder return.




(n) “Permitted Transferees” shall have the meaning set forth in Paragraph 9 hereof.




(o) “Plan” shall mean the Madison Square Garden, Inc. 2009 Cash Incentive Plan, as it
may be amended from time to time.




(p) “Plan Year” shall mean the Company’s fiscal year.



 









 






3. Administration.




(a) The Plan shall be administered by the Committee, which shall consist of at least two
members of the Board of Directors who shall be appointed by, and shall serve at the pleasure of,
the Board of Directors. Except as otherwise determined by the Board of Directors, the members of
the Committee shall be “outside directors” to the extent
required by Section 162(m) of the Internal
Revenue Code; provided, however, that the failure of the Committee to be so comprised shall not
cause any Award to be invalid. The Committee may delegate any of its powers under the Plan to a
subcommittee of the Committee (which hereinafter shall also be referred to as the Committee). The
Committee may also delegate to any person who is not a member of the Committee or to any
administrative group within the Company, any of its powers, responsibilities or duties. In
delegating its authority, the Committee shall consider the extent to which any delegation may cause
Awards to fail to be deductible under Section 162(m) of the Internal Revenue Code.




(b) The Committee shall have full authority, subject to the terms of the Plan (including
Section 10), to (a) exercise all of the powers granted to it under the Plan, (b) construe,
interpret and implement the Plan, grant terms and grant notices, and all Awards and Award
certificates, (c) prescribe, amend and rescind rules and regulations relating to the Plan,
including rules governing its own operations, (d) make all determinations necessary or advisable in
administering the Plan, (e) correct any defect, supply any omission and reconcile any inconsistency
in the Plan, (f) amend the Plan, (g) grant Awards and determine who shall receive Awards and the
terms and conditions of such Awards, including, but not limited to, conditioning the payout or
other term or condition of an Award on the achievement of Performance Criteria, if so desired, (h)
amend any outstanding Award in any respect including, without limitation, to (1) accelerate the
time or times at which an Award is paid or (2) waive or amend any goals, restrictions, conditions
or Performance Criteria (subject to the requirements of Section
162(m) of the Internal Revenue
Code, if applicable to the Award) applicable to such Award, or impose new goals or restrictions and
(i) determine at any time whether, to what extent and under what circumstances and method or
methods (1) Awards may be paid, canceled, forfeited or suspended or (2) amounts payable with
respect to an Award may be deferred either automatically or at the election of the participant or
of the Committee. The enumeration of the foregoing powers is not intended and should not be
construed to limit in any way the authority of the Committee under the Plan which is intended, to
the fullest extent permitted by law, to be plenary. The Plan, and all such rules, regulations,
determinations and interpretations, shall be binding and conclusive upon the Company, its
stockholders and all Participants, and upon their respective legal representatives, heirs,
beneficiaries, successors and assigns and upon all other persons claiming under or through any of
them.




(c) No member of the Board of Directors or the Committee or any employee of the Company or
any of its Affiliates (each such person an “Affected Person”) shall have any liability to any person
(including, without limitation, any Participant) for any action taken or omitted to be taken or any
determination made in good faith with respect to the Plan or any Award. Each Affected Person shall
be indemnified and held harmless by the Company against and from any loss, cost, liability or
expense (including attorneys’ fees) that may be imposed upon or incurred



 









 







by such Affected Person in connection with or resulting from any action, suit or proceeding to
which such Affected Person may be a party or in which such Affected Person may be involved by
reason of any action taken or omitted to be taken under the Plan and against and from any and all
amounts paid by such Affected Person, with the Company’s approval, in settlement thereof, or paid
by such Affected Person in satisfaction of any judgment in any such action, suit or proceeding
against such Affected Person; provided that, the Company shall have the right, at its own expense,
to assume and defend any such action, suit or proceeding and, once the Company gives notice of its
intent to assume the defense, the Company shall have sole control over such defense with counsel of
the Company’s choice. The foregoing right of indemnification shall not be available to an Affected
Person to the extent that a court of competent jurisdiction in a final judgment or other final
adjudication, in either case, not subject to further appeal, determines that the acts or omissions
of such Affected Person giving rise to the indemnification claim resulted
from such Affected Person’s bad faith, fraud or willful criminal act or omission. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which
Affected Persons may be entitled under the Company’s Certificate of Incorporation or by-laws, as a
matter of law, or otherwise, or any other power that the Company may have to indemnify such persons
or hold them harmless.




4. Participants. All employees of the Company or an Affiliate shall be eligible to receive
Awards under the Plan. Nothing herein contained shall be construed to prevent the making of one or
more Awards at the same or different times to the same employee.




5.
Long-Term Incentive Awards.




(a) Terms and Conditions. The amount, form, terms and conditions of each Long-Term
Incentive Award shall be determined by the Committee in its sole discretion and may be set forth in
an Award certificate. Such terms and conditions may include, without limitation, the date or dates
and the conditions or circumstances upon which such Award shall be paid to the Participant,
forfeited or otherwise modified. The Committee may, in its sole discretion, establish one or more
conditions to the entitlement of a Long-Term Incentive Award including, without limitation,
conditions the satisfaction of which are measured by the achievement of Performance Criteria.




(b) Duration of Awards. The duration of any Long-Term Incentive Award granted under this
Plan shall be for a period fixed by the Committee but shall in no event be more than ten years.




(c) Dollar Limitation. At the time a Long-Term Incentive Award is granted, the Committee
shall determine whether it is intended to satisfy the requirements of Section 162(m) of the
Internal Revenue Code. In no event shall any Covered Employee be granted, in any one Plan Year,
Long-Term Incentive Awards intended to satisfy such requirements that provide for the maximum
payment of an aggregate amount exceeding $10 million.




(d) Committee Certification. If the Company establishes conditions to the entitlement of a
Long-Term Incentive Award relating to the achievement of Performance Criteria pursuant to Section
5(a), the Committee shall determine (in a writing consistent with the requirements of



 









 







Section 162(m) of the Internal Revenue Code with respect to any Covered Employee) whether the
Performance Criteria have been met with respect to any affected Participant and, if they have, so
certify and ascertain the amount of the applicable Long-Term Incentive Award. No such Long-Term
Incentive Award will be paid until such certification is made by the Committee.




(e) Payment of Long-Term Incentive Awards. Long-Term Incentive Awards shall be payable as
soon as practicable following the certification by the Committee described in Section 5(d). All or
any part of any outstanding Long-Term Incentive Awards granted to any Participant shall be payable
upon the occurrence of such special circumstances or events as determined in the sole discretion of
the Committee.




6. Annual Incentive Awards.




(a) Terms and Conditions. The amount, form, terms and conditions of each Annual Incentive
Award shall be determined by the Committee in its sole discretion and may be set forth
in an Award certificate. Such terms and conditions may include, without limitation, the date or
dates and the conditions upon which such Award shall be paid to the Participant or forfeited. The
Committee may, in its sole discretion, establish one or more conditions to the entitlement of an
Annual Incentive Award including, without limitation, conditions the satisfaction of which are
measured by the achievement of Performance Criteria.




(b) Dollar Limitation. At the time an Annual Incentive Award is granted, the Committee
shall determine whether it is intended to satisfy the requirements of Section 162(m) of the
Internal Revenue Code. In no event shall any Covered Employee be granted, in respect of performance
in any one Plan Year, Annual Incentive Awards intended to satisfy such requirements in a maximum
amount exceeding in the aggregate $10 million.




(c) Committee Certification. If the Company establishes conditions to the entitlement of an
Annual Incentive Award relating to the achievement of Performance Criteria pursuant to Section
6(a), the Committee shall determine (in a writing consistent with the requirements of Section
162(m) of the Internal Revenue Code with respect to any Covered Employee) whether the Performance
Criteria have been met with respect to any affected Participant and, if they have, so certify and
ascertain the amount of the applicable Annual Incentive Award. No Annual Incentive Award will be
paid until such certification is made by the Committee.




(d) Payment of Annual Incentive Awards. Annual Incentive Awards shall be payable as soon as
practicable following the certification by the Committee described in Section 6(c). All or any part
of any outstanding Annual Incentive Awards granted to any Participant shall be payable upon the
occurrence of such special circumstances or events as determined in the sole discretion of the
Committee.




7. No Right to Continued Employment. Nothing in the Plan or in any Award certificate shall
confer upon any Participant the right to continued employment by the Company or any Affiliate or
affect any right which the Company or any Affiliate may have to terminate such employment.



 









 






8. Withholding. If the Company or an Affiliate shall be required to withhold any amounts by
reason of federal, state or local tax laws, rules or regulations in respect of the payment of an
Award to the Participant, the Company or an Affiliate shall be entitled to deduct or withhold such
amounts from any cash payments made to the Participant. In any event, the Participant shall make
available to the Company or Affiliate, promptly when requested by the Company or such Affiliate,
sufficient funds to meet the requirements of such withholding and the Company or Affiliate shall be
entitled to take and authorize such steps as it may deem advisable in order to have such funds made
available to the Company or Affiliate out of any funds or property due to the Participant.




9. Non-Transferability of Awards. Unless the Committee shall permit (on such terms and
conditions as it shall establish) an Award to be transferred to a member of the Participant’s
immediate family or to a trust or similar vehicle for the benefit of members of the Participant’s
immediate family (collectively, the “Permitted Transferees”), no Award shall be assignable or
transferable by a Participant except by will or by the laws of descent and distribution, and except
to the extent required by law, no right or interest of any Participant shall be subject to any
lien, obligation or liability of the Participant.




10. Administration and Amendment of the Plan. The Board of Directors or the Committee may
discontinue the Plan at any time and from time to time may amend or revise the terms of the Plan,
as permitted by applicable law, except that it may not amend or revise, in any manner unfavorable
to a recipient (other than if immaterial), any Long-Term Incentive Award, without the consent of
the recipient of that Long-Term Incentive Award.




11. Right of Offset. The Company shall have the right to offset against its obligation to
deliver amounts under any Award any outstanding amounts of whatever nature that the Participant
then owes to the Company or any of its Affiliates.




12. Effective Date. The Plan shall become effective upon approval by the stockholders of
the Company.




13. Severability. If any of the provisions of this Plan is finally held to be invalid,
illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to
the extent, but only to the extent, of such invalidity, illegality or unenforceability and the
remaining provisions shall not be affected thereby; provided, that, if any of such provisions is
finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope
determined to be acceptable to permit such provision to be enforceable, such provision shall be
deemed to be modified to the minimum extent necessary to modify such scope in order to make such
provision enforceable hereunder.




14. Plan Headings. The headings in this Plan are for the purpose of convenience only and
are not intended to define or limit the construction of the provisions hereof.




15. Non-Uniform Treatment. The Committee’s determinations under the Plan need not be
uniform and may be made by it selectively among persons who receive, or are eligible to receive,
Awards (whether or not such persons are similarly situated). Without limiting the generality of



 









 







the foregoing, the Committee shall be entitled, among other things, to make non-uniform and
selective determinations, amendments and adjustments, and to enter into non-uniform and selective
Award certificates, as to the persons who receive Awards under the Plan, and the terms and
provisions of Awards under the Plan.




16. Governing Law. All rights and obligations under the Plan shall be construed and
interpreted in accordance with the laws of the State of New York, without giving effect to
principles of conflict of laws.




17. Successors and Assigns. The terms of this Plan shall be binding upon and inure to the
benefit of the Company and its successors and assigns.




18. Final Issuance Date. No Awards shall be made under this Plan after [•].