Document:

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                                                                   EXHIBIT 10(x)

                            THE SEAGRAM COMPANY LTD.
                             1988 STOCK OPTION PLAN

ARTICLE I
PURPOSE

       The purpose of The Seagram Company Ltd. 1988 Stock Option Plan is to
provide selected employees of The Seagram Company Ltd. and its subsidiaries an
opportunity to purchase common shares of The Seagram Company Ltd., and to
benefit from the appreciation thereof, thus providing an increased incentive for
these employees to contribute to the future success and prosperity of The
Seagram Company Ltd., enhancing the value of the common shares for the benefit
of the shareholders and increasing the ability of The Seagram Company Ltd. and
its subsidiaries to attract and retain individuals of exceptional skill.

ARTICLE II
DEFINITIONS

       The following capitalized terms used in the Plan shall have the
respective meanings set forth in this Article:

2.0    Affiliate: A person or entity controlling, controlled by, or under common
       control with, The Seagram Company Ltd.

2.1    Approval Date: The later of the date of approval of the Plan by the
       shareholders of The Seagram Company Ltd. and by the applicable regulatory
       authorities and stock exchanges, each as contemplated by Article XII
       hereof.

2.2    Board: The Board of Directors of The Seagram Company Ltd.

2.3    Code: The United States Internal Revenue Code of 1986, as amended, and
       the rules and regulations promulgated thereunder.

2.4    Committee: The Seagram Company Ltd. Human Resources Committee or such
       other persons designated by the Board.

2.5    Common Shares: The common shares of The Seagram Company Ltd.

2.6    Company: The Seagram Company Ltd., any of its Subsidiaries or any other
       Affiliate designated by the Board.

2.7    Disability: Inability to engage in any substantial gainful activity by
       reason of a medically determinable physical or mental impairment which
       constitutes a permanent and total disability, as defined in section 22
       (e) ( 3 ) of the Code. The determination whether a

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       participant has suffered a Disability shall be made by the Committee
       based upon such evidence as it deems necessary and appropriate.

2.8    Disinterested Persons: Disinterested persons within the meaning of Rule
       16b-3, as promulgated under the United States Securities Exchange Act of
       1934, as amended.

2.9    Employer. The Company that employs the employee or Optionee.

2.10   Fair Market Value: The mean between high and low prices of the Common
       Shares as reported on the composite tape for securities traded on the New
       York Stock Exchange on a given day.

2.11   ISO: An incentive stock option within the meaning of section 422A of the
       Code.

2.12   Non-ISO: A stock option that is not an ISO.

2.13   Option: A stock option (whether ISO or Non-ISO) granted under the Plan.

2.14   Option Price: The purchase price of a Common Share under an Option.

2.15   Optionee: An employee of the Company who has been granted one or more
       Options.

2.16   Parent Corporation: A parent corporation, as defined in section 425 (e)
       of the Code.

2.17   Plan: The Seagram Company Ltd. 1988 Stock Option Plan, as from time to
       time amended.

2.18   Retirement: Separation from service with the Company on or after
       attainment of age 65 or, with the prior written consent of the Company,
       retirement at an earlier age.

2.19   Stock Appreciation Right: A stock appreciation right, as defined in
       Section 6.7 of the Plan.

2.20   Subsidiary: A subsidiary corporation, as defined in section 425 (f) of
       the Code.

2.21   Termination Date: A date fixed by the Committee but not later than the
       day preceding the tenth anniversary of the date on which the Option is
       granted.

ARTICLE III
ADMINISTRATION

       3.1    Except as otherwise provided in the Plan, the Committee shall
administer the Plan and shall have full power to grant Options, construe and
interpret the Plan, establish and amend rules and regulations for its
administration, and perform all other acts relating to the Plan, including the
delegation of administrative responsibilities, that it believes reasonable and
proper.

       3.2    The Committee shall consist of not less than three persons, all of
whom shall be Disinterested Persons. The members of the Committee shall serve at
the pleasure of the Board, which shall have the power, at any time and from time
to time, to remove members from the

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Committee or to add members thereto. Vacancies on the Committee, however caused,
shall be filled by the Board.

       3.3    Subject to the provisions of the Plan, the Committee shall, in
its discretion, determine which employees shall be granted Options, the number
of shares subject to option under any such Options (which cannot with respect to
any one Optionee exceed more than 5% of the then outstanding Common Shares), the
dates after which Options may be exercised (which shall not be earlier than the
Approval Date nor later than the Termination Date), in whole or in part, whether
Options shall be ISO's, any restriction imposed on Common Shares received upon
the exercise of Options and the terms and conditions of the Options.

       3.4    Any decision made, or action taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration of
the Plan shall be final and conclusive.

ARTICLE IV
SHARES SUBJECT TO THE PLAN

       4.1    The total number of Common Shares available for grants of Options
under the Plan shall be 5,000,000, subject to adjustment in accordance with
Article VIII of the Plan. These Common Shares shall be authorized but unissued
Common Shares. If an Option or portion thereof shall expire or terminate for any
reason without having been exercised in full, the unpurchased Common Shares
covered by such Option shall be available for future grants of Options. An
Option, or portion thereof, exercised through the exercise of a Stock
Appreciation Right pursuant to Section 6.7 of the Plan shall be treated, for
purposes of this Article IV, as though the Option, or portion thereof, had been
exercised through the purchase of Common Shares, with the result that the Common
Shares subject to the Option, or portion thereof, that was so exercised shall
not be available for future grants of Options.

ARTICLE V
ELIGIBILITY

       5.1    Options may be granted to selected employees of the Company.

ARTICLE VI
TERMS OF OPTIONS

       6.1    Option Agreements: All Options shall be evidenced by written
agreements executed by the Company and the Optionee. Such Options shall be
subject to the applicable provisions of the Plan, and shall contain such
provisions as are required by the Plan and any other provisions the Committee
may prescribe. All agreements evidencing Options shall specify the total number
of Common Shares subject to each grant, the Option Price and the Termination
Date. Those Options that comply with the requirements for an ISO set forth in
section 422A of the Code shall be designated ISOs and all other Options shall be
designated Non-ISOs.

       6.2    Option Price: Except as provided in Section 6.4, the Option Price
shall be the Fair Market Value of a Common Share on the date the Option is
granted, but in no event shall the Option Price be less than that permitted by
applicable laws, rules, by-laws or policies of regulatory authorities or stock
exchanges.

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       6.3    Period of Exercise: Subject to Section 3.3, the Committee shall
determine the dates after which Options may be exercised in whole or in part.
The Committee may amend an Option to accelerate the date after which Options may
be exercised in whole or in part.

       6.4    Special Rules Regarding ISOs Granted to Certain Employees:
Notwithstanding any contrary provisions of Sections 6.2 and 6.3 of the Plan, no
ISO shall be granted to any employee who, at the time the Option is granted,
owns (directly or within the meaning of section 425 (d) of the Code) more than
ten percent of the total combined voting power of all classes of stock of the
Employer or of any Subsidiary or Parent Corporation thereof, unless (a) the
Option Price under such Option is at least 110 percent of the Fair Market Value
of a Common Share on the date the Option is granted and (b) the Termination Date
of such Option is a date not later than the day preceding the fifth anniversary
of the date on which the Option is granted.

       6.5    Manner of Exercise and Payment: Subject to Section 6.3, an
Option, or portion thereof, shall be exercised by delivery of a written notice
of exercise to the Company and payment of the full price of the Common Shares
being purchased pursuant to the Option. An Optionee may exercise an Option with
respect to less than the full number of Common Shares for which the Option may
then be exercised, but an Optionee must exercise the Option in full Common
Shares. The price of Common Shares purchased pursuant to an Option, or portion
thereof, may be paid:

       a)     in United States dollars in cash or by check, bank draft or money
              order payable to the order of the Company;

       b)     through the delivery of Common Shares with an aggregate Fair
              Market Value on the date of exercise equal to the Option Price;

       c)     through the delivery of irrevocable instructions to a broker to
              deliver promptly to the Company an amount equal to the Option
              Price; or

       d)     by any combination of the above methods of payment;

provided, however, that the Company shall not be obliged to purchase or accept
the surrender in payment of any such Common Shares if any such action would be
prohibited by the applicable laws governing the Company or the Committee shall
determine that such action is not in the best interests of the Company.

       The Committee shall determine acceptable methods for tendering Common
Shares or irrevocable instructions to a broker as payment upon exercise of an
Option and may impose such limitations and prohibitions on the use of Common
Shares or irrevocable instructions to a broker to exercise an Option as it deems
appropriate.

       6.6    Withholding Taxes: The Company may, in its discretion, require an
Optionee to pay to the Company the amount, or make such other arrangements
(including the withholding of Common Shares which would otherwise be delivered
upon exercise), at the time of exercise or thereafter, that the Company deems
necessary to satisfy its obligation to withhold federal, provincial, state or
local income or other taxes incurred by reason of the exercise.

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       6.7    Stock Appreciation Rights: At or after the grant of an Option,
the Committee, in its discretion, may provide an Optionee with an alternate
means of exercising such Option, or a designated portion thereof, by granting
the Optionee a Stock Appreciation Right. A Stock Appreciation Right with respect
to an Option or portion thereof is a right to receive, upon exercise thereof, an
amount equal to the excess of the Fair Market Value of a Common Share on the
date of exercise over the Option Price of such Option, multiplied by the number
of Common Shares that the Optionee would have received had such Option or
portion thereof been exercised through the purchase of Common Shares at such
Option Price, provided that (a) such Option or portion thereof has been
designated as exercisable in this alternative manner, (b) such Option or portion
thereof is otherwise exercisable and (c) the Fair Market Value of a Common Share
on the date of exercise exceeds such Option Price. Such amount shall be paid in
cash and/or Common Shares at the discretion of the Committee. Upon the exercise
of a Stock Appreciation Right in the manner herein provided, the Option or
portion thereof to which such Stock Appreciation Right relates shall be deemed
in the case of a cash payment to have been cancelled and in the case of a
payment in Common Shares to have been exercised. Common Shares issued as a
result of the exercise of a Stock Appreciation Right shall be deemed issued at
the Fair Market Value thereof on the date the Stock Appreciation Right is
exercised. Notwithstanding any other provision of the Plan, if an Optionee is a
director or officer subject to Section 16(b) of the United States Securities
Exchange Act of 1934, as amended, at the time of exercise, the Optionee may
exercise his Stock Appreciation Rights only during the periods which begin on
the third business day following the release by The Seagram Company Ltd. of
annual or quarterly financial information to the public and end on the twelfth
business day following such date.

       6.8    Nontransferability of Options: Each Option shall, during the
Optionee's lifetime, be exercisable only by the Optionee, and neither it nor any
right hereunder shall be transferable otherwise than by will or the laws of
descent and distribution or be subject to attachment, execution or other similar
process. In the event of any attempt by the Optionee to alienate, assign,
pledge, hypothecate or otherwise dispose of an Option or of any right hereunder,
except as provided for herein, or in the event of any levy or any attachment,
execution or similar process upon the rights or interest hereby conferred, the
Company may terminate the Option by notice to the Optionee and the Option shall
thereupon become null and void.

       6.9    Cessation of Employment of Optionee:

       a)     Cessation of Employment other than by Reason of Retirement,
              Disability or Death. If an Optionee shall cease to be employed by
              the Company otherwise than by reason of Retirement, Disability or
              death, each Option held by the Optionee, together with all rights
              hereunder, shall terminate on the date of cessation of employment,
              to the extent not previously exercised.

       b)     Cessation of Employment by Reason of Retirement or Disability. If
              an Optionee shall cease to be employed by the Company by reason of
              Retirement or Disability, each Option held by the Optionee shall
              be exercisable until the Termination Date set forth in the Option.

       c)     Cessation of Employment by Reason of Death. If an Optionee shall
              die while employed by the Company, or at any time after cessation
              of employment by

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              reason of Retirement or Disability, an Option may be exercised at
              any time or from time to time prior to the Termination Date set
              forth in the Option, by the person or persons to whom the
              Optionee's rights under each Option shall pass by will or by the
              applicable laws of descent and distribution. Any person or persons
              to whom an Optionee's rights under an Option have passed by will
              or by the applicable laws of descent and distribution shall be
              subject to all terms and conditions of the Plan and the Option
              applicable to the Optionee.

       6.10   Notification of Sales of Common Shares: Any Optionee who
disposes of Common Shares acquired upon the exercise of an ISO either (a) within
two years after the date of the grant of the ISO under which the shares were
acquired or (b) within one year after the transfer of such Common Shares to the
Optionee, shall notify the Company of such disposition and of the amount
realized upon such disposition.

ARTICLE VII
LIMITATION ON GRANTS OF ISOS

       7.1    The aggregate Fair Market Value (determined as of the date the
Option is granted) of the Common Shares subject to an ISO granted after December
31, 1986 under this or any other stock option plan maintained by the Company,
the Parent Corporation or any Subsidiary with respect to which any such ISO is
first exercisable by an employee during any calendar year shall not exceed
$100,000.

ARTICLE VIII
ADJUSTMENTS

       8.1    If (a) the Company shall at any time be involved in a transaction
to which section 425 (a) of the Code is applicable; (b) the Company shall
declare a dividend payable in, or shall subdivide or combine, its Common Shares;
or (c) any other event shall occur which in the judgment of the Committee
necessitates action by way of adjusting the terms of the outstanding Options,
the Committee may take any such action as in its judgment shall be necessary to
preserve the Optionee's rights substantially proportionate to the rights
existing prior to such event and to the extent that such action shall include an
increase or decrease in the number of Common Shares subject to outstanding
Options, the number of Common Shares available under Article IV above may be
increased or decreased, as the case may be, proportionately. The judgment of the
Committee with respect to any matters referred to in this Article shall be
conclusive and binding upon each Optionee. The exercise by the Committee of its
authority under this Article is subject to the approval of the Board as and when
required by applicable laws, rules, by-laws or policies of regulatory
authorities or stock exchanges.

ARTICLE IX
AMENDMENT AND TERMINATION OF THE PLAN

       9.1    The Board may at any time, or from time to time, suspend or
terminate the Plan in whole or in part or amend it in such respects as the Board
may deem appropriate; provided, however, that no such amendment shall be made
without approval of the shareholders which would:

       a)     materially modify the eligibility requirements for receiving
              Options;

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       b)     increase the total number of Common Shares which may be issued
              pursuant to Options, excep t as is provided for in accordance with
              Article VIII of the Plan;

       c)     extend the period of granting Options; or

       d)     materially increase in any other way the benefits accruing to
              Optionees.

       9.2    No amendment, suspension or termination of the Plan shall,
without the Optionee's consent, impair any of the rights or obligations under
any Option theretofore granted to an Optionee under the Plan.

       9.3    The Committee may amend the Plan, subject to the limitations
cited above, in such manner as it deems necessary to permit the granting of
Options meeting the requirements of future amendments or issued regulations, if
any, to the Code or other applicable laws, rules, by-laws or policies of
regulatory authorities or stock exchanges.

       9.4    No amendment shall be effective until all applicable approvals,
if any, of regulatory authorities and stock exchanges have been obtained.

ARTICLE X
GOVERNMENT AND OTHER REGULATIONS

       10.1   The obligation of the Company to issue, or transfer and deliver
Common Shares for Options exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approvals which shall then be in
effect and required by governmental entities and any stock exchanges on which
Common Shares are traded.

ARTICLE XI
MISCELLANEOUS PROVISIONS

       11.1   The Plan Does Not Confer Employment or Shareholder Rights: The
right of the Company to terminate at will (whether by dismissal, discharge or
otherwise) the Optionee's employment with it at any time is specifically
reserved. Neither the Optionee nor any person entitled to exercise the
Optionee's rights in the event of the Optionee's death shall have any rights of
a shareholder with respect to the Common Shares subject to each Option, except
to the extent that, and until, such Common Shares shall have been issued upon
the exercise of each Option.

       11.2   Plan Expenses: Any expenses of administering the Plan shall be
borne by the Company.

       11.3   Use of Exercise Proceeds: Payments received from Optionees upon
the exercise of Options shall be used for the general corporate purposes of the
Company.

       11.4   Indemnification: In addition to such other rights of
indemnification as they may have as members of the Board, or the Committee, the
members of the Board and the Committee shall be indemnified by the Company
against all costs and expenses reasonably incurred by them in connection with
any action, suit or proceeding to which they or any of them may be party by
reason of any action taken or failure to act under or in connection with the
Plan or any Option

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granted thereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except a judgment based upon a finding of bad faith;
provided that upon the institution of any such action, suit or proceeding, a
Committee or Board member shall, in writing, give the Company notice thereof and
an opportunity, at its own expense, to handle and defend the same before such
Committee or Board member undertakes to handle and defend it on such member's
own behalf.

ARTICLE XII
SHAREHOLDER APPROVAL AND EFFECTIVE DATES

       12.1   The Plan shall become effective when it is adopted by the Board.
However, if (a) the Plan is not approved by the vote of the holders of a
majority of the outstanding Common Shares at the Annual Meeting of Shareholders
of The Seagram Company Ltd. to be held on May 26, 1988 or at any adjournment
thereof or (b) the necessary regulatory and stock exchange approvals are not
obtained within one year after the date the Plan is adopted by the Board, the
Plan and all Options shall terminate. Options may not be granted under the Plan
after the fifth anniversary of the effective date.

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                                   APPENDIX A
                                       TO
                            THE SEAGRAM COMPANY LTD.
                             1988 STOCK OPTION PLAN
              ADDITIONAL ARTICLES FOR UNITED KINGDOM OPTIONEES ONLY

ARTICLE XIII
PURPOSE

       The purpose of these additional articles is to obtain Approved Option
status under the laws of the United Kingdom ("U.K.") for Optionees in the Plan.
These articles are to be read as a continuation of the Plan and only modify the
Approved Options granted under the Plan to U.K. Optionees. These articles do not
add to or modify the Plan in respect of any other category of Optionees, and
except as hereby amended, the Plan remains in full force and effect. The
Committee has adopted these additional articles pursuant to Article 9.3.

ARTICLE XIV
DEFINITIONS

       The following capitalized terms used in the Plan shall have the
respective meanings set forth in this Article:

14.0   Act: The United Kingdom Income and Corporation Taxes Act of 1988.

14.1   Approved Options: Options granted under the Plan to a U.K. Optionee while
       the Plan is approved by the U.K. Inland Revenue under the Act.

14.2   Limit: The limit as set out in paragraph 28(2) of Schedule 9 to the Act.

14.3   U.K. Optionee: An employee who is resident in the U.K. for U.K. income
       tax purposes and is required to work for the Company or an Affiliate for
       at least 25 hours a week (excluding meal breaks) and is not ineligible to
       participate in the Plan by virtue of paragraph 8 of Schedule 9 to the
       Act.

14.4   Shares: Common Shares which satisfy the requirements of paragraphs 10 to
       14 of Schedule 9 to the Act.

ARTICLE XV
FURTHER TERMS OF APPROVED OPTIONS

15.1   No Approved Options shall be granted to U.K. Optionees in excess of the
       Limit.

15.2   The provisions of Article 6.5(b) and (d) of the Plan shall not be
       applicable to Approved Options.

15.3   The provisions of Article 6.7 of the Plan shall not be applicable to
       Approved Options.

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15.4   The provisions of Article 6.9(c) of the Plan shall be modified so that
       upon the death of a U.K. Optionee, Approved Options will be exercisable
       until the earlier of 12 months after such death or the Termination Date
       as set forth in the Approved Option grant.

15.5   The terms of Approved Options shall not be amended without the prior
       approval of the U.K. Inland Revenue.

ARTICLE XVI

16.0   Subject to the provisions of Article IX of the Plan, the Board and the
       Committee may amend the Plan but no such amendments shall be effective
       with respect to Articles XIII through XVI unless approved by the U.K.
       Inland Revenue.

March, 1992

                                       2<PAGE>   1

                                                                 EXHIBIT 10(y)

                             THE SEAGRAM COMPANY LTD.
                            1992 STOCK INCENTIVE PLAN

ARTICLE I

PURPOSE

      The purpose of The Seagram Company Ltd. 1992 Stock Incentive Plan is to
provide selected employees of The Seagram Company Ltd. and its subsidiaries an
opportunity to benefit from the appreciation in the value of the common shares
of The Seagram Company Ltd., thus providing an increased incentive for such
employees to contribute to the future success and prosperity of The Seagram
Company Ltd., enhancing the value of the common shares for the benefit of the
shareholders and increasing the ability of The Seagram Company Ltd. and its
subsidiaries to attract and retain individuals of exceptional skill.

ARTICLE II

DEFINITIONS

      The following capitalized terms used in the Plan have the respective
meanings set forth in this Article:

<TABLE>
<CAPTION>

      <S>   <C>
      2.0   Act: The United States Securities Exchange Act of 1934, as amended.

      2.1   Affiliate: A person or entity controlling, controlled by, or under
            common control with, The Seagram Company Ltd.

      2.2   Approval Date: The later of the date of approval of the Plan by the
            shareholders of The Seagram Company Ltd. and by the applicable
            regulatory authorities and stock exchanges, each as contemplated by
            Article XVIII of the Plan.

      2.3   Award: An Option, Stock Appreciation Right or other award granted
            under the Plan.

      2.4   Board: The Board of Directors of The Seagram Company Ltd.

      2.5   Code: The United States Internal Revenue Code of 1986, as amended.

      2.6   Committee: The Seagram Company Ltd. Human Resources Committee or
            such other persons designated by the Board.

      2.7   Common Shares: The common shares without nominal or par value of The
            Seagram Company Ltd.

      2.8   Company: The Seagram Company Ltd., any of its Subsidiaries or any
            other Affiliate designated by the Board.

      2.9   Disability: Inability to engage in any substantial gainful activity
            by reason of a medically determinable physical or mental impairment
            which constitutes a permanent and total disability, as defined in
            section 22 (e) (3) of the Code. The determination whether a
            Participant has suffered a Disability shall be made by the Committee
            based upon such evidence as it deems necessary and appropriate.

      2.10  Disinterested Persons: Disinterested persons within the meaning of
            Rule 16b-3 promulgated under the Act.

      2.11  Employer: The Company that employs the employee or Participant.

      2.12  Fair Market Value: The mean between high and low prices of the
            Common Shares as reported on the composite tape for securities
            traded on the New York Stock Exchange on a given day, or, if there
            were no sales on such day, on the closest preceding day on which
            there were sales.

      2.13  ISO: An incentive stock option within the meaning of section 422 of
            the Code.

      2.14  Non-ISO: A stock option that is not an ISO.

      2.15  Option: A stock option (whether ISO or Non-ISO) granted under the
            Plan.

      2.16  Option Price: The purchase price of one Common Share under an Option.

      2.17  Participant: An employee of the Company who has been selected by the
            Committee to receive an Award under the Plan.

      2.18  Parent Corporation: A parent corporation, as defined in section 424
            (e) of the Code.

      2.19  Plan: The Seagram Company Ltd. 1992 Stock Incentive Plan, as from
            time to time amended.
</TABLE>

                                       B-1
<PAGE>   2

<TABLE>
<CAPTION>

      <S>   <C>
      2.20  Retirement: Separation from service with the Company on or after
            attainment of age 65 or, with the prior written consent of the
            Company, retirement at an earlier age.

      2.21  Stock Appreciation Right: A stock appreciation right granted under
            the Plan.

      2.22  Subsidiary: A subsidiary corporation, as defined in section 424 (f)
            of the Code.20

      2.23  Termination Date: With respect to each Award, a date fixed by the
            Committee; provided that with respect to an Option, such date shall
            not be later than the day preceding the tenth anniversary of its
            date of grant.

      2.24  Termination For Cause: A Participant's termination of employment
            with the Company due to insubordination, willful misconduct, willful
            failure to implement corrective actions, misappropriation of any
            funds or property of the Company, unreasonable neglect or refusal to
            perform duties assigned during employment or the conviction of a
            felony.
</TABLE>

ARTICLE III

ADMINISTRATION

      3.1  Except as otherwise provided in the Plan, the Committee shall
administer the Plan and shall have full power to grant Awards, construe and
interpret the Plan, establish and amend rules and regulations for its
administration, and perform all other acts relating to the Plan, including the
delegation of administrative responsibilities, that it believes reasonable and
proper.

      3.2  The Committee shall consist of not less than three persons, all of
whom shall be Disinterested Persons.

      3.3  Subject to the provisions of the Plan, the Committee shall, in its
discretion, determine which employees shall be granted Awards and the terms and
conditions of Awards.

      3.4  Any decision made, or action taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration of
the Plan shall be final and conclusive.

ARTICLE IV

LIMITATIONS ON THE AMOUNT OF AWARD GRANTS

      4.1  Common Shares Subject to the Plan: The total number of Common Shares
available for grants of Awards payable in Common Shares shall be 5,000,000;
subject to adjustment in accordance with Article XIV of the Plan. These Common
Shares shall be authorized but unissued Common Shares. For purposes of this
Section, a Stock Appreciation Right granted pursuant to clause (b) of Section
7.1 shall not be deemed to be an Award separate from the Option, or portion
thereof, to which it relates. For purposes of this Section, an Option, or
portion thereof, exercised through the exercise of such a Stock Appreciation
Right shall be treated, to the extent settled in Common Shares, as though the
Option, or portion thereof, had been exercised through the purchase of Common
Shares, with the result that the Common Shares subject to the Option, or portion
thereof, that was so exercised shall not be available for future grants of
Awards. The Common Shares underlying or related to an Award shall be available
for future grants of Awards to the extent (a) the Award is settled in cash upon
its exercise or maturity or (b) the Award, or portion thereof, shall expire,
terminate or be cancelled for any reason (including, without limitation, the
cancellation of an Option pursuant to Section 6.1 of the Plan) without having
been exercised in full.

      4.2  Common Shares to be Granted to a Participant: The total number of
Common Shares available for grants to any one Participant of (a) Awards under
the Plan and (b) awards under any other plan of the Company which provides for
the grant of Common Shares shall not exceed 5% of the then outstanding Common
Shares.

      4.3  Cash-Only Awards: With respect to any fiscal year of the Company, the
aggregate value (as determined by the Committee) of Awards granted which are
exercisable solely for cash, or which upon maturity are payable solely in cash,
shall not exceed the aggregate salaries paid or accrued with respect to such
fiscal year to all Participants who receive grants of any Awards with respect to
such fiscal year; provided, however, that any such Award which may be redeemed
or exercised only upon a fixed date or dates at least six months after grant, or
incident to death, Retirement, Disability or cessation of employment shall not
be included in the foregoing calculation of the aggregate value of Awards
granted with respect to any fiscal year.

--------------
* If the shareholders of The Seagram Company Ltd. approve the special
resolution in the form set forth in Schedule A to this Proxy Circular amending
the Articles of The Seagram Comapny Ltd. by dividing the issued Common Shares
on a four-for-one basis.  "5,000,000" shall be deemed to be "20,000,000".

                                       B-2
<PAGE>   3

ARTICLE V

ELIGIBILITY

      5.1  Awards may be granted to selected employees of the Company.

ARTICLE VI

TERMS OF OPTIONS

      6.1  Option Price: Except as provided in Section 6.3 of the Plan, the
Option Price shall be the Fair Market Value of a Common Share on the date the
Option is granted, but in no event shall the Option Price be less than that
permitted by applicable laws, rules, by-laws or policies of regulatory
authorities or stock exchanges. On any date when an Option, or portion thereof,
is outstanding, the Committee may, in its discretion, cancel such Option, or
portion thereof, and replace it with an Option, or portion thereof, if the
Option Price of the replacement Option, or portion thereof, is no less than the
Fair Market Value of a Common Share on such date.

      6.2  Period of Exercise: The Committee shall determine the dates after
which Options may be exercised in whole or in part; provided, however, that an
Option shall not be exercised prior to the Approval Date nor later than its
Termination Date. The Committee may amend an Option to accelerate the date after
which such Option may be exercised in whole or in part, provided that the
Company has obtained all applicable approvals, if any, of regulatory authorities
and stock exchanges. An Option which has not been exercised on or prior to its
Termination Date shall be cancelled.

      6.3  Special Rules Regarding ISOs Granted to Certain Employees:
Notwithstanding any contrary provisions of Sections 6.1 and 6.2 of the Plan, no
ISO shall be granted to any employee who, at the time the Option is granted,
owns (directly or within the meaning of section 424 (d) of the Code) more than
ten percent of the total combined voting power of all classes of stock of the
Employer or of any Subsidiary or Parent Corporation thereof, unless (a) the
Option Price under such Option is at least 110% of the Fair Market Value of a
Common Share on the date the Option is granted and (b) the Termination Date of
such Option is a date not later than the day preceding the fifth anniversary of
the date on which the Option is granted.

      6.4  Manner of Exercise and Payment: Subject to Section 6.2 of the Plan,
an Option, or portion thereof, shall be exercised by delivery of a written
notice of exercise to the Company and payment of the full price of the Common
Shares being purchased pursuant to the Option. A Participant or his or her legal
representative may exercise an Option with respect to less than the full number
of Common Shares for which the Option may then be exercised, but a Participant
must exercise the Option in full Common Shares. The price of Common Shares
purchased pursuant to an Option, or portion thereof, may be paid:

      a)    in United States dollars in cash or by check, bank draft or money
            order payable to the order of the Company;

      b)    through the delivery of Common Shares with an aggregate Fair Market
            Value on the date of exercise equal to the Option Price;

      c)    through the delivery of irrevocable instructions to a broker to
            deliver promptly to the Company an amount equal to the Option Price;
            or

      d)    by any combination of the above methods of payment;

provided, however, that the Company shall not be obligated to purchase or accept
the surrender in payment of any such Common Shares if any such action would be
prohibited by the applicable laws governing the Company or the Committee shall
determine that such action is not in the best interests of the Company. The
Committee shall determine acceptable methods for providing notice of exercise,
for tendering Common Shares or for delivering irrevocable instructions to a
broker and may impose such limitations and prohibitions on the use of Common
Shares or irrevocable instructions to a broker to exercise an Option as it deems
appropriate.

      6.5  Notification of Sales of Common Shares: Any Participant who disposes
of Common Shares acquired upon the exercise of an ISO either (a) within two
years after the date of the grant of the ISO under which the Common Shares were
acquired or (b) within one year after the transfer of such Common Shares to the
Participant, shall notify the Company of such disposition and of the amount
realized upon such disposition.

ARTICLE VII

TERMS OF STOCK APPRECIATION RIGHTS

      7.1  Grants of Stock Appreciation Rights: A Stock Appreciation Right may
be granted (a) independent of an Option or (b) in conjunction with an Option, or
portion thereof. A Stock Appreciation Right granted pursuant to

                                       B-3
<PAGE>   4

clause (b) of the preceding sentence may be granted at the time the related
Option is granted or at any time prior to the exercise or cancellation of the
related Option.

      7.2  Exercise Price: The exercise price per Common Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the greater of (a) the Fair Market Value of
a Common Share on the date the Stock Appreciation Right is granted or, in the
case of a Stock Appreciation Right granted in conjunction with an Option, or
portion thereof, the Option Price of the related Option and (b) an amount
permitted by applicable laws, rules, by-laws or policies of regulatory
authorities or stock exchanges.

      7.3  Period of Exercise: The Committee shall determine the dates after
which Stock Appreciation Rights may be exercised in whole or in part; provided,
however, that a Stock Appreciation Right shall not be exercised prior to the
Approval Date nor later than its Termination Date. The Committee may amend a
Stock Appreciation Right to accelerate the date after which it may be exercised
in whole or in part, provided that the Company has obtained all applicable
approvals, if any, of regulatory authorities and stock exchanges. A Stock
Appreciation Right which has not been exercised on or prior to its Termination
Date shall be cancelled. A Stock Appreciation Right granted in conjunction with
an Option, or portion thereof, shall not be exercised unless such Option, or
portion thereof, is otherwise exercisable, and such a Stock Appreciation Right
shall be cancelled to the extent the Option to which it relates has been
exercised, or has expired, been terminated or been cancelled for any reason.

      7.4  Exercise of Stock Appreciation Rights: A Stock Appreciation Right, or
portion thereof, shall be exercised in accordance with such procedures as may be
established by the Committee. Upon the exercise of a Stock Appreciation Right,
the Participant or his or her legal representative shall be entitled to receive
from the Company with respect to each Common Share to which such Stock
Appreciation Right relates an amount equal to the excess of (a) the Fair Market
Value of a Common Share on the date of exercise over (b) the exercise price of
the Stock Appreciation Right. Such amount shall be paid in cash and/or Common
Shares at the discretion of the Committee. The number of Common Shares, if any,
issued as a result of the exercise of a Stock Appreciation Right shall be based
on the Fair Market Value of such Common Shares on the date of exercise. Upon the
exercise of a Stock Appreciation Right, or portion thereof, granted in
conjunction with an Option, or portion thereof, the Option, or portion thereof,
to which such Stock Appreciation Right relates shall be deemed in the case of a
cash payment to have been cancelled and in the case of a payment in Common
Shares to have been exercised.

ARTICLE VIII

OTHER SHARE-BASED AWARDS

      8.1  Other Awards of Common Shares and Awards that are valued in whole or
in part by reference to, or are otherwise based on the Fair Market Value of,
Common Shares may be granted under the Plan in the discretion of the Committee.
Such Awards shall be in such form as the Committee shall determine, including,
without limitation, the right to receive one or more Common Shares, or the
equivalent cash value of such Common Shares, upon the completion of a specified
period of service, the occurrence of an event and/or the attainment of
performance objectives. Such Awards may be granted alone or in addition to any
other Awards granted under the Plan. Subject to the provisions of the Plan, the
Committee shall determine to whom and when such Awards will be made, the number
of Common Shares to be awarded under (or otherwise related to) such Awards,
whether such Awards shall be settled in cash, Common Shares or a combination of
cash and Common Shares, and all other terms and conditions of such Awards.

ARTICLE IX

DIVIDEND EQUIVALENTS

      9.1  At or after the grant of an Award, the Committee, in its discretion,
may provide the Participant with dividend equivalents with respect to such
Award.

ARTICLE X

AWARD AGREEMENTS

     10.1  All Awards shall be evidenced by written agreements executed by the
Company and the Participant. Such agreements shall be subject to the applicable
provisions of the Plan, and shall contain such provisions as are required by the
Plan and any other provisions the Committee may prescribe; provided that with
respect to Options, those Options that are intended to be ISOs shall be so
designated and all other Options shall be designated Non-ISOs. Notwithstanding
Section 2.12, an Award agreement may provide that Fair Market Value shall be
determined based on the monetary currency of a Participant's country of
residence. Notwithstanding Section 6.4, an

                                       B-4
<PAGE>   5

Award agreement may require that payment of the Option Price shall be made in
such currency and may otherwise restrict the manner of exercise and payment of
an Option.

ARTICLE XI

NONTRANSFERABILITY OF AWARDS

      11.1 Each Award shall, during the Participant's lifetime, be exercisable
only by the Participant, and neither it nor any right hereunder shall be
transferable otherwise than by will, the laws of descent and distribution or be
subject to attachment, execution or other similar process; provided, however,
that to the extent permitted by applicable law, with respect to any Award, a
Participant may designate a beneficiary pursuant to procedures which may be
established by the Committee. In the event of any attempt by the Participant to
alienate, assign, pledge, hypothecate or otherwise dispose of an Award or of any
right hereunder, except as provided for herein, or in the event of any levy or
any attachment, execution or similar process upon the rights or interest hereby
conferred, the Company may terminate the Award by notice to the Participant and
the Award shall thereupon be cancelled.

ARTICLE XII

CESSATION OF EMPLOYMENT OF PARTICIPANT

      12.1 Cessation of Employment other than by Reason of Retirement,
Disability, Death or Termination For Cause: If a Participant shall cease to be
employed by the Company other than by reason of Retirement, Disability, death or
Termination For Cause, each Award held by the Participant shall be cancelled to
the extent not previously exercised and all rights hereunder shall terminate at
the end of the three-month period commencing on the last day of the month in
which the cessation of employment occurred.

      12.2 Cessation of Employment by Reason of Termination For Cause: If a
Participant shall cease to be employed by the Company by reason of Termination
For Cause, each Award held by the Participant shall be cancelled to the extent
not previously exercised and all rights hereunder shall terminate on the date of
cessation of employment.

      12.3 Cessation of Employment by Reason of Retirement or Disability: If a
Participant shall cease to be employed by the Company by reason of Retirement or
Disability, each Award held by the Participant shall be exercisable until the
Termination Date set forth in the Award.

      12.4 Cessation of Employment by Reason of Death: If a Participant shall
die while employed by the Company, or at any time after cessation of employment
by reason of Retirement or Disability, an Award may be exercised at any time or
from time to time prior to the Termination Date set forth in the Award, by the
person or persons to whom the Participant's rights under each Award shall pass
by will or by the applicable laws of descent and distribution. Any person or
persons to whom a Participant's rights under an Award have passed by will or by
the applicable laws of descent and distribution shall be subject to all terms
and conditions of the Plan and the Award applicable to the Participant.

ARTICLE XIII

WITHOLDING TAXES

      13.1 The Company may, in its discretion, require a Participant to pay to
the Company the amount, or make other arrangements (including, without
limitation, the withholding of Common Shares which would otherwise be delivered
upon exercise of an Award), at the time of exercise or thereafter, that the
Company deems necessary to satisfy its obligation to withhold federal,
provincial, state or local income or other taxes.

ARTICLE XIV

ADJUSTMENTS

      14.1 If (a) the Company shall at any time be involved in a transaction to
which section 424(a) of the Code is applicable, (b) the Company shall declare a
dividend payable in, or shall subdivide or combine, its Common Shares or (c) any
other event shall occur which in the judgment of the Committee necessitates
action by way of adjusting the terms of the outstanding Awards, the Committee
may take any such action as in its judgment shall be necessary to preserve the
Participant's rights substantially proportionate to the rights existing prior to
such event and, to the extent that such action shall include an increase or
decrease in the number of Awards and/or Common Shares subject to outstanding
Awards, the number of Awards and/or Common Shares available under Article IV
above may be increased or decreased, as the case may be, proportionately. The
judgment of the Committee with respect to any matters referred to in this
Article shall be conclusive and binding upon each Participant. The exercise

                                       B-6
<PAGE>   6

by the Committee of its authority under this Article is subject to the approval
of the Board as and when required by applicable laws, rules, by-laws or policies
of regulatory authorities or stock exchanges.

ARTICLE XV

AMENDMENT AND TERMINATION OF THE PLAN

      15.1 The Board may at any time, or from time to time, suspend or terminate
the Plan in whole or in part or amend it in such respects as the Board may deem
appropriate; provided, however, that no such amendment shall be made without
approval of the shareholders if such approval is required by Rule 16b-3 under
the Act or by any regulatory authorities or stock exchanges.

      15.2 No amendment, suspension or termination of the Plan shall, without
the Participant's consent, impair any of the rights or obligations under any
Award theretofore granted to a Participant under the Plan.

      15.3 The Committee may amend the Plan, subject to the limitations cited
above, in such manner as it deems necessary to permit the granting of Awards
meeting the requirements of future amendments or issued regulations, if any, to
the Code, the Act or other applicable laws, rules, by-laws or policies of
regulatory authorities or stock exchanges.

      15.4 No amendment shall be effective until all applicable approvals, if
any, of regulatory authorities and stock exchanges have been obtained.

ARTICLE XVI

GOVERNMENT AND OTHER REGULATIONS

      16.1 The obligation of the Company to issue, or transfer and deliver,
Common Shares for Awards exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approvals which shall then be in
effect and required by regulatory authorities and any stock exchanges on which
Common Shares are traded.

      16.2 Notwithstanding any other provision of the Plan, during any period in
which a Participant is subject to section 16 of the Act, if the Participant
shall exercise any Award or engage in any other transaction involving an Award
or Common Shares received upon the exercise of an Award, the Participant shall
comply with the rules promulgated under section 16 of the Act (and any
comparable rules of any other U.S. and non-U.S. regulatory authority),
including, without limitation, rules which restrict the exercise of Awards,
which limit the resale of Common Shares obtained upon exercise of Awards and
which require the reporting of transactions.

ARTICLE XVII

MISCELLANEOUS PROVISIONS

      17.1 The Plan Does Not Confer Employment or Shareholder Rights: The right
of the Company to terminate at will (whether by dismissal, discharge or
otherwise) the Participant's employment with it at any time is specifically
reserved. Neither the Participant nor any person entitled to exercise the
Participant's rights in the event of the Participant's death shall have any
rights of a shareholder with respect to the Common Shares subject to each Award,
except to the extent that, and until, such Common Shares shall have been issued
upon the exercise or maturity of each Award.

      17.2 The Plan Does Not Confer Rights to Assets: Neither the Participant
nor any person entitled to exercise the Participant's rights in the event of the
Participant's death shall have any rights to or interest in any specific asset
of the Company.

      17.3  Plan Expenses: Any expenses of administering the Plan shall be borne
by the Company.

      17.4  Use of Exercise Proceeds: Cash payments received from Participants
upon the exercise of Options shall be used for the general corporate purposes of
the Company.

      17.5 Indemnification: In addition to such other rights of indemnification
as they may have as members of the Board, or the Committee, the members of the
Board and the Committee shall be indemnified by the Company against all costs
and expenses reasonably incurred by them in connection with any action, suit or
proceeding to which they or any of them may be party by reason of any action
taken or failure to act under or in connection with the Plan or any Award
granted thereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except a judgment based upon a finding of bad faith;
provided that upon the institution of any such action, suit or proceeding, a
Committee or Board member shall, in writing, give the Company notice thereof and
an opportunity, at its own expense, to handle and defend the same before such
Committee or Board member undertakes to handle and defend it on such member's
own behalf.

                                       B-6
<PAGE>   7

ARTICLE XVIII

SHAREHOLDER APPROVAL AND EFFECTIVE DATES

      18.1 The Plan shall become effective when it is adopted by the Board.
However, if (a) the Plan is not approved by the affirmative vote of the holders
of a majority of the Common Shares present, or represented by proxy, and
entitled to vote at the Annual Meeting of Shareholders of The Seagram Company
Ltd. to be held on May 20, 1992 or at any adjournment thereof or (b) the
necessary regulatory and stock exchange approvals are not obtained within one
year after the date the Plan is adopted by the Board, the Plan and all Awards
shall terminate. Awards may not be granted under the Plan after the sixth
anniversary of the Approval Date.

                                      B-7
<PAGE>   8

                                   APPENDIX A
                                       TO
                             THE SEAGRAM COMPANY LTD.
                             1992 STOCK INCENTIVE PLAN
             ADDITIONAL ARTICLES FOR UNITED KINGDOM PARTICIPANTS ONLY

ARTICLE XIX

PURPOSE

       19.1 The purpose of these additional articles is to obtain Approved
Option status under the laws of the United Kingdom ("U.K.") for Participants in
the Plan. These articles are to be read as a continuation of the Plan and only
modify the Approved Options granted under the Plan to U.K. Participants. These
articles do not add to or modify the Plan in respect of any other category of
Participant, and except as hereby amended, the Plan remains in full force and
effect.

       19.2 The Committee has adopted these additional articles in accordance
with Section 15.3 of the Plan.

ARTICLE XX

DEFINITIONS

       20.1 The definition of "Award" contained in Section 2.3 of the Plan is
hereby modified by adding the following proviso at the end thereof: "provided,
that with respect to U.K. Participants, Awards shall be limited to Options
only". The definition of "Award", as so modified, shall be so construed
throughout the Plan in relation to U.K. Participants.

       20.2 The following additional capitalized terms used in the Plan shall
have the respective meanings set forth in this Section:

       a)     Approved Option: An option granted under the Plan to a U.K.
              Participant while the Plan is approved by the U.K. Inland Revenue
              under the U.K. Act.

       b)     Limit: The limit set out in paragraph 28(2) of Schedule 9 to the
              U.K. Act and for the purposes of that paragraph "relevant
              emoluments" shall be construed in accordance with paragraph 28(4)
              of Schedule 9 aforesaid.

       c)     U.K. Act: The United Kingdom Income and Corporation Taxes Act of
              1988.

<PAGE>   9

       d)     U.K. Participant: An employee of the Company who has been selected
              by the Company to receive an Award under the Plan and who is
              resident in the U.K. for U.K. income tax purposes and is required
              to work for the Company or an Affiliate for at least 25 hours per
              week (excluding meal breaks) and is not ineligible to participate
              in the Plan by virtue of paragraph 8 of Schedule 9 to the U.K.
              Act.

       e)     Shares: Common Shares which satisfy the provisions of paragraphs
              10 to 14 I nclusive of Schedule 9 to the U.K. Act.

       f)     Year of Assessment: A year beginning on any April 6th and ending
              on the following April 5th.

ARTICLE XXI

FURTHER LIMITATIONS ON THE AMOUNT OF AWARD GRANTS

       21.1 No Approved Options shall be granted to U.K. Participants in excess
of the Limit.

ARTICLE XXII

FURTHER TERMS OF OPTIONS

       22.1 Section 6.1 of the Plan shall apply to U.K. Participants as if:

       a)     the words "with the Agreement of the relevant Participant" had
              been inserted therein immediately after the words "cancel such
              Option, or portion thereof" in line 5; and

       b)     the words "and replace it with . . . on such date" inclusive had
              been deleted therefrom.

       22.2 The provisions of Sections 6.4(b) and (d) of the Plan shall not be
applicable to Approved Options.

       22.3 The terms of an Approved Option shall not be amended without the
prior approval of the U.K. Inland Revenue.

       22.4 The appropriate number of Common Shares shall be allotted or
transferred (as the case may be) within 30 days following the exercise of an
Option.

<PAGE>   10

ARTICLE XXIII

TERMS OF STOCK APPRECIATION RIGHTS

       23.1 The provisions of Article VII of the Plan shall not apply to
Approved Options.

ARTICLE XXIV

OTHER SHARE-BASED AWARDS

       24.1 The provisions of Article VIII of the Plan shall not apply to
Approved Options.

ARTICLE XXV

DIVIDEND EQUIVALENTS

       25.1 The provisions of Article IX of the Plan shall not apply to Approved
Options.

ARTICLE XXVI

CESSATION OF EMPLOYMENT OF PARTICIPANT

       26.1 The provisions of Section 12.4 of the Plan shall be modified so that
upon the death of a U.K. Participant, Approved Options will be exercisable until
the earlier of 12 months after such death or the Termination Date.

ARTICLE XXVII

AWARD AGREEMENTS

       27.1 The provisions of Section 10.1 of the Plan shall be modified in
relation to U.K. Participants so that the last sentence thereof commencing with
the words: "Notwithstanding Section 6.4" shall be omitted therefrom.

ARTICLE XXVIII

AMENDMENT AND TERMINATION OF THE PLAN

       28.1 Subject to the provisions of Article XV of the Plan, the Board and
the Committee may amend the Plan but no such amendments shall become effective
with respect to Articles XIX through XXVIII unless approved by the U.K. Inland
Revenue.

March, 1993

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